Washington's Legislative Response to the "Deepwater Horizon" Wellhead Blowout
The Washington State House of Representatives is considering Engrossed Second Substitute House Bill 1186 as a result of the "DEEPWATER HORIZON" wellhead blowout, explosion, and oil spill in the Gulf of Mexico. The Bill is in response to any potential threat of a major spill to Washington's environment and lessons learned from the spill in the Gulf of Mexico. House Bill 1186 undertakes to amend RCW 88.46.060, 88.46.100, 88.46.090, 90.48.366, and 90.56.370, reenacting and amending our 46.10.010, adding new sections to Chapter 88.46 RCW.
Of particular interest is the addition of “vessels of opportunity response system” as defined in Section 2(27), a fleet of non-dedicated commercial vessels and crew under contract with and equipped by contingency plan holders to assist with oil spill response activities; Section 2(28) defines “regional vessels of opportunity response group”; Section 2(29) “Volunteer coordination system”; and Section 2(30) “Umbrella plan holder”.
New Section 3 requires the owner or operator of a tank vessel to establish or fund a vessel of opportunity response system with a sufficient number of participating vessels, at least six capable participating vessels are required to have best achievable technology for booming storage and recovery of oil with response equipment readily available to the individual vessels. The contingency plans for a tank vessel operating in Washington waters must provide for the organization and contracting of a vessel of opportunity response system to be fulfilled by one or more private organizations, non-profit corporations providing umbrella coverage under contract to single or multiple tank vessels. Each original vessel of opportunity response group must undergo a minimum of two drills a year with a planning goal of deploying six capable vessels at any one time.
New Section 4 empowers the Department of Ecology (“DOE”) to establish a volunteer coordination system as part Washington’s overall oil spill response strategy; empowering local governments to receive, screen and register volunteers who will be exempt from liability, except in the instance of gross negligence or willful and wanton misconduct.
New Section 5 sets forth provisions for rapid access to oil spill response and oil spill response equipment located within the State, the capacity for storage and proper disposal of oils.
New Section 6 sets out the department’s responsibility for ordering joint large-scale multiple plan equipment deployment drills of tank vessels every three years.
Old Section 7 has a new provision at (6)(b), whereby the department must notify the plan holder within 65 days of an initial or amended plan submittal to the department, as to whether the plan is disapproved, approved or conditionally approved.
New Section 8 requires that both tank vessels and covered vessels that are not tank vessels must, in addition to satisfying all other requirements of this chapter, specify the maximum worst case discharge volume from covered vessels that are not tank vessels, pursuant to the umbrella plan holders’ contingency plan and the maximum worst case discharge volume from tank vessels pursuant to the umbrella plan holders contingency plan.
Old Section 9 adds, in addition to notifications by the owner or operator of a covered vessel, that in addition to any notifications that the owner or operator of a covered vessel must provide the Coast Guard regarding a vessel emergency, the owner or operator of a covered vessel must notify the State of any vessel emergency that results in the discharge or substantial threat of discharge of oil to State waters, or that may affect the natural resources of the State.
Old Section 10 is revised to authorize the director to assess a civil penalty of $300,000 instead of $100,000 against the owner or operator of a vessel in violation of subsection (1) and (2) of Section 10.
Section 11 has amended the compensation schedule for the discharge of oil in violation of this chapter; for spills totaling 1,000 gallons or more in any one event, no less than $3 instead of $1 per gallon of oil spilled, and no greater than $300 as opposed to $100 per gallon of oil spilled; and for spills totaling less than 1,000 gallons in any one event, no less than $1 per gallon of oil spilled and no greater than $100 per gallon of oil spilled.
Old Section 12 has been amended to include the assessment of damages for which responsible parties are liable under this section to include loss of income, revenue, the means of producing income or revenue, or an economic benefit resulting from an injury or loss of real or personal property or natural resources. Recoverable costs include the costs to collect, investigate, perform surveillance over, remove, contain, treat, or disburse oil discharged into waters of the State.
New Section 13 requires the director of the DOE to formally request that the federal government contribute to establishment of regional oil spill response equipment caches of equipment.
New Section 15 requires all affected vessels to have new contingency plans approved by the DOE or updates to existing contingency plans, in compliance with Sections 3 and 5(3) by January 1, 2013, whereas all other Sections of the proposed Act must be complied with by October 1, 2011.
I believe Substitute House Bill 1186 warrants monitoring in light of some of the changes identified above and the costs to tank and covered vessel operators and owners as well as the potential opportunities opened up to vessel owners and operators to participate in the vessels of opportunity response system.