Amended in Assembly June 13, 2014

Senate BillNo. 861


Introduced by Committee on Budget and Fiscal Review

January 9, 2014


begin deleteAn act relating to the Budget Act of 2014. end deletebegin insertAn act to amend Section 12025 of the Fish and Game Code, to amend Sections 8574.4, 8574.7, 8574.8, 8670.2, 8670.3, 8670.5, 8670.7, 8670.8, 8670.8.3, 8670.8.5, 8670.9, 8670.12, 8670.14, 8670.19, 8670.25, 8670.25.5, 8670.26, 8670.27, 8670.28, 8670.29, 8670.30.5, 8670.31, 8670.32, 8670.33, 8670.34, 8670.35, 8670.36, 8670.37, 8670.37.5, 8670.37.51, 8670.37.52, 8670.37.53, 8670.37.55, 8670.37.58, 8670.40, 8670.42, 8670.47.5, 8670.48, 8670.48.3, 8670.49, 8670.50, 8670.51, 8670.53, 8670.54, 8670.55, 8670.56.5, 8670.56.6, 8670.61.5, 8670.62, 8670.64, 8670.66, 8670.67, 8670.67.5, 8670.69.4, and 8670.71 of, to add Sections 8670.7.5, 8670.40.5, and 8670.95 to, and to repeal Section 8670.69.7 of, the Government Code, to amend Section 449 of the Harbors and Navigation Code, to amend and repeal Sections 116760.60, 116761.21, 116761.22, 116761.24, and 116761.80 of, and to amend, repeal, and add Sections 116760.10, 116760.20, 116760.30, 116760.39, 116760.40, 116760.42, 116760.43, 116760.44, 116760.46, 116760.50, 116760.55, 116760.70, 116760.79, 116760.80, 116760.90, 116761, 116761.20, 116761.23, 116761.40, 116761.50, 116761.60, 116761.62, 116761.65, 116761.70, 116761.85, 116762.60, and 131110 of, and to add Section 116271 to, the Health and Safety Code, to amend Sections 541.5, 2705, 3160, 3161, 4629.5, 4629.6, 4629.7, 4629.8, 5009, 5010.6, 5010.6.5, 5010.7, 14507.5, 14552, 14581, 21190, 31012, 42476, 42872.1, 42885.5, 42889, 48653, and 71116 of, to add Sections 14581.1 and 30821 to, to add Division 12.5 (commencing with Section 17000) to, and to add and repeal Article 1.5 (commencing with Section 5019.10) of Chapter 1 of Division 5 of, the Public Resources Code, to amend Sections 379.6, 1807, and 2851 of the Public Utilities Code, to amend Sections 46002, 46006, 46007, 46010, 46013, 46017, 46023, 46028, and 46101 of, to add Section 46001.5 to, to repeal Sections 46008, 46014, 46015, 46016, 46019, 46024, and 46025 of, and to repeal and add Sections 46011, 46018, and 46027 of, the Revenue and Taxation Code, to amend Section 5024 of the Vehicle Code, and to amend Sections 10783 and 13272 of, to amend, repeal, and add Sections 174, 13350, 13478, and 13485 of, and to add Section 13528.5 to, the Water Code, relating to public resources, and making an appropriation therefor, to take effect immediately, bill related to the budget.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 861, as amended, Committee on Budget and Fiscal Review. begin deleteBudget Act of 2014. end deletebegin insertPublic Resources: trailer bill.end insert

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(1) Existing law imposes an assessment on a person who purchases from a retailer a lumber product or an engineered wood product for the storage, use, or other consumption in this state. Existing law requires the retailer to collect the assessment from the person at the time of sale and authorizes the retailer to retain an amount, as determined by the State Board of Equalization via emergency regulations, for any costs associated with the collection of the assessment. Existing regulations, adopted by the state board at its September 10, 2013, meeting, provide that a retailer may retain no more than a total of $735 per location as reimbursement for startup costs associated with the collection of the assessment.

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This bill would codify the above regulations adopted at the September 10, 2013, state board meeting. The bill would delete the emergency regulatory authority granted to the state board, for purposes of determining the reimbursement amount.

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Existing law establishes the Timber Regulation and Forest Restoration Fund in the State Treasury, and requires that all revenues received from the assessments, less amounts deducted for specified refunds and reimbursements, be deposited into the fund and expended, upon appropriation, only for specified purposes including, among other things, to fund existing forest restoration grant programs.

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This bill would require, with respect to the existing forest restoration grant programs funding, that priority be given to the Fisheries Restoration Grant Program administered by the Department of Fish and Wildlife and to grant programs administered by state conservancies. The bill would also, until July 1, 2017, authorize the revenue in the fund to be used to provide loans to the Department of Fish and Wildlife for activities to address environmental damage occurring on forest lands resulting from marijuana cultivation, as provided. The bill would prohibit the use of moneys from the General Fund to repay the loans.

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(2) Existing law imposes various civil penalties for a violation of specified provisions of the Fish and Game Code in connection with the production or cultivation of a controlled substance, as defined, on land under the management of specified state and federal agencies or within the ownership of a timberland production zone as prescribed. Existing law requires all civil penalties collected to be apportioned as provided, including 40% of the funds to be distributed to the agency performing the cleanup or abatement of the cultivation or production site.

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This bill, among other things, would also impose various civil penalties for a violation of those specified provisions of the Fish and Game Code in connection with the production or cultivation of a controlled substance on land that the person owns, leases, or otherwise uses or occupies with the consent of the landowner. The bill would require all civil penalties imposed or collected by a court to be apportioned as provided, including 40% to the Timber Regulation and Forest Restoration Fund.

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This bill would also authorize the Department of Fish and Wildlife to impose those civil penalties administratively for those violations of the Fish and Game Code, subject to specified requirements relating to the complaint and hearing procedures, among other things. The bill would authorize the department to adopt regulations to implement these provisions and would require the penalties collected to be apportioned in a specified manner.

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(3) 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 directs the Governor to require the administrator to amend, not in conflict with the National Contingency Plan, the California oil spill contingency plan to add a marine oil spill contingency planning section containing specified elements, including an environmentally and ecologically sensitive areas element. Existing law also requires the administrator to adopt and implement regulations governing the adequacy of oil spill contingency plans to be prepared and implemented and requires the regulations to provide for the best achievable protection of coastal and marine waters. Existing law imposes various criminal and administrative civil penalties on a person that violates specified provisions of the act based on whether it was an oil spill or an inland oil spill.

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This bill would generally expand the act and the administrator’s responsibilities relating to oil spills to cover all waters of the state, as defined. By expanding the scope of crimes within the act, the bill would impose a state-mandated local program. The bill would direct the Governor to require the administrator to amend the California oil spill contingency plan to provide for the best achievable protection of all state waters, not solely coastal and marine waters, and to submit the plan to the Governor and the Legislature on or before January 1, 2017. The bill would require the regulations to provide for the best achievable protection of all waters and natural resources of the state. The bill would deem the adoption of regulations by the administrator and the State Board of Equalization an emergency for the purposes of the amendments made by this act. The bill would authorize the emergency regulations adopted by the administrator to be in effect for 12 months or until the administrator readopts those regulations, whichever is earlier. The bill, for purposes of administrative civil penalties, would no longer distinguish between an oil spill and an inland oil spill, subjecting all persons to the oil spill provisions. The bill also would revise various definitions within that act, and would make other conforming and technical changes.

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Existing law requires the administrator, upon request by a local government, to provide a program for training and certification of a local emergency responder designated as a local spill response manager by a local government with jurisdiction over or directly adjacent to waters of the state.

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This bill would make the program optional at the discretion of the administrator.

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Existing law requires the administrator to offer grants to a local government with jurisdiction over or directly adjacent to marine waters to provide oil spill response equipment to be deployed.

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This bill would instead authorize the administrator to offer the grants to a local government with jurisdiction over or directly adjacent to state waters.

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Existing law requires the administrator, within 5 working days after receipt of a contingency plan, prepared as specified, to send a notice that the plan is available for review to the Oil Spill Technical Advisory Committee.

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This bill instead would require the administrator, within 5 working days after receipt of a contingency plan, to post a notice that the plan is available for review.

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Existing law requires the administrator to establish a network of rescue and rehabilitation stations for sea birds, sea otters, and marine mammals affected by an oil spill in marine waters.

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This bill instead would require the administrator to establish a network of rescue, as specified, for wildlife injured by oil spills in waters of the state, including sea otters and other marine mammals. The bill also would authorize the administrator to establish additional stations or facilities in the interior of the state for the rescue and rehabilitation of wildlife affected by inland spills.

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Existing law imposes an oil spill prevention and administration fee in an amount determined by the administrator to be sufficient to implement oil spill prevention activities, but not to exceed $0.065 per barrel of crude oil or petroleum products and, beginning January 1, 2015, to an amount not to exceed $0.05, on persons owning crude oil or petroleum products at a marine terminal. 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.

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This bill would delete the provision that would reduce the fee beginning on January 1, 2015. The bill would additionally impose this fee on a person owning crude oil or petroleum products at the time the crude oil or petroleum products are received at a refinery, as specified, by any mode of delivery that passed over, across, under, or through waters of the state, whether from within or outside the state. The bill would create a rebuttable presumption that crude oil or petroleum products received at a marine terminal or refinery passed over, across, under, or through waters of the state, as specified. The bill would prohibit the State Board of Equalization from accepting or considering a petition for redetermination of fees or a claim for refund of fees if the claim is founded upon grounds the crude oil or petroleum products did or did not pass over, across, under, or through waters of the state, as specified. The bill would require the amendments made to these provisions by this act to be operative 90 days after the effective date of the act. The bill would authorize the Director of Finance to augment a specified appropriation in the Budget Act of 2014 for the reasonable costs incurred by the State Board of Equalization related to the collection of the oil spill prevention and administration fee, as specified, thereby making an appropriation.

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This bill would require every person who operates an oil refinery, marine terminal, or a pipeline to register with the State Board of Equalization.

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Existing law imposes a uniform oil spill response fee on specified persons, except specified independent crude oil producers, owning petroleum products and on pipeline operators transporting petroleum products into the state by means of a pipeline operating across, under, or through the marine waters of the state, during any period that the Oil Spill Response Trust Fund contains less than a designated amount. The money in the fund is continuously appropriated for specified purposes, including, to pay for the costs of rescue, medical treatment, rehabilitation, and disposition of oiled wildlife, as specified. Existing law authorizes a person to apply to the fund for compensation for damages and losses suffered as a result of an oil spill in the marine waters of the state under specified conditions.

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This bill would delete the fee exception for independent crude oil producers, and would delete the provision authorizing the moneys in the fund to be used to pay for the costs of rescue, medical treatment, rehabilitation, and disposition of oiled wildlife. The bill would additionally impose the fee on pipeline operators transporting petroleum products into the state by means of a pipeline operating across, under, or through any waters of the state, thereby making an appropriation by increasing the amount of moneys deposited into a continuously appropriated fund. The bill would authorize moneys in the fund to be used to respond to an imminent threat of a spill and would additionally authorize a person to apply to the fund for compensation for damages and losses suffered as a result of an oil spill in other waters of the state. By expanding the purposes of a continuously appropriated fund, the bill would make an appropriation.

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Existing law, until June 30, 2014, provides that if a loan or other transfer of money from the Oil Spill Response Trust Fund to the General Fund pursuant to the Budget Act reduces the balance of the fund to less than or equal to 95% of the designated amount, the administrator is not required to collect oil spill response fees if the annual Budget Act requires the transfer or loan to be repaid (A) to the fund with interest calculated at a rate earned by the Pooled Money Investment Account and (B) on or before June 30, 2014.

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This bill would extend that date to June 30, 2017, and would provide that these provisions would be repealed on July, 1, 2017.

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Existing law establishes the Oil Spill Technical Advisory Committee to provide public input and independent judgment of the actions of the administrator. The committee is composed of 10 members.

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This bill would increase the number of members from 10 to 14 and would require the Speaker of the Assembly and the Senate Committee on Rules to each appoint one additional member who has knowledge of environmental protection and the study of ecosystems, and also would require the Governor to appoint 2 additional members, with one having knowledge of the railroad industry and another having knowledge of the oil production industry.

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(4) Existing law requires all cities and counties to collect a fee from each applicant for a building permit, with each fee for Group R occupancies, as defined, assessed at the rate of $13 per $100,000, and all other buildings assessed at the rate of $21 per $100,000. Those fees are deposited in the Strong-Motion Instrumentation and Seismic Hazards Mapping Fund, for expenditure by the Department of Conservation, upon appropriation by the Legislature, to pay for seismic hazards mapping and for the strong-motion instrumentation program.

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This bill would increase the assessed fee for Group R occupancies to $13 per $100,000 and would also increase the assessed fee for all other buildings to $28 per $100,000. The bill would additionally authorize the department to use the moneys in the fund for the identification of earthquake fault zones in order to assist cities and counties in their planning, zoning, and building-regulation functions.

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(5) Existing law authorizes the Division of Oil, Gas, and Geothermal Resources in the Department of Conservation to regulate the drilling, operation, maintenance, and abandonment of oil and gas wells in the state. Existing law requires the division, on or before January 1, 2015, to finalize and implement regulations specific to well stimulation treatments, as defined.

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This bill would instead require the division to finalize those regulations on or before January 1, 2015, and would specify that those regulations shall become effective on July 1, 2015.

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Existing law requires an operator proposing to perform a well stimulation treatment to apply to the State Oil and Gas Supervisor or a district deputy for a permit to perform the well stimulation treatment. Existing law prohibits additional environmental review or additional mitigation measures for the well stimulation activities if the supervisor determines that activities proposed in the well stimulation permit have met the requirements of the California Environmental Quality Act.

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This bill would delete that prohibition.

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Existing law requires the State Water Resources Control Board, on or before July 1, 2015, to adopt model groundwater monitoring criteria to assess the potential effects of well stimulation treatments. Existing law provides that monitoring is not required for oil and gas wells if the wells do not penetrate exempt aquifers, as specified.

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This bill would instead provide that monitoring is not required if the wells solely penetrate those exempt aquifers.

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Existing law requires the state board or a regional water quality control board, on or before January 1, 2016, to begin implementation of regional groundwater monitoring programs based on the model groundwater monitoring criteria. In the absence of the implementation of a regional groundwater monitoring program, existing law authorizes a well owner or operator to develop an area-specific groundwater monitoring program based on the model groundwater monitoring criteria subject to the approval of the state board or a regional board. Existing law requires the well stimulation permit application to contain, among other things, information on a groundwater monitoring plan for the well subject to the well stimulation treatment which may be an existing regional groundwater monitoring program for the vicinity of the well, an existing area-specific groundwater monitoring plan for the vicinity of the well, or a well-specific monitoring plan that has been submitted to the appropriate regional board for review. Existing law authorizes the supervisor or district deputy to approve the permit application if the application is complete.

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This bill would authorize the supervisor or a district deputy, in the absence of the implementation of a regional groundwater monitoring program, to approve a well stimulation permit application prior to the approval of an area-specific groundwater monitoring program but would prohibit the commencement of well stimulation treatment pursuant to the permit until the approval of the area-specific groundwater monitoring program. Because a violation of this prohibition would be a crime, this bill would impose a state-mandated local program.

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Existing law authorizes the division to allow, until those regulations described above are finalized and implemented, well stimulation activities if specified requirements are met, including a requirement that the division conduct an environmental impact report pursuant to the California Environmental Quality Act. Existing law prohibits that report from conflicting with an environmental impact report conducted by a local lead agency that is certified on or before July 1, 2015. Existing law provides the division with emergency regulatory authority implementing the above purposes. Existing law requires emergency regulations be approved by the Office of Administrative Law.

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This bill would revise and recast those requirements and would delete the prohibition regarding the environmental impact report prepared by the division. The bill would prohibit the Office of Administrative Law from disapproving emergency regulations.

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(6) Existing law vests with the Department of Parks and Recreation control of the state park system, and provides funds for the support and administration of the department and specified park construction development, repair, and improvement projects. Existing law authorizes the Department of Finance to delegate to the Department of Parks and Recreation the right to exercise specified authority to plan, construct, and administer contracts and professional services for capital outlay projects, as specified. Existing law repeals this authority on January 1, 2019, unless a later enacted statute deletes or extends that date.

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This bill would establish the Parks Project Revolving Fund in the State Treasury, and would require, upon the approval of the Department of Finance, except as provided, the transfer to, or deposit in, the fund of all money appropriated, contributed, or made available from any source, including sources other than state appropriations, for expenditure on work within the powers and duties of the department with respect to the construction, alteration, repair, and improvement of state park facilities, as specified.

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This bill would make money transferred from state sources for major construction available to the department without regard to fiscal years and irrespective of specified limitations for encumbrance, thereby making an appropriation.

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These provisions would become inoperative on a date that is 3 years after the date the Department of Parks and Recreation’s authority to plan, construct, and administer contracts and professional services for capital outlay projects is repealed.

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Existing law appropriates $20,500,000 from the State Parks and Recreation Fund to the Department of Parks and Recreation, which is available for encumbrance for the 2012-13 and 2013-14 fiscal years and expended, as specified.

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This bill would make the above moneys available for encumbrance until June 30, 2016, and for liquidation until June 30, 2018, thereby making an appropriation.

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Existing law requires the Department of Parks and Recreation to develop a revenue generation program as an essential component of a long-term sustainable park funding strategy. Existing law requires the department, on or before October 1, 2012, to assign a 2-year revenue generation target to each district under the department’s control and authorizes the department to annually amend the revenue target. Existing law requires incremental revenue generated by the revenue generation program to be deposited into the State Parks and Recreation Fund. Existing law requires that revenue generated by the revenue generation program identified as being in excess of the revenue targets be transferred to the State Parks and Revenue Incentive Subaccount.

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This bill would require the department, on or before July 1, 2014, and annually thereafter, to assign a revenue generation target to each district under its control. This bill would instead require that revenue generated by the revenue generation program be deposited into the State Parks and Recreation Fund. The bill would require that the moneys be transferred from the fund to the State Parks Revenue Incentive Subaccount to be expended, as specified, thereby making an appropriation.

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Existing law establishes the California State Park Enterprise Fund and upon appropriation by the Legislature, makes moneys in the fund available to the Department of Parks and Recreation for specified purposes. Existing law makes the moneys in the fund available for encumbrance and expenditure until June 30, 2014, and for liquidation until June 30, 2016. Existing law authorizes the department to deposit moneys received from private contributions and other public funding sources into the fund.

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This bill would extend the time period in which moneys in the fund are available for encumbrance and expenditure to June 30, 2019, and for liquidation to June 30, 2021. The bill would instead authorize the Department of Parks and Recreation to expend moneys in the fund for capital outlay or support expenditures for revenue generation investments in state parks, as specified. The bill would require the department to prepare guidelines for districts to apply for funds for capital projects. The bill would instead authorize the department to deposit moneys received from private contributions and other public funding sources into the State Parks Revenue Incentive Subaccount.

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Existing law establishes, until June 30, 2021, the State Parks Revenue Incentive Subaccount, a continuously appropriated subaccount, and requires the Controller to transfer annually $15,340,000 from the State Parks and Recreation Fund to the subaccount. Existing law authorizes the Department of Parks and Recreation to expend these moneys for capital outlay projects that are consistent with the mission of the department. Existing law prohibits the Department of Parks and Recreation from expending annually more than $11,000,000 from the subaccount. Existing law makes the moneys in the subaccount available for encumbrance until June 30, 2019, and for liquidate until June 30, 2016. Existing law require the Controller, on July 1, 2026, to transfer any unexpended funds remaining in the subaccount to the State Parks and Recreation Fund.

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This bill would extend the time period in which the moneys in the subaccount are available for encumbrance to June 30, 2016, and for liquidation to June 30, 2021. The bill would extend the duration of the subaccount to June 30, 2021, and would require the Controller, on July 1, 2021, to transfer any unexpended moneys in the subaccount to the State Parks and Recreation Fund. The bill would reduce the amount of moneys to be transferred from the fund to the subaccount to $4,340,000, thereby making an appropriation. The bill would revise and recast provision governing the expenditure from the subaccount to, among other things, authorize expenditures for activities, programs, and projects that increase the Department of Parks and Recreation’s capacity to generate revenue and to implement revenue generation programs, thereby making an appropriation.

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Existing law establishes the State Park Contingent Fund and requires that moneys derived from gifts, bequests, or county or municipal appropriations or donations be deposited in the fund and used for the improvement or administration of state parks or the acquisition of additional lands and properties, in accordance with the terms of the gift, bequest, appropriation, or donation.

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This bill would instead require moneys from contractual agreements, donations, gifts, bequests, or local government appropriations be deposited in the fund and specify that the moneys deposited shall also be used for the maintenance and operation of the state parks, in accordance with the terms of the agreement, donation, gift, bequest, or local government appropriation. This bill would also make various technical, nonsubstantive changes.

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(7) Existing law, the California Beverage Container Recycling and Litter Reduction Act, requires a distributor of specified beverage containers to pay a redemption payment to the Department of Resources Recycling and Recovery for each beverage container sold or transferred to a dealer, for deposit in the California Beverage Container Recycling Fund (beverage fund). Existing law annually appropriates from the fund, among other things, $15,000,000, adjusted for cost of living, to the department, for grants to certified community conservation corps and community conservation corps for beverage container litter reduction programs and recycling programs, subject to reduction if the department determines there are insufficient funds. Under existing law, the Electronic Waste Recycling Act of 2003 requires a retailer selling a covered electronic device in this state to collect an electronic waste recycling fee, the revenues of which are deposited in the Electronic Waste Recovery and Recycling Account. The California Tire Recycling Act imposes a California tire fee on a new tire purchased in the state and the revenue generated from the fee is deposited in the California Tire Recycling Management Fund. The California Oil Recycling Enhancement Act imposes a charge on oil manufacturers, the revenues of which are deposited in the California Used Oil Recycling Fund for purposes of the used oil recycling program.

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This bill would, upon appropriation by the Legislature, require the department to issue grants to the corps, as follows: (A) $4,000,000 for the 2014-15 fiscal year and $8,000,000 each fiscal year thereafter, from funds in the Electronic Waste Recovery and Recycling Account for the corps to implement programs relating to the collection and recovery of covered electronic waste, (B) $2,500,000 for the 2014-15 fiscal year and $5,000,000 each fiscal year thereafter, from funds in the California Tire Recycling Management Fund for grants relating to implementing programs to cleanup and abate waste tires and to reuse and recycle waste tires, and (C) $1,000,000 for the 2014-15 fiscal year and $2,000,000 each fiscal year thereafter, from funds in the California Used Oil Recycling Fund for the corps for grants to implement programs relating to the collection of used oil. The bill would, instead of the $15,000,000, as adjusted for cost of living, referenced above, provide that the amount required to be expended from the beverage fund for grants to the corps for beverage container litter reduction programs and recycling programs is $20,974,000, as adjusted for cost of living, less $15,000,000, augmented by $7,500,000 for the 2014-15 fiscal year only. The bill would make an appropriation by changing the conditions under which moneys are continuously appropriated to the corps from the beverage fund.

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The California Beverage Container Recycling and Litter Reduction Act requires the department to establish and implement an auditing system to ensure that information collected, and refund values and redemption payments paid, comply with the purposes of the act. The act authorizes the department to audit and investigate any action taken up to 3 years before the onset of the audit or investigation and authorizes the department to take an enforcement action at any time within 2 years after the department discovers, or should have discovered, a violation of the act. A violation of the act is a crime and is punishable by a fine, as specified.

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This bill would extend the department’s authorization to audit or investigate an action to 5 years before the onset of the audit or investigation and would expand the department’s authorization to take an enforcement action to 5 years after the department discovers, or should have discovered, a violation of the act.

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(8) Existing law, the Rubberized Asphalt Concrete Market Development Act, requires the Department of Resources Recycling and Recovery, in accordance with the tire recycling program, to award grants for certain public agency projects that utilize rubberized asphalt concrete, pursuant to specified conditions.

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This bill would rename this act the Rubberized Pavement Market Development Act, and would instead require the department to award grants for those public agency projects that utilize rubberized pavement, in accordance with those conditions.

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(9) Existing law, the California Coastal Act of 1976, establishes the California Coastal Commission and declares that the California coastal zone is a distinct and valuable natural resources of vital and enduring interest and exists as a delicately balanced ecosystem. Existing law establishes the San Francisco Bay Conservation and Development Commission to regulate fill and development within a specified area in and along the shoreline of the San Francisco Bay, and to implement a comprehensive plan for the preservation and protection of the Suisun Marsh. Existing law establishes the State Coastal Conservancy in the Natural Resources Agency and authorizes the conservancy to acquire, manage, direct the management of, and conserve specified coastal lands and wetlands in the state. Existing law establishes the Coastal Trust Fund in the State Treasury to receive and disburse funds paid to the conservancy in trust. Existing law authorizes the conservancy to expend the moneys in the fund for purposes of the San Francisco Bay Area Conservancy Program and for other specified purposes.

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This bill would establish the California Climate Resilience Account in the Coastal Trust Fund and would continuously appropriate funds in the account, except as specified, to the State Coastal Conservancy, for expenditure by the State Coastal Conservancy, the California Coastal Commission, and the San Francisco Bay Conservation and Development Commission for coastal zone management planning and implementation activities to address the risks and impacts of climate change. The bill would require that funds be allocated to these 3 agencies according to a specific formula, except as specified, and would allow up to 10% of the funds to be available for administrative costs. The bill would require that funds in the account be spent solely for their specified purposes and would require, to the extent that any funds are appropriated into the account by the Legislature in the annual Budget Act, those funds be segregated for purposes of accounting.

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The California Coastal Act of 1976 requires a person undertaking development in the coastal zone to obtain a coastal development permit in accordance with prescribed procedures. Existing law authorizes the superior court to impose civil liability on a person who performs or undertakes development that is in violation of the act or that is inconsistent with a previously issued coastal development permit, and on a person who violates the act in any other manner.

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This bill would authorize the California Coastal Commission to impose upon a person who violates the public access provisions of the act an administrative civil penalty, by a majority vote of the commissioners, upon consideration of various factors, and in an amount not to exceed 75% of the maximum civil penalty that may be imposed in the superior court. The bill would authorize the penalty to be assessed for each day the violation persists, but for no more than 5 years. The bill would prohibit a person from being subject to both this monetary civil liability imposed by the commission and a monetary civil liability imposed by the superior court for the same act or failure to act. The bill would also allow the commission to record a lien on the property of a violator in the amount of the penalty assessed by the commission if the violator fails to pay the penalty. The bill would prohibit the assessment of administrative penalties in certain cases if the property owner corrects the violations.

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(10) Existing law establishes the California Environmental Protection Program, which provides funding for various environmental protection purposes including, among other things, projects and programs related to pollution control, land acquisitions for natural areas or ecological reserves, environmental education, and the protection and preservation of wildlife. Existing law authorizes the issuance of environmental license plates, as defined, for vehicles, upon application and payment of certain fees, and requires that specified revenue derived from those fees for issuance, renewal, retention, duplication, and transfer of the environmental license plates be deposited in the California Environmental License Plate Fund in the State Treasury, and used, upon appropriation by the Legislature, for specified program purposes.

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This bill would additionally authorize the expenditure of moneys in the fund that are available for the program, upon appropriation by the Legislature, for scientific research on the risks to California’s natural resources and communities caused by the impacts of climate change.

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Existing law requires the Department of Motor Vehicles (DMV) to issue special commemorative collegiate reflectorized license plates upon the request of the owner of the vehicle for which the plates are issued. Existing law imposes certain additional fees for the issuance, renewal, transfer, and replacement of the plates, and requires the DMV, after deducting its costs, to deposit 50% of the fees into the Resources License Plate Fund. Under existing law, moneys in the Resources License Plate Fund are available, upon appropriation, for the purposes of natural resources preservation, enhancement, and restoration.

end insert
begin insert

Existing law also authorizes the DMV to issue environmental license plates and imposes certain fees for the issuance, renewal, and transfer of those plates. Existing law requires those fees to be deposited in the California Environmental License Plate Fund, and makes moneys in the fund available, upon appropriation, for certain purposes relating to the preservation and protection of the state’s environment.

end insert
begin insert

This bill would abolish the Resources License Plate Fund and would transfer moneys in that fund to the California Environmental License Plate Fund effective July 1, 2014. The bill would also update a cross-reference and delete obsolete provisions.

end insert
begin insert

(11) Existing law establishes the Environmental Justice Small Grant Program and authorizes the California Environmental Protection Agency to award grants to eligible community groups located in areas adversely affected by environmental pollution and hazards that work to address environmental justice issues. Existing law establishes the maximum amount of a grant to not exceed $20,000. Existing law provides that the above provision is to be implemented only during fiscal years for which an appropriation is provided for in the annual Budget Act or in another statute for the above purpose.

end insert
begin insert

This bill would increase the maximum amount of a grant to not exceed $50,000. This bill would instead authorize the Secretary for Environmental Protection to expend up to $1,500,000 per year for the above purposes. The bill would authorize the boards, departments, and offices within the agency to allocate funds from various special funds, settlements, and penalties to implement the program.

end insert
begin insert

(12) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical corporations, as defined. Existing law requires the Public Utilities Commission to require the administration, until January 1, 2016, of a self-generation incentive program for distributed generation resources. Existing law authorizes the Public Utilities Commission, in consultation with the State Energy Resources Conservation and Development Commission, to authorize electrical corporations to annually collect not more than the amount authorized for the program in the 2008 calendar year through December 31, 2014.

end insert
begin insert

This bill would extend the authority of the Public Utilities Commission to authorize the electrical corporations to continue making the annual collection through December 31, 2019. The bill would extend the administration of the program to January 1, 2021.

end insert
begin insert

Existing law limits eligibility for incentives under the self-generation incentive program to distributed energy resources that the Public Utilities Commission, in consultation with the State Air Resources Board, determines will achieve reductions in emissions of greenhouse gases pursuant to the California Global Warming Solutions Act of 2006.

end insert
begin insert

This bill would further limit eligibility for incentives under the self-generation incentive program to distributed energy resource technologies that the Public Utilities Commission determines meet specified additional requirements. The bill would require the commission to determine a capacity factor for each distributed generation system energy resource technology in the program.

end insert
begin insert

This bill would require the Public Utilities Commission to evaluate the self-generation incentive program’s overall success and impact based on specified performance measures.

end insert
begin insert

This bill would require the Public Utilities Commission, on or before July 1, 2015, to update the factor for avoided greenhouse gas emissions based on certain information. The bill would require the Public Utilities Commission, in allocating funds between eligible technologies, to consider the relative amount and cost of certain factors. The bill would require recipients of the self-generation incentive program funds to provide to the Public Utilities Commission and the State Air Resources Board relevant data and would subject them to inspection to verify equipment operation and performance.

end insert
begin insert

Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.

end insert
begin insert

Because a violation of the requirements of the program that would be extended under the provisions of this bill would be a crime, this bill would impose a state-mandated local program.

end insert
begin insert

(13) Existing law provides compensation for reasonable advocate’s fees, reasonable expert witness fees, and other reasonable costs to public utility customers of participation or intervention in any proceeding of the Public Utilities Commission. Existing law requires an award for that compensation be paid by the public utility that is the subject of the hearing, investigation, or proceeding within 30 days. Existing law provides that an award shall be allowed by the commission as an expense for the purpose of establishing rates of the public utility. Under existing law, an existing decision of the commission establishes the intervenor compensation program fund for quasi-legislative or rulemaking proceedings funded through commission reimbursement fees collected on an annual basis from electrical, gas, telephone, and water corporations.

end insert
begin insert

This bill would authorize the commission to pay to the Avondale Glen Elder Neighborhood Association the difference between the amount received from the bankruptcy court and the amount awarded by the commission by increasing the fees collected pursuant to these provisions for the limited purpose of that specified decision.

end insert
begin insert

(14) Decisions of the Public Utilities Commission adopted the California Solar Initiative administered by the state’s 3 largest electrical corporations and subject to the commission’s supervision. Existing law specifies that the financial components of the California Solar Initiative consist of, among other programs, the New Solar Homes Partnership Program, which is administered by the State Energy Resources Conservation and Development Commission (Energy Commission). Existing law requires the program to be funded by charges in the amount of $400,000,000 collected from customers of those electrical corporations. If moneys from the Renewable Resource Trust Fund for the program is exhausted, existing law authorizes the Public Utilities Commission, upon notification by the Energy Commission, to require those electrical corporations to continue the administration of the program pursuant to the guidelines established by the Energy Commission for the program until the above monetary limit is reached.

end insert
begin insert

This bill would additionally require that the Public Utilities Commission be notified by the Energy Commission that other funding sources for the program have been exhausted before requiring those electrical corporations to continue administration of the program until the monetary limit is reached.

end insert
begin insert

(15) Existing law, including the California Safe Drinking Water Act, provides for the operation of public water systems and imposes on the State Department of Public Health various duties and responsibilities for the regulation and control of drinking water in the State of California. Existing law requires the department to conduct research, studies, and demonstration projects relating to the provision of a dependable, safe supply of drinking water, to adopt regulations to implement the state act, and to enforce provisions of the federal Safe Drinking Water Act.

end insert
begin insert

The Safe Drinking Water State Revolving Fund Law of 1997 establishes the Safe Drinking Water State Revolving Fund to provide grants or revolving fund loans for the design and construction of projects for public water systems that will enable suppliers to meet safe drinking water standards. Under that law, the department is required to undertake specified actions to implement the fund, including entering into agreements with the federal government for federal contributions to the fund.

end insert
begin insert

This bill would, effective July 1, 2014, transfer to the State Water Resources Control Board the authority, duties, powers, purposes, functions, responsibilities, and jurisdiction of the department for the purposes of the administration of specified drinking water programs. The bill would require the state board to appoint a deputy director, as specified, for drinking water programs.

end insert
begin insert

The bill would, among other things, authorize the board, in order to administer the fund, to engage in the transfer of capitalization grant funds, as specified, and to cross-collateralize revenue bonds with the State Water Pollution Control Revolving Fund. The bill would also authorize the board to implement the provisions of the Safe Drinking Water State Revolving Fund Law of 1997 through a policy handbook, as specified, and make the repeal of, or operation of, various provisions of law contingent upon the adoption of the policy handbook. The bill would make various other changes.

end insert
begin insert

The Budget Act of 2003 makes available to the State Department of Public Health $15,000,000 for encumbrance until June 30, 2016, for the purposes of providing grants of up to $500,000 per project for public water systems to address drought-related drinking water emergencies or threatened emergencies.

end insert
begin insert

This bill would appropriate the unencumbered balance of the above moneys to the State Water Resources Control Board for the above purposes. The bill would require the board to make every effort to use other funds available to address drinking water emergencies before using the moneys transferred.

end insert
begin insert

(16) Under existing law, the State Water Resources Control Board and the California regional water quality control boards prescribe waste discharge requirements in accordance with the federal Clean Water Act and the Porter-Cologne Water Quality Control Act. The state act imposes various penalties for a violation of its requirements. The state act requires specified penalties be deposited into the Waste Discharge Permit Fund and separately accounted. The state act requires moneys in the fund, upon appropriation, to be expended by the state board to assist regional boards and prescribed other public agencies in cleaning up or abating the effects of waste on waters of the state or to assist a regional board attempting to remedy a significant unforeseen water pollution problem.

end insert
begin insert

This bill would, until July 1, 2017, authorize up to $500,000 per fiscal year from the moneys in the fund, upon appropriation, to be expended to assist the Department of Fish and Wildlife to address the impacts of marijuana cultivation on the natural resources of the state.

end insert
begin insert

(17) 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.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert
begin insert

(18) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

end insert
begin delete

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2014.

end delete

Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: begin deleteno end deletebegin insertyesend insert.

The people of the State of California do enact as follows:

P20   1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 12025 of the end insertbegin insertFish and Game Codeend insertbegin insert is
2amended to read:end insert

3

12025.  

(a) In addition to any penalties imposed by any other
4law, a person found to have violated Section 1602, 5650, or 5652
5in connection with the production or cultivation of a controlled
6substance on land under the management of the Department of
7Parks and Recreation, the Department of Fish and Wildlife, the
8Department of Forestry and Fire Protection, the State Lands
9Commission, a regional park district, the United States Forest
10Service, or the Bureau of Land Management, or within the
11respective ownership of a timberland production zone, as defined
12in Chapter 6.7 (commencing with Section 51100) of Division 1 of
13Title 5 of the Government Code, of more than 50,000 acres,begin insert or
14while trespassing on other public or private land in connection
15with the production or cultivation of a controlled substance,end insert
shall
16be liable for a civil penalty in the following amounts:

17(1) A person who violates Section 1602 in connection with the
18production or cultivation of a controlled substance is subject to a
19civil penalty of not more than ten thousand dollars ($10,000) for
20each violation.

21(2) A person who violates Section 5650 in connection with the
22production or cultivation of a controlled substance is subject to a
23civil penalty of not more than forty thousand dollars ($40,000) for
24each violation.

25(3) A person who violates Section 5652 in connection with the
26production or cultivation of a controlled substance is subject to a
27civil penalty of not more than forty thousand dollars ($40,000) for
28each violation.

begin insert

29(b) (1) In addition to any penalties imposed by any other law,
30a person found to have violated Section 1602, 5650, or 5652 in
31connection with the production or cultivation of a controlled
32substance on land that the person owns, leases, or otherwise uses
33or occupies with the consent of the landowner may be liable for a
34civil penalty in the following amounts:

end insert
begin insert

35(A) A person who violates Section 1602 in connection with the
36production or cultivation of a controlled substance is subject to a
37civil penalty of not more than eight thousand dollars ($8,000) for
38each violation.

end insert
begin insert

P21   1(B) A person who violates Section 5650 in connection with the
2production or cultivation of a controlled substance is subject to a
3civil penalty of not more than twenty thousand dollars ($20,000)
4for each violation.

end insert
begin insert

5(C) A person who violates Section 5652 in connection with the
6production or cultivation of a controlled substance is subject to a
7civil penalty of not more than twenty thousand dollars ($20,000)
8for each violation.

end insert
begin insert

9(2) Each day that a violation of Section 1602, 5650, or 5652
10described in this subdivision occurs or continues to occur shall
11constitute a separate violation.

end insert
begin delete

12(b)

end delete

13begin insert(c)end insert The civil penalty imposed for each separate violation
14pursuant to this section is in addition to any other civil penalty
15imposed for another violation of this section, or any violation of
16any other law.

begin delete

17(c)

end delete

18begin insert(d)end insert All civil penaltiesbegin insert imposed orend insert collectedbegin insert by a courtend insert for a
19separate violation pursuant to this section shall not be considered
20to be fines or forfeitures, as described in Section 13003, and shall
21be apportioned in the following manner:

22(1) Thirty percent shall be distributed to the county in which
23the violation was committed pursuant to Section 13003. The county
24board of supervisors shall first use any revenues from those
25penalties to reimburse the costs incurred by the district attorney
26or city attorney in investigating and prosecuting the violation.

27(2) begin insert(A)end insertbegin insertend insertThirty percent shall be distributed to the investigating
28agency to be used to reimburse the cost of any investigation directly
29related to the violations described in this section.

begin insert

30(B) If the department receives reimbursement pursuant to this
31paragraph for activities funded pursuant to subdivision (f) of
32Section 4629.6 of the Public Resources Code, the reimbursement
33funds shall be deposited into the Timber Regulation and Forest
34Restoration Fund, created by Section 4629.3 of the Public
35Resources Code, if there is an unpaid balance for a loan authorized
36by subdivision (f) of Section 4629.6 of the Public Resources Code.

end insert

37(3) Forty percent shall bebegin delete distributed to the agency performing
38the cleanup or abatement of the cultivation or production site for
39the reimbursement for all reasonable costs associated with the
40cleanup or abatement.end delete
begin insert deposited into the Timber Regulation and
P22   1Forest Restoration Fund, created by Section 4629.3 of the Public
2Resources Code, and used for grants authorized pursuant to
3Section 4629.6 of the Public Resources Code that improve forest
4health by remediating former marijuana growing operations.end insert

begin insert

5(e) Civil penalties authorized pursuant to this section may be
6imposed administratively by the department if all the following
7occur:

end insert
begin insert

8(1) The chief deputy director or law enforcement division
9assistant chief in charge of marijuana-related enforcement issues
10a complaint to any person or entity on which an administrative
11civil penalty may be imposed pursuant to this section. The
12complaint shall allege the act or failure to act that constitutes a
13violation, any facts related to natural resources impacts, the
14provision of law authorizing the civil penalty to be imposed, and
15the proposed penalty amount.

end insert
begin insert

16(2) The complaint and order is served by personal notice or
17certified mail and informs the party served that the party may
18request a hearing no later than 20 days from the date of service.
19If a hearing is requested, it shall be scheduled before the director
20or his or her designee, which designee shall not be the chief deputy
21or assistant chief issuing the complaint and order. A request for
22a hearing shall contain a brief statement of the material facts the
23party claims support his or her contention that no administrative
24penalty should be imposed or that an administrative penalty of a
25lesser amount is warranted. A party served with a complaint
26pursuant to this subdivision waives the right to a hearing if no
27hearing is requested within 20 days of service of the complaint, in
28which case the order imposing the administrative penalty shall
29become final.

end insert
begin insert

30(3) The director, or his or her designee, shall control the nature
31and order of hearing proceedings. Hearings shall be informal in
32nature, and need not be conducted according to the technical rules
33relating to evidence. The director or his or her designee shall issue
34a final order within 45 days of the close of the hearing. A final
35copy of the order shall be served by certified mail upon the party
36served with the complaint.

end insert
begin insert

37(4) A party may obtain review of the final order by filing a
38petition for a writ of mandate with the superior court within 30
39days of the date of service of the final order. The administrative
40penalty shall be due and payable to the department within 60 days
P23   1after the time to seek judicial review has expired, or, where the
2party has not requested a hearing of the order, within 20 days
3after the order imposing an administrative penalty becomes final.

end insert
begin insert

4(5) The department may adopt regulations to implement this
5subdivision.

end insert
begin insert

6(f) All administrative penalties imposed or collected by the
7department for a separate violation pursuant to this section shall
8not be considered to be fines or forfeitures, as described in Section
913003, and shall be deposited into the Timber Regulation and
10Forest Restoration Fund, created by Section 4629.3 of the Public
11Resources Code, to repay any unpaid balance of a loan authorized
12by subdivision (f) of Section 4629.6 of the Public Resources Code.
13Any remaining funds from administrative penalties collected
14pursuant to this section shall be apportioned in the following
15manner:

end insert
begin insert

16(1) Fifty percent shall be deposited into the Timber Regulation
17and Forest Restoration Fund for grants authorized pursuant to
18subdivision (h) of Section 4629.6 of the Public Resources Code,
19with priority given to grants that improve forest health by
20remediating former marijuana growing operations.

end insert
begin insert

21(2) Fifty percent shall be deposited into the Fish and Game
22Preservation Fund.

end insert
begin delete

23(d)

end delete

24begin insert(g)end insert For purposes of this section, “controlled substance” has the
25same meaning as defined in Section 11007 of the Health and Safety
26Code.

27begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 8574.4 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
28to read:end insert

29

8574.4.  

State agencies designated to implement the contingency
30plan shall account for all state expenditures made under the plan
31with respect to each oil spill. Expenditures accounted for under
32this section from an oil spill inbegin delete marineend delete watersbegin insert of the stateend insert shall be
33paid from the Oil Spill Response Trust Fund created pursuant to
34Section 8670.46. All other expenditures accounted for under this
35section shall be paid from the State Water Pollution Cleanup and
36Abatement Account in the State Water Quality Control Fund
37provided for in Article 3 (commencing with Section 13440) of
38Chapter 6 of Division 7 of the Water Code. If the party responsible
39for the spill is identified, that party shall be liable for the
40expenditures accounted for under this section, in addition to any
P24   1other liabilitybegin delete whichend deletebegin insert thatend insert may be provided for by law, in an action
2brought by the Attorney General. The proceeds from anybegin delete suchend delete
3 action for a spill in marine waters shall be paid into the Oil Spill
4Response Trust Fund.

5begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 8574.7 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
6to read:end insert

7

8574.7.  

The Governor shall require the administrator, not in
8conflict with the National Contingency Plan, to amend the
9California oil spill contingency planbegin delete by adding a marine oil spill
10contingency planning section that providesend delete
begin insert to provideend insert for the best
11achievable protection ofbegin delete the coast and marineend delete watersbegin insert of the stateend insert.
12“Administrator” for purposes of this section means the
13administrator appointed by the Governor pursuant to Section
148670.4. Thebegin delete marine oil spill contingency planning sectionend deletebegin insert planend insert
15 shall consist of all of the following elements:

16(a) A statebegin delete marineend delete response element that specifies the hierarchy
17for state and local agency response to an oil spill. The element
18shall define the necessary tasks for oversight and control of cleanup
19and removal activities associated withbegin delete a marineend deletebegin insert anend insert oil spill and
20shall specify each agency’s particular responsibility in carrying
21out these tasks. The element shall also include an organizational
22chart of the statebegin delete marineend delete oil spill response organization and a
23definition of the resources, capabilities, and response assignments
24of each agency involved in cleanup and removal actions inbegin delete a marineend delete
25begin insert anend insert oil spill.

26(b) A regional and local planning element that shall provide the
27framework for the involvement of regional and local agencies in
28the state effort to respond tobegin delete a marineend deletebegin insert anend insert oil spill, and shall ensure
29the effective and efficient use of regional and local resourcesbegin insert, as
30appropriate,end insert
in all of the following:

31(1) Traffic and crowd control.

32(2) Firefighting.

33(3) Boating traffic control.

34(4) Radio and communications control and provision of access
35to equipment.

36(5) Identification and use of available local and regional
37equipment or other resources suitable for use in cleanup and
38removal actions.

P25   1(6) Identification of private and volunteer resources or personnel
2with special or unique capabilities relating tobegin delete marineend delete oil spill
3cleanup and removal actions.

4(7) Provision of medical emergency services.

5(8) Consideration of the identification and use of private working
6craft and mariners, including commercial fishing vessels and
7licensed commercial fishing men and women, in containment,
8cleanup, and removal actions.

9(c) A coastal protection element that establishes the state
10standards for coastline protection. The administrator, in
11consultation with the Coast Guard and Navy and the shipping
12industry, shall develop criteria for coastline protection. If
13appropriate, the administrator shall consult with representatives
14from the States of Alaska, Washington, and Oregon, the Province
15of British Columbia in Canada, and the Republic of Mexico. The
16criteria shall designate at least all of the following:

17(1) Appropriate shipping lanes and navigational aids for tankers,
18barges, and other commercial vessels to reduce the likelihood of
19collisions between tankers, barges, and other commercial vessels.
20Designated shipping lanes shall be located off the coastline at a
21distance sufficient to significantly reduce the likelihood that
22disabled vessels will run aground along the coast of the state.

23(2) Ship position reporting and communications requirements.

24(3) Required predeployment of protective equipment for
25sensitive environmental areas along the coastline.

26(4) Required emergency response vessels that are capable of
27preventing disabled tankers from running aground.

28(5) Required emergency response vessels that are capable of
29commencing oil cleanup operations before spilled oil can reach
30the shoreline.

31(6) An expedited decisionmaking process for dispersant use in
32coastal waters. Prior to adoption of the process, the administrator
33shall ensure that a comprehensive testing program is carried out
34for any dispersant proposed for use in California marine waters.
35The testing program shall evaluate toxicity and effectiveness of
36the dispersants.

37(7) Required rehabilitation facilities for wildlife injured by
38spilled oil.

P26   1(8) An assessment of how activities that usually require a permit
2from a state or local agency may be expedited or issued by the
3administrator in the event of an oil spill.

4(d) An environmentally and ecologically sensitive areas element
5that shall provide the framework for prioritizing and ensuring the
6protection of environmentally and ecologically sensitive areas.
7The environmentally and ecologically sensitive areas element shall
8be developed by the administrator, in conjunction with appropriate
9local agencies, and shall include all of the following:

10(1) Identification and prioritization of environmentally and
11ecologically sensitive areas inbegin delete marineend deletebegin insert stateend insert waters and along the
12coast. Identification and prioritization of environmentally and
13ecologically sensitive areas shall not prevent or excuse the use of
14all reasonably available containment and cleanup resources from
15being used to protect every environmentally and ecologically
16sensitive area possible. Environmentally and ecologically sensitive
17areas shall be prioritized through the evaluation of criteria,
18including, but not limited to, all of the following:

19(A) Risk of contamination by oil after a spill.

20(B) Environmental, ecological, recreational, and economic
21importance.

22(C) Risk of public exposure should the area be contaminated.

23(2) Regional maps depicting environmentally and ecologically
24sensitive areas inbegin delete marineend deletebegin insert stateend insert waters or along the coast that shall
25be distributed to facilities and local and state agencies. The maps
26shall designate those areas that have particularly high priority for
27protection against oil spills.

28(3) A plan for protection actions required to be taken in the
29event of an oil spill for each of the environmentally and
30ecologically sensitive areas and protection priorities for the first
3124 to 48 hours after an oil spill shall be specified.

32(4) The location of available response equipment and the
33availability of trained personnel to deploy the equipment to protect
34the priority environmentally and ecologically sensitive areas.

35(5) A program for systemically testing and revising, if necessary,
36protection strategies for each of the priority environmentally and
37ecologically sensitive areas.

38(6) Any recommendations for action that cannot be financed or
39implemented pursuant to existing authority of the administrator,
P27   1which shall also be reported to the Legislature along with
2recommendations for financing those actions.

begin delete

3(e) This section shall become operative on January 1, 2012.

end delete
begin insert

4(e) A reporting element that requires the reporting of spills of
5any amount of oil in or on state waters.

end insert
6begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 8574.8 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
7to read:end insert

8

8574.8.  

(a) The administrator shall submit to the Governor
9and the Legislature an amended California oil spill contingency
10plan required, pursuant to Section 8574.7, by January 1, 1993. The
11administrator shall thereafter submit revised plans every three
12years, until the amended plan required pursuant to subdivision (b)
13is submitted.

14(b) The administrator shall submit to the Governor and the
15Legislature an amended California oil spill contingency plan
16required pursuant to Section 8574.7,begin delete byend deletebegin insert on or beforeend insert January 1,
17begin delete 2010,end deletebegin insert 2017,end insert thatbegin delete consists of both aend deletebegin insert addressesend insert marinebegin delete oil spill
18contingency planning section and anend delete
begin insert andend insert inland oilbegin delete spill
19contingency planning section.end delete
begin insert spills.end insert The administrator shall
20thereafter submit revised plans every three years.

21begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 8670.2 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
22to read:end insert

23

8670.2.  

The Legislature finds and declares as follows:

24(a) Each year, billions of gallons of crude oil and petroleum
25products are transported by vesselbegin insert, railroad, truck,end insert or pipeline
26begin insert over,end insert acrossbegin insert, under,end insert and through thebegin delete marineend delete waters of this state.

27(b) Recent accidents in southern California, Alaska,begin delete andend delete other
28parts of the nationbegin insert, and Canada,end insert have shown thatbegin delete marineend delete
29 transportation of oil can be a significant threat to the environment
30of sensitivebegin delete coastalend delete areas.

31(c) Existing prevention programs are not able to reduce
32sufficiently the risk of significant discharge of petroleum into
33begin delete marineend deletebegin insert stateend insert waters.

34(d) Response and cleanup capabilities and technology are unable
35to remove consistently the majority of spilled oil when major oil
36spills occur inbegin delete marineend deletebegin insert stateend insert waters.

37(e) California’sbegin insert lakes, rivers, other inland waters,end insert coastal waters,
38estuaries, bays, and beaches are treasured environmental and
39economic resourcesbegin delete whichend deletebegin insert thatend insert the state cannot afford to place at
40undue risk from an oil spill.

P28   1(f) Because of the inadequacy of existing cleanup and response
2measures and technology, the emphasis must be put on prevention,
3if the risk and consequences of oil spills are to be minimized.

4(g) Improvements in the design, construction, and operation of
5begin insert rail tank cars, tank trucks,end insert tank ships, terminals, and pipelines;
6improvements in marine safety; maintenance of emergency
7response stations and personnel; and stronger inspection and
8enforcement efforts are necessary to reduce the risks of and from
9a major oil spill.

10(h) A major oil spill inbegin delete marineend deletebegin insert stateend insert waters is extremely
11expensive because of the need to clean up discharged oil, protect
12sensitive environmental areas, and restore ecosystem damage.

13(i) Immediate action must be taken to improve control and
14cleanup technology in order to strengthen the capabilities and
15capacities of cleanup operations.

16(j) California government should improve its response and
17management of oil spills that occur inbegin delete marineend deletebegin insert stateend insert waters.

18(k) Those who transport oil throughbegin insert or nearend insert thebegin delete marineend delete waters
19of the state must meet minimum safety standards and demonstrate
20financial responsibility.

21(l) The federal government plays an important role in preventing
22and responding to petroleum spills and it is in the interests of the
23state to coordinate with agencies of the federal government,
24including the Coast Guardbegin insert and the United States Environmental
25Protection Agencyend insert
, to the greatest degree possible.

26(m) California has approximately 1,100 miles of coast, including
27four marine sanctuariesbegin delete whichend deletebegin insert thatend insert occupy 88,767 square miles.
28The weather, topography, and tidal currents in and around
29California’s coastal ports and waterways make vessel navigation
30challenging. The state’s major ports are among the busiest in the
31world. Approximately 700 million barrels of oil are consumed
32annually by California, with over 500 million barrels being
33transported by vessel. The peculiarities of California’s maritime
34coast require special precautionary measures regarding oil
35pollution.

begin insert

36(n) California has approximately 158,500 square miles of
37interior area where there are approximately 6,800 miles of pipeline
38used for oil distribution, 5,800 miles of Class I railroad track, and
39172,100 miles of maintained roads.

end insert
P29   1begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 8670.3 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
2to read:end insert

3

8670.3.  

Unless the context requires otherwise, the following
4definitions shall govern the construction of this chapter:

5(a) “Administrator” means the administrator for oil spill response
6appointed by the Governor pursuant to Section 8670.4.

7(b) (1) “Best achievable protection” means the highest level of
8protection that can be achieved through both the use of the best
9achievable technology and those manpower levels, training
10procedures, and operational methods that provide the greatest
11degree of protection achievable. The administrator’s determination
12of which measures provide the best achievable protection shall be
13guided by the critical need to protect valuablebegin delete coastalend deletebegin insert naturalend insert
14 resources andbegin delete marineend deletebegin insert stateend insert waters, while also considering all of
15the following:

16(A) The protection provided by the measure.

17(B) The technological achievability of the measure.

18(C) The cost of the measure.

19(2) The administrator shall not use a cost-benefit or
20cost-effectiveness analysis or any particular method of analysis in
21determining which measures provide the best achievable protection.
22The administrator shall instead, when determining which measures
23provide best achievable protection, give reasonable consideration
24to the protection provided by the measures, the technological
25achievability of the measures, and the cost of the measures when
26establishing the requirements to provide the best achievable
27protection for begin delete coastal and marineend delete begin insert the naturalend insert resourcesbegin insert of the stateend insert.

28(c) (1) “Best achievable technology” means that technology
29that provides the greatest degree of protection, taking into
30consideration both of the following:

31(A) Processes that are being developed, or could feasibly be
32developed anywhere in the world, given overall reasonable
33expenditures on research and development.

34(B) Processes that are currently in use anywhere in the world.

35(2) In determining what is the best achievable technology
36pursuant to this chapter, the administrator shall consider the
37effectiveness and engineering feasibility of the technology.

begin insert

38(d) “California oil spill contingency plan” means the California
39oil spill contingency plan prepared pursuant to Article 3.5
40(commencing with Section 8574.1) of Chapter 7.

end insert
begin delete

P30   1(d)

end delete

2begin insert(e)end insert “Dedicated response resources” means equipment and
3personnel committed solely to oil spill response, containment, and
4cleanup that are not used for any other activity that would adversely
5affect the ability of that equipment and personnel to provide oil
6spill response services in the timeframes for which the equipment
7and personnel are rated.

begin delete

8(e) “Director” means the Director of Fish and Game.

end delete

9(f) “Environmentally sensitive area” means an area defined
10pursuant to the applicable area contingency plansbegin insert or geographic
11response plansend insert
, as created and revised by the Coast Guardbegin insert, the
12United States Environmental Protection Agency,end insert
and the
13administrator.

begin insert

14(g) (1) “Facility” means any of the following located in state
15waters or located where an oil spill may impact state waters:

end insert
begin insert

16(A) A building, structure, installation, or equipment used in oil
17exploration, oil well drilling operations, oil production, oil refining,
18oil storage, oil gathering, oil processing, oil transfer, oil
19distribution, or oil transportation.

end insert
begin insert

20(B) A marine terminal.

end insert
begin insert

21(C) A pipeline that transports oil.

end insert
begin insert

22(D) A railroad that transports oil as cargo.

end insert
begin insert

23(E) A drill ship, semisubmersible drilling platform, jack-up type
24drilling rig, or any other floating or temporary drilling platform.

end insert
begin insert

25(2) “Facility” does not include any of the following:

end insert
begin insert

26(A) A vessel, except a vessel located and used for any purpose
27described in subparagraph (E) of paragraph (1).

end insert
begin insert

28(B) An owner or operator subject to Chapter 6.67 (commencing
29with Section 25270) or Chapter 6.75 (commencing with Section
3025299.10) of Division 20 of the Health and Safety Code.

end insert
begin insert

31(C) Operations on a farm, nursery, logging site, or construction
32site that are either of the following:

end insert
begin insert

33(i) Do not exceed 20,000 gallons in a single storage tank.

end insert
begin insert

34(ii) Have a useable tank storage capacity not exceeding 75,000
35gallons.

end insert
begin insert

36(D) A small craft refueling dock.

end insert
begin delete

37(g) “Inland spill” means a release of at least one barrel (42
38gallons) of oil into inland waters that is not authorized by any
39federal, state, or local governmental entity.

end delete
begin delete

P31   1(h) “Inland waters” means waters of the state other than marine
2waters, but not including groundwater.

end delete
begin delete

3(i)

end delete

4begin insert(h)end insert “Local government” means a chartered or general law city,
5a chartered or general law county, or a city and county.

begin delete

6(j) (1) “Marine facility” means any facility of any kind, other
7than a tank ship or tank barge, that is or was used for the purposes
8of exploring for, drilling for, producing, storing, handling,
9transferring, processing, refining, or transporting oil and is located
10in marine waters, or is located where a discharge could impact
11marine waters unless the facility is either of the following:

12(A) Subject to Chapter 6.67 (commencing with Section 25270)
13or Chapter 6.75 (commencing with Section 25299.10) of Division
1420 of the Health and Safety Code.

15(B) Placed on a farm, nursery, logging site, or construction site
16and does not exceed 20,000 gallons in a single storage tank.

17(2) For the purposes of this chapter, “marine facility” includes
18a drill ship, semisubmersible drilling platform, jack-up type drilling
19rig, or any other floating or temporary drilling platform.

20(3) For the purposes of this chapter, “marine facility” does not
21include a small craft refueling dock.

22(k)

end delete

23begin insert(i)end insert (1) “Marine terminal” means anybegin delete marineend delete facility used for
24transferring oil to or from a tank ship or tank barge.

25(2) “Marine terminal” includes, for purposes of this chapter, all
26piping not integrally connected to a tank facility, as defined in
27subdivisionbegin delete (m)end deletebegin insert (n)end insert of Section 25270.2 of the Health and Safety
28Code.

begin delete

29(l) “Marine waters” means those waters subject to tidal
30influence, and includes the waterways used for waterborne
31commercial vessel traffic to the Port of Sacramento and the Port
32of Stockton.

33(m)

end delete

34begin insert(j)end insert “Mobile transfer unit” meansbegin delete a small marine fueling facility
35that isend delete
a vehicle, truck, or trailer, including all connecting hoses
36and piping, used for the transferring of oil at a location where a
37discharge could impactbegin delete marineend delete watersbegin insert of the stateend insert.

begin delete

38(n)

end delete

P32   1begin insert(k)end insert “Nondedicated response resources” means those response
2resources identified by an Oil Spill Response Organization for oil
3spill response activities that are not dedicated response resources.

begin delete

4(o)

end delete

5begin insert(l)end insert “Nonpersistent oil” means a petroleum-based oil, such as
6gasoline or jet fuel, that evaporates relatively quickly and is an oil
7with hydrocarbon fractions, at least 50 percent of which, by
8volume, distills at a temperature of 645 degrees Fahrenheit, and
9at least 95 percent of which, by volume, distills at a temperature
10of 700 degrees Fahrenheit.

begin delete

11(p)

end delete

12begin insert(m)end insert “Nontank vessel” means a vessel of 300 gross tons or greater
13that carries oil, but does not carry that oil as cargo.

begin delete

14(q)

end delete

15begin insert(n)end insert “Oil” means any kind of petroleum, liquid hydrocarbons,
16or petroleum products or any fraction or residues therefrom,
17including, but not limited to, crude oil, bunker fuel, gasoline, diesel
18fuel, aviation fuel, oil sludge, oil refuse, oil mixed with waste, and
19liquid distillates from unprocessed natural gas.

begin delete

20(r)

end delete

21begin insert(o)end insert “Oil spill cleanup agent” means a chemical, or any other
22substance, used for removing, dispersing, or otherwise cleaning
23up oil or any residual products of petroleum in, or on, any of the
24waters of the state.

begin delete

25(s)

end delete

26begin insert(p)end insert “Oil spill contingency plan” or “contingency plan” means
27the oil spill contingency plan required pursuant to Article 5
28(commencing with Section 8670.28).

begin delete

29(t)

end delete

30begin insert(q)end insert (1) “Oil Spill Response Organization” or “OSRO” means
31an individual, organization, association, cooperative, or other entity
32that provides, or intends to provide, equipment, personnel, supplies,
33or other services directly related to oil spill containment, cleanup,
34or removal activities.

begin delete

35(2) A “rated OSRO” means an OSRO that has received a
36satisfactory rating from the administrator for a particular rating
37level established pursuant to Section 8670.30.

end delete
begin delete

38(3)

end delete

39begin insert(2)end insert “OSRO” does not include an owner or operator with an oil
40spill contingency plan approved by the administrator or an entity
P33   1that only provides spill management services, or who provides
2services or equipment that are only ancillary to containment,
3cleanup, or removal activities.

begin delete

4(u) “Onshore facility” means a facility of any kind that is located
5entirely on lands not covered by marine waters.

end delete
begin delete

6(v)

end delete

7begin insert(r)end insert (1) “Owner” or “operator” means any of the following:

8(A) In the case of a vessel, a person who owns, has an ownership
9interest in, operates, charters by demise, orbegin delete leases,end deletebegin insert leasesend insert the vessel.

10(B) In the case of abegin delete marineend delete facility, a person who owns, has an
11ownership interest in, or operates thebegin delete marineend delete facility.

12(C) Except as provided in subparagraph (D), in the case of a
13vessel orbegin delete marineend delete facility, where title or control was conveyed due
14to bankruptcy, foreclosure, tax delinquency, abandonment, or
15similar means to an entity of state or local government, a person
16who owned, held an ownership interest in, operated, or otherwise
17controlled activities concerning the vessel orbegin delete marineend delete facility
18immediately beforehand.

19(D) An entity of the state or local government that acquired
20ownership or control of a vessel orbegin delete marineend delete facility, when the entity
21of the state or local government has caused or contributed to a spill
22or discharge of oil intobegin delete marineend delete watersbegin insert of the stateend insert.

23(2) “Owner” or “operator” does not include a person who,
24without participating in the management of a vessel orbegin delete marineend delete
25 facility, holds indicia of ownership primarily to protect the person’s
26security interest in the vessel orbegin delete marineend delete facility.

27(3) “Operator” does not include a person who owns the land
28underlying abegin delete marineend delete facility or the facility itself if the person is
29not involved in the operations of the facility.

begin delete

30(w)

end delete

31begin insert(s)end insert “Person” means an individual, trust, firm, joint stock
32company, or corporation, including, but not limited to, a
33government corporation, partnership, and association. “Person”
34also includes a city, county, city and county, district, and the state
35or any department or agency thereof, and the federal government,
36or any department or agency thereof, to the extent permitted by
37law.

begin delete

38(x)

end delete

39begin insert(t)end insert “Pipeline” means a pipeline used at any time to transport oil.

begin delete

P34   1(y) “Reasonable worst case spill” means, for the purposes of
2preparing contingency plans for a nontank vessel, the total volume
3of the largest fuel tank on the nontank vessel.

end delete
begin insert

4(u) “Railroad” means a railroad, railway, rail car, rolling
5stock, or train.

end insert
begin insert

6(v) “Rated OSRO” means an OSRO that has received a
7satisfactory rating from the administrator for a particular rating
8level established pursuant to Section 8670.30.

end insert
begin delete

9(z)

end delete

10begin insert(w)end insert “Responsible party” or “party responsible” means any of
11the following:

12(1) The owner or transporter of oil or a person or entity accepting
13responsibility for the oil.

14(2) The owner, operator, or lessee of, or a person that charters
15by demise, a vessel orbegin delete marineend delete facility, or a person or entity
16accepting responsibility for the vessel orbegin delete marineend delete facility.

begin delete

17(aa)

end delete

18begin insert(x)end insert “Small craft” means a vessel, other than a tank ship or tank
19barge, that is less than 20 meters in length.

begin delete

20(ab)

end delete

21begin insert(y)end insert “Small craft refueling dock” means a waterside operation
22that dispenses only nonpersistent oil in bulk and small amounts of
23persistent lubrication oil in containers primarily to small craft and
24meets both of the following criteria:

25(1) Has tank storage capacity not exceeding 20,000 gallons in
26any single storage tank or tank compartment.

27(2) Has total usable tank storage capacity not exceeding 75,000
28gallons.

begin delete

29(ac)

end delete

30begin insert(z)end insert “Small marine fueling facility” means either of the following:

31(1) A mobile transfer unit.

32(2) A fixed facility that is not a marine terminal, that dispenses
33primarily nonpersistent oil, that may dispense small amounts of
34persistent oil, primarily to small craft, and that meets all of the
35following criteria:

36(A) Has tank storage capacity greater than 20,000 gallons but
37not more than 40,000 gallons in any single storage tank or storage
38tank compartment.

39(B) Has total usable tank storage capacity not exceeding 75,000
40gallons.

P35   1(C) Had an annual throughput volume of over-the-water transfers
2of oil that did not exceed 3,000,000 gallons during the most recent
3preceding 12-month period.

begin delete

4(ad) “Spill” or “discharge”

end delete

5begin insert(aa)end insertbegin insertend insertbegin insert“Spill,” “discharge,” or “oil spill” end insertmeans a release ofbegin delete at
6least one barrel (42 gallons)end delete
begin insert any amountend insert of oil intobegin delete marineend delete waters
7begin insert of the stateend insert that is not authorized by a federal, state, or local
8government entity.

begin delete

9(ae) “California oil spill contingency plan” means the California
10 oil spill contingency plan prepared pursuant to Article 3.5
11(commencing with Section 8574.1) of Chapter 7.

12(af)

end delete

13begin insert(ab)end insert “Tank barge” means a vessel that carries oil in commercial
14quantities as cargo but is not equipped with a means of
15self-propulsion.

begin delete

16(ag)

end delete

17begin insert(ac)end insert “Tank ship” means a self-propelled vessel that is
18constructed or adapted for the carriage of oil in bulk or in
19commercial quantities as cargo.

begin delete

20(ah)

end delete

21begin insert(ad)end insert “Tank vessel” means a tank ship or tank barge.

begin delete

22(ai)

end delete

23begin insert(ae)end insert “Vessel” means a watercraft or ship of any kind, including
24every structure adapted to be navigated from place to place for the
25transportation of merchandise or persons.

begin delete

26(aj)

end delete

27begin insert(af)end insert “Vessel carrying oil as secondary cargo” means a vessel
28that does not carry oil as a primary cargo, but does carry oilbegin delete in
29bulkend delete
asbegin delete cargo or cargo residue.end deletebegin insert cargo. The administrator may
30establish minimum oil volume amounts or other criteria by
31regulations.end insert

begin delete

32This section shall become operative on January 1, 2012.

end delete
begin insert

33(ag) “Waters of the state” or “state waters” means any surface
34water, including saline waters, marine waters, and freshwaters,
35within the boundaries of the state but does not include
36groundwater.

end insert
37begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 8670.5 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
38to read:end insert

39

8670.5.  

The Governor shall ensure that the state fully and
40adequately responds to all oil spills inbegin delete marineend delete watersbegin insert of the stateend insert.
P36   1The administrator, acting at the direction of the Governor, shall
2implement activities relating to oil spill response, including drills
3and preparedness and oil spill containment and cleanup. The
4administrator shall also represent the state in any coordinated
5response efforts with the federal government.

6begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 8670.7 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
7to read:end insert

8

8670.7.  

(a) The administrator, subject to the Governor, has
9the primary authority to direct prevention, removal, abatement,
10response, containment, and cleanup efforts with regard to all
11aspects of any oil spill inbegin delete the marineend delete waters of the state, in
12accordance with any applicablebegin delete marineend delete facility or vessel
13contingency plan and the California oil spill contingency plan. The
14administrator shall cooperate with any federal on-scene coordinator,
15as specified in the National Contingency Plan.

16(b) The administrator shall implement the California oil spill
17contingency plan, required pursuant to Section 8574.1, to the fullest
18extent possible.

19(c) The administrator shall do both of the following:

20(1) Be present at the location of any oil spill of more than
21100,000 gallons inbegin delete marineend delete watersbegin insert of the stateend insert, as soon as possible
22after notice of the discharge.

23(2) Ensure that persons trained in oil spill response and cleanup,
24whether employed by the responsible party, the state, or another
25private or public person or entity, are onsite to respond to, contain,
26and clean up any oil spill inbegin delete marineend delete watersbegin insert of the stateend insert, as soon as
27possible after notice of the discharge.

28(d) Throughout the response and cleanup process, the
29administrator shall apprise the air quality management district or
30air pollution control district having jurisdiction over the area in
31which the oil spill occurred and the local governmentbegin delete entitiesend delete
32begin insert agenciesend insert that are affected by the spill.

33(e) The administrator, with the assistancebegin insert, as needed,end insert of the
34begin insert Office of theend insert State Fire Marshal,begin insert the Public Utilities Commission,end insert
35 the State Lands Commission,begin insert or other state agency,end insert and the federal
36on-scene coordinator, shall determine the cause and amount of the
37discharge.

38(f) The administrator shall have the state authority over the use
39of all response methods, including, but not limited to, in situ
40burning, dispersants, and any oil spill cleanup agents in connection
P37   1with an oil discharge. The administrator shall consult with the
2federal on-scene coordinator prior to exercising authority under
3this subdivision.

4(g) (1) The administrator shall conduct workshops, consistent
5with the intent of this chapter, with the participation of appropriate
6local, state, and federal agencies, including the State Air Resources
7Board, air pollution controlbegin delete districts,end delete and air quality management
8districts, and affected private organizations, on the subject of oil
9spill response technologies, including in situ burning. The
10workshops shall review the latest research and findings regarding
11the efficacy and toxicity of oil spill cleanup agents and other
12technologies, their potential public health and safety and
13environmental impacts, and any other relevant factors concerning
14their use in oil spill response. In conducting these workshops, the
15administrator shall solicit the views of all participating parties
16concerning the use of these technologies, with particular attention
17to any special considerations that apply to coastal areas andbegin delete marineend delete
18 waters of the state.

19(2) The administrator shall publish guidelines and conduct
20periodic reviews of the policies, procedures, and parameters for
21the use of in situ burning, which may be implemented in the event
22of an oil spill.

23(h) (1) The administrator shall ensure that, as part of the
24response to any significant spill, biologists or other personnel are
25present and provided any support and funding necessary and
26appropriate for the assessment of damages to natural resources
27and for the collection of data and other evidence that may help in
28determining and recovering damages.

29(2) (A) The administrator shall coordinate all actions required
30by state or local agencies to assess injury to, and provide full
31mitigation for injury to, or to restore, rehabilitate, or replace, natural
32resources, including wildlife, fisheries, wildlife or fisheries habitat, begin delete33 and beachesend delete begin insert beaches,end insert andbegin delete otherend delete coastal areas, that are damaged by
34an oil spill. For purposes of this subparagraph, “actions required
35by state or local agencies” include, but are not limited to, actions
36required by state trustees under Section 1006 of the Oil Pollution
37Act of 1990 (33 U.S.C. Sec. 2706) and actions required pursuant
38to Section 8670.61.5.

39(B) The responsible party shall be liable for all coordination
40costs incurred by the administrator.

P38   1(3) This subdivision does not give the administrator any
2authority to administer state or local laws or to limit the authority
3of another state or local agency to implement and enforce state or
4local laws under its jurisdiction, nor does this subdivision limit
5the authority or duties of the administrator under this chapter or
6limit the authority of an agency to enforce existing permits or
7permit conditions.

8(i) (1) The administrator shall enter into a memorandum of
9understanding with the executive director of the State Water
10Resources Control Board, acting for the State Water Resources
11Control Board and the California regional water quality control
12boards, and with the approval of the State Water Resources Control
13Board, to address discharges, other than dispersants, that are
14incidental to, or directly associated with, the response, containment,
15and cleanup of an existing or threatened oil spill conducted
16pursuant to this chapter.

17(2) The memorandum of understanding entered into pursuant
18to paragraph (1) shall address any permits, requirements, or
19authorizations that are required for the specified discharges. The
20memorandum of understanding shall be consistent with
21requirements that protect state water quality and beneficial uses
22and with any applicable provisions of the Porter-Cologne Water
23Quality Control Act (Division 7 (commencing with Section 13000)
24of the Water Code) or the federal Clean Water Act (33 U.S.C. Sec.
251251 et seq.), and shall expedite efficient oil spill response.

begin delete

26(j) This section shall become effective on January 1, 2012.

end delete
27begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 8670.7.5 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
28read:end insert

begin insert
29

begin insert8670.7.5.end insert  

(a) The administrator may adopt regulations to
30implement this chapter pursuant to the Administrative Procedure
31Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of
32Division 3).

33(b) (1) An emergency regulation adopted pursuant to
34amendments made to this chapter by Senate Bill 861 of the 2013-14
35Regular Session shall be deemed an emergency and necessary to
36avoid serious harm to the public peace, health, safety, or general
37welfare for the purposes of Sections 11346.1 and 11349.6, and the
38administrator is hereby exempt from the requirement that he or
39she describe facts showing the need for immediate action and from
40review by the Office of Administrative Law.

P39   1(2) Notwithstanding Section 11346.1, an emergency regulation
2adopted pursuant to paragraph (1) shall remain in effect for 12
3months or until readopted by the administrator, whichever is
4earlier.

end insert
5begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 8670.8 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
6to read:end insert

7

8670.8.  

(a) The administrator shall carry out programs to
8provide training for individuals in response, containment, and
9cleanup operations and equipment, equipment deployment, and
10the planning and management of these programs. These programs
11may include training for members of the California Conservation
12Corps, other response personnel employed by the state, personnel
13employed by other public entities, personnel from marine facilities,
14commercial fishermen and other mariners, and interested members
15of the public. Training may be offered for volunteers.

16(b) The administrator may offer training to anyone who is
17required to take part in response and cleanup efforts under the
18California oil spill contingency plan or under local government
19contingency plans prepared and approved under this chapter.

20(c) Upon request by a local government, the administratorbegin delete shallend delete
21begin insert mayend insert provide a program for training and certification of a local
22emergency responder designated as a local spill response manager
23by a local government with jurisdiction over or directly adjacent
24tobegin delete marineend delete watersbegin insert of the stateend insert.

25(d) Trained and certified local spill response managers shall
26participate in all drills upon request of the administrator.

27(e) As part of the training and certification program, the
28administrator shall authorize a local spill response manager to train
29and certify volunteers.

30(f) In the event of an oil spill, local spill response managers
31trained and certified pursuant to subdivision (c) shall provide the
32state onscene coordinator with timely information on activities
33and resources deployed by local government in response to the oil
34spill. The local spill response manager shall cooperate with the
35administrator and respond in a manner consistent with the area
36contingency plan to the extent possible.

37(g) Funding for activities undertaken pursuant to subdivisions
38(a) to (c), inclusive, shall be from the Oil Spill Prevention and
39Administration Fund created pursuant to Section 8670.38.

P40   1(h) All training provided by the administrator shall follow the
2requirements of applicable federal and state occupational safety
3and health standards adopted by the Occupational Safety and
4Health Administration of the Department of Labor and the
5begin delete California Occupational, Safety,end deletebegin insert Occupational Safetyend insert and Health
6Standards Board.

7begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 8670.8.3 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
8to read:end insert

9

8670.8.3.  

The administratorbegin delete shallend deletebegin insert mayend insert offer grants to a local
10government with jurisdiction over or directly adjacent tobegin delete marineend delete
11 watersbegin insert of the stateend insert to provide oil spill response equipment to be
12deployed by a local spill response manager certified pursuant to
13Section 8670.8. The administratorbegin delete shallend deletebegin insert mayend insert request the Legislature
14to appropriate funds from the Oil Spill Prevention and
15Administration Fund created pursuant to Section 8670.38 for the
16purposes of this section.

17begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 8670.8.5 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
18to read:end insert

19

8670.8.5.  

The administrator may use volunteer workers in
20response, containment, restoration, wildlife rehabilitation, and
21cleanup efforts for oil spills inbegin delete marineend delete watersbegin insert of the stateend insert. The
22volunteers shall be deemed employees of the state for the purpose
23of workers’ compensation under Article 2 (commencing with
24Section 3350) of Chapter 2 of Part 1 of Division 4 of the Labor
25Code. Any payments for workers’ compensation pursuant to this
26section shall be made from the Oil Spill Response Trust Fund
27created pursuant to Section 8670.46.

28begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 8670.9 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
29to read:end insert

30

8670.9.  

(a) The administrator shall enter into discussions on
31behalf of the state with the States of Alaska, Hawaii, Oregon, and
32Washington, for the purpose of developing interstate agreements
33regarding oil spill prevention and response. The agreements shall
34address, including, but not limited to, all of the following:

35(1) Coordination of vessel safety and traffic.

36(2) Spill prevention equipment and response required onbegin delete tank
37ships and tank barges and at terminals.end delete
begin insert vessels and at facilities.end insert

38(3) The availability of oil spill response and cleanup equipment
39and personnel.

P41   1(4) Other matters that may relate to the transport of oil and oil
2spill prevention, response, and cleanup.

3(b) The administrator shall coordinate the development of these
4agreements with the Coast Guard, the Province of British Columbia
5in Canada, and the Republic of Mexico.

6begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 8670.12 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
7to read:end insert

8

8670.12.  

(a) The administrator shall conduct studies and
9evaluations necessary for improving oil spill response, containment,
10and cleanup and oil spill wildlife rehabilitation inbegin delete marineend delete waters
11begin insert of the stateend insert andbegin delete marineend delete oil transportation systems. The administrator
12may expend moneys from the Oil Spill Prevention and
13Administration Fund created pursuant to Section 8670.38, enter
14into consultation agreements, and acquire necessary equipment
15and services for the purpose of carrying out these studies and
16evaluations.

17(b) The administrator shall study the use and effects of
18dispersants, incineration, bioremediation, and any other methods
19used to respond to a spill. The study shall periodically be updated
20to ensure the best achievable protection from the use of those
21methods. Based upon substantial evidence in the record, the
22administrator may determine in individual cases that best
23achievable protection is provided by establishing requirements
24begin delete whichend deletebegin insert thatend insert provide the greatest degree of protection achievable
25without imposing costsbegin delete whichend deletebegin insert thatend insert significantly outweigh the
26incremental protection that would otherwise be provided. The
27studies shall do all of the following:

28(1) Evaluate the effectiveness of dispersants and other chemical
29agents in oil spill response under varying environmental conditions.

30(2) Evaluate potential adverse impacts on the environment and
31public health including, but not limited to, adverse toxic impacts
32on water quality, fisheries, and wildlife with consideration to
33bioaccumulation and synergistic impacts, and the potential for
34human exposure, including skin contact and consumption of
35contaminated seafood.

36(3) Recommend appropriate uses and limitations on the use of
37dispersants and other chemical agents to ensure they are used only
38in situations where the administrator determines they are effective
39and safe.

P42   1(c) The administrator shall evaluate the feasibility of using
2commercial fishermen and other mariners for oil spill containment
3and cleanup. The study shall examine the following:

4(1) Equipment and technology needs.

5(2) Coordination with private response personnel.

6(3) Liability and insurance.

7(4) Compensation.

8(d) The studies shall be performed in conjunction with any
9studies performed by federal, state, and international entities. The
10administrator may enter into contracts for the studies.

11begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 8670.14 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
12to read:end insert

13

8670.14.  

The administrator shall coordinate the oil spill
14prevention and response programs andbegin delete marineend delete facility, tank vessel,
15and nontank vessel safety standards of the state with federal
16programsbegin insert as appropriate andend insert to the maximum extent possible.

17begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 8670.19 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
18to read:end insert

19

8670.19.  

(a) The administrator shall periodically conduct a
20comprehensive review of all oil spill contingency plans. The
21administrator shall do both of the following:

22(1) Segment thebegin delete coastend deletebegin insert stateend insert into appropriate areas as necessary.

23(2) Evaluate the oil spill contingency plans for each area to
24determine if deficiencies exist in equipment, personnel, training,
25and any other area determined to be necessary, including those
26response resources properly authorized for cascading into the area,
27to ensure the best achievable protection ofbegin delete the coastline, set forth
28in the California oil spill contingency plan, including the marine
29oil spill contingency planning section.end delete
begin insert state waters from oil spills.end insert

30(b) If the administrator finds that deficiencies exist, the
31administrator shall, by the process set forth in Section 8670.31,
32remand any oil spill contingency plans to the originating party
33with recommendations for amendments necessary to ensure that
34thebegin delete coastline isend deletebegin insert waters of the state areend insert protected.

35begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 8670.25 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
36to read:end insert

37

8670.25.  

(a) A person who, without regard to intent or
38negligence, causes or permits any oil to be discharged in or on the
39begin delete marine waters or inlandend delete waters of the state shall immediately
40contain, clean up, and remove the oil in the most effective manner
P43   1that minimizes environmental damage and in accordance with the
2applicable contingency plans, unless ordered otherwise by the
3Coast Guard or the administrator.

4(b) If there is a spill, an owner or operator shall comply with
5the applicable oil spill contingency plan approved by the
6administrator.

7begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 8670.25.5 of the end insertbegin insertGovernment Codeend insertbegin insert is
8amended to read:end insert

9

8670.25.5.  

(a) (1) Without regard to intent or negligence, any
10party responsible for the discharge or threatened discharge of oil
11inbegin delete marineend delete watersbegin insert of the stateend insert shall report the discharge immediately
12to the Office of Emergency Services pursuant to Sectionbegin delete 25507end delete
13begin insert 25510end insert of the Health and Safety Code.

14(2) If the information initially reported pursuant to paragraph
15(1) was inaccurate or incomplete, or if the quantity of oil discharged
16has changed, any party responsible for the discharge or threatened
17discharge of oil inbegin delete marineend delete watersbegin insert of the stateend insert shall report the
18updated information immediately to the Office of Emergency
19Services pursuant to paragraph (1). The report shall contain the
20accurate or complete information, or the revised quantity of oil
21discharged.

22(b) Immediately upon receiving notification pursuant to
23subdivision (a), the Office of Emergency Services shall notify the
24administrator, the State Lands Commission, the California Coastal
25Commission, the California regional water quality control board
26having jurisdiction over the location of the discharged oil, and the
27appropriate local governmental agencies in the area surrounding
28the discharged oil, and take the actions required by subdivision
29(d) of Section 8589.7. If the spill has occurred within the
30jurisdiction of the San Francisco Bay Conservation and
31Development Commission, the Office of Emergency Services shall
32notify that commission. Each public agency specified in this
33subdivision shall adopt an internal protocol over communications
34regarding the discharge of oil and file the internal protocol with
35the Office of Emergency Services.

36(c) The 24-hour emergency telephone number of the Office of
37Emergency Services shall be posted at everybegin insert railroad dispatch,
38pipeline operator control center, and marineend insert
terminal, at the area
39of control of every marine facility, and on the bridge of every
40tankship in marine waters.

begin delete

P44   1(d) This section does not apply to discharges, or potential
2discharges, of less than one barrel (42 gallons) of oil unless a more
3restrictive reporting standard is adopted in the California oil spill
4contingency plan prepared pursuant to Section 8574.1.

end delete
begin delete

5(e)

end delete

6begin insert(d)end insert Except as otherwise provided in this section and Section
78589.7, a notification made pursuant to this section shall satisfy
8any immediate notification requirement contained in any permit
9issued by a permitting agency.

10begin insert

begin insertSEC. 19.end insert  

end insert

begin insertSection 8670.26 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
11to read:end insert

12

8670.26.  

Any local or state agency responding tobegin delete a spill ofend deletebegin insert anend insert
13 oilbegin insert spillend insert shall notify the Office of Emergency Services, if
14notificationbegin delete asend deletebegin insert isend insert required under Section 8670.25.5, Section 13272
15of the Water Code, or any other notification procedure adopted in
16the California oil spill contingency plan has not occurred.

17begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 8670.27 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
18to read:end insert

19

8670.27.  

(a) (1) All potentially responsible parties for
20begin delete dischargedend deletebegin insert anend insert oilbegin insert spillend insert and all of their agents and employees and
21all state and local agencies shall carry out response and cleanup
22operations in accordance with the applicable contingency plan,
23unless directed otherwise by the administrator or the Coast Guard.

24(2) Except as provided in subdivision (b), the responsible party,
25potentially responsible parties, their agents and employees, the
26operators of all vessels docked at a marine facility that is the source
27of a discharge, and all state and local agencies shall carry out spill
28response consistent with the California oil spill contingency plan
29or other applicable federal, state, or local spill response plans, and
30owners and operators shall carry out spill response consistent with
31their applicable response contingency plans, unless directed
32otherwise by the administrator or the Coast Guard.

33(b) If a responsible party or potentially responsible party
34reasonably, and in good faith, believes that the directions or orders
35given by the administrator pursuant to subdivision (a) will
36substantially endanger the public safety or the environment, the
37party may refuse to act in compliance with the orders or directions
38of the administrator. The responsible party or potentially
39responsible party shall state, at the time of the refusal, the reasons
40why the party refuses to follow the orders or directions of the
P45   1administrator. The responsible party or potentially responsible
2party shall give the administrator written notice of the reasons for
3the refusal within 48 hours of refusing to follow the orders or
4directions of the administrator. In any civil or criminal proceeding
5commenced pursuant to this section, the burden of proof shall be
6on the responsible party or potentially responsible party to
7demonstrate, by clear and convincing evidence, why the refusal
8to follow the orders or directions of the administrator was justified
9under the circumstances.

10begin insert

begin insertSEC. 21.end insert  

end insert

begin insertSection 8670.28 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
11to read:end insert

12

8670.28.  

(a) The administrator, taking into consideration the
13begin delete marineend delete facility or vessel contingency plan requirements ofbegin delete the
14national and California contingency plans,end delete
the State Lands
15Commission, thebegin insert Office of theend insert State Fire Marshal,begin delete andend delete the
16California Coastal Commissionbegin insert, and other state and federal
17agencies,end insert
shall adopt and implement regulations governing the
18adequacy of oil spill contingency plans to be prepared and
19implemented under this article. All regulations shall be developed
20in consultation with the Oil Spill Technical Advisory Committee,
21and shall be consistent with the California oil spill contingency
22plan and not in conflict with the National Contingency Plan. The
23regulations shall provide for the best achievable protection of
24begin delete coastal and marineend deletebegin insert waters and naturalend insert resourcesbegin insert of the stateend insert. The
25regulations shall permit the development, application, and use of
26an oil spill contingency plan for similar vessels, pipelines,
27terminals, and facilities within a single company or organization,
28and across companies and organizations. The regulations shall, at
29a minimum, ensure all of the following:

30(1) All areas ofbegin delete the marineend deletebegin insert stateend insert watersbegin delete of the stateend delete are at all
31times protected by prevention, response, containment, and cleanup
32equipment and operations.begin delete For the purposes of this section, “marine
33waters” includes the waterways used for waterborne commercial
34vessel traffic to the Port of Stockton and the Port of Sacramento.end delete

35(2) Standards set for response, containment, and cleanup
36equipment and operations are maintained and regularly improved
37to protect the resources of the state.

38(3) All appropriate personnel employed by operators required
39to have a contingency plan receive training in oil spill response
40and cleanup equipment usage and operations.

P46   1(4) Each oil spill contingency plan provides for appropriate
2financial or contractual arrangements for all necessary equipment
3andbegin delete services,end deletebegin insert servicesend insert for the response, containment, and cleanup
4of a reasonable worst case oil spill scenario for eachbegin delete part of the
5coastend delete
begin insert areaend insert the plan addresses.

6(5) Each oil spill contingency plan demonstrates that all
7protection measures are being taken to reduce the possibility of
8an oil spill occurring as a result of the operation of thebegin delete marineend delete
9 facility or vessel. The protection measures shall include, but not
10be limited to, response to disabled vessels and an identification of
11those measures taken to comply with requirements of Division 7.8
12(commencing with Section 8750) of the Public Resources Code.

13(6) Each oil spill contingency plan identifies the types of
14equipment that can be used, the location of the equipment, and the
15time taken to deliver the equipment.

16(7) Eachbegin delete marineend delete facilitybegin insert, as determined by the administrator,end insert
17 conducts a hazard and operability study to identify the hazards
18associated with the operation of the facility, including the use of
19the facility by vessels, due to operating error, equipment failure,
20and external events. For the hazards identified in the hazard and
21operability studies, the facility shall conduct an offsite consequence
22analysisbegin delete which,end deletebegin insert that,end insert for the most likely hazards, assumes
23pessimistic water and air dispersion and other adverse
24environmental conditions.

25(8) Each oil spill contingency plan contains a list of contacts to
26call in the event of a drill, threatened discharge of oil, or discharge
27of oil.

28(9) Each oil spill contingency plan identifies the measures to
29be taken to protect the recreational and environmentally sensitive
30areas that would be threatened by a reasonable worst case oil spill
31scenario.

32(10) Standards for determining a reasonable worst case oil spill.
33begin insert However, for a nontank vessel, the reasonable worst case is a spill
34of the total volume of the largest fuel tank on the nontank vessel.end insert

begin delete

35(11) Each oil spill contingency plan includes a timetable for
36implementing the plan.

end delete
begin delete

37(12)

end delete

38begin insert(11)end insert Each oil spill contingency plan specifies an agent for service
39of process. The agent shall be located in this state.

P47   1(b) The regulations and guidelines adopted pursuant to this
2section shall also include provisions to provide public review and
3comment on submitted oil spill contingencybegin delete plans prior to approval.end delete
4begin insert plans.end insert

5(c) The regulations adopted pursuant to this section shall
6specifically address the types of equipment that will be necessary,
7the maximum time that will be allowed for deployment, the
8maximum distance to cooperating response entities, the amounts
9of dispersant, and the maximum time required for application,
10should the use of dispersants be approved. Upon a determination
11by the administrator that booming is appropriate at the site and
12necessary to provide best achievable protection, the regulations
13shall require that vessels engaged in lightering operations be
14boomed prior to the commencement of operations.

15(d) The administrator shall adopt regulations and guidelines for
16oil spill contingency plans with regard to mobile transfer units,
17small marine fueling facilities, and vessels carrying oil as secondary
18cargo that acknowledge the reduced risk of damage from oil spills
19from those units, facilities, and vessels while maintaining the best
20achievable protection for the public health and safety and the
21environment.

22(e) The regulations adopted pursuant to subdivision (d) shall be
23exempt from review by the Office of Administrative Law.
24Subsequent amendments and changes to the regulations shall not
25be exempt frombegin insert review by theend insert Office of Administrativebegin delete Law review.end delete
26begin insert Law.end insert

begin delete

27(f) This section shall become effective on January 1, 2012.

end delete
28begin insert

begin insertSEC. 22.end insert  

end insert

begin insertSection 8670.29 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
29to read:end insert

30

8670.29.  

(a) In accordance with the rules, regulations, and
31policies established by the administrator pursuant to Section
328670.28, an owner or operator of abegin delete marineend delete facility, small marine
33fueling facility, or mobile transfer unit,begin delete prior to operating in the
34marine waters of the state or where an oil spill could impact marine
35waters; andend delete
begin insert orend insert an owner or operator of a tank vessel, nontank
36vessel, or vessel carrying oil as secondary cargo,begin delete beforeend deletebegin insert whileend insert
37 operating in thebegin delete marineend delete waters of the statebegin insert or where a spill could
38impact waters of the stateend insert
, shallbegin delete prepare and implementend deletebegin insert haveend insert an
39oil spill contingency plan that has been submitted to, and approved
40by, the administrator pursuant to Section 8670.31. An oil spill
P48   1contingency plan shall ensure the undertaking of prompt and
2adequate response and removal action in case ofbegin delete an oilend deletebegin insert aend insert spill, shall
3be consistent with the California oil spill contingency plan, and
4shall not conflict with the National Oil and Hazardous Substances
5Pollution Contingency Plan (NCP).

6(b) An oil spill contingency plan shall, at a minimum, meet all
7of the following requirements:

8(1) Be a written document, reviewed for feasibility and
9executability, and signed by the owner or operator, orbegin delete theirend deletebegin insert his or
10herend insert
designee.

11(2) Provide for the use of an incident command system to be
12used during a spill.

13(3) Provide procedures for reporting oil spills to local, state,
14and federal agencies, and include a list of contacts to call in the
15event of a drill, threatened spill, or spill.

16(4) Describe the communication plans to be used during a spillbegin insert,
17 if different from those used by a recognized incident command
18systemend insert
.

19(5) Describe the strategies for the protection of environmentally
20sensitive areas.

21(6) Identify at least one rated OSRO for each rating level
22established pursuant to Section 8670.30. Each identified rated
23OSRO shall be directly responsible by contract, agreement, or
24other approved means to provide oil spill response activities
25pursuant to the oil spill contingency plan. A rated OSRO may
26provide oil spill response activities individually, or in combination
27with another rated OSRO, for a particular owner or operator.

28(7) Identify a qualified individual.

29(8) Provide the name, address, and telephone and facsimile
30numbers for an agent for service of process, located within the
31state and designated to receive legal documents on behalf of the
32owner or operator.

33(9) Provide for training and drills on elements of the plan at
34least annually, with all elements of the plan subject to a drill at
35least once every three years.

36(c) An oil spill contingency plan for a vessel shall also include,
37but is not limited to, all of the following requirements:

38(1) The plan shall be submitted to the administrator at least
39seven days prior to the vessel entering waters of the state.

P49   1(2) The plan shall provide evidence of compliance with the
2International Safety Management Code, established by the
3International Maritime Organization, as applicable.

4(3) If the oil spill contingency plan is for a tank vessel, the plan
5shall include both of the following:

6(A) The plan shall specify oil and petroleum cargo capacity.

7(B) The plan shall specify the types of oil and petroleum cargo
8carried.

9(4) If the oil spill contingency plan is for a nontank vessel, the
10plan shall include both of the following:

11(A) The plan shall specify the type and total amount of fuel
12carried.

13(B) The plan shall specify the capacity of the largest fuel tank.

14(d) An oil spill contingency plan for abegin delete marineend delete facility shall also
15include, but is not limited to, all of the following provisionsbegin insert, as
16appropriateend insert
:

17(1) Provisions for site security and control.

18(2) Provisions for emergency medical treatment and first aid.

19(3) Provisions for safety training, as required by state and federal
20safety laws for all personnel likely to be engaged in oil spill
21response.

22(4) Provisions detailing site layout and locations of
23environmentally sensitive areas requiring special protection.

24(5) Provisions for vessels that are in the operational control of
25the facility for loading and unloading.

begin insert

26(e) Unless preempted by federal law or regulations, an oil spill
27contingency plan for a railroad also shall include, but is not limited
28to, all of the following:

end insert
begin insert

29(1) A list of the types of train cars that may make up the consist.

end insert
begin insert

30(2) A list of the types of oil and petroleum products that may be
31transported.

end insert
begin insert

32(3) A map of track routes and facilities.

end insert
begin insert

33(4) A list, description, and map of any prestaged spill response
34equipment and personnel for deployment of the equipment.

end insert
begin delete

35(e)

end delete

36begin insert(f)end insert The oil spill contingency plan shall be available to response
37personnel and to relevant state and federal agencies for inspection
38and review.

begin delete

39(f)

end delete

P50   1begin insert(g)end insert The oil spill contingency plan shall be reviewed periodically
2and updated as necessary. All updates shall be submitted to the
3administrator pursuant to this article.

begin delete

4(g)

end delete

5begin insert(h)end insert In addition to the regulations adopted pursuant to Section
68670.28, the administrator shall adopt regulations and guidelines
7to implement this section. The regulations and guidelines shall
8provide for the best achievable protection ofbegin delete coastal and marineend delete
9begin insert waters and naturalend insert resourcesbegin insert of the stateend insert. The administrator may
10establish additional oil spill contingency plan requirements,
11including, but not limited to, requirements based on the different
12geographic regions of the state. All regulations and guidelines shall
13be developed in consultation with the Oil Spill Technical Advisory
14Committee.

begin delete

15(h) This section shall become operative on January 1, 2012.

end delete
begin insert

16(i) Notwithstanding subdivision (a) and paragraph (6) of
17subdivision (b), a vessel or facility operating where a spill could
18impact state waters that are not tidally influenced shall identify a
19rated OSRO in the contingency plan no later than January 1, 2016.

end insert
20begin insert

begin insertSEC. 23.end insert  

end insert

begin insertSection 8670.30.5 of the end insertbegin insertGovernment Codeend insertbegin insert is
21amended to read:end insert

22

8670.30.5.  

(a) The administrator may review each oil spill
23contingency plan that has been approved pursuant to Section
248670.29 to determine whether it complies with Sections 8670.28
25and 8670.29.

26(b) If the administrator finds the approved oil spill contingency
27plan is deficient, the plan shall be returned to the operator with
28written reasons why the approved plan was found inadequate and,
29if practicable, suggested modifications or alternatives. The operator
30shall submit a new or modified plan withinbegin delete 90end deletebegin insert 30end insert days that
31responds to the deficiencies identified by the administrator.

32begin insert

begin insertSEC. 24.end insert  

end insert

begin insertSection 8670.31 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
33to read:end insert

34

8670.31.  

(a) Each oil spill contingency plan required under
35this article shall be submitted to the administratorbegin delete before a tank
36vessel, nontank vessel, or vessel carrying oil as secondary cargo
37operates in the marine waters of the state, or before a marine
38facility, small marine fueling facility, or mobile transfer unit,
39operates in the marine waters of the state or where an oil spill
40therefrom could impact marine waters.end delete
begin insert for review and approval.end insert

P51   1(b) The administrator shall review each submitted contingency
2plan to determine whether it complies with the administrator’s
3rules, policies, and regulations adopted pursuant to Section 8670.28
4and 8670.29.begin insert The administrator may issue a preliminary approval
5pending final approval or disapproval.end insert

6(c) Each contingency plan submitted shall be approved or
7disapproved withinbegin delete 180end deletebegin insert 30end insert days after receipt by the administrator.
8The administrator may approve or disapprove portions of a plan.
9A plan is not deemed approved until all portions are approved
10pursuant to this section. The disapproved portion shall be subject
11to the procedures contained in subdivision (d).

12(d) If the administrator finds the submitted contingency plan is
13inadequate under the rules, policies, and regulations of the
14administrator, the plan shall be returned to the submitter with
15written reasons why the plan was found inadequate and, if
16practicable, suggested modifications or alternatives, if appropriate.
17The submitter shall submit a new or modified plan withinbegin delete 90end deletebegin insert 30end insert
18 days after the earlier plan was returned, responding to the findings
19and incorporating any suggested modifications. The resubmittal
20shall be treated as a new submittal and processed according to the
21provisions of this section, except that the resubmitted plan shall
22be deemed approved unless the administrator acts pursuant to
23subdivision (c).begin delete Failure to gain approval after the second
24submission may be determined by the administrator to be a
25violation of this chapter.end delete

26(e) The administrator may make inspections and require drills
27of any oil spill contingency plan that is submitted.

28(f) After the plan has been approved, it shall be resubmitted
29every five years thereafter. The administrator may require earlier
30or more frequent resubmission, if warranted. Circumstances that
31would require an earlier resubmission include, but are not limited
32to, changes in regulations, new oil spill response technologies,
33deficiencies identified in the evaluation conducted pursuant to
34Section 8670.19, or a need for a different oil spill response because
35of increased need to protect endangered species habitat. The
36administrator may deny approval of the resubmitted plan if it is
37no longer considered adequate according to the adopted rules,
38regulations, and policies of the administrator at the time of
39resubmission.

P52   1(g) begin delete(1)end deletebegin deleteend deleteEach begin insertowner or end insertoperator of a tank vessel,begin insert nontankend insert vessel
2carrying oil as a secondary cargo, orbegin delete marineend delete facility who is required
3to file an oil spill response plan or update pursuant to provisions
4of federal law regulatingbegin delete marineend delete oil spill response plans shallbegin delete, for
5informational purposes only,end delete
submitbegin insert, for informational purposes
6only and upon request of the administrator,end insert
a copy of that plan or
7update to the administrator at the time that it is approved by the
8relevant federal agency.

begin delete

9(2) A tank vessel, vessel carrying oil as a secondary cargo, or
10marine facility operator is not required to submit a copy of the
11response plan or update specified in paragraph (1) to the
12administrator if either the vessel or facility is exempt from having
13to file a response plan with the state, or if the content of the plan
14submitted by the operator pursuant to Section 8670.29 is
15substantially the same as the federal response plan or update.

end delete
16begin insert

begin insertSEC. 25.end insert  

end insert

begin insertSection 8670.32 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
17to read:end insert

18

8670.32.  

(a) To reduce the risk of an oil spill as a result of
19fuel, cargo, and lube oil transfers, the administrator shall develop
20and implement a screening mechanism and a comprehensive
21risk-based monitoring program for inspecting the bunkering and
22lightering operations of vessels at anchor and alongside a dock.
23This program shall identify those bunkering and lightering
24operations that pose the highest risk of a pollution incident.

25(b) The administrator shall ensure that all bunkering and
26lightering operations that, pursuant to subdivision (a), pose the
27highest risk of a pollution incident are routinely monitored and
28inspected. The administrator shall coordinate the monitoring and
29inspection program with thebegin delete United Statesend delete Coast Guard.

30(c) The administrator shall establish regulations to provide for
31the best achievable protection during bunkering and lightering
32begin delete operations in the marine environment.end deletebegin insert operations.end insert

33(d) This section shall remain in effect only until January 1, 2015,
34and as of that date is repealed, unless a later enacted statute, that
35is enacted before January 1, 2015, deletes or extends that date.

36begin insert

begin insertSEC. 26.end insert  

end insert

begin insertSection 8670.33 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
37to read:end insert

38

8670.33.  

(a) If the operator of a tank ship or tank barge for
39which a contingency plan has not been approved desires to have
40the tank ship or tank barge enterbegin delete marineend delete waters of the state, the
P53   1administrator may give approval by telephone or facsimile machine
2for the entry of the tank ship or tank barge intobegin delete marineend delete watersbegin insert of
3the stateend insert
under an approved contingency plan applicable to a
4terminal or tank ship, if all of the following are met:

5(1) The terminal or tank ship is the destination of the tank ship
6or tank barge.

7(2) The operator of the terminal or the tank ship provides the
8administrator advance written assurance that the operator assumes
9all responsibility for the operations of the tank ship or tank barge
10while it is inbegin delete marineend delete watersbegin insert of the stateend insert traveling to or from the
11terminal. The assurance may be delivered by hand or by mail or
12may be sent by facsimile machine, followed by delivery of the
13original.

14(3) The approved terminal or tank ship contingency plan
15includes all conditions the administrator requires for the operations
16of tank ship or tank barges traveling to and from the terminal.

17(4) The tank ship or tank barge and its operations meet all
18requirements of the contingency plan for the tank ship or terminal
19that is the destination of the tank ship or tank barge.

20(5) The tank ship or tank barge without an approved contingency
21plan has not enteredbegin delete marineend delete watersbegin insert of the stateend insert more than once in
22the 12-month period preceding the request made under this section.

23(b) At all times that a tank ship or tank barge is inbegin delete marineend delete waters
24begin insert of the stateend insert pursuant to subdivision (a), its operators and all their
25agents and employees shall operate the vessel in accordance with
26the applicable operations manual or, if there is an oil spill, in
27accordance with the directions of the administrator and the
28applicable contingency plan.

29begin insert

begin insertSEC. 27.end insert  

end insert

begin insertSection 8670.34 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
30to read:end insert

31

8670.34.  

This article shall not apply to any tank vessel, nontank
32vessel, or vessel carrying oil as a secondary cargo that enters
33begin delete marineend delete waters of the state because of imminent danger to the lives
34of crew members or if enteringbegin delete marineend delete waters of the state will
35substantially aid in preventing an oil spill or other harm to public
36safety or the environment, if the operators of the tank vessel,
37nontank vessel, or vessel carrying oil as a secondary cargo comply
38with all of the following:

39(a) The operators or crew of the tank vessel, nontank vessel, or
40vessel carrying oil as a secondary cargobegin delete compliesend deletebegin insert complyend insert at all
P54   1times with all orders and directions given by the administrator, or
2his or her designee, while the tank vessel, nontank vessel, or vessel
3carrying oil as a secondary cargo is inbegin delete marineend delete waters of the state,
4unless the orders or directions are contradicted by orders or
5directions of the Coast Guard.

6(b) Except for fuel, oil may be transferred to or from the tank
7vessel, nontank vessel, or vessel carrying oil as a secondary cargo
8while it is inbegin delete marineend delete waters of the state only if permission is
9obtained for the transfer of oil and one of the following conditions
10is met:

11(1) The transfer is necessary for the safety of the crew.

12(2) The transfer is necessary to prevent harm to public safety
13or the environment.

14(3) An oil spill contingency plan is approved or made applicable
15to the tank vessel, nontank vessel, or vessel carrying oil as a
16secondary cargo, under subdivision (c).

17(c) The tank vessel, nontank vessel, or vessel carrying oil as a
18secondary cargo shall leave thebegin delete marineend delete waters of the state as soon
19as it may do so without imminent risk of harm to the crew, public
20safety, or the environment, unless an oil spill contingency plan is
21approved or made applicable to it under this article.

22begin insert

begin insertSEC. 28.end insert  

end insert

begin insertSection 8670.35 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
23to read:end insert

24

8670.35.  

(a) The administrator, taking into consideration the
25California oil spill contingency plan, shall promulgate regulations
26regarding the adequacy of oil spillbegin delete contingency planend delete elements of
27begin delete business and hazardous materialsend delete area plans required pursuant to
28Section 25503 of the Health and Safety Code. In developing the
29begin delete guidelines,end deletebegin insert regulations,end insert the administrator shall consult with the
30Oil Spill Technical Advisory Committee.

31(b) begin deleteAny local government end deletebegin insertThe administrator may offer, to a
32unified program agency end insert
with jurisdiction over or directly adjacent
33tobegin delete marineend delete watersbegin delete may apply forend deletebegin insert of the state,end insert a grant to complete,
34update, or revise an oil spillbegin delete contingency planend delete elementbegin insert of the area
35planend insert
.

36(c) Eachbegin delete contingency planend deletebegin insert oil spillend insert element established under
37this section shall include provisions for training fire and police
38personnel in oil spill response and cleanup equipment use and
39operations.

P55   1(d) Eachbegin delete contingency planend deletebegin insert oil spillend insert element prepared under this
2section shall be consistent with the local government’s local coastal
3program as certified under Section 30500 of the Public Resources
4Code, the California oil spill contingency plan, and the National
5Contingency Plan.

6(e) begin deleteThe end deletebegin insertIf a grant is awarded, the end insertadministrator shall review
7and approve eachbegin delete contingency planend deletebegin insert oil spillend insert element established
8pursuant to this section. If, upon review, the administrator
9determines that thebegin delete contingency planend deletebegin insert oil spillend insert element is inadequate,
10the administrator shall return it to the agency that prepared it,
11specifying the nature and extent of the inadequacies, and, if
12practicable, suggesting modifications. Thebegin delete local governmentend deletebegin insert unified
13programend insert
agency shall submit a new or modifiedbegin delete planend deletebegin insert elementend insert
14 within 90 days after thebegin delete planend deletebegin insert elementend insert was returned, responding to
15the findings and incorporating any suggested modifications.

16(f) The administrator shall review the preparedness ofbegin delete local
17governmentsend delete
begin insert unified program agenciesend insert to determine whether a
18program of grants for completing oil spillbegin delete contingency planend delete
19 elements is desirable and should be continued. If the administrator
20determines that local government preparedness should be improved,
21the administrator shall request the Legislature to appropriate funds
22from the Oil Spill Prevention and Administration Fund for the
23purposes of this section.

begin delete

24(g) This section shall become operative on January 1, 2012.

end delete
25begin insert

begin insertSEC. 29.end insert  

end insert

begin insertSection 8670.36 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
26to read:end insert

27

8670.36.  

begin delete(a)end deletebegin deleteend deleteThe administrator shall, within five working days
28after receipt of a contingency plan prepared pursuant to Section
298670.28 or 8670.35,begin delete sendend deletebegin insert postend insert a notice that the plan is available
30forbegin delete review to the Oil Spill Technical Advisory Committee.end deletebegin insert review.end insert
31 The administrator shall send a copy of the plan within two working
32days after receiving a request from the Oil Spill Technical Advisory
33Committee. The State Lands Commission and the California
34Coastal Commission shall review the plans for facilities or local
35governments within the coastal zone. The San Francisco Bay
36Conservation and Development Commission shall review the plans
37forbegin delete marineend delete facilities or local governments within the area described
38in Sections 66610 and 29101 of the Public Resources Code. Any
39state agency or committee that comments shall submit its comments
40to the administrator withinbegin delete 60end deletebegin insert 15end insert days of receipt of the plan. The
P56   1administrator shall consider allbegin delete comments in approving or
2disapproving the plan.end delete
begin insert comments.end insert

begin delete

3(b) This section shall become operative on January 1, 2012.

end delete
4begin insert

begin insertSEC. 30.end insert  

end insert

begin insertSection 8670.37 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
5to read:end insert

6

8670.37.  

(a) The administrator, with the assistance of the State
7Lands Commission, the California Coastal Commission,begin delete andend delete the
8executive director of the San Francisco Bay Conservation and
9Development Commission,begin insert or other appropriate agency,end insert shall
10carry out studies with regard to improvements to contingency
11planning and oil spill response equipment and operations.

12(b) To the greatest extent possible, these studies shall be
13coordinated with studies being done by the federal government,
14and other appropriate state and international entities, and
15duplication with the efforts of other entities shall be minimized.

16(c) The administrator, the State Lands Commission, the
17California Coastal Commission,begin delete andend delete thebegin delete Executive Directorend delete
18begin insert executive directorend insert of the San Francisco Bay Conservation and
19Development Commission,begin insert or other appropriate agencyend insert may be
20reimbursed for all costs incurred in carrying out the studies under
21this section from the Oil Spill Prevention and Administration Fund.

22begin insert

begin insertSEC. 31.end insert  

end insert

begin insertSection 8670.37.5 of the end insertbegin insertGovernment Codeend insertbegin insert is
23amended to read:end insert

24

8670.37.5.  

(a) The administrator shall establish a network of
25rescue and rehabilitation stations forbegin delete sea birds,end deletebegin insert wildlife injured by
26oil spills, includingend insert
seabegin delete otters,end deletebegin insert ottersend insert and other marine mammals.
27In addition to rehabilitative care, the primary focus of the Oiled
28Wildlife Care Network shall include proactive oiled wildlife search
29and collection rescue efforts. These facilities shall be established
30and maintained in a state of preparedness to provide the best
31achievable treatment forbegin delete marine mammalsend deletebegin insert wildlife, mammals,end insert and
32birds affected by an oil spill inbegin delete marineend delete watersbegin insert of the stateend insert. The
33administrator shall consider all feasible management alternatives
34for operation of the network.

35(b) begin insert(1)end insertbegin insertend insertThe first rescue and rehabilitation station established
36pursuant to this section shall be located within the sea otter range
37on the central coast. The administratorbegin insert initiallyend insert shall establish
38regional oiled wildlife rescue and rehabilitation facilities in the
39Los Angeles Harbor area, the San Francisco Bay area, the San
40Diego area, the Monterey Bay area, the Humboldt County area,
P57   1and the Santa Barbarabegin delete area, andend deletebegin insert area. The administrator alsoend insert may
2establishbegin delete thoseend delete facilities in otherbegin delete coastalend delete areas of the state as the
3administrator determines to be necessary.begin delete Oneend delete

4begin insert(2)end insertbegin insertend insertbegin insertOneend insert or more of the oiled wildlife rescue and rehabilitation
5stations shall be open to the public for educational purposes and
6shall be available forbegin delete marineend delete wildlife health research. Wherever
7possible in the establishment of these facilities, the administrator
8shall improve existing authorizedbegin delete marine mammalend deletebegin insert wildlifeend insert
9 rehabilitation facilities and may expand or take advantage of
10existing educational or scientific programs and institutions for
11oiled wildlife rehabilitation purposes. Expenditures shall be
12reviewed by the agencies and organizations specified in subdivision
13(c).

14(c) The administrator shall consult with the United States Fish
15and Wildlife Service, the National Marine Fisheries Service, the
16California Coastal Commission, thebegin delete Executive Directorend deletebegin insert executive
17directorend insert
of the San Francisco Bay Conservation and Development
18Commission, the Marine Mammal Center, and the International
19Bird Rescuebegin delete Centerend delete in the design, planning, construction, and
20operation of the rescue and rehabilitation stations. All proposals
21for the rescue and rehabilitation stations shall be presented before
22a public hearing prior to the construction and operation of any
23rehabilitation station, and, upon completion of the coastal
24protection element of the California oil spill contingency plan,
25shall be consistent with the coastal protection element.

26(d) The administrator may enter into agreements with nonprofit
27organizations to establish and equip wildlife rescue and
28rehabilitation stations and to ensure that they are operated in a
29professional manner in keeping with the pertinent guidance
30documents issued by thebegin delete Office of Spill Prevention and Response
31in the Department of Fish and Game.end delete
begin insert administrator.end insert The
32implementation of the agreement shall not constitute a California
33public works project. The agreement shall be deemed a contract
34for wildlife rehabilitation as authorized by Section 8670.61.5.

35(e) In the event of a spill, the responsible party may request that
36the administrator perform the rescue and rehabilitation of oiled
37wildlife required of the responsible party pursuant to this chapter
38if the responsible party and the administrator enter into an
39agreement for the reimbursement of the administrator’s costs
40incurred in taking the requested action. If the administrator
P58   1performs the rescue and rehabilitation of oiled wildlife, the
2administrator shall primarily utilize the network of rescue and
3rehabilitation stations established pursuant to subdivision (a),
4unless more immediate care is required. Any of those activities
5conducted pursuant to this section or Section 8670.56.5 or
68670.61.5 shall be performed under the direction of the
7administrator. This subdivision does not remove the responsible
8party from liability for the costs of,begin delete norend deletebegin insert orend insert the responsibility for,
9the rescue and rehabilitation of oiled wildlife, as established by
10this chapter. This subdivision does not prohibit an owner or
11operator from retaining, in a contingency plan prepared pursuant
12to this article, wildlife rescue and rehabilitation services different
13from the rescue and rehabilitation stations established pursuant to
14this section.

15(f) (1) The administrator shall appoint a rescue and
16rehabilitation advisory board to advise the administrator regarding
17operation of the network of rescue and rehabilitation stations
18established pursuant to subdivision (a), including the economic
19operation and maintenance of the network. For the purpose of
20assisting the administrator in determining what constitutes the best
21achievable treatment for oiled wildlife, the advisory board shall
22provide recommendations to the administrator on the care achieved
23by current standard treatment methods, new or alternative treatment
24methods, the costs of treatment methods, and any other information
25that the advisory board believes that the administrator might find
26useful in making that determination. The administrator shall consult
27with the advisory board in preparing the administrator’s submission
28to the Legislature pursuant tobegin delete subparagraph (A) of paragraph (2)
29of subdivision (end delete
begin deletelend deletebegin delete) of Section 8670.48.end deletebegin insert subdivision (a) of Section
308670.40.5.end insert
The administrator shall present the recommendations
31of the advisory board to the Oil Spill Technical Advisory
32Committee created pursuant to Article 8 (commencing with Section
338670.54), upon the request of the committee.

34(2) The advisory board shall consist of a balance between
35representatives of the oil industry, wildlife rehabilitation
36organizations, and academia. One academic representative shall
37be from a veterinary school within this state. The United States
38Fish and Wildlife Service and the National Marine Fisheries
39Service shall be requested to participate as ex officio members.

P59   1(3) (A) The Legislature hereby finds and declares that since
2the administrator may rely on the expertise provided by the
3volunteer members of the advisory board and may be guided by
4their recommendations in making decisions that relate to the
5operation of the network of rescue and rehabilitation stations, those
6members should be entitled to the same immunity from liability
7that is provided other public employees.

8(B) Members of the advisory board, while performing functions
9within the scope of advisory board duties, shall be entitled to the
10same rights and immunities granted public employees by Article
113 (commencing with Section 820) of Chapter 1 of Part 2 of
12Division 3.6 of Title 1. Those rights and immunities are deemed
13to have attached, and shall attach, as of the date of appointment
14of the member to the advisory board.

15(g) The administrator shall ensure the state’s ability to prevent
16the contamination of wildlife and to identify, collect, rescue, and
17treat oiled wildlife through all of the following:

18(1) Providing for the recruitment and training of an adequate
19network of wildlife specialists and volunteers from Oiled Wildlife
20Care Network participant organizations who can be called into
21immediate action in the event of an oil spill to assist in the field
22with collection of live oiled wildlife. The training shall include a
23process for certification of trained volunteers and renewal of
24certifications. The initial wildlife rescue training shall include field
25experience in species identification and appropriate field collection
26techniques for species at risk in different spills. In addition to
27training in wildlife rescue, the administrator shall provide for
28appropriate hazardous materials training for new volunteers and
29contract personnel, with refresher courses offered as necessary to
30allow for continual readiness of search and collection teams.begin delete The
31Office of Spill Prevention and Response in the Department of Fish
32and Game is not requiredend delete
begin insert Moneys in the Oil Spill Prevention and
33Administration Fund shall not be usedend insert
to reimburse volunteers for
34time or travel associated with requiredbegin delete wildlife rescue or hazardous
35materialsend delete
training.

36(2) Developing and implementing a plan for the provision of
37emergency equipment for wildlife rescue in strategic locations to
38facilitate ready deployment in the case of an oil spill. The
39administrator shall ensure that the equipment identified as
40necessary in his or her wildlife response plan is available and
P60   1deployed in a timely manner to assist in providing the best
2achievable protection and collection efforts.

3(3) Developing the capacity of the Oiled Wildlife Care Network
4to recruit and train an adequate field team for collection of live
5oiled wildlife, as specified in paragraph (1), by providing staffing
6for field operations, coordination, and volunteer outreach for the
7Oiled Wildlife Care Network. The duties of the field operations
8and volunteer outreach staff shall include recruitment and
9coordination of additional participation in the Oiled Wildlife Care
10Network by other existing organizations with experience and
11expertise in wildlife rescue and handling, including scientific
12organizations, educational institutions, public agencies, and
13nonprofit organizations dedicated to wildlife conservation, and
14recruitment, training, and supervision of volunteers from Oiled
15Wildlife Care Network participating organizations.

16(4) Ensuring that qualified persons with experience and expertise
17in wildlife rescue are assigned to oversee and supervise wildlife
18recovery search and collection efforts, as specified in the
19administrator’s wildlife response plan. The administrator shall
20provide for and ensure that all persons involved in field collection
21of oiled wildlife receive training in search and capture techniques
22and hazardous materials certification, as appropriate.

23begin insert

begin insertSEC. 32.end insert  

end insert

begin insertSection 8670.37.51 of the end insertbegin insertGovernment Codeend insertbegin insert is
24amended to read:end insert

25

8670.37.51.  

(a) begin deleteNo end deletebegin insertA end inserttank vessel or vessel carrying oil as a
26secondary cargobegin delete mayend deletebegin insert shall notend insert be used to transport oil across
27begin delete marineend delete waters of the state unless thebegin insert owner orend insert operator hasbegin insert applied
28for andend insert
obtained a certificate of financial responsibility issued by
29the administrator for that vessel or for the owner of all of the oil
30contained in and to be transferred to or from that vessel.

31(b) begin deleteNo end deletebegin insertAn end insertoperator of a marine terminal within the statebegin delete mayend delete
32begin insert shall notend insert transfer oil to or from a tank vessel or vessel carrying oil
33as a secondary cargo unless the operator of the marine terminal
34has received a copy of a certificate of financial responsibility issued
35by the administrator for the operator of that vessel or for all of the
36oil contained in and to be transferred to or from that vessel.

37(c) begin deleteNo end deletebegin insertAn end insertoperator of a marine terminal within the statebegin delete mayend delete
38begin insert shall notend insert transfer oil to or from any vessel that is or is intended to
39be used for transporting oil as cargo to or from a second vessel
40unless the operator of the marine terminal has first received a copy
P61   1of a certificate of financial responsibility issued by the
2administrator for the person responsible for both the first and
3second vessels or all of the oil contained in both vessels, as well
4as all the oil to be transferred to or from both vessels.

5(d)  begin deleteNo person operate a marine facility unless the owner or
6operator of the marine facility has first obtained end delete
begin insertAn owner or
7operator of a facility where a spill could impact waters of the state
8shall apply for and obtain end insert
a certificate of financial responsibility
9begin delete fromend deletebegin insert issued byend insert the administrator for thebegin delete marineend delete facilitybegin insert or the oil
10to be handled, stored, or transported by the facilityend insert
.

begin delete

11(e) No tank vessel or vessel carrying oil as a secondary cargo
12may be used to transport oil across marine waters of the state
13unless, at least 24 hours prior to the transport, the administrator
14has received both of the following:

end delete
begin delete

15(1) A copy of a certificate applicable to that vessel or to all of
16the oil in that vessel at all times during transport.

end delete
begin delete

17(2) A copy of a written statement by the holder of the applicable
18certificate authorizing its application to the vessel.

end delete
begin insert

19(e) Pursuant to Section 8670.37.58, nontank vessels shall obtain
20a certificate of financial responsibility.

end insert
21begin insert

begin insertSEC. 33.end insert  

end insert

begin insertSection 8670.37.52 of the end insertbegin insertGovernment Codeend insertbegin insert is
22amended to read:end insert

23

8670.37.52.  

The certificate of financial responsibility shall be
24conclusive evidence that the person or entity holding the certificate
25is the party responsible for the specified vessel,begin delete marineend delete facility, or
26oil for purposes of determining liability pursuant to this chapter.

27begin insert

begin insertSEC. 34.end insert  

end insert

begin insertSection 8670.37.53 of the end insertbegin insertGovernment Codeend insertbegin insert is
28amended to read:end insert

29

8670.37.53.  

(a) To receive a certificate of financial
30responsibility for a tank vessel or for all of the oil contained within
31begin delete such aend deletebegin insert thatend insert vessel, the applicant shall demonstrate to the satisfaction
32of the administrator the financial ability to pay at least one billion
33dollars ($1,000,000,000) for any damages that may arise during
34the term of the certificate.

35(b) The administrator may establish a lower standard of financial
36responsibility for small tank barges, vessels carrying oil as a
37secondary cargo, and small marine fueling facilities. The standard
38shall be based on the quantity of oil that can be carried or stored
39and the risk of spill intobegin delete marineend delete watersbegin insert of the stateend insert. The
40administrator shall not set a standard that is less than the expected
P62   1costs from a reasonable worst case oil spill intobegin delete marineend delete watersbegin insert of
2the stateend insert
.

begin delete

3(c)(1)

end delete

4begin insert(c)end insertbegin insertend insertbegin insert(1)end insertbegin insertend insertTo receive a certificate of financial responsibility for a
5begin delete marineend delete facility, the applicant shall demonstrate to the satisfaction
6of the administrator the financial ability to pay for any damages
7that might arise during a reasonable worst case oil spill intobegin delete marineend delete
8 watersbegin insert of the stateend insert that results from the operations of thebegin delete marineend delete
9 facility. The administrator shall consider criteria including, but
10not necessarily limited to, the amount of oil that could be spilled
11intobegin delete marineend delete watersbegin insert of the stateend insert from the facility, the cost of cleaning
12up spilled oil, the frequency of operations at the facility, and the
13damages that could result from a spill.

begin delete

14(2) The administrator may issue a certificate for a marine facility
15upon a lesser showing of financial resources for a period of not
16longer than three years if the administrator finds all of the
17following:

end delete
begin delete

18(A) The marine facility was operating on January 1, 1991.

end delete
begin delete

19(B) Continued operation is necessary to finance abandonment
20of the marine facility.

end delete
begin delete

21(C) The financial resources the operator is able to demonstrate
22are reasonably sufficient to cover the damages from foreseeable
23spills from the facility.

end delete
begin insert

24(2) The administrator shall adopt regulations to implement this
25section.

end insert
26begin insert

begin insertSEC. 35.end insert  

end insert

begin insertSection 8670.37.55 of the end insertbegin insertGovernment Codeend insertbegin insert is
27amended to read:end insert

28

8670.37.55.  

(a) An owner or operator of more than one tank
29vessel, vessel carrying oil as a secondary cargo, nontank vessel,
30orbegin delete marineend delete facility shall only be required to obtain one certificate
31of financial responsibility for all of those vessels andbegin delete marineend delete
32 facilities owned or operated.

33(b) If a person holds a certificate for more than one tank vessel,
34vessel carrying oil as a secondary cargo, nontank vessel, orbegin delete marineend delete
35 facility and a spill or spills occurs from one or more of those
36 vessels orbegin delete marineend delete facilities for which the owner or operator may
37be liable for damages in an amount exceeding 5 percent of the
38financial resources reflected by the certificate, as determined by
39the administrator, the certificate shall immediately be considered
40inapplicable to any vessel orbegin delete marineend delete facility not associated with
P63   1the spill. In that event, the owner or operator shall demonstrate to
2the satisfaction of the administrator the amount of financial ability
3required pursuant to this article, as well as the financial ability to
4pay all damages that arise or have arisen from the spill or spills
5begin delete whichend deletebegin insert thatend insert have occurred.

6begin insert

begin insertSEC. 36.end insert  

end insert

begin insertSection 8670.37.58 of the end insertbegin insertGovernment Codeend insertbegin insert is
7amended to read:end insert

8

8670.37.58.  

(a) A nontank vesselbegin delete required to have a
9contingency plan pursuant to this chapterend delete
shall not enterbegin delete marineend delete
10 waters of the state unless the nontank vessel owner or operator has
11provided to the administrator evidence of financial responsibility
12that demonstrates, to the administrator’s satisfaction, the ability
13to pay at least three hundred million dollars ($300,000,000) to
14cover damages caused by a spill, and the owner or operator of the
15nontank vessel has obtained a certificate of financial responsibility
16from the administrator for the nontank vessel.

17(b) Notwithstanding subdivision (a), the administrator may
18establish a lower standard of financial responsibility for a nontank
19vessel that has a carrying capacity of 6,500 barrels of oil or less,
20or for a nontank vessel that is owned and operated by California
21or a federal agency and has a carrying capacity of 7,500 barrels of
22oil or less. The standard shall be based upon the quantity of oil
23that can be carried by the nontank vessel and the risk of an oil spill
24intobegin delete marineend delete watersbegin insert of the stateend insert. The administrator shall not set a
25standard that is less than the expected cleanup costs and damages
26from an oil spill intobegin delete marineend delete watersbegin insert of the stateend insert.

27(c) The administrator may adopt regulations to implement this
28section.

29begin insert

begin insertSEC. 37.end insert  

end insert

begin insertSection 8670.40 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
30to read:end insert

31

8670.40.  

(a) The State Board of Equalization shall collect a
32fee in an amount determined by the administrator to be sufficient
33begin insert to pay the reasonable regulatory costsend insert to carry out the purposes
34set forth in subdivision (e), and a reasonable reserve for
35contingencies. The annual assessment shall not exceed six and
36one-half cents ($0.065) per barrel of crude oil or petroleum
37products. begin delete Beginning January 1, 2015, the annual assessment shall
38not exceed five cents ($0.05) per barrel of crude oil or petroleum
39products.end delete
begin insert The oil spill prevention and administration fee shall be
P64   1based on each barrel of crude oil or petroleum products, as
2described in subdivision (b).end insert

3(b) (1) The oil spill prevention and administration fee shall be
4imposed upon a person owning crude oil at the time thatbegin insert theend insert crude
5oil is received at a marine terminalbegin insert, by any mode of delivery that
6passed over, across, under, or through waters of the state,end insert
from
7within or outside the state, and upon a person who owns petroleum
8products at the time that those petroleum products are received at
9a marine terminalbegin insert, by any mode of delivery that passed over, across,
10under, or through waters of the state,end insert
from outside this state. The
11fee shall be collected by the marine terminal operator from the
12owner of the crude oil or petroleum productsbegin delete based onend deletebegin insert forend insert each
13barrel of crude oil or petroleum products begin delete so received by means of
14a vessel operating in, through, or across the marine waters of the
15state. In addition, an operator of a pipeline shall pay the oil spill
16prevention and administration fee for each barrel of crude oil
17originating from a production facility in marine waters and
18 transported in the state by means of a pipeline operating across,
19under, or through the marine waters of the stateend delete
begin insert receivedend insert.begin delete Theend delete

begin insert

20(2) The oil spill prevention and administration fee shall be
21imposed upon a person owning crude oil or petroleum products
22at the time that the crude oil or petroleum products are received
23at a refinery within the state by any mode of delivery that passed
24over, across, under, or through waters of the state, whether from
25within or outside the state. The refinery shall collect the fee from
26the owner of the crude oil or petroleum products for each barrel
27received.

end insert
begin insert

28(3) (A) There is a rebuttable presumption that crude oil or
29petroleum products received at a marine terminal or a refinery
30have passed over, across, under, or through waters of the state.
31This presumption may be overcome by a marine terminal operator,
32refinery operator, or owner of the crude oil or petroleum products
33by showing that the crude oil or petroleum products did not pass
34over, across, under, or through waters of the state. Evidence to
35rebut the presumption may include, but shall not be limited to,
36documentation, including shipping documents, bills of lading,
37highway maps, rail maps, transportation maps, related
38transportation receipts, or another medium that shows the crude
39oil or petroleum products did not pass over, across, under, or
40through waters of the state.

end insert
begin insert

P65   1(B) Notwithstanding the petition for redetermination and claim
2for refund provisions of the Oil Spill Response, Prevention, and
3Administration Fees Law (Part 24 (commencing with Section
446001) of Division 2 of the Revenue and Taxation Code), the State
5Board of Equalization shall not do either of the following:

end insert
begin insert

6(i) Accept or consider a petition for redetermination of fees
7determined pursuant to this section if the petition is founded upon
8the grounds that the crude oil or petroleum products did or did
9not pass over, across, under, or through waters of the state.

end insert
begin insert

10(ii) Accept or consider a claim for a refund of fees paid pursuant
11to this section if the claim is founded upon the grounds that the
12crude oil or petroleum products did or did not pass over, across,
13under, or through waters of the state.

end insert
begin insert

14(C) The State Board of Equalization shall forward to the
15administrator an appeal of a redetermination or a claim for a
16refund of fees that is based on the grounds that the crude oil or
17petroleum products did or did not pass over, across, under, or
18through waters of the state.

end insert

19begin insert(4)end insertbegin insertend insertbegin insertTheend insert fees shall be remitted to thebegin delete boardend deletebegin insert State Board of
20Equalizationend insert
by thebegin insert owner of the crude oil or petroleum products,
21the refinery operator, or the marineend insert
terminalbegin delete or pipelineend delete operator
22on the 25th day of the month based upon the number of barrels of
23crude oil or petroleum products received at abegin insert refinery orend insert marine
24terminalbegin delete or transported by pipelineend delete during the preceding month.
25A fee shall not be imposed pursuant to this section with respect to
26crude oil or petroleum products if the person who would be liable
27for that fee, or responsible for its collection, establishes that the
28fee hasbegin insert alreadyend insert been collected by abegin insert refinery or marineend insert terminal
29operator registered under this chapter or paid to thebegin delete boardend deletebegin insert State
30Board of Equalizationend insert
with respect to the crude oil or petroleum
31product.

begin insert

32(5) The oil spill prevention and administration fee shall not be
33collected by a marine terminal operator or refinery operator or
34imposed on the owner of crude oil or petroleum products if the fee
35has been previously collected or paid on the crude oil or petroleum
36products at another marine terminal or refinery. It shall be the
37 obligation of the marine terminal operator, refinery operator, or
38owner of crude oil or petroleum products to demonstrate that the
39fee has already been paid on the same crude oil or petroleum
40products.

end insert
begin delete

P66   1(2)

end delete

2begin insert(6)end insert An owner of crude oil or petroleum products is liable for
3the fee until it has been paid to thebegin delete board,end deletebegin insert State Board of
4Equalization,end insert
except that payment to abegin insert refinery operator orend insert marine
5terminal operator registered under this chapter is sufficient to
6relieve the owner from further liability for the fee.

begin delete

7(3)

end delete

8begin insert(7)end insert On or before January 20, the administrator shall annually
9prepare a plan that projects revenues and expenses over three fiscal
10years, including the current year. Based on the plan, the
11administrator shall set the fee so that projected revenues, including
12any interestbegin insert and inflationend insert, are equivalent to expenses as reflected
13in the current Budget Act and in the proposed budget submitted
14by the Governor. In setting the fee, the administrator may allow
15for a surplus if the administrator finds that revenues will be
16exhausted during the period covered by the plan or that the surplus
17is necessary to cover possible contingencies. The administrator
18shall notify thebegin delete boardend deletebegin insert State Board of Equalizationend insert of the adjusted
19fee rate, which shall be rounded to no more than four decimal
20places, to be effective the first day of the month beginning not less
21than 30 days from the date of the notification.

22(c) The moneys collected pursuant to subdivision (a) shall be
23deposited into the fund.

24(d) Thebegin delete boardend deletebegin insert State Board of Equalizationend insert shall collect the fee
25and adopt regulations for implementing the fee collection program.

26(e) The fee described in this section shall be collected solely
27for all of the following purposes:

28(1) To implement oil spill prevention programs through rules,
29regulations, leasing policies, guidelines, and inspections and to
30implement research into prevention and control technology.

31(2) To carry out studies that may lead to improved oil spill
32prevention and response.

33(3) To finance environmental and economic studies relating to
34the effects of oil spills.

35(4) To implement, install, and maintain emergency programs,
36equipment, and facilities to respond to, contain, and clean up oil
37spills and to ensure that those operations will be carried out as
38intended.

begin delete

39(5) To respond to an imminent threat of a spill in accordance
40with the provisions of Section 8670.62 pertaining to threatened
P67   1discharges. The cumulative amount of an expenditure for this
2purpose shall not exceed the amount of one hundred thousand
3dollars ($100,000) in a fiscal year unless the administrator receives
4the approval of the Director of Finance and notification is given
5to the Joint Legislative Budget Committee. Commencing with the
61993-94 fiscal year, and each fiscal year thereafter, it is the intent
7of the Legislature that the annual Budget Act contain an
8appropriation of one hundred thousand dollars ($100,000) from
9the fund for the purpose of allowing the administrator to respond
10to threatened oil spills.

end delete
begin delete

11(6)

end delete

12begin insert(5)end insert To reimburse thebegin delete boardend deletebegin insert State Board of Equalizationend insert forbegin insert its
13reasonableend insert
costs incurred to implement this chapter and to carry
14out Part 24 (commencing with Section 46001) of Division 2 of the
15Revenue and Taxation Code.

begin delete

16(7)

end delete

17begin insert(6)end insert Tobegin delete cover costs incurred byend deletebegin insert fundend insert the Oiled Wildlife Care
18Networkbegin delete established by Section 8670.37.5 for training and field
19collection, and search and rescue activities, pursuant to subdivision
20(g) of Section 8670.37.5.end delete
begin insert pursuant to Section 8670.40.5.end insert

21(f) The moneys deposited in the fund shall not be used for
22responding tobegin delete an oilend deletebegin insert aend insert spill.

23(g) The moneys deposited in the fund shall not be used to
24provide a loan to any other fund.

begin delete

25(h) This section shall become operative on January 1, 2012.

end delete
begin insert

26(h) Every person who operates a refinery, a marine terminal in
27waters of the state, or a pipeline shall register with the State Board
28of Equalization, pursuant to Section 46101 of the Revenue and
29Taxation Code.

end insert
begin insert

30(i) The amendments to this section enacted in Senate Bill 861
31of the 2013-14 Regular Session shall become operative 90 days
32after the effective date of Senate Bill 861 of 2013-14 Regular
33Session.

end insert
34begin insert

begin insertSEC. 38.end insert  

end insert

begin insertSection 8670.40.5 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
35to read:end insert

begin insert
36

begin insert8670.40.5.end insert  

(a) For each fiscal year, consistent with this article,
37the administrator shall submit, as a proposed appropriation in the
38Governor’s Budget, an amount up to two million five hundred
39thousand dollars ($2,500,000) for the purpose of equipping,
40operating, and maintaining the network of oiled wildlife rescue
P68   1and rehabilitation stations and proactive oiled wildlife search and
2collection rescue efforts established pursuant to Section 8670.37.5
3and for the support of technology development and research related
4to oiled wildlife care.

5(b) The administrator shall report to the Legislature, upon
6request, on the progress and effectiveness of the network of oiled
7wildlife rescue and rehabilitation stations established pursuant to
8Section 8670.37.5 and the adequacy of the Oil Spill Prevention
9and Administration Fund to meet the purposes for which the
10network was established.

11(c) At the administrator’s request, any funds made available
12for purposes of this section may be directly appropriated to a
13suitable program for wildlife health and rehabilitation within a
14school of veterinary medicine within this state, if an agreement
15exists, consistent with this chapter, between the administrator and
16an appropriate representative of the program for carrying out that
17purpose. The administrator shall attempt to have an agreement in
18place at all times. The agreement shall ensure that the training of,
19and the care provided by, the program staff are at levels that are
20consistent with those standards generally accepted within the
21veterinary profession.

22(d) Any funds made available for purposes of this section shall
23not be considered an offset to any other state funds appropriated
24to the program, the program’s associated school of veterinary
25medicine, or the program’s associated college or university. The
26funds shall not be used for any other purpose. If an offset does
27occur or the funds are used for an unintended purpose, the
28administrator may terminate expenditure of any funds appropriated
29for purposes of this section and the administrator may request a
30reappropriation to accomplish the intended purpose. The
31administrator shall annually review and approve the proposed
32uses of any funds made available for purposes of this section.

end insert
33begin insert

begin insertSEC. 39.end insert  

end insert

begin insertSection 8670.42 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
34to read:end insert

35

8670.42.  

(a) Thebegin delete Department of Fish and Gameend deletebegin insert administratorend insert
36 and the State Lands Commission, independently, shall contract
37with the Department of Finance for the preparation of a detailed
38report that shall be submitted on or before January 1, 2013, and
39no less than once every four years thereafter, to the Governor and
40the Legislature on the financial basis and programmatic
P69   1effectiveness of the state’s oil spill prevention, response, and
2preparedness program. This report shall include an analysis of all
3of the oil spill prevention, response, and preparedness program’s
4major expenditures, fees and fines collected, staffing and equipment
5levels, spills responded to, and other relevant issues. The report
6shall recommend measures to improve the efficiency and
7effectiveness of the state’s oil spill prevention, response, and
8preparedness program, including, but not limited to, measures to
9modify existing contingency plan requirements, to improve
10protection ofbegin insert environmentallyend insert sensitivebegin delete shorelineend delete sites, and to
11ensure adequate and equitable funding for the state’s oil spill
12prevention, response, and preparedness program.

13(b) A report to be submitted pursuant to subdivision (a) shall
14be submitted in compliance with Section 9795.

15begin insert

begin insertSEC. 40.end insert  

end insert

begin insertSection 8670.47.5 of the end insertbegin insertGovernment Codeend insertbegin insert is
16amended to read:end insert

17

8670.47.5.  

The following shall be deposited into the fund:

18(a) The fee required pursuant to Section 8670.48.

19(b) Any federal funds received to pay for response, containment,
20abatement, and rehabilitation costs from an oil spill inbegin delete marineend delete
21 watersbegin insert of the stateend insert.

22(c) Any money borrowed by the Treasurer pursuant to Article
237.5 (commencing with Section 8670.53.1) or any draw on the
24financial security obtained by the Treasurer pursuant to subdivision
25(o) of Section 8670.48.

26(d) Any interest earned on the moneys in the fund.

27(e) Any costs recovered from responsible parties pursuant to
28Section 8670.53 and subdivision (e) of Section 8670.53.1.

29begin insert

begin insertSEC. 41.end insert  

end insert

begin insertSection 8670.48 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
30to read:end insert

31

8670.48.  

(a) (1) A uniform oil spill response fee in an amount
32not exceeding twenty-five cents ($0.25) for each barrel of
33petroleum products, as set by the administrator pursuant to
34subdivision (f), shall be imposed upon a person who owns
35petroleum products at the time the petroleum products are received
36at a marine terminal within this state by means of a vessel from a
37point of origin outside this state. The fee shall bebegin insert collected by the
38marine terminal andend insert
remitted to the State Board of Equalization
39by the terminal operator on the 25th day of each month based upon
P70   1the number of barrels of petroleum products received during the
2preceding month.

3(2) An owner of petroleum products is liable for the fee until it
4has been paid to the state, except that payment to a marine terminal
5operator registered under this chapter is sufficient to relieve the
6owner from further liability for the fee.

7(b) An operator of a pipeline shall also pay a uniform oil spill
8response fee in an amount not exceeding twenty-five cents ($0.25)
9for each barrel of petroleum products, as set by the administrator
10pursuant to subdivision (f), transported into the state by means of
11a pipeline operating across, under, or through thebegin delete marineend delete waters
12of the state. The fee shall be paid on the 25th day of each month
13based upon the number of barrels of petroleum products so
14transported into the state during the preceding month.

15(c) begin delete(1)end deletebegin deleteend deleteAn operator of a refinery shall pay a uniform oil spill
16response fee in an amount not exceeding twenty-five cents ($0.25)
17for each barrel of crude oil, as set by the administrator pursuant
18to subdivision (f), received at a refinery within the statebegin insert by any
19method of transportend insert
. The fee shall be paid on the 25th day of each
20month based upon the number of barrels of crude oil so received
21during the preceding month.

begin delete

22(2) The fee shall not be imposed by a refiner, or a person or
23entity acting as an agent for a refiner, on crude oil produced by an
24independent crude oil producer as defined in paragraph (3). The
25board shall not identify a company as exempt from the fee
26requirements of this section if that company was reorganized, sold,
27or otherwise modified with the intent of circumventing the
28requirements of this section.

end delete
begin delete

29(3) For purposes of this chapter, “independent crude oil
30producer” means a person or entity producing crude oil within this
31state who does not refine crude oil into a product, and who does
32not possess or own a retail gasoline marketing facility.

end delete

33(d) A marine terminal operator shall pay a uniform oil spill
34response fee in an amount not exceeding twenty-five cents ($0.25),
35in accordance with subdivision (g), for each barrel of crude oil, as
36set by the administrator pursuant to subdivision (f), that is
37transported from within this state by means of abegin delete marineend delete vessel to
38a destination outside this state.

39(e) An operator of a pipeline shall pay a uniform oil spill
40response fee in an amount not exceeding twenty-five cents ($0.25),
P71   1in accordance with subdivision (g), for each barrel of crude oil, as
2set by the administrator pursuant to subdivision (f), transported
3out of the state by pipeline.

4(f) (1) The fees required pursuant to this section shall be
5collected during any period for which the administrator determines
6that collection is necessary for any of the following reasons:

7(A) The amount in the fund is less than or equal to 95 percent
8of the designated amount specified in subdivision (a) of Section
946012 of the Revenue and Taxation Code.

10(B) Additional money is required to pay for the purposes
11specified in subdivision (k).

12(C) The revenue is necessary to repay a draw on a financial
13security obtained by the Treasurer pursuant to subdivision (o) or
14borrowing by the Treasurer pursuant to Article 7.5 (commencing
15with Sectionbegin delete 8670.53.1)end deletebegin insert 8670.53.1),end insert including any principal,
16interest, premium, fees, charges, or costs of any kind incurred in
17connection with those borrowings or financial security.

18(2) The administrator, in consultation with the State Board of
19Equalization, and with the approval of the Treasurer, may direct
20the State Board of Equalization to cease collecting the fee when
21the administrator determines that further collection of the fee is
22not necessary for the purposes specified in paragraph (1).

23(3) The administrator, in consultation with the State Board of
24Equalization, shall set the amount of the oil spill response fees.
25The oil spill response fees shall be imposed on all feepayers in the
26same amount. The administrator shall not set the amount of the
27fee at less than twenty-five cents ($0.25) for each barrel of
28petroleum products or crude oil, unless the administrator finds that
29the assessment of a lesser fee will cause the fund to reach the
30designated amount specified in subdivision (a) of Section 46012
31of the Revenue and Taxation Code within four months. The fee
32shall not be less than twenty-five cents ($0.25) for each barrel of
33petroleum products or crude oil if the administrator has drawn
34upon the financial security obtained by the Treasurer pursuant to
35subdivision (o) or if the Treasurer has borrowed money pursuant
36to Article 7.5 (commencing with Section 8670.53.1) and principal,
37interest, premium, fees, charges, or costs of any kind incurred in
38connection with those borrowings remain outstanding or unpaid,
39unless the Treasurer has certified to the administrator that the
P72   1money in the fund is not necessary for the purposes specified in
2paragraph (1).

3(g) The fees imposed by subdivisions (d) and (e) shall be
4imposed in any calendar year beginning the month following the
5month when the total cumulative year-to-date barrels of crude oil
6transported outside the state by all feepayers by means of vessel
7or pipeline exceed 6 percent by volume of the total barrels of crude
8oil and petroleum products subject to oil spill response fees under
9subdivisions (a), (b), and (c) for the prior calendar year.

10(h) For purposes of this chapter, “designated amount” means
11the amounts specified in Section 46012 of the Revenue and
12Taxation Code.

13(i) The administrator, in consultation with the State Board of
14Equalization and with the approval of the Treasurer, shall authorize
15refunds of any money collected that is not necessary for the
16purposes specified in paragraph (1) of subdivision (f). The State
17Board of Equalization, as directed by the administrator, and in
18accordance with Section 46653 of the Revenue and Taxation Code,
19shall refund the excess amount of fees collected to each feepayer
20who paid the fee to the state, in proportion to the amount that each
21feepayer paid into the fund during the preceding 12 monthly
22reporting periods in which there was a fee due, including the month
23in which the fund exceeded the specified amount. If the total
24amount of money in the fund exceeds the amount specified in this
25subdivision by 10 percent or less, refunds need not be ordered by
26the administrator. This section does not require the refund of excess
27fees as provided in this subdivision more frequently than once
28each year.

29(j) The State Board of Equalization shall collect the fee and
30adopt regulations implementing the fee collection program. All
31fees collected pursuant to this section shall be deposited in the Oil
32Spill Response Trust Fund.

33(k) The fee described in this section shall be collected solely
34for any of the following purposes:

35(1) To provide funds to cover promptly the costs of response,
36containment, and cleanup of oil spills intobegin delete marineend delete watersbegin insert of the
37stateend insert
, including damage assessmentbegin delete costs,end deletebegin insert costsend insert and wildlife
38rehabilitation as provided in Section 8670.61.5.

39(2) To cover response and cleanup costs and other damages
40suffered by the state or other persons or entities from oil spills into
P73   1begin delete marine waters, whichend deletebegin insert waters of the state thatend insert cannot otherwise be
2compensated by responsible parties or the federal government.

3(3) To pay claims for damages pursuant to Section 8670.51.

4(4) To pay claims for damages, except for damages described
5in paragraph (7) of subdivision (h) of Section 8670.56.5, pursuant
6to Section 8670.51.1.

7(5) To pay for the cost of obtaining financial security in the
8amount specified in subdivision (b) of Section 46012 of the
9Revenue and Taxation Code, as authorized by subdivision (o).

10(6) To pay indemnity and related costs and expenses as
11authorized by Section 8670.56.6.

12(7) To pay principal, interest, premium, if any, and fees, charges,
13 and costs of any kind incurred in connection with moneys drawn
14by the administrator on the financial security obtained by the
15Treasurer pursuant to subdivision (o) or borrowed by the Treasurer
16pursuant to Article 7.5 (commencing with Section 8670.53.1).

begin delete

17(8) To pay for the costs of rescue, medical treatment,
18rehabilitation, and disposition of oiled wildlife, as incurred by the
19network of oiled wildlife rescue and rehabilitation stations created
20pursuant to Section 8670.37.5.

end delete
begin insert

21(8) [Reserved]

end insert
begin insert

22(9) To respond to an imminent threat of a spill in accordance
23with the provisions of Section 8670.62 pertaining to threatened
24discharges.

end insert

25(l) begin delete(1)end deletebegin deleteend deleteThe interest that the state earns on the funds deposited
26into the Oil Spill Response Trust Fund shall be deposited in the
27fund and shall be used to maintain the fund at the designated
28amount specified in subdivision (a) of Section 46012 of the
29Revenue and Taxation Code.begin delete Interest earned until July 1, 1998,
30on funds deposited pursuant to subdivision (a) of Section 46012
31of the Revenue and Taxation Code, as determined jointly by the
32Controller and the Director of Finance, shall be available upon
33appropriation by the Legislature in the Budget Act to establish,
34equip, operate, and maintain the network of rescue and
35rehabilitation stations for oiled wildlife as described in Section
368670.37.5 and to support technology development and research
37related to oiled wildlife care. Interest earned on the financial
38security portion of the fund, required to be accessible pursuant to
39subdivision (b) of Section 46012 of the Revenue and Taxation
40Code shall not be available for that purpose.end delete
If the amount in the
P74   1fund exceeds that designated amount, the interestbegin delete not needed to
2equip, operate, and maintain the network of rescue and
3rehabilitation stations, or for appropriate technology development
4and research regarding oiled wildlife care,end delete
shall be deposited into
5the Oil Spill Prevention and Administration Fund, and shall be
6available for the purposes authorized by Article 6 (commencing
7with Section 8670.38).

begin delete

8(2) (A) For each fiscal year, consistent with this article, the
9administrator shall submit, as a proposed appropriation in the
10Governor’s Budget, an amount up to two million dollars
11($2,000,000) of the interest earned on the funds deposited into the
12Oil Spill Response Trust Fund for the purpose of equipping,
13operating, and maintaining the network of oiled wildlife rescue
14and rehabilitation stations and proactive oiled wildlife search and
15collection rescue efforts established pursuant to Section 8670.37.5
16and for support of technology development and research related
17to oiled wildlife care. The remaining interest, if any, shall be
18deposited into the Oil Spill Prevention and Administration Fund
19pursuant to paragraph (1).

end delete
begin delete

20(B) The administrator shall report to the Legislature not later
21than June 30, 2002, on the progress and effectiveness of the
22network of oiled wildlife rescue and rehabilitation stations
23established pursuant to Section 8670.37.5, and the adequacy of
24the Oil Spill Response Trust Fund to meet the purposes for which
25it was established.

end delete
begin delete

26(C) At the administrator’s request, the funds made available
27pursuant to this paragraph may be directly appropriated to a suitable
28program for wildlife health and rehabilitation within a school of
29veterinary medicine within this state, provided that an agreement
30exists, consistent with this chapter, between the administrator and
31an appropriate representative of the program for carrying out that
32purpose. The administrator shall attempt to have an agreement in
33place at all times. The agreement shall ensure that the training of,
34and the care provided by, the program staff are at levels that are
35consistent with those standards generally accepted within the
36veterinary profession.

end delete
begin delete

37(D) The funds made available pursuant to this paragraph shall
38not be considered an offset to any other state funds appropriated
39to the program, the program’s associated school of veterinary
40medicine, or the program’s associated college or university, and
P75   1the funds shall not be used for any other purpose. If an offset does
2occur or the funds are used for an unintended purpose, expenditure
3of any appropriation of funds pursuant to this paragraph may be
4terminated by the administrator and the administrator may request
5a reappropriation to accomplish the intended purpose. The
6administrator shall annually review and approve the proposed uses
7of any funds made available pursuant to this paragraph.

end delete

8(m) The Legislature finds and declares that effective response
9to oil spills requires that the state have available sufficient funds
10in a response fund. The Legislature further finds and declares that
11maintenance of that fund is of utmost importance to the state and
12that the money in the fund shall be used solely for the purposes
13specified in subdivision (k).

begin delete

14(n) It is the intent of the Legislature, in enacting this section,
15that the fee shall not be imposed by a refiner, or a person or entity
16acting as an agent for a refiner, on crude oil produced by an
17independent crude oil producer.

end delete
begin insert

18(n) [Reserved]

end insert

19(o) The Treasurer shall obtain financial security, in the
20designated amount specified in subdivision (b) of Section 46012
21of the Revenue and Taxation Code, in a formbegin delete which,end deletebegin insert that,end insert in the
22event of an oil spill, may be drawn upon immediately by the
23administrator upon making the determinations required by
24paragraph (2) of subdivision (a) of Section 8670.49. The financial
25security may be obtained in any of the forms described in
26subdivision (b) of Section 8670.53.3, as determined by the
27Treasurer.

28(p) This section does not limit the authority of the administrator
29to raise oil spill response fees pursuant to Section 8670.48.5.

30begin insert

begin insertSEC. 42.end insert  

end insert

begin insertSection 8670.48.3 of the end insertbegin insertGovernment Codeend insertbegin insert is
31amended to read:end insert

32

8670.48.3.  

(a) Notwithstanding subparagraph (A) of paragraph
33(1) of subdivision (f) of Section 8670.48, a loan or other transfer
34of money from the fund to the General Fund pursuant to the Budget
35Act that reduces the balance of the Oil Spill Response Trust Fund
36to less than or equal to 95 percent of the designated amount
37specified in subdivision (a) of Section 46012 of the Revenue and
38Taxation Code shall not obligate the administrator to resume
39collection of the oil spill response fee otherwise required by this
40article if both of the following conditions are met:

P76   1(1) The annual Budget Act requires a transfer or loan from the
2fund to be repaid to the fund with interest calculated at a rate earned
3by the Pooled Money Investment Account as if the money had
4remained in the fund.

5(2) The annual Budget Act requires all transfers or loans to be
6repaid to the fund on or before June 30,begin delete 2014.end deletebegin insert 2017.end insert

7(b) A transfer or loan described in subdivision (a) shall be repaid
8as soon as possible if a spill occurs and the administrator
9determines that response funds are needed immediately.

10(c) If there is a conflict between this section and any other law
11or enactment, this section shall control.

begin delete

12(d) This section shall remain in effect until July 1, 2014, and as
13of that date is repealed.

end delete
begin insert

14(d) This section shall become inoperative on July 1, 2017, and,
15as of January 1, 2018, is repealed, unless a later enacted statute,
16that becomes operative on or before January 1, 2018, deletes or
17extends the dates on which it becomes inoperative and is repealed.

end insert
18begin insert

begin insertSEC. 43.end insert  

end insert

begin insertSection 8670.49 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
19to read:end insert

20

8670.49.  

(a) (1) The administrator may only expend money
21from the fund to pay for any of the following, subject to the lien
22established in Section 8670.53.2:

23(A) To pay the cost of obtaining financial security as authorized
24by paragraph (5) of subdivision (k) and subdivision (o) of Section
258670.48.

26(B) To pay the principal, interest, premium, if any, and fees,
27charges, and costs of any kind incurred in connection with moneys
28drawn by the administrator on the financial security obtained by
29the Treasurer, or the moneys borrowed by the Treasurer, as
30authorized by paragraph (7) of subdivision (k) of Section 8670.48.

begin delete

31(C) To pay for the construction, equipping, operation, and
32maintenance of rescue and rehabilitation facilities, and technology
33development for oiled wildlife care from interest earned on money
34deposited in the fund as authorized by subdivision (l) of Section
358670.48.

36(D) To pay for the costs of rescue, medical treatment,
37rehabilitation, and disposition of oiled wildlife, as incurred by the
38network of oiled wildlife rescue and rehabilitation stations pursuant
39to subdivision (f) of Section 8670.37.5.

40(E)

end delete

P77   1begin insert(C)end insert To pay for the expansion, in the VTS area, pursuant to
2Section 445 of the Harbors and Navigation Code, of the vessel
3traffic service system (VTS system) authorized pursuant to
4subdivision (f) of Section 8670.21.

5(2) If a spill has occurred, the administrator may expend the
6money in the fund for the purposes identified in paragraphs (1),
7(2), (3), (4), and (6) of subdivision (k) of Section 8670.48 only
8upon making the following determinations:

9(A) Except as authorized by Section 8670.51.1, a responsible
10party does not exist or the responsible party is unable or unwilling
11to provide adequate and timely cleanup and to pay for the damages
12resulting from the spill. The administrator shall make a reasonable
13effort to have the party responsible remove the oil or agree to pay
14for any actions resulting from the spill that may be required by
15law, provided that the efforts are not detrimental to fish, plant,
16animal, or bird life in the affected waters. The reasonable effort
17of the administrator shall include attempting to access the
18responsible parties’ insurance or other proof of financial
19 responsibility.

20(B) Sufficient federal oil spill funds are not available or will
21not be available in an adequate period of time.

22(3) Notwithstanding any other provision of this subdivision, the
23administrator may expend money from the fund for authorized
24expenditures when a reimbursement procedure is in place to receive
25reimbursements for those expenditures from federal oil spill funds.

26(b) Upon making the determinations specified in paragraph (2)
27of subdivision (a), the administrator shall immediately make
28whatever payments are necessary for responding to, containing,
29or cleaningbegin delete up,end deletebegin insert upend insert the spill, including any wildlife rehabilitation
30required by law and payment of claims pursuant to Sections
318670.51 and 8670.51.1, subject to the lien established by Section
328670.53.2.

33begin insert

begin insertSEC. 44.end insert  

end insert

begin insertSection 8670.50 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
34to read:end insert

35

8670.50.  

(a) Money from the fund may only be expended to
36cover the costs incurred by the state and local governments and
37agencies for any of the following:

38(1) Responding promptly to, containing, and cleaning up the
39discharge, if those efforts are any of the following:

P78   1(A) Undertaken pursuant to the state and local oil spill
2contingency plans established under this chapter, and thebegin delete marine
3response element of theend delete
California oil spill contingency plan
4established under Article 3.5 (commencing with Section 8574.1)
5of Chapter 7.

6(B) Undertaken consistent with the standardized emergency
7management system established pursuant to Section 8607.

8(C) Undertaken at the direction of the administrator.

9(2) Meeting the requirements of Sectionbegin delete 8670.61.5,end deletebegin insert 8670.61.5end insert
10 relating to wildlife rehabilitation.

11(3) Making the payments authorized by subdivision (k) of
12Section 8670.48.

13(b) In the event of an oil spill, the administrator shall make
14whatever expenditures are necessary and appropriate from the fund
15to cover the costs described in subdivision (a), subject to the lien
16established pursuant to Section 8670.53.2.

17begin insert

begin insertSEC. 45.end insert  

end insert

begin insertSection 8670.51 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
18to read:end insert

19

8670.51.  

(a) When a person has obtained a final judgment for
20damages resulting from an oil spill inbegin delete marineend delete watersbegin insert of the stateend insert,
21but is unable, within one year after the date of its entry, to enforce
22the judgment pursuant to Title 9 (commencing with Section
23680.010) of the Code of Civil Procedure, or is unable to obtain
24satisfaction of the judgment from the federal government within
2590 additional days, the administrator shall pay an amount not to
26exceed those amountsbegin delete whichend deletebegin insert thatend insert cannot be recovered from a
27responsible party and the fund shall be subrogated to all rights,
28claims, and causes of action that the claimant has under this
29chapter, Article 3. 5 (commencing with Section 8574.1) of Chapter
307, Section 8670.61.5, and Division 7.8 (commencing with Section
318750) of the Public Resources Code.

32(b) Any person may apply to the fund for compensation for
33damages and losses suffered as a result of an oil spill inbegin delete marineend delete
34 watersbegin insert of the stateend insert under any of the following conditions:

35(1) The responsible party or parties cannot be ascertained.

36(2) A responsible party is not liable for noneconomic damages
37caused by another.

38(3) Subdivision (i) of Section 8670.56.6 is applicable to the
39claim.

P79   1(c) The administrator shall not approve any claim in an amount
2begin delete whichend deletebegin insert thatend insert exceeds the amount to which the person would
3otherwise be entitled pursuant to Section 8670.56.5, and shall pay
4claims from the fundbegin delete whichend deletebegin insert thatend insert are approved pursuant to this
5section.

6begin insert

begin insertSEC. 46.end insert  

end insert

begin insertSection 8670.53 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
7to read:end insert

8

8670.53.  

The Attorney General, in consultation with the
9administrator, shall undertake actions to recover all costs to the
10funds from any responsible party for an oil spill intobegin delete marineend delete waters
11begin insert of the stateend insert for which expenditures are made from the fund. The
12recovery of costs pursuant to this section shall not foreclose the
13Attorney General from any other actions allowed by law.

14begin insert

begin insertSEC. 47.end insert  

end insert

begin insertSection 8670.54 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
15to read:end insert

16

8670.54.  

(a) The Oil Spill Technical Advisory Committee,
17hereafter in thisbegin delete articleend deletebegin insert article,end insert the committee, is hereby established
18to provide public input and independent judgment of the actions
19of the administrator. The committee shall consist ofbegin delete 10end deletebegin insert 14end insert
20 members, of whombegin delete sixend deletebegin insert eightend insert shall be appointed by the Governor,
21begin delete twoend deletebegin insert threeend insert by the Speaker of the Assembly, andbegin delete twoend deletebegin insert threeend insert by the
22Senate Rules Committee. The appointments shall be made in the
23following manner:

24(1) The Speaker of thebegin delete Assembly,end deletebegin insert Assemblyend insert and Senatebegin delete Rulesend delete
25 Committeebegin insert on Rulesend insert shall each appointbegin delete membersend deletebegin insert a memberend insert who
26shall bebegin delete representativesend deletebegin insert a representativeend insert of the public.

27(2) The Governor shall appoint a member who has a
28demonstrable knowledge of marine transportation.

29(3) The Speaker of the Assembly and the Senatebegin delete Rulesend delete
30 Committeebegin insert on Rulesend insert shall each appointbegin delete a memberend deletebegin insert two membersend insert
31 whobegin delete hasend deletebegin insert haveend insert demonstrable knowledge of environmental protection
32and the study of ecosystems.

33(4) The Governor shall appoint a member who has served as a
34local government elected official or who has worked for a local
35government.

36(5) The Governor shall appoint a member who has experience
37in oil spill response and prevention programs.

38(6) The Governor shall appoint a member who has been
39employed in the petroleum industry.

P80   1(7) The Governor shall appoint a member who has worked in
2state government.

3(8) The Governor shall appoint a member who has demonstrable
4knowledge of the dry cargo vessel industry.

begin insert

5(9) The Governor shall appoint a member who has demonstrable
6knowledge of the railroad industry.

end insert
begin insert

7(10) The Governor shall appoint a member who has
8demonstrable knowledge of the oil production industry.

end insert

9(b) The committee shall meet as often as required, but at least
10twice per year. Members shall be paid one hundred dollars ($100)
11per day for each meeting and all necessary travel expenses at state
12per diem rates.

13(c) The administrator and any personnel the administrator
14determines to be appropriate shall serve as staff to the committee.

15(d) Abegin delete chairmanend deletebegin insert chairend insert and vicebegin delete chairmanend deletebegin insert chairend insert shall be elected
16by a majority vote of the committee.

begin delete

17(e) This section shall become operative on January 1, 2012.

end delete
18begin insert

begin insertSEC. 48.end insert  

end insert

begin insertSection 8670.55 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
19to read:end insert

20

8670.55.  

(a) The committee shall provide recommendations
21to the administrator, the State Lands Commission, the California
22Coastal Commission,begin delete andend delete the San Francisco Bay Conservation
23and Development Commissionbegin insert, the Division of Oil, Gas, and
24Geothermal Resources, the Office of the State Fire Marshal, and
25the Public Utilities Commission,end insert
on any provision of thisbegin delete chapterend delete
26begin insert chapter,end insert including the promulgation of all rules, regulations,
27guidelines, and policies.

28(b) The committee maybegin delete, at its own discretion,end delete study, comment
29on, or evaluate,begin insert at its own discretion,end insert any aspect of oil spill
30prevention and response in the state. To the greatest extent possible,
31these studies shall be coordinated with studies being done by the
32federal government, the administrator, the State Lands
33Commission, the State Water Resources Control Board, and other
34appropriate state and international entities. Duplication with the
35efforts of other entities shall be minimized.

36(c) The committee may attend any drills called pursuant to
37Sectionbegin delete 8601.10end deletebegin insert 8670.10end insert or any oil spills, if practicable.

38(d) The committee shall report biennially to the Governor and
39the Legislature on its evaluation of oil spill response and
40preparedness programs within the state and may prepare and send
P81   1any additional reports it determines to be appropriate to the
2Governor and the Legislature.

begin delete

3(e) On or before August 1, 2005, the committee shall review
4the Department of Finance report required under Section 8670.42
5and prepare and submit to the Governor and the Legislature
6comments on the report, including, but not limited to,
7recommendations for improving the state’s oil spill prevention,
8response, and preparedness program.

end delete
begin delete

9(f) This section shall become operative on January 1, 2012.

end delete
10begin insert

begin insertSEC. 49.end insert  

end insert

begin insertSection 8670.56.5 of the end insertbegin insertGovernment Codeend insertbegin insert is
11amended to read:end insert

12

8670.56.5.  

(a)  A responsible party, as defined in Section
138670.3, shall be absolutely liable without regard to fault for any
14damages incurred by any injured party that arise out of, or are
15caused by abegin delete spill or inlandend delete spill.

16(b) A responsible person is not liable to an injured party under
17this section for any of the following:

18(1) Damages, other than costs of removal incurred by the state
19or a local government, caused solely by any act of war, hostilities,
20civil war, or insurrection or by an unanticipated grave natural
21disaster or other act of God of an exceptional, inevitable, and
22 irresistible character,begin delete whichend deletebegin insert thatend insert could not have been prevented
23or avoided by the exercise of due care or foresight.

24(2) Damages caused solely by the negligence or intentional
25malfeasance of that injured party.

26(3) Damages caused solely by the criminal act of a third party
27other than the defendant or an agent or employee of the defendant.

28(4) Natural seepage not caused by a responsible party.

29(5) Discharge or leaking of oil or natural gas from a private
30pleasure boat or vessel.

31(6) Damages that arise out of, or are caused by, a discharge that
32is authorized by a state or federal permit.

33(c) The defenses provided in subdivision (b) shall not be
34available to a responsible person who fails to comply with Sections
358670.25, 8670.25.5, 8670.27, and 8670.62.

36(d) Upon motion and sufficient showing by a party deemed to
37be responsible under this section, the court shall join to the action
38any other party who may be responsible under this section.

39(e) In determining whether a party is a responsible party under
40this section, the court shall consider the results of chemical or other
P82   1scientific tests conducted to determine whether oil or other
2substances produced, discharged, or controlled by the defendant
3matches the oil or other substance that caused the damage to the
4injured party. The defendant shall have the burden of producing
5the results of tests of samples of the substance that caused the
6injury and of substances for which the defendant is responsible,
7unless it is not possible to conduct the tests because of
8unavailability of samples to test or because the substance is not
9one for which reliable tests have been developed. At the request
10of a party, any other party shall provide samples of oil or other
11substances within its possession or control for testing.

12(f) The court may award reasonable costs of the suit, attorneys’
13fees, and the costs of necessary expert witnesses to a prevailing
14plaintiff. The court may award reasonable costs of the suit and
15attorneys’ fees to a prevailing defendant if the court finds that the
16plaintiff commenced or prosecuted the suitbegin delete underend deletebegin insert pursuant toend insert this
17section in bad faith or solely for purposes of harassing the
18defendant.

19(g) This section does not prohibit a person from bringing an
20action for damages caused by oil or by exploration, under any
21other provision or principle of law, including, but not limited to,
22common law. However, damages shall not be awarded pursuant
23to this section to an injured party for loss or injury for which the
24party is or has been awarded damages under any other provision
25or principle of law. Subdivision (b) does not create a defense not
26otherwise available regarding an action brought under any other
27provision or principle of law, including, but not limited to, common
28law.

29(h) Damages for which responsible parties are liable under this
30section include the following:

31(1) All costs of response, containment, cleanup, removal, and
32treatment, including, but not limited to, monitoring and
33administration costs incurred pursuant to the California oil spill
34contingency plan or actions taken pursuant to directions by the
35administrator.

36(2) Injury to, or economic losses resulting from destruction of
37or injury to, real or personal property, which shall be recoverable
38by any claimant who has an ownership or leasehold interest in
39property.

P83   1(3) Injury to, destruction of or loss of, natural resources,
2including, but not limited to, the reasonable costs of rehabilitating
3wildlife, habitat, and other resources and the reasonable costs of
4assessing that injury, destruction, or loss, in an action brought by
5the state, a county, city, or district. Damages for the loss of natural
6resources may be determined by any reasonable method, including,
7but not limited to, determination according to the costs of restoring
8 the lost resource.

9(4) Loss of subsistence use of natural resources, which shall be
10recoverable by a claimant who so uses natural resources that have
11been injured, destroyed, or lost.

12(5) Loss of taxes, royalties, rents, or net profit shares caused by
13the injury, destruction, loss, or impairment of use of real property,
14personal property, or natural resources.

15(6) Loss of profits or impairment of earning capacity due to the
16injury, destruction, or loss of real property, personal property, or
17natural resources, which shall be recoverable by any claimant who
18derives at least 25 percent of his or her earnings from the activities
19that utilize the property or natural resources, or, if those activities
20are seasonal in nature, 25 percent of his or her earnings during the
21applicable season.

22(7) Loss of use and enjoyment of natural resources, public
23beaches, and other public resources or facilities, in an action
24brought by the state, a county, city, or district.

25(i) Except as provided in Section 1431.2 of the Civil Code,
26liability under this section shall be joint and several. However, this
27section does not bar a cause of action that a responsible party has
28or would have, by reason of subrogation or otherwise, against a
29person.

30(j) This section does not apply to claims for damages for
31personal injury or wrongful death, and does not limit the right of
32a person to bring an action for personal injury or wrongful death
33begin delete underend deletebegin insert pursuant toend insert any provision or principle of law.

34(k)  Payments made by a responsible party to cover liabilities
35arising from a discharge of oil, whether under this division or any
36other provision of federal, state, or local law, shall not be charged
37against royalties, rents, or net profits owed to the United States,
38the state, or any other public entity.

39(l)  An action that a private or public individual or entity may
40have against a responsible party under this section may be brought
P84   1directly by the individual or entity or by the state on behalf of the
2individual or entity. However, the state shall not pursue an action
3on behalf of a private individual or entity that requests the state
4not to pursue that action.

5(m) Forbegin delete theend delete purposes of this section, “vessels” means vessels
6as defined in Section 21 of the Harbors and Navigation Code.

7begin insert

begin insertSEC. 50.end insert  

end insert

begin insertSection 8670.56.6 of the end insertbegin insertGovernment Codeend insertbegin insert is
8amended to read:end insert

9

8670.56.6.  

(a) (1) Except as provided in subdivisions (b) and
10(d), and subject to subdivision (c),begin delete noend deletebegin insert aend insert person, including, but not
11limited to, an oil spill cooperative, its agents, subcontractors, or
12employees, shallbegin insert notend insert be liable under this chapter or the laws of the
13state to any person for costs, damages, or other claims or expenses
14as a result of actions taken or omitted in good faith in the course
15of rendering care, assistance, or advice in accordance with the
16National Contingency Plan, the California oil spill contingency
17plan, or at the direction of the administrator, onsite coordinator,
18or the Coast Guard in response to a spill or threatenedbegin delete spill of oil.end delete
19begin insert spill.end insert

20(2) The qualified immunity under this section shall not apply
21to any oil spill response action that is inconsistent with the
22following:

23(A) The directions of the unified command, consisting of at
24least the Coast Guard and the administrator.

25(B) In the absence of a unified command, the directions of the
26administrator pursuant to Section 8670.27.

27(C) In the absence of directions pursuant to subparagraph (A)
28or (B), applicable oil spill contingency plans implemented under
29this division.

30(3) Nothing in this section shall, in any manner or respect, affect
31or impair any cause of action against or any liability of any person
32or persons responsible for the spill, for the discharged oil, or for
33the vessel, terminal, pipeline, or facility from which the oil was
34discharged. The responsible person or persons shall remain liable
35for any and all damages arising from the discharge, including
36damages arising from improperly carried out response efforts, as
37otherwise provided by law.

38(b) Nothing in this section shall, in any manner or respect, affect
39or impair any cause of action against or any liability of any party
40or parties responsible for the spill, or the responsible party’s agents,
P85   1employees, or subcontractors, except persons immunized under
2 subdivision (a) for response efforts, for the discharged oil, or for
3the vessel, terminal, pipeline, orbegin delete marineend delete facility from which the
4oil was discharged.

5(c) The responsible party or parties shall be subject to both of
6the following:

7(1) Notwithstanding subdivision (b) or (i) of Section 8670.56.5,
8or any otherbegin delete provision ofend delete law, be strictly and jointly and severally
9liable for all damages arising pursuant to subdivision (h) of Section
108670.56.5 from the response efforts of its agents, employees,
11subcontractors, or an oil spill cooperative of which it is a member
12or with which it has a contract or other arrangement for cleanup
13of its oil spills, unless it would have a defense to the original spill.

14(2) Remain strictly liable for any and all damages arising from
15the response efforts of a person other than a person specified in
16 paragraph (1).

17(d) Nothing in this section shall immunize a cooperative or any
18other person from liability for acts of gross negligence or willful
19misconduct in connection with the cleanup of a spill.

20(e) This section does not apply to any action for personal injury
21or wrongful death.

22(f) As used in this section, a “cooperative” means an
23organization of private personsbegin delete whichend deletebegin insert thatend insert is established for the
24primary purpose and activity of preventing or rendering care,
25assistance, or advice in response to a spill or threatened spill.

26(g) Except for the responsible party, membership in a
27cooperative shallbegin delete not, in and of itself,end deletebegin insert notend insert be groundsbegin insert, in and of
28itself,end insert
for liability resulting from cleanup activities of the
29cooperative.

30(h) For purposes of this section, there shall be a rebuttable
31presumption that an act or omission described in subdivision (a)
32was taken in good faith.

33(i) In any situation in which immunity is granted pursuant to
34subdivision (a) and a responsible party is not liable, is not liable
35for noneconomic damages caused by another, or is partially or
36totally insolvent, the fund provided for in Article 7 (commencing
37with Section 8670.46)begin delete shall, in accordance with its terms,end deletebegin insert shallend insert
38 reimbursebegin insert, in accordance with its terms,end insert claims of any injured
39party for which a person who is granted immunity pursuant to this
40section would otherwise be liable.

P86   1(j) (1) The immunity granted by this section shall only apply
2to response efforts that are undertaken after the administrator
3certifies that contracts with qualified and responsible persons are
4in place to ensure an adequate and expeditious response to any
5foreseeable oil spill that may occur inbegin delete marineend delete watersbegin insert of the stateend insert
6 for which the responsible party (A) cannot be identified or (B) is
7unable or unwilling to respond, contain, and clean up the oil spill
8in an adequate and timely manner. In negotiating these contracts,
9the administratorbegin delete shall, to the maximum extent practicable,end deletebegin insert shallend insert
10 procurebegin insert, to the maximum extent practicable,end insert the services of persons
11who are willing to respond to oil spills with no, or lesser, immunity
12than that conferred by this section, but, in no event, a greater
13immunity. The administrator shall make the certification required
14by this subdivision on an annual basis. Upon certification, the
15immunity conferred by this section shall apply to all response
16efforts undertaken during the calendar year to which the
17certification applies. In the absence of the certification required
18by this subdivision, the immunity conferred by this section shall
19not attach to any response efforts undertaken by any person in
20begin delete marineend delete watersbegin insert of the stateend insert.

21(2) In addition to the authority to negotiate contracts described
22in paragraph (1), the administrator may also negotiate and enter
23into indemnification agreements with qualified and financially
24responsible persons to respond to oil spills that may occur inbegin delete marineend delete
25 watersbegin insert of the stateend insert for which the responsible party (A) cannot be
26identified or (B) is unable or unwilling to respond, contain, and
27clean up the oil spill in an adequate and timely manner.

28(3) The administrator may indemnify response contractors for
29(A) all damages payable by means of settlement or judgment that
30arise from response efforts to which the immunity conferred by
31this section would otherwise apply, and (B) reasonably related
32legal costs and expenses incurred by the responder, provided that
33indemnification shall only apply to response efforts undertaken
34after the expiration of any immunity that may exist as the result
35of the contract negotiations authorized in this subdivision. In
36negotiating these contracts, the administratorbegin delete shall, to the maximum
37extent practicable,end delete
begin insert shallend insert procurebegin insert, to the maximum extent
38practicable,end insert
the services of persons who are willing to respond to
39oil spills with no, or as little, right to indemnification as possible.
P87   1All indemnification shall be paid by the administrator from the
2Oil Spill Response Trust Fund.

3(4) (A) The contracts required by this section, and any other
4contracts entered into by the administrator for response,
5containment, or cleanup of an existing spill,begin insert or for response of an
6imminent threat of a spill,end insert
the payment of which is to be made
7from the Oil Spill Response Trust Fund created pursuant to Section
88670.46,begin delete or for response to an imminent threat of a spill, the
9payment of which is to be made out of the Oil Spill Prevention
10and Administration Fund created pursuant to Section 8670.38,end delete

11 shall be exempt from Part 2 (commencing with Section 10100) of
12Division 2 of the Public Contract Code and Article 6 (commencing
13with Section 999) of Chapter 6 of Division 4 of the Military and
14Veterans Code.

15(B) The exemption specified in subparagraph (A) applies only
16to contracts for which the services are used for a period of less
17than 90 days, cumulatively, per year.

18(C) This paragraph shall not be construed as limiting the
19administrator’s authority to exercise the emergency powers granted
20pursuant to subdivision (c) of Section 8670.62, including the
21authority to enter into emergency contracts that are exempt from
22approval by the Department of General Services.

23(k) (1) With regard to a person who is regularly engaged in the
24business of responding to oil spills, the immunity conferred by
25this section shall not apply to any response efforts by that person
26that occur later than 60 days after the first day the person’s response
27efforts commence.

28(2) Notwithstanding the limitation contained in paragraph (1),
29the administratorbegin delete may, upon making all the following findings,end delete
30begin insert mayend insert extendbegin insert, upon making all the following findings,end insert the period of
31time, not to exceed 30 days, during which the immunity conferred
32by this section applies to response efforts:

33(A) Due to inadequate or incomplete containment and
34stabilization, there exists a substantial probability that the size of
35the spill will significantly expand and (i) threaten previously
36uncontaminatedbegin delete marine or landend delete resources, (ii) threaten already
37contaminatedbegin delete marine or landend delete resources with substantial additional
38contamination, or (iii) otherwise endanger the public health and
39safety or harm the environment.

P88   1(B) The remaining work is of a difficult or perilous nature that
2extension of the immunity is clearly in the public interest.

3(C) No other qualified and financially responsible contractor is
4prepared and willing to complete the response effort in the absence
5of the immunity, or a lesser immunity, as negotiated by contract.

6(3) The administrator shall provide five days’ notice of his or
7her proposed decision to either extend, or not extend, the immunity
8conferred by this section. Interested parties shall be given an
9 opportunity to present oral and written evidence at an informal
10hearing. In making his or her proposed decision, the administrator
11shall specifically seek and consider the advice of the relevant Coast
12Guard representative. The administrator’s decision to not extend
13the immunity shall be announced at least 10 working days before
14the expiration of the immunity to provide persons an opportunity
15to terminate their response efforts as contemplated by paragraph
16(4).

17(4) begin deleteNo end deletebegin insertA end insertperson or their agents, subcontractors, or employees
18shallbegin insert notend insert incur any liability under this chapter or any other
19provision of law solely as a result of that person’s decision to
20 terminate their response efforts because of the expiration of the
21immunity conferred by this section. A person’s decision to
22terminate response efforts because of the expiration of the
23immunity conferred by this section shall not in any manner impair,
24curtail, limit, or otherwise affect the immunity conferred on the
25person with regard to the person’s response efforts undertaken
26during the period of time the immunity applied to those response
27efforts.

28(5) The immunity granted under this section shall attach, without
29the limitation contained in this subdivision, to the response efforts
30of any person who is not regularly engaged in the business of
31responding to oil spills. A person who is not regularly engaged in
32the business of responding to oil spills includes, but is not limited
33to, (A) a person who is primarily dedicated to the preservation and
34rehabilitation of wildlife and (B) a person who derives his or her
35livelihood primarily from fishing.

36(l) As used in this section, “response efforts” means rendering
37care, assistance, or advice in accordance with the National
38Contingency Plan, the California oil spill contingency plan, or at
39the direction of the administrator,begin delete onsite coordinator,end deletebegin insert United States
P89   1Environmental Protection Agency,end insert
or the Coast Guard in response
2to a spill or threatened spill intobegin delete marineend delete watersbegin insert of the stateend insert.

3begin insert

begin insertSEC. 51.end insert  

end insert

begin insertSection 8670.61.5 of the end insertbegin insertGovernment Codeend insertbegin insert is
4amended to read:end insert

5

8670.61.5.  

(a) For purposes of this chapter, “wildlife
6rehabilitation” means those actions that are necessary to fully
7mitigate for the damagebegin insert from a spillend insert caused to wildlife, fisheries,
8wildlife habitat, and fisheriesbegin delete habitat, including beaches, from a
9spill or inland spill.end delete
begin insert habitat.end insert

10(b) Responsible parties shall fully mitigate adverse impacts to
11wildlife, fisheries, wildlife habitat, and fisheries habitat. Full
12mitigation shall be provided by successfully carrying out
13 environmental projects or funding restoration activities required
14by the administrator in carrying out projects complying with the
15requirements of this section. Responsible parties are also liable
16for the costs incurred by the administrator or other government
17agencies in carrying out this section.

18(c) If any significant wildlife rehabilitation is necessary, the
19administrator may require the responsible party to prepare and
20submit to the administrator, and to implement, a wildlife
21rehabilitation plan. The plan shall describe the actions that will be
22implemented to fully meet the requirements of subdivision (b),
23describe contingency measures that will be carried out in the event
24that any of the plan actions are not fully successful, provide a
25reasonable implementation schedule, describe the monitoring and
26compliance program, and provide a financing plan. The
27administrator shall review and determine whether to approve the
28plan within 60 days of submittal. Before approving a plan, the
29administrator shall first find that the implementation of the plan
30will fully mitigate the adverse impacts to wildlife, fisheries, wildlife
31habitat, and fisheries habitat. If the habitat contains beaches that
32are or were used for recreational purposes, the Department of Parks
33and Recreation shall review the plan and provide comments to the
34administrator.

35(d) The plan shall place first priority on avoiding and minimizing
36any adverse impacts. For impacts that do occur, the plan shall
37provide for full onsite restoration of the damaged resource to the
38extent feasible. To the extent that full onsite restoration is not
39feasible, the plan shall provide for offsite in-kind mitigation to the
40extent feasible. To the extent that adverse impacts still have not
P90   1been fully mitigated, the plan shall provide for the enhancement
2of other similar resources to the extent necessary to meet the
3requirements of subdivision (b). In evaluating whether a wildlife
4rehabilitation plan is adequate, the administrator may use the
5habitat evaluationbegin insert methods orend insert procedures established by the United
6States Fish and Wildlife Service or any other reasonable methods
7as determined by thebegin delete Director ofend deletebegin insert Department ofend insert Fish andbegin delete Game.end delete
8begin insert Wildlife.end insert

9(e) The administrator shall prepare regulations to implement
10this section. The regulations shall include deadlines for the
11submittal of plans. In establishing the deadlines, the administrator
12shall consider circumstances such as the size of the spill and the
13time needed to assess damage and mitigation.

14begin insert

begin insertSEC. 52.end insert  

end insert

begin insertSection 8670.62 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
15to read:end insert

16

8670.62.  

(a) Any person who discharges oil intobegin delete marineend delete waters
17begin insert of the stateend insert, upon order of the administrator, shall do all of the
18following:

19(1) Clean up the oil.

20(2) Abate the effects of the discharge.

21(3) In the case of a threatened discharge, take other necessary
22remedial action.

23(b) Upon failure of any person to comply with a cleanup or
24abatement order, the Attorney General or a district attorney, at the
25request of the administrator, shall petition the superior court for
26that county for the issuance of an injunction requiring the person
27to comply with the order. In any such suit, the court shall have
28jurisdiction to grant a prohibitory or mandatory injunction, either
29preliminary or permanent, as the facts may warrant.

30(c) Consistent with the state contingency plan, the administrator
31may expend available money to perform any response;
32containment; cleanup; wildlife rehabilitation, which includes
33assessment of resource injuries and damages, or remedial work
34required pursuant to subdivision (a)begin delete whichend deletebegin insert thatend insert, in the
35administrator’s judgment, is required by the circumstances or the
36urgency of prompt action required to prevent pollution, nuisance,
37or injury to the environment of the state. The action may be taken
38in default of, or in addition to, remedial work by the responsible
39party or other persons, and regardless of whether injunctive relief
40is sought. The administrator may perform the work in cooperation
P91   1with any other governmental agency, and may use rented tools or
2equipment, either withbegin insert or withoutend insert operatorsbegin delete furnished or
3unoperated.end delete
begin insert furnished.end insert Notwithstanding any otherbegin delete provisions ofend delete
4 law, the administrator may enter into oral contracts for the work,
5and the contracts, whether written or oral, may include provisions
6for equipment rental and the furnishing of labor and materials
7necessary to accomplish the work. The contracts shall be exempt
8from Part 2 (commencing with Section 10100) of Division 2 of
9the Public Contract Code and Article 6 (commencing with Section
10999) of Chapter 6 of Division 4 of the Military and Veterans Code.

11(d) If the discharge is cleaned up, or attempted to be cleaned
12up, the effects thereof abated, or, in the case of threatened pollution
13or nuisance, other necessary remedial action is taken by any
14governmental agency, the person or persons who discharged the
15waste, discharged the oil, or threatened to cause or permit the
16discharge of the oil within the meaning of subdivisionbegin delete (a),end deletebegin insert (a)end insert shall
17be liable to that governmental agency for the reasonable costs
18actually incurred in cleaning up that waste, abating the effects
19thereof, or taking other remedial action. The amount of the costs
20shall be recoverable in a civil action by, and paid to, the applicable
21governmental agency and the administrator, to the extent the
22administrator contributed to the cleanup costs from the Oil Spill
23Response Trust Fund or other available funds.

24(e) If, despite reasonable effort by the administrator to identify
25the party responsible for the discharge of oil or the condition of
26pollution or nuisance, the person is not identified at the time
27cleanup, abatement, or remedial work must be performed, the
28administrator shall not be required to issue an order under this
29section. The absence of a responsible party shall not in any way
30limit the powers of the administrator under this section.

31(f) begin delete“Threaten,” for purposes of this section, end deletebegin insertFor purposes of this
32section, “threaten” end insert
means a condition creating a substantial
33probability of harm, when the probability and potential extent of
34harm makes it reasonably necessary to take immediate action to
35prevent, reduce, or mitigate damages to persons, property, or
36natural resources.

37begin insert

begin insertSEC. 53.end insert  

end insert

begin insertSection 8670.64 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
38to read:end insert

39

8670.64.  

(a) A person who commits any of the followingbegin delete acts,end delete
40begin insert actsend insert shall, upon conviction, be punished by imprisonment in a
P92   1county jail for not more than one year or by imprisonment pursuant
2to subdivision (h) of Section 1170 of the Penal Code:

3(1) Except as provided in Section 8670.27, knowingly fails to
4follow the direction or orders of the administrator in connection
5with an oil spill.

6(2) Knowingly fails to notify the Coast Guard that a vessel is
7disabled within one hour of the disability and the vessel, while
8 disabled, causes a discharge of oilbegin delete whichend deletebegin insert thatend insert enters marine waters.
9Forbegin delete theend delete purposes of this paragraph, “vessel” means a vessel, as
10defined in Section 21 of the Harbors and Navigation Code, of 300
11grossbegin delete registeredend delete tons or more.

12(3) Knowingly engages in or causes the discharge or spill of oil
13intobegin delete marineend delete watersbegin insert of the stateend insert, or a person who reasonably should
14have known that he or she was engaging in or causing the discharge
15or spill of oil intobegin delete marineend delete watersbegin insert of the stateend insert, unless the discharge
16is authorized by the United States, the state, or another agency
17with appropriate jurisdiction.

18(4) Knowingly fails to begin cleanup, abatement, or removal of
19spilled oil as required in Section 8670.25.

20(b) The court shall also impose upon a person convicted of
21violating subdivision (a), a fine of not less than five thousand
22dollars ($5,000) or more than five hundred thousand dollars
23($500,000) for each violation. For purposes of this subdivision,
24each day or partial day that a violation occurs is a separate
25violation.

26(c) (1) A person who knowingly does any of the acts specified
27in paragraph (2) shall, upon conviction, be punished by a fine of
28not less than two thousand five hundred dollars ($2,500) or more
29than two hundred fifty thousand dollars ($250,000), or by
30imprisonment in a county jail for not more than one year, or by
31both the fine and imprisonment. Each day or partial day that a
32violation occurs is a separate violation. If the conviction is for a
33second or subsequent violation of this subdivision, the person shall
34be punished by imprisonment pursuant to subdivision (h) of Section
351170 of the Penal Code, or in a county jail for not more than one
36year, or by a fine of not less than five thousand dollars ($5,000)
37or more than five hundred thousand dollars ($500,000), or by both
38that fine and imprisonment:

39(2) The acts subject to this subdivision are all of the following:

P93   1(A) Failing to notify the Office of Emergency Services in
2violation of Section 8670.25.5.

3(B) Knowingly making a false or misleadingbegin delete marineend delete oil spill
4report to the Office of Emergency Services.

5(C) Continuing operations for which an oil spill contingency
6plan is required without an oil spill contingency plan approved
7pursuant to Article 5 (commencing with Section 8670.28).

8(D) Except as provided in Section 8670.27, knowingly failing
9to follow the material provisions of an applicable oil spill
10contingency plan.

11begin insert

begin insertSEC. 54.end insert  

end insert

begin insertSection 8670.66 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
12to read:end insert

13

8670.66.  

(a) Any person who intentionally or negligently does
14any of the following acts shall be subject to a civil penalty for a
15spill of not less than fifty thousand dollars ($50,000) or more than
16one million dollars ($1,000,000),begin delete or for an inland spill not to exceed
17fifty thousand dollars ($50,000),end delete
for each violation, and each day
18or partial day that a violation occurs is a separate violation:

19(1) Except as provided in Section 8670.27, fails to follow the
20direction or orders of the administrator in connection with a spill
21or inland spill.

22(2) Fails to notify the Coast Guard that a vessel is disabled
23within one hour of the disability and the vessel, while disabled,
24causes a spill that entersbegin delete marineend delete watersbegin insert of the stateend insert. Forbegin delete theend delete
25 purposes of this paragraph, “vessel” means a vessel, as defined in
26Section 21 of the Harbors and Navigation Code, of 300 gross
27begin delete registeredend delete tons or more.

28(3) Is responsible for abegin delete spill or inlandend delete spill, unless the discharge
29is authorized by the United States, the state, or other agency with
30appropriate jurisdiction.

31(4) Fails to begin cleanup, abatement, or removal of oil as
32required in Section 8670.25.

33(b) Except as provided in subdivision (a), any person who
34intentionally or negligently violates any provision of this chapter,
35or Division 7.8 (commencing with Section 8750) of the Public
36Resources Code, or any permit, rule, regulation, standard, or
37requirement issued or adopted pursuant to those provisions, shall
38be liable for a civil penalty not to exceed two hundred fifty
39thousand dollars ($250,000) for each violation of a separate
P94   1provision, or, for continuing violations, for each day that violation
2continues.

3(c) begin deleteNo end deletebegin insertA end insertperson shallbegin insert notend insert be liable for a civil penalty imposed
4under this section and for a civil penalty imposed pursuant to
5Section 8670.67 for the same act or failure to act.

6begin insert

begin insertSEC. 55.end insert  

end insert

begin insertSection 8670.67 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
7to read:end insert

8

8670.67.  

(a) Any person who intentionally or negligently does
9any of the following acts shall be subject to an administrative civil
10penalty for a spill not to exceed two hundred thousand dollars
11($200,000),begin delete or for an inland spill not to exceed fifty thousand
12dollars ($50,000),end delete
for each violation as imposed by the
13administrator pursuant to Section 8670.68, and each day or partial
14day that a violation occurs is a separate violation:

15(1) Except as provided in Section 8670.27, fails to follow the
16applicable contingency plans or the direction or orders of the
17administrator in connection with a spill or inland spill.

18(2) Fails to notify the Coast Guard that a vessel is disabled
19within one hour of the disability and the vessel, while disabled,
20causes a discharge that entersbegin delete marineend delete watersbegin delete or inland waters.end deletebegin insert of
21the state.end insert
Forbegin delete theend delete purposes of this paragraph, “vessel” means a
22vessel, as defined in Section 21 of the Harbors and Navigation
23Code, of 300 grossbegin delete registeredend delete tons or more.

24(3) Is responsible for abegin delete spill or inlandend delete spill, unless the discharge
25is authorized by the United States, the state, or other agency with
26appropriate jurisdiction.

27(4) Fails to begin cleanup, abatement, or removal of spilled oil
28as required by Section 8670.25.

29(b) Except as provided in subdivision (a), any person who
30intentionally or negligently violates any provision of this chapter,
31or Division 7.8 (commencing with Section 8750) of the Public
32Resources Code, or any permit, rule, regulation, standard, cease
33and desist order, or requirement issued or adopted pursuant to
34those provisions, shall be liable for an administrative civil penalty
35as imposed by the administrator pursuant to Section 8670.68, not
36to exceed one hundred thousand dollars ($100,000) for each
37violation of a separate provision, or, for continuing violations, for
38each day that violation continues.

P95   1(c) begin deleteNo end deletebegin insertA end insertperson shallbegin insert notend insert be liable for a civil penalty imposed
2under this section and for a civil penalty imposed pursuant to
3Section 8670.66 for the same act or failure to act.

4begin insert

begin insertSEC. 56.end insert  

end insert

begin insertSection 8670.67.5 of the end insertbegin insertGovernment Codeend insertbegin insert is
5amended to read:end insert

6

8670.67.5.  

(a) Any person who without regard to intent or
7negligence causes or permits a spillbegin delete or inland spillend delete shall be strictly
8liable civilly in accordance with subdivision (b) or (c).

9(b) A penalty may be administratively imposed by the
10administrator in accordance with Section 8670.68begin delete in an amount
11not to exceed ten dollars ($10) per gallon of oil released for an
12inland spill, andend delete
in an amount not to exceed twenty dollars ($20)
13per gallon for a spill. The amount of the penalty shall be reduced
14for every gallon of released oil that is recovered and properly
15 disposed of in accordance with applicable law.

16(c) Whenever the release of oil resulted from gross negligence
17or reckless conduct, the administrator shall, in accordance with
18Section 8670.68, impose a penalty begin delete in the amount of thirty dollars
19($30) per gallon of oil released for an inland spill, andend delete
in an amount
20not to exceed sixty dollars ($60)begin insert per gallonend insert for a spill. The amount
21of the penalty shall be reduced for every gallon of released oil that
22is recovered and properly disposed of in accordance with applicable
23law.

24(d) The administrator shall adopt regulations governing the
25method for determining the amount of oil that is cleaned up.

26begin insert

begin insertSEC. 57.end insert  

end insert

begin insertSection 8670.69.4 of the end insertbegin insertGovernment Codeend insertbegin insert is
27amended to read:end insert

28

8670.69.4.  

(a) When the administrator determines that any
29person has undertaken, or is threatening to undertake, any activity
30or procedure that (1) requires a permit, certificate, approval, or
31authorization under this chapter, without securing a permit, or (2)
32is inconsistent with any of the permits, certificates, rules,
33regulations, guidelines, orbegin delete authorizations,end deletebegin insert authorizationsend insert previously
34issued or adopted by the administrator, or (3) threatens to cause
35or substantially increases the risk of unauthorized discharge of oil
36into thebegin delete marineend delete waters of the state, the administrator may issue an
37order requiring that person to cease and desist.

38(b) Any cease and desist order issued by the administrator may
39be subject tobegin delete suchend deletebegin insert thoseend insert terms and conditions as the administrator
P96   1may determine are necessary to ensure compliance with this
2division.

3(c) Any cease and desist order issued by the administrator shall
4become null and void 90 days after issuance.

5(d) A cease and desist order issued by the administrator shall
6be effective upon the issuance thereof, and copies shall be served
7immediately by certified mail upon the person or governmental
8agency being charged with the actual or threatened violation.

9(e) Any cease and desist order issued by the administrator shall
10be consistent with subdivision (a) of Section 8670.27.

11begin insert

begin insertSEC. 58.end insert  

end insert

begin insertSection 8670.69.7 of the end insertbegin insertGovernment Codeend insertbegin insert is
12repealed.end insert

begin delete
13

8670.69.7.  

All penalties collected under this article for inland
14spills shall be deposited into the Fish and Wildlife Pollution
15Account in the Fish and Game Preservation Fund and be available
16for expenditure in accordance with Section 12017 of the Fish and
17Game Code.

end delete
18begin insert

begin insertSEC. 59.end insert  

end insert

begin insertSection 8670.71 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
19to read:end insert

20

8670.71.  

(a) The administrator shall fund only those projects
21approved by the Environmental Enhancement Committee.

22(b) Forbegin delete theend delete purposes of this article, an enhancement project is
23a project that acquires habitat for preservation, or improves habitat
24quality and ecosystem function above baseline conditions, and that
25meets all of the following requirements:

26(1) Is located within or immediately adjacent tobegin delete California
27marineend delete
watersbegin insert of the stateend insert, as defined in begin delete subdivision (i) ofend delete Section
288670.3.

29(2) Has measurable outcomes within a predetermined timeframe.

30(3) Is designed to acquire, restore, or improve habitat or restore
31ecosystem function, or both, to benefit fish and wildlife.

32begin insert

begin insertSEC. 60.end insert  

end insert

begin insertSection 8670.95 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
33to read:end insert

begin insert
34

begin insert8670.95.end insert  

If any provision of this chapter or the application
35thereof to any person or circumstances is held invalid, that
36invalidity shall not affect other provisions or applications of the
37chapter that can be given effect without the invalid provision or
38application, and to this end the provisions of this chapter are
39severable.

end insert
P97   1begin insert

begin insertSEC. 61.end insert  

end insert

begin insertSection 449 of the end insertbegin insertHarbors and Navigation Codeend insertbegin insert is
2amended to read:end insert

3

449.  

(a) The marine exchange and its officers and directors
4are subject to Section 5047.5 of the Corporations Code to the extent
5that the marine exchange meets the criteria specified in that section.

6(b) Nothing in this section shall be deemed to include the marine
7exchange or its officers, directors, employees, or representatives
8within the meaning of “responsible party” as defined inbegin delete subdivision
9(q) ofend delete
Section 8670.3 of the Government Code and subdivision
10(p) of Section 8750 of the Public Resources Code for the purposes
11of the Lempert-Keene-Seastrand Oil Spill Prevention and Response
12Act (Article 3.5 (commencing with Section 8574.1) of Chapter 7
13and Chapter 7.4 (commencing with Section 8670.1) of Division 1
14of Title 2 of the Government Code and Division 7.8 (commencing
15with Section 8750) of the Public Resources Code).

16begin insert

begin insertSEC. 62.end insert  

end insert
begin insert

It is the intent of the Legislature that the
17reorganization and transfer made by Sections 63 to 127, inclusive,
18Section 181, and Sections 187 to 190, inclusive, of this act be
19carried out in a manner to preserve state primacy under the federal
20Safe Drinking Water Act and that the terms of this act shall be
21liberally construed to achieve this purpose.

end insert
22begin insert

begin insertSEC. 63.end insert  

end insert

begin insertSection 116271 is added to the end insertbegin insertHealth and Safety
23Code
end insert
begin insert, to read:end insert

begin insert
24

begin insert116271.end insert  

(a) The State Water Resources Control Board
25succeeds to and is vested with all of the authority, duties, powers,
26purposes, functions, responsibilities, and jurisdiction of the State
27Department of Public Health, its predecessors, and its director
28for purposes of all of the following:

29(1) The Environmental Laboratory Accreditation Act (Article
303 (commencing with Section 100825) of Chapter 4 of Part 1 of
31Division 101).

32(2) Article 3 (commencing with Section 106875) of Chapter 4
33of Part 1.

34(3) Article 1 (commencing with Section 115825) of Chapter 5
35of Part 10.

36(4) This chapter and the Safe Drinking Water State Revolving
37Fund Law of 1997 (Chapter 4.5 (commencing with Section
38116760)).

P98   1(5) Article 2 (commencing with Section 116800), Article 3
2(commencing with Section 116825), and Article 4 (commencing
3with Section 116875) of Chapter 5.

4(6) Chapter 7 (commencing with Section 116975).

5(7) The Safe Drinking Water, Water Quality and Supply, Flood
6Control, River and Coastal Protection Bond Act of 2006 (Division
743 (commencing with Section 75001) of the Public Resources
8Code).

9(8) The Water Recycling Law (Chapter 7 (commencing with
10Section 13500) of Division 7 of the Water Code).

11(9) Chapter 7.3 (commencing with Section 13560) of Division
127 of the Water Code.

13(10) The California Safe Drinking Water Bond Law of 1976
14(Chapter 10.5 (commencing with Section 13850) of Division 7 of
15the Water Code).

16(11) Wholesale Regional Water System Security and Reliability
17Act (Division 20.5 (commencing with Section 73500) of the Water
18Code).

19(12) Water Security, Clean Drinking Water, Coastal and Beach
20Protection Act of 2002 (Division 26.5 (commencing with Section
2179500) of the Water Code).

22(b) The State Water Resources Control Board shall maintain a
23drinking water program and carry out the duties, responsibilities,
24and functions described in this section. Statutory reference to
25“department,” “state department,” or “director” regarding a
26function transferred to the State Water Resources Control Board
27shall refer to the State Water Resources Control Board. This
28section does not impair the authority of a local health officer to
29enforce this chapter or a county’s election not to enforce this
30chapter, as provided in Section 116500.

31(c) The State Water Resources Control Board shall succeed to
32the status of grantee or applicant, as appropriate, for any federal
33Drinking Water State Revolving Fund capitalization grants that
34the State Department of Public Health and any of its predecessors
35applied for.

36(d) Regulations adopted, orders issued, and all other
37administrative actions taken by the State Department of Public
38Health, any of its predecessors, or its director, pursuant to the
39authorities now vested in the State Water Resources Control Board
40and in effect immediately preceding the operative date of this
P99   1section shall remain in effect and are fully enforceable unless and
2until readopted, amended, or repealed, or until they expire by their
3own terms. Regulations in the process of adoption pursuant to the
4authorities vested in the State Water Resources Control Board
5shall continue under the authority of the State Water Resources
6Control Board unless and until the State Water Resources Control
7Board determines otherwise. Any other administrative action
8adopted, prescribed, taken, or performed by, or on behalf of, the
9State Department of Public Health, or its director, in the
10administration of a program or the performance of a duty,
11responsibility, or authorization transferred to the State Water
12Resources Control Board shall remain in effect and shall be
13deemed to be an action of the State Water Resources Control Board
14unless and until the State Water Resources Control Board
15determines otherwise.

16(e) Permits, licenses, accreditations, certificates, and other
17formal approvals and authorizations issued by the State
18Department of Public Health, any of its predecessors, or its
19director pursuant to authorities vested in the State Water Resources
20Control Board pursuant to this section are not affected by the
21transfer and remain in effect, subject to all applicable laws and
22regulations, unless and until renewed, reissued, revised, amended,
23suspended, or revoked by the State Water Resources Control Board
24or its deputy director, as authorized pursuant to subdivision (k).

25(f) Any action or proceeding by or against the State Department
26of Public Health, including any officer or employee of the State
27Department of Public Health named in an official capacity, or any
28of its predecessors, pertaining to matters vested in the State Water
29Resources Control Board by this section shall not abate, but shall
30continue in the name of the State Water Resources Control Board.
31The State Water Resources Control Board shall be substituted for
32the State Department of Public Health, including any officer or
33employee of the State Department of Public Health named in an
34official capacity, and any of its predecessors, by the court or
35agency where the action or proceeding is pending. The substitution
36shall not in any way affect the rights of the parties to the action
37or proceeding.

38(g) On and after the operative date of this section, the
39unexpended balance of all funds available for use by the State
40Department of Public Health or any of its predecessors in carrying
P100  1out any functions transferred to the State Water Resources Control
2Board are available for use by the State Water Resources Control
3Board.

4(h) Books, documents, data, records, and property of the State
5Department of Public Health pertaining to functions transferred
6to the State Water Resources Control Board shall be transferred
7to the State Water Resources Control Board. This subdivision does
8not transfer any part of property commonly known as the Richmond
9Campus that is owned by the State Public Works Board.

10(i) A contract, lease, license, or any other agreement, including
11local primacy agreements, as described in Section 116330, to
12which the State Department of Public Health, any of its
13predecessors, its director, or their agents, is a party, are not void
14or voidable by reason of this section, but shall continue in full
15force and effect, with the State Water Resources Control Board
16assuming all of the rights, obligations, liabilities, and duties of the
17State Department of Public Health and any of its predecessors as
18it relates to the duties, powers, purposes, responsibilities, and
19jurisdiction vested in the State Water Resources Control Board
20pursuant to this section. This assumption does not affect the rights
21of the parties to the contract, lease, license, or agreement.

22(j) If the Department of Water Resources entered into
23agreements on behalf of the State Department of Public Health or
24its predecessor, the State Department of Health Services, pursuant
25to Chapter 4.5 (commencing with Section 116760), the State Water
26Resources Control Board shall also succeed the Department of
27Water Resources as a party to those agreements and to all related
28security instruments, including, but not limited to, fiscal services
29agreements, deeds of trust, guarantees, letters of credit, and deposit
30control agreements.

31(k) (1) The State Water Resources Control Board shall appoint
32a deputy director who reports to the executive director to oversee
33the issuance and enforcement of public water system permits and
34other duties as appropriate. The deputy director shall have public
35health expertise.

36(2) The deputy director is delegated the State Water Resources
37 Control Board’s authority to provide notice, approve notice
38content, approve emergency notification plans, and take other
39action pursuant to Article 5 (commencing with Section 116450),
40to issue, renew, reissue, revise, amend, or deny any public water
P101  1system permits pursuant to Article 7 (commencing with Section
2116525), to suspend or revoke any public water system permit
3pursuant to Article 8 (commencing with Section 116625), and to
4issue citations, assess penalties, or issue orders pursuant to Article
59 (commencing with Section 116650). Decisions and actions of
6the deputy director taken pursuant to Article 5 (commencing with
7Section 116450) or Article 7 (commencing with Section 116525)
8are deemed decisions and actions taken, but are not subject to
9reconsideration, by the State Water Resources Control Board.
10Decisions and actions of the deputy director taken pursuant to
11Article 8 (commencing with Section 116625) and Article 9
12(commencing with Section 116650) are deemed decisions and
13actions taken by the State Water Resources Control Board, but
14any aggrieved person may petition the State Water Resources
15Control Board for reconsideration of the decision or action. This
16subdivision is not a limitation on the State Water Resources Control
17Board’s authority to delegate any other powers and duties.

18(3) The State Water Resources Control Board shall not delegate
19any authority, duty, power, purpose, function, or responsibility
20specified in this section, including, but not limited to, issuance and
21enforcement of public water system permits, to the regional water
22quality control boards.

23(l) This section shall become operative on July 1, 2014.

end insert
24begin insert

begin insertSEC. 64.end insert  

end insert

begin insertSection 116760.10 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
25amended to read:end insert

26

116760.10.  

The Legislature hereby finds and declares all of
27the following:

28(a) The department has discovered toxic contaminants and new
29pathogenic organisms, including cryptosporidium, in many of
30California’s public drinking water systems.

31(b) Many of the contaminants in California’s drinking water
32supplies are known to cause, or are suspected of causing, cancer,
33birth defects, and other serious illnesses.

34(c) It is unlikely that the contamination problems of small public
35water systems can be solved without financial assistance from the
36state.

37(d) The protection of the health, safety, and welfare of the people
38of California requires that the water supplied for domestic purposes
39be at all times pure, wholesome, and potable. It is in the interest
40of the people that thebegin delete stateend deletebegin insert Stateend insert of California provide technical
P102  1and financial assistance to ensure a safe, dependable, and potable
2supply of water for domestic purposes and that water is available
3in adequate quantity at sufficient pressure for health, cleanliness,
4and other domestic purposes.

5(e) It is the intent of the Legislature to provide for the upgrading
6of existing public water supply systems to ensure that all domestic
7water supplies meet safe drinking water standards and other
8requirements established under Chapter 4 (commencing with
9Section 116270).

10(f) (1) The extent of the current risk to public health from
11contamination in drinking water creates a compelling need to
12upgrade existing public water systems. The demand for financial
13assistance to enable public water systems to meet drinking water
14standards and regulations exceeds funds available from the Safe
15Drinking Water State Revolving Fund.

16(2) A project whose primary purpose is to supply or attract
17growth shall not be eligible to receive assistance from the Safe
18Drinking Water State Revolving Fund.

19(3) A project whose primary purpose is to enable a public water
20system to improve public health protection by complying with
21drinking water standards and regulations and that also includes
22components to accommodate a reasonable amount of growth over
23its useful life shall be eligible for assistance from the Safe Drinking
24Water State Revolving Fund, but the project shall receive priority
25based on the component to meet drinking water standards pursuant
26to Section 116760.70. The department shall expressly consider the
27effort of the applicant to secure funds other than those available
28from the Safe Drinking Water State Revolving Fund in establishing
29the priority listing for funding pursuant to Article 4 (commencing
30with Section 116760.50).

31(4) After projects have been prioritized for funding into priority
32list categories pursuant to the requirements of Section 116760.70,
33within each category, projects that do not include a component of
34growth, shall receive priority for funding over projects that have
35a component to accommodate a reasonable amount of growth.

36(g) The Legislature further finds and declares that regional
37solutions to water contamination problems are often more effective,
38efficient, and economical than solutions designed to address solely
39the problems of a single small public water system, and it is in the
40interest of the people of the State of California to encourage the
P103  1consolidation of the management and the facilities of small water
2systems to enable those systems to better address their water
3contamination problems.

4(h) The protection of drinking water sources is essential to
5ensuring that the people of California are provided with pure,
6wholesome, and potable drinking water.

7(i) That coordination among local, state, and federal public
8health and environmental management programs be undertaken
9to ensure that sources of drinking water are protected while
10avoiding duplication of effort and reducing program costs.

11(j) It is necessary that a source water protection program be
12implemented for the purposes of delineating, assessing, and
13protecting drinking water sources throughout the state and that
14federal funds be utilized pursuant to the federal Safe Drinking
15Water Act (42 U.S.C. Sec. 300j et seq.) to carry out that program.

16(k) It is in the interest of the people of the state to provide funds
17for a perpetual Safe Drinking Water State Revolving Fund that
18may be combined with similar federal funding to the extent the
19funding is authorized pursuant to the federal Safe Drinking Water
20Act (42 U.S.C. Sec. 300j et seq.).

21(l) This chapter shall govern implementation of the Safe
22Drinking Water State Revolving Fund, and shall be implemented
23in a manner that is consistent with the federal Safe Drinking Water
24Act, and, to the extent authorized under the federal act, in a manner
25that is consistent with the California Safe Drinking Water Act,
26Chapter 4 (commencing with Section 116275).

begin insert

27(m) This section shall become inoperative on July 1, 2014, and,
28as of January 1, 2015, is repealed, unless a later enacted statute,
29that becomes operative on or before January 1, 2015, deletes or
30extends the dates on which it becomes inoperative and is repealed.

end insert
31begin insert

begin insertSEC. 65.end insert  

end insert

begin insertSection 116760.10 is added to the end insertbegin insertHealth and Safety
32Code
end insert
begin insert, to read:end insert

begin insert
33

begin insert116760.10.end insert  

(a) Because the federal Safe Drinking Water Act
34(42 U.S.C. Sec. 300j et seq.) provides for establishment of a
35perpetual drinking water revolving fund, which will be partially
36capitalized by federal contributions, it is in the interest of the
37people of the state, in order to ensure full participation by the state
38under the federal Safe Drinking Water Act, to enact this chapter
39to authorize the state to establish and implement a state drinking
40water revolving fund that will meet federal conditions for receipt
P104  1of federal funds. The primary purpose of this chapter is to enable
2receipt of funds under the federal Safe Drinking Water Act. It is
3the intent of the Legislature that the terms of this chapter shall be
4liberally construed to achieve this purpose.

5(b) Toxic contaminants and new pathogenic organisms,
6including cryptosporidium, have been discovered in many of
7California’s public drinking water systems.

8(c) Many of the contaminants in California’s drinking water
9supplies are known to cause, or are suspected of causing, cancer,
10birth defects, and other serious illnesses.

11(d) It is unlikely that the contamination problems of small public
12water systems can be solved without financial assistance from the
13state.

14(e) The protection of the health, safety, and welfare of the people
15of California requires that the water supplied for domestic
16purposes be at all times pure, wholesome, and potable. It is in the
17interest of the people that the State of California provide technical
18and financial assistance to ensure a safe, dependable, and potable
19supply of water for domestic purposes and that water is available
20in adequate quantity at sufficient pressure for health, cleanliness,
21and other domestic purposes.

22(f) It is the intent of the Legislature to provide for the upgrading
23of existing public water supply systems to ensure that all domestic
24water supplies meet safe drinking water standards and other
25requirements established under Chapter 4 (commencing with
26Section 116270).

27(g) The extent of the current risk to public health from
28contamination in drinking water creates a compelling need to
29upgrade existing public water systems. The demand for financial
30assistance to enable public water systems to meet drinking water
31standards and regulations exceeds funds available from the Safe
32Drinking Water State Revolving Fund.

33(h) The Legislature further finds and declares that regional
34 solutions to water contamination problems are often more effective,
35efficient, and economical than solutions designed to address solely
36the problems of a single small public water system, and it is in the
37interest of the people of the State of California to encourage the
38consolidation of the management and the facilities of small water
39systems to enable those systems to better address their water
40contamination problems.

P105  1(i) The protection of drinking water sources is essential to
2ensuring that the people of California are provided with pure,
3wholesome, and potable drinking water.

4(j) That coordination among local, state, and federal public
5health and environmental management programs be undertaken
6to ensure that sources of drinking water are protected while
7avoiding duplication of effort and reducing program costs.

8(k) It is necessary that a source water protection program be
9implemented for the purposes of delineating, assessing, and
10protecting drinking water sources throughout the state and that
11federal funds be utilized pursuant to the federal Safe Drinking
12Water Act to carry out that program.

13(l) It is in the interest of the people of the state to provide funds
14for a perpetual Safe Drinking Water State Revolving Fund that
15may be combined with similar federal funding to the extent the
16funding is authorized pursuant to the federal Safe Drinking Water
17Act.

18(m) This chapter shall govern implementation of the Safe
19Drinking Water State Revolving Fund, and shall be implemented
20in a manner that is consistent with the federal Safe Drinking Water
21Act, and, to the extent authorized under the federal act, in a manner
22that is consistent with the California Safe Drinking Water Act,
23 Chapter 4 (commencing with Section 116270).

24(n) This section shall become operative on July 1, 2014.

end insert
25begin insert

begin insertSEC. 66.end insert  

end insert

begin insertSection 116760.20 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
26amended to read:end insert

27

116760.20.  

begin insert(a)end insertbegin insertend insertUnless the context otherwise requires, the
28following definitions govern the construction of this chapter:

begin delete

29(a)

end delete

30begin insert(1)end insert “Acceptable result” means the project that, when constructed,
31solves the problem for which the project was placed on the project
32priority list established pursuant to Section 116760.70, ensures the
33owner and operator of the improved or restructured public water
34 system shall have long-term technical, managerial, and financial
35capacity to operate and maintain the public water system in
36compliance with state and federal safe drinking water standards,
37can provide a dependable source of safe drinking water long-term,
38and is both short-term and long-term affordable, as determined by
39applicable regulations adopted by the department.

begin delete

40(b)

end delete

P106  1begin insert(2)end insert “Cost-effective project” means a project that achieves an
2acceptable result at the most reasonable cost.

begin delete

3(c)

end delete

4begin insert(3)end insert “Department” means the State Department of Public Health.

begin delete

5(d)

end delete

6begin insert(4)end insert “Disadvantaged community” means a community that meets
7the definition provided in Section 116275.

begin delete

8(e)

end delete

9begin insert(5)end insert “Federal Safe Drinking Water Act” or “federal act” means
10the federal Safe Drinking Water Act (42 U.S.C. Sec. 300f et seq.)
11and acts amendatory thereof or supplemental thereto.

begin delete

12(f)

end delete

13begin insert(6)end insert “Fund” means the Safe Drinking Water State Revolving
14Fund created by Section 116760.30.

begin delete

15(g)

end delete

16begin insert(7)end insert “Funding” means a loan or grant, or both, awarded under
17this chapter.

begin delete

18(h)

end delete

19begin insert(8)end insert “Matching funds” means state money that equals that
20percentage of federal contributions required by the federal act to
21be matched with state funds.

begin delete

22(i)

end delete

23begin insert(9)end insert “Project” means proposed facilities for the construction,
24improvement, or rehabilitation of a public water system, and may
25include all items set forth in Section 116761 as necessary to carry
26out the purposes of this chapter. It also may include refinancing
27loans, annexation or consolidation of water systems, source water
28assessments, source water protection, and other activities specified
29under the federal act.

begin delete

30(j)

end delete

31begin insert(10)end insert “Public agency” means any city, county, city and county,
32whether general law or chartered, district, joint powers authority,
33or other political subdivision of the state, that owns or operates a
34public water system.

begin delete

35(k)

end delete

36begin insert(11)end insert “Public water system” or “public water supply system”
37means a system for the provision to the public of water for human
38consumption, as defined in Chapter 4 (commencing with Section
39116270), as it may be amended from time to time.

begin delete

40(l)

end delete

P107  1begin insert(12)end insert “Reasonable amount of growth” means an increase in
2growth not to exceed 10 percent of the design capacity needed,
3based on peak flow, to serve the water and fire flow demand in
4existence at the time plans and specifications for the project are
5approved by the department, over the 20-year useful life of a
6project. For projects other than the construction of treatment plants
7including, but not limited to, storage facilities, pipes, pumps, and
8similar equipment, where the 10-percent allowable growth cannot
9be adhered to due to the sizes of equipment or materials available,
10the project shall be limited to the next available larger size.

begin delete

11(m)

end delete

12begin insert(13)end insert “Safe drinking water standards” means those standards
13established pursuant to Chapter 4 (commencing with Section
14116270), as they may now or hereafter be amended.

begin delete

15(n)

end delete

16begin insert(14)end insert “Severely disadvantaged community” means a community
17with a median household income of less than 60 percent of the
18statewide average.

begin delete

19(o)

end delete

20begin insert(15)end insert “Supplier” means any person, partnership, corporation,
21association, public agency, or other entity that owns or operates a
22public water system.

begin insert

23(b) This section shall become inoperative on July 1, 2014, and,
24as of January 1, 2015, is repealed, unless a later enacted statute,
25that becomes operative on or before January 1, 2015, deletes or
26extends the dates on which it becomes inoperative and is repealed.

end insert
27begin insert

begin insertSEC. 67.end insert  

end insert

begin insertSection 116760.20 is added to the end insertbegin insertHealth and Safety
28Code
end insert
begin insert, to read:end insert

begin insert
29

begin insert116760.20.end insert  

(a) Unless the context otherwise requires, the
30following definitions govern the construction of this chapter:

31(1) “Acceptable result” means the project that, when
32constructed, solves the problem for which the project was placed
33on the project priority list established pursuant to Section
34116760.70, ensures the owner and operator of the improved or
35restructured public water system shall have long-term technical,
36managerial, and financial capacity to operate and maintain the
37public water system in compliance with state and federal safe
38drinking water standards, can provide a dependable source of safe
39drinking water long-term, and is both short-term and long-term
P108  1affordable, as determined by applicable regulations adopted by
2the board.

3(2) “Board” means the State Water Resources Control Board.

4(3) “Cost-effective project” means a project that achieves an
5acceptable result at the most reasonable cost.

6(4) “Disadvantaged community” means a community that meets
7the definition provided in Section 116275.

8(5) “Federal Safe Drinking Water Act” or “federal act” means
9the federal Safe Drinking Water Act (42 U.S.C. Sec. 300f et seq.)
10and acts amendatory thereof or supplemental thereto.

11(6) “Fund” means the Safe Drinking Water State Revolving
12Fund created by Section 116760.30.

13(7) “Funding” means a loan or grant, or both, awarded under
14this chapter.

15(8) “Matching funds” means state money that equals that
16percentage of federal contributions required by the federal act to
17be matched with state funds.

18(9) “Project” means proposed facilities for the construction,
19improvement, or rehabilitation of a public water system, and may
20include all items set forth in Section 116761 as necessary to carry
21out the purposes of this chapter. It also may include refinancing
22loans, annexation or consolidation of water systems, source water
23assessments, source water protection, and other activities specified
24under the federal act.

25(10) “Public agency” means any city, county, city and county,
26whether general law or chartered, district, joint powers authority,
27or other political subdivision of the state, that owns or operates a
28public water system.

29(11) “Public water system” or “public water supply system”
30means a system for the provision to the public of water for human
31consumption, as defined in Chapter 4 (commencing with Section
32116270), as it may be amended from time to time.

33(12) “Reasonable amount of growth” means an increase in
34growth not to exceed 10 percent of the design capacity needed,
35based on peak flow, to serve the water and fire flow demand in
36existence at the time plans and specifications for the project are
37approved by the board, over the 20-year useful life of a project.
38For projects other than the construction of treatment plants
39including, but not limited to, storage facilities, pipes, pumps, and
40similar equipment, where the 10-percent allowable growth cannot
P109  1be adhered to due to the sizes of equipment or materials available,
2the project shall be limited to the next available larger size.

3(13) “Safe drinking water standards” means those standards
4established pursuant to Chapter 4 (commencing with Section
5116270), as they may now or hereafter be amended.

6(14) “Severely disadvantaged community” means a community
7with a median household income of less than 60 percent of the
8statewide average.

9(15) “Small community water system” has the meaning set forth
10in Section 116275.

11(16) “Supplier” means any person, partnership, corporation,
12association, public agency, or other entity that owns or operates
13a public water system.

14(b) This section shall become operative on July 1, 2014, and is
15repealed as of January 1 of the next calendar year occurring after
16the board provides notice to the Legislature and the Secretary of
17State and posts notice on its Internet Web site that the board has
18adopted a policy handbook pursuant to Section 116760.43.

end insert
19begin insert

begin insertSEC. 68.end insert  

end insert

begin insertSection 116760.20 is added to the end insertbegin insertHealth and Safety
20Code
end insert
begin insert, to read:end insert

begin insert
21

begin insert116760.20.end insert  

(a) Unless the context otherwise requires, the
22following definitions govern the construction of this chapter:

23(1) “Acceptable result” means the project that, when
24constructed, solves the problem for which the project was placed
25on the project priority list, ensures the owner and operator of the
26improved or restructured public water system shall have long-term
27technical, managerial, and financial capacity to operate and
28maintain the public water system in compliance with state and
29federal safe drinking water standards, can provide a dependable
30source of safe drinking water long-term, and is both short-term
31and long-term affordable, as determined by the board.

32(2) “Board” means the State Water Resources Control Board.

33(3) “Cost-effective” means achieves an acceptable result at the
34most reasonable cost.

35(4) “Disadvantaged community” means a community that meets
36the definition provided in Section 116275.

37(5) “Federal Safe Drinking Water Act” or “federal act” means
38the federal Safe Drinking Water Act (42 U.S.C. Sec. 300f et seq.)
39and acts amendatory thereof or supplemental thereto.

P110  1(6) “Fund” means the Safe Drinking Water State Revolving
2Fund created by Section 116760.30.

3(7) “Financing” means financial assistance awarded under this
4chapter, including loans, refinancing, installment sales agreements,
5purchase of debt, loan guarantees for municipal revolving funds,
6and grants.

7(8) “Matching funds” means state money that equals that
8percentage of federal contributions required by the federal act to
9be matched with state funds.

10(9) “Project” means cost-effective facilities for the construction,
11improvement, or rehabilitation of a public water system. It also
12may include the planning and design of the facilities, annexation
13or consolidation of water systems, source water assessments,
14source water protection, and other activities specified under the
15federal act.

16(10) “Public agency” means any city, county, city and county,
17whether general law or chartered, district, joint powers authority,
18or other political subdivision of the state, that owns or operates a
19public water system.

20(11) “Public water system” or “public water supply system”
21means a system for the provision to the public of water for human
22consumption, as defined in Chapter 4 (commencing with Section
23116270).

24(12) “Safe drinking water standards” means those standards
25established pursuant to Chapter 4 (commencing with Section
26116270), as they may now or hereafter be amended.

27(13) “Severely disadvantaged community” means a community
28with a median household income of less than 60 percent of the
29statewide average.

30(14) “Small community water system” has the meaning set forth
31in Section 116275.

32(15) “Supplier” means any person, partnership, corporation,
33association, public agency, or other entity that owns or operates
34a public water system.

35(b) This section shall become operative on January 1 of the next
36calendar year occurring after the board provides notice to the
37Legislature and the Secretary of State and posts notice on its
38Internet Web site that the board has adopted a policy handbook
39pursuant to Section 116760.43.

end insert
P111  1begin insert

begin insertSEC. 69.end insert  

end insert

begin insertSection 116760.30 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
2amended to read:end insert

3

116760.30.  

(a) There is hereby created in the State Treasury
4the Safe Drinking Water State Revolving Fund for the purpose of
5implementing this chapter, and, notwithstanding Section 13340 of
6the Government Code, the fund is hereby continuously
7appropriated, without regard to fiscal years, to the department to
8provide, from moneys available for this purpose, grants or
9revolving fund loans for the design and construction of projects
10for public water systems that will enable suppliers to meet safe
11drinking water standards. The department shall be responsible for
12administering the fund.

13(b) Notwithstanding Section 10231.5 of the Government Code,
14the department shall report at least once every two years to the
15policy and budget committees of the Legislature on the
16 implementation of this chapter and expenditures from the fund.
17The report shall describe the numbers and types of projects funded,
18the reduction in risks to public health from contaminants in
19drinking water provided through the funding of the projects, and
20the criteria used by the department to determine funding priorities.
21Commencing with reports submitted on or after January 1, 2013,
22the report shall include the results of the United States
23Environmental Protection Agency’s most recent survey of the
24infrastructure needs of California’s public water systems, the
25amount of money available through the fund to finance those needs,
26the total dollar amount of all funding agreements executed pursuant
27to this chapter since the date of the previous report, the fund
28utilization rate, the amount of unliquidated obligations, and the
29total dollar amount paid to funding recipients since the previous
30report.

31(c) Notwithstanding any other law, the Controller may use the
32moneys in the Safe Drinking Water State Revolving Fund for loans
33to the General Fund as provided in Sections 16310 and 16381 of
34the Government Code. However, interest shall be paid on all
35moneys loaned to the General Fund from the Safe Drinking Water
36State Revolving Fund. Interest payable shall be computed at a rate
37determined by the Pooled Money Investment Board to be the
38current earning rate of the fund from which loaned. This
39subdivision does not authorize any transfer that will interfere with
P112  1the carrying out of the object for which the Safe Drinking Water
2State Revolving Fund was created.

begin insert

3(d) This section shall become inoperative on July 1, 2014, and,
4as of January 1, 2015, is repealed, unless a later enacted statute,
5that becomes operative on or before January 1, 2015, deletes or
6extends the dates on which it becomes inoperative and is repealed.

end insert
7begin insert

begin insertSEC. 70.end insert  

end insert

begin insertSection 116760.30 is added to the end insertbegin insertHealth and Safety
8Code
end insert
begin insert, to read:end insert

begin insert
9

begin insert116760.30.end insert  

(a) There is hereby created in the State Treasury
10the Safe Drinking Water State Revolving Fund for the purpose of
11implementing this chapter, and, notwithstanding Section 13340 of
12the Government Code, moneys in the fund are hereby continuously
13appropriated, without regard to fiscal years, to the board for
14expenditure in accordance with this chapter.

15(b) Notwithstanding Section 10231.5 of the Government Code,
16the board shall, at least once every two years, post information
17on its Internet Web site and send a link of the Internet Web site to
18the policy and budget committees of the Legislature regarding the
19implementation of this chapter and expenditures from the fund.
20The information posted on the board’s Internet Web site shall
21describe the numbers and types of projects funded, the reduction
22in risks to public health from contaminants in drinking water
23provided through the funding of the projects, and the criteria used
24by the board to determine funding priorities. The Internet Web site
25posting shall include the results of the United States Environmental
26Protection Agency’s most recent survey of the infrastructure needs
27of California’s public water systems, the amount of money
28available through the fund to finance those needs, the total dollar
29amount of all funding agreements executed pursuant to this chapter
30since the date of the previous report or Internet Web site post, the
31fund utilization rate, the amount of unliquidated obligations, and
32the total dollar amount paid to funding recipients since the previous
33report or Internet Web site post.

34(c) This section shall become operative on July 1, 2014.

end insert
35begin insert

begin insertSEC. 71.end insert  

end insert

begin insertSection 116760.39 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
36amended to read:end insert

37

116760.39.  

begin insert(a)end insertbegin insertend insertIn addition to the actions described in Section
38116760.40, the department may, to implement the Safe Drinking
39Water State Revolving Fund, improve access to financial assistance
40for small community water systems and not-for-profit nontransient
P113  1noncommunity water systems serving severely disadvantaged
2communities by doing both of the following:

begin delete

3(a)

end delete

4begin insert(1)end insert Working to establish a payment process pursuant to which
5the recipient of financial assistance would receive funds within 30
6days of the date on which the department receives a complete
7project payment request, unless the department, within that 30-day
8period, determines that the project payment would not be in
9accordance with the terms of the program guidelines.

begin delete

10(b)

end delete

11begin insert(2)end insert Investigating the use of wire transfers or other appropriate
12payment procedures to expedite project payments.

begin insert

13(b) This section shall become inoperative on July 1, 2014, and,
14as of January 1, 2015, is repealed, unless a later enacted statute,
15that becomes operative on or before January 1, 2015, deletes or
16extends the dates on which it becomes inoperative and is repealed.

end insert
17begin insert

begin insertSEC. 72.end insert  

end insert

begin insertSection 116760.39 is added to the end insertbegin insertHealth and Safety
18Code
end insert
begin insert, to read:end insert

begin insert
19

begin insert116760.39.end insert  

(a) In addition to the actions described in Section
20116760.40, the board may, to implement the Safe Drinking Water
21State Revolving Fund, improve access to financial assistance for
22small community water systems and not-for-profit nontransient
23noncommunity water systems serving severely disadvantaged
24communities by doing both of the following:

25(1) Working to establish a payment process pursuant to which
26the recipient of financial assistance would receive funds within 30
27days of the date on which the board receives a complete project
28payment request, unless the board, within that 30-day period,
29determines that the project payment would not be in accordance
30with the terms of the program guidelines.

31(2) Investigating the use of wire transfers or other appropriate
32payment procedures to expedite project payments.

33(b) This section shall become operative on July 1, 2014.

end insert
34begin insert

begin insertSEC. 73.end insert  

end insert

begin insertSection 116760.40 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
35amended to read:end insert

36

116760.40.  

begin insert(a)end insertbegin insertend insertThe department may undertake any of the
37following actions to implement the Safe Drinking Water State
38Revolving Fund:

begin delete

39(a)

end delete

P114  1begin insert(1)end insert Enter into agreements with the federal government for
2federal contributions to the fund.

begin delete

3(b)

end delete

4begin insert(2)end insert Accept federal contributions to the fund.

begin delete

5(c)

end delete

6begin insert(3)end insert Use moneys in the fund for the purposes permitted by the
7federal act.

begin delete

8(d)

end delete

9begin insert(4)end insert Provide for the deposit of matching funds and other available
10and necessary moneys into the fund.

begin delete

11(e)

end delete

12begin insert(5)end insert Make requests, on behalf of the state, for deposit into the
13fund of available federal moneys under the federal act.

begin delete

14(f)

end delete

15begin insert(6)end insert Determine, on behalf of the state, that public water systems
16that receive financial assistance from the fund will meet the
17requirements of, and otherwise be treated as required by, the federal
18act.

begin delete

19(g)

end delete

20begin insert(7)end insert Provide for appropriate audit, accounting, and fiscal
21management services, plans, and reports relative to the fund.

begin delete

22(h)

end delete

23begin insert(8)end insert Take additional incidental action as may be appropriate for
24adequate administration and operation of the fund.

begin delete

25(i)

end delete

26begin insert(9)end insert Enter into an agreement with, and accept matching funds
27from, a public water system. A public water system that seeks to
28enter into an agreement with the department and provide matching
29funds pursuant to this subdivision shall provide to the department
30evidence of the availability of those funds in the form of a written
31resolution, or equivalent document, from the public water system
32before it requests a preliminary loan commitment.

begin delete

33(j)

end delete

34begin insert(10)end insert Charge public water systems that elect to provide matching
35 funds a fee to cover the actual cost of obtaining the federal funds
36pursuant to Section 1452(e) of the federal act (42 U.S.C. Sec.
37300j-12) and to process the loan application. The fee shall be
38waived by the department if sufficient funds to cover those costs
39are available from other sources.

begin delete

40(k)

end delete

P115  1begin insert(11)end insert Use money returned to the fund under Section 116761.85
2and any other source of matching funds, if not prohibited by statute,
3as matching funds for the federal administrative allowance under
4Section 1452(g) of the federal act (42 U.S.C. Sec. 300j-12).

begin delete

5(l)

end delete

6begin insert(12)end insert Establish separate accounts or subaccounts as required or
7allowed in the federal act and related guidance, for funds to be
8used for administration of the fund and other purposes. Within the
9fund the department shall establish the following accounts,
10including, but not limited to:

begin delete

11(1)

end delete

12begin insert(A)end insert A fund administration account for state expenses related to
13administration of the fund pursuant to Section 1452(g)(2) of the
14federal act.

begin delete

15(2)

end delete

16begin insert(B)end insert A water system reliability account for department expenses
17pursuant to Section 1452(g)(2)(A), (B), (C), or (D) of the federal
18act.

begin delete

19(3)

end delete

20begin insert(C)end insert A source protection account for state expenses pursuant to
21Section 1452(k) of the federal act.

begin delete

22(4)

end delete

23begin insert(D)end insert A small system technical assistance account for department
24expenses pursuant to Section 1452(g)(2) of the federal act.

begin delete

25(5)

end delete

26begin insert(E)end insert A state revolving loan account pursuant to Section
271452(a)(2) of the federal act.

begin delete

28(6)

end delete

29begin insert(F)end insert A wellhead protection account established pursuant to
30Section 1452(a)(2) of the federal act.

begin delete

31(m)

end delete

32begin insert(13)end insert Deposit federal funds for administration and other purposes
33into separate accounts or subaccounts as allowed by the federal
34act.

begin delete

35(n)

end delete

36begin insert(14)end insert Determine, on behalf of the state, whether sufficient
37progress is being made toward compliance with the enforceable
38deadlines, goals, and requirements of the federal act and the
39California Safe Drinking Water Act, Chapter 4 (commencing with
40Section 116270).

begin delete

P116  1(o)

end delete

2begin insert(15)end insert To the extent permitted under federal law, including, but
3not limited to, Section 1452(a)(2) and (f)(4) of the federal Safe
4Drinking Water Act (42 U.S.C. Sec. 300j-12(a)(2) and (f)(4)), use
5any and all amounts deposited in the fund, including, but not
6limited to, loan repayments and interest earned on the loans, as a
7source of reserve and security for the payment of principal and
8interest on revenue bonds, the proceeds of which are deposited in
9the fund.

begin delete

10(p)

end delete

11begin insert(16)end insert Request the Infrastructure and Economic Development
12Bank (I-Bank), established under Chapter 2 (commencing with
13Section 63021) of Division 1 of Title 6.7 of the Government Code,
14to issue revenue bonds, enter into agreements with the I-Bank, and
15take all other actions necessary or convenient for the issuance and
16sale of revenue bonds pursuant to Article 6.3 (commencing with
17Section 63048.55) of Chapter 2 of Division 1 of Title 6.7 of the
18Government Code. The purpose of the bonds is to augment the
19fund.

begin insert

20(b) This section shall become inoperative on July 1, 2014, and,
21as of January 1, 2015, is repealed, unless a later enacted statute,
22that becomes operative on or before January 1, 2015, deletes or
23extends the dates on which it becomes inoperative and is repealed.

end insert
24begin insert

begin insertSEC. 74.end insert  

end insert

begin insertSection 116760.40 is added to the end insertbegin insertHealth and Safety
25Code
end insert
begin insert, to read:end insert

begin insert
26

begin insert116760.40.end insert  

(a) The board may undertake any of the following
27actions to implement the Safe Drinking Water State Revolving
28Fund:

29(1) Enter into agreements with the federal government for
30federal contributions to the fund.

31(2) Accept federal contributions to the fund.

32(3) Use moneys in the fund for the purposes permitted by the
33federal act.

34(4) Provide for the deposit of matching funds and other available
35and necessary moneys into the fund.

36(5) Make requests, on behalf of the state, for deposit into the
37fund of available federal moneys under the federal act.

38(6) Determine, on behalf of the state, that public water systems
39that receive financial assistance from the fund will meet the
P117  1requirements of, and otherwise be treated as required by, the
2federal act.

3(7) Provide for appropriate audit, accounting, and fiscal
4management services, plans, and reports relative to the fund.

5(8) Take additional incidental action as may be appropriate for
6adequate administration and operation of the fund.

7(9) Enter into an agreement with, and accept matching funds
8from, a public water system.

9(10) Charge public water systems that elect to provide matching
10funds a fee to cover the actual cost of obtaining the federal funds
11pursuant to Section 1452(e) of the federal act (42 U.S.C. Sec.
12300j-12) and to process the loan application. The fee shall be
13waived by the board if sufficient funds to cover those costs are
14available from other sources.

15(11) Use any source of matching funds, if not prohibited by
16statute, as matching funds for the federal administrative allowance
17under Section 1452(g) of the federal act (42 U.S.C. Sec. 300j-12).

18(12) Establish separate accounts or subaccounts as required
19or allowed in the federal act and related guidance, for funds to be
20used for administration of the fund and other purposes. Within the
21fund, the board may modify existing accounts and may establish
22other accounts as the board deems appropriate or necessary for
23proper administration of the chapter.

24(13) Deposit federal funds for administration and other purposes
25into separate accounts or subaccounts, as allowed by the federal
26act.

27(14) Determine, on behalf of the state, whether sufficient
28progress is being made toward compliance with the enforceable
29deadlines, goals, and requirements of the federal act and the
30California Safe Drinking Water Act, Chapter 4 (commencing with
31Section 116270).

32(15) To the extent permitted under federal law, including, but
33not limited to, Section 1452(a)(2) and (f)(4) of the federal Safe
34Drinking Water Act (42 U.S.C. Sec. 300j-12(a)(2) and (f)(4)), use
35any and all amounts deposited in the fund, including, but not
36limited to, loan repayments and interest earned on the loans, as a
37source of reserve and security for the payment of principal and
38interest on revenue bonds, the proceeds of which are deposited in
39the fund.

P118  1(16) Request the Infrastructure and Economic Development
2Bank (I-Bank), established under Chapter 2 (commencing with
3Section 63021) of Division 1 of Title 6.7 of the Government Code,
4to issue revenue bonds, enter into agreements with the I-Bank, and
5take all other actions necessary or convenient for the issuance and
6sale of revenue bonds pursuant to Article 6.3 (commencing with
7Section 63048.55) of Chapter 2 of Division 1 of Title 6.7 of the
8Government Code. The purpose of the bonds is to augment the
9fund.

10(17) Engage in the transfer of capitalization grant funds, as
11authorized by Section 35.3530(c) of Title 40 of the Code of Federal
12Regulations and reauthorized by Public Law 109-54, to the extent
13set forth in an Intended Use Plan, that shall be subject to approval
14by the board.

15(18) Cross-collateralize revenue bonds with the State Water
16Pollution Control Revolving Fund created pursuant to Section
1713477 of the Water Code, as authorized by Section 35.3530(d) of
18Title 40 of the Code of Federal Regulations.

19(b) This section shall become operative on July 1, 2014.

end insert
20begin insert

begin insertSEC. 75.end insert  

end insert

begin insertSection 116760.42 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
21amended to read:end insert

22

116760.42.  

(a) The department may enter into an agreement
23with the federal government for federal contributions to the fund
24only if both of the following apply:

25(1) The state has obtained or appropriated any required state
26matching funds.

27(2) The department is prepared to commit to expenditure of any
28minimum amount in the fund in the manner required by the federal
29act.

30(b) begin deleteAny end deletebegin insertAn end insertagreement between the department and the federal
31government shall contain those provisions, terms, and conditions
32required by the federal act, and any implementing federal rules,
33regulations, guidelines, and policies, including, but not limited to,
34agreement to the following:

35(1) Moneys in the fund shall be expended in an expeditious and
36timely manner.

37(2) All moneys in the fund as a result of federal capitalization
38grants shall be expended to ensure sufficient progress is being
39made toward compliance with the enforceable deadlines, goals,
P119  1and requirements of the federal act, including any applicable
2compliance deadlines.

3(3) Federal funds deposited in the special accounts are
4continuously appropriated for use by the department as allowed
5by federal law.begin delete Any unexpendedend deletebegin insert Unexpendedend insert funds in the special
6accounts shall be carried over into subsequent years for use by the
7department.

begin insert

8(c) This section shall become inoperative on July 1, 2014, and,
9as of January 1, 2015, is repealed, unless a later enacted statute,
10that becomes operative on or before January 1, 2015, deletes or
11extends the dates on which it becomes inoperative and is repealed.

end insert
12begin insert

begin insertSEC. 76.end insert  

end insert

begin insertSection 116760.42 is added to the end insertbegin insertHealth and Safety
13Code
end insert
begin insert, to read:end insert

begin insert
14

begin insert116760.42.end insert  

(a) The board may enter into an agreement with
15the federal government for federal contributions to the fund only
16if the board is prepared to commit to expenditure of any minimum
17amount in the fund in the manner required by the federal act.

18(b) An agreement between the board and the federal government
19shall contain those provisions, terms, and conditions required by
20the federal act, and implementing federal rules, regulations,
21guidelines, and policies, including, but not limited to, agreement
22to the following:

23(1) Moneys in the fund shall be expended in an expeditious and
24timely manner.

25(2) All moneys in the fund as a result of federal capitalization
26grants shall be expended to ensure sufficient progress is being
27made toward compliance with the enforceable deadlines, goals,
28and requirements of the federal act, including any applicable
29compliance deadlines.

30(3) Federal funds deposited in the special accounts are
31continuously appropriated for use by the board as allowed by
32federal law. Unexpended funds in the special accounts shall be
33carried over into subsequent years for use by the board.

34(4) This section shall become operative on July 1, 2014.

end insert
35begin insert

begin insertSEC. 77.end insert  

end insert

begin insertSection 116760.43 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
36amended to read:end insert

37

116760.43.  

(a) The department may adopt emergency
38regulations pursuant to Chapter 3.5 (commencing with Section
3911340) of Part 1 of Division 3 of Title 2 of the Government Code
P120  1necessary or convenient to implement this chapter and to meet
2requirements pursuant to the federal act.

3(b) The adoption of any emergency regulations that are filed
4with the Office of Administrative Law within 18 months of the
5effective date of this act shall be deemed to be an emergency and
6necessary for the immediate preservation of the public peace, health
7and safety, or general welfare.

begin insert

8(c) This section shall become inoperative on July 1, 2014, and,
9as of January 1, 2015, is repealed, unless a later enacted statute,
10that becomes operative on or before January 1, 2015, deletes or
11extends the dates on which it becomes inoperative and is repealed.

end insert
12begin insert

begin insertSEC. 78.end insert  

end insert

begin insertSection 116760.43 is added to the end insertbegin insertHealth and Safety
13Code
end insert
begin insert, to read:end insert

begin insert
14

begin insert116760.43.end insert  

(a) The board shall implement this chapter
15pursuant to the adoption of a policy handbook that is not subject
16to the requirements of Chapter 3.5 (commencing with Section
1711340) of Part 1 of Division 3 of the Government Code. The policy
18handbook shall be posted on the board’s Internet Web site.

19(b) Any regulations that have been promulgated pursuant to
20this chapter are repealed effective upon adoption by the board of
21the policy handbook.

22(c) This section shall become operative on July 1, 2014.

end insert
23begin insert

begin insertSEC. 79.end insert  

end insert

begin insertSection 116760.44 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
24amended to read:end insert

25

116760.44.  

begin insert(a)end insertbegin insertend insertThe department may deposit administrative
26fees and charges paid by public water systems and other available
27and necessary money into the administrative account of the fund.

begin insert

28(b) This section shall become inoperative on July 1, 2014, and,
29as of January 1, 2015, is repealed, unless a later enacted statute,
30that becomes operative on or before January 1, 2015, deletes or
31extends the dates on which it becomes inoperative and is repealed.

end insert
32begin insert

begin insertSEC. 80.end insert  

end insert

begin insertSection 116760.44 is added to the end insertbegin insertHealth and Safety
33Code
end insert
begin insert, to read:end insert

begin insert
34

begin insert116760.44.end insert  

(a) The board may deposit administrative fees and
35charges paid by public water systems and other available and
36necessary money into an account of the fund.

37(b) This section shall become operative on July 1, 2014.

end insert
38begin insert

begin insertSEC. 81.end insert  

end insert

begin insertSection 116760.46 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
39amended to read:end insert

P121  1

116760.46.  

(a) The Safe Drinking Water Small Community
2Emergency Grant Fund is hereby created in the State Treasury.

3(b) The following moneys shall be deposited in the grant fund:

4(1) Moneys transferred to the grant fund pursuant to subdivision
5(c).

6(2) Notwithstanding Section 16475 of the Government Code,
7any interest earned upon the moneys deposited in the grant fund.

8(c) (1) For any loans made for projects meeting the eligibility
9criteria under Section 116760.50, the department may assess an
10annual charge to be deposited in the grant fund in lieu of interest
11that would otherwise be charged.

12(2) Any amounts collected under this subdivision shall be
13deposited in the grant fund. Not more than fifty million dollars
14($50,000,000) shall be deposited in the grant fund.

15(3) The charge authorized by this subdivision may be applied
16at any time during the term of the financing and, once applied,
17shall remain unchanged.

18(4) The charge authorized by this subdivision shall not increase
19the financing repayment amount, as set forth in the terms and
20conditions imposed pursuant to this chapter.

21(d) (1) Moneys in the grant fund may be expended on grants
22for projects that meet the requirements stated in Section 116475
23and that serve disadvantaged and severely disadvantaged
24communities.

25(2) For the purpose of approving grants, the department shall
26give priority to projects that serve severely disadvantaged
27communities.

28(3) Funds expended pursuant to this section shall be expended
29in a manner consistent with the federal EPA grant regulations
30established in Section 35.3530(b)(2) of Title 40 of the Code of
31Federal Regulations.

begin insert

32(e) This section shall become inoperative on July 1, 2014, and,
33as of January 1, 2015, is repealed, unless a later enacted statute,
34that becomes operative on or before January 1, 2015, deletes or
35extends the dates on which it becomes inoperative and is repealed.

end insert
36begin insert

begin insertSEC. 82.end insert  

end insert

begin insertSection 116760.46 is added to the end insertbegin insertHealth and Safety
37Code
end insert
begin insert, to read:end insert

begin insert
38

begin insert116760.46.end insert  

(a) The Safe Drinking Water Small Community
39Emergency Grant Fund is hereby created in the State Treasury.

40(b) The following moneys shall be deposited in the grant fund:

P122  1(1) Moneys transferred to the grant fund pursuant to subdivision
2(c).

3(2) Notwithstanding Section 16475 of the Government Code,
4any interest earned upon the moneys deposited in the grant fund.

5(c) (1) For any financing made pursuant to this chapter, the
6board may assess an annual charge to be deposited in the grant
7fund in lieu of interest that would otherwise be charged.

8(2) Any amounts collected under this subdivision shall be
9deposited in the grant fund.

10(3) The charge authorized by this subdivision may be applied
11at any time during the term of the financing and, once applied,
12shall remain unchanged, unless the board determines that the
13application of the charge is any of the following:

14(A) No longer consistent with federal requirements regarding
15the fund.

16(B) No longer necessary.

17(C) Negatively affecting the board’s ability to fund projects that
18support the board’s goals as specified in this chapter.

19(4) If the board ceases collecting the charge before the financing
20repayment is complete, the board shall replace the charge with
21an identical interest rate.

22(5) The charge authorized by this subdivision shall not increase
23the financing repayment amount, as set forth in the terms and
24conditions imposed pursuant to this chapter.

25(d) (1) Moneys in the grant fund may be expended on grants
26for projects that meet the requirements of this chapter and that
27serve disadvantaged and severely disadvantaged communities or
28address emergencies experienced by small community water
29systems.

30(2) For the purpose of approving grants, the board shall give
31priority to projects that serve severely disadvantaged communities.

32(3) Funds expended pursuant to this section shall be expended
33in a manner consistent with the federal EPA capitalization grant
34requirements established in Section 35.3530(b)(2) of Title 40 of
35the Code of Federal Regulations.

36(e) This section shall become operative on July 1, 2014.

end insert
37begin insert

begin insertSEC. 83.end insert  

end insert

begin insertSection 116760.50 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
38amended to read:end insert

P123  1

116760.50.  

begin insert(a)end insertbegin insertend insertThe department shall establish criteria that
2shall be met for projects to be eligible for consideration for funding
3under this chapter. The criteria shall include all of the following:

begin delete

4(a)

end delete

5begin insert(1)end insert All preliminary design work for a defined project that will
6enable the applicant to supply water that meets safe drinking water
7standards, including a cost estimate for the project, shall be
8completed.

begin delete

9(b)

end delete

10begin insert(2)end insert A legal entity shall exist that has the authority to enter into
11contracts and incur debt on behalf of the community to be served
12and owns the public water system or has the right to operate the
13public water system under a lease with a term of at least 20 years,
14unless otherwise authorized by the department. If the proposed
15project is funded by a loan under this chapter, the department may
16require the applicant to secure a lease for the full term of the loan
17if the loan exceeds 20 years.

begin delete

18(c)

end delete

19begin insert(3)end insert The applicant shall hold all necessary water rights.

begin delete

20(d)

end delete

21begin insert(4)end insert The applicant shall have completed any review required
22pursuant to the California Environmental Quality Act (Division
2313 (commencing with Section 21000) of the Public Resources
24Code) and the guidelines adopted pursuant thereto, and have
25included plans for compliance with that act in its preliminary plans
26for the project.

begin delete

27(e)

end delete

28begin insert(5)end insert The applicant has assembled sufficient financial data to
29establish its ability to complete the proposed project and to
30establish the amount of debt financing it can undertake.

begin insert

31(b) This section shall become inoperative on July 1, 2014, and,
32as of January 1, 2015, is repealed, unless a later enacted statute,
33that becomes operative on or before January 1, 2015, deletes or
34extends the dates on which it becomes inoperative and is repealed.

end insert
35begin insert

begin insertSEC. 84.end insert  

end insert

begin insertSection 116760.50 is added to the end insertbegin insertHealth and Safety
36Code
end insert
begin insert, to read:end insert

begin insert
37

begin insert116760.50.end insert  

(a) The board shall establish eligibility criteria
38for funding pursuant to this chapter that includes all of the
39following:

P124  1(1) All preliminary design work for a defined project that will
2enable the applicant to supply water that meets safe drinking water
3standards, including a cost estimate for the project, shall be
4completed.

5(2) A legal entity shall exist that has the authority to enter into
6contracts and incur debt on behalf of the community to be served
7and owns the public water system or has the right to operate the
8public water system for at least the term of the financing
9agreement.

10(3) The applicant shall hold all necessary water rights.

11(4) The applicant shall have completed any review required
12pursuant to the California Environmental Quality Act (Division
1313 (commencing with Section 21000) of the Public Resources
14Code) and the guidelines adopted pursuant thereto, and have
15included plans for compliance with that act in its preliminary plans
16for the project.

17(5) The applicant shall have assembled sufficient financial data
18to establish its ability to complete the proposed project and to
19establish the amount of debt financing it can undertake.

20(b) This section shall become operative on July 1, 2014, and is
21repealed as of January 1 of the next calendar year occurring after
22the board provides notice to the Legislature and the Secretary of
23State and posts notice on its Internet Web site that the board has
24adopted a policy handbook pursuant to Section 116760.43.

end insert
25begin insert

begin insertSEC. 85.end insert  

end insert

begin insertSection 116760.50 is added to the end insertbegin insertHealth and Safety
26Code
end insert
begin insert, to read:end insert

begin insert
27

begin insert116760.50.end insert  

(a) The board shall establish eligibility criteria
28for project financing pursuant to this chapter that shall be
29consistent with federal requirements.

30(b) This section shall become operative on January 1 of the next
31calendar year occurring after the board provides notice to the
32Legislature and the Secretary of State and posts notice on its
33Internet Web site that the board has adopted a policy handbook
34pursuant to Section 116760.43.

end insert
35begin insert

begin insertSEC. 86.end insert  

end insert

begin insertSection 116760.55 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
36amended to read:end insert

37

116760.55.  

(a) For purposes of the department considering
38eligibility for grant funding for a planning project, a legal entity
39may apply on behalf of one or more public water systems serving
P125  1disadvantaged or severely disadvantaged communities if all of the
2following requirements are met:

3(1) The legal entity has a signed agreement with each public
4water system for which it is applying for funding for a planning
5andbegin delete feasabilityend deletebegin insert feasibilityend insert study project that indicates that the public
6water system agrees to the joint application and that the legal entity
7is acting on behalf of, and in place of, the public water system.

8(2) The application is for 100 percent grant funding for a
9planning andbegin delete feasabilityend deletebegin insert feasibilityend insert project.

10(3) The planning and feasibility study project includes a study
11of the feasibility of consolidation, which may include expansion
12of service to communities not currently served by a public water
13system.

14(4) The applicant has demonstrated that the legal entity has the
15ability to complete the proposed planning project.

16(5) At least one of the project participating public water systems
17has a primary drinking water standard violation and is on the
18 project priority list.

19(b) For purposes of this section, “legal entity” means an entity
20that is duly formed and operating under the laws of this state.

begin insert

21(c) This section shall become inoperative on July 1, 2014, and,
22as of January 1, 2015, is repealed, unless a later enacted statute,
23that becomes operative on or before January 1, 2015, deletes or
24extends the dates on which it becomes inoperative and is repealed.

end insert
25begin insert

begin insertSEC. 87.end insert  

end insert

begin insertSection 116760.55 is added to the end insertbegin insertHealth and Safety
26Code
end insert
begin insert, to read:end insert

begin insert
27

begin insert116760.55.end insert  

(a) For purposes of the board considering
28eligibility for grant or principal forgiveness funding for a planning
29project, a legal entity may apply on behalf of one or more public
30water systems serving disadvantaged or severely disadvantaged
31communities if all of the following requirements are met:

32(1) The legal entity has a signed agreement with each public
33water system for which it is applying for funding for a planning
34and feasibility study project that indicates that the public water
35system agrees to the joint application and that the legal entity is
36acting on behalf of, and in place of, the public water system.

37(2) The application is for 100 percent grant or principal
38 forgiveness funding for a planning and feasibility project.

39(3) The planning and feasibility study project includes a study
40of the feasibility of consolidation, which may include expansion
P126  1of service to communities not currently served by a public water
2system.

3(4) The applicant has demonstrated that the legal entity has the
4ability to complete the proposed planning project.

5(5) At least one of the project participating public water systems
6has a primary drinking water standard violation and is on the
7project priority list.

8(b) For purposes of this section, “legal entity” means an entity
9that is duly formed and operating under the laws of this state.

10(c) This section shall become operative on July 1, 2014, and is
11repealed as of January 1 of the next calendar year occurring after
12the board provides notice to the Legislature and the Secretary of
13State and posts notice on its Internet Web site that the board has
14adopted a policy handbook pursuant to Section 116760.43.

end insert
15begin insert

begin insertSEC. 88.end insert  

end insert

begin insertSection 116760.60 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
16amended to read:end insert

17

116760.60.  

begin insert(a)end insertbegin insertend insertThe department shall notify suppliers that may
18be eligible for funding pursuant to this chapter of the purposes of
19this chapter and the regulations established by the department.

begin insert

20(b) This section shall become inoperative on July 1, 2014, and,
21as of January 1, 2015, is repealed, unless a later enacted statute,
22that becomes operative on or before January 1, 2015, deletes or
23extends the dates on which it becomes inoperative and is repealed.

end insert
24begin insert

begin insertSEC. 89.end insert  

end insert

begin insertSection 116760.70 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
25amended to read:end insert

26

116760.70.  

(a) The department, after public notice and hearing,
27shall, from time to time, establish a priority list of proposed projects
28to be considered for funding under this chapter. In doing so, the
29department shall determine if improvement or rehabilitation of the
30public water system is necessary to provide pure, wholesome, and
31potable water in adequate quantity and at sufficient pressure for
32health, cleanliness, and other domestic purposes. The department
33shall establish criteria for placing public water systems on the
34priority list for funding that shall include criteria for priority list
35categories. Priority shall be given to projects that meet all of the
36following requirements:

37(1) Address the most serious risk to human health.

38(2) Are necessary to ensure compliance with requirements of
39Chapter 4 (commencing with Section 116270) including
40requirements for filtration.

P127  1(3) Assist systems most in need on a per household basis
2according to affordability criteria.

3(b) The department may, in establishing a new priority list,
4merge those proposed projects from the existing priority list into
5the new priority list.

6(c) In establishing the priority list, the department shall consider
7the system’s implementation of an ongoing source water protection
8program or wellhead protection program.

9(d) In establishing the priority list categories and the priority
10for funding projects, the department shall carry out the intent of
11the Legislature pursuant to subdivisions (e) to (h), inclusive, of
12Section 116760.10 and do all of the following:

13(1) Give priority to upgrade an existing system to meet drinking
14water standards.

15(2) After giving priority pursuant to paragraph (1), consider
16whether the applicant has sought other funds when providing
17funding for a project to upgrade an existing system and to
18accommodate a reasonable amount of growth.

19(e) Consideration of an applicant’s eligibility for funding shall
20initially be based on the priority list in effect at the time the
21application is received and the project’s ability to proceed. If a
22new priority list is established during the time the application is
23under consideration, but before the applicant receives a letter of
24commitment, the department may consider the applicant’s
25eligibility for funding based on either the old or new priority list.

26(f) The department may change the ranking of a specific project
27on the priority lists at any time following the publication of the
28list if information, that was not available at the time of the
29publication of the list, is provided that justifies the change in the
30ranking of the project.

31(g) The department shall provide one or more public hearings
32on the Intended Use Plan, the priority list, and the criteria for
33placing public water systems on the priority list. The department
34shall provide notice of the Intended Use Plan, criteria, and priority
35list not less than 30 days before the public hearing. The Intended
36Use Plan, criteria, and priority list shall not be subject to the
37requirements of Chapter 3.5 (commencing with Section 11340) of
38Part 1 of Division 3 of Title 2 of the Government Code. The
39department shall conduct duly noticed public hearings and
40workshops around the state to encourage the involvement and
P128  1active input of public and affected parties, including, but not limited
2to, water utilities, local government, public interest, environmental,
3and consumer groups, public health groups, land conservation
4interests, health care providers, groups representing vulnerable
5populations, groups representing business and agricultural interests,
6and members of the general public, in the development and periodic
7updating of the Intended Use Plan and the priority list.

8(h) The requirements of this section do not constitute an
9adjudicatory proceeding as defined in Section 11405.20 of the
10Government Code and Section 11410.10 of the Government Code
11is not applicable.

begin insert

12(i) This section shall become inoperative on July 1, 2014, and,
13as of January 1, 2015, is repealed, unless a later enacted statute,
14that becomes operative on or before January 1, 2015, deletes or
15extends the dates on which it becomes inoperative and is repealed.

end insert
16begin insert

begin insertSEC. 90.end insert  

end insert

begin insertSection 116760.70 is added to the end insertbegin insertHealth and Safety
17Code
end insert
begin insert, to read:end insert

begin insert
18

begin insert116760.70.end insert  

(a) The board, after public notice and opportunity
19for comment, shall, from time to time, establish a priority list of
20proposed projects to be considered for funding under this chapter.
21In doing so, the board shall determine if improvement or
22rehabilitation of the public water system is necessary to provide
23pure, wholesome, and potable water in adequate quantity and at
24sufficient pressure for health, cleanliness, and other domestic
25purposes. The board shall establish criteria for placing public
26water systems on the priority list for funding that shall include
27criteria for priority list categories. Priority shall be given to
28projects that meet all of the following requirements:

29(1) Address the most serious risk to human health.

30(2) Are necessary to ensure compliance with requirements of
31Chapter 4 (commencing with Section 116270) including
32requirements for filtration.

33(3) Assist systems most in need on a per household basis
34according to affordability criteria.

35(b) The board may, in establishing a new priority list, merge
36those proposed projects from the existing priority list into the new
37priority list.

38(c) In establishing the priority list, the board shall consider the
39system’s implementation of an ongoing source water protection
40program or wellhead protection program.

P129  1(d) In establishing the priority list categories and the priority
2for funding projects, the board shall carry out the intent of the
3Legislature pursuant to subdivisions (f) to (i), inclusive, of Section
4116760.10 and do all of the following:

5(1) Give priority to upgrade an existing system to meet drinking
6water standards.

7(2) After giving priority pursuant to paragraph (1), consider
8whether the applicant has sought other funds when providing
9funding for a project to upgrade an existing system and to
10accommodate a reasonable amount of growth.

11(e) Consideration of an applicant’s eligibility for funding shall
12initially be based on the priority list in effect at the time the
13application is received and the project’s ability to proceed. If a
14new priority list is established during the time the application is
15under consideration, but before the applicant receives a letter of
16commitment, the board may consider the applicant’s eligibility for
17funding based on either the old or new priority list.

18(f) The board may change the ranking of a specific project on
19the priority lists at any time following the publication of the list if
20information, that was not available at the time of the publication
21of the list, is provided that justifies the change in the ranking of
22the project.

23(g) The board shall provide one or more public hearings on the
24Intended Use Plan, the priority list, and the criteria for placing
25public water systems on the priority list. The board shall adopt an
26Intended Use Plan and provide notice of the Intended Use Plan,
27criteria, and priority list not less than 30 days before the adoption
28of the Intended Use Plan. The Intended Use Plan, criteria, and
29priority list shall not be subject to the requirements of Chapter 3.5
30(commencing with Section 11340) of Part 1 of Division 3 of Title
312 of the Government Code.

32(h) The requirements of this section do not constitute an
33adjudicatory proceeding as defined in Section 11405.20 of the
34Government Code and Section 11410.10 of the Government Code
35is not applicable.

36(i) This section shall become operative on July 1, 2014, and is
37repealed as of January 1 of the next calendar year occurring after
38the board provides notice to the Legislature and the Secretary of
39State and posts notice on its Internet Web site that the board has
40adopted a policy handbook pursuant to Section 116760.43.

end insert
P130  1begin insert

begin insertSEC. 91.end insert  

end insert

begin insertSection 116760.79 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
2amended to read:end insert

3

116760.79.  

begin insert(a)end insertbegin insertend insertApplications for funding under this chapter
4shall be made in the form and with the supporting material
5prescribed by the department.

begin insert

6(b) This section shall become inoperative on July 1, 2014, and,
7as of January 1, 2015, is repealed, unless a later enacted statute,
8that becomes operative on or before January 1, 2015, deletes or
9extends the dates on which it becomes inoperative and is repealed.

end insert
10begin insert

begin insertSEC. 92.end insert  

end insert

begin insertSection 116760.79 is added to the end insertbegin insertHealth and Safety
11Code
end insert
begin insert, to read:end insert

begin insert
12

begin insert116760.79.end insert  

(a) Applications for funding under this chapter
13shall be made in the form and with the supporting material
14prescribed by the board.

15(b) This section shall become operative on July 1, 2014, and is
16repealed on January 1 of the next calendar year occurring after
17the board provides notice to the Legislature and the Secretary of
18State and posts notice on its Internet Web site that the board has
19adopted a policy handbook pursuant to Section 116760.43.

end insert
20begin insert

begin insertSEC. 93.end insert  

end insert

begin insertSection 116760.80 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
21amended to read:end insert

22

116760.80.  

(a) The department shall determine, based on
23applications received, whether a particular applicant meets the
24criteria to be eligible for consideration.

25(b) If the applicant does not meet the criteria, it may be
26considered for planning and preliminary engineering study funding.
27begin delete Applicantsend deletebegin insert An applicantend insert successfully completing a studybegin delete areend deletebegin insert isend insert
28 eligible for consideration for project design and construction
29funding afterbegin delete theirend deletebegin insert theend insert study is completed andbegin delete they haveend deletebegin insert it hasend insert met
30the criteria to be eligible for consideration for project design and
31construction funding.

begin insert

32(c) This section shall become inoperative on July 1, 2014, and,
33as of January 1, 2015, is repealed, unless a later enacted statute,
34that becomes operative on or before January 1, 2015, deletes or
35extends the dates on which it becomes inoperative and is repealed.

end insert
36begin insert

begin insertSEC. 94.end insert  

end insert

begin insertSection 116760.80 is added to the end insertbegin insertHealth and Safety
37Code
end insert
begin insert, to read:end insert

begin insert
38

begin insert116760.80.end insert  

(a) The board shall determine, based on
39applications received, whether a particular applicant meets the
40criteria to be eligible for consideration.

P131  1(b) If the applicant does not meet the criteria, it may be
2considered for planning and preliminary engineering study funding.
3An applicant successfully completing a study is eligible for
4consideration for project design and construction funding after
5the study is completed and it has met the criteria to be eligible for
6consideration for project design and construction funding.

7(c) This section shall become operative on July 1, 2014, and is
8repealed as of January 1 of the next calendar year occurring after
9the board provides notice to the Legislature and the Secretary of
10State and posts notice on its Internet Web site that the board has
11adopted a policy handbook pursuant to Section 116760.43.

end insert
12begin insert

begin insertSEC. 95.end insert  

end insert

begin insertSection 116760.90 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
13amended to read:end insert

14

116760.90.  

(a) The department shall not approve an application
15for funding unless the department determines that the proposed
16study or project is necessary to enable the applicant to meet safe
17drinking water standards, and is consistent with an adopted
18countywide plan, if any. The department may refuse to fund a
19study or project if it determines that the purposes of this chapter
20may more economically and efficiently be met by means other
21than the proposed study or project. The department shall not
22approve an application for funding a project with a primary purpose
23to supply or attract future growth. The department may limit
24funding to costs necessary to enable suppliers to meet primary
25drinking water standards, as defined in Chapter 4 (commencing
26with Section 116270).

27(b) With respect to applications for funding of project design
28and construction, the department shall also determine all of the
29following:

30(1) Upon completion of the project, the applicant will be able
31to supply water that meets safe drinking water standards.

32(2) The project is cost-effective.

33(3) If the entire project is not to be funded under this chapter,
34the department shall specify which costs are eligible for funding.

35(c) In considering an application for funding a project that meets
36all other requirements of this chapter and regulations, the
37department shall not be prejudiced by the applicant initiating the
38projectbegin delete prior toend deletebegin insert beforeend insert the departmentbegin delete approvingend deletebegin insert approvesend insert the
39application for funding. Preliminary project costs that are otherwise
40eligible for funding pursuant to the provisions of this chapter shall
P132  1not be ineligible because the costs were incurred by the applicant
2begin delete prior toend deletebegin insert beforeend insert the departmentbegin delete approvingend deletebegin insert approvesend insert the application
3for funding. Construction costs that are otherwise eligible for
4funding pursuant to the provisions of this chapter shall not be
5ineligible because the costs were incurred after the approval of the
6application by the department but prior to the department entering
7into a contract with the applicant pursuant to Section 116761.50.

begin insert

8(d) This section shall become inoperative on July 1, 2014, and,
9as of January 1, 2015, is repealed, unless a later enacted statute,
10that becomes operative on or before January 1, 2015, deletes or
11extends the dates on which it becomes inoperative and is repealed.

end insert
12begin insert

begin insertSEC. 96.end insert  

end insert

begin insertSection 116760.90 is added to the end insertbegin insertHealth and Safety
13Code
end insert
begin insert, to read:end insert

begin insert
14

begin insert116760.90.end insert  

(a) The board shall not approve an application
15for funding unless the board determines that the proposed study
16or project is necessary to enable the applicant to meet safe drinking
17water standards, and is consistent with an adopted countywide
18plan, if any. The board may refuse to fund a study or project if it
19determines that the purposes of this chapter may more
20economically and efficiently be met by means other than the
21proposed study or project. The board shall not approve an
22application for funding a project with a primary purpose to supply
23or attract future growth. The board may limit funding to costs
24necessary to enable suppliers to meet primary drinking water
25standards, as defined in Chapter 4 (commencing with Section
26116270).

27(b) With respect to applications for funding of project design
28and construction, the board shall also determine all of the
29following:

30(1) Upon completion of the project, the applicant will be able
31to supply water that meets safe drinking water standards.

32(2) The project is cost effective.

33(3) If the entire project is not to be funded under this chapter,
34the board shall specify which costs are eligible for funding.

35(c) In considering an application for funding a project that
36meets all other requirements of this chapter and regulations, the
37board shall not be prejudiced by the applicant initiating the project
38before the board approves the application for funding. Preliminary
39project costs that are otherwise eligible for funding pursuant to
40 the provisions of this chapter shall not be ineligible because the
P133  1costs were incurred by the applicant before the board approves
2the application for funding. Construction costs that are otherwise
3eligible for funding pursuant to the provisions of this chapter shall
4not be ineligible because the costs were incurred after the approval
5of the application by the board, but before the board entering into
6a contract with the applicant pursuant to Section 116761.50.

7(d) This section shall become operative on July 1, 2014, and is
8repealed as of January 1 of the next calendar year occurring after
9the board provides notice to the Legislature and the Secretary of
10State and posts notice on its Internet Web site that the board has
11adopted a policy handbook pursuant to Section 116760.43.

end insert
12begin insert

begin insertSEC. 97.end insert  

end insert

begin insertSection 116761 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
13amended to read:end insert

14

116761.  

begin insert(a)end insertbegin insertend insertPlanning and preliminary engineering studies,
15project design, and construction costs eligible for funding under
16this chapter shall be established by the department and may include
17any of the following:

begin delete

18(a)

end delete

19begin insert(1)end insert Reasonable costs for the construction, improvement, or
20rehabilitation of facilities of the public water system, which may
21include water supply, treatment works, and all or part of a water
22distribution system, if necessary to carry out the purposes of this
23chapter.

begin delete

24(b)

end delete

25begin insert(2)end insert Reasonable costs associated with the consolidation of water
26systems, including, but not limited to, reasonable facility fees,
27connection fees, or similar charges.

begin delete

28(c)

end delete

29begin insert(3)end insert Reasonable costs of purchasing water systems, water rights,
30or watershed lands.

begin delete

31(d)

end delete

32begin insert(4)end insert Operation and maintenance costs only to the extent they are
33used in the startup and testing of the completed project. All other
34operation and maintenance costs shall be the responsibility of the
35supplier and shall not be considered as part of the project costs.

begin delete

36(e)

end delete

37begin insert(5)end insert Reasonable costs of establishing eligibility for funding under
38this chapter that were incurred before the department entered into
39a commitment to fund the project under this chapter.

begin delete

40(f)

end delete

P134  1begin insert(6)end insert The acquisition of real property or interests therein only if
2the acquisition is integral to a project, and as otherwise limited in
3the federal act.

begin insert

4(b) This section shall become inoperative on July 1, 2014, and,
5as of January 1, 2015, is repealed, unless a later enacted statute,
6that becomes operative on or before January 1, 2015, deletes or
7extends the dates on which it becomes inoperative and is repealed.

end insert
8begin insert

begin insertSEC. 98.end insert  

end insert

begin insertSection 116761 is added to the end insertbegin insertHealth and Safety
9Code
end insert
begin insert, to read:end insert

begin insert
10

begin insert116761.end insert  

(a) Planning and preliminary engineering studies,
11project design, and construction costs eligible for funding under
12this chapter shall be established by the board and may include
13any of the following:

14(1) Reasonable costs for the construction, improvement, or
15rehabilitation of facilities of the public water system, which may
16include water supply, treatment works, and all or part of a water
17distribution system, if necessary to carry out the purposes of this
18chapter.

19(2) Reasonable costs associated with the consolidation of water
20systems, including, but not limited to, reasonable facility fees,
21connection fees, or similar charges.

22(3) Reasonable costs of purchasing water systems, water rights,
23or watershed lands.

24(4) Operation and maintenance costs only to the extent they are
25used in the startup and testing of the completed project. All other
26operation and maintenance costs shall be the responsibility of the
27supplier and shall not be considered as part of the project costs.

28(5) Reasonable costs of establishing eligibility for funding under
29this chapter that were incurred before the board entered into a
30commitment to fund the project under this chapter.

31(6) The acquisition of real property or interests therein only if
32the acquisition is integral to a project, and as otherwise limited
33in the federal act.

34(b) This section shall become operative on July 1, 2014, and is
35repealed as of January 1 of the next calendar year occurring after
36the board provides notice to the Legislature and the Secretary of
37State and posts notice on its Internet Web site that the board has
38adopted a policy handbook pursuant to Section 116760.43.

end insert
39begin insert

begin insertSEC. 99.end insert  

end insert

begin insertSection 116761.20 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
40amended to read:end insert

P135  1

116761.20.  

(a) Planning and preliminary engineering studies,
2project design, and construction costs incurred by community and
3not-for-profit noncommunity public water systems may be funded
4under this chapter by loans, and, if these systems are owned by
5public agencies or private not-for-profit water companies, by grants
6or a combination of grants and loans.

7(b) (1) The department shall determine what portion of the full
8costs the public agency or private not-for-profit water company is
9capable of repaying and authorize funding in the form of a loan
10for that amount. The department shall authorize a grant only to the
11extent the department finds the public agency or not-for-profit
12water company is unable to repay the full costs of a loan.

13(2) Notwithstanding any other provision of this chapter, a small
14community water system or nontransient noncommunity water
15system that is owned by a public agency or a private not-for-profit
16water company and serving a severely disadvantaged community,
17is deemed to have no ability to repay a loan.

18(c) At the request of the department, the Public Utilities
19Commission shall submit comments concerning the ability of
20suppliers, subject to its jurisdiction, to finance the project from
21other sources and to repay the loan.

begin insert

22(d) This section shall become inoperative on July 1, 2014, and,
23as of January 1, 2015, is repealed, unless a later enacted statute,
24that becomes operative on or before January 1, 2015, deletes or
25extends the dates on which it becomes inoperative and is repealed.

end insert
26begin insert

begin insertSEC. 100.end insert  

end insert

begin insertSection 116761.20 is added to the end insertbegin insertHealth and Safety
27Code
end insert
begin insert, to read:end insert

begin insert
28

begin insert116761.20.end insert  

(a) Planning and preliminary engineering studies,
29project design, and construction costs incurred by community and
30not-for-profit noncommunity public water systems may be funded
31under this chapter by loans or other repayable financing, and, if
32these systems are owned by public agencies or private
33not-for-profit water companies, by grants, principal forgiveness,
34or a combination of grants and loans or other financial assistance.

35(b) (1) The board shall determine what portion of the full costs
36the public agency or private not-for-profit water company is
37capable of repaying and authorize funding in the form of a loan
38or other repayable financing for that amount. The board shall
39authorize a grant or principal forgiveness only to the extent the
P136  1board finds the public agency or not-for-profit water company is
2unable to repay the full costs of the financing.

3(2) Notwithstanding any other provision of this chapter, a small
4community water system or nontransient noncommunity water
5system that is owned by a public agency or a private not-for-profit
6water company and serving a severely disadvantaged community,
7is deemed to have no ability to repay any financing.

8(c) At the request of the board, the Public Utilities Commission
9shall submit comments concerning the ability of suppliers, subject
10to its jurisdiction, to finance the project from other sources and
11to repay the financing.

12(d) This section shall become operative on July 1, 2014.

end insert
13begin insert

begin insertSEC. 101.end insert  

end insert

begin insertSection 116761.21 of the end insertbegin insertHealth and Safety Codeend insert
14begin insert is amended to read:end insert

15

116761.21.  

begin insert(a)end insertbegin insertend insertNot more than 30 percent and not less than 15
16percent, provided that there are projects eligible for funding as
17prescribed in Section 116760.70, of the total amount deposited in
18the fund may be expended for grants. This amount shall be limited
19to disadvantaged communities specified in Section 1452(d) of the
20federal act (42 U.S.C.A. Sec. 300j-12).

begin insert

21(b) This section shall become inoperative on July 1, 2014, and,
22as of January 1, 2015, is repealed, unless a later enacted statute,
23that becomes operative on or before January 1, 2015, deletes or
24extends the dates on which it becomes inoperative and is repealed.

end insert
25begin insert

begin insertSEC. 102.end insert  

end insert

begin insertSection 116761.22 of the end insertbegin insertHealth and Safety Codeend insert
26begin insert is amended to read:end insert

27

116761.22.  

begin insert(a)end insertbegin insertend insertLoans for project design and construction shall
28be repaid over a term not longer than the useful life of the project
29constructed or 20 years, whichever is shorter, except as provided
30in the federal act.

begin insert

31(b) This section shall become inoperative on July 1, 2014, and,
32as of January 1, 2015, is repealed, unless a later enacted statute,
33that becomes operative on or before January 1, 2015, deletes or
34extends the dates on which it becomes inoperative and is repealed.

end insert
35begin insert

begin insertSEC. 103.end insert  

end insert

begin insertSection 116761.23 of the end insertbegin insertHealth and Safety Codeend insert
36begin insert is amended to read:end insert

37

116761.23.  

(a) The maximum amount of a planning grant
38permitted under this chapter for each participating public water
39system’s share of the costs of the planning, engineering studies,
P137  1environmental documentation, and design of a single project shall
2be no more than five hundred thousand dollars ($500,000).

3(b) Unless the department approves an increase pursuant to this
4subdivision, the maximum amount of a construction grant award
5authorized under this chapter to each participating public water
6system for its share of the cost of the construction of a single
7project shall be no more than three million dollars ($3,000,000).
8The department may approve an increase in the maximum amount
9for a construction grant award authorized under this chapter so
10that the maximum amount of the construction grant award does
11not exceed ten million dollars ($10,000,000) only if the department
12makes all of the following findings:

13(1) A public water system that serves a disadvantaged
14community has a defined project need that exceeds the maximum
15grant amount of three million dollars ($3,000,000).

16(2) The defined project has been bypassed in at least one funding
17cycle due to a lack of funds.

18(3) The defined project is eligible for funding pursuant to the
19program regulations.

20(4) The defined project represents the highest public health risk
21among unfunded projects, as determined by the department
22according to its standard criteria.

23(c) Total funding under this article for planning, engineering
24studies, environmental documentation, project design, and
25construction costs of a single project, whether in the form of a loan
26or a grant, or both, shall be determined by an assessment of
27affordability using criteria established by the department.

28(d) Subject to all other limitations of this chapter, a small
29community water system or nontransient noncommunity water
30system, owned by a public agency or private not-for-profit water
31company, serving severely disadvantaged communities shall be
32eligible to receive up to 100 percent of eligible project costs in the
33form of a grant, to the extent the system cannot afford a loan as
34determined by the department pursuant to Section 116761.20.

35(e) Subject to the availability of funds and the applicant’s ability
36to repay, an applicant may receive up to the full cost of the project
37in the form of a loan bearing interest at the rate established pursuant
38to subdivision (a) of Section 116761.65.

begin insert

39(f) This section shall become inoperative on July 1, 2014, and,
40as of January 1, 2015, is repealed, unless a later enacted statute,
P138  1that becomes operative on or before January 1, 2015, deletes or
2extends the dates on which it becomes inoperative and is repealed.

end insert
3begin insert

begin insertSEC. 104.end insert  

end insert

begin insertSection 116761.23 is added to the end insertbegin insertHealth and Safety
4Code
end insert
begin insert, to read:end insert

begin insert
5

begin insert116761.23.end insert  

(a) The maximum amount of a planning grant
6permitted under this chapter for each participating public water
7system’s share of the costs of the planning, engineering studies,
8environmental documentation, and design of a single project shall
9be no more than five hundred thousand dollars ($500,000).

10(b) Unless the board approves an increase pursuant to this
11subdivision, the maximum amount of a construction grant award
12authorized under this chapter to each participating public water
13system for its share of the cost of the construction of a single
14project shall be no more than three million dollars ($3,000,000).
15The board may approve an increase in the maximum amount for
16a construction grant award authorized under this chapter so that
17the maximum amount of the construction grant award does not
18exceed ten million dollars ($10,000,000) only if the board makes
19all of the following findings:

20(1) A public water system that serves a disadvantaged
21community has a defined project need that exceeds the maximum
22grant amount of three million dollars ($3,000,000).

23(2) The defined project has been bypassed in at least one funding
24cycle due to a lack of funds.

25(3) The defined project is eligible for funding pursuant to the
26program regulations.

27(4) The defined project represents the highest public health risk
28among unfunded projects, as determined by the board according
29to its standard criteria.

30(c) Total funding under this article for planning, engineering
31studies, environmental documentation, project design, and
32construction costs of a single project, whether in the form of a
33loan or a grant, or both, shall be determined by an assessment of
34affordability using criteria established by the board.

35(d) Subject to all other limitations of this chapter, a small
36community water system or nontransient noncommunity water
37system, owned by a public agency or private not-for-profit water
38company, serving severely disadvantaged communities shall be
39eligible to receive up to 100 percent of eligible project costs in the
P139  1form of a grant, to the extent the system cannot afford a loan as
2determined by the board pursuant to Section 116761.20.

3(e) Subject to the availability of funds and the applicant’s ability
4to repay, an applicant may receive up to the full cost of the project
5in the form of a loan bearing interest at the rate established
6pursuant to subdivision (a) of Section 116761.65.

7(f) This section shall become operative on July 1, 2014, and is
8repealed as of January 1 of the next calendar year occurring after
9the board provides notice to the Legislature and the Secretary of
10State and posts notice on its Internet Web site that the board has
11adopted a policy handbook pursuant to Section 116760.43.

end insert
12begin insert

begin insertSEC. 105.end insert  

end insert

begin insertSection 116761.24 of the end insertbegin insertHealth and Safety Codeend insert
13begin insert is amended to read:end insert

14

116761.24.  

begin insert(a)end insertbegin insertend insertNot less than 15 percent of the total amount
15deposited in the fund shall be expended for providing loans and
16grants to public water systems that regularly serve fewer than
1710,000 persons to the extent those funds can be obligated for
18eligible projects.

begin insert

19(b) This section shall become inoperative on July 1, 2014, and,
20as of January 1, 2015, is repealed, unless a later enacted statute,
21that becomes operative on or before January 1, 2015, deletes or
22extends the dates on which it becomes inoperative and is repealed.

end insert
23begin insert

begin insertSEC. 106.end insert  

end insert

begin insertSection 116761.40 of the end insertbegin insertHealth and Safety Codeend insert
24begin insert is amended to read:end insert

25

116761.40.  

begin insert(a)end insertbegin insertend insertThe failure or inability of any public water
26system to receive funds under this chapter or any other loan or
27grant program or any delay in obtaining the funds shall not alter
28the obligation of the system to comply in a timely manner with all
29applicable drinking water standards and requirements of the
30California Safe Drinking Water Act or the federal act.

begin insert

31(b) This section shall become inoperative on July 1, 2014, and,
32as of January 1, 2015, is repealed, unless a later enacted statute,
33that becomes operative on or before January 1, 2015, deletes or
34extends the dates on which it becomes inoperative and is repealed.

end insert
35begin insert

begin insertSEC. 107.end insert  

end insert

begin insertSection 116761.40 is added to the end insertbegin insertHealth and Safety
36Code
end insert
begin insert, to read:end insert

begin insert
37

begin insert116761.40.end insert  

(a) The failure or inability of any public water
38system to receive funds under this chapter or any other financial
39assistance program or any delay in obtaining the funds shall not
40alter the obligation of the system to comply in a timely manner
P140  1with all applicable drinking water standards and requirements of
2the California Safe Drinking Water Act or the federal act.

3(b) This section shall become operative on July 1, 2014.

end insert
4begin insert

begin insertSEC. 108.end insert  

end insert

begin insertSection 116761.50 of the end insertbegin insertHealth and Safety Codeend insert
5begin insert is amended to read:end insert

6

116761.50.  

(a) The department may enter into contracts with
7applicants for grants or loans for the purposes set forth in this
8chapter. Any contract entered into pursuant to this section shall
9include only terms and conditions consistent with this chapter and
10the regulations established under this chapter.

11(b) The contract shall include all of the following terms and
12conditions that are applicable:

13(1) An estimate of the reasonable cost of the project or study.

14(2) An agreement by the department to loan or grant, or loan
15and grant, the applicant an amount that equals the portion of the
16costs found by the department to be eligible for a state loan or
17grant. The agreement may provide for disbursement of funds during
18the progress of the study or construction, or following completion
19of the study or construction, as agreed by the parties.

20(3) An agreement by the applicant to proceed expeditiously with
21the project or study.

22(4) An agreement by the applicant to commence operations of
23the project upon completion of the project, and to properly operate
24and maintain the project in accordance with the applicable
25provisions of law.

26(5) In the case of a loan, an agreement by the applicant to repay
27the state, over a period not to exceed the useful life of the project
28or 20 years, whichever is shorter, except as provided in the federal
29act, or in the case of a study, over a period not to exceed five years,
30all of the following:

31(A) The amount of the loan.

32(B) The administrative fee specified in subdivision (a) of Section
33116761.70.

34(C) Interest on the principal, which is the amount of the loan
35plus the administrative fee.

36(6) In the case of a grant, an agreement by the public agency or
37private not-for-profit water company to operate and maintain the
38water system for a period of 20 years, unless otherwise authorized
39by the department.

P141  1(c) The contract may include any of the following terms and
2conditions:

3(1) An agreement by the supplier to adopt a fee structure that
4provides for the proper maintenance and operations of the project
5and includes a sinking fund for repair and replacement of the
6facilities in cases where appropriate. The fee structure shall also
7provide an acceptable dedicated source of revenue for the
8repayment of the amount of the loan, and the payment of
9administrative fees and interest.

10(2) If the entire project is not funded pursuant to this chapter,
11the department may include a provision requiring the applicant to
12share the cost of the project or obtain funding from other sources.

13(d) The department may require applicants to provide security
14for loan contracts.

begin insert

15(e) This section shall become inoperative on July 1, 2014, and,
16as of January 1, 2015, is repealed, unless a later enacted statute,
17that becomes operative on or before January 1, 2015, deletes or
18extends the dates on which it becomes inoperative and is repealed.

end insert
19begin insert

begin insertSEC. 109.end insert  

end insert

begin insertSection 116761.50 is added to the end insertbegin insertHealth and Safety
20Code
end insert
begin insert, to read:end insert

begin insert
21

begin insert116761.50.end insert  

(a) The board may enter into contracts with
22applicants for grants or loans for the purposes set forth in this
23chapter. Any contract entered into pursuant to this section shall
24include only terms and conditions consistent with this chapter and
25the regulations established under this chapter.

26(b) The contract shall include all of the following terms and
27conditions that are applicable:

28(1) An estimate of the reasonable cost of the project or study.

29(2) An agreement by the board to loan or grant, or loan and
30grant, the applicant an amount that equals the portion of the costs
31found by the board to be eligible for a state loan or grant. The
32agreement may provide for disbursement of funds during the
33progress of the study or construction, or following completion of
34the study or construction, as agreed by the parties.

35(3) An agreement by the applicant to proceed expeditiously with
36the project or study.

37(4) An agreement by the applicant to commence operations of
38the project upon completion of the project, and to properly operate
39and maintain the project in accordance with the applicable
40provisions of law.

P142  1(5) In the case of a loan, an agreement by the applicant to repay
2the state, over a period not to exceed the useful life of the project
3or 20 years, whichever is shorter, except as provided in the federal
4act, or in the case of a study, over a period not to exceed five years,
5all of the following:

6(A) The amount of the loan.

7(B) The administrative fee specified in subdivision (a) of Section
8116761.70.

9(C) Interest on the principal, which is the amount of the loan
10plus the administrative fee.

11(6) In the case of a grant, an agreement by the public agency
12or private not-for-profit water company to operate and maintain
13the water system for the term of the financing agreement or the
14useful life of the project, as determined by the board, unless
15otherwise authorized by the board.

16(c) The contract may include any of the following terms and
17conditions:

18(1) An agreement by the supplier to adopt a fee structure that
19provides for the proper maintenance and operations of the project
20and includes a sinking fund for repair and replacement of the
21facilities in cases where appropriate. The fee structure shall also
22provide an acceptable dedicated source of revenue for the
23repayment of the amount of the loan, and the payment of
24administrative fees and interest.

25(2) If the entire project is not funded pursuant to this chapter,
26the board may include a provision requiring the applicant to share
27the cost of the project or obtain funding from other sources.

28(d) The board may require applicants to provide security for
29loan contracts.

30(e) This section shall become operative on July 1, 2014, and is
31repealed as of January 1 of the next calendar year occurring after
32the board provides notice to the Legislature and the Secretary of
33State and posts notice on its Internet Web site that the board has
34adopted a policy handbook pursuant to Section 116760.43.

end insert
35begin insert

begin insertSEC. 110.end insert  

end insert

begin insertSection 116761.50 is added to the end insertbegin insertHealth and Safety
36Code
end insert
begin insert, to read:end insert

begin insert
37

begin insert116761.50.end insert  

(a) The board may enter into financing agreements
38with applicants for the purposes set forth in this chapter.

39(b) If the board provides construction financing, the financing
40recipient shall commit to operate and maintain, or ensure the
P143  1operation and maintenance of, the water system for the term of
2the financing agreement or the useful life of the project, as
3determined by the board, unless otherwise authorized by the board.

4(c) This section shall become operative on January 1 of the next
5calendar year occurring after the board provides notice to the
6Legislature and the Secretary of State and posts notice on its
7Internet Web site that the board has adopted a policy handbook
8 pursuant to Section 116760.43.

end insert
9begin insert

begin insertSEC. 111.end insert  

end insert

begin insertSection 116761.60 of the end insertbegin insertHealth and Safety Codeend insert
10begin insert is amended to read:end insert

11

116761.60.  

begin insert(a)end insertbegin insertend insertAll funding received under this chapter shall
12be expended by the applicant within three years of the execution
13of the contract with the department or its designee. The three-year
14period may be extended, with the approval of the department, until
15five years after the date the original contract, not including
16amendments, was executed.

begin insert

17(b) This section shall become inoperative on July 1, 2014, and,
18as of January 1, 2015, is repealed, unless a later enacted statute,
19that becomes operative on or before January 1, 2015, deletes or
20extends the dates on which it becomes inoperative and is repealed.

end insert
21begin insert

begin insertSEC. 112.end insert  

end insert

begin insertSection 116761.60 is added to the end insertbegin insertHealth and Safety
22Code
end insert
begin insert, to read:end insert

begin insert
23

begin insert116761.60.end insert  

(a) All funding received under this chapter shall
24be expended by the applicant within three years of the execution
25of the contract with the board or its designee. The three-year period
26may be extended, with the approval of the board, until five years
27after the date the original contract, not including amendments,
28was executed.

29(b) This section shall become operative on July 1, 2014, and is
30repealed as of January 1 of the next calendar year occurring after
31the board provides notice to the Legislature and the Secretary of
32State and posts notice on its Internet Web site that the board has
33adopted a policy handbook pursuant to Section 116760.43.

end insert
34begin insert

begin insertSEC. 113.end insert  

end insert

begin insertSection 116761.62 of the end insertbegin insertHealth and Safety Codeend insert
35begin insert is amended to read:end insert

36

116761.62.  

(a) To the extent permitted by federal and state
37law, moneys in the fund may be expended to rebate to the federal
38government all arbitrage profits required by the federal Tax Reform
39Act of 1986begin delete (P.L.end deletebegin insert (Public Lawend insert 99-514) or any amendmentbegin delete thereofend delete
40begin insert ofend insert or supplementbegin delete thereto.end deletebegin insert to that law.end insert To the extent that this
P144  1expenditure of the moneys in the fund is prohibited by federal or
2state law, any rebates required by federal law shall be paid from
3the General Fund or other sources, upon appropriation by the
4Legislature.

5(b) Notwithstanding any otherbegin delete provisions ofend delete law or regulation,
6the department may enter into contracts or may procure those
7services and equipment that may be necessary to ensure prompt
8and complete compliance with any provisions relating to the fund
9imposed by either the federal Tax Reform Act of 1986begin delete (P.L.end deletebegin insert (Public
10Lawend insert
99-514) or the federal Safe Drinking Water Act.

begin insert

11(c) This section shall become inoperative on July 1, 2014, and,
12as of January 1, 2015, is repealed, unless a later enacted statute,
13that becomes operative on or before January 1, 2015, deletes or
14extends the dates on which it becomes inoperative and is repealed.

end insert
15begin insert

begin insertSEC. 114.end insert  

end insert

begin insertSection 116761.62 is added to the end insertbegin insertHealth and Safety
16Code
end insert
begin insert, to read:end insert

begin insert
17

begin insert116761.62.end insert  

(a) To the extent permitted by federal and state
18law, moneys in the fund may be expended to rebate to the federal
19government all arbitrage profits required by the federal Tax
20Reform Act of 1986 (Public Law 99-514) or any amendment of or
21supplement to that law. To the extent that this expenditure of the
22moneys in the fund is prohibited by federal or state law, any rebates
23required by federal law shall be paid from the General Fund or
24other sources, upon appropriation by the Legislature.

25(b) Notwithstanding any other law or regulation, the board may
26enter into contracts or may procure those services and equipment
27that may be necessary to ensure prompt and complete compliance
28with any provisions relating to the fund imposed by either the
29 federal Tax Reform Act of 1986 (Public Law 99-514) or the federal
30Safe Drinking Water Act.

31(c) This section shall become operative on July 1, 2014.

end insert
32begin insert

begin insertSEC. 115.end insert  

end insert

begin insertSection 116761.65 of the end insertbegin insertHealth and Safety Codeend insert
33begin insert is amended to read:end insert

34

116761.65.  

(a) The department shall annually establish the
35interest rate for loans made pursuant to this chapter at 50 percent
36of the average interest rate, computed by the true interest cost
37method, paid by the state on general obligation bonds issued in
38the prior calendar year. All loans made pursuant to this chapter
39shall carry the interest rate established for the calendar year in
40which the funds are committed to the loan, as of the date of the
P145  1letter of commitment. The interest rate set for each loan shall be
2applied throughout the repayment period of the loan. Interest on
3the loan shall not be deferred.

4(b) Notwithstanding subdivision (a), if the loan applicant is a
5public water system that is a disadvantaged community or provides
6matching funds, the interest rate on the loan shall be zero percent.

begin insert

7(c) This section shall become inoperative on July 1, 2014, and,
8as of January 1, 2015, is repealed, unless a later enacted statute,
9that becomes operative on or before January 1, 2015, deletes or
10extends the dates on which it becomes inoperative and is repealed.

end insert
11begin insert

begin insertSEC. 116.end insert  

end insert

begin insertSection 116761.65 is added to the end insertbegin insertHealth and Safety
12Code
end insert
begin insert, to read:end insert

begin insert
13

begin insert116761.65.end insert  

(a) The board shall annually establish the interest
14rate for loans made pursuant to this chapter at a rate not to exceed
1550 percent of the average interest rate, computed by the true
16interest cost method, paid by the state on general obligation bonds
17issued in the prior calendar year. All loans made pursuant to this
18chapter shall carry the interest rate established for the calendar
19year in which the funds are committed to the loan, as of the date
20of the letter of commitment. The interest rate set for each loan
21shall be applied throughout the repayment period of the loan.
22Interest on the loan shall not be deferred.

23(b) Notwithstanding subdivision (a), if the loan applicant is a
24public water system that is a disadvantaged community or provides
25matching funds, the interest rate on the loan shall be zero percent.

26(c) This section shall become operative on July 1, 2014, and is
27repealed as of January 1 of the next calendar year occurring after
28the board provides notice to the Legislature and the Secretary of
29State and posts notice on its Internet Web site that the board has
30adopted a policy handbook pursuant to Section 116760.43.

end insert
31begin insert

begin insertSEC. 117.end insert  

end insert

begin insertSection 116761.65 is added to the end insertbegin insertHealth and Safety
32Code
end insert
begin insert, to read:end insert

begin insert
33

begin insert116761.65.end insert  

(a) The board shall annually establish the interest
34rate for repayable financing made pursuant to this chapter at a
35rate not to exceed 50 percent of the average interest rate, computed
36by the true interest cost method, paid by the state on general
37obligation bonds issued in the prior calendar year, rounded up to
38the closest one-tenth of 1 percent.

39(b) Notwithstanding subdivision (a), if the financing is for a
40public water system that serves a disadvantaged community with
P146  1a financial hardship as determined by the board or if the financing
2is for a public water system that provides matching funds, the
3interest rate shall be 0 percent.

4(c) This section shall become operative on January 1 of the next
5calendar year occurring after the board provides notice to the
6Legislature and the Secretary of State and posts notice on its
7Internet Web site that the board has adopted a policy handbook
8pursuant to Section 116760.43.

end insert
9begin insert

begin insertSEC. 118.end insert  

end insert

begin insertSection 116761.70 of the end insertbegin insertHealth and Safety Codeend insert
10begin insert is amended to read:end insert

11

116761.70.  

(a) Not more than 4 percent of the capitalization
12grant may be used by the department for administering this chapter.
13The department may establish a reasonable schedule of
14administrative fees for loans, which shall be paid by the applicant
15to reimburse the state for the costs of the state administration of
16this chapter.

17(b) Charges incurred by the Attorney General in protection of
18the state’s interest in the use of repayment of grant and loan funds
19under this chapter shall be paid. These charges shall not be paid
20from funds allocated for administrative purposes, but shall be
21treated as a program expense not to exceed one-half of 1 percent
22of the total amount deposited in the fund.

begin insert

23(c) This section shall become inoperative on July 1, 2014, and,
24as of January 1, 2015, is repealed, unless a later enacted statute,
25that becomes operative on or before January 1, 2015, deletes or
26extends the dates on which it becomes inoperative and is repealed.

end insert
27begin insert

begin insertSEC. 119.end insert  

end insert

begin insertSection 116761.70 is added to the end insertbegin insertHealth and Safety
28Code
end insert
begin insert, to read:end insert

begin insert
29

begin insert116761.70.end insert  

(a) Not more than 4 percent of the capitalization
30grant may be used by the board for administering this chapter.
31The board may establish a reasonable schedule of administrative
32fees that shall be paid by the applicant to reimburse the state for
33the costs of the state administration of this chapter.

34(b) This section shall become operative on July 1, 2014.

end insert
35begin insert

begin insertSEC. 120.end insert  

end insert

begin insertSection 116761.80 of the end insertbegin insertHealth and Safety Codeend insert
36begin insert is amended to read:end insert

37

116761.80.  

(a) The department may expend money repaid to
38the state pursuant to any contract executed under Section 116761.50
39as necessary for the administration of contracts entered into by the
40department under this chapter, but those expenditures may not in
P147  1any year exceed 1.5 percent of the amount of principal and interest
2projected to be paid to the state in that year pursuant to this chapter.

3(b) Charges incurred by the Attorney General in protecting the
4state’s interest in the use of funds and repayment of funds under
5this chapter may be paid by the department from these funds, but
6those charges may not exceed one-half of 1 percent of the amount
7of principal and interest projected to be paid to the state in that
8year pursuant to this chapter.

9(c) Any of these sums unexpended by the department at the end
10of any year shall automatically revert to the fund.

begin insert

11(d) This section shall become inoperative on July 1, 2014, and,
12as of January 1, 2015, is repealed, unless a later enacted statute,
13that becomes operative on or before January 1, 2015, deletes or
14extends the dates on which it becomes inoperative and is repealed.

end insert
15begin insert

begin insertSEC. 121.end insert  

end insert

begin insertSection 116761.85 of the end insertbegin insertHealth and Safety Codeend insert
16begin insert is amended to read:end insert

17

116761.85.  

begin insert(a)end insertbegin insertend insertExcept as provided in Section 116761.80, all
18money repaid to the state pursuant to any contract executed under
19subdivision (a) of Section 116761.50, including interest payments
20and all interest earned on or accruing to any moneys in the fund,
21shall be deposited in the fund and shall be available in perpetuity,
22for expenditure for the purposes and uses permitted by this chapter
23and the federal act.

begin insert

24(b) This section shall become inoperative on July 1, 2014, and,
25as of January 1, 2015, is repealed, unless a later enacted statute,
26that becomes operative on or before January 1, 2015, deletes or
27extends the dates on which it becomes inoperative and is repealed.

end insert
28begin insert

begin insertSEC. 122.end insert  

end insert

begin insertSection 116761.85 is added to the end insertbegin insertHealth and Safety
29Code
end insert
begin insert, to read:end insert

begin insert
30

begin insert116761.85.end insert  

(a) Moneys repaid to the state pursuant to any
31contract executed pursuant to this chapter, including interest
32payments and all interest earned on or accruing to any moneys in
33the fund, shall be deposited in the fund and shall be available in
34perpetuity, for expenditure for the purposes and uses permitted by
35this chapter and the federal act.

36(b) This section shall become operative on July 1, 2014.

end insert
37begin insert

begin insertSEC. 123.end insert  

end insert

begin insertSection 116762.60 of the end insertbegin insertHealth and Safety Codeend insert
38begin insert is amended to read:end insert

39

116762.60.  

(a) The department shall, contingent upon receiving
40federal capitalization grant funds, develop and implement a
P148  1program to protect sources of drinking water. In carrying out this
2program, the department shall coordinate with local, state, and
3federal agencies that have public health and environmental
4management programs to ensure an effective implementation of
5the program while avoiding duplication of effort and reducing
6program costs. The program shall includebegin insert all ofend insert the following:

7(1) A source water assessment program to delineate and assess
8the drinking water supplies of public drinking water systems
9pursuant to Section 1453 of the federal act.

10(2) A wellhead protection program to protect drinking water
11wells from contamination pursuant to Section 1428 of the federal
12act.

13(3) Pursuant to Section 1452(k) of the federal act, the department
14shall set aside federal capitalization grant funds sufficient to carry
15out paragraphs (1) and (2) of subdivision (a).

16(b) The department shall set aside federal capitalization grant
17funds to provide assistance to water systems pursuant to Section
181452(k) of the federal act for the following source water protection
19activities, to the extent that those activities are proposed:

20(1) To acquire land or a conservation easement if the purpose
21of the acquisition is to protect the source water of the system from
22contamination and to ensure compliance with primary drinking
23water regulations.

24(2) To implement local, voluntary source water protection
25measures to protect source water in areas delineated pursuant to
26Section 1453 of the federal act, in order to facilitate compliance
27with primary drinking water regulations applicable to the water
28system under Section 1412 of the federal act or otherwise
29significantly further the health protection objectives of the federal
30and state acts.

31(3) To carry out a voluntary, incentive-based source water
32quality protection partnership pursuant to Section 1454 of the
33federal act.

34(c) The department shall conduct duly noticed public hearings,
35public workshops, focus groups, or meetings around the state to
36encourage the involvement and active input of public and affected
37parties in the development and periodic updating of the source
38water protection program adopted pursuant to this article. The
39notices shall contain basic information about the program in an
40understandable format and shall notify widely representative
P149  1groups, including, but not limited to, federal, state, and local
2governmental agencies, water utilities, public interest,
3environmental, and consumer groups, public health groups, land
4conservation groups, health care providers, groups representing
5vulnerable populations, groups representing business and
6agricultural interests, and members of the general public. In
7addition, the department shall convene a technical advisory
8committee and a citizens’ advisory committee made up of those
9representative groups to provide advice and direction on program
10development and implementation.

11(d) The department shall submit a report to the Legislature every
12two years on its activities under this section. The report shall
13contain a description of each program for which funds have been
14set aside under this section, the effectiveness of each program in
15carrying out the intent of the federal and state acts, and an
16accounting of the amount of set aside funds used.

begin insert

17(e) This section shall become inoperative on July 1, 2014, and,
18as of January 1, 2015, is repealed, unless a later enacted statute,
19that becomes operative on or before January 1, 2015, deletes or
20extends the dates on which it becomes inoperative and is repealed.

end insert
21begin insert

begin insertSEC. 124.end insert  

end insert

begin insertSection 116762.60 is added to the end insertbegin insertHealth and Safety
22Code
end insert
begin insert, to read:end insert

begin insert
23

begin insert116762.60.end insert  

(a) The board shall, contingent upon receiving
24federal capitalization grant funds, develop and implement a
25program to protect sources of drinking water. In carrying out this
26program, the board shall coordinate with local, state, and federal
27agencies that have public health and environmental management
28programs to ensure an effective implementation of the program
29while avoiding duplication of effort and reducing program costs.
30The program shall include all of the following:

31(1) A source water assessment program to delineate and assess
32the drinking water supplies of public drinking water systems
33pursuant to Section 1453 of the federal act.

34(2) A wellhead protection program to protect drinking water
35wells from contamination pursuant to Section 1428 of the federal
36act.

37(3) Pursuant to Section 1452(k) of the federal act, the board
38shall set aside federal capitalization grant funds sufficient to carry
39out paragraphs (1) and (2) of subdivision (a).

P150  1(b) The board shall set aside federal capitalization grant funds
2to provide assistance to water systems pursuant to Section 1452(k)
3of the federal act for the following source water protection
4activities, to the extent that those activities are proposed:

5(1) To acquire land or a conservation easement if the purpose
6of the acquisition is to protect the source water of the system from
7contamination and to ensure compliance with primary drinking
8water regulations.

9(2) To implement local, voluntary source water protection
10measures to protect source water in areas delineated pursuant to
11Section 1453 of the federal act, in order to facilitate compliance
12with primary drinking water regulations applicable to the water
13system under Section 1412 of the federal act or otherwise
14significantly further the health protection objectives of the federal
15and state acts.

16(3) To carry out a voluntary, incentive-based source water
17quality protection partnership pursuant to Section 1454 of the
18federal act.

19(c) The board shall conduct duly noticed public hearings, public
20workshops, focus groups, or meetings around the state to
21encourage the involvement and active input of public and affected
22parties in the development and periodic updating of the source
23water protection program adopted pursuant to this article. The
24notices shall contain basic information about the program in an
25 understandable format and shall notify widely representative
26groups, including, but not limited to, federal, state, and local
27governmental agencies, water utilities, public interest,
28environmental, and consumer groups, public health groups, land
29conservation groups, health care providers, groups representing
30vulnerable populations, groups representing business and
31agricultural interests, and members of the general public. In
32addition, the board shall convene a technical advisory committee
33and a citizens’ advisory committee made up of those representative
34groups to provide advice and direction on program development
35and implementation.

36(d) (1) The board shall submit a report to the Legislature every
37two years on its activities under this section. The report shall
38contain a description of each program for which funds have been
39set aside under this section, the effectiveness of each program in
P151  1carrying out the intent of the federal and state acts, and an
2accounting of the amount of set aside funds used.

3(2) A report submitted pursuant to this subdivision shall be
4submitted in compliance with Section 9795 of the Government
5Code.

6(e) This section shall become operative on July 1, 2014, and is
7repealed as of January 1 of the next calendar year occurring after
8the board provides notice to the Legislature and the Secretary of
9State and posts notice on its Internet Web site that the board has
10adopted a policy handbook pursuant to Section 116760.43.

end insert
11begin insert

begin insertSEC. 125.end insert  

end insert

begin insertSection 116762.60 is added to the end insertbegin insertHealth and Safety
12Code
end insert
begin insert, to read:end insert

begin insert
13

begin insert116762.60.end insert  

(a) The board shall, contingent upon receiving
14federal capitalization grant funds, develop and implement a
15program to protect sources of drinking water. In carrying out this
16program, the board shall coordinate with local, state, and federal
17agencies that have public health and environmental management
18programs to ensure an effective implementation of the program
19while avoiding duplication of effort and reducing program costs.
20The program shall include all of the following:

21(1) A source water assessment program to delineate and assess
22the drinking water supplies of public drinking water systems
23pursuant to Section 1453 of the federal act.

24(2) A wellhead protection program to protect drinking water
25wells from contamination pursuant to Section 1428 of the federal
26act.

27(3) Pursuant to Section 1452(k) of the federal act, the board
28shall set aside federal capitalization grant funds sufficient to carry
29out paragraphs (1) and (2).

30(b) The board shall set aside federal capitalization grant funds
31to provide assistance to water systems pursuant to Section 1452(k)
32of the federal act for the following source water protection
33activities, to the extent that those activities are proposed:

34(1) To acquire land or a conservation easement if the purpose
35of the acquisition is to protect the source water of the system from
36contamination and to ensure compliance with primary drinking
37water regulations.

38(2) To implement local, voluntary source water protection
39measures to protect source water in areas delineated pursuant to
40Section 1453 of the federal act, in order to facilitate compliance
P152  1with primary drinking water regulations applicable to the water
2system under Section 1412 of the federal act or otherwise
3significantly further the health protection objectives of the federal
4and state acts.

5(3) To carry out a voluntary, incentive-based source water
6quality protection partnership pursuant to Section 1454 of the
7federal act.

8(c) The board shall post a report to its Internet Web site, every
9two years, on its activities under this section. The report shall
10contain a description of each program for which funds have been
11set aside under this section, the effectiveness of each program in
12carrying out the intent of the federal and state acts, and an
13accounting of the amount of set aside funds used.

14(d) This section shall become operative on January 1 of the next
15calendar year occurring after the board provides notice to the
16Legislature and the Secretary of State and posts notice on its
17Internet Web site that the board has adopted a policy handbook
18pursuant to Section 116760.43.

end insert
19begin insert

begin insertSEC. 126.end insert  

end insert

begin insertSection 131110 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
20amended to read:end insert

21

131110.  

begin insert(a)end insertbegin insertend insertThe department shall maintain a program of
22Drinking Water and Environmental Management.

begin insert

23(b) This section shall become inoperative on July 1, 2014, and,
24as of January 1, 2015, is repealed, unless a later enacted statute,
25that becomes operative on or before January 1, 2015, deletes or
26extends the dates on which it becomes inoperative and is repealed.

end insert
27begin insert

begin insertSEC. 127.end insert  

end insert

begin insertSection 131110 is added to the end insertbegin insertHealth and Safety
28Code
end insert
begin insert, to read:end insert

begin insert
29

begin insert131110.end insert  

(a) The department shall maintain a program of
30Environmental Management.

31(b) This section shall become operative on July 1, 2014.

end insert
32begin insert

begin insertSEC. 128.end insert  

end insert

begin insertSection 541.5 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
33amended to read:end insert

34

541.5.  

(a) The department shall not close, or propose to close,
35a state park in the 2012-13 or 2013-14 fiscal year. The commission
36and the department shall recommend all necessary steps to establish
37a sustainable funding strategy for the department to the Legislature
38on or before January 1, 2015.

39(b) There is hereby appropriated twenty million five hundred
40thousand dollars ($20,500,000) to the department from the State
P153  1Parks and Recreation Fund, which shall be available for
2encumbrancebegin delete for the 2012-13 and 2013-14 fiscal years,end deletebegin insert until June
330, 2016, and for liquidation until June 30, 2018,end insert
to be expended
4as follows:

5(1) Ten million dollars ($10,000,000) shall be available to
6provide for matching funds pursuant to subdivision (c).

7(2) Ten million dollars ($10,000,000) shall be available for the
8department to direct funds to parks that remain at risk of closure
9or that will keep parks open during the 2012-13begin delete and 2013-14 fiscal
10years.end delete
begin insert to 2015-16 fiscal years, inclusive.end insert Priority may be given to
11parks subject to a donor or operating agreement or other contractual
12arrangement with the department.

13(3) Up to five hundred thousand dollars ($500,000) shall be
14available for the department to pay for ongoing audits and
15investigations as directed by the Joint Legislative Audit Committee,
16the office of the Attorney General, the Department of Finance, or
17other state agency.

18(c) The department shall match on a dollar-for-dollar basis all
19financial contributions contributed by a donor pursuant to an
20agreement for the 2012-13 fiscal year for which the department
21received funds as of July 31, 2013, and for agreements entered
22into in the 2013-14 fiscal year. These matching funds shall be
23used exclusively in the park unit subject to those agreements.

24(d) The department shall notify the Joint Legislative Budget
25Committee in writing not less than 30 daysbegin delete prior toend deletebegin insert beforeend insert the
26expenditure of funds under this section of the funding that shall
27be expended, the manner of the expenditure, and the recipient of
28the expenditure.

29(e) The prohibitionbegin delete to close, or propose to close,end deletebegin insert on the closure
30or proposed closure ofend insert
a state park in the 2012-13 or 2013-14
31fiscal year, pursuant to paragraph (a), does not limit or affect the
32department’s authority to enter into an operating agreement,
33pursuant to Section 5080.42, during the 2012-13 or 2013-14 fiscal
34year, for purposes of the operation of the entirety of a state park
35during the 2012-13 or 2013-14 fiscal year.

36begin insert

begin insertSEC. 129.end insert  

end insert

begin insertSection 2705 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
37amended to read:end insert

38

2705.  

(a) A city, county, and city and county shall collect a
39fee from each applicant for a building permit. Each fee shall be
40equal to a specific amount of the proposed building construction
P154  1for which the building permit is issued as determined by the local
2building officials. The fee amount shall be assessed in the following
3way:

4(1) Group R occupancies, as defined in the California Building
5Code (Part 2 of Title 24 of the California Code of Regulations),
6one to three stories in height, except hotels and motels, shall be
7assessed at the rate ofbegin delete tenend deletebegin insert thirteenend insert dollarsbegin delete ($10)end deletebegin insert ($13)end insert per one
8hundred thousand dollars ($100,000), with appropriate fractions
9thereof.

10(2) All other buildings shall be assessed at the rate ofbegin delete twenty-oneend delete
11begin insert twenty-eightend insert dollarsbegin delete ($21)end deletebegin insert ($28)end insert per one hundred thousand dollars
12($100,000), with appropriate fractions thereof.

13(3) The fee shall be the amount assessed under paragraph (1)
14or (2), depending on building type, or fifty cents ($0.50), whichever
15is the higher.

16(b) (1) In lieu of the requirements of subdivision (a), a city,
17county, and city and county may elect to include a rate ofbegin delete tenend delete
18begin insert thirteenend insert dollarsbegin delete ($10)end deletebegin insert ($13)end insert per one hundred thousand dollars
19($100,000), with appropriate fractions thereof, in its basic building
20permit fee for any Group R occupancy defined in paragraph (1)
21of subdivision (a), and a rate ofbegin delete twenty-oneend deletebegin insert twenty-eightend insert dollars
22begin delete ($21)end deletebegin insert ($28)end insert per one hundred thousand dollars ($100,000), with
23appropriate fractions thereof, for all other building types. A city,
24county, and city and county electing to collect the fee pursuant to
25this subdivision need not segregate the fees in a fund separate from
26any fund into which basic building permit fees are deposited.

27(2) “Building,” for the purpose of this chapter, is any structure
28built for the support, shelter, or enclosure of persons, animals,
29chattels, or property of any kind.

30(c) (1) A city, county, and city and county may retain up to 5
31percent of the total amount it collects under subdivision (a) or (b)
32for data utilization, for seismic education incorporating data
33interpretations from data of the strong-motion instrumentation
34program and the seismic hazards mapping program, and, in
35accordance with paragraph (2), for improving the preparation for
36damage assessment after strong seismic motion events.

37(2) A city, county, and city and county may use any funds
38retained pursuant to this subdivision to improve the preparation
39for damage assessment in its jurisdiction only after it provides the
40Department of Conservation with information indicating to the
P155  1department that data utilization and seismic education activities
2have been adequately funded.

3(d) Funds collected pursuant to subdivisions (a) and (b), less
4the amount retained pursuant to subdivision (c), shall be deposited
5in the Strong-Motion Instrumentation and Seismic Hazards
6Mapping Fund, as created by Section 2699.5 to be used exclusively
7for purposes of this chapterbegin insert, Chapter 7.5 (commencing with Section
82621),end insert
and Chapter 7.8 (commencing with Section 2690).

9begin insert

begin insertSEC. 130.end insert  

end insert

begin insertSection 3160 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
10amended to read:end insert

11

3160.  

(a) On or before January 1, 2015, the Secretary of the
12Natural Resources Agency shall cause to be conducted, and
13completed, an independent scientific study on well stimulation
14treatments, including, but not limited to, hydraulic fracturing and
15acid well stimulation treatments. The scientific study shall evaluate
16the hazards and risks and potential hazards and risks that well
17stimulation treatments pose to natural resources and public,
18occupational, and environmental health and safety. The scientific
19study shall do all of the following:

20(1) Follow the well-established standard protocols of the
21scientific profession, including, but not limited to, the use of
22recognized experts, peer review, and publication.

23(2) Identify areas with existing and potential conventional and
24unconventional oil and gas reserves where well stimulation
25treatments are likely to spur or enable oil and gas exploration and
26production.

27(3) (A) Evaluate all aspects and effects of well stimulation
28treatments, including, but not limited to, the well stimulation
29treatment, additive and water transportation to and from the well
30site, mixing and handling of the well stimulation treatment fluids
31and additives onsite, the use and potential for use of nontoxic
32additives and the use or reuse of treated or produced water in well
33stimulation treatment fluids,begin insert andend insert flowback fluids andbegin insert theend insert handling,
34treatment, and disposal of flowback fluids and other materials, if
35any, generated by the treatment. Specifically, the potential for the
36use of recycled water in well stimulation treatments, including
37appropriate water quality requirements and available treatment
38technologies, shall be evaluated. Well stimulation treatments
39include, but are not limited to, hydraulic fracturing and acid well
40stimulation treatments.

P156  1(B) Review and evaluate acid matrix stimulation treatments,
2including the range of acid volumes applied per treated foot and
3total acid volumes used in treatments, types of acids, acid
4concentration, and other chemicals used in the treatments.

5(4) Consider, at a minimum, atmospheric emissions, including
6potential greenhouse gas emissions, the potential degradation of
7air quality, potential impacts on wildlife, native plants, and habitat,
8 including habitat fragmentation, potential water and surface
9contamination, potential noise pollution, induced seismicity, and
10the ultimate disposition, transport, transformation, and toxicology
11of well stimulation treatments, including acid well stimulation
12fluids, hydraulic fracturing fluids, and waste hydraulic fracturing
13fluids and acid well stimulation in the environment.

14(5) Identify and evaluate the geologic features present in the
15vicinity of a well, including the well bore, that should be taken
16into consideration in the design of a proposed well stimulation
17treatment.

18(6) Include a hazard assessment and risk analysis addressing
19occupational and environmental exposures to well stimulation
20treatments, including hydraulic fracturing treatments, hydraulic
21fracturing treatment-related processes, acid well stimulation
22treatments, acid well stimulation treatment-related processes, and
23the corresponding impacts on public health and safety with the
24participation of the Office of Environmental Health Hazard
25Assessment.

26(7) Clearly identify where additional information is necessary
27to inform and improve the analyses.

28(b) (1) (A) On or before January 1, 2015, the division, in
29consultation with the Department of Toxic Substances Control,
30the State Air Resources Board, the State Water Resources Control
31Board, the Department of Resources Recycling and Recovery, and
32any local air districts and regional water quality control boards in
33areas where well stimulation treatments, including acid well
34stimulation treatments and hydraulic fracturingbegin delete treatmentsend delete
35begin insert treatments,end insert may occur, shall adopt rules and regulations specific
36to well stimulation treatments. The rules and regulations shall
37include, but are not limited to, revisions, as needed, to the rules
38and regulations governing construction of wells and well casings
39to ensure integrity of wells, well casings, and the geologic and
40hydrologic isolation of the oil and gas formation during and
P157  1following well stimulation treatments, and full disclosure of the
2composition and disposition of well stimulation fluids, including,
3but not limited to, hydraulic fracturing fluids, acid well stimulation
4fluids, and flowback fluids.

5(B) The rules and regulations shall additionally include
6provisions for an independent entity or person to perform the
7notification requirements pursuant to paragraph (6) of subdivision
8(d), for the operator to provide for baseline and followup water
9testing upon request as specified in paragraph (7) of subdivision
10(d).

11(C) (i) In order to identify the acid matrix stimulation treatments
12that are subject to this section, the rules and regulations shall
13establish threshold values for acid volume applied per treated foot
14of any individual stage of the well or for total acid volume of the
15treatment, or both, based upon a quantitative assessment of the
16risks posed by acid matrix stimulation treatments that exceed the
17specified threshold value or values in order to prevent, as far as
18possible, damage to life, health, property, and natural resources
19pursuant to Section 3106.

20(ii) On or before January 1, 2020, the division shall review and
21evaluate the threshold values for acid volume applied per treated
22foot and total acid volume of the treatment, based upon data
23collected in the state, for acid matrix stimulation treatments. The
24division shall revise the values through the regulatory process, if
25necessary, based upon the best available scientific information,
26including the results of the independent scientific study pursuant
27to subparagraph (B) of paragraph (3) of subdivision (a).

28(2) Full disclosure of the composition and disposition of well
29stimulation fluids, including, but not limited to, hydraulic fracturing
30fluids and acid stimulation treatment fluids, shall, at a minimum,
31include:

32(A) The date of the well stimulation treatment.

33(B) A complete list of the names, Chemical Abstract Service
34(CAS) numbers, and maximum concentration, in percent by mass,
35of each and every chemical constituent of the well stimulation
36treatment fluids used. If a CAS number does not exist for a
37chemical constituent, the well owner or operator may provide
38another unique identifier, if available.

P158  1(C) The trade name, the supplier, concentration, and a brief
2description of the intended purpose of each additive contained in
3the well stimulation treatment fluid.

4(D) The total volume of base fluid used during the well
5stimulation treatment, and the identification of whether the base
6fluid is water suitable for irrigation or domestic purposes, water
7not suitable for irrigation or domestic purposes, or a fluid other
8than water.

9(E) The source, volume, and specific composition and
10disposition of all water, including, but not limited to, all water
11used as base fluid during the well stimulation treatment and
12recovered from the well following the well stimulation treatment
13that is not otherwise reported as produced water pursuant to Section
143227. Any repeated reuse of treated or untreated water for well
15stimulation treatments and well stimulation treatment-related
16activities shall be identified.

17(F) The specific composition and disposition of all well
18stimulation treatment fluids, including waste fluids, other than
19water.

20(G) Any radiological components or tracers injected into the
21well as part of, or in order to evaluate, the well stimulation
22treatment, a description of the recovery method, if any, for those
23components or tracers, the recovery rate, and specific disposal
24information for recovered components or tracers.

25(H) The radioactivity of the recovered well stimulation fluids.

26(I) The location of the portion of the well subject to the well
27stimulation treatment and the extent of the fracturing or other
28modification, if any, surrounding the well induced by the treatment.

29(c) (1) Through the consultation process described in paragraph
30(1) of subdivision (b), the division shall collaboratively identify
31and delineate the existing statutory authority and regulatory
32responsibility relating to well stimulation treatments and well
33stimulation treatment-related activities of the Department of Toxic
34Substances Control, the State Air Resources Board, any local air
35districts, the State Water Resources Control Board, the Department
36of Resources Recycling and Recovery, any regional water quality
37control board, and other public entities, as applicable. This shall
38specify how the respective authority, responsibility, and notification
39and reporting requirements associated with well stimulation
P159  1treatments and well stimulation treatment-related activities are
2divided among each public entity.

3(2) On or before January 1, 2015, the division shall enter into
4formal agreements with the Department of Toxic Substances
5Control, the State Air Resources Board, any local air districts where
6well stimulation treatments may occur, the State Water Resources
7Control Board, the Department of Resources Recycling and
8Recovery, and any regional water quality control board where well
9stimulation treatments may occur, clearly delineating respective
10authority, responsibility, and notification and reporting
11requirements associated with well stimulation treatments and well
12stimulation treatment-related activities, including air and water
13quality monitoring, in order to promote regulatory transparency
14and accountability.

15(3) The agreements under paragraph (2) shall specify the
16appropriate public entity responsible for air and water quality
17monitoring and the safe and lawful disposal of materials in
18landfills, include trade secret handling protocols, if necessary, and
19provide for ready public access to information related to well
20stimulation treatments and related activities.

21(4) Regulations, if necessary, shall be revised appropriately to
22incorporate the agreements under paragraph (2).

23(d) (1) Notwithstanding any other law or regulation, prior to
24performing a well stimulation treatment on a well, the operator
25shall apply for a permit to perform a well stimulation treatment
26with the supervisor or district deputy. The well stimulation
27treatment permit application shall contain the pertinent data the
28supervisor requires on printed forms supplied by the division or
29on other forms acceptable to the supervisor. The information
30provided in the well stimulation treatment permit application shall
31include, but is not limited to, the following:

32(A) The well identification number and location.

33(B) The time period during which the well stimulation treatment
34is planned to occur.

35(C) A water management plan that shall include all of the
36following:

37(i) An estimate of the amount of water to be used in the
38treatment. Estimates of water to be recycled following the well
39stimulation treatment may be included.

P160  1(ii) The anticipated source of the water to be used in the
2treatment.

3(iii) The disposal method identified for the recovered water in
4the flowback fluid from the treatment that is not produced water
5included in the statement pursuant to Section 3227.

6(D) A complete list of the names, Chemical Abstract Service
7(CAS) numbers, and estimated concentrations, in percent by mass,
8of each and every chemical constituent of the well stimulation
9fluids anticipated to be used in the treatment. If a CAS number
10does not exist for a chemical constituent, the well owner or operator
11may provide another unique identifier, if available.

12(E) The planned location of the well stimulation treatment on
13the well bore, the estimated length, height, and direction of the
14induced fractures or other planned modification, if any, and the
15 location of existing wells, including plugged and abandoned wells,
16that may be impacted by these fractures and modifications.

17(F) A groundwater monitoring plan. Required groundwater
18monitoring in the vicinity of the well subject to the well stimulation
19treatment shall be satisfied by one of the following:

20(i) The well is located within the boundaries of an existing oil
21or gas field-specific or regional monitoring program developed
22pursuant to Section 10783 of the Water Code.

23(ii) The well is located within the boundaries of an existing oil
24or gas field-specific or regional monitoring program developed
25and implemented by the well owner or operator meeting the model
26criteria established pursuant to Section 10783 of the Water Code.

27(iii) Through a well-specific monitoring plan implemented by
28the owner or operator meeting the model criteria established
29pursuant to Section 10783 of the Water Code, and submitted to
30the appropriate regional water board for review.

31(G) The estimated amount of treatment-generated waste
32 materials that are not reported in subparagraph (C) and an identified
33disposal method for the waste materials.

34(2) (A) At the supervisor’s discretion, and if applied for
35concurrently, the well stimulation treatment permit described in
36this section may be combined with the well drilling and related
37operation notice of intent required pursuant to Section 3203 into
38a single combined authorization. The portion of the combined
39authorization applicable to well stimulation shall meet all of the
P161  1requirements of a well stimulation treatment permit pursuant to
2this section.

begin delete

3(B) Where the supervisor determines that the activities proposed
4in the well stimulation treatment permit or the combined
5authorization have met all of the requirements of Division 13
6(commencing with Section 21000), and have been fully described,
7analyzed, evaluated, and mitigated, no additional review or
8mitigation shall be required.

end delete
begin delete

9(C)

end delete

10begin insert(B)end insert The time period available for approvalbegin delete of the portionend delete of the
11combined authorization applicable to well stimulation is subject
12to the terms of this section, and not Section 3203.

13(3) (A) The supervisor or district deputy shall review the well
14stimulation treatment permit application and may approve the
15permit if the application is complete. An incomplete application
16shall not be approved.

17(B) A well stimulation treatment or repeat well stimulation
18treatment shall not be performed on any well without a valid permit
19that the supervisor or district deputy has approved.

20(C) In considering the permit application, the supervisor shall
21evaluate the quantifiable risk of the well stimulation treatment.

begin insert

22(D) In the absence of state implementation of a regional
23groundwater monitoring program pursuant to paragraph (1) of
24subdivision (h) of Section 10783 of the Water Code, the supervisor
25or district deputy may approve a permit application for well
26stimulation treatment pursuant to subparagraph (A) prior to the
27approval by the State Water Resources Control Board or a regional
28water quality control board of an area-specific groundwater
29monitoring program developed by an owner or operator pursuant
30to paragraph (2) of subdivision (h) of Section 10783 of the Water
31Code, but the well stimulation treatment shall not commence until
32the state board or the regional board approves the area-specific
33groundwater monitoring program.

end insert

34(4) The well stimulation treatment permit shall expire one year
35from the date that the permit is issued.

36(5) Within five business days of issuing a permit to perform a
37well stimulation treatment, the division shall provide a copy of the
38permit to the appropriate regional water quality control board or
39boards and to the local planning entity where the well, including
40its subsurface portion, is located. The division shall also post the
P162  1permit on the publicly accessible portion of its Internet Web site
2within five business days of issuing a permit.

3(6) (A) It is the policy of the state that a copy of the approved
4well stimulation treatment permit and information on the available
5water sampling and testing be provided to every tenant of the
6surface property and every surface property owner or authorized
7agent of that owner whose property line location is one of the
8following:

9(i) Within a 1,500 foot radius of the wellhead.

10(ii) Within 500 feet from the horizontal projection of all
11subsurface portions of the designated well to the surface.

12(B) (i) The well owner or operator shall identify the area
13requiring notification and shall contract with an independent entity
14or person who is responsible for, and shall perform, the notification
15required pursuant to subparagraph (A).

16(ii) The independent entity or person shall identify the
17individuals notified, the method of notification, the date of the
18 notification, a list of those notified, and shall provide a list of this
19information to the division.

20(iii) The performance of the independent entity or persons shall
21be subject to review and audit by the division.

22(C) A well stimulation treatment shall not commence before 30
23calendar days after the permit copies pursuant to subparagraph (A)
24are provided.

25(7) (A) A property owner notified pursuant to paragraph (6)
26may request water quality sampling and testing from a designated
27qualified contractor on any water well suitable for drinking or
28irrigation purposes and on any surface water suitable for drinking
29or irrigation purposes as follows:

30(i) Baseline measurements prior to the commencement of the
31well stimulation treatment.

32(ii) Followup measurements after the well stimulation treatment
33on the same schedule as the pressure testing of the well casing of
34the treated well.

35(B) The State Water Resources Control Board shall designate
36one or more qualified independent third-party contractor or
37contractors that adhere to board-specified standards and protocols
38to perform the water sampling and testing. The well owner or
39operator shall pay for the sampling and testing. The sampling and
40testing performed shall be subject to audit and review by the State
P163  1Water Resources Control Board or applicable regional water quality
2control board, as appropriate.

3(C) The results of the water testing shall be provided to the
4division, appropriate regional water board, and the property owner
5or authorized agent. A tenant notified pursuant to paragraph (6)
6shall receive information on the results of the water testing to the
7extent authorized by his or her lease and, where the tenant has
8lawful use of the ground or surface water identified in subparagraph
9(A), the tenant may independently contract for similar groundwater
10or surface water testing.

11(8) The division shall retain a list of the entities and property
12owners notified pursuant to paragraphs (5) and (6).

13(9) The operator shall provide notice to the division at least 72
14hours prior to the actual start of the well stimulation treatment in
15order for the division to witness the treatment.

16(e) The Secretary of the Natural Resources Agency shall notify
17the Joint Legislative Budget Committee and the chairs of the
18Assembly Natural Resources, Senate Environmental Quality, and
19 Senate Natural Resources and Water Committees on the progress
20of the independent scientific study on well stimulation and related
21activities. The first progress report shall be provided to the
22begin delete Legislatureend deletebegin insert committeesend insert on or before April 1, 2014, and progress
23reports shall continue every four months thereafter until the
24independent study is completed, including a peer review of the
25study by independent scientific experts.

26(f) If a well stimulation treatment is performed on a well, a
27supplier that performs any part of the stimulation or provides
28additives directly to the operator for a well stimulation treatment
29shall furnish the operator with information suitable for public
30disclosure needed for the operator to comply with subdivision (g).
31This information shall be provided as soon as possible but no later
32than 30 days following the conclusion of the well stimulation
33treatment.

34(g) (1) Within 60 days following cessation of a well stimulation
35treatment on a well, the operator shall post or cause to have posted
36to an Internet Web site designated or maintained by the division
37and accessible to the public, all of the well stimulation fluid
38composition and disposition information required to be collected
39pursuant to rules and regulations adopted under subdivision (b),
40including well identification number and location. This shall
P164  1include the collected water quality data, which the operator shall
2report electronically to the State Water Resources Control Board.

3(2) (A) The division shall commence the process to develop
4an Internet Web site for operators to report the information required
5under this section. The Internet Web site shall be capable of
6organizing the reported information in a format, such as a
7spreadsheet, that allows the public to easily search and aggregate,
8to the extent practicable, each type of information required to be
9collected pursuant to subdivision (b) using search functions on
10that Internet Web site. The Internet Web site shall be functional
11within two years of the Department of Technology’s approval of
12a Feasibility Study Report or appropriation authority to fund the
13development of the Internet Web site, whichever occurs latest, but
14no later than January 1, 2016.

15(B) The division may direct reporting to an alternative Internet
16Web site developed by the Ground Water Protection Council and
17the Interstate Oil and Gas Compact Commission in the interim
18until such time as approval or appropriation authority pursuant to
19subparagraph (A) occur. Prior to the implementation of the
20division’s Internet Web site, the division shall obtain the data
21reported by operators to the alternative Internet Web site and make
22it available in an organized electronic format to the public no later
23than 15 days after it is reported to the alternativebegin insert Internetend insert Web
24site.

25(h) The operator is responsible for compliance with this section.

26(i) (1) All geologic features within a distance reflecting an
27appropriate safety factor of the fracture zone for well stimulation
28treatments that fracture the formation and that have the potential
29to either limit or facilitate the migration of fluids outside of the
30fracture zone shall be identified and added to the well history.
31Geologic features include seismic faults identified by the California
32Geologic Survey.

33(2) For the purposes of this section, the “fracture zone” is
34defined as the volume surrounding the well bore where fractures
35were created or enhanced by the well stimulation treatment. The
36safety factor shall be at least five and may vary depending upon
37 geologic knowledge.

38(3) The division shall review the geologic features important to
39assessing well stimulation treatments identified in the independent
40study pursuant to paragraph (5) of subdivision (a). Upon
P165  1completion of the review, the division shall revise the regulations
2governing the reporting of geologic features pursuant to this
3subdivision accordingly.

4(j) (1) Public disclosure of well stimulation treatment fluid
5information claimed to contain trade secrets is governed by Section
61060 of the Evidence Code, or the Uniform Trade Secrets Act
7(Title 5 (commencing with Section 3426) of Part 1 of Division 4
8of the Civil Code), and the California Public Records Act (Chapter
93.5 (commencing with Section 6250) of Division 7 of Title 1 of
10the Government Code).

11(2) Notwithstanding any other law or regulation, none of the
12following information shall be protected as a trade secret:

13(A) The identities of the chemical constituents of additives,
14including CAS identification numbers.

15(B) The concentrations of the additives in the well stimulation
16treatment fluids.

17(C) Any air or other pollution monitoring data.

18(D) Health and safety data associated with well stimulation
19treatment fluids.

20(E) The chemical composition of the flowback fluid.

21(3) If a trade secret claim is invalid or invalidated, the division
22shall release the information to the public by revising the
23information released pursuant to subdivision (g). The supplier shall
24notify the division of any change in status within 30 days.

25(4) (A) If a supplier believes that information regarding a
26chemical constituent of a well stimulation fluid is a trade secret,
27the supplier shall nevertheless disclose the information to the
28division in conjunction with a well stimulation treatment permit
29application, if not previously disclosed, within 30 days following
30cessation ofbegin insert aend insert well stimulation on a well, and shall notify the
31division in writing of that belief.

32(B) A trade secret claim shall not be made after initial disclosure
33of the information to the division.

34(C) To comply with the public disclosure requirements of this
35section, the supplier shall indicate where trade secret information
36has been withheld and provide substitute information for public
37disclosure. The substitute information shall be a list, in any order,
38of the chemical constituents of the additive, including CAS
39identification numbers. The division shall review and approve the
40supplied substitute information.

P166  1(D) This subdivision does not permit a supplier to refuse to
2disclose the information required pursuant to this section to the
3division.

4(5) In order to substantiate the trade secret claim, the supplier
5shall provide information to the division that shows all of the
6following:

7(A) The extent to which the trade secret information is known
8by the supplier’sbegin delete employees,end deletebegin insert employees andend insert others involved in the
9supplier’s business and outside the supplier’s business.

10(B) The measures taken by the supplier to guard the secrecy of
11the trade secret information.

12(C) The value of the trade secret information to the supplier and
13its competitors.

14(D) The amount of effort or money the supplier expended
15developing the trade secret information and the ease or difficulty
16with which the trade secret information could be acquired or
17duplicated by others.

18(6) If the division determines that the information provided in
19support of a request for trade secret protection pursuant to
20paragraph (5) is incomplete, the division shall notify the supplier
21and the supplier shall have 30 days to complete the submission.
22An incomplete submission does not meet the substantive criteria
23for trade secret designation.

24(7) If the division determines that the information provided in
25support of a request for trade secret protection does not meet the
26substantive criteria for trade secret designation, the department
27shall notify the supplier by certified mail of its determination. The
28division shall release the information to the public, but not earlier
29than 60 days after the date of mailing the determination, unless,
30prior to the expiration of the 60-day period, the supplier obtains
31an action in an appropriate court for a declaratory judgment that
32the information is subject to protection or for a preliminary
33injunction prohibiting disclosure of the information to the public
34and provides notice to the division of the court order.

35(8) The supplier is not required to disclose trade secret
36 information to the operator.

37(9) Upon receipt of a request for the release of trade secret
38information to the public, the following procedure applies:

39(A) The division shall notify the supplier of the request in
40writing by certified mail, return receipt requested.

P167  1(B) The division shall release the information to the public, but
2not earlier than 60 days after the date of mailing the notice of the
3request for information, unless, prior to the expiration of the 60-day
4period, the supplier obtains an action in an appropriate court for a
5declaratory judgment that the information is subject to protection
6or for a preliminary injunction prohibiting disclosure of the
7information to the public and provides notice to the division of
8that action.

9(10) The division shall develop a timely procedure to provide
10trade secret information in the following circumstances:

11(A) To an officer or employee of the division, the state, local
12governments, including, but not limited to, local air districts, or
13the United States, in connection with the official duties of that
14officer or employee, to a health professional under any law for the
15protection of health, or to contractors with the division or other
16government entities and their employees if, in the opinion of the
17division, disclosure is necessary and required for the satisfactory
18performance of a contract, for performance of work, or to protect
19health and safety.

20(B) To a health professional in the event of an emergency or to
21diagnose or treat a patient.

22(C) In order to protect public health, to any health professional,
23 toxicologist, or epidemiologist who is employed in the field of
24public health and who provides a written statement of need. The
25written statement of need shall include the public health purposes
26of the disclosure and shall explain the reason the disclosure of the
27specific chemical and its concentration is required.

28(D) A health professional may share trade secret information
29with other persons as may be professionally necessary, in order to
30diagnose or treat a patient, including, but not limited to, the patient
31and other health professionals, subject to state and federal laws
32restricting disclosure of medical records including, but not limited
33to, Chapter 2 (commencing with Section 56.10) of Part 2.6 of
34Division 1 of the Civil Code.

35(E) For purposes of this paragraph, “health professional” means
36any person licensed or certified pursuant to Division 2
37(commencing with Section 500) of the Business and Professions
38Code, the Osteopathic Initiative Act, the Chiropractic Initiative
39Act, or the Emergency Medical Services System and the
P168  1Prehospital Emergency Medical Care Personnel Act (Division 2.5
2(commencing with Section 1797) of the Health and Safety Code).

3(F) A person in possession of, or access to, confidential trade
4secret information pursuant to the provisions of this subdivision
5may disclose this information to any person who is authorized to
6receive it. A written confidentiality agreement shall not be required.

7(k) A well granted confidential status pursuant to Section 3234
8shall not be required to disclose well stimulation treatment fluid
9information pursuant to subdivision (g) until the confidential status
10of the well ceases. Notwithstanding the confidential status of a
11well, it is public information that a well will be or has been subject
12to a well stimulation treatment.

13(l) The division shall perform random periodic spot check
14inspections to ensure that the information provided on well
15stimulation treatments is accurately reported, including that the
16estimates provided prior to the commencement of the well
17stimulation treatment are reasonably consistent with the well
18history.

19(m) Where the division shares jurisdiction over a well or the
20well stimulation treatment on a well with a federal entity, the
21division’s rules and regulations shall apply in addition to all
22applicable federal laws and regulations.

23(n) This article does not relieve the division or any other agency
24from complying with any other provision of existing laws,
25regulations, and orders.

26(o) Well stimulation treatments used for routine maintenance
27of wells associated with underground storage facilities where
28natural gas is injected into and withdrawn from depleted or partially
29depleted oil or gas reservoirs pursuant to subdivision (a) of Section
303403.5 are not subject to this section.

31begin insert

begin insertSEC. 131.end insert  

end insert

begin insertSection 3161 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
32amended to read:end insert

33

3161.  

(a) The division shall finalizebegin delete and implementend delete the
34regulations governing this article on or before January 1, 2015.
35begin insert Notwithstanding any other laws, the regulations shall become
36effective on July 1, 2015.end insert

37(b) The division shall allow, until regulationsbegin delete governing this
38articleend delete
begin insert specified in subdivision (b) of Section 3160end insert are finalized
39and implemented, and upon written notification by an operator,
P169  1all of the activities defined in Section 3157, provided all of the
2following conditions are met:

3(1) The owner or operator certifies compliance withbegin insert paragraph
4(2) ofend insert
subdivision (b) of,begin delete subparagraphs (A) to (F), inclusive, of
5paragraph (1) andend delete
paragraphsbegin delete (6)end deletebegin insert (1), (6),end insert and (7) of subdivision
6(d) of, andbegin insert paragraph (1) ofend insert subdivision (g) of, Section 3160.

7(2) The owner or operatorbegin delete providesend deletebegin insert shall provideend insert a complete
8well history, incorporating the information required by Section
93160, to the division on or before March 1, 2015.

10(3) begin insert(A)end insertbegin insertend insertThe divisionbegin delete conductsend deletebegin insert commences the preparation ofend insert
11 an environmental impact report (EIR) pursuant to the California
12Environmental Quality Act (Division 13 (commencing with Section
1321000)),begin delete in orderend delete to provide the public with detailed information
14regarding any potential environmental impacts of well stimulation
15in the state.

begin delete

16(4)

end delete

17begin insert(B)end insert Any environmental review conducted by the division shall
18fully comply withbegin delete allend deletebegin insert bothend insert of the following requirements:

begin delete

19(A)

end delete

20begin insert(i)end insert The EIR shall be certified by the division as the lead agency,
21no later than July 1, 2015.

begin delete

22(B)

end delete

23begin insert(ii)end insert The EIR shall address the issue of activities that may be
24conducted as defined in Section 3157 and that may occur at oil
25wells in the state existing prior to, and after,begin delete the effective date of
26this section.end delete
begin insert January 1, 2014.end insert

27(C) begin deleteThe EIR shall not conflict with an EIR conducted by a local
28lead agency that is certified on or before July 1, 2015. Nothing in
29this section prohibits end delete
begin insertThis paragraph does not prohibit end inserta local lead
30agency from conducting its own EIR.

begin delete

31(5)

end delete

32begin insert(4)end insert The division ensures that all activities pursuant to this section
33fully conform with this article and other applicable provisions of
34law on or before December 31, 2015, through a permitting process.

begin delete

35(6)

end delete

36begin insert(c)end insert The division has the emergency regulatory authority to
37implement the purposes of this section.begin insert Notwithstanding Section
3811349.6 of the Government Code or other laws, an emergency
39regulation adopted pursuant to this subdivision implementing
40subdivision (b) shall be filed with, but shall not be disapproved
P170  1by, the Office of Administrative Law, and shall remain in effect
2until revised by the director or July 1, 2015, whichever is earlier.end insert

begin insert

3(d) This section does not limit the authority of the division to
4take appropriate action pursuant to subdivision (a) of Section
53106.

end insert
6begin insert

begin insertSEC. 132.end insert  

end insert

begin insertSection 4629.5 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
7amended to read:end insert

8

4629.5.  

(a) (1) begin deleteOn and after January 1, 2013, there end deletebegin insertThere end insertis
9hereby imposed an assessment on a person who purchases a lumber
10product or an engineered wood product for the storage, use, or
11other consumption in this state, at the rate of 1 percent of the sales
12price.

13(2) A retailer shall charge the person the amount of the
14assessment as a charge that is separate from, and not included in,
15any other fee, charge, or other amount paid by the purchaser.

16(3) The retailer shall collect the assessment from the person at
17the time of sale, and may retainbegin delete an amount equal to the amount of
18reimbursement, as determined by the State Board of Equalization
19pursuant to regulations,end delete
begin insert reimbursement pursuant to Sections 2000
20and 2001 of Title 18 of the California Code of Regulations, as
21approved by the State Board of Equalization at its September 10,
222013, meeting,end insert
forbegin delete anyend deletebegin insert startupend insert costs associated with the collection
23of the assessment, to be taken on the first return or next consecutive
24returns until the entire reimbursement amount is retained.begin delete For
25purposes of this paragraph, the State Board of Equalization may
26adopt emergency regulations pursuant to Section 11346.1 of the
27Government Code. The adoption of any regulation pursuant to this
28paragraph shall be deemed to be an emergency and necessary for
29the immediate preservation of the public peace, health, and safety,
30and general welfare.end delete

31(b) The retailer shall separately state the amount of the
32assessment imposed under this section on the sales receipt given
33by the retailer to the person at the time of sale.

34(c) The State Board of Equalization shall administer and collect
35the assessment imposed by this section pursuant to the Fee
36Collection Procedures Law (Part 30 (commencing with Section
3755001) of Division 2 of the Revenue and Taxation Code) with
38those changes as may be necessary to conform tobegin delete the provisions
39ofend delete
this article. For purposes of this section, the references in the
P171  1Fee Collection Procedures Law to “fee” shall include the
2assessment imposed by this section.

3(d) (1) The assessment is required to be collected by a retailer
4and any amount unreturned to the person who paid an amount in
5excess of the assessment, but was collected from the person under
6the representation by the retailer that it was owed as an assessment,
7constitutes debts owed by the retailer to this state.

8(2) begin deleteEvery end deletebegin insertA end insertperson who purchases a lumber product or an
9engineered wood product for storage, use, or other consumption
10in this state is liable for the assessment until it has been paid to
11this state, except that payment to a retailer relieves the person from
12further liability for the assessment. Any assessment collected from
13a person that has not been remitted to the State Board of
14Equalization shall be a debt owed to the state by the retailer
15required to collect and remit the assessment.begin delete Nothing in this part
16shallend delete
begin insert This part does notend insert impose any obligation upon a retailer to
17take any legal action to enforce the collection of the assessment
18imposed by this section.

19(e) Except as provided in paragraph (3) of subdivision (a), the
20State Board of Equalization may prescribe, adopt, and enforce
21regulations relating to the administration and enforcement of this
22section, including, but not limited to, collections, reporting, refunds,
23and appeals.

24(f) (1) The assessment imposed by this section is due and
25payable to the State Board of Equalization quarterly on or before
26the last day of the month next succeeding each quarterly period.

27(2) On or before the last day of the month following each
28quarterly period, a return for the preceding quarterly period shall
29be filed with the State Board of Equalization using electronic
30media, in the form prescribed by the State Board of Equalization.
31Returns shall be authenticated in a form or pursuant to methods,
32as prescribed by the State Board of Equalization.

33(g) For purposes of this section, all of the following shall apply:

34(1) “Purchase” has the same meaning as that term is defined in
35Section 6010 of the Revenue and Taxation Code.

36(2) “Retailer” has the same meaning as that term is defined in
37Section 6015 of the Revenue and Taxation Code.

38(3) “Sales price” has the same meaning as that term is defined
39in Section 6011 of the Revenue and Taxation Code.

P172  1(4) “Storage” has the same meaning as that term is defined in
2Section 6008 of the Revenue and Taxation Code.

3(5) “Use” has the same meaning as that term is defined in
4Section 6009 of the Revenue and Taxation Code.

5(h) (1) begin deleteEvery end deletebegin insertA end insertperson required to pay the assessment imposed
6under this article shall register with the State Board of Equalization.
7Every application for registration shall be made in a form
8prescribed by the State Board of Equalization and shall set forth
9the name under which the applicant transacts or intends to transact
10business, the location ofbegin delete his or herend deletebegin insert the person’send insert place or places of
11business, andbegin delete suchend deletebegin insert anyend insert other informationbegin delete asend deletebegin insert thatend insert the State Board
12of Equalization may require. An application for registration shall
13be authenticated in a form or pursuant to methods as may be
14prescribed by the State Board of Equalization.

15(2) An application for registration filed pursuant to this section
16may be filed using electronic media as prescribed by the State
17Board of Equalization.

18(3) Electronic media includes, but is not limited to, computer
19modem, magnetic media, optical disc, facsimile machine, or
20telephone.

21begin insert

begin insertSEC. 133.end insert  

end insert

begin insertSection 4629.6 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
22amended to read:end insert

23

4629.6.  

Moneys deposited in the fund shall, upon appropriation
24by the Legislature, only be expended for the following purposes:

25(a) To reimburse the State Board of Equalization for its
26administrative costs associated with the administration, collection,
27audit, and issuance of refunds related to the lumber products and
28engineered wood assessment established pursuant to Section
294629.5.

30(b) To pay refunds issued pursuant to Part 30 (commencing
31with Section 55001) of Division 2 of the Revenue and Taxation
32Code.

33(c) To support the activities and costs of the department, the
34Department of Conservation, the Department of Fish andbegin delete Game,end delete
35begin insert Wildlife,end insert the State Water Resources Control Board, and regional
36water quality control boards associated with the review of projects
37or permits necessary to conduct timber operations. On or after July
381, 2013, except for fees applicable for fire prevention or protection
39within state responsibility area classified lands or timber yield
40assessments, no currently authorized or required fees shall be
P173  1charged by the agencies listed in this subdivision for activities or
2costs associated with the review of a project, inspection and
3oversight of projects, and permits necessary to conduct timber
4operations of those departments and boards.

5(d) For transfer to the department’s Forest Improvement
6Program, upon appropriation by the Legislature, for forest resources
7improvement grants and projects administered by the department
8pursuant to Chapter 1 (commencing with Section 4790) and
9Chapter 2 (commencing with Section 4799.06) of Part 2 of Division
104.

11(e) To fund existing restoration grant programsbegin insert, with priority
12given to the Fisheries Restoration Grant Program administered
13by the Department of Fish and Wildlife and grant programs
14administered by state conservanciesend insert
.

begin insert

15(f) (1) As a loan to the Department of Fish and Wildlife for
16activities to address environmental damage occurring on forest
17lands resulting from marijuana cultivation. Not more than five
18hundred thousand dollars ($500,000) may be loaned from the fund
19in a fiscal year pursuant to this paragraph. This paragraph shall
20become inoperative on July 1, 2017.

end insert
begin insert

21(2) Any funds deposited into the Timber Regulation and Forest
22Restoration Fund pursuant to subdivision (d) or (f) of Section
2312025 of the Fish and Game Code shall be credited toward loan
24repayment.

end insert
begin insert

25(3) Moneys from the General Fund shall not be used to repay
26a loan authorized pursuant to this subdivision.

end insert
begin delete

27(f)

end delete

28begin insert(g)end insert To the department, upon appropriation by the Legislature,
29for fuel treatment grants and projects pursuant to authorities under
30the Wildland Fire Protection and Resources Management Act of
311978 (Article 1 (commencing with Section 4461) of Chapter 7 of
32Part 2 of Division 4).

begin delete

33(g)

end delete

34begin insert(h)end insert To the department, upon appropriation by the Legislature,
35to provide grants to local agencies responsible for fire protection,
36qualified nonprofits, recognized tribes, local and state governments,
37and resources conservation districts, undertaken on a state
38responsibility area (SRA) or on wildlands not in an SRA that pose
39a threat to the SRA, to reduce the costs of wildland fire suppression,
40reduce greenhouse gas emissions, promote adaptation of forested
P174  1landscapes to changing climate, improve forest health, and protect
2homes and communities.

3begin insert

begin insertSEC. 134.end insert  

end insert

begin insertSection 4629.7 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
4amended to read:end insert

5

4629.7.  

All grants made pursuant to subdivisionsbegin delete (f)end deletebegin insert (g)end insert and
6begin delete (g)end deletebegin insert (h)end insert of Section 4629.6 shall fund activities that do any of the
7following, in order of priority:

8(a) Improve forest health.

9(b) Promote climate mitigation strategies included in the
10California Global Warming Solutions Act of 2006 (Division 25.5
11(commencing with Section 38500) of the Health and Safety Code)
12scoping plan for the forest sector, as adopted by the State Air
13Resources Control Board, or as amended through subsequent
14actions of that board.

15(c) Promote climate change adaptation strategies for the forest
16sector, as adopted by the Natural Resources Agency in the
17California Climate Adaptation Strategy.

18begin insert

begin insertSEC. 135.end insert  

end insert

begin insertSection 4629.8 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
19amended to read:end insert

20

4629.8.  

(a) Funds deposited in the Timber Regulation and
21Forest Restoration Fund shall be appropriated in accordance with
22the following priorities:

23(1) First priority shall be for funding associated with the
24administration and delivery of responsibilities identified in
25subdivisions (a) to (c), inclusive, of Section 4629.6.

26(2) Only after paragraph (1) is funded, the second priority shall
27be, if deposits are sufficient in future years to maintain the fund,
28by 2016, at a minimum reserve of four million dollars ($4,000,000),
29for use and appropriation by the Legislature in years during which
30revenues to the account are projected to fall short of the ongoing
31budget allocations for support of the activities identified in
32paragraph (1).

33(3) Only after paragraphs (1) and (2) are funded, the third
34priority shall be in support of activities designated in subdivisions
35begin delete (d) and (e)end deletebegin insert (d), (e), and (f)end insert of Section 4629.6.

36(4) Only after paragraphs (1), (2), and (3) are funded, the fourth
37priority shall be to support the activities designated in subdivisions
38begin delete (f)end deletebegin insert (g)end insert andbegin delete (g)end deletebegin insert (h)end insert of Section 4629.6.

P175  1(b) begin deleteNo funds shall end deletebegin insertFunds shall not end insertbe used to pay for or
2reimburse any requirements, including mitigation of a project
3proponent or applicant, as a condition of any permit.

4begin insert

begin insertSEC. 136.end insert  

end insert

begin insertSection 5009 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
5amended to read:end insert

6

5009.  

The Statebegin delete park contingent fundend deletebegin insert Park Contingent Fundend insert
7 is continued in existence. All moneys collected or received from
8begin delete gifts orend deletebegin insert contractual agreements, donations, gifts,end insert bequests, orbegin delete from
9municipal or countyend delete
begin insert local governmentend insert appropriationsbegin delete or donationsend delete
10 for improvements or additions to thebegin delete Stateend deletebegin insert stateend insert parkbegin delete systemend deletebegin insert system,end insert
11 shall be deposited in the Statebegin delete treasuryend deletebegin insert Treasuryend insert to the credit of
12the contingent fund. All moneysbegin delete soend delete deposited shall be used for the
13begin delete improvementend deletebegin insert improvement, maintenance, operation,end insert or
14administration ofbegin delete Stateend deletebegin insert stateend insert parks, or the acquisition of additional
15lands and properties for thebegin delete Stateend deletebegin insert stateend insert park system, in accordance
16with the terms of thebegin insert agreement, donation,end insert gift,begin delete bequest or
17municipal or countyend delete
begin insert bequest, or local governmentend insert appropriation
18begin delete or donationend delete from which the moneys are derived.

19begin insert

begin insertSEC. 137.end insert  

end insert

begin insertSection 5010.6 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
20amended to read:end insert

21

5010.6.  

(a) For purposes of this section, “subaccount” means
22the State Parks Revenue Incentive Subaccount created pursuant
23to this section.

24(b) The State Parks Revenue Incentive Subaccount is hereby
25created within the State Parks and Recreation Fund and the
26Controller shall annually transferbegin delete fifteen million three hundred
27forty thousand dollars ($15,340,000)end delete
begin insert four million three hundred
28forty thousand dollars ($4,340,000)end insert
from the State Parks and
29Recreation Fund to the subaccount.

30(c) Notwithstanding Section 13340 of the Government Code,
31the funds in the subaccount are hereby continuously appropriated
32to the departmentbegin delete to create incentivesend delete forbegin insert activities, programs, andend insert
33 projects, including, but not limited to, capital outlay projects, that
34are consistent with the mission of the department and thatbegin delete generate
35revenue, except the department shall not expend from the
36subaccount more than eleven million dollars ($11,000,000)
37annually pursuant to Section 5003.end delete
begin insert increase the department’s
38capacity to generate revenue and to implement the revenue
39generation program developed pursuant to Section 5010.7.
40Expenditures from the subaccount may include expenditures for
P176  1staffing entry points, including department employees, seasonal
2employees, state and local conservation corps, individuals qualified
3pursuant to Chapter 0908 of the Department Operations Manual,
4and employees of organizations with agreements with state parks
5pursuant to Sections 513, 5009.1, 5009.3, and 5080. Activities,
6programs, and projects funded by the subaccount shall each
7include all of the following:end insert

begin insert

8(1) A clear description of the proposed use of funds.

end insert
begin insert

9(2) A timeframe for implementation of the activity, program, or
10project.

end insert
begin insert

11(3) A projection of revenues, including annual income, fees,
12and projected usage rates.

end insert
begin insert

13(4) A projection of costs, including design, planning,
14construction, operation, staff, maintenance, marketing, and
15information technology.

end insert
begin insert

16(5) A market analysis demonstrating demand for the activity,
17project, or program.

end insert
begin insert

18(6) A projected rate of return on the investment.

end insert

19(d) The Office of State Audits and Evaluations shall review the
20begin delete activitiesend deletebegin insert activities, programs, and projectsend insert funded from the
21subaccount pursuant to subdivision (c) to ensure appropriate
22internal controls are in place. The department shall reimburse the
23Office of State Audits and Evaluations from the subaccount for
24any costs related to the review.

25(e) The revenue generated frombegin insert activities, programs, andend insert
26 projects funded by the subaccountbegin delete shall be deposited in the
27subaccount andend delete
are continuously appropriated for expenditure by
28the departmentbegin delete in accordance with the following:end deletebegin insert pursuant to
29subdivisions (c) and (d) of Section 5010.7.end insert

begin delete

30(1) At least 50 percent of the revenue generated shall be
31expended in the district of the department that earned that revenue,
32as an incentive for revenue generation.

33(2) The remaining revenue may be expended by the department
34pursuant to subdivision (c), including, but not limited to, for
35expenditure pursuant to Section 5003.

end delete

36(f) The funds in the subaccount shall be available for
37encumbrance and expenditure until June 30,begin delete 2014,end deletebegin insert 2019,end insert and for
38liquidation until June 30,begin delete 2016.end deletebegin insert 2021.end insert

39(g)  This section shall become inoperative on June 30,begin delete 2016,end delete
40begin insert 2021,end insert and, as of January 1,begin delete 2017,end deletebegin insert 2022,end insert is repealed, unless a later
P177  1enacted statute, that becomes operative on or before January 1,
2begin delete 2017,end deletebegin insert 2022,end insert deletes or extends the dates on which it becomes
3inoperative and is repealed.

4begin insert

begin insertSEC. 138.end insert  

end insert

begin insertSection 5010.6.5 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
5amended to read:end insert

6

5010.6.5.  

On July 1,begin delete 2016,end deletebegin insert 2021,end insert the Controller shall transfer
7any unexpended funds remaining in the State Parks Revenue
8Incentive Subaccount created pursuant to Section 5010.6 to the
9State Parks and Recreation Fund.

10begin insert

begin insertSEC. 139.end insert  

end insert

begin insertSection 5010.7 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
11amended to read:end insert

12

5010.7.  

(a) The department shall develop a revenue generation
13program as an essential component of a long-term sustainable park
14funding strategy. On or beforebegin delete October 1, 2012, the department
15shall assign a two-year revenue generation target to each district
16under the control of the department. The revenue target may be
17amended annually for subsequent years, beginning in the 2015-16
18fiscal year.end delete
begin insert July 1, 2014, and annually thereafter, the department
19shall assign a revenue generation target to each district under the
20control of the department.end insert
The department shall develop guidelines
21for districts to report the use of funds generated by the revenue
22 generation program, and shall post information and copies of the
23reports on its Internet Web site.

24(b) The California State Park Enterprise Fund is hereby created
25in the State Treasury as a working capital fund, and the revenue
26shall be available to the department upon appropriation by the
27begin delete Legislature, for the expenditures for the purposes specified in this
28sectionend delete
begin insert Legislature for capital outlay or support expenditures for
29revenue generating investments in state parks. These investments
30may include, but are not limited to, planning and implementation
31of a statewide electronic fee collection system that includes
32installation of modern fee collection equipment and technologies
33to enhance collection of state park users fees and that will enable
34park users to pay fees with commonly used forms of electronic
35fund transfers, including, but not limited to, credit and debit card
36transactions, and other park revenue generating projects,end insert
and shall
37be available for encumbrance and expenditure until June 30,begin delete 2014,end delete
38begin insert 2019,end insert and for liquidation until June 30,begin delete 2016.end deletebegin insert 2021.end insert

begin insert

P178  1(1) The department shall prepare guidelines for districts to
2apply for funds for capital projects that are consistent with this
3subdivision.

end insert
begin insert

4(2) The guidelines prepared pursuant to this paragraph shall
5require all of the following:

end insert
begin insert

6(A) A clear description of the proposed use of funds.

end insert
begin insert

7(B) A timeframe of implementation of the capital project.

end insert
begin insert

8(C) A projection of revenue, including annual income, fees, and
9projected usage rates.

end insert
begin insert

10(D) A projection of costs, including design, planning,
11construction, operation, staff, maintenance, marketing, and
12information technology.

end insert
begin insert

13(E) A market analysis demonstrating demand for the project.

end insert
begin insert

14(F) A projected rate of return on the investment.

end insert

15(c) Thebegin delete incrementalend delete revenue generated by the revenue generation
16program developed pursuant to subdivision (a) shall be deposited
17into the State Parks and Recreation Fund. Revenue identified as
18 being in excess of the revenue targets shall be transferred to the
19State Parks Revenue Incentive Subaccount, established pursuant
20to Section 5010.6, on or before June 1, annually.

21(d) Moneysbegin delete appropriated to the departmentend deletebegin insert transferred to the
22State Parks Revenue Incentive Subaccountend insert
pursuant to subdivision
23begin delete (b) and Section 5010.6end deletebegin insert (c)end insert shall be expended as follows:

24(1) (A) The department shall allocate 50 percent of the total
25amount of revenues deposited into the State Parks Revenue
26Incentive Subaccount pursuant to subdivision (c), generated by a
27park district to that district if the amount of revenues generated
28exceeds the targeted revenue amount prescribed in the revenue
29generation program. The revenues to be allocated to a park district
30that fails to achieve the revenue target shall remain in thebegin delete fund.end delete
31begin insert subaccount.end insert

32(B) With the approval of the director, each district shall use the
33funds it receivesbegin delete from the department from the revenue generation
34programend delete
begin insert pursuant to this sectionend insert to improve the parks in that
35district through revenue generation programs and projects and
36other activities that will assist in the district’s revenue generation
37activities, and the programs, projects, and other activities shall be
38consistent with the mission and purpose of each unit and with the
39plan developed for the unit pursuant to subdivision (a) of Section
405002.2.

P179  1(C) The department shall report to the Legislature, commencing
2on July 1, 2014, and annually on or before each July 1 thereafter,
3on the revenue distributed to each district pursuant to this section.

4(2) The department shall use 50 percent of the funds deposited
5into the State Parks Revenue Incentive Subaccount pursuant to
6subdivision (c) for the following purposes:

7(A) To fund the capital costs of construction and installation of
8new revenue and fee collection equipment and technologies and
9other physical upgrades to existing state park system lands and
10facilities.

11(B) For costs of restoration, rehabilitation, and improvement of
12the state park system and its natural, historical, and visitor-serving
13resources that enhance visitation and are designed to create
14opportunities to increase revenues.

15(C) For costs to the department to implement the action plan
16required to be developed by the department pursuant to Section
175019.92 of the Public Resources Code.

begin delete

18(D) To establish a revolving loan program pursuant to
19subdivision (e).

20(e) (1) The department shall establish a revolving loan program
21and prepare guidelines establishing a process for those districts
22that receive moneys under paragraph (1) of subdivision (d) to apply
23for funds that exceed the amount of funds provided to the districts
24pursuant to paragraph (1) of subdivision (d). It is the intent of the
25Legislature that the revolving loan program fund only those
26projects that will contribute to the success of the department’s
27revenue generation program and the continual growth of the fund
28over time. Districts may apply for funds for capital projects,
29personnel, and operations that are consistent with this subdivision,
30including the costs of preparing an application. The department
31shall provide an annual accounting to the Department of Finance
32and the relevant legislative committees of the use of those funds
33in accordance with the purposes outlined in Proposition 40 (the
34California Clean Water, Clean Air, Safe Neighborhood Parks, and
35Coastal Protection Bond Act of 2002 (Chapter 1.696 (commencing
36with Section 5096.600) of Division 5) and Proposition 84 (the Safe
37Drinking Water, Water Quality and Supply, Flood Control, River
38and Coastal Protection Bond Act of 2006 (Division 43
39(commencing with Section 75001)), voter-approved bond acts.

P180  1(2) The guidelines prepared pursuant to paragraph (1) shall
2require that applications for funding include all of the following:

3(A) A clear description of the proposed use of funds, including
4maps and other drawings, as applicable.

5(B) A market analysis demonstrating demand for the project or
6service.

7(C) The projected lifespan of the project, which must be at least
820 years for a proposed capital project.

9(D) A projection of revenues, including the specific assumptions
10for annual income, fees, occupancy rates, pricing, and other
11relevant criteria upon which the projection is based.

12(E) A projection of costs, including, but not limited to, design,
13planning, construction, operation, staff, maintenance, marketing,
14and information technology.

15(F) The timeframe for implementation, including all necessary
16reviews and permitting.

17(G) The projected net return on investment of the life of the
18project.

19(H) Provisions providing for mandatory reporting on the project
20by districts to the department.

21(f) The department shall rank all of the proposals and award
22loans for projects or other activities to districts based on the
23following criteria, as well as other considerations that the
24department considers relevant:

25(1) Return on investment.

26(2) Length of time for implementation.

27(3) Length of time for the project debt to be retired.

28(4) Percentage of total project costs paid by the district or by a
29source of matching funds.

30(5) Annual operating costs.

31(6) Capacity of project to improve services or park experiences,
32or both, for park visitors.

end delete
begin insert

33(D) Pursuant to subdivision (c) of Section 5010.6, for
34expenditures to support revenue generation projects that include,
35but are not limited to, staffing kiosks, campgrounds, and parking
36lots.

end insert
begin delete

37(g)

end delete

38begin insert(e)end insert The funds generated by the revenue generation program
39shall not be used by the department to expand the park system,
P181  1unless there is significant revenue generation potential from such
2an expansion.

begin delete

3(h)

end delete

4begin insert(f)end insert Notwithstanding Section 5009, moneys received by the
5department from private contributions and other public funding
6sources may also be deposited into the California State Park
7Enterprise Fundbegin insert and the State Parks Revenue Incentive Subaccountend insert
8 for use for the purposes of subdivision (c) and subdivision (d).

begin delete

9(i)

end delete

10begin insert(g)end insert The department shall provide all relevant information on its
11Internet Web site concerning howbegin delete the working capital funds are
12spent, including the guidelines and the department’s ranking criteria
13for each funded loan agreement.end delete
begin insert funds in the State Parks and
14Recreation Revenue Incentive Subaccount and the California State
15Park Enterprise Fund are spent.end insert

begin delete

16(j) A project agreement shall be negotiated between the
17department and a park unit and the total amount of requested
18project costs shall be allocated to the district as soon as is feasible
19when the agreement is finalized.

end delete
begin delete

20(k)

end delete

21begin insert(h)end insert The department may recoup its costs for implementing and
22administering the working capital from the fund.

23begin insert

begin insertSEC. 140.end insert  

end insert

begin insertArticle 1.5 (commencing with Section 5019.10) is
24added to Chapter 1 of Division 5 of the end insert
begin insertPublic Resources Codeend insertbegin insert,
25to read:end insert

begin insert

26 

27Article begin insert1.5.end insert  The Parks Project Revolving Fund
28

 

29

begin insert5019.10.end insert  

(a) The Parks Project Revolving Fund is hereby
30established in the State Treasury. Except as otherwise specified
31in this section, upon approval of the Department of Finance there
32shall be transferred to, or deposited in, the fund all money
33appropriated, contributed, or made available from any source,
34including sources other than state appropriations, for expenditure
35on work within the powers and duties of the department with
36respect to the construction, alteration, repair, and improvement
37of state park facilities, including, but not limited to, services, new
38construction, major construction and equipment, minor
39construction, maintenance, improvements, and equipment, and
40other building and improvement projects for which an
P182  1appropriation is made or, as to funds from sources other than state
2appropriations, as may be authorized by written agreement
3between the contributor or contributors of funds and the
4department and approved by the Department of Finance.

5(b) Money from state sources transferred to, or deposited in,
6the fund for major construction shall be limited to the amount
7necessary based on receipt of competitive bids. Money transferred
8for this purpose shall be upon the approval of the Department of
9Finance. Any amount available, in the state appropriation, that is
10in excess of the amount necessary based on receipt of competitive
11bids, shall be immediately transferred to the credit of the fund from
12which the appropriation was made. Money in the fund also may
13be expended, upon approval of the Department of Finance, to
14finance the cost of a construction project within the powers and
15duties of the department for which the federal government will
16contribute a partial cost thereof, if written evidence has been
17received from a federal agency indicating that money has been
18appropriated by Congress and the federal government, and that
19the federal government will pay to the state the amount specified
20upon the completion of construction of the project. The director
21may approve plans, specifications, and estimates of cost, and
22advertise for and receive bids on, those projects in anticipation of
23the receipt of the written evidence. Money transferred or deposited
24for the purposes of this subdivision is continuously appropriated
25to, and available for expenditure by, the department for the
26purposes for which it is appropriated, contributed, or made
27available, without regard to fiscal years and irrespective of the
28provisions of Section 13340 of the Government Code.

29(c) As used in this article, “fund” means the Parks Project
30Revolving Fund.

31

begin insert5019.11.end insert  

The department shall file against the fund all claims
32covering expenditures incurred in connection with services, new
33construction, major construction and equipment, minor
34construction, maintenance, improvements, and equipment, and
35other building and improvement projects, and the Controller shall
36draw his or her warrant therefor against that fund.

37

begin insert5019.12.end insert  

The department shall keep a record of all expenditures
38chargeable against each specific portion of the fund. Any
39unencumbered balance in any portion of the fund, either within
40three months after completion of the project for which the portion
P183  1was transferred or within three years from the time the portion
2was transferred or deposited therein, whichever is earlier, shall
3be withdrawn from the fund and transferred to the credit of the
4fund from which the appropriation was made. As to funds from
5other than state appropriations, they shall be paid out or refunded
6as provided in the agreement relating to the contributions. The
7Department of Finance may approve an extension of the time of
8withdrawal. For the purpose of this section, an estimate, prepared
9by the department upon receipt of bids, of the amount required for
10supervision, engineering, and other items, if any, necessary for
11the completion of a project, on which a construction contract has
12been awarded, shall be deemed a valid encumbrance and shall be
13included with any other valid encumbrances in determining the
14amount of an unencumbered balance.

15

begin insert5019.13.end insert  

At any time, the department, without furnishing a
16voucher or itemized statement, may withdraw from the fund a sum
17not to exceed five hundred thousand dollars ($500,000). Any sum
18withdrawn pursuant to this section shall be used as a revolving
19fund when payments of compensation earned or cash advances
20are necessary with respect to the construction, alteration, repair,
21or improvement of state park facilities.

22

begin insert5019.14.end insert  

The department shall annually submit to the
23Department of Finance a report that reconciles, by project, all of
24the following:

25(a) Amounts transferred to the fund.

26(b) Amounts expended from the fund.

27(c) In cases of project savings or completion, or both,
28unexpended amounts withdrawn from the fund and transferred to
29the credit of the fund, paid out, or refunded, as provided in Section
305019.12.

31

begin insert5019.15.end insert  

This article shall become inoperative on the date that
32is three years after the date that Section 5018.1 is repealed, and,
33as of January 1 immediately following that inoperative date, is
34repealed, unless a later enacted statute that is enacted before that
35January 1 deletes or extends the dates on which it becomes
36inoperative and is repealed.

end insert
37begin insert

begin insertSEC. 141.end insert  

end insert

begin insertSection 14507.5 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
38amended to read:end insert

39

14507.5.  

(a) “Community Conservation Corps” means a
40nonprofit public benefit corporation formed or operating pursuant
P184  1to Part 2 (commencing with Section 5110) of Division 2 of Title
21 of the Corporations Code, or an agency operated by a city,
3county, or city and county, that is certified by the California
4Conservation Corps as meeting all of the following criteria:

5(1) The corps is organized in the form of supervised work crews
6and selects young men and women for participation on the basis
7of motivation for hard work, personal development, and public
8service, without regard to their prior employment or educational
9background, and consistent with Section 14402. Participation shall
10be for a period of one year, and may be extended.

11(2) The corps’ program is based upon a highly disciplined work
12experience, includes an educational component, and is designed
13to develop corpsmembers’ character and civic consciousness
14through rigorous work on public projects. The educational
15component of the corps’ program includes enrollment in a
16vocational education program, public or charter high school, or
17postsecondary community college.

18(3) The corps compensates corpsmembers at not less than the
19federal minimum wage, and provides corpsmembers assistance in
20obtaining permanent employment following their participation in
21the corps program.

22(4) The corps engages in recycling and litter abatement projects
23as well as projects that accomplish the conservationist and other
24purposes described in subdivisions (a) to (h), inclusive, of Section
2514300, and that assist agencies of local government and other
26nonprofit community organizations in developing, rehabilitating,
27and restoring parklands, recreational facilities, and other
28community resources.

29(5) The corps consists of an average annual enrollment of not
30less than 50 corpsmembers between 18 and 25 years of age. In
31determining the average annual enrollment of a community
32conservation corps for the purposes ofbegin delete subdivision (a) of Section
3314581,end delete
begin insert Section 14581.1,end insert the California Conservation Corps shall
34not include special corpsmembers, as described in Section 14303,
35who are employed by a community conservation corps.

36(b) The California Conservation Corps shall evaluate a
37community conservation corps for the purpose of determining its
38eligibility for certification, pursuant to this section, after it has
39completed 12 months of continuous operation, and annually
40thereafter.

P185  1begin insert

begin insertSEC. 142.end insert  

end insert

begin insertSection 14552 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
2amended to read:end insert

3

14552.  

(a) The department shall establish and implement an
4auditing system to ensure that the information collected, and refund
5values and redemption payments paid pursuant to this division,
6comply with the purposes of this division. Notwithstanding
7Sections 14573 and 14573.5, the auditing system adopted by the
8department may include prepayment or postpayment controls.

9(b) (1) begin deleteOn or after January 1 of each year, the end deletebegin insertThe end insertdepartment
10may audit or investigate any action taken up tobegin delete threeend deletebegin insert fiveend insert years
11before the onset of the audit or investigation and may determine
12if there was compliance with this division and the regulations
13adopted pursuant to this division, during that period.

14(2) Notwithstanding any other provision of law establishing a
15shorter statute of limitation, the department may take an
16enforcement action, including, but not limited to, an action for
17restitution or to impose penalties, at any time withinbegin delete twoend deletebegin insert fiveend insert years
18after the department discovers, or with reasonable diligence, should
19have discovered, a violation of this division or the regulations
20adopted pursuant to this division.

21(c) During the conduct of any inspection, including, but not
22limited to, an inspection conducted as part of an audit or
23investigation, the entity that is the subject of the inspection shall,
24during its normal business hours, provide the department with
25immediate access to its facilities, operations, and any relevant
26record, that, in the department’s judgment, the department
27determines are necessary to carry out this section to verify
28compliance with this division and the regulations adopted pursuant
29to this division.

30(1) The department may take disciplinary action pursuant to
31Section 14591.2 against any person who fails to provide the
32department with access pursuant to this subdivision including, but
33not limited to, imposing penalties and the immediate suspension
34or termination of any certificate or registration held by the operator.

35(2) The department shall protect any information obtained
36pursuant to this section in accordance with Section 14554, except
37that this section does not prohibit the department from releasing
38any information that the department determines to be necessary
39in the course of an enforcement action.

P186  1(d) The auditing system adopted by the department shall allow
2for reasonable shrinkage in material due to moisture, dirt, and
3foreign material. The department, after an audit by a qualified
4auditing firm and a hearing, shall adopt a standard to be used to
5account for shrinkage and shall incorporate this standard in the
6audit process.

7(e) If the department prevails againstbegin delete anyend deletebegin insert anend insert entity inbegin delete anyend deletebegin insert aend insert civil
8or administrative action brought pursuant to this division, and
9money is owed to the department as a result of the action, the
10department may offset the amount against amounts claimed by the
11entity to be due to it from the department. The department may
12take this offset by withholding payments from the entity or by
13authorizing all processors to withhold payment to a certified
14recycling center.

15(f) If the department determines, pursuant to an audit or
16investigation, that a distributor or beverage manufacturer has
17overpaid the redemption payment or processing fee, the department
18may do either of the following:

19(1) Offset the overpayment against future payments.

20(2) Refund the payment pursuant to Article 3 (commencing with
21Section 13140) of Chapter 2 of Part 3 of Division 3 of Title 2 of
22the Government Code.

23begin insert

begin insertSEC. 143.end insert  

end insert

begin insertSection 14581 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
24amended to read:end insert

25

14581.  

(a) Subject to the availability of funds and in
26accordance with subdivisionbegin delete (c),end deletebegin insert (b),end insert the department shall expend
27the moneys set aside in the fund, pursuant to subdivision (c) of
28Section 14580, for the purposes of this section in the following
29manner:

30(1) For each fiscal year, the department may expend the amount
31necessary to make the required handling fee payment pursuant to
32Section 14585.

33(2) Fifteen million dollars ($15,000,000) shall be expended
34annually for payments for curbside programs and neighborhood
35 dropoff programs pursuant to Section 14549.6.

begin delete

36(3) (A) Fifteen million dollars ($15,000,000), plus the
37proportional share of the cost-of-living adjustment, as provided in
38subdivision (b), shall be expended annually in the form of grants
39for beverage container litter reduction programs and recycling
40programs issued to either of the following:

P187  1(i) Certified community conservation corps that were in
2existence on September 30, 1999, or that are formed subsequent
3to that date, that are designated by a city or a city and county to
4perform litter abatement, recycling, and related activities, if the
5city or the city and county has a population, as determined by the
6most recent census, of more than 250,000 persons.

7(ii) Community conservation corps that are designated by a
8county to perform litter abatement, recycling, and related activities,
9and are certified by the California Conservation Corps as having
10operated for a minimum of two years and as meeting all other
11criteria of Section 14507.5.

12(B) The grants provided pursuant to this paragraph shall not
13comprise more than 75 percent of the annual budget of a
14community conservation corps.

15(C) For the 2009-10 fiscal year only, the eight million two
16hundred fifty thousand dollars ($8,250,000) appropriated to the
17California Conservation Corps for certified local conservation
18corps by Item 3340-101-0133 of Sec. 2.00 of the 2009-10 Budget
19Act, as added by Section 166 of Chapter 1 of the Fourth
20Extraordinary Session of the Statutes of 2009, shall be in addition
21to the amounts expended pursuant to this paragraph.

22(4)

end delete

23begin insert(3)end insert (A) Ten million five hundred thousand dollars ($10,500,000)
24may be expended annually for payments of five thousand dollars
25($5,000) to cities and ten thousand dollars ($10,000) for payments
26to counties for beverage container recycling and litter cleanup
27activities, or the department may calculate the payments to counties
28and cities on a per capita basis, and may pay whichever amount
29is greater, for those activities.

30(B) Eligible activities for the use of these funds may include,
31but are not necessarily limited to, support for new or existing
32curbside recycling programs, neighborhood dropoff recycling
33programs, public education promoting beverage container
34recycling, litter prevention, and cleanup, cooperative regional
35efforts among two or more cities or counties, or both, or other
36beverage container recycling programs.

37(C) These funds shall not be used for activities unrelated to
38beverage container recycling or litter reduction.

39(D) To receive these funds, a city, county, or city and county
40shall fill out and return a funding request form to the department.
P188  1The form shall specify the beverage container recycling or litter
2reduction activities for which the funds will be used.

3(E) The department shall annually prepare and distribute a
4funding request form to each city, county, or city and county. The
5form shall specify the amount of beverage container recycling and
6litter cleanup funds for which the jurisdiction is eligible. The form
7shall not exceed one double-sided page in length, and may be
8submitted electronically. If a city, county, or city and county does
9not return the funding request form within 90 days of receipt of
10the form from the department, the city, county, or city and county
11is not eligible to receive the funds for that funding cycle.

12(F) For the purposes of this paragraph, per capita population
13shall be based on the population of the incorporated area of a city
14or city and county and the unincorporated area of a county. The
15department may withhold payment to any city, county, or city and
16county that has prohibited the siting of a supermarket site, caused
17a supermarket site to close its business, or adopted a land use policy
18that restricts or prohibits the siting of a supermarket site within its
19jurisdiction.

begin delete

20(5) (A)

end delete

21begin insert(4)end insert One million five hundred thousand dollars ($1,500,000) may
22be expended annually in the form of grants for beverage container
23recycling and litter reduction programs.

begin delete

24(B) Notwithstanding subdivision (f), the department shall not
25expend funds pursuant to this paragraph for the 2010 and 2011
26calendar years.

end delete
begin delete

27(6)

end delete

28begin insert(5)end insert (A) The department shall expend the amount necessary to
29pay the processing payment established pursuant to Section 14575.
30The department shall establish separate processing fee accounts
31in the fund for each beverage container material type for which a
32processing payment and processing fee are calculated pursuant to
33Section 14575, or for which a processing payment is calculated
34pursuant to Section 14575 and a voluntary artificial scrap value is
35calculated pursuant to Section 14575.1, into which account shall
36be deposited both of the following:

37(i) All amounts paid as processing fees for each beverage
38container material type pursuant to Section 14575.

39(ii) Funds equal to the difference between the amount in clause
40(i) and the amount of the processing payments established in
P189  1subdivision (b) of Section 14575, and adjusted pursuant to
2paragraph (2) of subdivision (c) of, and subdivision (f) of, Section
314575, to reduce the processing fee to the level provided in
4subdivision (e) of Section 14575, or to reflect the agreement by a
5willing purchaser to pay a voluntary artificial scrap value pursuant
6to Section 14575.1.

7(B) Notwithstanding Section 13340 of the Government Code,
8the moneys in each processing fee account are hereby continuously
9appropriated to the department for expenditure without regard to
10fiscal years, for purposes of making processing payments pursuant
11to Section 14575.

begin delete

12(C) Notwithstanding the other provisions of this section and
13Section 14575, for the 2010 and 2011 calendar years, the total
14amount that the department may expend to reduce the amount of
15processing fees for each container type shall not exceed the total
16amount expended to reduce processing fees in the 2008 calendar
17year.

end delete
begin delete

18(7) (A)

end delete

19begin insert(6)end insert Up to five million dollars ($5,000,000) may be annually
20expended by the department for the purposes of undertaking a
21statewide public education and information campaign aimed at
22promoting increased recycling of beverage containers.

begin delete

23(B) Notwithstanding subdivision (f), the department shall not
24expend funds pursuant to this paragraph for the 2010 and 2011
25calendar years.

end delete
begin delete

26(8)

end delete

27begin insert(7)end insert Up to ten million dollars ($10,000,000) may be expended
28annually by the department for quality incentive payments for
29empty glass beverage containers pursuant to Section 14549.1.

begin delete

30(9)

end delete

31begin insert(8)end insert (A) Up to ten million dollars ($10,000,000) may be
32expended annually by the department for market development
33payments for empty plastic beverage containers pursuant to Section
3414549.2, until January 1, 2017.

35(B) begin deleteOn and after January 1, 2012, in end deletebegin insertIn end insertaddition to the amount
36specified in subparagraph (A), the department may expend the
37amount calculated pursuant to subparagraph (C) for market
38development payments for empty plastic beverage containers
39pursuant to Section 14549.2.

P190  1(C) The department shall calculate the amount authorized for
2expenditure pursuant to subparagraph (B) in the following manner:

3(i) The department shall determine, on or before January 1,
42012, and annually thereafter, whether the amount of funds
5estimated to be necessary pursuant to clause (ii) of subparagraph
6(A) of paragraph (6) for deposit to a processing fee account
7established by the department for plastic beverage containers to
8make processing payments for plastic beverage containers for the
9current calendar year is less than the total amount of funds that
10were estimated to be necessary the previous calendar year pursuant
11to clause (ii) of subparagraph (A) of paragraph (6) for deposit to
12that processing fee account.

13(ii) If the amount estimated to be necessary for the current
14calendar year, as specified in clause (i), is less than the amount
15estimated to be necessary for the previous calendar year, the
16department shall calculate the amount of that difference.

17(iii) The department shall expend an amount that is not greater
18than 50 percent of the amount calculated pursuant to clause (ii)
19for purposes of subparagraph (B).

20(iv) If the department determines that the amount of funds
21authorized for expenditure pursuant to this subparagraph is not
22needed to make plastic market development payments pursuant to
23subparagraph (B) in the calendar year for which that amount is
24allocated, the department may expend those funds during the
25following year.

26(v) If the department determines that there are insufficient funds
27to both make the market development payments pursuant to
28subparagraph (B) and to deposit the amount required by clause (ii)
29of subparagraph (A) of paragraph (6), for purposes of making the
30processing payments and reducing the processing fees pursuant to
31Section 14575 for plastic beverage containers, the department shall
32suspend the implementation of this subparagraph and subparagraph
33(B).

34(D) Subparagraphs (B) and (C) shall remain operative only until
35January 1, 2017.

begin delete

36(b) The fifteen million dollars ($15,000,000) that is set aside
37pursuant to paragraph (3) of subdivision (a) is a base amount that
38the department shall adjust annually to reflect any increases or
39decreases in the cost of living, as measured by the Department of
40Labor, or a successor agency, of the federal government.

end delete
begin delete

P191  1(c)

end delete

2begin insert(b)end insert (1) If the department determines, pursuant to a review made
3pursuant to Section 14556, that there may be inadequate funds to
4pay the payments required by this division, the department shall
5immediately notify the appropriate policy and fiscal committees
6of the Legislature regarding the inadequacy.

7(2) On or before 180 days, but not less than 80 days, after the
8notice is sent pursuant to paragraph (1), the department may reduce
9or eliminate expenditures, or both, from the funds as necessary,
10according to the procedure set forth in subdivisionbegin delete (d).end deletebegin insert (c).end insert

begin delete

11(d)

end delete

12begin insert(c)end insert If the department determines that there are insufficient funds
13to make the payments specified pursuant to this section and Section
1414575, the department shall reduce all payments proportionally.

begin delete

15(e)

end delete

16begin insert(d)end insert Prior to making an expenditure pursuant to paragraphbegin delete (7)end delete
17begin insert (6)end insert of subdivision (a), the department shall convene an advisory
18committee consisting of representatives of the beverage industry,
19beverage container manufacturers, environmental organizations,
20the recycling industry, nonprofit organizations, and retailers to
21advise the department on the most cost-effective and efficient
22method of the expenditure of the funds for that education and
23information campaign.

begin delete

24(f)

end delete

25begin insert(e)end insert Subject to the availability of funds, the department shall
26retroactively pay in full any payments provided in this section that
27have been proportionally reduced during the period of January 1,
282010, through June 30, 2010.

29begin insert

begin insertSEC. 144.end insert  

end insert

begin insertSection 14581.1 is added to the end insertbegin insertPublic Resources
30Code
end insert
begin insert, to read:end insert

begin insert
31

begin insert14581.1.end insert  

(a) The department shall expend in each fiscal year,
32from the moneys set aside in the fund pursuant to subdivision (c)
33of Section 14580, twenty million nine hundred seventy-four
34thousand dollars ($20,974,000), plus the cost-of-living adjustment,
35as provided in subdivision (c), less fifteen million dollars
36($15,000,000), in the form of grants for beverage container litter
37reduction programs and recycling programs, including education
38and outreach, issued to either of the following:

39(1) Certified community conservation corps that were in
40existence on September 30, 1999, or that are formed subsequent
P192  1to that date, that are designated by a city or a city and county to
2perform litter abatement, recycling, and related activities, if the
3city or the city and county has a population, as determined by the
4most recent census, of more than 250,000 persons.

5(2) Community conservation corps that are designated by a
6county to perform litter abatement, recycling, and related activities,
7and are certified by the California Conservation Corps as having
8operated for a minimum of two years and as meeting all other
9criteria of Section 14507.5.

10(b) The grants provided pursuant to this section shall not
11comprise more than 75 percent of the annual budget of a
12community conservation corps.

13(c) The amount of twenty million nine hundred seventy-four
14thousand dollars ($20,974,000) that is referenced in subdivision
15(a) is a base amount for the 2014-15 fiscal year, and the
16department shall adjust that amount annually to reflect any
17increases or decreases in the cost of living as measured by the
18Department of Labor or a successor agency of the federal
19government.

20(d) For the 2014-15 fiscal year only, the amount to be expended
21from the fund for the purposes specified in subdivision (a) shall
22be increased by seven million five hundred thousand dollars
23($7,500,000).

end insert
24begin insert

begin insertSEC. 145.end insert  

end insert

begin insertDivision 12.5 (commencing with Section 17000) is
25added to the end insert
begin insertPublic Resources Codeend insertbegin insert, to read:end insert

begin insert

26 

27Division begin insert12.5.end insert  Community Conservation Corps

28

 

29

begin insert17000.end insert  

For purposes of this division, the following definitions
30shall apply:

31(a) “Certified community conservation corps” means a
32community conservation corps that was in existence on September
3330, 1999, or that is formed subsequent to that date, and that is
34designated by a city or a city and county to perform litter
35abatement, recycling, and related activities, if the city or the city
36and county has a population, as determined by the most recent
37census, of more than 250,000 persons.

38(b) “Community conservation corps” means a community
39conservation corps, as defined in Section 14507.5, that is
40designated by a county to perform litter abatement, recycling, and
P193  1related activities, and that is certified by the California
2Conservation Corps as having operated for a minimum of two
3years and as meeting all other criteria of Section 14507.5.

4(c) “Department” means the Department of Resources Recycling
5and Recovery.

6

begin insert17001.end insert  

(a) For purposes of the 2014-15 fiscal year only,
7subject to Section 17002, the department shall expend funds from
8the following sources, for issuing grants to certified community
9conservation corps and community conservation corps, in
10accordance with, and for the purposes specified in, this
11subdivision:

12(1) The department shall expend the amount made available
13for expenditure during the 2014-15 fiscal year pursuant to Section
1414581.1 in the form of grants for implementing beverage container
15litter reduction programs and beverage container recycling
16programs, including education and outreach, pursuant to Division
1712.1 (commencing with Section 14501).

18(2) The department shall expend four million dollars
19($4,000,000) from the funds in the Electronic Waste Recovery and
20Recycling Account, upon appropriation by the Legislature, for
21grants to implement programs relating to the collection and
22recovery of covered electronic waste, including education and
23outreach, in accordance with Chapter 8.5 (commencing with
24Section 42460) of Part 3 of Division 30.

25(3) The department shall expend two million five hundred
26thousand dollars ($2,500,000) from the funds in the California
27Tire Recycling Management Fund, upon appropriation by the
28Legislature, for grants relating to implementing programs to clean
29up and abate waste tires and to reuse and recycle waste tires,
30including, but not limited to, the tire recycling program authorized
31by Section 42872, and including education and outreach, in
32accordance with Chapter 17 (commencing with Section 42860) of
33Part 3 of Division 30.

34(4) The department shall expend one million dollars
35($1,000,000) from the funds in the California Used Oil Recycling
36Fund, upon appropriation by the Legislature, for grants to
37implement programs relating to the collection of used oil, including
38education and outreach, in accordance with Chapter 4
39(commencing with Section 48600) of Part 7 of Division 30.

P194  1(b) On and after July 1, 2015, subject to Section 17002, the
2department shall expend funds from the following sources, for
3issuing grants to certified community conservation corps and
4community conservation corps, in accordance with, and for the
5purposes specified in, this subdivision:

6(1) The department shall expend in each fiscal year the amount
7made available pursuant to Section 14581.1 for grants to
8implement beverage container litter reduction programs and
9beverage container recycling programs, including education and
10outreach, pursuant to Division 12.1 (commencing with Section
1114501).

12(2) The department shall expend eight million dollars
13($8,000,000) each fiscal year from the funds in the Electronic
14Waste Recovery and Recycling Account, upon appropriation by
15the Legislature, for grants to implement programs relating to the
16collection and recovery of covered electronic waste, including
17education and outreach, in accordance with Chapter 8.5
18(commencing with Section 42460) of Part 3 of Division 30.

19(3) The department shall expend five million dollars
20($5,000,000) each fiscal year from the funds in the California Tire
21Recycling Management Fund, upon appropriation by the
22Legislature, for grants to implement programs relating to clean
23up and abate waste tires and to reuse and recycle waste tires,
24including, but not limited to, the tire recycling program authorized
25by Section 42872, and including education and outreach, in
26accordance with Chapter 17 (commencing with Section 42860) of
27Part 3 of Division 30.

28(4) The department shall expend two million dollars
29($2,000,000) each fiscal year from the funds in the California Used
30Oil Recycling Fund, upon appropriation by the Legislature, for
31grants to implement programs relating to the collection of used
32oil, including education and outreach, in accordance with Chapter
334 (commencing with Section 48600) of Part 7 of Division 30.

34

begin insert17002.end insert  

The amount the department may expend for a fiscal
35year pursuant to Section 17001 shall not exceed the amount
36determined for that fiscal year pursuant to subdivision (c) of
37Section 14581.1.

end insert
38begin insert

begin insertSEC. 146.end insert  

end insert

begin insertSection 21190 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
39amended to read:end insert

P195  1

21190.  

There is in this state the California Environmental
2Protection Program, which shall be concerned with the preservation
3and protection of California’s environment. In this connection, the
4Legislature hereby finds and declares that, since the inception of
5the program pursuant to the Marks-Badham Environmental
6Protection and Research Act, the Department of Motor Vehicles
7has, in the course of issuing environmental license plates,
8consistently informed potential purchasers of those plates, by
9means of a detailed brochure, of the manner in which the program
10functions, the particular purposes for which revenues from the
11issuance of those plates can lawfully be expended, and examples
12of particular projects and programs that have been financed by
13those revenues. Therefore, because of this representation by the
14 Department of Motor Vehicles, purchasers come to expect and
15rely that the moneys paid by them will be expended only for those
16particular purposes, which results in an obligation on the part of
17the state to expend the revenues only for those particular purposes.

18Accordingly, all funds expended pursuant to this division shall
19be used only to support identifiable projects and programs of state
20agencies, cities, cities and counties, counties, districts, the
21University of California, private nonprofit environmental and land
22acquisition organizations, and private research organizationsbegin delete whichend delete
23begin insert thatend insert have a clearly defined benefit to the people of the State of
24California andbegin delete whichend deletebegin insert thatend insert have one or more of the following
25purposes:

26(a) The control and abatement of air pollution, including all
27phases of research into the sources, dynamics, and effects of
28environmental pollutants.

29(b) The acquisition, preservation, restoration, or any combination
30thereof, of natural areas or ecological reserves.

31(c) Environmental education, including formal school programs
32and informal public education programs. The State Department of
33Education may administer moneys appropriated for these programs,
34but shall distribute not less than 90 percent of moneys appropriated
35for the purposes of this subdivision to fund environmental
36education programs of school districts, other local schools, state
37agencies other than the State Department of Education, and
38community organizations. Not more than 10 percent of the moneys
39appropriated for environmental education may be used for State
P196  1Department of Education programs or defraying administrative
2costs.

3(d) Protection of nongame species and threatened and
4endangered plants and animals.

5(e) Protection, enhancement, and restoration of fish and wildlife
6habitat and related water quality, including review of the potential
7impact of development activities and land use changes on that
8habitat.

9(f) The purchase, on an opportunity basis, of real property
10consisting of sensitive natural areas for the state park system and
11for local and regional parks.

12(g) Reduction or minimization of the effects of soil erosion and
13the discharge of sediment into the waters of the Lake Tahoe region,
14including the restoration of disturbed wetlands and stream
15environment zones, through projects by the California Tahoe
16Conservancy and grants to local public agencies, state agencies,
17federal agencies, and nonprofit organizations.

begin insert

18(h) Scientific research on the risks to California’s natural
19resources and communities caused by the impacts of climate
20change.

end insert
21begin insert

begin insertSEC. 147.end insert  

end insert

begin insertSection 30821 is added to the end insertbegin insertPublic Resources
22Code
end insert
begin insert, to read:end insert

begin insert
23

begin insert30821.end insert  

(a) In addition to any other penalties imposed pursuant
24to this division, a person, including a landowner, who is in
25violation of the public access provisions of this division is subject
26to an administrative civil penalty that may be imposed by the
27commission in an amount not to exceed 75 percent of the amount
28of the maximum penalty authorized pursuant to subdivision (b) of
29Section 30820 for each violation. The administrative civil penalty
30may be assessed for each day the violation persists, but for no
31more than five years.

32(b) All penalties imposed pursuant to subdivision (a) shall be
33imposed by majority vote of the commissioners present in a duly
34noticed public hearing in compliance with the requirements of
35Section 30810, 30811, or 30812.

36(c) In determining the amount of civil liability, the commission
37shall take into account the factors set forth in subdivision (c) of
38Section 30820.

39(d) A person shall not be subject to both monetary civil liability
40imposed under this section and monetary civil liability imposed
P197  1by the superior court for the same act or failure to act. If a person
2who is assessed a penalty under this section fails to pay the
3administrative penalty, otherwise fails to comply with a restoration
4or cease and desist order issued by the commission in connection
5with the penalty action, or challenges any of these actions by the
6commission in a court of law, the commission may maintain an
7action or otherwise engage in judicial proceedings to enforce those
8requirements and the court may grant any relief as provided under
9this chapter.

10(e) If a person fails to pay a penalty imposed by the commission
11pursuant to this section, the commission may record a lien on the
12property in the amount of the penalty assessed by the commission.
13This lien shall have the force, effect, and priority of a judgment
14lien.

15(f) In enacting this section, it is the intent of the Legislature to
16ensure that unintentional, minor violations of this division that
17only cause de minimis harm will not lead to the imposition of
18administrative penalties if the violator has acted expeditiously to
19correct the violation.

20(g) “Person,” for the purpose of this section, does not include
21a local government, a special district, or an agency thereof, when
22acting in a legislative or adjudicative capacity.

23(h) Administrative penalties pursuant to subdivision (a) shall
24not be assessed if the property owner corrects the violation
25consistent with this division within 30 days of receiving written
26notification from the commission regarding the violation, and if
27the alleged violator can correct the violation without undertaking
28additional development that requires a permit under this division.
29This 30-day timeframe for corrective action does not apply to
30previous violations of permit conditions incurred by a property
31owner.

32(i) The commission shall prepare and submit, pursuant to
33Section 9795 of the Government Code, a report to the Legislature
34by January 15, 2019, that includes all of the following:

35(1) The number of new violations reported annually to the
36commission from January 1, 2015, to December 31, 2018,
37inclusive.

38(2) The number of violations resolved from January 1, 2015, to
39December 31, 2018, inclusive.

P198  1(3) The number of administrative penalties issued pursuant to
2this section, the dollar amount of the penalties, and a description
3of the violations from January 1, 2015, to December 31, 2018,
4inclusive.

5(j) Revenues derived pursuant to this section shall be deposited
6into the Violation Remediation Account of the Coastal Conservancy
7Fund and expended pursuant to Section 30823.

end insert
8begin insert

begin insertSEC. 148.end insert  

end insert

begin insertSection 31012 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
9amended to read:end insert

10

31012.  

(a) The Coastal Trust Fund is hereby established in
11the State Treasury, to receive and disburse funds paid to the
12conservancy in trust, subject to the right of recovery to fulfill the
13purposes of the trust, as provided in this section.

14(b) (1) There is in the Coastal Trust Fund the San Francisco
15Bay Area Conservancy Program Account, which shall be expended
16solely for the purposes of Chapter 4.5 (commencing with Section
1731160).

18(2) The conservancy shall deposit in the San Francisco Bay
19Area Conservancy Program Account all funds received by the
20conservancy for the purposes of the San Francisco Bay Area
21Conservancy Program established under Chapter 4.5 (commencing
22with Section 31160), from sources other than the state or federal
23government and not provided for in subdivision (a) of Section
2431164. These funds include, but are not limited to, private
25donations, fees, penalties, and local government contributions.

26(c) (1) There is in the Coastal Trust Fund the Coastal Program
27Account. Funds in the Coastal Program Account shall be expended
28solely for their specified trust purposes.

29(2) Upon approval of the Department of Finance, the
30conservancy shall deposit in the Coastal Program Account all funds
31paid to the conservancy in trust for purposes of this division, except
32those funds identified in paragraph (2) of subdivision (b). The
33funds that shall be deposited in the Coastal Program Account, upon
34that approval, include, but are not limited to, funds that are paid
35to the conservancy in trust for purposes of mitigation, for settlement
36of litigation, instead of other conditions of coastal development
37permits or other regulatory entitlements, or for other trust purposes
38consistent with this division and specified by the terms of a gift
39or contract. Funds in the Coastal Program Account shall be
40separately accounted for according to their source and trust
P199  1purpose. Fundsbegin delete mayend deletebegin insert shallend insert not be deposited in the Coastal Program
2Account without the Department of Finance’s approval.

begin insert

3(d) (1) There is in the Coastal Trust Fund the California
4Climate Resilience Account. Notwithstanding Section 13340 of
5the Government Code, and except as provided in paragraph (6),
6funds in the account are continuously appropriated to the
7conservancy, as follows, without regard to fiscal year. Funds shall
8be expended by the conservancy, the California Coastal
9Commission, and the San Francisco Bay Conservation and
10Development Commission for coastal zone management planning
11and implementation activities to address the risks and impacts of
12climate change, sea level rise, and associated extreme events to
13coastal and bay communities and natural resources. The purpose
14of the account is to support project implementation, capital outlay,
15and local assistance grants. Up to 10 percent of the funds shall
16be available for administrative costs.

end insert
begin insert

17(2) Except as specified by an instrument imposing conditions
18on the use or expenditure of the specific funds provided, funds
19appropriated for these purposes shall be allocated as follows:

end insert
begin insert

20(A) To the California Coastal Commission, 20 percent of the
21funds deposited in the account during each fiscal year.

end insert
begin insert

22(B) To the San Francisco Bay Conservation and Development
23Commission, 20 percent of the funds deposited in the account
24during each fiscal year.

end insert
begin insert

25(C) To the conservancy, 60 percent of the funds deposited in
26the account during each fiscal year.

end insert
begin insert

27(3) Funds in the account shall be expended solely for their
28specified purposes.

end insert
begin insert

29(4) Funds that may be deposited into the California Climate
30Resilience Account include, but are not limited to, appropriations
31and grants, funds from the federal government, regional planning
32agencies, and local governments, fees, litigation settlements,
33permits, and mitigation requirements, and private donations that
34are eligible to be spent for the purposes of the account.

end insert
begin insert

35(5) Nothing in this section shall apply to funds eligible for
36deposit in the Bay Fill Clean-Up and Abatement Fund pursuant
37to Section 66647 of the Government Code or to any funds collected
38pursuant to the California Coastal Act of 1976 (Division 20
39(commencing with Section 30000)).

end insert
begin insert

P200  1(6) To the extent that any funds are appropriated into the
2account by the Legislature in the annual Budget Act, those funds
3shall be segregated for purposes of accounting. Funds
4appropriated into the account by the Legislature in the Annual
5Budget act shall not be continuously appropriated and are subject
6to the provisions of Section 16304 of the Government Code.

end insert
begin delete

7(d)

end delete

8begin insert(e)end insert Interest that accrues on funds in the Coastal Trust Fund shall
9be retained in the Coastal Trust Fund and available for expenditure
10by the conservancy for the trust purposes.

begin delete

11(e)

end delete

12begin insert(f)end insert The conservancy shall maintain separate accountings of funds
13within the Coastal Trust Fund, pursuant to its fiduciary duties, for
14the purpose of separating deposits and interest on those deposits,
15according to their trust purposes.

begin delete

16(f)

end delete

17begin insert(g)end insert Notwithstanding Section 13340 of the Government Code,
18begin insert and except as provided in subdivision (d),end insert all funds in the Coastal
19Trust Fund are continuously appropriated, without regard to fiscal
20year, to the conservancy to fulfill the trust purposes for which the
21payments of funds were made.

begin delete

22(g)

end delete

23begin insert(h)end insert The conservancy shall provide an annual accounting to the
24Department of Finance of the conservancy’s expenditures from,
25and other activities related to, the Coastal Trust Fund.

26begin insert

begin insertSEC. 149.end insert  

end insert

begin insertSection 42476 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
27amended to read:end insert

28

42476.  

(a) The Electronic Waste Recovery and Recycling
29Account is hereby established in the Integrated Waste Management
30Fund. All fees collected pursuant to this chapter shall be deposited
31in the account. Notwithstanding Section 13340 of the Government
32Code, the funds in the account are hereby continuously
33appropriated, without regard to fiscal year, for the following
34purposes:

35(1) To pay refunds of the covered electronic waste recycling
36fee imposed under Section 42464.

37(2) To make electronic waste recovery payments to an
38authorized collector of covered electronic waste pursuant to Section
3942479.

P201  1(3) To make electronic waste recycling payments to covered
2electronic waste recyclers pursuant to Section 42479.

3(4) To make payments to manufacturers pursuant to subdivision
4(h).

5(b) (1) The money in the account may be expended for the
6following purposes only upon appropriation by the Legislature in
7the annual Budget Act:

8(A) For the administration of this chapter by the Department of
9Resources Recycling and Recovery and the department.

10(B) To reimburse the State Board of Equalization for its
11administrative costs of registering, collecting, making refunds, and
12auditing retailers and consumers in connection with the covered
13electronic waste recycling fee imposed under Section 42464.

14(C) To provide funding to the department to implement and
15enforce Chapter 6.5 (commencing with Section 25100) of Division
1620 of the Health and Safety Code, as that chapter relates to covered
17electronic devices, and any regulations adopted by the department
18pursuant to that chapter.

19(D) To establish the public information program specified in
20subdivision (d).

begin insert

21(E) For expenditure pursuant to paragraph (2) of subdivision
22(a) of, and paragraph (2) of subdivision (b) of, Section 17001.

end insert

23(2) Any fines or penalties collected pursuant to this chapter shall
24be deposited in the Electronic Waste Penalty Subaccount, which
25is hereby established in the account. The funds in the Electronic
26Waste Penalty Subaccount may be expended by the Department
27 of Resources Recycling and Recovery or the department only upon
28appropriation by the Legislature.

29(c) Notwithstanding Section 16475 of the Government Code,
30any interest earned upon funds in the Electronic Waste Recovery
31and Recycling Account shall be deposited in that account for
32expenditure pursuant to this chapter.

33(d) Not more than 1 percent of the funds annually deposited in
34the Electronic Waste Recovery and Recycling Account shall be
35expended for the purposes of establishing the public information
36program to educate the public in the hazards of improper covered
37electronic device storage and disposal and on the opportunities to
38recycle covered electronic devices.

P202  1(e) The Department of Resources Recycling and Recovery shall
2adopt regulations specifying cancellation methods for the recovery,
3processing, or recycling of covered electronic waste.

4(f) The Department of Resources Recycling and Recovery may
5pay an electronic waste recycling payment or electronic waste
6recovery payment only for covered electronic waste that meets all
7of the following conditions:

8(1) (A) The covered electronic waste is demonstrated to have
9been generated by a person who used the covered electronic device
10while located in this state.

11(B) Covered electronic waste generated outside of the state and
12subsequently brought into the state is not eligible for payment.

13(C) The Department of Resources Recycling and Recovery shall
14establish documentation requirements for purposes of this
15paragraph that are necessary to demonstrate that the covered
16electronic waste was generated in the state and eligible for payment.

17(2) The covered electronic waste, including any residuals from
18the processing of the waste, is handled in compliance with all
19applicable statutes and regulations.

20(3) The manufacturer or the authorized collector or recycler of
21the electronic waste provides a cost-free and convenient
22opportunity to recycle electronic waste, in accordance with the
23legislative intent specified in subdivision (b) of Section 42461.

24(4) If the covered electronic waste is processed, the covered
25electronic waste is processed in this state according to the
26cancellation method authorized by the Department of Resources
27Recycling and Recovery.

28(g) The Legislature hereby declares that the state is a market
29participant in the business of the recycling of covered electronic
30waste for all of the following reasons:

31(1) The fee is collected from the state’s consumers for covered
32electronic devices sold for use in the state.

33(2) The purpose of the fee and subsequent payments is to prevent
34damage to the public health and the environment from waste
35generated in the state.

36(3) The recycling system funded by the fee ensures that
37economically viable and sustainable markets are developed and
38supported for recovered materials and components in order to
39conserve resources and maximize business and employment
40opportunities within the state.

P203  1(h) (1) The Department of Resources Recycling and Recovery
2may make a payment to a manufacturer that takes back a covered
3electronic device from a consumer in this state for purposes of
4recycling the device at a processing facility. The amount of the
5payment made by the Department of Resources Recycling and
6Recovery shall equal the value of the covered electronic waste
7recycling fee paid for that device. To qualify for a payment
8pursuant to this subdivision, the manufacturer shall demonstrate
9both of the following to the Department of Resources Recycling
10and Recovery:

11(A) The covered electronic device for which payment is claimed
12was used in this state.

13(B) The covered electronic waste for which a payment is
14claimed, including any residuals from the processing of the waste,
15has been, and will be, handled in compliance with all applicable
16statutes and regulations.

17(2) A covered electronic device for which a payment is made
18under this subdivision is not eligible for an electronic waste
19recovery payment or an electronic waste recycling payment under
20Section 42479.

21begin insert

begin insertSEC. 150.end insert  

end insert

begin insertSection 42872.1 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
22amended to read:end insert

23

42872.1.  

(a) This section shall be known, and may be cited,
24as the Rubberizedbegin delete Asphalt Concreteend deletebegin insert Pavementend insert Market
25Development Act.

26(b) In accordance with the tire recycling program authorized by
27Section 42872, the department shall award grants in the following
28manner:

29(1) To cities, counties, and other local governmental agencies
30for the funding of public works projects that utilize rubberized
31begin delete asphalt concrete.end deletebegin insert pavement.end insert

32(2) To state and local governmental agencies, including regional
33park districts, for the funding of disability access projects at parks
34and Class I bikeways as defined in subdivision (a) of Section 890.4,
35relative to projects that utilize rubberizedbegin delete asphalt concrete.end delete
36begin insert pavement.end insert

37(c) (1) Except as provided in paragraph (2), the department
38shall award the grants pursuant to subdivision (b) in the amount
39of two dollars ($2) for every 12 pounds of crumb rubber used in
P204  1a public works or disability access project by a state or local
2governmental agency, including a regional park district.

3(2) The department may adjust the amount of grants awarded
4pursuant to paragraph (1) to an amount that is greater than, or less
5than, two dollars ($2) for every 12 pounds of crumb rubber if the
6department finds this adjustment would further the purposes of
7this article.

8(d) This section shall become inoperative on June 30, 2019,
9and, as of January 1, 2020, is repealed, unless a later enacted
10statute, that becomes operative on or before January 1, 2020,
11deletes or extends the dates on which it becomes inoperative and
12is repealed.

13begin insert

begin insertSEC. 151.end insert  

end insert

begin insertSection 42885.5 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
14amended to read:end insert

15

42885.5.  

(a) The department shall adopt a five-year plan, which
16shall be updated every two years, to establish goals and priorities
17for the waste tire program and each program element.

18(b) On or before July 1, 2001, and every two years thereafter,
19the department shall submit the adopted five-year plan to the
20appropriate policy and fiscal committees of the Legislature. The
21department shall include in the plan, programmatic and fiscal issues
22including, but not limited to, the hierarchy used by the department
23to maximize productive uses of waste and used tires, and the
24performance objectives and measurement criteria used by the
25department to evaluate the success of its waste and used tire
26recycling program. Additionally, the plan shall describe each
27program element’s effectiveness, based upon performance measures
28developed by the department, including, but not limited to, the
29following:

30(1) Enforcement and regulations relating to the storage of waste
31and used tires.

32(2) Cleanup, abatement, or other remedial action related to waste
33tire stockpiles throughout the state.

34(3) Research directed at promoting and developing alternatives
35to the landfill disposal of waste tires.

36(4) Market development and new technology activities for used
37tires and waste tires.

38(5) The waste and used tire hauler program, the registration of,
39and reporting by, tire brokers, and the manifest system.

P205  1(6) A description of the grants, loans, contracts, and other
2expenditures proposed to be made by the department under the
3tire recycling program.

4(7) Until June 30, 2015, the grant program authorized under
5Section 42872.5 to encourage the use of waste tires, including, but
6not limited to, rubberized asphalt concrete technology, in public
7works projects.

8(8) Border region activities, conducted in coordination with the
9California Environmental Protection Agency, including, but not
10limited to, all of the following:

11(A) Training programs to assist Mexican waste and used tire
12haulers to meet the requirements for hauling those tires in
13California.

14(B) Environmental education training.

15(C) Development of a waste tire abatement plan, with the
16appropriate government entities of California and Mexico.

17(D) Tracking both the legal and illegal waste and used tire flow
18across the border and recommended revisions to the waste tire
19policies of California and Mexico.

20(E) Coordination with businesses operating in the border region
21and with Mexico, with regard to applying the same environmental
22and control requirements throughout the border region.

23(F) Development of projects in Mexico in the California-Mexico
24border region, as defined by the La Paz Agreement, that include,
25but are not limited to, education, infrastructure, mitigation, cleanup,
26prevention, reuse, and recycling projects, that address the
27movement of used tires from California to Mexico that are
28eventually disposed of in California.

begin insert

29(9) Grants to certified community conservation corps and
30community conservation corps, pursuant to paragraph (3) of
31subdivision (a) of, and paragraph (3) of subdivision (b) of, Section
3217001, for purposes of the programs specified in paragraphs (2)
33and (6) and for related education and outreach.

end insert

34(c) The department shall base the budget for the California Tire
35Recycling Act and program funding on the plan.

36(d) The plan may not propose financial or other support that
37promotes, or provides for research for the incineration of tires.

38begin insert

begin insertSEC. 152.end insert  

end insert

begin insertSection 42889 of the end insertbegin insertPublic Resources Codeend insertbegin insert, as
39amended by Section 33 of Chapter 401 of the Statutes of 2013, is
40amended to read:end insert

P206  1

42889.  

(a) Of the moneys collected pursuant to Section 42885,
2an amount equal to seventy-five cents ($0.75) per tire on which
3the fee is imposed shall be transferred by the State Board of
4Equalization to the Air Pollution Control Fund. The state board
5shall expend those moneys, or allocate those moneys to the districts
6for expenditure, to fund programs and projects that mitigate or
7remediate air pollution caused by tires in the state, to the extent
8that the state board or the applicable district determines that the
9program or project remediates air pollution harms created by tires
10upon which the fee described in Section 42885 is imposed.

11(b) The remaining moneys collected pursuant to Section 42885
12shall be used to fund the waste tire program, and shall be
13appropriated to the department in the annual Budget Act in a
14manner consistent with the five-year plan adopted and updated by
15the department. These moneys shall be expended for the payment
16of refunds under this chapter and for the following purposes:

17(1) To pay the administrative overhead cost of this chapter, not
18to exceed 6 percent of the total revenue deposited in the fund
19annually, or an amount otherwise specified in the annual Budget
20Act.

21(2) To pay the costs of administration associated with collection,
22making refunds, and auditing revenues in the fund, not to exceed
233 percent of the total revenue deposited in the fund, as provided
24in subdivision (c) of Section 42885.

25(3) To pay the costs associated with operating the tire recycling
26program specified in Article 3 (commencing with Section 42870).

27(4) To pay the costs associated with the development and
28enforcement of regulations relating to the storage of waste tires
29and used tires. The department shall consider designating a city,
30county, or city and county as the enforcement authority of
31regulations relating to the storage of waste tires and used tires, as
32provided in subdivision (c) of Section 42850, and regulations
33relating to the hauling of waste and used tires, as provided in
34subdivision (b) of Section 42963. If the department designates a
35local entity for that purpose, the department shall provide sufficient,
36stable, and noncompetitive funding to that entity for that purpose,
37based on available resources, as provided in the five-year plan
38adopted and updated as provided in subdivision (a) of Section
3942885.5. The department may consider and create, as appropriate,
40financial incentives for citizens who report the illegal hauling or
P207  1disposal of waste tires as a means of enhancing local and statewide
2waste tire and used tire enforcement programs.

3(5) To pay the costs of cleanup, abatement, removal, or other
4remedial action related to waste tire stockpiles throughout the state,
5including all approved costs incurred by other public agencies
6involved in these activities by contract with the department. Not
7less than six million five hundred thousand dollars ($6,500,000)
8shall be expended by the department during each of the following
9fiscal years for this purpose: 2001-02 to 2006-07, inclusive.

10(6) To make studies and conduct research directed at promoting
11and developing alternatives to the landfill disposal of waste tires.

12(7) To assist in developing markets and new technologies for
13used tires and waste tires. The department’s expenditure of funds
14for purposes of this subdivision shall reflect the priorities for waste
15management practices specified in subdivision (a) of Section
1640051.

17(8) To pay the costs associated with implementing and operating
18a waste tire and used tire hauler program and manifest system
19pursuant to Chapter 19 (commencing with Section 42950).

20(9) To pay the costs to create and maintain an emergency
21reserve, which shall not exceed one million dollars ($1,000,000).

22(10) To pay the costs of cleanup, abatement, or other remedial
23action related to the disposal of waste tires in implementing and
24operating the Farm and Ranch Solid Waste Cleanup and Abatement
25Grant Program established pursuant to Chapter 2.5 (commencing
26with Section 48100) of Part 7.

27(11) To fund border region activities specified in paragraph (8)
28of subdivision (b) of Section 42885.5.

begin insert

29(12) For expenditure pursuant to paragraph (3) of subdivision
30(a) of, and paragraph (3) of subdivision (b) of, Section 17001.

end insert

31(c) This section shall remain in effect only until January 1, 2024,
32and as of that date is repealed, unless a later enacted statute that
33is enacted before January 1, 2024, deletes or extends that date.

34begin insert

begin insertSEC. 153.end insert  

end insert

begin insertSection 42889 of the end insertbegin insertPublic Resources Codeend insertbegin insert, as
35amended by Section 34 of Chapter 401 of the Statutes of 2013, is
36amended to read:end insert

37

42889.  

Funding for the waste tire program shall be appropriated
38to the department in the annual Budget Act. The moneys in the
39fund shall be expended for the payment of refunds under this
40chapter and for the following purposes:

P208  1(a) To pay the administrative overhead cost of this chapter, not
2to exceed 5 percent of the total revenue deposited in the fund
3annually, or an amount otherwise specified in the annual Budget
4Act.

5(b) To pay the costs of administration associated with collection,
6making refunds, and auditing revenues in the fund, not to exceed
73 percent of the total revenue deposited in the fund, as provided
8in subdivision (b) of Section 42885.

9(c) To pay the costs associated with operating the tire recycling
10program specified in Article 3 (commencing with Section 42870).

11(d) To pay the costs associated with the development and
12enforcement of regulations relating to the storage of waste tires
13and used tires. The department shall consider designating a city,
14county, or city and county as the enforcement authority of
15regulations relating to the storage of waste tires and used tires, as
16provided in subdivision (c) of Section 42850, and regulations
17relating to the hauling of waste and used tires, as provided in
18subdivision (b) of Section 42963. If the department designates a
19local entity for that purpose, the department shall provide sufficient,
20stable, and noncompetitive funding to that entity for that purpose,
21based on available resources, as provided in the five-year plan
22adopted and updated as provided in subdivision (a) of Section
2342885.5. The department may consider and create, as appropriate,
24 financial incentives for citizens who report the illegal hauling or
25disposal of waste tires as a means of enhancing local and statewide
26waste tire and used tire enforcement programs.

27(e) To pay the costs of cleanup, abatement, removal, or other
28remedial action related to waste tire stockpiles throughout the state,
29including all approved costs incurred by other public agencies
30involved in these activities by contract with the department. Not
31less than six million five hundred thousand dollars ($6,500,000)
32shall be expended by the department during each of the following
33fiscal years for this purpose: 2001-02 to 2006-07, inclusive.

34(f) To fund border region activities specified in paragraph (8)
35of subdivision (b) of Section 42885.5.

begin insert

36(g) For expenditure pursuant to paragraph (3) of subdivision
37(a) of, and paragraph (3) of subdivision (b) of, Section 17001.

end insert
begin delete

38(g)

end delete

39begin insert(h)end insert This section shall become operative on January 1, 2024.

P209  1begin insert

begin insertSEC. 154.end insert  

end insert

begin insertSection 48653 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
2amended to read:end insert

3

48653.  

The board shall deposit all amounts paid pursuant to
4Section 48650 by manufacturers, civil penalties, and fines paid
5pursuant to this chapter, and all other revenues received pursuant
6to this chapter into the California Used Oil Recycling Fund, which
7is hereby created in the State Treasury. Notwithstanding Section
813340 of the Government Code, the money in the fund is to be
9appropriated solely as follows:

10(a) Continuously appropriated to the board for expenditure for
11the following purposes:

12(1) To pay recycling incentives pursuant to Section 48651.

13(2) To provide a reserve for contingencies, as may be available
14after making other payments required by this section, in an amount
15not to exceed one million dollars ($1,000,000).

16(3) (A) To make payments for the implementation of local used
17oil collection programs adopted pursuant to Article 10
18(commencing with Section 48690) to cities, based on the city’s
19population, and counties, based on the population of the
20unincorporated area of the county. Payment shall be determined
21by multiplying the total annual amount by the fraction equal to the
22population of cities and counties that are eligible for payments
23pursuant to Section 48690, divided by the population of the state.
24The board shall use the latest population estimates of the state
25generated by the Population Research Unit of the Department of
26Finance in making the calculations required by this paragraph.
27Notwithstanding subdivision (b) of Section 48656, the total annual
28amount shall equal eleven million dollars ($11,000,000), subject
29to subparagraph (B).

30(B) If sufficient funds are not available to initially issue full
31funding pursuant to subparagraph (A), the board shall provide
32funding as follows:

33(i) For the purposes set forth in this paragraph, one-half of the
34amount that remains in the fund after the expenditures are made
35pursuant to paragraphs (1) and (2) and subdivision (b). The board
36may utilize additional amounts from the fund, up to, but not
37exceeding, eleven million dollars ($11,000,000).

38(ii) As the board finds is fiscally appropriate, for the purposes
39set forth in Section 48656. The board shall give priority to the
P210  1distribution of funding in clause (i) for the purposes of this
2paragraph.

3(C) Pursuant to paragraph (2) of subdivision (d) of Section
448691, it is the intent of this paragraph that at least one million
5dollars ($1,000,000) be made available specifically for used oil
6filter collection and recycling programs.

7(4) To implement Section 48660.5, in an amount not to exceed
8two hundred thousand dollars ($200,000) annually.

9(5) For expenditures pursuant to Section 48656.

10(b) The money in the fund may be expended by the board for
11the administration of this chapter and by the department for
12inspections and reports pursuant to Section 48661, only upon
13appropriation by the Legislature in the annual Budget Act.

14(c) (1) Except as provided in paragraph (2), the money in the
15fund may be transferred to the Farm and Ranch Solid Waste
16Cleanup and Abatement Account in the General Fund, upon
17appropriation by the Legislature in the annual Budget Act, to pay
18the costs associated with implementing and operating the Farm
19and Ranch Solid Waste Cleanup and Abatement Grant Program
20established pursuant to Chapter 2.5 (commencing with Section
2148100).

22(2) The money in the fund attributable to a charge increase or
23adjustment made or authorized in an amendment to subdivision
24(a) of Section 48650 by the act adding this paragraph shall not be
25transferred to the Farm and Ranch Solid Waste Cleanup and
26Abatement Account.

begin insert

27(d) The money in the fund may be expended by the Department
28of Resources Recycling and Recovery, upon appropriation by the
29Legislature, pursuant to paragraph (4) of subdivision (a) of, and
30paragraph (4) of subdivision (b) of, Section 17001.

end insert
begin delete

31(d)

end delete

32begin insert(e)end insert Appropriations to the board to pay the costs necessary to
33administer this chapter shall not exceed three million dollars
34($3,000,000) annually.

begin delete

35(e)

end delete

36begin insert(f)end insert The Legislature hereby finds and declares its intent that three
37hundred fifty thousand dollars ($350,000) should be annually
38appropriated from the California Used Oil Recycling Fund in the
39annual Budget Act to the board, commencing with fiscal year
402010-11, for the purposes of Section 48655 and to conduct those
P211  1investigations and enforcement actions necessary to ensure a used
2oil storage facility or used oil transfer facility causes the used
3lubricating oil to be transported, as required by subdivision (a) of
4Section 48651.

5begin insert

begin insertSEC. 155.end insert  

end insert

begin insertSection 71116 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
6amended to read:end insert

7

71116.  

(a) The Environmental Justice Small Grant Program
8is hereby established under the jurisdiction of the California
9Environmental Protection Agency. The California Environmental
10Protection Agency shall adopt regulations for the implementation
11of this section. These regulations shall include, but need not be
12limited to, all of the following:

13(1) Specific criteria and procedures for the implementation of
14the program.

15(2) A requirement that each grant recipient submit a written
16report to the agency documenting its expenditures of the grant
17funds and the results of the funded project.

18(3) Provisions promoting the equitable distribution of grant
19funds in a variety of areas throughout the state, with the goal of
20making grants available to organizations that will attempt to
21address environmental justice issues.

22(b) The purpose of the program is to provide grants to eligible
23community groups, including, but not limited to, community-based,
24grassroots nonprofit organizations that are located in areas
25adversely affected by environmental pollution and hazards and
26that are involved in work to address environmental justice issues.

27(c) (1) Both of the following are eligible to receive moneys
28from the fund.

29(A) A nonprofit entity.

30(B) A federally recognized tribal government.

31(2) For the purposes of this section, “nonprofit entity” means
32any corporation, trust, association, cooperative, or other
33organization that meets all of the following criteria:

34(A) Is operated primarily for scientific, educational, service,
35charitable, or other similar purposes in the public interest.

36(B) Is not organized primarily for profit.

37(C) Uses its net proceeds to maintain, improve, or expand, or
38any combination thereof, its operations.

39(D) Is a tax-exempt organization under Section 501 (c)(3) of
40the federal Internal Revenue Code, or is able to provide evidence
P212  1to the agency that the state recognizes the organization as a
2nonprofit entity.

3(3) For the purposes of this section, “nonprofit entity”
4specifically excludes an organization that is a tax-exempt
5organization under Section 501 (c)(4) of the federal Internal
6Revenue Code.

7(d) Individuals may not receive grant moneys from the fund.

8(e) Grant recipients shall use the grant award to fund only the
9project described in the recipient’s application. Recipients shall
10not use the grant funding to shift moneys from existing or proposed
11projects to activities for which grant funding is prohibited under
12subdivision (g).

13(f) Grants shall be awarded on a competitive basis for projects
14that are based in communities with the most significant exposure
15to pollution. Grants shall be limited to any of the following
16purposes and no other:

17(1) Resolve environmental problems through distribution of
18information.

19(2) Identify improvements in communication and coordination
20among agencies and stakeholders in order to address the most
21significant exposure to pollution.

22(3) Expand the understanding of a community about the
23environmental issues that affect their community.

24(4) Develop guidance on the relative significance of various
25environmental risks.

26(5) Promote community involvement in the decisionmaking
27process that affects the environment of the community.

28(6) Present environmental data for the purposes of enhancing
29community understanding of environmental information systems
30and environmental information.

31(g) (1) The agency shall not award grants for, and grant funding
32shall not be used for, any of the following:

33(A) Other state grant programs.

34(B) Lobbying or advocacy activities relating to any federal,
35state, regional, or local legislative, quasi-legislative, adjudicatory,
36or quasi-judicial proceeding involving development or adoption
37of statutes, guidelines, rules, regulations, plans or any other
38governmental proposal, or involving decisions concerning siting,
39permitting, licensing, or any other governmental action.

P213  1(C) Litigation, administrative challenges, enforcement action,
2or any type of adjudicatory proceeding.

3(D) Funding of a lawsuit against any governmental entity.

4(E) Funding of a lawsuit against a business or a project owned
5by a business.

6(F) Matching state or federal funding.

7(G) Performance of any technical assessment for purposes of
8opposing or contradicting a technical assessment prepared by a
9public agency.

10(2) An organization’s use of funds from a grant awarded under
11this section to educate a community regarding an environmental
12justice issue or a governmental process does not preclude that
13organization from subsequent lobbying or advocacy concerning
14that same issue or governmental process, as long as the lobbying
15or advocacy is not funded by a grant awarded under this section.

16(h) The agency shall review, evaluate, and select grant recipients,
17 and screen grant applications to ensure that they meet the
18requirements of this section.

19(i) The maximum amount of a grant provided pursuant to this
20section may not exceedbegin delete twenty thousand dollars ($20,000).end deletebegin insert fifty
21thousand dollars ($50,000).end insert

22(j) For the purposes of this section, “environmental justice” has
23the same meaning as defined in Section 65040.12 of the
24Government Code.

begin delete

25(k) This section shall be implemented only during fiscal years
26for which an appropriation is provided for the purposes of this
27section in the annual Budget Act or in another statute.

end delete
begin insert

28(k) The Secretary for Environmental Protection may expend up
29to one million five hundred thousand dollars ($1,500,000) per year
30for the purposes of this section.

end insert
begin insert

31(l) Board, departments, and offices within the California
32Environmental Protection Agency may allocate funds from various
33special funds, settlements, and penalties to implement this program.

end insert
34begin insert

begin insertSEC. 156.end insert  

end insert

begin insertSection 379.6 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
35to read:end insert

36

379.6.  

(a) (1)  It is the intent of the Legislature that the
37self-generation incentive program increase deployment of
38distributed generation and energy storage systems to facilitate the
39integration of those resources into the electrical grid, improve
40efficiency and reliability of the distribution and transmission
P214  1system, and reduce emissions of greenhouse gases, peak demand,
2and ratepayer costs. It is the further intent of the Legislature that
3the commission, in future proceedings, provide for an equitable
4distribution of the costs and benefits of the program.

5(2)  The commission, in consultation with the Energy
6Commission, may authorize the annual collection of not more than
7the amount authorized for the self-generation incentive program
8in the 2008 calendar year, through December 31,begin delete 2014.end deletebegin insert 2019.end insert The
9commission shall require the administration of the program for
10distributed energy resources originally established pursuant to
11Chapter 329 of the Statutes of 2000 until January 1,begin delete 2016.end deletebegin insert 2021.end insert
12 On January 1,begin delete 2016,end deletebegin insert 2021,end insert the commission shall provide repayment
13of all unallocated funds collected pursuant to this section to reduce
14ratepayer costs.

15(3) The commission shall administer solar technologies
16separately, pursuant to the California Solar Initiative adopted by
17the commission inbegin delete Decision 06-01-024.end deletebegin insert Decisions 05-12-044 and
1806-01-024, as modified by Article 1 (commencing with Section
192851) of Chapter 9 of Part 2 of Division 1 of this code and Chapter
208.8 (commencing with Section 25780) of Division 15 of the Public
21Resources Code.end insert

22(b) begin insert(1)end insertbegin insertend insertEligibility for incentives under thebegin insert self-generation
23incentiveend insert
program shall be limited to distributed energy resources
24that the commission, in consultation with the State Air Resources
25Board, determines will achieve reductionsbegin insert in emissionsend insert of
26greenhousebegin delete gas emissionsend deletebegin insert gasesend insert pursuant to the California Global
27Warming Solutions Act of 2006 (Division 25.5 (commencing with
28Section 38500) of the Health and Safety Code).

begin insert

29(2) On or before July 1, 2015, the commission shall update the
30factor for avoided greenhouse gas emissions based on the most
31recent data available to the State Air Resources Board for
32greenhouse gas emissions from electricity sales in the
33self-generation incentive program administrators’ service areas
34as well as current estimates of greenhouse gas emissions over the
35useful life of the distributed energy resource, including
36consideration of the effects of the California Renewables Portfolio
37Standard.

end insert

38(c) Eligibility for the funding of any combustion-operated
39distributed generation projects using fossil fuel is subject to all of
40the following conditions:

P215  1(1)  An oxides of nitrogen (NOx) emissions rate standard of 0.07
2pounds per megawatthour and a minimum efficiency of 60 percent,
3or any other NOx emissions rate and minimum efficiency standard
4adopted by the State Air Resources Board. A minimum efficiency
5of 60 percent shall be measured as useful energy output divided
6by fuel input. The efficiency determination shall be based on 100
7percent load.

8(2) Combined heat and power units that meet the 60-percent
9efficiency standard may take a credit to meet the applicable NOx
10 emissions standard of 0.07 pounds per megawatthour. Credit shall
11be at the rate of one megawatthour for eachbegin delete 3.4 millionend deletebegin insert 3,400,000end insert
12 British thermal units (Btus) of heat recovered.

13(3) The customer receiving incentives shall adequately maintain
14and service the combined heat and power units so that during
15begin delete operation,end deletebegin insert operationend insert the system continues to meet or exceed the
16efficiency and emissions standards established pursuant to
17paragraphs (1) and (2).

18(4) Notwithstanding paragraph (1), a project that does not meet
19the applicable NOx emissions standard is eligible if it meets both
20of the following requirements:

21(A) The project operates solely on waste gas. The commission
22shall require a customer that applies for an incentive pursuant to
23this paragraph to provide an affidavit or other form of proof that
24specifies that the project shall be operated solely on waste gas.
25Incentives awarded pursuant to this paragraph shall be subject to
26refund and shall be refunded by the recipient to the extent the
27project does not operate on waste gas. As used in this paragraph,
28“waste gas” means natural gas that is generated as a byproduct of
29petroleum production operations and is not eligible for delivery
30to the utility pipeline system.

31(B) The air quality management district or air pollution control
32district, in issuing a permit to operate the project, determines that
33operation of the project will produce an onsite net air emissions
34benefit, compared to permitted onsite emissions if the project does
35not operate. The commission shall require the customer to secure
36the permit prior to receiving incentives.

37(d) In determining the eligibility for the self-generation incentive
38program, minimum system efficiency shall be determined either
39by calculating electrical and process heat efficiency as set forth in
40Section 216.6, or by calculating overall electrical efficiency.

begin insert

P216  1(e) Eligibility for incentives under the program shall be limited
2to distributed energy resource technologies that the commission
3determines meet all of the following requirements:

end insert
begin insert

4(1) The distributed energy resource technology is capable of
5reducing demand from the grid by offsetting some or all of the
6customer’s onsite energy load, including, but not limited to, peak
7electric demand.

end insert
begin insert

8(2) The distributed energy resource technology is commercially
9available.

end insert
begin insert

10(3) The distributed energy resource technology safely utilizes
11the existing transmission and distribution system.

end insert
begin insert

12(4) The distributed energy resource technology improves air
13quality by reducing criteria air pollutants.

end insert
begin insert

14(f) Recipients of the self-generation incentive program funds
15shall provide relevant data to the commission and the State Air
16Resources Board, upon request, and shall be subject to onsite
17inspection to verify equipment operation and performance,
18including capacity, thermal output, and usage to verify criteria
19air pollutant and greenhouse gas emissions performance.

end insert
begin insert

20(g) In administering the self-generation incentive program, the
21commission shall determine a capacity factor for each distributed
22generation system energy resource technology in the program.

end insert
begin delete

23(e)

end delete

24begin insert(h)end insertbegin insert(1)end insertbegin insertend insertIn administering the self-generation incentive program,
25the commission may adjust the amount of rebates and evaluate
26other public policy interests, including, but not limited to,
27ratepayers, energy efficiency, peak load reduction, load
28management, and environmental interests.

begin insert

29(2) The commission shall consider the relative amount and the
30cost of greenhouse gas emission reductions, peak demand
31reductions, system reliability benefits, and other measurable factors
32when allocating program funds between eligible technologies.

end insert
begin delete

33(f)

end delete

34begin insert(i)end insert The commission shall ensure that distributed generation
35resources are made available in the program for all ratepayers.

begin delete

36(g) (1)

end delete

37begin insert(j)end insert In administering the self-generation incentive program, the
38commission shall provide an additional incentive of 20 percent
39from existing program funds for the installation of eligible
P217  1distributed generation resourcesbegin delete from a California supplier.end delete
2begin insert manufactured in California.end insert

begin delete

3(2) “California supplier” as used in this subdivision means any
4sole proprietorship, partnership, joint venture, corporation, or other
5business entity that manufactures eligible distributed generation
6resources in California and that meets either of the following
7criteria:

end delete
begin delete

8(A) The owners or policymaking officers are domiciled in
9California and the permanent principal office, or place of business
10from which the supplier’s trade is directed or managed, is located
11in California.

end delete
begin delete

12(B) A business or corporation, including those owned by, or
13under common control of, a corporation, that meets all of the
14following criteria continuously during the five years prior to
15providing eligible distributed generation resources to a
16self-generation incentive program recipient:

end delete
begin delete

17(i) Owns and operates a manufacturing facility located in
18California that builds or manufactures eligible distributed
19generation resources.

end delete
begin delete

20(ii) Is licensed by the state to conduct business within the state.

end delete
begin delete

21(iii) Employs California residents for work within the state.

end delete
begin delete

22(3) For purposes of qualifying as a California supplier, a
23distribution or sales management office or facility does not qualify
24as a manufacturing facility.

end delete
begin delete

25(h)

end delete

26begin insert(k)end insert The costs of the program adopted and implemented pursuant
27to this section shall not be recovered from customers participating
28in the California Alternate Rates for Energy (CARE) program.

begin insert

29(l) The commission shall evaluate the overall success and impact
30of the self-generation incentive program based on the following
31performance measures:

end insert
begin insert

32(1) The amount of reductions of emissions of greenhouse gases.

end insert
begin insert

33(2) The amount of reductions of emissions of criteria air
34pollutants measured in terms of avoided emissions and reductions
35of criteria air pollutants represented by emissions credits secured
36for project approval.

end insert
begin insert

37(3) The amount of energy reductions measured in energy value.

end insert
begin insert

38(4) The amount of reductions of aggregate noncoincident
39customer peak demand.

end insert
begin insert

P218  1(5) The ratio of the electricity generated by distributed energy
2resource projects receiving incentives from the program to the
3electricity capable of being produced by those distributed energy
4resource projects, commonly known as a capacity factor.

end insert
begin insert

5(6) The value to the electrical transmission and distribution
6system measured in avoided costs of transmission and distribution
7upgrades and replacement.

end insert
begin insert

8(7) The ability to improve onsite electricity reliability as
9compared to onsite electricity reliability before the self-generation
10incentive program technology was placed in service.

end insert
11begin insert

begin insertSEC. 156.5.end insert  

end insert

begin insertSection 1807 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is
12amended to read:end insert

13

1807.  

begin deleteAny end deletebegin insert(a)end insertbegin insertend insertbegin insertAn end insertaward made under this article shall be paid
14by the public utilitybegin delete whichend deletebegin insert thatend insert is the subject of the hearing,
15investigation, or proceeding, as determined by the commission,
16within 30 days. Notwithstanding any otherbegin delete provision ofend delete law,begin delete anyend delete
17begin insert anend insert award paid by a public utility pursuant to this article shall be
18allowed by the commission as an expense for the purpose of
19establishing rates of the public utility by way of a dollar-for-dollar
20adjustment to rates imposed by the commission immediately on
21the determination of the amount of the award, so that the amount
22of the award shall be fully recovered within one year from the date
23of the award.

begin insert

24(b) Due to the bankruptcy of Sacramento Natural Gas Storage,
25the commission’s intervenor compensation award to the Avondale
26Glen Elder Neighborhood Association in A.07-04-013 has been
27reduced to a fraction of the amount awarded. In this limited
28circumstance, the commission may pay to the Avondale Glen Elder
29Neighborhood Association the difference between the amount
30received from the bankruptcy court and the amount awarded by
31the commission by increasing the fees collected in Section 401 for
32the limited purpose of D.13-11-018.

end insert
33begin insert

begin insertSEC. 156.7.end insert  

end insert

begin insertSection 2851 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is
34amended to read:end insert

35

2851.  

(a) In implementing the California Solar Initiative, the
36commission shall do all of the following:

37(1) (A) The commission shall authorize the award of monetary
38incentives for up to the first megawatt of alternating current
39generated by solar energy systems that meet the eligibility criteria
40established by the Energy Commission pursuant to Chapter 8.8
P219  1(commencing with Section 25780) of Division 15 of the Public
2Resources Code. The commission shall determine the eligibility
3of a solar energy system, as defined in Section 25781 of the Public
4Resources Code, to receive monetary incentives until the time the
5Energy Commission establishes eligibility criteria pursuant to
6Section 25782. Monetary incentives shall not be awarded for solar
7energy systems that do not meet the eligibility criteria. The
8incentive level authorized by the commission shall decline each
9year following implementation of the California Solar Initiative,
10at a rate of no less than an average of 7 percent per year, and,
11except as provided in subparagraph (B), shall be zero as of
12December 31, 2016. The commission shall adopt and publish a
13schedule of declining incentive levels no less than 30 days in
14advance of the first decline in incentive levels. The commission
15may develop incentives based upon the output of electricity from
16the system, provided those incentives are consistent with the
17declining incentive levels of this paragraph and the incentives
18apply to only the first megawatt of electricity generated by the
19system.

20(B) The incentive level for the installation of a solar energy
21system pursuant to Section 2852 shall be zero as of December 31,
222021.

23(2) The commission shall adopt a performance-based incentive
24program so that by January 1, 2008, 100 percent of incentives for
25solar energy systems of 100 kilowatts or greater and at least 50
26percent of incentives for solar energy systems of 30 kilowatts or
27greater are earned based on the actual electrical output of the solar
28energy systems. The commission shall encourage, and may require,
29performance-based incentives for solar energy systems of less than
3030 kilowatts. Performance-based incentives shall decline at a rate
31of no less than an average of 7 percent per year. In developing the
32performance-based incentives, the commission may:

33(A) Apply performance-based incentives only to customer
34classes designated by the commission.

35(B) Design the performance-based incentives so that customers
36may receive a higher level of incentives than under incentives
37based on installed electrical capacity.

38(C) Develop financing options that help offset the installation
39costs of the solar energy system, provided that this financing is
P220  1ultimately repaid in full by the consumer or through the application
2of the performance-based rebates.

3(3) By January 1, 2008, the commission, in consultation with
4the Energy Commission, shall require reasonable and cost-effective
5energy efficiency improvements in existing buildings as a condition
6of providing incentives for eligible solar energy systems, with
7appropriate exemptions or limitations to accommodate the limited
8financial resources of low-income residential housing.

9(4) Notwithstanding subdivision (g) of Section 2827, the
10commission may develop a time-variant tariff that creates the
11maximum incentive for ratepayers to install solar energy systems
12 so that the system’s peak electricity production coincides with
13California’s peak electricity demands and that ensures that
14ratepayers receive due value for their contribution to the purchase
15of solar energy systems and customers with solar energy systems
16continue to have an incentive to use electricity efficiently. In
17developing the time-variant tariff, the commission may exclude
18customers participating in the tariff from the rate cap for residential
19customers for existing baseline quantities or usage by those
20customers of up to 130 percent of existing baseline quantities, as
21required by Section 739.9. Nothing in this paragraph authorizes
22the commission to require time-variant pricing for ratepayers
23without a solar energy system.

24(b) Notwithstanding subdivision (a), in implementing the
25California Solar Initiative, the commission may authorize the award
26of monetary incentives for solar thermal and solar water heating
27devices, in a total amount up to one hundred million eight hundred
28thousand dollars ($100,800,000).

29(c) (1) In implementing the California Solar Initiative, the
30commission shall not allocate more than fifty million dollars
31($50,000,000) to research, development, and demonstration that
32explores solar technologies and other distributed generation
33technologies that employ or could employ solar energy for
34generation or storage of electricity or to offset natural gas usage.
35Any program that allocates additional moneys to research,
36development, and demonstration shall be developed in
37collaboration with the Energy Commission to ensure there is no
38duplication of efforts, and adopted by the commission through a
39rulemaking or other appropriate public proceeding. Any grant
40awarded by the commission for research, development, and
P221  1demonstration shall be approved by the full commission at a public
2meeting. This subdivision does not prohibit the commission from
3 continuing to allocate moneys to research, development, and
4demonstration pursuant to the self-generation incentive program
5for distributed generation resources originally established pursuant
6to Chapter 329 of the Statutes of 2000, as modified pursuant to
7Section 379.6.

8(2) The Legislature finds and declares that a program that
9provides a stable source of monetary incentives for eligible solar
10energy systems will encourage private investment sufficient to
11make solar technologies cost effective.

12(3) On or before June 30, 2009, and by June 30th of every year
13thereafter, the commission shall submit to the Legislature an
14assessment of the success of the California Solar Initiative program.
15That assessment shall include the number of residential and
16commercial sites that have installed solar thermal devices for which
17an award was made pursuant to subdivision (b) and the dollar value
18 of the award, the number of residential and commercial sites that
19have installed solar energy systems, the electrical generating
20capacity of the installed solar energy systems, the cost of the
21program, total electrical system benefits, including the effect on
22electrical service rates, environmental benefits, how the program
23affects the operation and reliability of the electrical grid, how the
24program has affected peak demand for electricity, the progress
25made toward reaching the goals of the program, whether the
26program is on schedule to meet the program goals, and
27recommendations for improving the program to meet its goals. If
28the commission allocates additional moneys to research,
29development, and demonstration that explores solar technologies
30and other distributed generation technologies pursuant to paragraph
31(1), the commission shall include in the assessment submitted to
32the Legislature, a description of the program, a summary of each
33award made or project funded pursuant to the program, including
34the intended purposes to be achieved by the particular award or
35project, and the results of each award or project.

36(d) (1) The commission shall not impose any charge upon the
37consumption of natural gas, or upon natural gas ratepayers, to fund
38 the California Solar Initiative.

39(2) Notwithstanding any other provision of law, any charge
40imposed to fund the program adopted and implemented pursuant
P222  1to this section shall be imposed upon all customers not participating
2in the California Alternate Rates for Energy (CARE) or family
3electric rate assistance (FERA) programs, including those
4residential customers subject to the rate limitation specified in
5Section 739.9 for existing baseline quantities or usage up to 130
6percent of existing baseline quantities of electricity.

7(3) The costs of the program adopted and implemented pursuant
8to this sectionbegin delete mayend deletebegin insert shallend insert not be recovered from customers
9participating in the California Alternate Rates for Energy or CARE
10program established pursuant to Section 739.1, except to the extent
11that program costs are recovered out of the nonbypassable system
12benefits charge authorized pursuant to Section 399.8.

13(e) Except as provided in subdivision (f),begin insert inend insert implementing the
14California Solar Initiative, the commission shall ensure that the
15total cost over the duration of the program does not exceed three
16billion five hundred fifty million eight hundred thousand dollars
17($3,550,800,000). Except as provided in subdivision (f), financial
18components of the California Solar Initiative shall consist of the
19following:

20(1) Programs under the supervision of the commission funded
21by charges collected from customers of San Diego Gas and Electric
22Company, Southern California Edison Company, and Pacific Gas
23and Electric Company. Except as provided in subdivision (f), the
24total cost over the duration of these programs shall not exceed two
25billion three hundred sixty-six million eight hundred thousand
26dollars ($2,366,800,000) and includes moneys collected directly
27into a tracking account for support of the California Solar Initiative.

28(2) Programs adopted, implemented, and financed in the amount
29of seven hundred eighty-four million dollars ($784,000,000), by
30charges collected by local publicly owned electric utilities pursuant
31to Section 2854. Nothing in this subdivision shall give the
32commission power and jurisdiction with respect to a local publicly
33owned electric utility or its customers.

34(3) Programs for the installation of solar energy systems on new
35construction (New Solar Homes Partnership Program),
36administered by the Energy Commission, and funded by charges
37in the amount of four hundred million dollars ($400,000,000),
38collected from customers of San Diego Gas and Electric Company,
39Southern California Edison Company, and Pacific Gas and Electric
40Company. If the commission is notified by the Energy Commission
P223  1that funding available pursuant to Section 25751 of the Public
2Resources Code for the New Solar Homes Partnership Program
3begin delete hasend deletebegin insert and any other funding for the purposes of this paragraph haveend insert
4 been exhausted, the commission may require an electrical
5corporation to continue administration of the program pursuant to
6the guidelines established for the program by the Energy
7Commission, until the funding limit authorized by this paragraph
8has been reached. The commission, in consultation with the Energy
9Commission, shall supervise the administration of the continuation
10of the New Solar Homes Partnership Program by an electrical
11corporation. An electrical corporation may elect to have a third
12party, including the Energy Commission, administer the utility’s
13continuation of the New Solar Homes Partnership Program. After
14the exhaustion of funds, the Energy Commission shall notify the
15Joint Legislative Budget Committee 30 days prior to the
16continuation of the program.

17(4) The changes made to this subdivision by Chapter 39 of the
18Statutes of 2012 do not authorize the levy of a charge or any
19increase in the amount collected pursuant to any existing charge,
20nor do the changes add to, or detract from, the commission’s
21existing authority to levy or increase charges.

22(f) Upon the expenditure or reservation in any electrical
23corporation’s service territory of the amount specified in paragraph
24(1) of subdivision (e) for low-income residential housing programs
25pursuant to subdivision (c) of Section 2852, the commission shall
26authorize the continued collection of the charge for the purposes
27of Section 2852. The commission shall ensure that the total amount
28collected pursuant to this subdivision does not exceed one hundred
29eight million dollars ($108,000,000). Upon approval by the
30commission, an electrical corporation may use amounts collected
31pursuant to subdivision (e) for purposes of funding the general
32market portion of the California Solar Initiative, that remain
33unspent and unencumbered after December 31, 2016, to reduce
34the electrical corporation’s portion of the total amount collected
35pursuant to this subdivision.

36begin insert

begin insertSEC. 157.end insert  

end insert

begin insertSection 46001.5 is added to the end insertbegin insertRevenue and
37Taxation Code
end insert
begin insert, to read:end insert

begin insert
38

begin insert46001.5.end insert  

(a) The board may adopt regulations relating to the
39administration and enforcement of this part pursuant to the
40Administrative Procedure Act (Chapter 3.5 (commencing with
P224  1Section 11340) of Part 1 of Division 3 of Title 2 of the Government
2Code).

3(b) An emergency regulation adopted pursuant to amendments
4made to this part by Senate Bill 861 of the 2013-14 Regular
5Session shall be deemed an emergency and necessary to avoid
6serious harm to the public peace, health, safety, or general welfare
7for the purposes of Sections 11346.1 and 11349.6 of the
8Government Code, and the board is hereby exempt from the
9requirement that it describe facts showing the need for immediate
10action and from review by the Office of Administrative Law.

end insert
11begin insert

begin insertSEC. 158.end insert  

end insert

begin insertSection 46002 of the end insertbegin insertRevenue and Taxation Codeend insert
12begin insert is amended to read:end insert

13

46002.  

The collection and administration of the fees referred
14to in Sections 46051 and 46052 shall be governed by the definitions
15contained in Chapter 7.4 (commencing with Section 8670.1) of
16Division 1 of Title 2 of the Governmentbegin delete Code, unless expressly
17otherwise provided by the definitions contained inend delete
begin insert Code andend insert this
18part.

19begin insert

begin insertSEC. 159.end insert  

end insert

begin insertSection 46006 of the end insertbegin insertRevenue and Taxation Codeend insert
20begin insert is amended to read:end insert

21

46006.  

“Administrator” means thebegin delete chief deputy director of the
22Department of Fish and Gameend delete
begin insert personend insert appointed by the Governor
23pursuant to Section 8670.4 of the Government Codebegin insert to implement
24the Lempert-Keene-Seastrand Oil Spill Prevention and Response
25Act (Chapter 7.4 (commencing with Section 8670.1) of Division 1
26of Title 2 of the Government Code)end insert
.

27begin insert

begin insertSEC. 160.end insert  

end insert

begin insertSection 46007 of the end insertbegin insertRevenue and Taxation Codeend insert
28begin insert is amended to read:end insert

29

46007.  

“Barges” meansbegin delete any relatively flat-bottomed,
30waterborne vessel which is propelled by being pulled or pushed
31by another vessel, and is constructed or adapted to carry crude oil
32or petroleum products in commercial quantities as cargo.end delete
begin insert vessels
33that carry oil in commercial quantities as cargo but are not
34equipped with a means of self-propulsion.end insert

35begin insert

begin insertSEC. 161.end insert  

end insert

begin insertSection 46008 of the end insertbegin insertRevenue and Taxation Codeend insert
36begin insert is repealed.end insert

begin delete
37

46008.  

“Barrel” means 42 gallons of crude oil or petroleum
38products.

end delete
39begin insert

begin insertSEC. 162.end insert  

end insert

begin insertSection 46010 of the end insertbegin insertRevenue and Taxation Codeend insert
40begin insert is amended to read:end insert

P225  1

46010.  

“Crude oil” means petroleum in an unrefined or natural
2state, including condensate and natural gasolinebegin insert, and including
3substances that enhance, cut, thin, or reduce viscosityend insert
.

4begin insert

begin insertSEC. 163.end insert  

end insert

begin insertSection 46011 of the end insertbegin insertRevenue and Taxation Codeend insert
5begin insert is repealed.end insert

begin delete
6

46011.  

“Discharge” means any release of at least one barrel of
7oil into marine waters which is not authorized by any federal, state,
8or local government entity.

end delete
9begin insert

begin insertSEC. 164.end insert  

end insert

begin insertSection 46011 is added to the end insertbegin insertRevenue and Taxation
10Code
end insert
begin insert, to read:end insert

begin insert
11

begin insert46011.end insert  

(a) “Facility” means any of the following located in
12state waters or located where an oil spill may impact state waters:

13(1) A building, structure, installation, or equipment used in oil
14exploration, oil well drilling operations, oil production, oil refining,
15oil storage, oil gathering, oil processing, oil transfer, oil
16distribution, or oil transportation.

17(2) A marine terminal.

18(3) A pipeline that transports oil.

19(4) A railroad that transports oil as cargo.

20(5) A drill ship, semisubmersible drilling platform, jack-up type
21drilling rig, or any other floating or temporary drilling platform.

22(b) “Facility” does not include any of the following:

23(1) A vessel, except a vessel located and used for any purpose
24described in paragraph (5) of subdivision (a).

25(2) An owner or operator subject to Chapter 6.67 (commencing
26with Section 25270) of or Chapter 6.75 (commencing with Section
2725299.10) of Division 20 of the Health and Safety Code.

28(3) Operations on a farm, nursery, logging site, or construction
29site that are either of the following:

30(A) Do not exceed 20,000 gallons in a single storage tank.

31(B) Have a useable tank storage capacity not exceeding 75,000
32gallons.

33(4) A small craft refueling dock.

end insert
34begin insert

begin insertSEC. 165.end insert  

end insert

begin insertSection 46013 of the end insertbegin insertRevenue and Taxation Codeend insert
35begin insert is amended to read:end insert

36

46013.  

“Feepayer” means any personbegin delete who may beend delete liable for
37the payment of a fee imposed by either Section 8670.40 or 8670.48
38of the Government Code.

39begin insert

begin insertSEC. 166.end insert  

end insert

begin insertSection 46014 of the end insertbegin insertRevenue and Taxation Codeend insert
40begin insert is repealed.end insert

begin delete
P226  1

46014.  

“Independent crude oil producer” means any person or
2entity producing crude oil within this state who does not refine
3crude oil into product, and who does not own or operate any retail
4gasoline marketing facilities.

end delete
5begin insert

begin insertSEC. 167.end insert  

end insert

begin insertSection 46015 of the end insertbegin insertRevenue and Taxation Codeend insert
6begin insert is repealed.end insert

begin delete
7

46015.  

“Local government” means any chartered or general
8law city, chartered or general law county, or any city and county.

end delete
9begin insert

begin insertSEC. 168.end insert  

end insert

begin insertSection 46016 of the end insertbegin insertRevenue and Taxation Codeend insert
10begin insert is repealed.end insert

begin delete
11

46016.  

“Marine facility” means any facility of any kind, other
12than a vessel, which is or was used for the purposes of exploring
13for, drilling for, producing, storing, handling, transferring,
14processing, refining, or transporting crude oil or petroleum products
15and is located in marine waters, or is located where a discharge
16could impact marine waters unless the facility, (1) is subject to
17Chapter 6.67 (commencing with Section 25270) or Chapter 6.75
18(commencing with Section 25299.10) of Division 20 of the Health
19and Safety Code or, (2) is placed on a farm, nursery, logging site,
20small craft refueling dock as defined in Section 8670.3 of the
21Government Code, or construction site and does not exceed 20,000
22gallons in a single storage tank. For the purposes of this part, a
23drill ship, semisubmersible drilling platform, jack-up type drilling
24rig, or any other floating or temporary drilling platform is a “marine
25facility.”

end delete
26begin insert

begin insertSEC. 169.end insert  

end insert

begin insertSection 46017 of the end insertbegin insertRevenue and Taxation Codeend insert
27begin insert is amended to read:end insert

28

46017.  

“Marine terminal” means anybegin delete marineend delete facility used for
29transferring crude oil or petroleum products to or from tankers or
30barges. Forbegin delete theend delete purposes of this part, a marine terminal includes
31all piping not integrally connected to a tank facility as defined in
32subdivisionbegin delete (k)end deletebegin insert (n)end insert of Section 25270.2 of the Health and Safety
33Code.

34begin insert

begin insertSEC. 170.end insert  

end insert

begin insertSection 46018 of the end insertbegin insertRevenue and Taxation Codeend insert
35begin insert is repealed.end insert

begin delete
36

46018.  

“Marine waters” means those waters subject to tidal
37influence, and includes the waterways used for waterborne
38commercial vessel traffic to the Port of Sacramento and the Port
39of Stockton.

end delete
P227  1begin insert

begin insertSEC. 171.end insert  

end insert

begin insertSection 46018 is added to the end insertbegin insertRevenue and Taxation
2Code
end insert
begin insert, to read:end insert

begin insert
3

begin insert46018.end insert  

“Oil” means any kind of petroleum, liquid
4hydrocarbons, or petroleum products or any fraction or residues
5therefrom, including, but not limited to, crude oil, bunker fuel,
6gasoline, diesel fuel, aviation fuel, oil sludge, oil refuse, oil mixed
7with waste, and liquid distillates from unprocessed natural gas.

end insert
8begin insert

begin insertSEC. 172.end insert  

end insert

begin insertSection 46019 of the end insertbegin insertRevenue and Taxation Codeend insert
9begin insert is repealed.end insert

begin delete
10

46019.  

(a) “Operator” means any of the following:

11(1) Any person who owns, operates, charters by demise, or
12leases a vessel.

13(2) Any person who owns or operates a marine facility.

14(3) Any person who owns or operates a marine pipeline.

15(4) Any person who owns or operates a refinery.

16(b) “Operator” does not include a person who, without
17participating in the management of a vessel or marine facility,
18holds indicia of ownership primarily to protect his or her security
19interest in the vessel or marine facility. Also, “operator” does not
20include any person who owns the land beneath a marine facility
21or the facility itself if the person is not involved in the operation
22of the facility.

end delete
23begin insert

begin insertSEC. 173.end insert  

end insert

begin insertSection 46023 of the end insertbegin insertRevenue and Taxation Codeend insert
24begin insert is amended to read:end insert

25

46023.  

“Refinery” means a facilitybegin delete or location whichend deletebegin insert thatend insert
26 refines crude oil, including condensate and natural gasoline, into
27petroleum products, lubricating oils, coke, or asphalt.

28begin insert

begin insertSEC. 174.end insert  

end insert

begin insertSection 46024 of the end insertbegin insertRevenue and Taxation Codeend insert
29begin insert is repealed.end insert

begin delete
30

46024.  

“Responsible party” or “party responsible” means any
31of the following:

32(a) The owner or transporter of crude oil or petroleum products
33or a person or entity accepting responsibility for the crude oil or
34petroleum products.

35(b) The owner, operator, or lessee of, or person who charters
36by demise, any vessel or marine facility, or a person or entity
37accepting responsibility for the vessel or marine facility.

end delete
38begin insert

begin insertSEC. 175.end insert  

end insert

begin insertSection 46025 of the end insertbegin insertRevenue and Taxation Codeend insert
39begin insert is repealed.end insert

begin delete
P228  1

46025.  

“Spill” means any release of at least one barrel of crude
2oil or petroleum products into marine waters which is not
3authorized by any federal, state, or local government entity.

end delete
4begin insert

begin insertSEC. 176.end insert  

end insert

begin insertSection 46027 of the end insertbegin insertRevenue and Taxation Codeend insert
5begin insert is repealed.end insert

begin delete
6

46027.  

“State oil spill contingency plan” means the California
7oil spill contingency plan prepared pursuant to Article 3.5
8(commencing with Section 8574.1) of Chapter 7 of Division 1 of
9Title 2 of the Government Code.

end delete
10begin insert

begin insertSEC. 177.end insert  

end insert

begin insertSection 46027 is added to the end insertbegin insertRevenue and Taxation
11Code
end insert
begin insert, to read:end insert

begin insert
12

begin insert46027.end insert  

“State waters” or “waters of the state” means any
13surface water, including saline waters, marine waters, and
14freshwaters, within the boundaries of the state but does not include
15groundwater.

end insert
16begin insert

begin insertSEC. 178.end insert  

end insert

begin insertSection 46028 of the end insertbegin insertRevenue and Taxation Codeend insert
17begin insert is amended to read:end insert

18

46028.  

“Tanker” meansbegin delete any self-propelled, waterborne vessel,end delete
19begin insert a self-propelled vessel that isend insert constructed or adapted for the
20carriage ofbegin delete crudeend delete oilbegin delete or petroleum productsend delete in bulk or in
21commercial quantities as cargo.

22begin insert

begin insertSEC. 179.end insert  

end insert

begin insertSection 46101 of the end insertbegin insertRevenue and Taxation Codeend insert
23begin insert is amended to read:end insert

24

46101.  

Every person who operatesbegin delete an oilend deletebegin insert aend insert refinery in this state,
25a marine terminal inbegin delete marineend delete watersbegin insert of the stateend insert, or operates a
26pipelinebegin delete across, under, or through marine waters or any pipelineend delete
27 to transport crude oilbegin insert or petroleum productsend insert out of the state shall
28register with the board.

29begin insert

begin insertSEC. 180.end insert  

end insert

begin insertSection 5024 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to
30read:end insert

31

5024.  

(a) A person described in Section 5101 may also apply
32for a set of commemorative collegiate reflectorized license plates,
33and the department shall issue those special license plates in lieu
34of the regular license plates. The collegiate reflectorized plates
35shall be of a distinctive design, and shall be available in a special
36series of letters or numbers, or both, as determined by the
37department. The collegiate reflectorized plates shall also contain
38the name of the participating institution as well as the reflectorized
39logotype, motto, symbol, or other distinctive design, as approved
40by the department, representing the participating university or
P229  1college selected by the applicant. The department may issue the
2commemorative collegiate reflectorized license plates as
3environmental license plates, as defined in Section 5103, in a
4 combination of numbers or letters, or both, as requested by the
5owner or lessee of the vehicle.

6(b) Any public or private postsecondary educational institution
7in the state, which is accredited or has been accepted as a
8recognized candidate for accreditation by the Western Association
9of Schools and Colleges, may indicate to the department its
10decision to be included in the commemorative collegiate license
11plate program and submit its distinctive design for the logotype,
12motto, symbol, or other design. However, no public or private
13postsecondary educational institution may be included in the
14program until not less than 5,000 applications are received for
15license plates containing that institution’s logotype, motto, symbol,
16or other design. Each participating institution shall collect and hold
17applications for collegiate license plates until it has received at
18least 5,000 applications. Once the institution has received at least
195,000 applications, it shall submit the applications, along with the
20necessary fees, to the department. Upon receiving the first
21application, the institution shall have one calendar year to receive
22the remaining required applications. If, after that one calendar
23year, 5,000 applications have not been received, the institution
24shall refund to all applicants any fees or deposits which have been
25collected.

26(c) In addition to the regular fees for an original registration, a
27renewal of registration, or a transfer of registration, the following
28commemorative collegiate license plate fees shall be paid:

29(1) Fifty dollars ($50) for the initial issuance of the plates. These
30plates shall be permanent and shall not be required to be replaced.

31(2) Forty dollars ($40) for each renewal of registration which
32includes the continued display of the plates.

33(3) Fifteen dollars ($15) for transfer of the plates to another
34vehicle.

35(4) Thirty-five dollars ($35) for replacement plates, if the plates
36become damaged or unserviceable.

37(d) When payment of renewal fees is not required as specified
38in Section 4000, or when the person determines to retain the
39commemorative collegiate license plates upon sale, trade, or other
40release of the vehicle upon which the plates have been displayed,
P230  1the person shall notify the department and the person may retain
2the plates.

3(e) Of the revenue derived from the additional special fees
4provided in this section, less costs incurred by the department
5pursuant to this section, one-half shall be deposited in the
6California Collegiate License Plate Fund, which is hereby created,
7and one-half shall be deposited in thebegin delete Resources License Plate
8Fund, which is hereby created.end delete
begin insert California Environmental License
9Plate Fund.end insert

10(f) The money in the California Collegiate License Plate Fund
11is, notwithstanding Section 13340 of the Government Code,
12continuously appropriated to the Controller for allocation as
13follows:

14(1) To the governing body of participating public institutions
15in the proportion that funds are collected on behalf of each, to be
16used for need-based scholarships, distributed according to federal
17student aid guidelines.

18(2) With respect to funds collected on behalf of accredited
19 nonprofit, private, and independent colleges and universities in
20the state, to the California Student Aid Commission for grants to
21students at those institutions, in the proportion that funds are
22collected on behalf of each institution, who demonstrate eligibility
23and need in accordance with the Cal Grant Program pursuant to
24begin delete Article 3 (commencing with Section 69530) of Chapter 2end deletebegin insert Chapter
251.7 (commencing with Section 69430)end insert
of Part 42 of the Education
26Code, but who did not receive an award based on a listing prepared
27by the California Student Aid Commission.

28(g) The scholarships and grants shall be awarded without regard
29to race, religion, creed, sex, or age.

begin delete

30(h) The money in the Resources License Plate Fund is available,
31upon appropriation, for the purposes of natural resources
32preservation, enhancement, and restoration.

33(i) All revenues deposited in, and expenditures from, the
34California Collegiate License Plate Fund shall be audited by the
35Auditor General on December 1, 1993, and December 1, 1995.

end delete
begin insert

36(h) The Resources License Plate Fund is hereby abolished and
37all remaining funds shall be transferred to the California
38Environmental License Plate Fund effective July 1, 2014.

end insert
39begin insert

begin insertSEC. 181.end insert  

end insert

begin insertSection 174 of the end insertbegin insertWater Codeend insertbegin insert is amended to read:end insert

P231  1

174.  

begin insert(a)end insertbegin insertend insertThe Legislature hereby finds and declares that in order
2to provide for the orderly and efficient administration of the water
3resources of thebegin delete stateend deletebegin insert state,end insert it is necessary to establish a control
4boardbegin delete whichend deletebegin insert thatend insert shall exercise the adjudicatory and regulatory
5functions of the state in the field of water resources.

begin delete

6It

end delete

7begin insert(b)end insertbegin insertend insertbegin insertItend insert is also the intention of the Legislature to combine the
8water rights and the water pollution and water quality functions
9of state government to provide for consideration of water pollution
10and water quality, and availability of unappropriated water
11whenever applications for appropriation of water are granted or
12waste discharge requirements or water quality objectives are
13established.

begin insert

14(c) This section shall become inoperative on July 1, 2014, and,
15as of January 1, 2015, is repealed, unless a later enacted statute,
16that becomes operative on or before January 1, 2015, deletes or
17extends the dates on which it becomes inoperative and is repealed.

end insert
18begin insert

begin insertSEC. 182.end insert  

end insert

begin insertSection 174 is added to the end insertbegin insertWater Codeend insertbegin insert, to read:end insert

begin insert
19

begin insert174.end insert  

(a) The Legislature hereby finds and declares that in
20order to provide for the orderly and efficient administration of the
21water resources of the state, it is necessary to establish a control
22board that shall exercise the adjudicatory and regulatory functions
23of the state in the field of water resources.

24(b) It is also the intention of the Legislature to combine the
25water rights, water quality, and drinking water functions of the
26state government to provide for coordinated consideration of water
27rights, water quality, and safe and reliable drinking water.

28(c) This section shall become operative on July 1, 2014.

end insert
29begin insert

begin insertSEC. 183.end insert  

end insert

begin insertSection 10783 of the end insertbegin insertWater Codeend insertbegin insert is amended to
30read:end insert

31

10783.  

(a) The Legislature finds and declares that protecting
32the state’s groundwater for beneficial use, particularly sources and
33potential sources of drinking water, is of paramount concern.

34(b) The Legislature further finds and declares that strategic,
35scientifically based groundwater monitoring of the state’s oil and
36gas fields is critical to allaying the public’s concerns regarding
37well stimulation treatments of oil and gas wells.

38(c) On or before July 1, 2015, in order to assess the potential
39effects of well stimulation treatments, as defined in Article 3
40(commencing with Section 3150) of Chapter 1 of Division 3 of
P232  1the Public Resources Code, on the state’s groundwater resources
2 in a systematic way, the state board shall develop model
3groundwater monitoringbegin delete criteriaend deletebegin insert criteria,end insert to be implemented either
4on a well-by-well basis for a well subject to well stimulation
5begin delete treatment,end deletebegin insert treatmentend insert or on a regional scale. The model criteria shall
6address a range of spatial sampling scales from methods for
7conducting appropriate monitoring on individual oil and gas wells
8subject to a well stimulation treatment, to methods for conducting
9a regional groundwater monitoring program. The state board shall
10take into consideration the recommendations received pursuant to
11subdivision (d) and shall include in the model criteria, at a
12minimum, the components identified in subdivision (f). The state
13board shall prioritize monitoring of groundwater that is or has the
14potential to be a source of drinking water, but shall protect all
15waters designated for any beneficial use.

16(d) The state board, in consultation with the Department of
17Conservation, Division of Oil, Gas, and Geothermal Resources,
18shall seek the advice of experts on the design of the model
19groundwater monitoring criteria. The experts shall assess and make
20recommendations to the state board on the model criteria. These
21recommendations shall prioritize implementation of regional
22groundwater monitoring programs statewide, as warranted, based
23upon the prevalence of well stimulation treatments of oil and gas
24wells and groundwater suitable as a source of drinking water.

25(e) The state board shall also seek the advice of stakeholders
26representing the diverse interests of the oil- and gas-producing
27areas of the state. The stakeholders shall include the oil and gas
28industry, agriculture, environmental justice, and local government,
29among others, with regional representation commensurate with
30the intensity of oil and gas development in that area. The
31stakeholders shall also make recommendations to the state board
32regarding the development and implementation of groundwater
33monitoring criteria, including priority locations for implementation.

34(f) The scope and nature of the model groundwater monitoring
35criteria shall include the determination of all of the following:

36(1) An assessment of the areas to conduct groundwater quality
37monitoring and their appropriate boundaries.

38(2) A list of the constituents to measure and assess water quality.

39(3) The location, depth, and number of monitoring wells
40necessary to detect groundwater contamination at spatial scales
P233  1ranging from an individual oil and gas well to a regional
2groundwater basin including one or more oil and gas fields.

3(4) The frequency and duration of the monitoring.

4(5) A threshold criteria indicating a transition from well-by-well
5monitoring to a regional monitoring program.

6(6) Data collection and reporting protocols.

7(7) Public access to the collected data under paragraph (6).

8(g) Factors to consider in addressing subdivision (f) shall
9include, but are not limited to, all of the following:

10(1) The existing quality and existing and potential use of the
11groundwater.

12(2) Groundwater that is not a source of drinking water consistent
13with the United States Environmental Protection Agency’s
14definition of an Underground Source of Drinking Water as
15containing less than 10,000 milligrams per liter total dissolved
16solids in groundwater (40 C.F.R. 144.3), including exempt aquifers
17pursuant to Section 146.4 of Title 40 of the Code of Federal
18Regulations.

19(3) Proximity to human population, public water service wells,
20and private groundwater use, if known.

21(4) The presence of existing oil and gas production fields,
22including the distribution, physical attributes, and operational status
23of oil and gas wells therein.

24(5) Events, including well stimulation treatments and oil and
25gas well failures, among others, that have the potential to
26contaminate groundwater, appropriate monitoring to evaluate
27whether groundwater contamination can be attributable to a
28particular event, and any monitoring changes necessary if
29groundwater contamination is observed.

30(h) (1) On or before January 1, 2016, the state board or
31appropriate regional board shall begin implementation of the
32regional groundwater monitoring programs based upon the
33begin delete developedend deletebegin insert modelend insert criteriabegin insert developedend insert under subdivision (c).

34(2) In the absence of state implementation of a regional
35groundwater monitoring program, a well owner or operator may
36develop and implement an area-specific groundwater monitoring
37begin delete programend deletebegin insert program, for the purpose of subparagraph (D) of
38paragraph (3) of subdivision (d) of Section 3160 of the Public
39Resources Code,end insert
based upon thebegin delete developedend deletebegin insert modelend insert criteria
40begin insert developedend insert under subdivision (c), subject to approval by the state
P234  1or regional board,begin delete if applicable,end delete and that meets the requirements
2of this section.

3(i) The model criteria for either a well-by-well basis for a well
4subject to well stimulation treatment, or for a regional groundwater
5monitoring program, shall be used to satisfy the permitting
6requirements for well stimulation treatments on oil and gas wells
7pursuant to Section 3160 of the Public Resources Code. The model
8criteria used on a well-by-well basis for a well subject to a well
9stimulation treatment shall be used where no regional groundwater
10monitoring plan approved by the state or regional board, if
11applicable, exists and has been implemented by either the state or
12regional board or the well owner or operator.

13(j) The model criteria shall accommodate monitoring where
14surface access is limited. Monitoring is not required for oil and
15gas wells where the wells do not penetrate groundwater of
16beneficial use, as determined by a regional water quality control
17board, orbegin delete do notend deletebegin insert solelyend insert penetrate exempt aquifers pursuant to
18Section 146.4 of Title 40 of the Code of Federal Regulations.

19(k) (1) The model criteria and groundwater monitoring
20programs shall be reviewed and updated periodically, as needed.

21(2) The use of the United States Environmental Protection
22Agency’s definition of an Underground Source of Drinking Water
23as containing less than 10,000 milligrams per liter total dissolved
24solids in groundwater (40 C.F.R. 144.3) and whether exempt
25aquifers pursuant to Section 146.4 of Title 40 of the Code of
26Federal Regulations shall be subject to groundwater monitoring
27shall be reviewed by the state board through a public process on
28or before January 1, 2020.

29(l) (1) All groundwater quality data collected pursuant to
30subparagraph (F) of paragraph (1) of subdivision (d) of Section
313160 of the Public Resources Code shall be submitted to the state
32board in an electronic format that is compatible with the state
33board’s GeoTracker database, following the guidelines detailed in
34Chapter 30 (commencing with Section 3890) of Division 3 of Title
3523 of the California Code of Regulations.

36(2) A copy of the reported data under paragraph (1) shall be
37transferred by the state board to a public, nonprofit
38doctoral-degree-granting educational institution located in the San
39Joaquin Valley, administered pursuant to Section 9 of Article IX
40of the California Constitution, in order to form the basis of a
P235  1comprehensive groundwater quality data repository to promote
2research, foster interinstitutional collaboration, and seek
3understanding of the numerous factors influencing the state’s
4groundwater.

5(m) The adoption of criteria required pursuant to this section is
6exempt from the rulemaking provisions of the Administrative
7Procedure Act (Chapter 3.5 (commencing with Section 11340) of
8Part 1 of Division 3 of Title 2 of the Government Code). The
9adoption of criteria pursuant to this section shall instead be
10accomplished by means of a public process reasonably calculated
11to give those persons interested in their adoption an opportunity
12to be heard.

13begin insert

begin insertSEC. 184.end insert  

end insert

begin insertSection 13272 of the end insertbegin insertWater Codeend insertbegin insert is amended to
14read:end insert

15

13272.  

(a) Except as provided by subdivision (b), any person
16who, without regard to intent or negligence, causes or permits any
17oil or petroleum product to be discharged in or on any waters of
18the state, or discharged or deposited where it is, or probably will
19be, discharged in or on any waters of the state, shall, as soon as
20(1) that person has knowledge of the discharge, (2) notification is
21possible, and (3) notification can be provided without substantially
22impeding cleanup or other emergency measures, immediately
23notify the Office of Emergency Services of the discharge in
24accordance with the spill reporting provision of the California oil
25spill contingency plan adopted pursuant to Article 3.5 (commencing
26with Section 8574.1) of Chapter 7 of Division 1 of Title 2 of the
27Government Code.begin delete This section shall not apply to spills of oil into
28marine waters as defined in subdivision (f) of Section 8670.3 of
29the Government Code.end delete

30(b) The notification required by this section shall not apply to
31a discharge in compliance with waste discharge requirements or
32other provisions of this division.

33(c) Any person who fails to provide the notice required by this
34section is guilty of a misdemeanor and shall be punished by a fine
35of not less than five hundred dollars ($500) or more than five
36thousand dollars ($5,000) per day for each day of failure to notify,
37or imprisonment of not more than one year, or both. Except where
38a discharge to the waters of this state would have occurred but for
39cleanup or emergency response by a public agency, this subdivision
40shall not apply to any discharge to landbegin delete whichend deletebegin insert thatend insert does not result
P236  1in a discharge to the waters of this state. This subdivision shall not
2apply to any person who is fined by the federal government for a
3failure to report a discharge of oil.

4(d) Notification received pursuant to this section or information
5obtained by use of that notification shall not be used against any
6person providing the notification in any criminal case, except in
7a prosecution for perjury or giving a false statement.

8(e) Immediate notification to the appropriate regional board of
9the discharge, in accordance with reporting requirements set under
10Section 13267 or 13383, shall constitute compliance with the
11requirements of subdivision (a).

12(f) The reportable quantity for oil or petroleum products shall
13be one barrel (42 gallons) or more, by direct discharge to the
14receiving waters, unless a more restrictive reporting standard for
15a particular body of water is adopted.

16begin insert

begin insertSEC. 185.end insert  

end insert

begin insertSection 13350 of the end insertbegin insertWater Codeend insertbegin insert is amended to
17read:end insert

18

13350.  

(a) A person who (1) violates a cease and desist order
19or cleanup and abatement order hereafter issued, reissued, or
20amended by a regional board or the state board, or (2) in violation
21of a waste discharge requirement, waiver condition, certification,
22or other order or prohibition issued, reissued, or amended by a
23regional board or the state board, discharges waste, or causes or
24permits waste to be deposited where it is discharged, into the waters
25of the state, or (3) causes or permits any oil or any residuary
26product of petroleum to be deposited in or on any of the waters of
27the state, except in accordance with waste discharge requirements
28or other actions or provisions of this division, shall be liable civilly,
29and remedies may be proposed, in accordance with subdivision
30(d) or (e).

31(b) (1) A person who, without regard to intent or negligence,
32causes or permits a hazardous substance to be discharged in or on
33any of the waters of the state, except in accordance with waste
34discharge requirements or other provisions of this division, shall
35be strictly liable civilly in accordance with subdivision (d) or (e).

36(2) For purposes of this subdivision, the term “discharge”
37includes only those discharges for which Section 13260 directs
38that a report of waste discharge shall be filed with the regional
39board.

P237  1(3) For purposes of this subdivision, the term “discharge” does
2not include an emission excluded from the applicability of Section
3311 of the Clean Water Act (33 U.S.C. Sec. 1321) pursuant to
4Environmental Protection Agency regulations interpreting Section
5311(a)(2) of the Clean Water Act (33 U.S.C. Sec. 1321(a)(2)).

6(c) A person shall not be liable under subdivision (b) if the
7discharge is caused solely by any one or combination of the
8following:

9(1) An act of war.

10(2) An unanticipated grave natural disaster or other natural
11phenomenon of an exceptional, inevitable, and irresistible
12character, the effects of which could not have been prevented or
13avoided by the exercise of due care or foresight.

14(3) Negligence on the part of the state, the United States, or any
15department or agency thereof. However, this paragraph shall not
16be interpreted to provide the state, the United States, or any
17department or agency thereof a defense to liability for any
18discharge caused by its own negligence.

19(4) An intentional act of a third party, the effects of which could
20not have been prevented or avoided by the exercise of due care or
21foresight.

22(5) Any other circumstance or event that causes the discharge
23despite the exercise of every reasonable precaution to prevent or
24mitigate the discharge.

25(d) The court may impose civil liability either on a daily basis
26or on a per gallon basis, but not on both.

27(1) The civil liability on a daily basis shall not exceed fifteen
28thousand dollars ($15,000) for each day the violation occurs.

29(2) The civil liability on a per gallon basis shall not exceed
30twenty dollars ($20) for each gallon of waste discharged.

31(e) The state board or a regional board may impose civil liability
32administratively pursuant to Article 2.5 (commencing with Section
3313323) of Chapter 5 either on a daily basis or on a per gallon basis,
34but not on both.

35(1) The civil liability on a daily basis shall not exceed five
36thousand dollars ($5,000) for each day the violation occurs.

37(A) When there is a discharge, and a cleanup and abatement
38order is issued, except as provided in subdivision (f), the civil
39liability shall not be less than five hundred dollars ($500) for each
P238  1day in which the discharge occurs and for each day the cleanup
2and abatement order is violated.

3(B) When there is no discharge, but an order issued by the
4regional board is violated, except as provided in subdivision (f),
5the civil liability shall not be less than one hundred dollars ($100)
6for each day in which the violation occurs.

7(2) The civil liability on a per gallon basis shall not exceed ten
8dollars ($10) for each gallon of waste discharged.

9(f) A regional board shall not administratively impose civil
10liability in accordance with paragraph (1) of subdivision (e) in an
11amount less than the minimum amount specified, unless the
12regional board makes express findings setting forth the reasons
13for its action based upon the specific factors required to be
14considered pursuant to Section 13327.

15(g) The Attorney General, upon request of a regional board or
16the state board, shall petition the superior court to impose, assess,
17and recover the sums. Except in the case of a violation of a cease
18and desist order, a regional board or the state board shall make the
19request only after a hearing, with due notice of the hearing given
20to all affected persons. In determining the amount to be imposed,
21assessed, or recovered, the court shall be subject to Section 13351.

22(h) Article 3 (commencing with Section 13330) and Article 6
23(commencing with Section 13360) apply to proceedings to impose,
24assess, and recover an amount pursuant to this article.

25(i)  A person who incurs any liability established under this
26section shall be entitled to contribution for that liability from a
27third party, in an action in the superior court and upon proof that
28the discharge was caused in whole or in part by an act or omission
29of the third party, to the extent that the discharge is caused by the
30act or omission of the third party, in accordance with the principles
31of comparative fault.

32(j) Remedies under this section are in addition to, and do not
33supersede or limit, any and all other remedies, civil or criminal,
34except that no liability shall be recoverable under subdivision (b)
35for any discharge for which liability is recovered under Section
3613385.

37(k) Notwithstanding any other law, all funds generated by the
38imposition of liabilities pursuant to this section shall be deposited
39into the Waste Discharge Permit Fund. These moneys shall be
40separately accounted for, and shall bebegin delete expended by the state board,end delete
P239  1begin insert available for expenditure,end insert upon appropriation by the Legislature,
2begin delete toend deletebegin insert for the following purposes:end insert

3begin insert(1)end insertbegin insertend insertbegin insertTo the state board toend insert assist regional boards, and other public
4agencies with authority to clean up waste or abate the effects of
5the waste, in cleaning up or abating the effects of the waste on
6waters of the state, or for the purposes authorized in Section 13443,
7or to assist in implementing Chapter 7.3 (commencing with Section
813560).

begin insert

9(2) Up to five hundred thousand dollars ($500,000) per fiscal
10 year, to assist the Department of Fish and Wildlife to address the
11impacts of marijuana cultivation on the natural resources of the
12state.

end insert
begin insert

13(l) This section shall remain in effect only until July 1, 2017,
14and as of that date is repealed, unless a later enacted statute, that
15is enacted before July 1, 2017, deletes or extends that date.

end insert
16begin insert

begin insertSEC. 186.end insert  

end insert

begin insertSection 13350 is added to the end insertbegin insertWater Codeend insertbegin insert, to read:end insert

begin insert
17

begin insert13350.end insert  

(a) A person who (1) violates a cease and desist order
18or cleanup and abatement order hereafter issued, reissued, or
19amended by a regional board or the state board, or (2) in violation
20of a waste discharge requirement, waiver condition, certification,
21or other order or prohibition issued, reissued, or amended by a
22regional board or the state board, discharges waste, or causes or
23permits waste to be deposited where it is discharged, into the
24waters of the state, or (3) causes or permits any oil or any
25residuary product of petroleum to be deposited in or on any of the
26waters of the state, except in accordance with waste discharge
27requirements or other actions or provisions of this division, shall
28be liable civilly, and remedies may be proposed, in accordance
29with subdivision (d) or (e).

30(b) (1) A person who, without regard to intent or negligence,
31causes or permits a hazardous substance to be discharged in or
32on any of the waters of the state, except in accordance with waste
33discharge requirements or other provisions of this division, shall
34be strictly liable civilly in accordance with subdivision (d) or (e).

35(2) For purposes of this subdivision, the term “discharge”
36includes only those discharges for which Section 13260 directs
37that a report of waste discharge shall be filed with the regional
38board.

39(3) For purposes of this subdivision, the term “discharge” does
40not include an emission excluded from the applicability of Section
P240  1311 of the Clean Water Act (33 U.S.C. Sec. 1321) pursuant to
2Environmental Protection Agency regulations interpreting Section
3311(a)(2) of the Clean Water Act (33 U.S.C. Sec. 1321(a)(2)).

4(c) A person shall not be liable under subdivision (b) if the
5discharge is caused solely by any one or combination of the
6following:

7(1) An act of war.

8(2) An unanticipated grave natural disaster or other natural
9phenomenon of an exceptional, inevitable, and irresistible
10character, the effects of which could not have been prevented or
11avoided by the exercise of due care or foresight.

12(3) Negligence on the part of the state, the United States, or any
13department or agency thereof. However, this paragraph shall not
14be interpreted to provide the state, the United States, or any
15department or agency thereof a defense to liability for any
16discharge caused by its own negligence.

17(4) An intentional act of a third party, the effects of which could
18not have been prevented or avoided by the exercise of due care or
19foresight.

20(5) Any other circumstance or event that causes the discharge
21despite the exercise of every reasonable precaution to prevent or
22mitigate the discharge.

23(d) The court may impose civil liability either on a daily basis
24or on a per gallon basis, but not on both.

25(1) The civil liability on a daily basis shall not exceed fifteen
26thousand dollars ($15,000) for each day the violation occurs.

27(2) The civil liability on a per gallon basis shall not exceed
28twenty dollars ($20) for each gallon of waste discharged.

29(e) The state board or a regional board may impose civil liability
30administratively pursuant to Article 2.5 (commencing with Section
3113323) of Chapter 5 either on a daily basis or on a per gallon
32basis, but not on both.

33(1) The civil liability on a daily basis shall not exceed five
34thousand dollars ($5,000) for each day the violation occurs.

35(A) When there is a discharge, and a cleanup and abatement
36order is issued, except as provided in subdivision (f), the civil
37liability shall not be less than five hundred dollars ($500) for each
38day in which the discharge occurs and for each day the cleanup
39and abatement order is violated.

P241  1(B) When there is no discharge, but an order issued by the
2regional board is violated, except as provided in subdivision (f),
3the civil liability shall not be less than one hundred dollars ($100)
4for each day in which the violation occurs.

5(2) The civil liability on a per gallon basis shall not exceed ten
6dollars ($10) for each gallon of waste discharged.

7(f) A regional board shall not administratively impose civil
8liability in accordance with paragraph (1) of subdivision (e) in an
9amount less than the minimum amount specified, unless the
10regional board makes express findings setting forth the reasons
11for its action based upon the specific factors required to be
12considered pursuant to Section 13327.

13(g) The Attorney General, upon request of a regional board or
14the state board, shall petition the superior court to impose, assess,
15and recover the sums. Except in the case of a violation of a cease
16and desist order, a regional board or the state board shall make
17the request only after a hearing, with due notice of the hearing
18given to all affected persons. In determining the amount to be
19imposed, assessed, or recovered, the court shall be subject to
20Section 13351.

21(h) Article 3 (commencing with Section 13330) and Article 6
22(commencing with Section 13360) apply to proceedings to impose,
23assess, and recover an amount pursuant to this article.

24(i) A person who incurs any liability established under this
25section shall be entitled to contribution for that liability from a
26third party, in an action in the superior court and upon proof that
27the discharge was caused in whole or in part by an act or omission
28of the third party, to the extent that the discharge is caused by the
29act or omission of the third party, in accordance with the principles
30of comparative fault.

31(j) Remedies under this section are in addition to, and do not
32supersede or limit, any and all other remedies, civil or criminal,
33except that no liability shall be recoverable under subdivision (b)
34for any discharge for which liability is recovered under Section
3513385.

36(k) Notwithstanding any other law, all funds generated by the
37imposition of liabilities pursuant to this section shall be deposited
38into the Waste Discharge Permit Fund. These moneys shall be
39separately accounted for, and shall be expended by the state board,
40upon appropriation by the Legislature, to assist regional boards,
P242  1and other public agencies with authority to clean up waste or abate
2the effects of the waste, in cleaning up or abating the effects of the
3waste on waters of the state, or for the purposes authorized in
4Section 13443, or to assist in implementing Chapter 7.3
5(commencing with Section 13560).

6(l) This section shall become operative on July 1, 2017.

end insert
7begin insert

begin insertSEC. 187.end insert  

end insert

begin insertSection 13478 of the end insertbegin insertWater Codeend insertbegin insert is amended to
8read:end insert

9

13478.  

begin insert(a)end insertbegin insertend insertThe board may undertake any of the following:

begin delete

10(a)

end delete

11begin insert(1)end insert Enter into agreements with the federal government for
12federal contributions to the fund.

begin delete

13(b)

end delete

14begin insert(2)end insert Accept federal contributions to the fund.

begin delete

15(c)

end delete

16begin insert(3)end insert Enter into an agreement with, and accept matching funds
17from, a municipality. A municipality that seeks to enter into an
18agreement with the board and provide matching funds pursuant to
19this subdivision shall provide to the board evidence of the
20availability of those funds in the form of a written resolution
21adopted by the governing body of the municipality before it
22requests a preliminary financial assistance commitment.

begin delete

23(d)

end delete

24begin insert(4)end insert Use moneys in the fund for the purposes permitted by the
25federal act.

begin delete

26(e)

end delete

27begin insert(5)end insert Provide for the deposit of matching funds and any other
28available and necessary moneys into the fund.

begin delete

29(f)

end delete

30begin insert(6)end insert Make requests on behalf of the state for deposit into the fund
31of available federal moneys under the federal act and determine
32on behalf of the state appropriate maintenance of progress toward
33compliance with the enforceable deadlines, goals, and requirements
34of the federal act.

begin delete

35(g)

end delete

36begin insert(7)end insert Determine on behalf of the state that publicly owned
37treatment works that receive financial assistance from the fund
38will meet the requirements of, and otherwise be treated as required
39by, the federal act.

begin delete

40(h)

end delete

P243  1begin insert(8)end insert Provide for appropriate audit, accounting, and fiscal
2management services, plans, and reports relative to the fund.

begin delete

3(i)

end delete

4begin insert(9)end insert Take additional incidental action as appropriate for the
5adequate administration and operation of the fund.

begin delete

6(j)

end delete

7begin insert(10)end insert Charge municipalities that elect to provide matching funds
8a fee to cover the actual cost of obtaining the federal funds pursuant
9to Section 603(d)(7) of the federal act (33 U.S.C. Sec. 1383(d)(7))
10and processing the financial assistance application. The fee shall
11be waived by the board if sufficient funds to cover those costs are
12available from other sources.

begin delete

13(k)

end delete

14begin insert(11)end insert Use money returned to the fund under clause (ii) of
15subparagraph (D) of paragraph (1) of subdivision (b) of Section
1613480, and any other source of matching funds, if not prohibited
17by statute, as matching funds for the federal administrative
18allowance under Section 603(d)(7) of the federal act (33 U.S.C.
19Sec. 1383(d)(7)).

begin delete

20(l)

end delete

21begin insert(12)end insert Expend money repaid by financial assistance recipients for
22financial assistance service under clauses (i) and (ii) of
23subparagraph (D) of paragraph (1) of subdivision (b) of Section
2413480 to pay administrative costs incurred by the board under this
25chapter.

begin insert

26(b) This section shall become inoperative on July 1, 2014, and,
27as of January 1, 2015, is repealed, unless a later enacted statute,
28that becomes operative on or before January 1, 2015, deletes or
29extends the dates on which it becomes inoperative and is repealed.

end insert
30begin insert

begin insertSEC. 188.end insert  

end insert

begin insertSection 13478 is added to the end insertbegin insertWater Codeend insertbegin insert, to read:end insert

begin insert
31

begin insert13478.end insert  

(a) The board may undertake any of the following:

32(1) Enter into agreements with the federal government for
33federal contributions to the fund.

34(2) Accept federal contributions to the fund.

35(3) Enter into an agreement with, and accept matching funds
36from, a municipality. A municipality that seeks to enter into an
37agreement with the board and provide matching funds pursuant
38to this subdivision shall provide to the board evidence of the
39availability of those funds in the form of a written resolution
P244  1adopted by the governing body of the municipality before it
2requests a preliminary financial assistance commitment.

3(4) Use moneys in the fund for the purposes permitted by the
4federal act.

5(5) Provide for the deposit of matching funds and any other
6available and necessary moneys into the fund.

7(6) Make requests on behalf of the state for deposit into the fund
8of available federal moneys under the federal act and determine
9on behalf of the state appropriate maintenance of progress toward
10compliance with the enforceable deadlines, goals, and
11requirements of the federal act.

12(7) Determine on behalf of the state that publicly owned
13treatment works that receive financial assistance from the fund
14will meet the requirements of, and otherwise be treated as required
15by, the federal act.

16(8) Provide for appropriate audit, accounting, and fiscal
17management services, plans, and reports relative to the fund.

18(9) Take additional incidental action as appropriate for the
19adequate administration and operation of the fund.

20(10) Charge municipalities that elect to provide matching funds
21a fee to cover the actual cost of obtaining the federal funds
22pursuant to Section 603(d)(7) of the federal act (33 U.S.C. Sec.
231383(d)(7)) and processing the financial assistance application.
24The fee shall be waived by the board if sufficient funds to cover
25those costs are available from other sources.

26(11) Use money returned to the fund under clause (ii) of
27subparagraph (D) of paragraph (1) of subdivision (b) of Section
2813480, and any other source of matching funds, if not prohibited
29by statute, as matching funds for the federal administrative
30allowance under Section 603(d)(7) of the federal act (33 U.S.C.
31Sec. 1383(d)(7)).

32(12) Expend money repaid by financial assistance recipients
33for financial assistance service under clauses (i) and (ii) of
34subparagraph (D) of paragraph (1) of subdivision (b) of Section
3513480 to pay administrative costs incurred by the board under
36this chapter.

37(13) Engage in the transfer of capitalization grant funds, as
38authorized by Section 35.3530(c) of Title 40 of the Code of Federal
39Regulations and reauthorized by Public Law 109-54, to the extent
P245  1set forth in an Intended Use Plan, that shall be subject to approval
2by the board.

3(14) Cross-collateralize revenue bonds with the Safe Drinking
4Water State Revolving Fund created pursuant to Section 116760.30
5of the Health and Safety Code, as authorized by Section 35.3530(d)
6of Title 40 of the Code of Federal Regulations.

7(b) This section shall become operative on July 1, 2014.

end insert
8begin insert

begin insertSEC. 189.end insert  

end insert

begin insertSection 13485 of the end insertbegin insertWater Codeend insertbegin insert is amended to
9read:end insert

10

13485.  

begin insert(a)end insertbegin insertend insertThe board may adopt rules and regulations
11necessary or convenient to implement this chapter and to meet
12federal requirements pursuant to the federal act.

begin insert

13(b) This section shall become inoperative on July 1, 2014, and,
14as of January 1, 2015, is repealed, unless a later enacted statute,
15that becomes operative on or before January 1, 2015, deletes or
16extends the dates on which it becomes inoperative and is repealed.

end insert
17begin insert

begin insertSEC. 190.end insert  

end insert

begin insertSection 13485 is added to the end insertbegin insertWater Codeend insertbegin insert, to read:end insert

begin insert
18

begin insert13485.end insert  

(a) The board may adopt rules and regulations
19necessary or convenient to implement this chapter and to meet
20federal requirements pursuant to the federal act.

21(b) The board may implement this chapter through a policy
22handbook that shall not be subject to the requirements of Chapter
233.5 (commencing with Section 11340) of Part 1 of Division 3 of
24the Government Code.

25(c) This section shall become operative on July 1, 2014.

end insert
26begin insert

begin insertSEC. 191.end insert  

end insert

begin insertSection 13528.5 is added to the end insertbegin insertWater Codeend insertbegin insert, to read:end insert

begin insert
27

begin insert13528.5.end insert  

(a) The state board may carry out the duties and
28authority granted to a regional board pursuant to this chapter.

29(b) This section shall become operative on July 1, 2014.

end insert
30begin insert

begin insertSEC. 192.end insert  

end insert
begin insert

(a) The Director of Finance may make available
31for expenditure in the 2014-15 fiscal year from the Oil Spill
32Prevention and Administration Fund, established pursuant to
33Section 8670.38 of the Government Code, an augmentation of Item
340860-001-0320 of the Budget Act of 2014 in an amount equal to
35the reasonable costs incurred by the State Board of Equalization
36associated with amendments made to Section 8670.40 of the
37Government Code in the 2013-14 Regular Session.

end insert
begin insert

38(b) Any augmentation shall be authorized no sooner than 30
39days following the transmittal of the approval to the Chairperson
40of the Joint Legislative Budget Committee.

end insert
P246  1begin insert

begin insertSEC. 193.end insert  

end insert
begin insert

Notwithstanding any other law, the unencumbered
2balance of the appropriation provided for in Item 4265-111-0001
3of Chapter 2 of the Statutes of 2014, for the purposes specified in
4Provision 3 of that item, is hereby appropriated to the State Water
5Resources Control Board, as of June 30, 2014. This fund shall be
6available for encumbrance or expenditure until June 30, 2016, for
7purposes consistent with subdivisions (a) and (c) of Section 75021
8of the Public Resources Code for grants pursuant to the Public
9Water System Drought Emergency Funding Guidelines adopted
10by the State Department of Public Health on March 28, 2014, for
11public water systems to address drought-related drinking water
12emergencies. The State Water Resources Control Board shall make
13every effort to use other funds available to address drinking water
14emergencies, including federal funds made available for the
15drought prior to using the funds specified in this section.

end insert
16begin insert

begin insertSEC. 194.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant
17to Section 6 of Article XIII B of the California Constitution because
18the only costs that may be incurred by a local agency or school
19district will be incurred because this act creates a new crime or
20infraction, eliminates a crime or infraction, or changes the penalty
21for a crime or infraction, within the meaning of Section 17556 of
22the Government Code, or changes the definition of a crime within
23the meaning of Section 6 of Article XIII B of the California
24Constitution.

end insert
25begin insert

begin insertSEC. 195.end insert  

end insert
begin insert

This act is a bill providing for appropriations related
26to the Budget Bill within the meaning of subdivision (e) of Section
2712 of Article IV of the California Constitution, has been identified
28as related to the budget in the Budget Bill, and shall take effect
29immediately.

end insert
begin delete
30

SECTION 1.  

It is the intent of the Legislature to enact statutory
31changes relating to the Budget Act of 2014.

end delete


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