Advertisement

Oil Spill Superfund Effort Sidetracked : Legislation: A bill imposing fees on companies runs into Republican opposition in the Assembly. But its sponsor remains confident.

Share
TIMES STAFF WRITER

A bill to set up a $500-million superfund from fees charged to oil companies to clean up offshore spills was temporarily sidetracked Wednesday in the Assembly Ways and Means Committee when it ran into Republican opposition.

The measure, sponsored by Assemblyman Ted Lempert (D-San Mateo), chairman of the Select Committee on Oil Spill Prevention and Response Preparedness, was shipped off to a subcommittee to look for supplemental means of funding.

In its present form the legislation would assess a 50-cents-per-barrel fee against companies shipping crude oil into California by tanker. Lesser fees would be charged for oil brought in from offshore wells.

Advertisement

“It’s going to be the gasoline consumer who is going to pay (the 50-cent fee),” complained Assemblywoman Cathie Wright (R-Simi Valley). Wright noted that voters also will be asked to approve a gasoline tax increase in June to improve the statewide transportation system. “That’s double taxation,” she said.

Assemblyman Gerald N. Felando (R-San Pedro) argued that the 50-cent figure was “unacceptable” and should be reduced. Felando also suggested that oil companies could be bonded and form a pool to provide supplemental spill cleanup funds.

Assemblyman John Burton (D-San Francisco) urged Lempert to seriously consider Felando’s suggestion, adding that the bonding idea “made more sense” to him. Lempert agreed to do so. A unanimous roll-call vote sent the measure to subcommittee.

After the hearing, Lempert said he remains confident that the oil spill cleanup superfund bill will be passed by the Legislature.

“This is not a major setback,” he said. “The supporters of the bill just want to work out the funding. I am still optimistic that we will get the bill out of the Assembly and the Senate.”

In addition to the superfund, the legislation would establish a new state office to coordinate all oil spill response efforts, require tanker safety and emergency plans at every oil transfer terminal in California and require unannounced tanker inspections.

Advertisement

The superfund bill was introduced after legislative hearings prompted by the March, 1989, oil spill from the Exxon Valdez tanker in Alaska’s Prince William Sound. The bill received renewed attention last February after the British Petroleum oil spill from the tanker American Trader off Huntington Beach.

Terry Frost, speaking for the Western States Petroleum Assn., representing major oil companies, testified before the committee that his group is opposed to the fee funding formula contained in the bill. Support witnesses included representatives of the Sierra Club, the Planning and Conservation League, the Ocean Alliance and Newport Beach City Councilwoman Evelyn Hart.

Advertisement