BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          SB 1360 (Simitian) - Vessels
          
          Amended: April 18, 2012         Policy Vote: EQ 6-0
          Urgency: No                     Mandate: No
          Hearing Date: April 30, 2012                      Consultant: 
          Marie Liu     
          
          This bill does not meet the criteria for referral to the 
          Suspense File.


          Bill Summary: SB 1360 removes the sunset date on the prohibition 
          for large passenger vessels to release sewage into the marine 
          waters of the state and the requirement for such vessels to 
          notify the California Emergency Management Agency of any sewage 
          release into the marine waters of the state. The bill also makes 
          technical and clarifying amendments.

          Fiscal Impact: Ongoing minor and absorbable costs from the 
          General Fund for the enforcement of sewage and sewage sludge 
          discharge prohibitions.

          Background: The Federal Water Pollution Control Act (Clean Water 
          Act) authorizes the US Environmental Protection Agency (US EPA) 
          to prohibit vessel sewage discharges into waters of any given 
          state if, upon application by the state, US EPA determines that 
          the protection and enhancement of water quality within that 
          state require such a prohibition and there are adequate 
          facilities for removal and treatment of sewage from vessels are 
          reasonably available where the prohibition would apply.

          The California Clean Coast Act (�72400 et seq.) declares the 
          intent of the Legislature to request Congress to amend the Clean 
          Water Act to provide California with authority to regulate the 
          release of sewage from large passenger vessels and oceangoing 
          ships in the marine waters of the state. The act requires State 
          Water Resources Control Board (SWRCB) to determine whether 
          federal authorization is necessary to regulate the discharge of 
          sewage and sewage sludge and, if so, to apply to the federal 
          government for such authorization. The act also requires an 
          owner or operator of a large passenger vessel to notify the 
          California Emergency Management Agency (CEMA) of any sewage 








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          releases into the marine waters of the state. CEMA is required 
          to transmit notification data to the SWRCB and the Department of 
          Fish and Game. These requirements and related intent language 
          are posed to sunset on January 1, 2014.

          The SWRCB submitted an application to the US EPA in September 
          2006. On February 9, 2012, the US EPA approved regulations that 
          ban sewage discharges in California's marine waters and 
          established a no discharge zone along California's coast and 
          surrounding islands.

          Proposed Law: This bill will delete the sunset provisions in the 
          California Clean Coast Act and revises the legislative intent 
          including to reflect recent federal authorization granted by the 
          US EPA.

          Related Legislation: AB 2672 (Simitian) Chapter 764/2004 
          prohibited a large passenger vessel owner or operator from 
          releasing sewage into state marine waters if certain conditions 
          are met with provisions set to sunset on January 1, 2010. SB 614 
          (Simitian) Chapter 194/2009 extended the sunset dates to January 
          1, 2014.

          Staff Comments: In 2004, according to this committee's analysis 
          of AB 2672, the SWRCB estimated it would cost about $100,000 to 
          petition the federal government and review discharge 
          notifications and, should the state be allowed to prohibit 
          sewage discharge into state waters, an additional $50,000 
          annually for enforcement. Despite SWRCB's requests for funding 
          in 2005 in order to prepare the petition to the federal 
          government, the Legislature has not provided funding for this 
          program and the SWRCB has been absorbing the costs of this bill. 


          Now that the federal government has approved the state's 
          prohibition, the SWRCB no longer incurs costs for the submission 
          of the state's petition and will have substantially fewer, if 
          any, discharge notifications to review, but enforcement costs 
          now begin. Removing the sunset date would make these enforcement 
          costs a permanent ongoing cost to the SWRCB. However, most of 
          the enforcement duties will likely fall on the US Coast Guard as 
          discharging sewage is a violation of the federal regulations as 
          well as state law. If there are remaining enforcement costs to 
          the SWRCB, staff believes they are likely minor and absorbable, 








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          especially given that the resources which were previously used 
          to petition the federal government and review discharge 
          notifications can now been shifted to cover enhancement costs.