AB 881, as amended, Chesbro. Oil spill prevention and administrative fee.
Existing law imposes an oil spill prevention and administration fee in an amount determined by the administrator to implement oil spill prevention activities, but not to exceed, until January 1, 2015, $0.065 per barrel of crude oil or petroleum products, on persons owning crude oil or petroleum products at a marine terminal and thereafter the fee is not to exceed $0.05 per barrel. The fee is deposited into the Oil Spill Prevention and Administration Fund in the State Treasury. Upon appropriation by the Legislature, moneys in the fund are available for specified purposes, including to cover the costs incurred by the Oiled Wildlife Care Network for training and field collection and search and rescue activities.
This bill would, instead, on and after January 1, 2015, increase the maximum annual assessment tobegin delete $0.08end deletebegin insert
$0.07end insert per barrel of crude oil or petroleum productsbegin delete and would allow the administrator to adjust the maximum fee annually based on the percentage increase in the California Consumer Price Index, as specifiedend delete.
Existing law permits the administrator to charge a nontank vessel owner or operator a reasonable fee, to be collected with each application to obtain a certificate of financial responsibility, in an amount that is based upon the administrator’s costs in implementing oil spill prevention relating to nontank vessels.
This bill would, on and after January 1, 2015, require the fee not to exceed $3,500 per nontank vessel but would give the administrator discretion to reduce the fee for nontank vessels that pose a reduced risk of pollutionbegin delete and would allow the administrator to adjust the maximum fee annually based on the percentage increase in the California Consumer Price Index, as specifiedend delete.
This bill would allow the administrator to transfer up to $2,000,000 in funds from the Oil Spill Prevention and Administration Fund to the Oil Spill Response Trust Fund, as described, to fund specified activities of the Oiled Wildlife Care Network.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 8670.40 of the Government Code is
2amended to read:
(a) The State Board of Equalization shall collect a
4fee in an amount determined by the administrator to be sufficient
5to carry out the purposes set forth in subdivision (e), and a
6reasonable reserve for contingencies. The annual assessment shall
7not exceed six and one-half cents ($0.065) per barrel of crude oil
8or petroleum products.
9(b) (1) The oil spill prevention and administration fee shall be
10imposed upon a person owning crude oil at the time that crude oil
11is received at a marine terminal from within or outside the state,
12and upon a person who owns petroleum products at the time that
13those petroleum products are received at a marine terminal from
14outside
this state. The fee shall be collected by the marine terminal
15operator from the owner of the crude oil or petroleum products
16based on each barrel of crude oil or petroleum products so received
17by means of a vessel operating in, through, or across the marine
P3 1waters of the state. In addition, an operator of a pipeline shall pay
2the oil spill prevention and administration fee for each barrel of
3crude oil originating from a production facility in marine waters
4and transported in the state by means of a pipeline operating across,
5under, or through the marine waters of the state. The fees shall be
6remitted to the board by the terminal or pipeline operator on the
725th day of the month based upon the number of barrels of crude
8oil or petroleum products received at a marine terminal or
9transported by pipeline during the preceding month. A fee shall
10not be imposed pursuant to this section with respect to crude oil
11or
petroleum products if the person who would be liable for that
12fee, or responsible for its collection, establishes that the fee has
13been collected by a terminal operator registered under this chapter
14or paid to the board with respect to the crude oil or petroleum
15product.
16(2) An owner of crude oil or petroleum products is liable for
17the fee until it has been paid to the board, except that payment to
18a marine terminal operator registered under this chapter is sufficient
19to relieve the owner from further liability for the fee.
20(3) On or before January 20, the administrator shall annually
21prepare a plan that projects revenues and expenses over three fiscal
22years, including the current year. Based on the plan, the
23administrator shall set the fee so that projected revenues, including
24any
interest, are equivalent to expenses as reflected in the current
25Budget Act and in the proposed budget submitted by the Governor.
26In setting the fee, the administrator may allow for a surplus if the
27administrator finds that revenues will be exhausted during the
28period covered by the plan or that the surplus is necessary to cover
29possible contingencies. The administrator shall notify the board
30of the adjusted fee rate, which shall be rounded to no more than
31four decimal places, to be effective the first day of the month
32beginning not less than 30 days from the date of the notification.
33(c) The moneys collected pursuant to subdivision (a) shall be
34deposited into the fund.
35(d) The board shall collect the fee and adopt regulations for
36implementing the fee collection program.
37(e) The fee described in this section shall be collected solely
38for all of the following purposes:
P4 1(1) To implement oil spill prevention programs through rules,
2regulations, leasing policies, guidelines, and inspections and to
3implement research into prevention and control technology.
4(2) To carry out studies that may lead to improved oil spill
5prevention and response.
6(3) To finance environmental and economic studies relating to
7the effects of oil spills.
8(4) To implement, install, and maintain emergency programs,
9equipment, and facilities to respond to, contain, and clean up oil
10spills and to
ensure that those operations will be carried out as
11intended.
12(5) To respond to an imminent threat of a spill in accordance
13with the provisions of Section 8670.62 pertaining to threatened
14discharges. The cumulative amount of an expenditure for this
15purpose shall not exceed the amount of one hundred thousand
16dollars ($100,000) in a fiscal year unless the administrator receives
17the approval of the Director of Finance and notification is given
18to the Joint Legislative Budget Committee. Commencing with the
191993-94 fiscal year, and each fiscal year thereafter, it is the intent
20of the Legislature that the annual Budget Act contain an
21appropriation of one hundred thousand dollars ($100,000) from
22the fund for the purpose of allowing the administrator to respond
23to threatened oil spills.
24(6) To reimburse the board for costs incurred to implement this
25chapter and to carry out Part 24 (commencing with Section 46001)
26of Division 2 of the Revenue and Taxation Code.
27(7) To cover costs incurred by the Oiled Wildlife Care Network
28established by Section 8670.37.5 for training and field collection,
29and search and rescue activities, pursuant to subdivision (g) of
30Section 8670.37.5.
31(f) The moneys deposited in the fund shall not be used for
32responding to an oil spill.
33(g) The moneys deposited in the fund shall not be used to
34provide a loan to any other fund.
35(h) This section shall remain in effect only until January 1, 2015,
36and
as of that date is repealed, unless a later enacted statute, that
37is enacted before January 1, 2015, deletes or extends that date.
Section 8670.40 is added to the Government Code, to
39read:
(a) The State Board of Equalization shall collect a
2fee in an amount determined by the administrator to be sufficient
3to carry out the purposes set forth in subdivision (e), and a
4reasonable reserve for contingencies. The annual assessment shall
5not exceedbegin delete eightend deletebegin insert sevenend insert centsbegin delete ($0.08)end deletebegin insert ($0.07)end insert per barrel of crude
6oil or petroleum products.begin delete The administrator may adjust the
7maximum fee annually based on the percentage increase in the
8California Consumer Price Index as determined pursuant to Section
92212 of the Revenue and Taxation Code.end delete
10(b) (1) The oil spill prevention and administration fee shall be
11imposed upon a person owning crude oil at the time that crude oil
12is received at a marine terminal from within or outside the state,
13and upon a person who owns petroleum products at the time that
14those petroleum products are received at a marine terminal from
15outside this state. The fee shall be collected by the marine terminal
16operator from the owner of the crude oil or petroleum products
17based on each barrel of crude oil or petroleum products so received
18by means of a vessel operating in, through, or across the marine
19waters of the state. In addition, an operator of a pipeline shall pay
20the oil spill prevention and administration fee for each barrel of
21crude oil originating from a production facility in marine waters
22and transported in the state by means of a
pipeline operating across,
23under, or through the marine waters of the state. The fees shall be
24remitted to the board by the terminal or pipeline operator on the
2525th day of the month based upon the number of barrels of crude
26oil or petroleum products received at a marine terminal or
27transported by pipeline during the preceding month. A fee shall
28not be imposed pursuant to this section with respect to crude oil
29or petroleum products if the person who would be liable for that
30fee, or responsible for its collection, establishes that the fee has
31been collected by a terminal operator registered under this chapter
32or paid to the board with respect to the crude oil or petroleum
33product.
34(2) An owner of crude oil or petroleum products is liable for
35the fee until it has been paid to the board, except that payment to
36a marine terminal operator
registered under this chapter is sufficient
37to relieve the owner from further liability for the fee.
38(3) On or before January 20, the administrator shall annually
39prepare a plan that projects revenues and expenses over three fiscal
40years, including the current year. Based on the plan, the
P6 1administrator shall set the fee so that projected revenues, including
2any interest, are equivalent to expenses as reflected in the current
3Budget Act and in the proposed budget submitted by the Governor.
4In setting the fee, the administrator may allow for a surplus if the
5administrator finds that revenues will be exhausted during the
6period covered by the plan or that the surplus is necessary to cover
7possible contingencies. The administrator shall notify the board
8of the adjusted fee rate, which shall be rounded to no more than
9four decimal places, to be
effective the first day of the month
10beginning not less than 30 days from the date of the notification.
11(c) The moneys collected pursuant to subdivision (a) shall be
12deposited into the fund.
13(d) The board shall collect the fee and adopt regulations for
14implementing the fee collection program.
15(e) The fee described in this section shall be collected solely
16for all of the following purposes:
17(1) To implement oil spill prevention programs through rules,
18regulations, leasing policies, guidelines, and inspections and to
19implement research into prevention and control technology.
20(2) To carry out studies that may
lead to improved oil spill
21prevention and response.
22(3) To finance environmental and economic studies relating to
23the effects of oil spills.
24(4) To implement, install, and maintain emergency programs,
25equipment, and facilities to respond to, contain, and clean up oil
26spills and to ensure that those operations will be carried out as
27intended.
28(5) To respond to an imminent threat of a spill in accordance
29with the provisions of Section 8670.62 pertaining to threatened
30
discharges. The cumulative amount of an expenditure for this
31purpose shall not exceed the amount of one hundred thousand
32dollars ($100,000) in a fiscal year unless the administrator receives
33the approval of the Director of Finance and notification is given
34to the Joint Legislative Budget Committee. Commencing with the
351993-94 fiscal year, and each fiscal year thereafter, it is the intent
36of the Legislature that the annual Budget Act contain an
37appropriation of one hundred thousand dollars ($100,000) from
38the fund for the purpose of allowing the administrator to respond
39to threatened oil spills.
P7 1(6) To reimburse the board for costs incurred to implement this
2chapter and to carry out Part 24 (commencing with Section 46001)
3of Division 2 of the Revenue and Taxation Code.
4(7) To
cover annual costs incurred by the Oiled Wildlife Care
5Network established by Section 8670.37.5, including costs for
6training and field collection, and search and rescue activities,
7pursuant to subdivision (g) of Section 8670.37.5.
8(f) The moneys deposited in the fund shall not be used for
9responding to an oil spill.
10(g) The moneys deposited in the fund shall not be used to
11provide a loan to any other fund.
12(h) This section shall become operative on January 1, 2015.
Section 8670.41 of the Government Code is amended
14to read:
(a) The administrator shall charge a nontank vessel
16owner or operator a reasonable fee, to be collected with each
17application to obtain a certificate of financial responsibility, in an
18amount that is based upon the administrator’s costs in
19implementing this chapter relating to nontank vessels. Before
20January 1, 2005, the fee shall be two thousand five hundred dollars
21($2,500), or less per vessel.
22(b) The administrator may charge a reduced fee under this
23section for nontank vessels determined by the administrator to
24pose a reduced risk of pollution, including, but not limited to,
25vessels used for research or training and vessels that are moored
26permanently
or rarely move.
27(c) The administrator shall deposit all revenue derived from the
28fees imposed under this section in the Oil Spill Prevention and
29Administration Fund established in the State Treasury under
30Section 8670.38.
31(d) Revenue derived from the fees imposed under this section
32may be spent for the purposes listed in subdivision (e) of Section
338670.40, and may not be used for responding to an oil spill.
34(e) This section shall remain in effect only until January 1, 2015,
35and as of that date is repealed, unless a later enacted statute, that
36is enacted before January 1, 2015, deletes or extends that date.
Section 8670.41 is added to the Government Code, to
38read:
(a) The administrator shall charge a nontank vessel
40owner or operator a reasonable fee, to be collected with each
P8 1application to obtain a certificate of financial responsibility, in an
2amount not to exceed three thousand five hundred dollars ($3,500)
3per nontank vessel for the administrator’s costs in implementing
4this chapter relating to nontank vessels.begin delete The administrator may
5adjust the maximum fee annually based on the percentage increase
6in the California Consumer Price Index as determined pursuant to
7Section 2212 of the Revenue and Taxation Code.end delete
8(b) Notwithstanding subdivision (a), the administrator may
9charge a reduced fee under this section for nontank vessels
10determined by the administrator to pose a reduced risk of pollution,
11
including, but not limited to, vessels used for research or training
12and vessels that are moored permanently or rarely move.
13(c) The administrator shall deposit all revenue derived from the
14fees imposed under this section in the Oil Spill Prevention and
15Administration Fund established in the State Treasury under
16Section 8670.38.
17(d) Revenue derived from the fees imposed under this section
18may be spent for the purposes listed in subdivision (e) of Section
198670.40, and may not be used for responding to an oil spill.
20(e) This section shall become operative on January 1, 2015.
Section 8670.43 is added to the Government Code, to
22read:
To the extent that the interest earned on the Oil Spill
24Response Trust Fund is insufficient to meet the appropriation in
25subparagraph (A) of paragraph (2) of subdivision (l) of Section
268670.48, the administrator may transfer up to two million dollars
27($2,000,000) in funds from the Oil Spill Prevention and
28Administration Fund to the Oil Spill Response Trust Fund to be
29used, upon appropriation by the Legislature, to cover the annual
30costs of the Oiled Wildlife Care Network described in paragraph
31(7) of subdivision (e) of Section 8670.40.
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