Governor Signs Offshore Spill Cleanup Plan

Saying “an ounce of prevention would certainly be worth a barrel of spilled crude oil,” Gov. George Deukmejian on Saturday signed into law the most comprehensive offshore oil spill prevention and cleanup plan in the nation.

In his regular weekly radio address, the governor said the new law “will give California an unprecedented ability to prevent spills before they happen and to fight the effects of spills if they do occur.”

The statute, which takes effect immediately, is a direct result of the Exxon Valdez oil spill in Alaska last year and the British Petroleum tanker spill off Huntington Beach in February.

Generally viewed as one of the major achievements of the recently concluded legislative session, it would create a $100-million oil spill cleanup fund to be financed by placing an additional tax of 25 cents on each barrel of oil, which is expected to add less than a cent per gallon of gasoline sold at the pump.

In the event of a spill, the state also would be given unlimited authority to borrow additional funds for cleanup operations that would be repaid by the oil companies.

The governor is given the power to appoint a state oil spill “czar” or response administrator who will be charged with setting up a detailed comprehensive plan for the safe transportation of oil along California’s coastline.

These steps are expected to include surprise inspections of tankers and terminals, up-to-date safety plans for refineries, use of radar for tanker traffic, and requiring tugboat escorts in hazardous waters.

Oil companies transporting their product through state waters also must be able to demonstrate that they have $500 million worth of oil spill liability insurance protection.

For the first 60 days after a spill, cleanup crews will be immune from lawsuits for property damage they may cause. Oil industry representatives contend that immunity from liability for professional cleanup crews is necessary because they must act quickly to prevent the spill from spreading and should not be inhibited by fears that they might get sued.

The new law is a compromise worked out during nine months of intensive high-stakes negotiations involving a multitude of interested parties.

They included the Administration, Sen. Barry Keene (D-Benicia) and Assemblyman Ted Lempert (D-San Mateo), sponsors of two rival oil spill prevention and cleanup measures, the oil companies, trial lawyers and environmental groups.

Deukmejian threatened to veto the Keene bill sent to his desk unless the oil spill fund was capped at $50 million and the “czar” appointment was not subject to Senate confirmation.

The lawmakers, who demanded that the fund total $150 million, kept the confirmation requirement in the final version of the bill. It passed the Senate by a 30-1 vote and the Assembly by a 70-1 vote.

In his radio speech, Deukmejian said: “As everyone knows, the price of an oil spill is measured not only in miles of polluted beaches, but also in the tax dollars that must be expended to clean up the mess.

“I have always said that in any oil spill plan, the oil industry must be financially accountable for the costs that result from these spills.

“New civil and criminal penalties will be put on the books, and responsible parties will be made absolutely liable for damages caused by their spills.”

He also emphasized the value of oil spill prevention work that will be stimulated by the new law.

“Cleanup efforts, no matter how well carried out,” he said, “pale in effectiveness compared to solid prevention activities.

“In the case of oil spills, an ounce of prevention would certainly be worth a barrel of spilled crude oil.”

In addition, the governor underlined that California will remain heavily dependent on oil shipped to the state in tankers to help fuel the expanding economy.

But the new oil spill prevention and cleanup law “will allow us to maintain that important balance between economic growth and environmental balance . . . to ensure that our quality of life will remain the envy of the world,” Deukmejian said.