BILL NUMBER: SB 1739	CHAPTERED
	BILL TEXT

	CHAPTER  566
	FILED WITH SECRETARY OF STATE  SEPTEMBER 29, 2008
	APPROVED BY GOVERNOR  SEPTEMBER 29, 2008
	PASSED THE SENATE  AUGUST 28, 2008
	PASSED THE ASSEMBLY  AUGUST 20, 2008
	AMENDED IN ASSEMBLY  AUGUST 18, 2008
	AMENDED IN ASSEMBLY  JULY 2, 2008
	AMENDED IN SENATE  APRIL 1, 2008

INTRODUCED BY   Senator Simitian

                        FEBRUARY 22, 2008

   An act to amend Sections 8670.10, 8670.29, and 8670.30 of the
Government Code, relating to oil spills.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1739, Simitian. Oil spill contingency plan.
   (1) The Lempert-Keene-Seastrand Oil Spill Prevention and Response
Act generally requires the administrator for oil spill response,
acting at the discretion of the Governor, to implement activities
relating to oil spill response, including drills and preparedness,
and oil spill containment and cleanup, and to represent the state in
any coordinated response efforts with the federal government. The act
requires the administrator to periodically carry out announced and
unannounced drills to test response and cleanup operations,
equipment, contingency plans, and procedures.
   This bill would specify an alternative procedure if the
administrator, the United States Coast Guard, or any other qualified
public agency, as determined by the administrator, is unable to
attend a drill of the oil spill contingency plan held outside the
state. The bill would authorize the administrator to require the
owner or operator of the vessel or marine facility to provide for an
independent drill monitor to evaluate the drill, who would be
required to submit the evaluation to the administrator and the owner
or operator. Based upon this evaluation, the administrator would be
required to determine whether the drill satisfies the requirements of
the act. The bill would require the administrator to adopt
regulations to implement these provisions on or before January 1,
2010.
   (2) The act requires every owner or operator of specified marine
facilities and owners or operators of certain vessels to prepare and
implement an oil spill continency plan containing specified
provisions that has been submitted to, and approved by, the
administrator. With respect to a marine facility, the act requires
the plan to include provisions for training and drills on elements of
the plan at least annually and provisions for subjecting all
elements of the plan to drills or tests, as specified by the
administrator, at least once every 3 years.
   This bill would instead require the plan for both those marine
facilities and for vessels to include training and drills on all
elements of the plan at least annually and subject all elements of
the plan to a drill at least once every 3 years.
   (3) The act authorizes an oil spill response organization (OSRO)
to apply to the administrator for a rating of that OSRO's response
capabilities. The administrator is authorized to require a rated OSRO
to demonstrate that the rated OSRO can deploy the response resources
required to meet the applicable provisions of an oil spill
contingency plan in which the OSRO is listed. The act requires each
rated OSRO to satisfactorily complete at least one unannounced drill
every 3 years after receiving its rating, and allows for specified
drill substitutions.
   This bill would instead require the administrator to require a
rated OSRO to demonstrate that the rated OSRO can deploy the response
resources required to meet the applicable provisions of an oil spill
contingency plan in which the OSRO is listed. The bill would also
require the administrator to require satisfactory completion of one
unannounced drill for each rated OSRO prior to being granted a
renewal or prior to reinstatement of a revoked or suspended rating.
The bill would limit certain drill substitutions to acts within the
previous 3 years.
   (4) This bill would incorporate additional changes in Section
8670.30 of the Government Code, proposed by AB 2547, to be operative
only if AB 2547 and this bill are both chaptered and become effective
on or before January 1, 2009, and this bill is chaptered last.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 8670.10 of the Government Code is amended to
read:
   8670.10.  (a) (1) Except as provided in subdivision (b), in
coordination with all appropriate federal, state, and local
government entities, the administrator shall periodically carry out
announced and unannounced drills to test response and cleanup
operations, equipment, contingency plans, and procedures implemented
under this chapter. If practical, the administrator shall coordinate
drills with drills carried out by the State Lands Commission and the
California Coastal Commission to test prevention operations,
equipment, and procedures. In carrying out announced drills, the
administrator shall coordinate with the private entities involved in
the drill. Each state and local entity, each rated OSRO, and each
operator shall cooperate with the administrator in carrying out these
drills.
   (2) The administrator shall establish performance standards that
each operator and rated OSRO shall meet during the drills carried out
pursuant to this subdivision. The standards shall include, but are
not limited to, a standard for the time allowable for adequate
response, and shall also specify conditions for canceling a drill
because of hazardous or other operational circumstances that may
exist. The standards shall specify the protections that the
administrator determines are necessary for any environmentally
sensitive area, as defined by the administrator.
   (3) The costs incurred by an operator to comply with this section
and regulations adopted pursuant to this section are the
responsibility of the operator. All costs incurred by a local, state,
or federal agency in conjunction with participation in a drill
pursuant to this chapter shall be borne by each respective agency.
   (4) After every drill attended by the administrator or his or her
representative, that person shall issue a report that evaluates the
performance of the participants.
   (b) (1) If the administrator, the United States Coast Guard, or
any other qualified public agency, as determined by the
administrator, is unable to attend a drill of an oil spill
contingency plan held outside the state, the administrator may
require the owner or operator to provide for an independent drill
monitor to evaluate the drill consistent with the requirements of
this chapter. The administrator shall adopt regulations to implement
this section on or before January 1, 2010.
   (2) Within 14 days after the date that the drill specified in
paragraph (1) is conducted, the independent drill monitor shall
submit the evaluation specified in paragraph (1) to the administrator
and owner or operator.
   (3) Based on the evaluation submitted pursuant to paragraph (2)
and any other applicable requirements of this chapter, the
administrator shall determine whether the drill conducted pursuant to
this subdivision satisfies the requirements of this chapter.
  SEC. 2.  Section 8670.29 of the Government Code is amended to read:

   8670.29.  (a) In accordance with the rules, regulations, and
policies established by the administrator pursuant to Section
8670.28, an owner or operator of a marine facility, small marine
fueling facility, or mobile transfer unit, prior to operating in the
marine waters of the state or where an oil spill could impact marine
waters; and an owner or operator of a tank vessel, nontank vessel, or
vessel carrying oil as secondary cargo, before operating in the
marine waters of the state, shall prepare and implement an oil spill
contingency plan that has been submitted to, and approved by, the
administrator pursuant to Section 8670.31. An oil spill contingency
plan shall ensure the undertaking of prompt and adequate response and
removal action in case of an oil spill, shall be consistent with the
California oil spill contingency plan, and shall not conflict with
the National Oil and Hazardous Substances Pollution Contingency Plan
(NCP).
   (b) An oil spill contingency plan shall, at a minimum, meet all of
the following requirements:
   (1) Be a written document, reviewed for feasibility and
executability, and signed by the owner or operator, or their
designee.
   (2) Provide for the use of an incident command system to be used
during a spill.
   (3) Provide procedures for reporting oil spills to local, state,
and federal agencies, and include a list of contacts to call in the
event of a drill, threatened spill, or spill.
   (4) Describe the communication plans to be used during a spill.
   (5) Describe the strategies for the protection of environmentally
sensitive areas.
   (6) Identify at least one rated OSRO for each rating level
established pursuant to Section 8670.30. Each identified rated OSRO
shall be directly responsible by contract, agreement, or other
approved means to provide oil spill response activities pursuant to
the oil spill contingency plan. A rated OSRO may provide oil spill
response activities individually, or in combination with another
rated OSRO, for a particular owner or operator.
   (7) Identify a qualified individual.
   (8) Provide the name, address, and telephone and facsimile numbers
for an agent for service of process, located within the state and
designated to receive legal documents on behalf of the owner or
operator.
   (9) Provide for training and drills on elements of the plan at
least annually, with all elements of the plan subject to a drill at
least once every three years.
   (c) An oil spill contingency plan for a vessel shall also include,
but is not limited to, all of the following requirements:
   (1) The plan shall be submitted to the administrator at least
seven days prior to the vessel entering waters of the state.
   (2) The plan shall provide evidence of compliance with the
International Safety Management Code, established by the
International Maritime Organization, as applicable.
   (3) If the oil spill contingency plan is for a tank vessel, the
plan shall include both of the following:
   (A) The plan shall specify oil and petroleum cargo capacity.
   (B) The plan shall specify the types of oil and petroleum cargo
carried.
   (4) If the oil spill contingency plan is for a nontank vessel, the
plan shall include both of the following:
   (A) The plan shall specify the type and total amount of fuel
carried.
   (B) The plan shall specify the capacity of the largest fuel tank.
   (d) An oil spill contingency plan for a marine facility shall also
include, but is not limited to, all of the following provisions:
   (1) Provisions for site security and control.
   (2) Provisions for emergency medical treatment and first aid.
   (3) Provisions for safety training, as required by state and
federal safety laws for all personnel likely to be engaged in oil
spill response.
   (4) Provisions detailing site layout and locations of
environmentally sensitive areas requiring special protection.
   (5) Provisions for vessels that are in the operational control of
the facility for loading and unloading.
   (e) The oil spill contingency plan shall be available to response
personnel and to relevant state and federal agencies for inspection
and review.
   (f) The oil spill contingency plan shall be reviewed periodically
and updated as necessary. All updates shall be submitted to the
administrator pursuant to this article.
   (g) In addition to the regulations adopted pursuant to Section
8670.28, the administrator shall adopt regulations and guidelines to
implement this section. The regulations and guidelines shall provide
for the best achievable protection of coastal and marine resources.
The administrator may establish additional oil spill contingency plan
requirements, including, but not limited to, requirements based on
the different geographic regions of the state. All regulations and
guidelines shall be developed in consultation with the State
Interagency Oil Spill Committee and the Oil Spill Technical Advisory
Committee.
  SEC. 3.  Section 8670.30 of the Government Code is amended to read:

   8670.30.  (a) An oil spill response organization may apply to the
administrator for a rating of that OSRO's response capabilities. The
administrator shall establish rating levels for classifying OSROs
pursuant to subdivision (b).
   (b) Upon receiving a completed application for rating, the
administrator shall review the application and rate the OSRO based on
the OSRO's satisfactory compliance with criteria established by the
administrator, which shall include, but is not limited to, all of the
following elements:
   (1) The geographic region or regions of the state where the OSRO
intends to operate.
   (2) Timeframes for having response resources on-scene and
deployed.
   (3) The type of equipment that the OSRO will use and the location
of the stored equipment.
   (4) The volume of oil that the OSRO is capable of recovering and
containing.
   (c) The administrator shall not issue a rating until the applicant
OSRO completes an unannounced drill. The administrator may call a
drill for every distinct geographic area in which the OSRO requests a
rating. The drill shall test the resources and response capabilities
of the OSRO, including, but not limited to, on water containment and
recovery, environmentally sensitive habitat protection, and storage.
If an OSRO fails to successfully complete a drill, the administrator
shall not issue the requested rating, but the administrator may rate
the OSRO at a rating lesser than the rating sought with the
application. If an OSRO is denied a requested rating, the OSRO may
reapply for rating.
   (d) A rating issued pursuant to this section shall be valid for
three years unless modified, suspended, or revoked. The administrator
shall review the rating of each rated OSRO at least once every three
years. The administrator shall not renew a rating unless the OSRO
meets criteria established by the administrator, including, at a
minimum, that the rated OSRO periodically tests and drills itself,
including testing protection of environmentally sensitive sites,
during the three-year period.
   (e) The administrator shall require a rated OSRO to demonstrate
that the rated OSRO can deploy the response resources required to
meet the applicable provisions of an oil spill contingency plan in
which the OSRO is listed. These demonstrations may be achieved
through inspections, announced and unannounced drills, or by any
other means.
   (f) (1) Except as provided in paragraph (6), each rated OSRO shall
satisfactorily complete at least one unannounced drill every three
years after receiving its rating.
   (2) The administrator may modify, suspend, or revoke an OSRO's
rating if a rated OSRO fails to satisfactorily complete a drill.
   (3) The administrator may require the satisfactory completion of
one unannounced drill of each rated OSRO prior to being granted a
modified rating, and shall require satisfactory completion of one
unannounced drill for each rated OSRO prior to being granted a
renewal or prior to reinstatement of a revoked or suspended rating.
   (4) A drill for the protection of environmentally sensitive areas
shall conform as close as possible to the response that would occur
during a spill but sensitive sites shall not be damaged during the
drill.
   (5) The response resources to be deployed by a rated OSRO within
the first six hours of a spill or drill shall be dedicated response
resources or be owned and controlled by a rated OSRO that are
sufficient to meet the spill response planning requirements of the
OSRO's client owner or operator. This requirement does not preclude a
rated OSRO from bringing in additional response resources. The
administrator may, by regulation, permit a lesser requirement for
dedicated or OSRO owned and controlled response resources for
shoreline protection.
   (6) The administrator may determine that actual satisfactory spill
response performance during the previous three years may be
substituted in lieu of a drill.
   (7) The administrator shall issue a written report evaluating the
performance of the OSRO after every unannounced drill called by the
administrator.
   (8) The administrator shall determine whether an unannounced drill
called upon an OSRO by a federal agency during the previous three
years qualifies as an unannounced drill for the purposes of this
subdivision.
   (g) Each rated OSRO shall provide reasonable notice to the
administrator about each future drill, and the administrator, or his
or her designee, may attend the drill.
   (h) The costs incurred by an OSRO to comply with this section and
the regulations adopted pursuant to this section, including drills
called by the administrator, shall be the responsibility of the OSRO.
All local, state, and federal agency costs incurred in conjunction
with participation in a drill shall be borne by each respective
agency.
   (i) (1) A rating awarded pursuant to this section is personal and
applies only to the OSRO that receives that rating and the rating is
not transferable, assignable, or assumable. A rating does not
constitute a possessory interest in real or personal property.
   (2) If there is a change in ownership or control of the OSRO, the
rating of that OSRO is null and void and the OSRO shall file a new
application for a rating pursuant to this section.
   (3) For purposes of this subdivision, a "change in ownership or
control" includes, but is not limited to, a change in corporate
status, or a transfer of ownership that changes the majority control
of voting within the entity.
   (j) The administrator may charge a reasonable fee to process an
application for, or renewal of, a rating.
   (k) The administrator shall adopt regulations to implement this
section as appropriate. At a minimum, the regulations shall
appropriately address all of the following:
   (1) Criteria for successful completion of a drill.
   (2) The amount and type of response resources that are required to
be available to respond to a particular volume of spilled oil during
specific timeframes within a particular region.
   (3) Regional requirements.
   (4) Training.
   (5) The process for applying for a rating, and for suspension,
revocation, appeal, or other modification of a rating.
   (6) Ownership and employment of response resources.
   (7) Conditions for canceling a drill due to hazardous or other
operational circumstances.
   () Any letter of approval issued from the administrator before
January 1, 2002, that rates an OSRO shall be deemed to meet the
requirements of this section for three years from the date of the
letter's issuance or until January 1, 2003, whichever date occurs
later.
  SEC. 3.5.  Section 8670.30 of the Government Code is amended to
read:
   8670.30.  (a) An oil spill response organization may apply to the
administrator for a rating of that OSRO's response capabilities. The
administrator shall establish rating levels for classifying OSROs
pursuant to subdivision (b).
   (b) Upon receiving a completed application for rating, the
administrator shall review the application and rate the OSRO based on
the OSRO's satisfactory compliance with criteria established by the
administrator, which shall include, but is not limited to, all of the
following elements:
   (1) The geographic region or regions of the state where the OSRO
intends to operate.
   (2) Timeframes for having response resources on-scene and
deployed.
   (3) The type of equipment that the OSRO will use and the location
of the stored equipment.
   (4) The volume of oil that the OSRO is capable of recovering and
containing.
   (5) The dedicated response resources the OSRO controls in the area
it intends to operate. For the purposes of this paragraph, "controls"
means equipment owned by the OSRO and located in the area and
personnel employed by the OSRO and located in the area.
   (6) The capability of the OSRO to provide best achievable
protection.
   (c) The administrator shall not issue a rating until the applicant
OSRO completes an unannounced drill. The administrator may call a
drill for every distinct geographic area in which the OSRO requests a
rating. The drill shall test the resources and response capabilities
of the OSRO, including, but not limited to, on water containment and
recovery, environmentally sensitive habitat protection, and storage.
If an OSRO fails to successfully complete a drill, the administrator
shall not issue the requested rating, but the administrator may rate
the OSRO at a rating lesser than the rating sought with the
application. If an OSRO is denied a requested rating, the OSRO may
reapply for rating.
   (d) A rating issued pursuant to this section shall be valid for
three years unless modified, suspended, or revoked. The administrator
shall review the rating of each rated OSRO at least once every three
years. The administrator shall not renew a rating unless the OSRO
meets criteria established by the administrator, including, at a
minimum, that the rated OSRO periodically tests and drills itself,
including testing protection of environmentally sensitive sites,
during the three-year period.
   (e) The administrator shall require a rated OSRO to demonstrate
that the rated OSRO can deploy the response resources required to
meet the applicable provisions of an oil spill contingency plan in
which the OSRO is listed. These demonstrations may be achieved
through inspections, announced and unannounced drills, or by any
other means.
   (f) (1) Except as provided in paragraph (6), each rated OSRO shall
satisfactorily complete at least one unannounced drill every three
years after receiving its rating.
   (2) The administrator may modify, suspend, or revoke an OSRO's
rating if a rated OSRO fails to satisfactorily complete a drill.
   (3) The administrator shall require the satisfactory completion of
one unannounced drill of each rated OSRO prior to being granted a
modified rating, and shall require satisfactory completion of one
unannounced drill for each rated OSRO prior to being granted a
renewal or prior to the reinstatement of a revoked or suspended
rating.
   (4) A drill for the protection of environmentally sensitive areas
shall conform as close as possible to the response that would occur
during a spill but sensitive sites shall not be damaged during the
drill.
   (5) The response resources to be deployed by a rated OSRO within
the first six hours of a spill or drill shall be dedicated response
resources. This requirement does not preclude a rated OSRO from
bringing in additional response resources. The administrator may, by
regulation, permit a lesser requirement for dedicated or OSRO owned
and controlled response resources for shoreline protection.
   (6) The administrator may determine that actual satisfactory spill
response performance during the previous three years may be
substituted in lieu of a drill.
   (7) The administrator shall issue a written report evaluating the
performance of the OSRO after every unannounced drill called by the
administrator.
   (8) The administrator shall determine whether an unannounced drill
called upon an OSRO by a federal agency during the previous three
years qualifies as an unannounced drill for the purposes of this
subdivision.
   (g) Each rated OSRO shall provide reasonable notice to the
administrator about each future drill, and the administrator, or his
or her designee, may attend the drill.
   (h) The costs incurred by an OSRO to comply with this section and
the regulations adopted pursuant to this section, including drills
called by the administrator, shall be the responsibility of the OSRO.
All local, state, and federal agency costs incurred in conjunction
with participation in a drill shall be borne by each respective
agency.
   (i) (1) A rating awarded pursuant to this section is personal and
applies only to the OSRO that receives that rating and the rating is
not transferable, assignable, or assumable. A rating does not
constitute a possessory interest in real or personal property.
   (2) If there is a change in ownership or control of the OSRO, the
rating of that OSRO is null and void and the OSRO shall file a new
application for a rating pursuant to this section.
   (3) For purposes of this subdivision, a "change in ownership or
control" includes, but is not limited to, a change in corporate
status, or a transfer of ownership that changes the majority control
of voting within the entity.
   (j) The administrator may charge a reasonable fee to process an
application for, or renewal of, a rating.
   (k) The administrator shall adopt regulations to implement this
section as appropriate. At a minimum, the regulations shall
appropriately address all of the following:
   (1) The level of resources that constitute best achievable
protection.
   (2) Criteria for successful completion of a drill.
   (3) The amount and type of response resources that are required to
be available to respond to a particular volume of spilled oil during
specific timeframes within a particular region.
   (4) Regional requirements.
   (5) Training.
   (6) The process for applying for a rating, and for suspension,
revocation, appeal, or other modification of a rating.
   (7) Ownership and employment of response resources.
   (8) Conditions for canceling a drill due to hazardous or other
operational circumstances.
   () A letter of approval issued from the administrator before
January 1, 2002, that rates an OSRO shall be deemed to meet the
requirements of this section for three years from the date of the
letter's issuance or until January 1, 2003, whichever date occurs
later.
  SEC. 4.  Section 3.5 of this bill incorporates amendments to
Section 8670.30 of the Government Code proposed by both this bill and
AB 2547. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2009, (2) each
bill amends Section 8670.30 of the Government Code, and (3) this bill
is enacted after AB 2547, in which case Section 3 of this bill shall
not become operative.