BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2739
                                                                  Page  1

          Date of Hearing:  April 19, 2010

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                   AB 2739 (Blakeslee) - As Amended:  April 8, 2010
           
          SUBJECT  :  Oil spill prevention and response. 

           SUMMARY  :  Requires the Administrator of the Office of Oil Spill  
          Prevention and Response (OSPR) to prepare a sunken vessel  
          imminent threat assessment and strategic response plan.  

           EXISTING LAW  :  

          1)Enacts the Lempert-Keene-Seastrand Oil Spill Prevention and  
            Response Act (Act) to ensure rapid and appropriate clean-up  
            response to any oil spill along the California coast.  The  
            Administrator of the Office of Spill Prevention and Response  
            within the Department of Fish and Game administers the Act.

          2)Establishes the Oil Spill Response Trust Fund to be used to  
            clean up an oil spill if the responsible party is unknown or  
            not financially capable. 

           THIS BILL  : 

          1)Requires the Administrator to develop a sunken vessel imminent  
            threat assessment and strategic response plan that: 

             a)   Identifies any sunken vessel off the California coast  
               that: 

               i)     Is within eight miles of the California coast; 

               ii)    Is within 20 miles of a national marine sanctuary; 

               iii)   There is no responsible party; 

               iv)    Contained more than one million gallons of oil when  
                 it sank; 

               v)     Is likely to pose a threat to California waters and  
                 shorelines, archaeological sites, and wildlife; and,

               vi)    Has not been classified as posing an imminent  








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                 threat.  

             b)   Outlines a strategic plan to: 

               i)     Identify studies needed to determine whether an  
                 imminent threat exists; and, 

               ii)    Identify the recommended course of action for  
                 monitoring the vessel if a threat exists, but is not  
                 imminent.  

          2)By June 1, 2011, requires the Administrator to report the  
            findings to the Legislature.  

          3)Sunsets the bill's requirements on June 1, 2015.

           FISCAL EFFECT  :  Unknown costs to OSPR for performing the threat  
          assessment.  

           COMMENTS  :  On July 14, 1953, a 468-foot freighter, the S.S.  
          Jacob Luckenbach, left San Francisco bound for Korea when it ran  
          into another ship and sank in 180 feet of water near the  
          Farallon Islands.  The wreck came to rest 17 miles  
          west-southwest of San Francisco and contained 457,000 gallons of  
          bunker fuel.  The sunken ship leaked oil sporadically for many  
          years, but was not directly linked to a major wildlife disaster  
          until 2002 when researchers investigating the Point Reyes  
          Tarball Incident of 1997-98 and the San Mateo Mystery Spill of  
          2001-02 determined that the chemical signature of oiled feathers  
          matched the oil in the Luckenbach.  During the 1997-98 event,  
          almost three thousand birds were found washed up on beaches from  
          Sonoma to Monterey.  Exhaustive models created by researchers at  
          Humboldt State University predicted that six times as many birds  
          actually died during the four month leak from the Luckenbach. 

          Both the Point Reyes Tarball Incident of 1997-98 and the San  
          Mateo Mystery Spill of 2001-02 occurred over a winter with many  
          strong storms. This evidence suggests that the Luckenbach leaked  
          substantially more oil when it was rocked on the seafloor by  
          major swells. After the significant loss of wildlife that  
          occurred during these events, several federal and state agencies  
          organized to conduct a natural resource damage assessment and to  
          determine how to alleviate this apparently chronic spill.   
          Divers from a marine consulting company have since removed  
          approximately 100,000 gallons of bunker oil from various pockets  








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          and compartments where it is trapped in the wreck. The remaining  
          oil cannot be safely removed and has been sealed inside.  As  
          there is no remaining responsible party for the Luckenbach, the  
          approximately $20 million cost was paid from the federal Oil  
          Spill Liability Trust Fund

          Another ship, the S.S. Montebello, was sunk off the coast of  
          California on Dec. 23, 1941 during World War II. The vessel now  
          rests in federal waters, approximately six miles off the coast  
          of Moonstone Beach in Cambria.  Prior to its sinking, the  
          Montebello loaded 73,571 barrels (3,089,982 gallons) of crude  
          oil and 2,477 barrels (104,034 gallons) of bunker fuel at Port  
          San Luis, California.  The author notes that the Luckenbach case  
          involved Bunker C oil, and the Montebello was carrying heavy  
          crude oil.  While the process of recovery would be similar, the  
          Montebello sits at a much greater depth and in much colder water  
          than the Luckenbach, which would make the task more difficult if  
          there is oil that must be extracted.

          This bill would direct the Administrator to assess the risk  
          associated with the Montebello and other sunken vessels and  
          report to the Legislature on appropriate action for vessels that  
          do not pose an immediate threat.  This bill does not specify the  
          actions required if the assessment identifies vessels that do  
          pose an imminent threat.  The committee may wish to amend the  
          bill to include the following: 

            In the event that it is determined that an imminent threat  
            exists, notify the Office of Emergency Services in accordance  
            with section 8670.25.5 if the vessel is in state waters or  
            notify the appropriate federal agencies if located in federal  
            waters.  





















                                                                  AB 2739
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           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          None on file

           Opposition 
           
          None on file
           

          Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092