BILL NUMBER: SB 849 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 11, 2002
AMENDED IN SENATE APRIL 4, 2001
INTRODUCED BY Senator Torlakson
FEBRUARY 23, 2001
An act to amend Section 8670.40 of the Government Code,
relating An act to amend Sections 8670.37.58, 8670.40,
8670.54, and 8670.55 of, and to amend and repeal Section 8670.37.58
of, the Government Code, relating to oil spills.
LEGISLATIVE COUNSEL'S DIGEST
SB 849, as amended, Torlakson. Oil spills: fees.
Existing
(1) Existing law, the Lempert-Keene-Seastrand Oil Spill
Prevention and Response Act, establishes in state government the
office of administrator for oil spill response and requires the
administrator to adopt and implement regulations and guidelines
governing the adequacy of oil spill contingency plans. A knowing
violation of the act is a misdemeanor.
Existing law prohibits a nontank vessel, as defined, that is
required to have a contingency plan, from entering the marine waters
of the state unless the nontank vessel owner or operator provides to
the administrator evidence of financial responsibility that
demonstrates, to the administrator's satisfaction, the ability to pay
at least $300,000,000 to cover damages caused by a spill, and the
owner or operator of the nontank vessel has obtains a certificate of
financial responsibility from the administrator for the nontank
vessel. The administrator is authorized to charge the owner or
operator a reasonable fee to reimburse specified costs for processing
that application. However, until January 1, 2003, the administrator
is authorized to establish a lower standard of financial
responsibility for a nontank vessel that has a carrying capacity of
6,500 barrels of oil or less, or a nontank vessel that is owned and
operated by California or a federal agency and has a carrying
capacity of 7,500 barrels of oil or less.
This bill would delete the expiration date on the authority of the
administrator to establish a lower standard of financial
responsibility for the specified nontank vessels.
The bill would authorize the administrator to charge a nontank
vessel owner or operator a reasonable fee for each application to
obtain a certificate of financial responsibility in an amount based
upon the administrator's costs in implementing this requirement, but
not more than $2,500. The administrator would be required, on and
after January 1, 2004, to adjust the fee amount for inflation, as
specified. The administrator would be authorized to reduce the
amount of the application fee for a nontank vessel, if the
administrator determines that the vessel poses a reduced risk of
pollution. The administrator would be required to deposit the
revenue derived from imposition of the specified fee in the Oil Spill
Prevention and Administration Fund, and the revenue would be
available, upon appropriation, for certain purposes relating to oil
spill prevention and administration.
(2) Existing law requires the administrator for oil spill
response to adopt and implement regulations and guidelines governing
the adequacy of oil spill contingency plans. Existing law requires
the State Board of Equalization to collect an oil spill prevention
and administration fee which is imposed upon every person owning
crude oil at the time that the crude oil is received at a marine
terminal, in an amount determined by the administrator for oil spill
response, not to exceed 4
per barrel of crude oil or petroleum products. Under existing law,
the revenues from the oil spill prevention and administration fee are
deposited in the Oil Spill Prevention and Administration Fund in the
State Treasury. Existing law provides that the money in the fund is
available for appropriation by the Legislature and may only be used
for the purposes of the act and the provisions governing oil spill
prevention and response. t Existing law requires the
administrator, on or before January 15, to prepare a plan annually
that projects revenues and expenses over 3 fiscal years, including
the current year. Existing law requires the administrator to set the
fee based on the plan.
This bill would increase the amount of the fee that the
administrator is authorized to impose, for calendar year
2002, to 6
from January 1, 2003, until and including December 31
2003, to 5
for each barrel of crude oil or petroleum products. The bill
would authorize the administrator, on and after January 1,
2003 2004 , to adjust the fee for inflation
the amount of the annual assessment based upon changes in the
California Consumer Price Index, pursuant to a specified procedure.
The bill would change the date by which the administrator is
required to prepare the plan to January 20.
Since a failure to pay the fees imposed by the bill would be a
crime, the bill would impose a state-mandated local program.
(3) Existing law establishes the Oil Spill Technical Advisory
Committee to provide public input and independent judgment of the
actions of the administrator and the State Interagency Oil Spill
Committee. The committee is required to consist of 9 members, of
whom 5 are required to be appointed by the Governor, 2 by the Speaker
of the Assembly, and 2 by the Senate Committee on Rules, as
specified. The committee is required to report annually to the
Governor and the Legislature on its evaluation of oil spill response
and preparedness programs within the state.
This bill would increase the membership of the committee by 1
member, who would be appointed by the Governor and would be required
to have a demonstrable knowledge of the dry cargo vessel industry.
The bill would require the committee to report biennially, instead
of annually, to the Legislature and the Governor. The bill would
require the committee, by January 1, 2005, to prepare and submit to
the Governor and the Legislature a report on the financial basis and
programmatic effectiveness of the state's oil spill response program.
(4) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8670.37.58 of the Government Code, as
added by Section 35 of Chapter 748 of the Statutes of 2001, is
amended to read:
8670.37.58. (a) A nontank vessel , required to
have a contingency plan pursuant to this chapter , shall
may not enter marine waters of the state unless
the nontank vessel owner or operator has provided to the
administrator evidence of financial responsibility that demonstrates,
to the administrator's satisfaction, the ability to pay at least
three hundred million dollars ($300,000,000) to cover damages caused
by a spill, and the owner or operator of the nontank vessel has
obtained a certificate of financial responsibility from the
administrator for the nontank vessel. The administrator may
charge a nontank vessel owner or operator a reasonable fee to
reimburse costs to verify and process an application for evidence of
financial responsibility.
(b) Notwithstanding subdivision (a), the administrator may
establish a lower standard of financial responsibility for a nontank
vessel that has a carrying capacity of 6,500 barrels of oil or less,
or , if the for a nontank vessel
that is owned and operated by California or a federal agency
, and has a carrying capacity of 7,500
barrels of oil or less. The standard shall be based upon the
quantity of oil that can be carried by the nontank vessel and the
risk of an oil spill into marine waters. The administrator shall not
set a standard that is less than the expected cleanup costs and
damages from an oil spill into marine waters.
(c) (1) The administrator may charge a nontank vessel owner
or operator a reasonable fee for each application to obtain a
certificate of financial responsibility, in an amount based upon the
administrators costs in implementing this section, but not more than
two thousand five hundred dollars ($2,500), for each application.
(2) On and after January 1, 2004, the administrator shall adjust
the amount of the fee set pursuant to paragraph (1) for inflation,
using the same process prescribed under subdivision (a) of Section
8670.40.
(3) The administrator may reduce the amount of the fee charged for
an application for a nontank vessel, if the administrator determines
that the vessel poses a reduced risk of pollution, including, but
not limited to, vessels used for research or training and vessels
that are moored permanently or are rarely moved.
(4) The administrator shall deposit all revenue derived from the
fee imposed under this subdivision in the Oil Spill Prevention and
Administration Fund created in the State Treasury pursuant to Section
8670.38.
(d) The administrator may adopt regulations to implement
this section.
(d) This section shall remain in effect only until January 1,
2003, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2003, deletes or extends
that date.
SEC. 2. Section 8670.37.58 of the Government Code, as added by
Section 36 of Chapter 748 of the Statutes of 2001, is repealed.
8670.37.58. (a) A nontank vessel, required to have a contingency
plan pursuant to this chapter, shall not enter marine waters of the
state unless the nontank vessel owner or operator has provided to the
administrator evidence of financial responsibility that
demonstrates, to the administrator's satisfaction, the ability to pay
at least three hundred million dollars ($300,000,000) to cover
damages caused by a spill, and the owner or operator of the nontank
vessel has obtained a certificate of financial responsibility from
the administrator for the nontank vessel. The administrator may
charge a nontank vessel owner or operator a reasonable fee to
reimburse costs to verify and process an application for evidence of
financial responsibility.
(b) The administrator may adopt regulations to implement this
section.
(c) This section shall become operative on January 1, 2003.
SEC. 3. Section 8670.40 of the Government Code is amended to
read:
8670.40. (a) (1) 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. Except as provided in paragraph (2), for calendar
year 2002, the amount of the annual assessment shall not exceed six
cents ($0.06) per barrel of crude oil or petroleum products.
(2) On and after January 1, 2003, the administrator may adjust
a reasonable reserve for contingencies. On and after
January 1, 2003, and until and including December 31, 2003, the
amount of the annual assessment may not exceed five cents ($0.05) per
barrel of crude oil or petroleum products. On and after January 1,
2004, the administrator may adjust the amount of the annual
assessment imposed pursuant to this section based upon the
for inflation, measured by the changes in the
California Consumer Price Index, as determined annually by the
Department of Finance and published in the budget submitted
to the Legislature by the Governor. The administrator shall adjust
the annual assessment by multiplying the amount of the prior year's
annual assessment by the current year's California Consumer Price
Index and dividing that amount by the prior year's California
Consumer Price Index. The administrator shall round that amount of
the annual assessment so determined to the nearest one-tenth of a
cent and may impose that new assessment amount on or after July 1 of
the current year when the recalculation is made .
(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.
(f) The moneys deposited in the fund shall not be used for
responding to an oil spill.
SEC. 4. Section 8670.54 of the Government Code is amended to read:
8670.54. (a) The Oil Spill Technical Advisory Committee,
hereafter in this article the committee, is hereby established to
provide public input and independent judgment of the actions of the
administrator and the State Interagency Oil Spill Committee. The
committee shall consist of nine ten
members, of whom five six shall be
appointed by the Governor, two by the Speaker of the Assembly, and
two by the Senate Rules Committee. The appointments shall be made in
the following manner:
(1) The Speaker of the Assembly, and Senate Rules Committee shall
each appoint members who shall be representatives of the public.
(2) The Governor shall appoint a member who has a demonstrable
knowledge of marine transportation.
(3) The Speaker of the Assembly and the Senate Rules Committee
shall each appoint a member who has demonstrable knowledge of
environmental protection and the study of ecosystems.
(4) The Governor shall appoint a member who has served as a local
government elected official or who has worked for a local government.
(5) The Governor shall appoint a member who has experience in oil
spill response and prevention programs.
(6) The Governor shall appoint a member who has been employed in
the petroleum industry.
(7) The Governor shall appoint a member who has worked in state
government.
(8) The Governor shall appoint a member who has demonstrable
knowledge of the dry cargo vessel industry.
(b) The committee shall meet as often as required, but at least
twice per year. Members shall be paid one hundred dollars ($100) per
day for each meeting and all necessary travel expenses at state per
diem rates.
(c) The administrator and any personnel the administrator
determines to be appropriate shall serve as staff to the committee.
(d) A chairman and vice chairman shall be elected by a majority
vote of the committee.
SEC. 5. Section 8670.55 of the Government Code is amended to read:
8670.55. (a) The committee shall provide recommendations to the
administrator, the State Lands Commission, the California Coastal
Commission, the San Francisco Bay Conservation and Development
Commission, and the State Interagency Oil Spill Committee, on any
provision of this chapter including the promulgation of all rules,
regulations, guidelines, and policies.
(b) The committee may, at its own discretion, study, comment on,
or evaluate, any aspect of oil spill prevention and response in the
state. To the greatest extent possible, these studies shall be
coordinated with studies being done by the federal government, the
administrator, the State Lands Commission, the State Water Resources
Control Board, and other appropriate state and international
entities. Duplication with the efforts of other entities shall be
minimized.
(c) The committee may attend any drills called pursuant to Section
8601.10 or any oil spills, if practicable.
(d) The committee shall report annually
biennially to the Governor and the Legislature on
their its evaluation of oil spill response and
preparedness programs within the state annually
and may prepare and send any additional reports they
determine it determines to be appropriate to the
Governor and the Legislature.
(e) On or before January 1, 2005, the committee shall prepare and
submit to the Governor and the Legislature a detailed report on the
financial basis and programmatic effectiveness of the state's oil
spill response and preparedness program. This report shall include
an analysis of all of the oil spill response and preparedness program'
s major expenditures, fees and fines collected, staffing and
equipment levels, spills responded to, and other relevant issues.
The report shall recommend measures to improve the efficiency and
effectiveness of the state's oil spill response and preparedness
program, including, but not limited to, measures to modify existing
contingency plan requirements, to improve protection of sensitive
shoreline sites, and to ensure adequate and equitable funding for the
state's oil spill response and preparedness program.
SEC. 6. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.