BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2739
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          ASSEMBLY THIRD READING
          AB 2739 (Blakeslee)
          As Amended  May 28, 2010
          Majority vote 

           NATURAL RESOURCES   9-0         APPROPRIATIONS      16-1        
           
           ------------------------------------------------------------------- 
          |Ayes:|Chesbro, Gilmore,         |Ayes:|Fuentes, Conway, Ammiano,   |
          |     |Brownley,                 |     |Bradford, Charles Calderon, |
          |     |De Leon, Hill, Huffman,   |     |Coto, Davis, Harkey,        |
          |     |Knight, Logue, Skinner    |     |Miller, Monning, Nielsen,   |
          |     |                          |     |Norby, Ruskin, Solorio,     |
          |     |                          |     |Torlakson, Torrico          |
          |     |                          |     |                            |
          |-----+--------------------------+-----+----------------------------|
          |     |                          |Nays:|Skinner                     |
          |     |                          |     |                            |
           ------------------------------------------------------------------- 
           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.  Specifically,  this  
          bill  :  
           
          1)In consultation with the appropriate federal agencies, 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 threat.   








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             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.

           


          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 SPR 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. 

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, this bill has one-time costs in fiscal year 2011-12 to  
          the Department of Fish and Game (DFG), in the range of $100,000 to  
          $250,000, to develop a plan for imminent threat assessment and  
          strategic response.  (Oil Spill Prevention and Administration  
          Fund.)   This bill will also result in cost pressure of an unknown  
          amount to conduct imminent threat assessments based on information  
          contained in the plan developed pursuant to this bill.  DFG  
          reports that an actual imminent threat assessment could cost as  
          much as $1 million.

          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  







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          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 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.

           Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916)  
          319-2092 
                                                                  FN: 0004724