SB 414 Page 1 SENATE THIRD READING SB 414 (Jackson) As Amended September 4, 2015 Majority vote SENATE VOTE: 35-2 Committee Votes Ayes Noes Natural Resources 8-1 Williams, Dahle, Cristina Garcia, Hadley, McCarty, Rendon, Mark Stone, Wood Harper Governmental Organization 12-0 Gray, Alejo, Campos, Cooley, Cooper, Daly, Cristina Garcia, Eduardo Garcia, Gipson, Roger Hernández, Levine, Wilk Appropriations 17-0 Gomez, Bigelow, Bloom, Bonta, Calderon, Chang, Nazarian, Eggman, Gallagher, Eduardo Garcia, Holden, Jones, Quirk, Rendon, Wagner, Weber, Wood SUMMARY: Makes various changes to the Lempert-Keene-Seastrand Oil Spill Prevention and Response Act (Act) relating to oil spill response. Specifically, this bill: 1) Requires the Administrator of the Office of Spill Prevention and Response (Administrator), in cooperation with the Coast Guard, to establish a schedule of drills and exercises required by Federal law. 2) Requires the Administrator, by May 1, 2016, to request that the federal California Dispersants Plan be updated and support the federal Regional Response Team in updating the plan. 3) Requires the Administrator to submit a report to the Legislature by January 1, 2017, assessing the best achievable technology for oil spill prevention and response equipment as specified. Requires the Administrator to update regulations based on the report to enhance prevention response, containment, cleanup, and wildlife rehabilitation. 4) Requires the Administrator to direct the Harbor Safety Committees to assess the presence and capability of tugs within their respective geographic areas of responsibility. 5) Requires the Administrator to provide written notification and a follow-up report to the Legislature if dispersants are used in response to an oil spill, as specified. 6) Requires Oil Spill Technical Advisory Committee to convene a taskforce to evaluate and make recommendations regarding the feasibility of using vessels of opportunity for oil spill response in marine waters. SB 414 Page 2 7) Deletes the requirement that a penalty imposed by the Administrator be reduced for every gallon of released oil that is recovered and properly disposed of in accordance with applicable law. EXISTING LAW: 1) Requires the Administrator, acting at the direction of the Governor, to implement activities relating to oil spill response, including emergency drills and preparedness, and oil spill containment and clean-up. 2) Authorizes the Administrator to use volunteer workers in response, containment, restoration, wildlife rehabilitation, and clean-up efforts for oil spills in waters of the state. 3) Requires the Administrator to evaluate the feasibility of using commercial fishermen and other mariners for oil spill containment and clean-up. Requires the study to examine the following: a) Equipment and technology needs. b) Coordination with private response personnel. c) Liability and insurance. d) Compensation. 4) Requires the Administrator to study the use and effects of dispersants, incineration, bioremediation, and any other methods used to respond to a spill. Requires the study to be updated periodically to ensure the best achievable protection. 5) Requires the Administrator to periodically evaluate the feasibility of requiring new technologies to aid prevention, response, containment, clean-up, and wildlife rehabilitation. 6) Requires operators of specified vessels and facilities to submit to the Administrator an oil spill contingency plan. Requires the Administrator to determine whether the plan meets applicable requirements. 7) Requires the Administrator, taking into consideration the facility or vessel contingency plan requirements of the State Lands Commission, the Office of the State Fire Marshal, the California Coastal Commission, and other state and federal agencies, to adopt regulations governing the adequacy of oil spill contingency plans. Requires regulations to be developed in consultation with the Oil Spill Technical Advisory Committee, and not in conflict with the National Contingency Plan. Requires regulations to provide for the best achievable protection of waters and natural resources of the state including standards set for response, containment, and clean-up equipment and that operations are maintained and regularly improved to protect the resources of the state. 8) Requires the responsible party to be strictly liable for penalties for the spill on a per-gallon released basis. Authorizes the amount of penalty to be reduced by the amount of released oil that is recovered and properly disposed of. SB 414 Page 3 FISCAL EFFECT: According to the Assembly Appropriations Committee, increased one-time and ongoing costs in the range of several million dollars (General Fund and/or special fund) for the Department of Fish and Wildlife to implement the requirements of this bill. 1) Refugio Oil Spill. On May 19, 2015, a pipeline owned by Houston-based Plains All American Pipeline ruptured, spilling approximately 101,000 gallons to 140,000 gallons of heavy crude oil along the Gaviota coast in Santa Barbara County. It is estimated that 21,000 gallons of the oil went down a storm culvert onto cliffs and into the Pacific Ocean. The immediate oil spill area stretched over nine miles of California coastline, and tar balls have washed up as far as one hundred miles from the spill site. The pipeline that ruptured, known as Line 901, is a common carrier pipeline that transports oil that was produced on platforms offshore in both state and federal waters to be refined in Santa Maria or Kern County. On May 20, 2015, Governor Brown issued an emergency proclamation for Santa Barbara County due to the effects of the oil spill. Refugio State Beach and El Capitan State Beach were closed for over a month because of the oil spill. Fisheries from Canada de Alegria to Coal Oil Point were closed for over a month, which negatively impacted several commercial fisheries – including lobster, crab, shrimp, halibut, urchin, squid, whelk, and sea cucumber. The Oiled Wildlife Care Network recovered 195 dead birds and 106 dead marine mammals from the spill. Dead marine mammals recovered included dolphins, sea lions and seals. Sensitive habitat of the California Least Tern and the Snowy Plover, birds protected by the Endangered Species Act, has been damaged. Hotels, tour outfits and other tourism businesses have experienced cancelations and decreased bookings due to the spill. More than 1,000 workers from local, state and federal agencies worked to clean up the beaches. 14,267 gallons of oily water have been recovered to date. 2) The Act. The Act requires pipeline owners to develop, submit and implement an Oil Spill Contingency Plan, and these plans must not conflict with a National Contingency Plan. The Act also requires the party who causes oil to be discharged in or on the waters of the state to immediately report the spill to the California Office of Emergency Services and immediately contain, clean-up, and remove the oil in the most effective manner that minimizes environmental damage, and in accordance with the applicable contingency plans, unless ordered otherwise by the Coast Guard or the Administrator. 3) Best Achievable Protection. The Administrator is required to evaluate the feasibility of requiring new technologies to aid prevention, response, containment, clean-up, and wildlife rehabilitation. In addition, the Administrator is required to develop and update regulations to judge the adequacy of oil spill response plans. These updates are designed to ensure that the operator’s oil spill response plans will create the most robust response possible that achieves best achievable protection. This bill requires the Administrator to assess, using specified criteria, the best achievable technology of equipment for oil spill prevention and response. The goal of the assessment will be to verify that best achievable protection is being provided in case there is another oil spill. This bill also requires Administrator to update regulations that judge the operator's oil spill response plans based on the findings of the assessment. Analysis Prepared by: Michael Jarred / NAT. RES. / (916) 319-2092 FN: 0002191