Summary of Senate Bill 861 (2014) and the Emergency Regulations Needed to Implement This Bill August 2014

Senate Bill 861 Chaptered June 20, 2014; “shall take effect immediately”. [Sec 195 of bill] Modeled from OSPR’s successful marine oil spill program. – Contingency Plans – Financial Responsibility – Drills & Exercises – Rating of Cleanup Contractors – Response Funding

SB 861 Applicability/Scope Applies where there is a threat of an oil spill to state surface waters. (not ground water) Applies to: – Pipelines – Oil Wells / Production Facilities – Railroads – Vehicles that transfer oil over water – Tank ships / Large Ships (over 300 gross tons)

Regulations to Implement SB 861 OSPR must adopt and implement regulations governing the adequacy of oil spill contingency plans, and financial responsibility. Regulations to implement SB 861 are deemed to be an emergency; additionally they are exempt from OAL review for 1 year. Workgroups formed to get input; draft language will be developed this fall.

Contingency Plans Basics – Written, signed – Spill Reporting procedures – List of Contacts to call – Qualified Individual – Agent for service of process – Use of recognized incident command system – Drills & Spill response training

Contingency Plans Standards OSPR must set for Plans – Must ensure best achievable protection – Based on Worst Case Spill Volume – Standards for response, containment, cleanup – Equipment types, location (response area), & time to deliver – Contractual arrangements for equipment & services – Use of Rated OSRO (by Jan 2016 for inland) – Strategies to protect environmentally sensitive areas

Financial Responsibility Demonstrate financial resources to pay for spill response & damages. Based on reasonable worst case spill volume. Methods include – Insurance – Surety Bond – Letter of Credit – Guaranty – Self-insurance

Rated Oil Spill Response Organizations Cleanup Contractors may apply to OSPR for a rating of response capabilities. Ratings based on: – Geographic regions (response areas) where the OSRO intends to operate. – Timeframes for response resources to be on-scene and deployed. – Type of equipment the OSRO will use and the location of the stored equipment. – Volume of oil that the OSRO is capable of recovering, containing and storing.

Drills Must “implement activities relating to oil spill response, including drills and preparedness and oil spill containment and cleanup” Must “periodically carry out announced and unannounced drills to test response and cleanup operations, equipment, contingency plans, and procedures” Must “establish performance standards that each operator and rated OSRO shall meet during the drills” Contingency plan must “provide for training and drills on elements of the plan at least annually, with all elements of the plan subject to a drill at least once every three years”

Questions? Joy Lavin-Jones Regulations Analyst