HOUSE BILL REPORT

SSB 6701

BYSenate Committee on Transportation (originally sponsored by Senators Bluechel, Bender, Sellar, Moore, von Reichbauer, Murray, Smitherman, Conner, Warnke and Lee)

Creating the maritime commission and oil spill response system.

House Committe on Transportation

Majority Report:  Do pass as amended.  (25)

      Signed by Representatives Baugher, Vice Chair, Eastern Washington; R. Meyers, Vice Chair, Western Washington; Schmidt, Ranking Republican Member; Wood, Assistant Ranking Republican Member; Basich, Bennett, Betrozoff, Cooper, Day, G. Fisher, Forner, Gallagher, Hankins, Haugen, Heavey, Jones, Kremen, Nelson, Prentice, Prince, Smith, D. Sommers, Walker, S. Wilson and Zellinsky.

Minority Report:  Do not pass.  (1)

      Signed by Representative R. Fisher, Chair. 

House Staff:Vicki Fabre (786-7313)

AS PASSED HOUSE MARCH 2, 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 that 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 that provide immediate oil spill response, there is no mechanism that provides for a mandatory emergency response communications network and that 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 that 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 nine voting members and four nonvoting, ex officio members who are elected for a three-year term.  The voting members represent steamship liner companies, tow boat companies, fishing vessels, steamship companies serving tramp vessels transiting Puget Sound and the Columbia River, insurers of oil spill cleanup costs for vessels operating in Washington waters, and the public.  The public members are appointed by the governor and must have maritime, marine labor or marine spill cleanup experience, and marine environmental experience.  The director of the Department of Ecology, the United States Coast Guard Captain of the port of Puget Sound, the U.S. Coast Guard Captain of the port of that portion of the Columbia River that runs between the states of Washington and Oregon, and a state-licensed pilot operating in Washington waters 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 that 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; and (11) incur expenses, enter into contracts and create liabilities necessary to the administration and enforcement of their responsibilities.

The development of an oil spill first response system for vessels transiting that portion of the Columbia River that runs between Washington and Oregon is not authorized until July 1, 1992.  The commission is required to develop an oil contingency plan for these vessels by January 1, 1993.

On or after October 1, 1990, the commission is required to levy an assessment on all vessels transiting state waters, with the exception of vessels transiting the Columbia River, plus annual increases.  Assessments for vessels operating on the Columbia River may be levied on or after January 1, 1992.  The amount of the assessment is set by the commission.  Vessels that 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.  The assessment levied by the commission must generate a maximum fund level of $1.5 million within four years.  When the fund reaches the maximum, 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.

Fiscal Note:      Requested January 30, 1990.

Effective Date:The bill takes effect on July 1, 1990, except for section 3 (10), (12), (13), and (15), which shall take effect July 1, 1991.  The effective dates for fee assessments and the establishment of an oil spill response system for vessels transiting on the Columbia River are January 1, 1992, and July 1, 1992, respectively.  The effective date for establishing an oil spill contingency plan for such vessels is January 1, 1993.

House Committee ‑ Testified For:    Randy Ray, Puget Sound Steamship Operators and Northwest Towboat Association; Jon Neel, Department of Ecology; Eric Johnson, Washington Public Ports Association; and Bruce Wishart, Sierra Club.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    The establishment of a mechanism that provides for a mandatory emergency response communications network that will, in the event of an oil spill, provide and pay for oil cleanup in the first 24 hours, is critical to the mitigation of environmental damage.

House Committee - Testimony Against:      None.