Democrats’ Bill on Oil Spill Cleanup Passed by Assembly

Democrat-sponsored legislation designed to help California respond to a major oil spill won easy passage in the Assembly on Monday while a competing measure backed by Gov. George Deukmejian stalled in a committee.

The bill the Assembly passed and sent to the Senate would create a $64-million oil spill superfund and a $1-billion line of credit, backed by oil industry finances, that the state could use in an emergency.

The legislation, drafted by Assemblyman Ted Lempert (D-San Mateo) and opposed by the industry, also would centralize the state’s spill-response efforts under one agency in an attempt to cut through bureaucratic turf wars and hasten the delivery of help to a stricken area.

It would create an emergency fund that would be available for use immediately after an accident and a larger source of cleanup funds for which the industry would be liable.

The program would be paid for with an 18-cent-per-barrel surcharge on oil passing through California ports. Once the $64-million fund was established, which is expected to take about two years, the fee would be lowered to 3 1/2 cents per barrel.

Lempert said even the higher charge would not be noticed by motorists.

“We’re not going to see this at the pump,” he said, estimating that the charge would translate into less than a tenth of a cent on each gallon of gasoline.

Lempert and other supporters of his measure said a key provision would create a new state office of oil spill prevention and response to regulate oil transport and to respond in an emergency.

The office would regulate the industry’s preparation of contingency plans, develop prevention measures for tankers, terminals and onshore facilities and regulate the use of radar and other devices used to prevent oil vessels from colliding or going aground.

If there were a spill, the head of the office would direct the state and industry response. The bill’s proponents said Alaska’s ability to contain last year’s Valdez oil spill was hampered by an uncoordinated and confusing response from state agencies. They said California risks committing the same mistake because the state Department of Fish and Game, while it plays an important role, is not capable of directing the entire effort.

“You can’t afford to have a bunch of bureaucracies running around trying to figure out who is going to do what,” said Democratic Assemblyman Sam Farr of Carmel.

Republicans were split on the measure that passed 58 to 10. Several spoke against it, arguing that the proposed fee is too high and would be passed along to consumers. Some GOP lawmakers also said the Department of Fish and Game should remain the primary agency responsible for oil spills.

“This is an unacceptable new level of bureaucracy,” said Assemblyman Phillip Wyman (R-Tehachapi).

But several Republicans voted for the bill, and later, in the Assembly Natural Resources Committee, two GOP legislators lashed out at a Fish and Game official who was there to argue on behalf of Gov. Deukmejian’s proposal. The governor’s plan would create a $30-million cleanup fund and leave the job in the department’s hands.

Assemblyman Nolan Frizzelle (R-Huntington Beach) said Fish and Game performed poorly during the recent American Trader oil spill off the Orange County coast, delegating far too much authority for the cleanup to the companies responsible for the spill.

Assemblywoman Beverly Hansen (R-Santa Rosa) said Fish and Game would be her “last choice” to run the oil spill program. “Coastal protection is far too important to put in the hands of an agency that hasn’t proven diddly squat,” Hansen said.

Michael McCallum, chief deputy director of Fish and Game, defended his department’s performance. “Our philosophy is, don’t change the system, just give it the resources it needs to work efficiently,” McCallum said.

Robert Gore, the governor’s press secretary, said Deukmejian has no position on Lempert’s bill but “favors his own plan.” Gore said he does not know what the Administration’s strategy would be if Deukmejian’s proposal continues to flounder while Lempert’s moves forward.