SENATE BILL REPORT

ESHB 1853

BYHouse Committee on Environmental Affairs (originally sponsored by Representatives Jones, Hargrove, Rust, Winsley, Haugen, Spanel, Basich, R. King, Belcher, Cole, Jacobsen, Pruitt, P. King, Valle and Nelson)

Providing for oil spill damage assessments.

House Committe on Environmental Affairs

Rereferred House Committee on Appropriations

Senate Committee on Environment & Natural Resources

Senate Hearing Date(s):March 23, 1989

Majority Report:  Do pass.

      Signed by Senators Metcalf, Chairman; Amondson, Vice Chairman; Bauer, Kreidler, Owen, Patterson, Sutherland.

Senate Staff:Atsushi Kiuchi (786-7708)

                  March 23, 1989

AS REPORTED BY COMMITTEE ON ENVIRONMENT & NATURAL RESOURCES, MARCH 23, 1989

BACKGROUND:

Four major oil spills have occurred in Washington waters over the last five years.  The most recent is the spill from the Nestucca barge in Grays Harbor in December, 1988.

Under current state law, assessment studies are conducted to determine the damages to natural resources that result from oil spills.  Although damage assessment studies have been conducted in the past, this method has been criticized because the cost may be more than the damages actually claimed.  For instance, the 1984 Mobil oil spill resulted in $181,000 in assessment study costs and $35,000 in damages claimed.  The 1985 Arco oil spill resulted in $285,000 in assessment study costs and $33,000 in damages claimed.  Another criticism of current methods is that damages to natural resources are underestimated.

In 1986, the Legislature responded to oil spill concerns by directing the Department of Ecology (Ecology) to establish an Oil Spill Advisory Committee to study existing oil spill prevention, containment and clean-up provisions.  Along with other oil spill recommendations, this committee recommended that the Legislature consider the enactment of legislation similar to Alaska's which imposes a monetary charge per gallon of oil spilled.

The 1987 Legislature directed Ecology to contract with the University of Washington to conduct a study of the state's oil spill damage assessment methods and develop a recommended damage assessment methodology.

SUMMARY:

The Department of Ecology is directed to adopt an oil spill compensation schedule by July 1, 1991.  The schedule will list compensation due the state for oil spill damages that are unquantifiable or damages that are not quantifiable at a reasonable cost.  The schedule will set up a ranking system that takes into account factors such as the toxicity of the oil, the sensitivity of the affected areas, and actions taken by the spiller that mitigate or exacerbate the damage.

The amount of compensation assessed under the schedule will range from no less than $1 per gallon of oil spilled to no greater than $50 per gallon of oil spilled.  A scientific advisory board will assist in the development of the schedule.

For each oil spill, a formal preassessment screening committee will be convened to determine whether a damage assessment study should be conducted or the compensation schedule should be used.  Damage assessment studies may only be conducted if the committee determines that the damages are quantifiable at a reasonable cost and that the proposed studies are clearly linked to quantification of the damages incurred.

The compensation schedule will be used if the committee determines that restoration of the injured resources is not technically feasible and that damages are not quantifiable at a reasonable cost.  Liable parties may propose restoration projects in lieu of damage assessment studies or the compensation schedule.

Compensation will go into the coastal protection fund and be dedicated to the following uses: (1) Environmental restoration and enhancement projects; (2) investigations of the long-term effects of oil spills; and (3) reimbursement of agencies for reconnaissance and damage assessment costs.  A steering committee consisting of the Departments of Ecology, Fisheries, Wildlife, and the Parks and Recreation Commission will authorize the expenditure of these monies.

Ecology will report on implementation of the compensation schedule to the Legislature for the next five years.

Any person who intentionally or recklessly causes an oil spill is subject to a civil penalty of up to $100,000.

Appropriation:    $75,000 from the State Toxics Control Account to the Department of Ecology.

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Representative Evan Jones (for); Senator Paul Conner (for); Randy Ray, Northwest Tug Boat Association