BILL ANALYSIS �
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| SENATE COMMITTEE ON NATURAL RESOURCES AND WATER |
| Senator Fran Pavley, Chair |
| 2013-2014 Regular Session |
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BILL NO: SB 1319 HEARING DATE: April 8, 2014
AUTHOR: Pavley URGENCY: No
VERSION: April 2, 2014 CONSULTANT: Katharine Moore
DUAL REFERRAL: Environmental QualityFISCAL: Yes
SUBJECT: Oil spills: oil spill prevention and response.
BACKGROUND AND EXISTING LAW
1.In response to concern following significant oil spills, the
Legislature passed the Lempert-Keene-Seastrand Oil Spill
Prevention and Response Act (Act) (SB 2040, c. 1248, Statutes
of 1990) (Government Code (GOV) �8670.1 et seq., and others).
The act created the Office of Spill Prevention and Response
(OSPR) in the Department of Fish and Wildlife. OSPR's mission
is to provide the best achievable protection (GOV �8670.3) of
California's natural resources and the public health and
safety by preventing, preparing for, and responding to spills
of oil and other deleterious materials; and to restore and
enhance affected resources.
2.The act also established the Oil Spill Technical Advisory
Committee (TAC) with specified membership. The TAC is charged
with providing recommendations to the OSPR administrator and
other specified state entities regarding implementation of the
act.
3.The source of crude oil and method of its transportation into
the state may be in the process of significant changes. The
recent development of large oil fields in North Dakota, Texas
and other North American locations has led to a surge in rail
transport of crude oil. The chemical and physical properties
of at least some of these crude oils are different from
"typical" crude oils - it may be more volatile, flammable and
corrosive.
4.Recent derailments of trains carrying this crude oil in some
instances resulted in unanticipated explosions, extensive
fires, and in some instances, significant environmental and
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property damage costing in the billions of dollars and loss of
life.
5.Significant shifts in the mode of transportation of crude oil
into and within California are expected to occur in the near
future. Previously most crude oil imported into California
arrived by marine vessel. According to the Brown
Administration, the volume of oil transported by rail is
anticipated to increase to up to 150 million barrels per year
by 2016. This would be 25% of all the crude oil refined in
California.
6.This shift in transportation mode - with an accompanying shift
in the source of the oil being refined in the state - means
that the nature of the risks associated with oil spills as
well as the likely locations of spills is also changing.
PROPOSED LAW
This bill would require the TAC to monitor and evaluate changes
in the modes of crude oil transportation into and within the
state and the properties of the oil carried in order to identify
any necessary changes in oil spill response and preparedness
programs.
The bill would further make some technical clean-up changes to
the act.
ARGUMENTS IN SUPPORT
According to the author, "the state's oil spill response program
is designed for oil imports to be transported by ship or barge.
If the projected increases in rail transport of oil occur, it
will be necessary to review the state's plans for oil spill
response to ensure that all contingencies are accounted for.
The same is true if the properties of the oil changes. The
first responders shouldn't be surprised by what they find in the
event of a spill. My bill aims to prevent that from happening
by specifically requiring the TAC to keep track of how the crude
oil is moving and what its properties are. TAC has the existing
authority and expertise. It's important that the state and its
responders be prepared in order to most effectively respond to
spills to protect the health and safety of our communities and
the environment."
ARGUMENTS IN OPPOSITION
None received
COMMENTS
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This bill is a work-in-progress . The author intends to make
further amendments to this bill to provide additional direction
to the OSPR program should this bill pass the Committee.
Trains and boats and planes? The most efficient and
cost-effective method to import crude oil into the state is
likely to continue to change over time. Oil produced from
yet-to-be-discovered fields may also have different properties
than the mix of crude oils used now. The ongoing direction to
the TAC to specifically monitor and evaluate both is
appropriate.
Changes to OSPR proposed through the budget . The Brown
Administration has proposed significant changes to the existing
OSPR program through the FY 2014-15 Budget to address the
expected increase of crude oil transport by rail. The proposed
Budget Change Proposal (BCP) expands the current oil spill
prevention and response program focused on marine waters inland
to include all waters of the state. According to the BCP, about
half of all inland spills are oil spills. Given the proximity of
rail lines to California's waterways, the risk of contamination
following a rail accident is high. The Administration's proposal
would require the implementation of a statewide inland oil spill
program encompassing oil-related facilities and oil
transporters. The proposal would extend to inland waters
features of the current marine oil spill program and makes
additional changes in the funding mechanism, the TAC and other
program features.
Relevant recent informational hearings . Two informational
hearings were recently held regarding rail and the transport of
crude oil into the state. The first, focused on rail and the
regulation of rail, was convened by the Senate Energy, Utilities
and Communication Committee on February 24, 2014. The second,
focused on emergency response to rail accidents, was a joint
hearing of this Committee and the Senate Environmental Quality
Committee on March 19, 2014. Hearing materials are available
for both.
SUPPORT
None Received
OPPOSITION
None Received
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