BILL NUMBER: AB 234 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 23, 2010
AMENDED IN SENATE JUNE 16, 2010
AMENDED IN SENATE JUNE 9, 2010
AMENDED IN SENATE JUNE 1, 2010
AMENDED IN SENATE DECEMBER 16, 2009
AMENDED IN SENATE JULY 16, 2009
AMENDED IN SENATE JUNE 9, 2009
AMENDED IN ASSEMBLY MAY 18, 2009
AMENDED IN ASSEMBLY MAY 6, 2009
AMENDED IN ASSEMBLY APRIL 23, 2009
AMENDED IN ASSEMBLY APRIL 14, 2009
INTRODUCED BY Assembly Member Huffman
FEBRUARY 5, 2009
An act to amend Sections 8670.40 and 8670.41 of, and to
add Section 8670.17.3 to , the Government Code, relating
to oil spills.
LEGISLATIVE COUNSEL'S DIGEST
AB 234, as amended, Huffman. Oil spill prevention and response:
transfer of oil.
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 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 requires the administrator to adopt and implement regulations
regarding the equipment, personnel, and operation of vessels to and
from marine terminals that are used to transfer oil.
This bill would require a transfer unit, as defined, or
an oil transfer operation, as defined, to provide at the point of
transfer of oil appropriate equipment and supplies for the
containment and removal of oil spills in water adjacent to a transfer
site.The bill would specify requirements to preboom an oil transfer
and alternative measures, if it is determined not to be safe or
effective to preboom. The bill would also require thetransfer unit or
oil transfer operation to have, among other things, equipment
compatible with a vessel traffic advisory control systemand a high
level alarm and tank overfill alarm to alert crew. the
administrator to adopt regulations governing oil transfers that
would require a transfer unit, as defined, to provide, at the point
of transfer, appropriate equipment and supplies for the containment
and removal of spills of oil in water adjacent to the transfer site.
The regulations would require the transfer unit, prior to beginning
an oil transfer, to preboom each oil transfer for the duration of the
transfer, unless prebooming is determined not to be safe and
effective.
Existing law imposes an oil spill prevention and administration
fee in an amount determined by the administrator to implement oil
spill prevention activities, but not to exceed $0.05 per barrel of
crude oil or petroleum products, 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, money in the fund is
available for specified purposes.
This bill would revise that fee to an amount not to exceed $0.06
per barrel of crude oil or petroleum products. The bill would also
authorize the administrator to increase the fee to cover its costs to
carry out those purposes, provided any increase is based on an
annual increase in the California Consumer Price Index, and the fee
does not exceed $0.10 per barrel of crude oil or petroleum products.
Existing law requires the administrator to charge a nontank vessel
owner or operator a reasonable fee, to be collected with each
application to obtain a certificate of financial responsibility, in
an amount that is based upon the administrator's costs in
implementing certain provisions relating to nontank vessels. Revenue
from the fee is deposited into the Oil Spill Prevention and
Administration Fund for appropriation by the Legislature for
specified purposes.
This bill would establish that fee at $3,000 per nontank vessel.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8670.17.3 is added to the Government Code, to
read:
8670.17.3. (a) For purposes of this section, the following
definitions apply:
(1) "#1 and #2 grade oils" have the same meaning as defined in
Section 841(a) of Title 14 of the California Code of Regulations.
(2)
(1) "Boom" means flotation boom or other effective
barrier containment material suitable for containment of oil that is
discharged onto the surface of water.
(2) "Transfer unit" means a vessel involved in a bunkering or
lightering operation.
(b) The administrator shall adopt regulations governing oil
transfers that would require a transfer unit to provide, at the point
of transfer, appropriate equipment and supplies for the containment
and removal of spills of oil in water adjacent to the transfer site.
These regulations shall require the transfer unit, prior to beginning
an oil transfer, to preboom each oil transfer for the duration of
the transfer, unless prebooming is determined not to be safe and
effective according to subdivision (d). The regulations shall be
adopted, and thereafter periodically revised, to ensure the best
achievable protection of the public health and safety and the
environment.
(c) The regulations in subdivision (b) shall include, but are not
limited to, all of the following:
(1) Minimum boom amounts to which a vessel shall have access.
(2) Requirements for the transfer unit to periodically check the
boom positioning and adjust as necessary throughout the duration of
the transfer, and specifically during tidal changes and significant
wind or wave events, to maintain maximum containment of any oil
spilled into the water.
(3) Requirements for positing of boom to provide maximum
containment of any oil spilled into the water.
(4) Alternatives to prebooming when prebooming is determined not
to be safe and effective pursuant to subdivision (d) including, but
not limited to, minimum boom amounts and boom positioning
requirements, availability of an oil spill tracking system in the
event of a spill, and response preparedness requirements.
(d) The regulations in subdivision (b) shall include requirements
for a transfer unit to develop thresholds for each location at which
it conducts oil transfers to determine when it is safe and effective
to preboom on a case-by-case basis.
(1) The thresholds shall be based on all of the following:
(A) Personnel safety.
(B) Sea state values in feet, including typical wave periods.
(C) Water current velocity.
(D) Wind speed.
(E) Other conditions such as vessel traffic, fishing activities,
and other factors that influence oil transfers.
(2) The transfer unit shall develop a safe and effective
determination threshold report that includes a summary of the safe
and effective threshold values as well as information and analysis to
support the values. The report shall be submitted to the Office of
Spill Prevention and Response for review and approval.
(e) The regulations shall include a standard method for the vessel
operator to communicate to the Office of Spill Prevention and
Response when an operation was not preboomed, a process for reviewing
the notifications, and a course of action when a vessel operator did
not preboom, but the office determines it would have been safe and
effective to preboom.
SEC. 2. Section 8670.40 of the
Government Code is amended to read:
8670.40. (a) The State Board of Equalization shall collect a fee
in an amount determined by the administrator to be sufficient to
carry out the purposes set forth in subdivision (e), and a reasonable
reserve for contingencies. The annual assessment may not exceed
five cents ($0.05) six cents ($0.06)
per barrel of crude oil or petroleum products. However, the
administrator may increase the fee to cover its costs to carry out
the purposes set forth in subdivision (e), provided any increase is
based on an annual increase in the California Consumer Price Index as
determined pursuant to Section 2212 of the Revenue and
Taxation Code, and the fee does not exceed ten cents ($0.10) per
barrel of crude oil or petroleum products.
(b) (1) The oil spill prevention and administration fee shall be
imposed upon a person owning crude oil at the time that the
crude oil is received at a marine terminal from within or
outside the state, and upon a person who owns
owning petroleum products at the time that those petroleum
products are received at a marine terminal from outside this state.
The fee shall be collected by the marine terminal operator from the
owner of the crude oil or petroleum products based on each barrel of
crude oil or petroleum products so received by means of a vessel
operating in, through, or across the marine waters of the state. In
addition, an operator of a pipeline shall pay the oil spill
prevention and administration fee for each barrel of crude oil
originating from a production facility in marine waters and
transported in the state by means of a pipeline operating across,
under, or through the marine waters of the state. The fees shall be
remitted to the board by the terminal or pipeline operator on the
25th day of the month based upon the number of barrels of crude oil
or petroleum products received at a marine terminal or transported by
pipeline during the preceding month. A fee shall not be imposed
pursuant to this section with respect to crude oil or petroleum
products if the person who would be liable for that fee, or
responsible for its collection, establishes that the fee has been
collected by a terminal operator registered under this chapter or
paid to the board with respect to the crude oil or petroleum product.
(2) An owner of crude oil or petroleum products is liable for the
fee until it has been paid to the board, except that payment to a
marine terminal operator registered under this chapter is sufficient
to relieve the owner from further liability for the fee.
(3) On or before January 20, the administrator shall annually
prepare a plan that projects revenues and expenses over three fiscal
years, including the current year. Based on the plan, the
administrator shall set the fee so that projected revenues, including
any interest, are equivalent to expenses as
reflected in the current Budget Act and in the proposed budget
submitted by the Governor. In setting the fee, the administrator may
allow for a surplus if the administrator finds that revenues will be
exhausted during the period covered by the plan or that the surplus
is necessary to cover possible contingencies.
(c) The moneys collected pursuant to subdivision (a) shall be
deposited into the fund.
(d) The board shall collect the fee and adopt regulations for
implementing the fee collection program.
(e) The fee described in this section shall be collected solely
for all of the following purposes:
(1) To implement oil spill prevention programs through rules,
regulations, leasing policies, guidelines, and inspections and to
implement research into prevention and control technology.
(2) To carry out studies that may lead to improved oil spill
prevention and response.
(3) To finance environmental and economic studies relating to the
effects of oil spills.
(4) To reimburse the member agencies of the State Interagency Oil
Spill Committee for costs arising from implementation of this
chapter, Article 3.5 (commencing with Section 8574.1) of Chapter 7 of
this code, and Division 7.8 (commencing with Section 8750) of the
Public Resources Code.
(5) To implement, install, and maintain emergency programs,
equipment, and facilities to respond to, contain, and clean up oil
spills and to ensure that those operations will be carried out as
intended.
(6) To respond to an imminent threat of a spill in accordance with
the provisions of Section 8670.62 pertaining to threatened
discharges. The cumulative amount of an expenditure for this purpose
shall not exceed the amount of one hundred thousand dollars
($100,000) in a fiscal year unless the administrator receives the
approval of the Director of Finance and notification is given to the
Joint Legislative Budget Committee. Commencing with the 1993-94
fiscal year, and each fiscal year thereafter, it is the intent of the
Legislature that the annual Budget Act contain an appropriation of
one hundred thousand dollars ($100,000) from the fund for the purpose
of allowing the administrator to respond to threatened oil spills.
(7) To reimburse the board for costs incurred to implement this
chapter and to carry out Part 24 (commencing with Section 46001) of
Division 2 of the Revenue and Taxation Code.
(8) To reimburse the costs incurred by the State Lands Commission
in implementing the Oil Transfer and Transportation Emission and Risk
Reduction Act of 2002 (Division 7.9 (commencing with Section 8780)
of the Public Resources Code).
(9) To cover costs incurred by the Oiled Wildlife Care Network
established by Section 8670.37.5 for training and field collection,
and search and rescue activities, pursuant to subdivision (g) of
Section 8670.37.5.
(f) The moneys deposited in the fund shall not be used for
responding to an oil spill.
SEC. 3. Section 8670.41 of the
Government Code is amended to read:
8670.41. (a) The administrator shall charge a nontank vessel
owner or operator a reasonable fee, to be
collected with each application to obtain a certificate of financial
responsibility, in an the amount
that is based upon of three thousand dollars
($3,000) per nontank vessel for the administrator's costs in
implementing this chapter relating to nontank vessels.
Before January 1, 2005, the fee shall be two thousand five hundred
dollars ($2,500), or less per vessel.
(b) The Notwithstanding subdivision (a),
the administrator may charge a reduced fee under this section
for nontank vessels determined by the administrator to pose a reduced
risk of pollution, including, but not limited to, vessels used for
research or training and vessels that are moored permanently or
rarely move.
(c) The administrator shall deposit all revenue derived from the
fees imposed under this section in the Oil Spill Prevention and
Administration Fund established in the State Treasury under Section
8670.38.
(d) Revenue derived from the fees imposed under this section
may shall be spent for the purposes
listed in subdivision (e) of Section 8670.40, and may not be used for
responding to an oil spill. All matter omitted in this version of
the bill appears in the bill as amended in the Senate, June 16, 2010.
(JR11)