BILL NUMBER: AB 2083 CHAPTERED
BILL TEXT
CHAPTER 512
FILED WITH SECRETARY OF STATE SEPTEMBER 12, 2002
APPROVED BY GOVERNOR SEPTEMBER 12, 2002
PASSED THE ASSEMBLY AUGUST 23, 2002
PASSED THE SENATE AUGUST 21, 2002
AMENDED IN SENATE AUGUST 20, 2002
AMENDED IN SENATE AUGUST 8, 2002
AMENDED IN SENATE AUGUST 5, 2002
AMENDED IN SENATE JUNE 17, 2002
AMENDED IN ASSEMBLY APRIL 29, 2002
AMENDED IN ASSEMBLY APRIL 10, 2002
INTRODUCED BY Assembly Member Jackson
(Principal coauthor: Assembly Member Koretz)
(Coauthors: Assembly Members Alquist, Cohn, and Simitian)
FEBRUARY 19, 2002
An act to amend Section 8670.40 of the Government Code, and to add
and repeal Division 7.9 (commencing with Section 8780) of the Public
Resources Code, relating to public resources.
LEGISLATIVE COUNSEL'S DIGEST
AB 2083, Jackson. Public resources: oil spill prevention and
response.
Existing law establishes oil spill prevention, inspection,
response, containment, and cleanup programs.
This bill would require the State Lands Commission to develop a
form that is to be completed by the responsible party, as defined,
engaged in the internal shipment of oil. The form would be designed
to enable the commission to obtain and track the amount and type of
oil transported, as well as the name of the vessel, the vessel's
route, and air emissions relating to the internal shipment of that
oil.
The bill would require the commission, on or before April 1 of
each year, for the calendar years 2004 to 2009, inclusive, to file a
report with the Legislature summarizing certain information and
transmit a copy of the report to any interested agency or member of
the public, upon request.
The bill would require the commission to consult with the
administrator for oil spill response, other state agencies, and
agencies of the federal government, including the United States Coast
Guard and the federal Department of Transportation, to the maximum
extent feasible, before undertaking actions under these provisions.
The bill would require the administrator to reimburse the
commission for the costs of administering these provisions from the
Oil Spill Prevention and Administration Fund.
These provisions would be repealed on January 1, 2010.
The bill would incorporate additional changes to Section 8670.40
of the Government Code proposed by SB 849, to be operative only if SB
849 and this bill are both chaptered and become effective on or
before January 1, 2003, and this bill is chaptered last.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8670.40 of the Government Code is amended to
read:
8670.40. (a) The State Board of Equalization shall collect a fee
in an amount determined by the administrator to be sufficient to
carry out the purposes set forth in subdivision (e), and a reasonable
reserve for contingencies. The amount of the annual assessment
shall not exceed four cents ($0.04) per barrel of crude oil or
petroleum products.
(b) (1) The oil spill prevention and administration fee shall be
imposed upon every person owning crude oil at the time that the crude
oil is received at a marine terminal from within or outside the
state, and upon every person owning petroleum products at the time
that those petroleum products are received at a marine terminal from
outside this state. The fee shall be collected by the marine
terminal operator from the owner of the crude oil or petroleum
products based on each barrel of crude oil or petroleum products so
received by means of a vessel operating in, through, or across the
marine waters of the state. In addition, every operator of a
pipeline shall pay the oil spill prevention and administration fee
for each barrel of crude oil originating from a production facility
in marine waters and transported in the state by means of a pipeline
operating across, under, or through the marine waters of the state.
The fees shall be remitted to the board by the terminal or pipeline
operator on the 25th day of the month based upon the number of
barrels of crude oil or petroleum products received at a marine
terminal or transported by pipeline during the preceding month. No
fee shall be imposed pursuant to this section with respect to any
crude oil or petroleum products if the person who would be liable for
that fee, or responsible for its collection, establishes that the
fee has been collected by a terminal operator registered under this
chapter or paid to the board with respect to the crude oil or
petroleum product.
(2) Every owner of crude oil or petroleum products is liable for
the fee until it has been paid to the board, except that payment to a
marine terminal operator registered under this chapter is sufficient
to relieve the owner from further liability for the fee.
(3) On or before January 15, the administrator shall annually
prepare a plan that projects revenues and expenses over three fiscal
years, including the current year. Based on the plan, the
administrator shall set the fee so that projected revenues, including
any interest, are equivalent to expenses as reflected in the current
Budget Act and in the proposed budget submitted by the Governor. In
setting the fee, the administrator may allow for a surplus if the
administrator finds that revenues will be exhausted during the period
covered by the plan or that the surplus is necessary to cover
possible contingencies.
(c) The moneys collected pursuant to subdivision (a) shall be
deposited into the fund.
(d) The board shall collect the fee and adopt regulations for
implementing the fee collection program.
(e) The fee described in this section shall be collected solely
for all of the following purposes:
(1) To implement oil spill prevention programs through rules,
regulations, leasing policies, guidelines, and inspections and to
implement research into prevention and control technology.
(2) To carry out studies which may lead to improved oil spill
prevention and response.
(3) To finance environmental and economic studies relating to the
effects of oil spills.
(4) To reimburse the member agencies of the State Interagency Oil
Spill Committee for costs arising from implementation of this
chapter, Article 3.5 (commencing with Section 8574.1) of Chapter 7,
and Division 7.8 (commencing with Section 8750) of the Public
Resources Code.
(5) To implement, install, and maintain emergency programs,
equipment, and facilities to respond to, contain, and clean up oil
spills and to ensure that those operations will be carried out as
intended.
(6) To respond to an imminent threat of a spill in accordance with
the provisions of Section 8670.62 pertaining to threatened
discharges. The cumulative amount of any expenditure for this
purpose shall not exceed the amount of one hundred thousand dollars
($100,000) in any fiscal year unless the administrator receives the
approval of the Director of Finance and notification is given to the
Joint Legislative Budget Committee. Commencing with the 1993-94
fiscal year, and each fiscal year thereafter, it is the intent of the
Legislature that the annual Budget Act contain an appropriation of
one hundred thousand dollars ($100,000) from the fund for the purpose
of allowing the administrator to respond to threatened oil spills.
(7) To reimburse the board for costs incurred to implement this
chapter and to carry out the provisions of Part 24 (commencing with
Section 46001) of Division 2 of the Revenue and Taxation Code.
(8) To reimburse the costs incurred by the State Lands Commission
in implementing the Oil Transfer and Transportation Emission and Risk
Reduction Act of 2002 (Division 9 (commencing with Section 8780) of
the Public Resources Code).
(f) The moneys deposited in the fund shall not be used for
responding to an oil spill.
SEC. 1.5. Section 8670.40 of the Government Code is amended to
read:
8670.40. (a) The State Board of Equalization shall collect a fee
in an amount determined by the administrator to be sufficient to
carry out the purposes set forth in subdivision (e), and a reasonable
reserve for contingencies. The annual assessment may not exceed
five cents ($0.05) per barrel of crude oil or petroleum products.
(b) (1) The oil spill prevention and administration fee shall be
imposed upon every person owning crude oil at the time that the crude
oil is received at a marine terminal from within or outside the
state, and upon every person owning petroleum products at the time
that those petroleum products are received at a marine terminal from
outside this state. The fee shall be collected by the marine
terminal operator from the owner of the crude oil or petroleum
products based on each barrel of crude oil or petroleum products so
received by means of a vessel operating in, through, or across the
marine waters of the state. In addition, every operator of a
pipeline shall pay the oil spill prevention and administration fee
for each barrel of crude oil originating from a production facility
in marine waters and transported in the state by means of a pipeline
operating across, under, or through the marine waters of the state.
The fees shall be remitted to the board by the terminal or pipeline
operator on the 25th day of the month based upon the number of
barrels of crude oil or petroleum products received at a marine
terminal or transported by pipeline during the preceding month. No
fee shall be imposed pursuant to this section with respect to any
crude oil or petroleum products if the person who would be liable for
that fee, or responsible for its collection, establishes that the
fee has been collected by a terminal operator registered under this
chapter or paid to the board with respect to the crude oil or
petroleum product.
(2) Every owner of crude oil or petroleum products is liable for
the fee until it has been paid to the board, except that payment to a
marine terminal operator registered under this chapter is sufficient
to relieve the owner from further liability for the fee.
(3) On or before January 20, the administrator shall annually
prepare a plan that projects revenues and expenses over three fiscal
years, including the current year. Based on the plan, the
administrator shall set the fee so that projected revenues, including
any interest, are equivalent to expenses as reflected in the current
Budget Act and in the proposed budget submitted by the Governor. In
setting the fee, the administrator may allow for a surplus if the
administrator finds that revenues will be exhausted during the period
covered by the plan or that the surplus is necessary to cover
possible contingencies.
(c) The moneys collected pursuant to subdivision (a) shall be
deposited into the fund.
(d) The board shall collect the fee and adopt regulations for
implementing the fee collection program.
(e) The fee described in this section shall be collected solely
for all of the following purposes:
(1) To implement oil spill prevention programs through rules,
regulations, leasing policies, guidelines, and inspections and to
implement research into prevention and control technology.
(2) To carry out studies that may lead to improved oil spill
prevention and response.
(3) To finance environmental and economic studies relating to the
effects of oil spills.
(4) To reimburse the member agencies of the State Interagency Oil
Spill Committee for costs arising from implementation of this
chapter, Article 3.5 (commencing with Section 8574.1) of Chapter 7,
and Division 7.8 (commencing with Section 8750) of the Public
Resources Code.
(5) To implement, install, and maintain emergency programs,
equipment, and facilities to respond to, contain, and clean up oil
spills and to ensure that those operations will be carried out as
intended.
(6) To respond to an imminent threat of a spill in accordance with
the provisions of Section 8670.62 pertaining to threatened
discharges. The cumulative amount of any expenditure for this
purpose shall not exceed the amount of one hundred thousand dollars
($100,000) in any fiscal year unless the administrator receives the
approval of the Director of Finance and notification is given to the
Joint Legislative Budget Committee. Commencing with the 1993-94
fiscal year, and each fiscal year thereafter, it is the intent of the
Legislature that the annual Budget Act contain an appropriation of
one hundred thousand dollars ($100,000) from the fund for the purpose
of allowing the administrator to respond to threatened oil spills.
(7) To reimburse the board for costs incurred to implement this
chapter and to carry out Part 24 (commencing with Section 46001) of
Division 2 of the Revenue and Taxation Code.
(8) To reimburse the costs incurred by the State Lands Commission
in implementing the Oil Transfer and Transportation Emission and Risk
Reduction Act of 2002 (Division 9 (commencing with Section 8780) of
the Public Resources Code).
(f) The moneys deposited in the fund shall not be used for
responding to an oil spill.
SEC. 2. Division 7.9 (commencing with Section 8780) is added to
the Public Resources Code, to read:
DIVISION 7.9. OIL TRANSFER AND TRANSPORTATION EMISSION AND
RISK REDUCTION ACT OF 2002
8780. This division shall be known and may be cited as the Oil
Transfer and Transportation Emission and Risk Reduction Act of 2002.
8781. The Legislature finds and declares all of the following:
(a) Thirty years ago the people of California passed the
California Coastal Zone and Conservation Act of 1972 after a
disastrous oil spill that affected hundreds of miles of coast and
severely affected the coastal economy.
(b) A clean and healthy coastal environment is critical to
maintaining a vibrant coastal economy, including opportunities for
sustainable fisheries, flourishing tourism, and healthy recreation.
(c) The coastal communities contribute billions of dollars and
hundreds of thousands of jobs to the state economy.
(d) Much of the oil extracted off California's coast is highly
viscous, the refining of which results in heavy byproducts such as
fuel oil and coke, which tend to be shipped to overseas markets. The
storage and shipment of such byproducts will also have air quality
impacts.
(e) There is significant internal shipment of oil by vessel
between the San Francisco Bay area and the Los Angeles area.
(f) Although vessels transporting oil are eventually required to
be double hulled, this will not be completed until January 1, 2015.
(g) The thousands of sea birds that have been injured or killed in
2001 and 2002 by oil leaking from a freighter that sank off
California's coast in 1953 are a strong reminder of the serious
consequences of vessel mishaps.
(h) One of the results of vessel traffic along the central coast
and into the ports of the Los Angeles and San Francisco areas is tons
of oxides of nitrogen emitted into the air each day, which could
negate efforts made on land to meet federal ozone standards and other
public health air quality goals.
(i) Current, accessible and accurate data regarding oil
transportation is critical to having adequate information of the
potential environmental quality, public health, and environmental
justice consequences that must be analyzed by state and local
agencies for environmental impact reports and statements, emergency
response planning, permit issuance, and air quality mitigation
efforts.
(j) Tracking trends in internal shipment of oil is necessary to
promote public safety, health, and welfare, and to protect public and
private property, wildlife, marine fisheries, and other ocean
resources, and the natural environment in order to protect and to
preserve the ecological balance of California's coastal zone, coastal
waters, and coastal economy.
8782. Unless the context requires otherwise, the following
definitions govern the construction of this division:
(a) "Administrator" means the administrator for oil spill response
appointed by the Governor under Section 8670.4 of the Government
Code.
(b) "Barge" means any vessel that carries oil in commercial
quantities as cargo but is not equipped with a means of
self-propulsion.
(c) "Commission" means the State Lands Commission.
(d) "Internal shipment of oil" means the loading, transporting by
vessel, and offloading of oil that originates and terminates at the
San Francisco Bay area and the Los Angeles and Long Beach area, or
points in between. Internal shipment of oil does not include
lightering, as defined in paragraph (4) of subdivision (l) of Section
790 of Title 14 of the California Code of Regulations.
(e) "Marine facility" means any facility of any kind, other than a
vessel, that is or was used for the purpose of exploring for,
drilling for, producing, storing, handling, transferring, processing,
refining, or transporting oil and is located in marine waters, or is
located where a discharge could impact marine waters, unless the
facility (1) is subject to Chapter 6.67 (commencing with Section
25270) or Chapter 6.75 (commencing with Section 25299.10) of Division
20 of the Health and Safety Code or (2) is placed on a farm,
nursery, logging site, or construction site and does not exceed
20,000 gallons in a single storage tank. A drill ship,
semisubmersible drilling platform, jack-up type drilling rig, or any
other floating or temporary drilling platform is a "marine facility."
A small craft refueling dock is not a "marine facility."
(f) "Marine terminal" means any facility used for transferring oil
to or from tankers or barges. A marine terminal includes all piping
not integrally connected to a tank facility as defined in
subdivision (k) of Section 25270.2 of the Health and Safety Code.
(g) "Oil" means any kind of petroleum, liquid hydrocarbons, or
petroleum products or any fraction or residues therefrom, including,
but not limited to, crude oil, bunker fuel, gasoline, diesel fuel,
aviation fuel, oil sludge, oil refuse, oil mixed with waste, and
liquid distillates from unprocessed natural gas.
(h) "Operator," when used in connection with a vessel means any
person or entity that owns, has an ownership interest in, charters,
leases, rents, operates, participates in the operation of, or uses,
that vessel.
(i) "Person" means an individual, trust, firm, joint stock
company, or corporation, including, but not limited to, a government
corporation, partnership, or association. "Person" also includes any
city, county, city and county, district, commission, the state or
any department, agency, or political subdivision thereof, and the
federal government or any department or agency thereof to the extent
permitted by law.
(j) "Responsible party" or "party responsible" means the
"Responsible party" or "Party responsible" means the owner of the oil
or a person or entity who accepts responsibility for the oil for
purposes of this division.
(k) "Tanker" means any self-propelled, waterborne vessel,
constructed or adapted for the carriage of oil in bulk or in
commercial quantities as cargo.
(l) "Vessel" means a tanker or barge as defined in this section.
8783. (a) The commission shall develop a form that is to be
completed by the responsible party engaged in the internal shipment
of oil. The form shall be known as the "Oil Transfer and
Transportation Emission and Risk Reduction Form." The form shall be
designed to enable the commission to obtain and track the amount and
type of oil transported, as well as the name of the vessel, the
vessel's route, and air emissions relating to the internal shipment
of that oil.
(b) The form shall contain, but need not be limited to, all of the
following information:
(1) The name, address, point of contact, and telephone number of
the responsible party.
(2) The name of the vessel transporting the oil.
(3) The type and amount of oil being transported.
(4) The source of crude oil.
(5) The name and location of any terminal that loaded the vessel.
(6) The name and location of any terminal that discharged the
tanker or barge.
(7) The dates of travel and the route.
(8) The type of engine and fuel used to power the tanker or
barge-towing vessel.
(9) The estimated amount and type of air emissions. To the extent
practicable, the emissions factors developed by the United States
Environmental Protection Agency shall be used to estimate the amount
of air emissions. The form shall be designed to ensure that charter
vessel air emissions are not counted more than once.
(10) An indication of whether the reason for the internal shipping
of oil was due to a temporary shutdown or partial shutdown of a key
refinery facility.
(11) On and after January 1, 2004, if Division 36 (commencing with
Section 71200) is repealed pursuant to Section 71271, the amount of
any ballast discharge and the location of the discharge.
(c) The form shall be filed with the commission on a quarterly
basis by the responsible party engaged in the internal shipment of
oil for the activities of the preceding quarter.
(d) In developing the form and the reporting process, the
commission shall consult with the interested parties including
operators, responsible parties, and the International Maritime
Organization.
8784. (a) On or before April 1 of each year, for the calendar
years 2004 to 2009, inclusive, the commission shall file a report
with the Legislature summarizing the information and including all of
the following:
(1) A description of any trends in the total number of trips by
oil type, amount of shipment, and source of oil.
(2) The number of transfers due to refinery shutdowns.
(3) The location of air emissions and ballast discharge, and the
type of vessel used during those events.
(4) A discussion of any other pertinent issues that the commission
determines should be included.
(b) The commission shall transmit a copy of the report to any
interested agency or member of the public, upon request.
8785. The commission shall consult with the administrator, other
state agencies, and agencies of the federal government, including,
but not limited to, the United States Coast Guard and the federal
Department of Transportation, to the maximum extent feasible, before
undertaking actions under this division.
8786. The administrator shall reimburse the commission for the
costs of administering this division from the Oil Spill Prevention
and Administration Fund, pursuant to paragraph (8) of subdivision (e)
of Section 8670.40 of the Government Code.
8787. This division applies to all terminals, pipelines, vessels,
and activities in the state, whether on lands that have been granted
by the Legislature to local governments or on lands that remain
ungranted.
8788. Any information collected under this division for the
purpose of explaining why oil was transferred shall be kept
confidential and reported only in the aggregate by the commission, in
a manner that protects the competitive nature of the information.
8789. This division shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2010, deletes or extends
that date.
SEC. 3. Section 1.5 of this bill incorporates amendments to
Section 8670.40 of the Government Code proposed by both this bill and
SB 849. It shall only become operative if (1) both bills are
enacted and become effective on or before January 1, 2003, (2) each
bill amends Section 8670.40 of the Government Code, and (3) this bill
is enacted after SB 849, in which case Section 1 of this bill shall
not become operative.