overview of the office of spill prevention & response ca department of fish & wildlife for...

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OVERVIEW OF THEOFFICE OF SPILL PREVENTION & RESPONSE CA DEPARTMENT OF FISH & WILDLIFE

FOR THECA ENERGY COMMISSIONIEPR COMMISSIONER WORKSHOPTRENDS IN CRUDE OIL MARKET & TRANSPORT

Ryan C. ToddSenior Staff CounselJuly 2015

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Main Topics Today

Trustee Responsibility Emerging challenges as a result of

market shifts in crude oil supply Office of Spill Prevention & Response

Overview Implementation of Statewide Oil Spill

Preparedness Mandates

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Public Trust Doctrine

Roman Emperor Justinian, circa 530 AD, created the "Institutes of Justinian," the body of Roman civil law. The Institutes covered much of Roman life and commerce, including:

“1. By the law of nature then the following things are common to all men; the air, running water, the sea, and consequently the shores of the sea."

Book II, Title 1. On the Division of Things, par. 1; tr. by Adby & Walker 1876, Cambridge

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Wildlife Trustee Responsibilities

1870: Board of Fish Commissioners. First wildlife conservation agency in the country.

1909: Board became the Fish & Game Commission 1926: Commission created a Pollution Bureau.

1927: Division of Fish & Game established to take over certain duties from the Commission.

1951: Division became the Department of Fish & Game. 1991: Office of Spill Prevention & Response 2013: Renamed the Department of Fish & Wildlife

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DFW Trustee Responsibilities

“The fish and wildlife resources are held

in trust for the people of the state

by and through the Department.”

Fish & Game Code §711.7, 1600, 1802, 2701

California Department ofFish & Wildlife

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Water Pollution Threat to Wildlife

Pollution is one of the single biggest threats to wildlife and habitat – acute or chronic. Compare: Disease? Cosco Busan – approximately 7,000 dead birds Deepwater Horizon – estimated 6,000+ birds,

600+ turtles, 150+ dolphins, other species. Refugio …… ?

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Statewide Oil Spill Program

Enacted in September 1990 (S.B. 2040)Revised June 2014 (S.B. 861)Government Code §8670.1 et. seq.

Lempert-Keene-SeastrandOil Spill Prevention & Response Act

Establishes statewidepreparedness and response mandates for

vessels and facilities, to protect surface waters of the state from oil spills.

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Lempert-Keene-SeastrandOil Spill Prevention & Response Act

Created an Administrator, appointed by the Governor; is a Chief Deputy Director of DFW. Gov. C. §8670.4

Office of Spill Prevention and Response (OSPR) opened 1991

Administrator has “…the primary authority to direct prevention, removal, abatement, response, containment, and cleanup efforts with regard to all aspects of any oil spill in the waters of the state…” and is the “incident commander” for oil spills in state surface waters. Gov. C. §8670.7; Fish & Game C. §5655(d)

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Shift in Crude Oil Transport

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Crude-by-Rail Westerly Flow

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C-B-R Facilities

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Increasing Risk

Crude Rail Incidents5 in 7 Years: 2006-2013

12 in 2 Years: 2013-2015

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Going Statewide

Original Mandates Limited to the Coast

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Main OSPR Programs

Prevention• Coordinate with Oversight Agencies Regarding Adequate Spill Measures and

Monitoring. (Not Regulatory) Readiness

• Contingency Planning • Oil Spill Response Organization Oversight• Drills and Exercises• Demonstration of Financial Responsibility (e.g. Insurance)• Local Government Coordination

Response• Spill Dispatch Center• Incident Command• Oiled Wildlife Care

Legal/Enforcement• Investigations (Criminal & Civil Actions)• NRDA – Natural Resource Damage Assessment & Restoration

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Funding

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Funding Solution

$0.065 per bbl of crude or petroleum received at refinery or marine terminal that passed over/through Waters of the State.

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New SB 861-affected Operators

Threat to Waters of the State Within ¼ mile

Estimate about 250-300 12-14 Pipeline operators 10-12 Railroad (Class I & Short Lines) 200+ Production Facilities Other fixed facilities (eg. refinery)

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Contingency Plans

Standards for Facility & Vessel Plans Best Achievable Protection Reasonable Worst Case Spill Volume Equipment Types, Location, & Time To Deliver Contractual Arrangements for Equipment & Services Strategies to Protect Environmentally Sensitive

Areas Use of Rated OSRO

Ref. Gov. C. §8670.28-31

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Reasonable Worst Case Spill Volumes

Production Facilities: 10% of the daily average of the largest producing well.

Distribution Pipelines: Same formula as used for marine pipelines (PHMSA)

Railroads: 20% of the maximum volume of oil cargo that a railroad may transport by a single train within the state based on 714 barrels per tank car.

Others: (i.e., gathering lines, portable storage tanks, etc.): Same formula as marine facilities.

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Geographic Response Plans

Federal plans to protect inland waterways from oils/haz mat

Feather River Canyon GRP underway: Feather River is ‘high risk’ for hazmat spills

Collaboration: OSPR, US EPA, BNSF, Union Pacific (ARCADIS)

Focus on rail and other transportation risks Public/LEPC process

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Oil Spill Response Organizations

OSRO [cleanup contractor] An entity that provides equipment, personnel, supplies,

or other services directly related to oil spill containment, cleanup, or removal activities. GC 8670.3

Rated by OSPR = Drills + Inspections On-water, booming, recovery, and storage Shoreline protection Terrestrial (shore) cleanup (new)

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OSROs – “Inland”

Equipment for Dry Washes? New Terrestrial Rating

Response Times Response Planning Areas

Ratings by RPA or counties within an RPA

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Drills for Operators & OSROs

Announced and Unannounced Drills Test response and cleanup operations, equipment,

contingency plans, and procedures of the plan.

All elements of the plan must be exercised at least once every 3 years

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Drills Objectives

Establishing Tiers based on Operator Size. Small (tier III), Medium (tier II) and Large (tier I)

Objectives for each tier are reflective of expectations based on the size and scope of the plan holder.

Tiers initially used for the new entities under SB 861, and will be phased in for existing marine plan holders in 2016/2017.

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OSPR Response Planning Areas

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Financial Responsibility

Demonstrate financial resources to pay for spill response & damages.

Based on Reasonable Worst Case Spill Volume. Methods:

Insurance Surety Bond Letter of Credit Guaranty Self-insure

Ref. Gov. C. §8670.37.51

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Financial Responsibility

Owner or operator, or oil owner, must make the demonstration.

Primarily responsible for facility, vessel, or the oil for determining liability.

Facilities Formula - generally: RWCS/bbls x $12,500 or $10,000 Up to $300,000,000

Vessels Tank Vessel - $1B Nontank Vessel – up to $300,000,000

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Oiled Wildlife Care Network

Rescue and rehabilitation stations, and proactive search and collection, for wildlife injured by oil spills.

Maintained in a state of preparedness to provide best achievable treatment.

Managed by the U.C. Davis Wildlife Health Center. 30 Participating Organizations

Aquaria Universities Scientific organizations Rehabilitation groups.

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Oiled Wildlife Care Network

Authorized to expand inland Looking at:

Inland wildlife rehabilitation facilities Wildlife rescue & care organizations

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Spill Response

Basic Aspects of a Spill for OSPR: Incident Management Response & Cleanup Injury Assessment (NRDA) Investigation Cost Recovery

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OSPR Field Response Team Areas

New for 2015/2016

6 New locations for staff

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New SB 861 OSPR Regulations

Expected Early to Mid-August, as emergency regulations; valid for 12 months.

Formal Rulemaking to be completed 12 months later; late summer early fall 2016. Workshops likely Spring 2016

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Lawsuit over SB 861 & Rail

Plaintiffs: UPRR, BNSF, & Assoc. of American Railroads

Defendants: OSPR, Tom Cullen as OSPR Administrator, and A.G. Kamala Harris

October 2014: RR Complaint and Motion for Preliminary Injunction

Dismissed June 2015 as not ripe.

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PHMSA Rulemaking

Pipeline & Hazardous Materials Safety Administration Tank Car Standards

Notice Aug 2014; CPUC and OES submitted comments Final rule May 2015

Oil Spill Contingency Plan revisions Notice Aug 2014 OSPR Submitted Comments No PHMSA action yet

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Federal Legislation 2015

S. 859 (Cantwell ) and H.R. 1804 (McDermott) “Crude-by-Rail Safety Act” Not acted upon since introduction.

Would directly put the FRA in charge of oil spill response planning for railroads. Drastic departure from current law, the President is

nationally responsible; delegated by Executive Order to USCG, EPA, DOT, MMS, etc.

Very open-ended for DOT to establish requirements – no specificity or guidance.

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Questions?

Thank You

Ryan C. ToddSenior Staff Counsel

OSPR/DFWryan.todd@wildlife.ca.gov

916.324.3406