BILL ANALYSIS �
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THIRD READING
Bill No: SB 1192
Author: Evans (D)
Amended: 5/29/12
Vote: 21
SENATE NATURAL RESOURCES AND WATER COMM : 6-2, 4/24/12
AYES: Pavley, Cannella, Evans, Kehoe, Padilla, Wolk
NOES: La Malfa, Fuller
NO VOTE RECORDED: Simitian
SENATE APPROPRIATIONS COMMITTEE : 5-2, 5/24/12
AYES: Kehoe, Alquist, Lieu, Price, Steinberg
NOES: Walters, Dutton
SUBJECT : Oil spill prevention and administrative fee
SOURCE : Author
DIGEST : This bill removes the restrictions on the types
of activities by the Oiled Wildlife Care Network that can
be paid for by the Oil Spill Prevention and Administrative
Fund.
ANALYSIS : Existing law imposes an oil spill prevention
and administration fee in an amount determined by the
administrator to implement oil spill prevention activities,
but not to exceed, until January 1, 2015, $0.065 per barrel
of crude oil or petroleum products, on persons owning crude
oil or petroleum products at a marine terminal. The fee is
deposited into the Oil Spill Prevention and Administration
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Fund in the State Treasury. Upon appropriation by the
Legislature, moneys in the fund are available for specified
purposes, including to cover the costs incurred by the
Oiled Wildlife Care Network for training and field
collection, and search and rescue activities.
This bill removes the restrictions on the types of
activities by the Oiled Wildlife Care Network that can be
paid for by the Oil Spill Prevention and Administrative
Fund.
Background
Under existing law, the Office of Oil Spill Prevention and
Response (OSPR) is responsible for regulating the
prevention, response, removal, and cleanup of oil spills in
state waters. Under this authority, OSPR requires vessel
operators to take certain precautions and to undertake
specific containment and cleanup actions in response to an
oil spill. Current law requires OSPR to establish an Oiled
Wildlife Care Network (OWCN), to be available to respond to
wildlife that have been impacted by oil spills. OWCN
facilities are maintained in a constant state of readiness
and are stocked with emergency medical equipment and
supplies and staffed by local volunteers specifically
trained in the care of oiled birds and marine mammals. The
OWCN also funds scientific research through a competitive
grants program to increase knowledge and understanding of
the consequences of oil exposure and to improve the quality
of response technology for oil spills.
Existing law authorizes OSPR to impose a fee on imported
oil up to $0.065 per barrel until 2015 and $0.05 per barrel
after 2015, to pay for OSPR's costs to prevent and respond
to oil spills in state waters. Fee revenues are deposited
in the Oil Spill Prevention and Administration Fund
(Administration Fund). Those funds support OSPR's oil spill
prevention and response readiness responsibilities,
including for the "training and field collection and such
and rescue activities" of the OWCN at a cost of about
$40,000 per year.
Existing law also authorizes OSPR to impose a $0.25 per
barrel fee, deposited into the Oil Spill Response Trust
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Fund (Trust Fund), until the balance reaches $55 million.
Generally, monies in the Trust Fund are held to pay for the
costs of responding to an oil spill when the responsible
party cannot be identified, in the interim while the
responsible party is identified, or if the responsible
party is unable to pay for the response costs. Up to $2
million in interest accrued on the Trust Fund may be used
to support activities of the OWCN.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Ongoing cost pressures of $2 million to the Oil Spill
Prevention and Administrative Fund (special fund)
beginning in 2013 for the activities of the Oiled
Wildlife Care Network.
Ongoing revenues of $2 million to the Oil Spill
Prevention and Administrative Fund beginning in 2013 from
raising the per-barrel fee and the minimum non-tank
vessel fee.
SUPPORT : (Verified 4/24/12) (per Senate Natural
Resources and Water Committee analysis - unable to reverify
at time of writing)
Save Our Shores
California Coastkeeper Alliance
ARGUMENTS IN SUPPORT : According to the author, "Meeting
OWCN's operational costs is vital to ensuring it is ready
to respond quickly in the event of an oil spill, which
often makes the difference between life and death for oiled
wildlife," the author also states that "?due to the
economic downturn, declining interest rates, and the
borrowing of $40 million from the trust fund to the General
Fund, the total interest earned on the trust fund has
declined significantly, from over $2 million in FY 2007 -
08 to approximately $56,000 in FY 2011 - 12. �?] There is
not enough money available from the trust fund to fully
fund the OWCN this year. �?] This bill would not require
any money from the OSPAF be allocated to OWCN. It simply
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allows the flexibility to utilize the fund to meet the
shortfalls OWCN is facing."
CTW:nl 5/29/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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