SENATE BILL REPORT
SB 6701
BYSenators Bluechel, Bender, Sellar, Moore, von Reichbauer, Murray, Smitherman, Conner, Warnke and Lee
Creating the maritime commission and oil spill response system.
Senate Committee on Transportation
Senate Hearing Date(s):January 31, 1990
Majority Report: That Substitute Senate Bill No. 6701 be substituted therefor, and the substitute bill do pass.
Signed by Senators Patterson, Chairman; Thorsness, Vice Chairman; von Reichbauer, Vice Chairman; Barr, Bender, Benitz, Conner, DeJarnatt, Hansen, McMullen, Madsen, Murray, Nelson, Patrick.
Senate Staff:Vicki Fabre (786-7313)
February 6, 1990
AS REPORTED BY COMMITTEE ON TRANSPORTATION, JANUARY 31, 1990
BACKGROUND:
The diversity of species and unique character of habitat make Washington waters a natural wonder. These waters also provide a vital maritime trade link between the state and nation and the Pacific Rim. Unfortunately, maritime accidents involving oil spills have occurred in Washington waters which have endangered this unique environment. Treatment and containment of an oil spill, within the first 24 hours, is critical to the mitigation of environmental damage. While some commercial vessels (oil tankers) have voluntarily joined organizations which provide immediate oil spill response, there is no mechanism that provides for a mandatory emergency response communications network and which will, in the event of an oil spill or threat of a spill, provide and pay for the first 24 hours of response for all vessels entering Washington State waters.
SUMMARY:
All commercial vessels over 300 gross tons carrying oil as fuel or cargo which enter Washington waters are required to have an oil spill response system. This requirement does not apply to oceanographic research vessels, public vessels, pleasure vessels or vessels that have already arranged with an officially recognized cleanup cooperative or with a private cleanup contractor for immediate oil spill response.
The Washington State Maritime Commission is created to administer and enforce the provisions of the act. The commission is comprised of seven voting members and two nonvoting, ex officio members who are elected for a three-year term and represent steamship liner companies, tow boat companies, fishing vessels, steamship companies serving tramp vessels, and insurers of oil spill cleanup costs for vessels operating in Washington waters. The seventh member is appointed by the commission members and represents the public. The Director of the Department of Ecology and the United States Coast Guard Captain of the port of Puget Sound, or their designees, serve as ex officio members. The commission is required to meet at least quarterly.
Members of the commission are nominated and elected by companies within the business class a member represents. Election is by secret mail ballot and is done under the supervision of the Director of the Department of Ecology. The commission is required to provide the director with a list of companies eligible to vote and to reimburse the director for all election costs.
The commission is empowered to: (1) establish an oil spill first response system which provides a mandatory emergency response communications network and, in the event of an oil spill or threat of a spill, provide and pay for the first 24 hours of response; (2) assess vessels transiting state waters; (3) enter into contracts with cleanup contractors to provide spill response; (4) recover oil spill first response system costs from a responsible vessel owner; (5) develop an oil spill contingency plan; (6) hold response readiness drills; (7) expend funds for commission-related education and training; (8) investigate violations; (9) borrow money; (10) hire and discharge staff and consultants; (11) incur expenses, enter into contracts and create liabilities necessary to the administration and enforcement of their responsibilities.
On or after October 1, 1990 the commission is required to levy an assessment on all vessels transiting state waters plus annual increases. The amount of the assessment is set by the commission. Vessels which show proof to the commission or DOE that they have previously arranged for cleanup response with a cooperative or private cleanup contract are exempt from the assessment. When the fund reaches $1.5 million, the assessment is discontinued until the fund drops to $1 million, at which time the assessment is reinstated. Increases in the assessment can occur after proper regulatory hearings and a finding of necessity. The commission may prescribe by rule the method of collection for the assessment or recovery of oil spill first response system costs.
If a vessel owner fails to remit any assessment or cleanup costs, the sum plus penalties are a lien on the vessel.
Vessel owners, operators or agents are required to keep accurate records of all vessel transits. Such records must be preserved for a period of two years and are subject to inspection upon demand.
The commission must elect a manager (who is not a member) and appoint a secretary and/or treasurer who is responsible for all moneys received by the commission. The treasurer is bonded in the amount of $100,000.
Rules and orders by the commission are filed with the director of DOE and are adopted pursuant to the Administrative Procedure Act.
The liability of the commission is limited to the commission itself and its assets. No liability for the debts or actions of the commission exists against the state, commission members or agents individually.
A violation of the provisions of the act is subject to a civil penalty of not more than $1,000.
The commission is authorized to issue bonds or obtain loans secured by commission funds derived from membership assessment. Bonds issued and loans obtained are subject to certification by the treasurer that sufficient moneys are available for this purpose and that there will be an adequate balance in the fund to pay bond issuance and retirement and loan repayment costs.
The provisions of the act take effect July 1, 1990 except for the requirement to develop an oil spill first response system which takes effect January 1, 1991.
EFFECT OF PROPOSED SUBSTITUTE:
An additional public member is appointed to the Maritime Commission. The responsibility for appointing public members is changed from the commission members to the Governor. Maritime, marine labor, marine spill cleanup, or marine environmental experience is required for appointment as a public member.
A steamship pilot who operates in Washington waters is added as a nonvoting member of the commission.
The assessment levied by the commission must generate the maximum fund level of $1.5 million within four years.
The provisions on promotional printing are removed.
Unnecessary language regarding the liability of the commission is deleted.
Appropriation: none
Revenue: none
Fiscal Note: requested January 30, 1990
Effective Date:July 1, 1990; January 1, 1991
Senate Committee - Testified: Randy Ray, PSSOA; Hay Schuyler, SeaLand Services; Bruce Wishert, Sierra Club; John Ballentine, Commission for Oil Pollution Prevention; Steve Hunter, Department of Ecology