BILL NUMBER: AB 2547 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Leno
(Coauthors: Assembly Members Beall, Coto, DeSaulnier, Hancock,
Huffman, Lieber, Mullin, Ruskin, Swanson, Torrico, and Wolk)
FEBRUARY 22, 2008
An act to amend Sections 8670.3, 8670.13, 8670.28, 8670.30,
8670.48, 8670.49, and 8670.55 of, and to add Sections 8670.11 and
8670.74 to, the Government Code, relating to oil spills, and making
an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 2547, as introduced, Leno. Oil spill prevention and response.
The Lempert-Keene-Seastrand Oil Spill Prevention and Response Act
generally requires the administrator for oil split response, acting
at the direction of the Governor, to implement activities relating to
oil spill response, including emergency drills and preparedness, and
oil spill containment and cleanup, and to represent the state in any
coordinated response efforts with the federal government. Existing
law defines "dedicated response resources" and "nondedicated response
resources" for purposes of the act.
Existing law authorizes an oil spill response organization (OSRO),
as defined, to apply to the administrator for a rating of that
organization's response capabilities. Under existing law, upon
receiving and reviewing a completed application, the administrator is
required to rate the organization based on its satisfactory
compliance with specified criteria.
This bill would revise the definition of "dedicated response
resources" to provide that, for the port areas of San Francisco, Los
Angeles/Long Beach and San Diego, "dedicated response resources"
shall additionally mean equipment and personnel permanently located
in each of those areas. The bill would revise the definition of
"nondedicated response resources" to provide that identified response
resources located outside of the state are nondedicated response
resources.
This bill would include as an additional element in rating an OSRO
for compliance with specified criteria, the dedicated response
resources the OSRO controls, as defined, in the area in which it
intends to operate.
The bill would require, instead of authorize, the administrator to
require a rated OSRO to demonstrate that it can deploy the response
resources required to meet the OSRO's oil spill contingency plan. The
bill would also require, instead of authorize, the administrator to
require the satisfactory completion of one unannounced drill of an
OSRO prior to modifying, renewing, or reinstating a rating.
This bill would require the administrator to establish a universal
mutual aid agreement for the purpose of regulating the terms under
which an owner or operator of a vessel or marine facility, or rated
oil spill response organization (OSRO), may use the response
resources of another owner or operator, or rated OSRO.
This bill would require the administrator to award and administer
competitive grants for the development of improved processes and
technologies for oil spill prevention, containment, and cleanup. The
grants shall be known as the California Oil Spill Prevention and
Cleanup Technology Grants and shall provide funds to eligible
recipients for research, testing, and capital matching grants for
bringing emerging technologies to the marketplace. The bill would
require the administrator, beginning January 1, 2010, and every 5
years thereafter, to prepare and make available to the Legislature a
comprehensive evaluation of emerging technologies that aid
prevention, response, containment, cleanup, and wildlife
rehabilitation.
This bill would require the administrator to additionally expend
moneys from the Oil Spill Response Trust Fund, a continuously
appropriated fund for specified purposes, to cover the uncompensated
response and cleanup costs resulting from providing resources through
the use of a universal mutual aid agreement, and to pay for
technology grants, thereby making an appropriation.
This bill would require the administrator to adopt and implement
regulations regarding a mandated minimum containment response
required for oil spills or discharges that occur during low
visibility conditions and for marine groundings, collisions, and
allisions that involve a tank vessel or nontank vessel.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8670.3 of the Government Code is amended to
read:
8670.3. Unless the context requires otherwise, the following
definitions shall govern the construction of this chapter:
(a) "Administrator" means the administrator for oil spill response
appointed by the Governor pursuant to Section 8670.4.
(b) (1) "Best achievable protection" means the highest level of
protection that can be achieved through both the use of the best
achievable technology and those manpower levels, training procedures,
and operational methods that provide the greatest degree of
protection achievable. The administrator's determination of which
measures provide the best achievable protection shall be guided by
the critical need to protect valuable coastal resources and marine
waters, while also considering all of the following:
(A) The protection provided by the measure.
(B) The technological achievability of the measure.
(C) The cost of the measure.
(2) The administrator shall not use a cost-benefit or
cost-effectiveness analysis or any particular method of analysis in
determining which measures provide the best achievable protection.
The administrator shall instead, when determining which measures
provide best achievable protection, give reasonable consideration to
the protection provided by the measures, the technological
achievability of the measures, and the cost of the measures when
establishing the requirements to provide the best achievable
protection for coastal and marine resources.
(c) (1) "Best achievable technology" means that technology that
provides the greatest degree of protection, taking into consideration
both of the following:
(A) Processes that are being developed, or could feasibly be
developed anywhere in the world, given overall reasonable
expenditures on research and development.
(B) Processes that are currently in use anywhere in the world.
(C) This subdivision does not require that a particular technology
shall first be used elsewhere in the world prior to being required
for use or deployment by the administrator.
(2) In determining what is the best achievable technology pursuant
to this chapter, the administrator shall consider the effectiveness
and engineering feasibility of the technology.
(d) (1) "Dedicated response resources" means
equipment and personnel committed solely to oil spill response,
containment, and cleanup that are not used for any other activity
that would adversely affect the ability of that equipment and
personnel to provide oil spill response services in the timeframes
for which the equipment and personnel are rated.
(2) For the port areas of San Francisco, Los Angeles/Long Beach,
and San Diego, "dedicated response resources" shall, in addition to
the other criteria in this subdivision, mean equipment and personnel
permanently located in each of those areas. Personnel may be
characterized as a dedicated resource only when on duty or on call.
On-call personnel may be characterized as a dedicated resource if an
on-call employee is all of the following:
(A) Required to wear a functioning pager or other means of
immediate communication at all times.
(B) Required to remain in close geographic proximity to the OSRO's
facility.
(C) Capable of reporting to the OSRO's facility within 30 minutes
of being contacted.
(D) Required to carry approved work clothing and necessary
identification to access the OSRO's facility or the site of a spill.
(E) Required to maintain the United States Coast Guard fitness for
duty requirements referenced at ____ CFR ____.
(e) "Environmentally sensitive area" means an area defined
pursuant to the applicable area contingency plans, as created and
revised by the Coast Guard and the administrator.
(f) "Local government" means any a
chartered or general law city, a chartered or general law
county, or any a city and county.
(g) (1) "Marine facility" means any facility of any kind, other
than a tank ship or tank barge, that is or was used for the purposes
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 is either of the following:
(A) 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.
(B) Placed on a farm, nursery, logging site, or construction site
and does not exceed 20,000 gallons in a single storage tank.
(2) For the purposes of this chapter, "marine facility" includes a
drill ship, semisubmersible drilling platform, jack-up type drilling
rig, or any other floating or temporary drilling platform.
(3) For the purposes of this chapter, "marine facility" does not
include a small craft refueling dock.
(h) (1) "Marine terminal" means any a
marine facility used for transferring oil to or from a tank
ship or tank barge.
(2) "Marine terminal" includes, for purposes of this chapter, all
piping not integrally connected to a tank facility, as defined in
subdivision ( ) (m)
of Section 25270.2 of the Health and Safety Code.
(i) "Marine waters" means those waters subject to tidal influence,
and includes the waterways used for waterborne commercial vessel
traffic to the Port of Sacramento and the Port of Stockton.
(j) "Mobile transfer unit" means a small marine fueling facility
that is a vehicle, truck, or trailer, including all connecting hoses
and piping, used for the transferring of oil at a location where a
discharge could impact marine waters.
(k) "Nondedicated response resources" means those response
resources identified by an Oil Spill Response Organization for oil
spill response activities that are not dedicated response resources.
Identified response resources located outside of California are
non dedicated response resources.
() "Nonpersistent oil" means a petroleum-based oil, such as
gasoline, diesel, or jet fuel, that evaporates relatively quickly and
is an oil with hydrocarbon fractions, at least 50 percent of which,
by volume, distills at a temperature of 645* Fahrenheit, and at least
95 percent of which, by volume, distills at a temperature of 700*
Fahrenheit.
(m) "Nontank vessel" means a vessel of 300 gross tons or greater
that carries oil, but does not carry that oil as cargo.
(n) "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.
(o) "Oil spill cleanup agent" means a chemical, or any other
substance, used for removing, dispersing, or otherwise cleaning up
oil or any residual products of petroleum in, or on, any of the
waters of the state.
(p) "Oil spill contingency plan" or "contingency plan" means the
oil spill contingency plan required pursuant to Article 5 (commencing
with Section 8670.28).
(q) (1) "Oil Spill Response Organization" or "OSRO" means an
individual, organization, association, cooperative, or other entity
that provides, or intends to provide, equipment, personnel, supplies,
or other services directly related to oil spill containment,
cleanup, or removal activities.
(2) A "rated OSRO" means an OSRO that has received a satisfactory
rating from the administrator for a particular rating level
established pursuant to Section 8670.30.
(3) "OSRO" does not include an owner or operator with an oil spill
contingency plan approved by the administrator or an entity that
only provides spill management services, or who provides services or
equipment that are only ancillary to containment, cleanup, or removal
activities.
(r) "Onshore facility" means any a
facility of any kind which that is
located entirely on lands not covered by marine waters.
(s) (1) "Owner" or "operator" means any of the following:
(A) In the case of a vessel, any a
person who owns, has an ownership interest in, operates, charters by
demise, or leases, the vessel.
(B) In the case of a marine facility, any
a person who owns, has an ownership interest in, or operates
the marine facility.
(C) Except as provided in subparagraph (D), in the case of
any a vessel or marine facility,
where title or control of which was conveyed
due to bankruptcy, foreclosure, tax delinquency, abandonment, or
similar means to an entity of state or local government, any
a person who owned, held an ownership interest
in, operated, or otherwise controlled activities concerning the
vessel or marine facility immediately beforehand.
(D) An entity of the state or local government that acquired
ownership or control of a vessel or marine facility, when the entity
of the state or local government has caused or contributed to a spill
or discharge of oil into marine waters.
(2) "Owner" or "operator" does not include a person who, without
participating in the management of a vessel or marine facility, holds
indicia of ownership primarily to protect his or her
the person's security interest in the vessel or
marine facility.
(3) "Operator" does not include any a
person who owns the land underlying a marine facility or the
facility itself if the person is not involved in the operations of
the facility.
(t) "Person" means any an
individual, trust, firm, joint stock company, or corporation,
including, but not limited to, a government corporation, partnership,
and association. "Person" also includes any
a city, county, city and county, district, and the state or any
department or agency thereof, and the federal government, or any
department or agency thereof, to the extent permitted by law.
(u) "Pipeline" means any a pipeline
used at any time to transport oil.
(v) "Reasonable worst case spill" means, for the purposes of
preparing contingency plans for a nontank vessel, the total volume of
the largest fuel tank on the nontank vessel.
(w) "Responsible party" or "party responsible" means any of the
following:
(1) The owner or transporter of oil or a person or entity
accepting responsibility for the oil.
(2) The owner, operator, or lessee of, or a person
who that charters by demise,
any a vessel or marine facility, or a person or
entity accepting responsibility for the vessel or marine facility.
(x) "Small craft" means any a
vessel, other than a tank ship or tank barge, that is less than 20
meters in length.
(y) "Small craft refueling dock" means a waterside operation that
dispenses only nonpersistent oil in bulk and small amounts of
persistent lubrication oil in containers primarily to small craft and
meets both of the following criteria:
(1) Has tank storage capacity not exceeding 20,000 gallons in any
single storage tank or tank compartment.
(2) Has total usable tank storage capacity not exceeding 75,000
gallons.
(z) "Small marine fueling facility" means either of the following:
(1) A mobile transfer unit.
(2) A fixed facility that is not a marine terminal, that dispenses
primarily nonpersistent oil, that may dispense small amounts of
persistent oil, primarily to small craft, and that meets all of the
following criteria:
(A) Has tank storage capacity greater than 20,000 gallons but not
more than 40,000 gallons in any single storage tank or storage tank
compartment.
(B) Has total usable tank storage capacity not exceeding 75,000
gallons.
(C) Had an annual throughput volume of over-the-water transfers of
oil that did not exceed 3,000,000 gallons during the most recent
preceding 12-month period.
(aa) "Spill" or "discharge" means any a
release of at least one barrel (42 gallons) of oil into marine
waters that is not authorized by any a
federal, state, or local government entity.
(ab) "State Interagency Oil Spill Committee" means the committee
established pursuant to Article 3.5 (commencing with Section 8574.1)
of Chapter 7.
(ac) "California oil spill contingency plan" means the California
oil spill contingency plan prepared pursuant to Article 3.5
(commencing with Section 8574.1) of Chapter 7.
(ad) "Tank barge" means any a vessel
that carries oil in commercial quantities as cargo but is not
equipped with a means of self-propulsion.
(ae) "Tank ship" means any a
self-propelled vessel that is constructed or adapted for the carriage
of oil in bulk or in commercial quantities as cargo.
(af) "Tank vessel" means a tank ship or tank barge.
(ag) "Vessel" means any a watercraft
or ship of any kind, including every a
structure adapted to be navigated from place to place for the
transportation of merchandise or persons.
(ah) "Vessel carrying oil as secondary cargo" means any
a vessel that does not carry oil as a primary
cargo, but does carry oil in bulk as cargo or cargo residue.
SEC. 2. Section 8670.11 is added to the Government Code, to read:
8670.11. (a) The administrator shall establish a universal mutual
aid agreement for the purpose of regulating the terms under which an
owner or operator or rated OSRO may utilize the response resources
of another owner or operator or rated OSRO.
(b) Each owner or operator or rated OSRO shall be subject to the
provisions of the universal mutual aid agreement.
(c) The responsible party shall be liable for all costs incurred
by the administrator and by the owner or operator or rated OSRO that
is called upon to provide response resources through the utilization
of the universal mutual aid agreement.
(d) If a responsible party cannot be identified and sufficient
federal oil spill response funds are not available or will not be
available in an adequate period of time as determined by the
administrator, costs incurred by an owner or operator or rated OSRO
due to the provision of response resources under the terms of the
universal mutual aid agreement may be paid from the Oil Spill
Response Trust Fund.
SEC. 3. Section 8670.13 of the Government Code is amended to read:
8670.13. (a) The administrator shall
periodically evaluate the feasibility of requiring new technologies
to aid prevention, response, containment, cleanup and wildlife
rehabilitation.
(b) Beginning January 1, 2010, and every five years thereafter,
the administrator shall prepare and make available to the Legislature
a comprehensive evaluation of emerging technologies that aid
prevention, response, containment, cleanup, and wildlife
rehabilitation. The purpose of the evaluation is to access which
emerging technologies show the most promise and to provide policy
guidance for investments made through California Oil Spill Prevention
and Cleanup Technology Grants pursuant to Section 8670.74.
SEC. 4. Section 8670.28 of the Government Code is amended to read:
8670.28. (a) The administrator, taking into consideration the
marine facility or vessel contingency plan requirements of the
national and California contingency plans, the State Lands
Commission, the State Fire Marshal, and the California Coastal
Commission shall adopt and implement regulations governing the
adequacy of oil spill contingency plans to be prepared and
implemented under this article. All regulations shall be developed in
consultation with the State Interagency Oil Spill Committee, and the
Oil Spill Technical Advisory Committee , and
shall be consistent with the California oil spill contingency plan
and not in conflict with the National Contingency Plan. The
regulations shall provide for the best achievable protection of
coastal and marine resources. The regulations shall permit the
development, application, and use of an oil spill contingency plan
for similar vessels, pipelines, terminals, and facilities within a
single company or organization, and across companies and
organizations. The regulations shall, at a minimum, ensure all of the
following:
(1) All areas of the marine waters of the state are at all times
protected by prevention, response, containment, and cleanup equipment
and operations. For the purposes of this section, "marine waters"
includes the waterways used for waterborne commercial vessel traffic
to the Port of Stockton and the Port of Sacramento.
(2) Standards set for response, containment, and cleanup equipment
and operations are maintained and regularly improved to protect the
resources of the state.
(3) A mandated minimum containment response is required for all
oil spills or discharges that occur during low visibility conditions
where the area impacted by the spill cannot be determined by visual
observation.
(4) A mandated minimum containment response is required for all
marine groundings, collisions, and allisions that involve a tank
vessel or nontank vessel.
(3)
(5) All appropriate personnel employed by operators
are required to have a contingency plan receive training
in oil spill response and cleanup equipment usage and operations.
(4)
(6) Each oil spill contingency plan provides for
appropriate financial or contractual arrangements for all necessary
equipment and services, for the response, containment, and cleanup of
a reasonable worst case oil spill scenario for each part of the
coast the plan addresses.
(5)
(7) Each oil spill contingency plan demonstrates that
all protection measures are being taken to reduce the possibility of
an oil spill occurring as a result of the operation of the marine
facility or vessel. The protection measures shall include, but not be
limited to, response to disabled vessels and an identification of
those measures taken to comply with requirements of Division 7.8
(commencing with Section 8750) of the Public Resources Code.
(6)
(8) Each oil spill contingency plan identifies the
types of equipment that can be used, the location of the equipment,
and the time taken to deliver the equipment.
(7)
(9) Each marine facility conducts a hazard and
operability study to identify the hazards associated with the
operation of the facility, including the use of the facility by
vessels, due to operating error, equipment failure, and external
events. For the hazards identified in the hazard and operability
studies, the facility shall conduct an offsite consequence analysis
which that , for the most likely
hazards, assumes pessimistic water and air dispersion and other
adverse environmental conditions.
(8)
(10) Each oil spill contingency plan contains a list of
contacts to call in the event of a drill, threatened discharge of
oil, or discharge of oil.
(9)
(11) Each oil spill contingency plan identifies the
measures to be taken to protect the recreational and environmentally
sensitive areas that would be threatened by a reasonable worst case
oil spill scenario.
(10)
(12) Standards for determining a reasonable worst case
oil spill.
(11)
(13) Each oil spill contingency plan includes a
timetable for implementing the plan.
(12)
(14) Each oil spill contingency plan specifies an agent
for service of process. The agent shall be located in this state.
(b) The regulations and guidelines adopted pursuant to this
section shall also include provisions to provide public review and
comment on submitted oil spill contingency plans prior to approval.
(c) The regulations adopted pursuant to this section shall
specifically address the types of equipment that will be necessary,
the maximum time that will be allowed for deployment, the maximum
distance to cooperating response entities, the amounts of dispersant,
and the maximum time required for application, should the use of
dispersants be approved. Upon a determination by the administrator
that booming is appropriate at the site and necessary to provide best
achievable protection, the regulations shall require that vessels
engaged in lightering operations be boomed prior to the commencement
of operations.
(d) The administrator shall adopt regulations and guidelines for
oil spill contingency plans with regard to mobile transfer units,
small marine fueling facilities, and vessels carrying oil as
secondary cargo that acknowledge the reduced risk of damage from oil
spills from those units, facilities, and vessels while maintaining
the best achievable protection for the public health and safety and
the environment.
(e) The regulations adopted pursuant to subdivision (d) shall be
exempt from review by the Office of Administrative Law. Subsequent
amendments and changes to the regulations shall not be exempt from
Office of Administrative Law review.
SEC. 5. Section 8670.30 of the Government Code is amended to read:
8670.30. (a) An oil spill response organization may apply to the
administrator for a rating of that OSRO's response capabilities. The
administrator shall establish rating levels for classifying OSROs
pursuant to subdivision (b).
(b) Upon receiving a completed application for rating, the
administrator shall review the application and rate the OSRO based on
the OSRO's satisfactory compliance with criteria established by the
administrator, which shall include, but is not limited to, all of the
following elements:
(1) The geographic region or regions of the state where the OSRO
intends to operate.
(2) Timeframes for having response resources on-scene and
deployed.
(3) The type of equipment that the OSRO will use and the location
of the stored equipment.
(4) The volume of oil that the OSRO is capable of recovering and
containing.
(5) The dedicated response resources the OSRO controls in the area
it intends to operate. For purposes of this paragraph, "controls"
means equipment owned by the OSRO and located in the area and
personnel employed by the OSRO and located in the area.
(c) The administrator shall not issue a rating until the applicant
OSRO completes an unannounced drill. The administrator may call a
drill for every distinct geographic area in which the OSRO requests a
rating. The drill shall test the resources and response capabilities
of the OSRO, including, but not limited to, on water containment and
recovery, environmentally sensitive habitat protection, and storage.
If an OSRO fails to successfully complete a drill, the administrator
shall not issue the requested rating, but the administrator may rate
the OSRO at a rating lesser than the rating sought with the
application. If an OSRO is denied a requested rating, the OSRO may
reapply for rating.
(d) A rating issued pursuant to this section shall be valid for
three years unless modified, suspended, or revoked. The administrator
shall review the rating of each rated OSRO at least once every three
years. The administrator shall not renew a rating unless the OSRO
meets criteria established by the administrator, including, at a
minimum, that the rated OSRO periodically tests and drills itself,
including testing protection of environmentally sensitive sites,
during the three-year period.
(e) The administrator may shall
require a rated OSRO to demonstrate that the rated OSRO can deploy
the response resources required to meet the applicable provisions of
an oil spill contingency plan in which the OSRO is listed. These
demonstrations may be achieved through inspections, announced and
unannounced drills, or by any other means.
(f) (1) Except as provided in paragraph (6), each rated OSRO shall
satisfactorily complete at least one unannounced drill every three
years after receiving its rating.
(2) The administrator may modify, suspend, or revoke an OSRO's
rating if a rated OSRO fails to satisfactorily complete a drill.
(3) The administrator may shall
require the satisfactory completion of one unannounced drill of each
rated OSRO prior to being granted a modified rating, or
for renewal, or prior to the reinstatement of a
revoked or suspended rating.
(4) A drill for the protection of environmentally sensitive areas
shall conform as close as possible to the response that would occur
during a spill but sensitive sites shall not be damaged during the
drill.
(5) The response resources to be deployed by a rated OSRO within
the first six hours of a spill or drill shall be dedicated response
resources or be owned and controlled by a rated OSRO that
are sufficient to meet the spill response planning requirements of
the OSRO's client owner or operator . This requirement does
not preclude a rated OSRO from bringing in additional response
resources. The administrator may, by regulation, permit a lesser
requirement for dedicated or OSRO owned and controlled response
resources for shoreline protection.
(6) The administrator may determine that actual spill response
performance may be substituted in lieu of a drill.
(7) The administrator shall issue a written report evaluating the
performance of the OSRO after every unannounced drill called by the
administrator.
(8) The administrator shall determine whether an unannounced drill
called upon an OSRO by a federal agency qualifies as an unannounced
drill for the purposes of this subdivision.
(g) Each rated OSRO shall provide reasonable notice to the
administrator about each future drill, and the administrator, or his
or her designee, may attend the drill.
(h) The costs incurred by an OSRO to comply with this section and
the regulations adopted pursuant to this section, including drills
called by the administrator, shall be the responsibility of the OSRO.
All local, state, and federal agency costs incurred in conjunction
with participation in a drill shall be borne by each respective
agency.
(i) (1) A rating awarded pursuant to this section is personal and
applies only to the OSRO that receives that rating and the rating is
not transferable, assignable, or assumable. A rating does not
constitute a possessory interest in real or personal property.
(2) If there is a change in ownership or control of the OSRO, the
rating of that OSRO is null and void and the OSRO shall file a new
application for a rating pursuant to this section.
(3) For purposes of this subdivision, a "change in ownership or
control" includes, but is not limited to, a change in corporate
status, or a transfer of ownership
that changes the majority control of voting within the entity.
(j) The administrator may charge a reasonable fee to process an
application for, or renewal of, a rating.
(k) The administrator shall adopt regulations to implement this
section as appropriate. At a minimum, the regulations shall
appropriately address all of the following:
(1) Criteria for successful completion of a drill.
(2) The amount and type of response resources that are required to
be available to respond to a particular volume of spilled oil during
specific timeframes within a particular region.
(3) Regional requirements.
(4) Training.
(5) The process for applying for a rating, and for suspension,
revocation, appeal, or other modification of a rating.
(6) Ownership and employment of response resources.
(7) Conditions for canceling a drill due to hazardous or other
operational circumstances.
() Any A letter of approval issued
from the administrator before January 1, 2002, that rates an OSRO
shall be deemed to meet the requirements of this section for three
years from the date of the letter's issuance or until January 1,
2003, whichever date occurs later.
SEC. 6. Section 8670.48 of the Government Code is amended to read:
8670.48. (a) (1) A uniform oil spill response fee in an amount
not exceeding twenty-five cents ($0.25) for each barrel of petroleum
products, as set by the administrator pursuant to subdivision (f),
shall be imposed upon every a person
owning petroleum products at the time the petroleum products are
received at a marine terminal within this state by means of a vessel
from a point of origin outside this state. The fee shall be remitted
to the State Board of Equalization by the terminal operator on the
25th day of each month based upon the number of barrels of petroleum
products received during the preceding month.
(2) Every An owner of petroleum
products is liable for the fee until it has been paid to the state,
except that payment to a marine terminal operator registered under
this chapter is sufficient to relieve the owner from further
liability for the fee.
(b) Every An operator of a pipeline
shall also pay a uniform oil spill response fee in an amount not
exceeding twenty-five cents ($0.25) for each barrel of petroleum
products, as set by the administrator pursuant to subdivision (f),
transported into the state by means of a pipeline operating across,
under, or through the marine waters of the state. The fee shall be
paid on the 25th day of each month based upon the number of barrels
of petroleum products so transported into the state during the
preceding month.
(c) (1) Every An operator of a
refinery shall pay a uniform oil spill response fee in an amount not
exceeding twenty-five cents ($0.25) for each barrel of crude oil, as
set by the administrator pursuant to subdivision (f), received at a
refinery within the state. The fee shall be paid on the 25th day of
each month based upon the number of barrels of crude oil so received
during the preceding month.
(2) The fee shall not be imposed by a refiner, or a person or
entity acting as an agent for a refiner, on crude oil produced by an
independent crude oil producer as defined in paragraph (3). The board
shall not identify a company as exempt from the fee requirements of
this section if that company was reorganized, sold, or otherwise
modified with the intent of circumventing the requirements of this
section.
(3) For purposes of this chapter, "independent crude oil producer"
means any a person or entity producing
crude oil within this state who performs no refining of
does not refine crude oil into
product, and who possesses does not possess
or owns own a no retail gasoline
marketing facilities facility .
(d) Every A marine terminal operator
shall pay a uniform oil spill response fee in an amount not
exceeding twenty-five cents ($0.25), in accordance with subdivision
(g), for each barrel of crude oil, as set by the administrator
pursuant to subdivision (f), that is transported from within this
state by means of marine vessel to a destination outside this state.
(e) Every A operator of a pipeline
shall pay a uniform oil spill response fee in an amount not exceeding
twenty-five cents ($0.25), in accordance with subdivision (g), for
each barrel of crude oil, as set by the administrator pursuant to
subdivision (f), transported out of the state by pipeline.
(f) (1) The fees required pursuant to this section shall be
collected during any a period for which
the administrator determines that collection is necessary for any of
the following reasons:
(A) The amount in the fund is less than or equal to 95 percent of
the designated amount specified in subdivision (a) of Section 46012
of the Revenue and Taxation Code.
(B) Additional money is required to pay for the purposes specified
in subdivision (k).
(C) The revenue is necessary to repay any
a draw on a financial security obtained by the Treasurer
pursuant to subdivision (o) or any borrowing by
the Treasurer pursuant to Article 7.5 (commencing with Section
8670.53.1) including any principal, interest, premium, fees, charges,
or costs of any kind incurred in connection with those borrowings or
financial security.
(2) The administrator, in consultation with the State Board of
Equalization, and with the approval of the Treasurer, may direct the
State Board of Equalization to cease collecting the fee when the
administrator determines that further collection of the fee is not
necessary for the purposes specified in paragraph (1).
(3) The administrator, in consultation with the State Board of
Equalization, shall set the amount of the oil spill response fees.
The oil spill response fees shall be imposed on all feepayers in the
same amount. The administrator shall not set the amount of the fee at
less than twenty-five cents ($0.25) for each barrel of petroleum
products or crude oil, unless the administrator finds that the
assessment of a lesser fee will cause the fund to reach the
designated amount specified in subdivision (a) of Section 46012 of
the Revenue and Taxation Code within four months. The fee shall not
be less than twenty-five cents ($0.25) for each barrel of petroleum
products or crude oil if the administrator has drawn upon the
financial security obtained by the Treasurer pursuant to subdivision
(o) or if the Treasurer has borrowed money pursuant to Article 7.5
(commencing with Section 8670.53.1) and principal, interest, premium,
fees, charges, or costs of any kind incurred in connection with
those borrowings remain outstanding or unpaid, unless the Treasurer
has certified to the administrator that the money in the fund is not
necessary for the purposes specified in paragraph (1).
(g) The fees imposed by subdivisions (d) and (e) shall be imposed
in any calendar year beginning the month following the month when the
total cumulative year-to-date barrels of crude oil transported
outside the state by all feepayers by means of vessel or pipeline
exceeds 6 percent by volume of the total barrels of crude oil and
petroleum products subject to oil spill response fees under
subdivisions (a), (b), and (c) for the prior calendar year.
(h) For purposes of this chapter, "designated amount" means the
amounts specified in Section 46012 of the Revenue and Taxation Code.
(i) The administrator, in consultation with the State Board of
Equalization and with the approval of the Treasurer, shall authorize
refunds of any money collected that is not necessary for the purposes
specified in paragraph (1) of subdivision (f). The State Board of
Equalization, as directed by the administrator, and in accordance
with Section 46653 of the Revenue and Taxation Code, shall refund the
excess amount of fees collected to each feepayer who paid the fee to
the state, in proportion to the amount that each feepayer paid into
the fund during the preceding 12 monthly reporting periods in which
there was a fee due, including the month in which the fund exceeded
the specified amount. If the total amount of money in the fund
exceeds the amount specified in this subdivision by 10 percent or
less, refunds need not be ordered by the administrator.
Nothing in this This section shall
does not require the refund of excess fees as
provided in this subdivision more frequently than once each year.
(j) The State Board of Equalization shall collect the fee and
adopt regulations implementing the fee collection program. All fees
collected pursuant to this section shall be deposited in the Oil
Spill Response Trust Fund.
(k) The fee described in this section shall be collected solely
for any of the following purposes:
(1) To provide funds to cover promptly the costs of response,
containment, and cleanup of oil spills into marine waters, including
damage assessment costs, and wildlife rehabilitation as provided in
Section 8670.61.5.
(2) To cover response and cleanup costs and other damages suffered
by the state or other persons or entities from oil spills into
marine waters, which cannot otherwise be compensated by responsible
parties or the federal government , including, but not limited
to, an owner or operator, or rated OSRO, that is called upon to
provide response resources through the utilization of the universal
mutual aid agreement pursuant to Section 8670.11 .
(3) To pay claims for damages pursuant to Section 8670.51.
(4) To pay claims for damages, except for damages described in
paragraph (7) of subdivision (h) of Section 8670.56.5, pursuant to
Section 8670.51.1.
(5) To pay for the cost of obtaining financial security in the
amount specified in subdivision (b) of Section 46012 of the Revenue
and Taxation Code, as authorized by subdivision (o).
(6) To pay indemnity and related costs and expenses as authorized
by Section 8670.56.6.
(7) To pay principal, interest, premium, if any, and fees,
charges, and costs of any kind incurred in connection with moneys
drawn by the administrator on the financial security obtained by the
Treasurer pursuant to subdivision (o) or borrowed by the Treasurer
pursuant to Article 7.5 (commencing with Section 8670.53.1).
(8) To pay for the costs of rescue, medical treatment,
rehabilitation, and disposition of oiled wildlife, as incurred by the
network of oiled wildlife rescue and rehabilitation stations created
pursuant to Section 8670.37.5.
(9) To pay for the costs to administer and award California Oil
Spill Prevention and Cleanup Technology Grants pursuant to Section
8670.74.
() (1) The interest that the state earns on the funds deposited
into the Oil Spill Response Trust Fund shall be deposited in the fund
and shall be used to maintain the fund at the designated amount
specified in subdivision (a) of Section 46012 of the Revenue and
Taxation Code. Interest earned until July 1, 1998, on funds deposited
pursuant to subdivision (a) of Section 46012 of the Revenue and
Taxation Code, as determined jointly by the Controller and the
Director of Finance, shall be available upon appropriation by the
Legislature in the Budget Act to establish, equip, operate, and
maintain the network of rescue and rehabilitation stations for oiled
wildlife as described in Section 8670.37.5 and to support technology
development and research related to oiled wildlife care. Interest
earned on the financial security portion of the fund, required to be
accessible pursuant to subdivision (b) of Section 46012 of the
Revenue and Taxation Code shall not be available for that purpose. If
the amount in the fund exceeds that designated amount, the interest
not needed to equip, operate, and maintain the network of rescue and
rehabilitation stations, or for appropriate technology development
and research regarding oiled wildlife care, shall be deposited into
the Oil Spill Prevention and Administration Fund, and shall be
available for the purposes authorized by Article 6 (commencing with
Section 8670.38).
(2) (A) For each fiscal year, consistent with this article, the
administrator shall submit, as a proposed appropriation in the
Governor's Budget, an amount up to one million five hundred thousand
dollars ($1,500,000), of the interest earned on the funds deposited
into the Oil Spill Response Trust Fund, for the purpose of equipping,
operating, and maintaining the network of oiled wildlife rescue and
rehabilitation stations established pursuant to Section 8670.37.5 and
for support of technology development and research related to oiled
wildlife care. The remaining interest shall be deposited into the Oil
Spill Prevention and Administration Fund pursuant to paragraph (1).
(B) The administrator shall report to the Legislature not later
than June 30, 2002, on the progress and effectiveness of the network
of oiled wildlife rescue and rehabilitation stations established
pursuant to Section 8670.37.5, and the adequacy of the Oil Spill
Response Trust Fund to meet the purposes for which it was
established.
(C) At the administrator's request, the funds made available
pursuant to this paragraph may be directly appropriated to a suitable
program for wildlife health and rehabilitation within a school of
veterinary medicine within this state, provided that an agreement
exists, consistent with this chapter, between the administrator and
an appropriate representative of the program for carrying out that
purpose. The administrator shall attempt to have an agreement in
place at all times. The agreement shall ensure that the training of,
and the care provided by, the program staff are at levels that are
consistent with those standards generally accepted within the
veterinary profession.
(D) The funds made available pursuant to this paragraph shall not
be considered an offset to any other state funds appropriated to the
program, the program's associated school of veterinary medicine, or
the program's associated college or university, and the funds shall
not be used for any other purpose. If an offset does occur or the
funds are used for an unintended purpose, expenditure of any
appropriation of funds pursuant to this paragraph may be terminated
by the administrator and the administrator may request a
reappropriation to accomplish the intended purpose. The administrator
shall annually review and approve the proposed uses of any funds
made available pursuant to this paragraph.
(m) The Legislature finds and declares that effective response to
oil spills requires that the state have available sufficient funds in
a response fund. The Legislature further finds and declares that
maintenance of that fund is of utmost importance to the state and
that the money in the fund shall be used solely for the purposes
specified in subdivision (k).
(n) It is the intent of the Legislature, in enacting this section,
that the fee shall not be imposed by a refiner, or a person or
entity acting as an agent for a refiner, on crude oil produced by an
independent crude oil producer.
(o) The Treasurer shall obtain financial security, in the
designated amount specified in subdivision (b) of Section 46012 of
the Revenue and Taxation Code, in a form which, in the event of an
oil spill, may be drawn upon immediately by the administrator upon
making the determinations required by paragraph (2) of subdivision
(a) of Section 8670.49. The financial security may be obtained in any
of the forms described in subdivision (b) of Section 8670.53.3, as
determined by the Treasurer.
(p) Nothing in this This section
limits does not limit the authority of
the administrator to raise oil spill response fees pursuant to
Section 8670.48.5.
SEC. 7. Section 8670.49 of the Government Code is amended to read:
8670.49. (a) (1) The administrator may only expend money from the
fund to pay for any of the following, subject to the lien
established in Section 8670.53.2:
(A) To pay the cost of obtaining financial security as authorized
by paragraph (5) of subdivision (k) and subdivision (o) of Section
8670.48.
(B) To pay the principal, interest, premium, if any, and fees,
charges, and costs of any kind incurred in connection with moneys
drawn by the administrator on the financial security obtained by the
Treasurer, or the moneys borrowed by the Treasurer, as authorized by
paragraph (7) of subdivision (k) of Section 8670.48.
(C) To pay for the construction, equipping, operation, and
maintenance of rescue and rehabilitation facilities, and technology
development for oiled wildlife care from interest earned on money
deposited in the fund as authorized by subdivision (l) of Section
8670.48.
(D) To pay for the costs of rescue, medical treatment,
rehabilitation, and disposition of oiled wildlife, as incurred by the
network of oiled wildlife rescue and rehabilitation stations
pursuant to subdivision (f) of Section 8670.37.5.
(E) To pay for the expansion, in the VTS area, pursuant to Section
445 of the Harbors and Navigation Code, of the vessel traffic
service system (VTS system) authorized pursuant to subdivision (f) of
Section 8670.21.
(F) To pay for the costs to administer and award California Oil
Spill Prevention and Cleanup Technology Grants pursuant to Section
8670.74.
(2) If a spill has occurred, the administrator may expend the
money in the fund for the purposes identified in paragraphs (1), (2),
(3), (4), and (6) (6), and (9) of
subdivision (k) of Section 8670.48 only upon making the following
determinations:
(A) Except as authorized by Section 8670.51.1, a responsible party
does not exist or the responsible party is unable or unwilling to
provide adequate and timely cleanup and to pay for the damages
resulting from the spill. The administrator shall make a reasonable
effort to have the party responsible remove the oil or agree to pay
for any actions resulting from the spill that may be required by law,
provided that the efforts are not detrimental to fish, plant,
animal, or bird life in the affected waters. The reasonable effort of
the administrator shall include attempting to access the responsible
parties' insurance or other proof of financial responsibility.
(B) Sufficient federal oil spill funds are not available or will
not be available in an adequate period of time.
(3) Notwithstanding any other provision of this subdivision, the
administrator may expend money from the fund for authorized
expenditures when a reimbursement procedure is in place to receive
reimbursements for those expenditures from federal oil spill funds.
(b) Upon making the determinations specified in paragraph (2) of
subdivision (a), the administrator shall immediately make whatever
payments are necessary for responding to, containing, or cleaning up,
the spill, including any wildlife rehabilitation required by law and
payment of claims pursuant to Sections 8670.51 and 8670.51.1,
subject to the lien established by Section 8670.53.2.
SEC. 8. 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 8670.10 or any oil spills, if
practicable.
(d) The committee shall report biennially to the Governor and the
Legislature on its evaluation of oil spill response and preparedness
programs within the state and may prepare and send any additional
reports it determines to be appropriate to the Governor and the
Legislature.
(e) On or before August 1, 2005, the committee shall review the
Department of Finance report required under Section 8670.42 and
prepare and submit to the Governor and the Legislature comments on
the report, including, but not limited to, recommendations for
improving the state's oil spill prevention, response, and
preparedness program.
(f) The committee shall review potential recipients of California
Oil Spill Prevention and Cleanup Technology Grants and make
recommendations to the administrator for awarding grants pursuant to
Section 8670.74.
SEC. 9. Section 8670.74 is added to the Government Code, to read:
8670.74. (a) The administrator shall award and administer
competitive grants for the development of improved processes and
technologies for oil spill prevention, containment, and cleanup. The
grants shall be known as California Oil Spill Prevention and Cleanup
Technology Grants and shall provide funds to eligible recipients for
research, testing, and capital matching grants for bringing emerging
technologies to the marketplace. In awarding the grants, the
administrator shall select projects and recipients that are likely to
yield the most benefit in providing the best achievable technology
and best achievable protection pursuant to this chapter.
(b) The administrator shall expend money from the Oil Spill
Response Trust Fund in the amount of five million dollars
($5,000,000) annually to pay for California Oil Spill Prevention and
Cleanup Technology Grants.
(c) A grant may be awarded to a state agency, university, research
institution, nonprofit organization, scientist, engineer,
corporation, or private business on a competitive basis using a
selection process established by the administrator.
(d) A corporation or private business receiving a grant shall
expend a sum of money not less than two times the grant amount for
the purpose of advancing the project or line of study for which the
grant is awarded.
(e) A state agency, university, research institution, nonprofit
organization, scientist, or engineer receiving a grant shall expend a
sum of money equivalent to or greater than the grant amount for the
purpose of advancing the project or line of study for which the grant
is awarded.
(f) Prior to the awarding of a grant, the Oil Spill Technical
Advisory Committee, created pursuant to Section 8670.54, shall review
grant applications determined by the administrator to be most
promising for award and make recommendations to the administrator.
(g) In selecting a grant recipient, the administrator shall
consider the recommendations of the Oil Spill Technical Advisory
Committee and the comprehensive evaluation of emerging technologies
completed pursuant to Section 8670.13.
(h) A grant recipient shall use the grant award to fund only the
project described in the recipient's application.
(i) A grant recipient shall not use the grant funds to fund or
otherwise cover costs of an existing or proposed project or activity
not included in the application.
(j) Any grant funds allocated to a project that exceed the actual
cost of completing the project as outlined in the recipient's
application shall be returned to the Oil Spill Response Trust Fund
and shall not be used by the grant recipient for any other purpose.
(k) If the administrator or an employee or agent of the Office of
Oil Spill Prevention and Response, or a member of his or her
immediate family, is employed by a grant applicant, the employer of a
grant applicant, or a consultant or independent contractor employed
by the grant applicant, the administrator, employee, or agent shall
make that disclosure to the administrator or the deputy administrator
and shall not participate in or make recommendations on the grant
proposal of that applicant.