BILL NUMBER: AB 2764 INTRODUCED BILL TEXT INTRODUCED BY Committee on Natural Resources (Chesbro (Chair), Grove (Vice Chair), Garcia, Muratsuchi, Skinner, Stone, and Williams) MARCH 27, 2014 An act to amend Sections 6306 and 8750 of the Public Resources Code, relating to state lands. LEGISLATIVE COUNSEL'S DIGEST AB 2764, as introduced, Committee on Natural Resources. State Lands Commission. (1) Existing law requires that every local trustee of granted public trust lands, as defined and except as provided, file with the State Lands Commission, on or before October 1 of each year, a detailed statement of all revenues and expenditures relating to its trust lands and trust assets, as prescribed, including obligations incurred, but not yet paid, covering the fiscal year preceding the submission of the statement. This bill instead would require the statement to be filed with the commission on or before December 31 of each year. (2) The Lempert-Keene-Seastrand Oil Spill Prevention and Response Act generally requires the administrator for oil spill 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 imposes various administrative civil and criminal penalties on a person that violates specified provisions of the act. The act, for purposes of specified provisions primarily under the jurisdiction of the State Lands Commission, defines marine waters to exclude waters in the Sacramento-San Joaquin Rivers and Delta, as specified. This bill would no longer exclude from the definition of marine waters for this purpose the waters in the Sacramento-San Joaquin Rivers and Delta and would further revise the definition of marine waters to include waterways used for waterborne commercial vessel traffic to the Port of Sacramento and the Port of Stockton. By expanding the scope of crimes within the act, this bill would impose a state-mandated local program. (3) 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: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 6306 of the Public Resources Code is amended to read: 6306. (a) For purposes of this division, "local trustee of granted public trust lands" means a county, city, or district, including a water, sanitary, regional park, port, or harbor district, or any other local, political, or corporate subdivision that has been granted, conveyed, or transferred by statute, public trust lands, including tidelands, submerged lands, or the beds of navigable waters, through a legislative grant. A local trustee of granted public trust lands is a trustee of state lands. (b) Notwithstanding any other law, every local trustee of granted public trust lands shall establish and maintain accounting procedures, in accordance with generally accepted accounting principles, providing accurate records of all revenues received from the trust lands and trust assets and of all expenditures of those revenues. If a trust grantee has several trust grants of adjacent lands and operates the granted lands as a single integrated entity, separation of accounting records for each trust grant is not required. (c) All revenues received from trust lands and trust assets administered or collected by a local trustee of granted public trust lands shall be expended only for those uses and purposes consistent with the public trust for commerce, navigation, and fisheries, and the applicable statutory grant. (d) All funds received or generated from trust lands or trust assets shall be segregated in separate accounts from nontrust received or generated funds. (e) (1) Unless otherwise prescribed by an applicable statutory grant, on or beforeOctober 1December 31 of each year, each local trustee of granted public trust lands shall file with the commission a detailed statement of all revenues and expenditures relating to its trust lands and trust assets, including obligations incurred but not yet paid, covering the fiscal year preceding submission of the statement. (2) The statement shall be prepared in accordance with generally accepted accounting principles and may take the form of an annual audit prepared by or for the local trustee of granted public trust lands. (3) (A) The detailed statement shall be submitted along with a standardized reporting form developed by the commission. (B) The commission shall use an existing reporting form previously developed for purposes of this paragraph, if a finding is made by the commission that it is generally responsive to the needs of the commission as prescribed in this section. Alternatively, the commission may develop a reporting form that requires a local trustee of granted public lands to report on all of the following: (i) A summary of all funds received or generated from trust lands or trust assets. (ii) A summary of all spending of funds received or generated from trust lands or trust assets. (iii) Any other disposition of funds received or generated from trust lands or trust assets or of the trust lands or trust assets themselves. (iv) A description of the manner in which the statement required by this subdivision and accompanying the reporting form is organized. (v) Any other information that the commission deems to be included in an accounting of granted public trust lands. (C) The adoption of the form by the commission pursuant to this subdivision is the prescription of a form for purposes of subdivision (c) of Section 11340.9 of the Government Code. (4) All forms and supporting statements submitted pursuant to this section shall be public records and be made available on the commission's Internet Web site. (f) (1) The costs that may be incurred by a local trustee of granted public trust lands that result from any new duties imposed upon that trusteeby the act amending this section in the 2011-12 Regular Session of the Legislature,pursuant to Chapter 206 of the Statutes of 2012, including the requirement to submit a standardized reporting form required by paragraph (3) of subdivision (e), shall be paid from the revenues derived from its granted public trust lands and assets specified in subdivision (b). (2) If the revenues derived from the granted public trust lands and assets specified in subdivision (b) are not sufficient to pay the costs for the duties specified in paragraph (1), the commission shall exempt the local trustee of granted public trust lands from performing those duties for which the revenues are not sufficient, or grant a deadline extension from the performance of those duties until sufficient funds are available. SEC. 2. Section 8750 of the Public Resources Code is amended to read: 8750. 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 pursuant to Section 8670.4 of the Government Code. (b) "Barges" means any vessel that carries oil in commercial quantities as cargo but is not equipped with a means of self-propulsion. (c) (1) "Best achievable protection" means the highest level of protectionwhichthat can be achieved through both the use of the best achievable technology and those manpower levels, training procedures, and operational methodswhichthat provide the greatest degree of protection achievable. The administrator's determination of best achievable protection shall be guided by the critical need to protect valuable coastal resources and marine waters, while also considering (A) the protection provided by the measures, (B) the technological achievability of the measures, and (C) the cost of the measures. (2) It is not the intent of the Legislature that the administrator use a cost-benefit or cost-effectiveness analysis or any particular method of analysis in determining which measures to require. Instead, it is the intent of the Legislature that the administrator 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. (d) "Best achievable technology" means that technologywhichthat provides the greatest degree of protection taking into consideration (1) processeswhichthat are being developed, or could feasibly be developed anywhere in the world, given overall reasonable expenditures on research and development, and (2) processeswhichthat are currently in use anywhere in the world. In determining what is best achievable technology, the administrator shall consider the effectiveness and engineering feasibility of the technology. (e) "Commission" means the State Lands Commission. (f) "Local government" means any chartered or general law city, chartered or general law county , or any city and county. (g) "Marine facility" means any facility of any kind, other than a vessel,whichthat 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 (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. Forthepurposes of this division, a drill ship, semisubmersible drilling platform, jack-up type drilling rig, or any other floating or temporary drilling platform is a "marine facility." Forthepurposes of this division, a small craft refueling dock is not a "marine facility." (h) "Marine terminal" means any marine facility used for transferring oil to or from tankers or barges. Forthepurposes of this section, a marine terminal includes all piping not integrally connected to a tank facility as defined in subdivision(k)(n) of Section 25270.2 of the Health and Safety Code. (i) "Marine waters" means those waters subject to tidal influence, except for waters in the Sacramento-San Joaquin Rivers and Delta upstream from a line running north and south through the point where Contra Costa, Sacramento, and Solano Counties meetand includes waterways used for waterborne commercial vessel traffic to the Port of Sacramento and the Port of Stockton . (j) "Nonpersistent oil" means a petroleum-based oil, such as gasoline, diesel, or jet fuel,whichthat evaporates relatively quickly. Specifically, it is an oil with hydrocarbon fractions, at least 50 percent of which, by volume, distills at a temperature of 645 degrees Fahrenheit, and at least 95 percent of which, by volume, distills at a temperature of 700 degrees Fahrenheit. (k) "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. ( l ) "Onshore facility" means any facility of any kindwhichthat is located entirely on lands not covered by marine waters. (m) "Operator" when used in connection with vessels, marine terminals, pipelines, or facilities, means any person or entitywhichthat owns, has an ownership interest in, charters, leases, rents, operates, participates in the operation of or uses that vessel, terminal, pipeline, or facility. "Operator" does not include any entitywhichthat owns the land underlying the facility or the facility itself, where the entity is not involved in the operations of the facility. (n) "Person" means an individual, trust, firm, joint stock company, or corporation, including, but not limited to, a government corporation, partnership, limited liability company, and association. "Person" also includes any 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. (o) "Pipeline" means any pipeline used at any time to transport oil. (p) "Responsible party" or "party responsible" means either 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 person who charters by demise, any vessel or marine facility or a person or entity accepting responsibility for the vessel or marine facility. (q) "Small craft refueling dock" means a fixed facility having tank storage capacity not exceeding 20,000 gallons in any single storage tank and that dispenses nonpersistent oil to small craft. (r) "Spill" or "discharge" means any release of at least one barrel (42 gallons) of oil not authorized by any federal, state, or local government entity. (s) "State 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 of Division 1 of Title 2 of the Government Code. (t) "Tanker" means any self-propelled, waterborne vessel, constructed or adapted for the carriage of oil in bulk or in commercial quantities as cargo. (u) "Vessel" means a tanker or barge as defined in this section. SEC. 3. 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.