Amended in Senate June 12, 2014

California Legislature—2013–14 Regular Session

Assembly BillNo. 1466


Introduced by Committee on Budget (Skinner (Chair), Bloom, Campos, Chesbro, Dababneh, Daly, Dickinson, Gordon, Jones-Sawyer, Mullin, Muratsuchi, Nazarian, Rodriguez, Stone, Ting, and Weber)

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 and 1807 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

AB 1466, as amended, Committee on Budget. begin deleteBudget Act of 2014. end deletebegin insertPublic Resources: trailer bill.end insert

begin insert

(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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

(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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

(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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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

end insert
begin insert

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.

end insert
begin insert

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

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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

end insert
begin insert

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.

end insert
begin insert

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 two additional members, with one having knowledge of the railroad industry and another having knowledge of the oil production industry.

end insert
begin insert

(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.

end insert
begin insert

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.

end insert
begin insert

(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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

This bill would delete that prohibition.

end insert
begin insert

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.

end insert
begin insert

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

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

(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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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 two-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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

(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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

(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.

end insert
begin insert

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.

end insert
begin insert

(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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

This bill would authorize the California Coastal Commission to impose upon a person who violates 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.

end insert
begin insert

(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.

end insert
begin insert

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.

end insert
begin insert

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

(12.5) 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

(13) 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

(14) 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

(15) 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

(16) 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:

P19   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
P20   1with the production or cultivation of a controlled substance,end insert
shall
2be liable for a civil penalty in the following amounts:

3(1) A person who violates Section 1602 in connection with the
4production or cultivation of a controlled substance is subject to a
5civil penalty of not more than ten thousand dollars ($10,000) for
6each violation.

7(2) A person who violates Section 5650 in connection with the
8production or cultivation of a controlled substance is subject to a
9civil penalty of not more than forty thousand dollars ($40,000) for
10each violation.

11(3) A person who violates Section 5652 in connection with the
12production or cultivation of a controlled substance is subject to a
13civil penalty of not more than forty thousand dollars ($40,000) for
14each violation.

begin insert

15(b) (1) In addition to any penalties imposed by any other law,
16a person found to have violated Section 1602, 5650, or 5652 in
17connection with the production or cultivation of a controlled
18substance on land that the person owns, leases, or otherwise uses
19or occupies with the consent of the landowner may be liable for a
20civil penalty in the following amounts:

end insert
begin insert

21(A) A person who violates Section 1602 in connection with the
22production or cultivation of a controlled substance is subject to a
23civil penalty of not more than eight thousand dollars ($8,000) for
24each violation.

end insert
begin insert

25(B) A person who violates Section 5650 in connection with the
26production or cultivation of a controlled substance is subject to a
27civil penalty of not more than twenty thousand dollars ($20,000)
28for each violation.

end insert
begin insert

29(C) A person who violates Section 5652 in connection with the
30production or cultivation of a controlled substance is subject to a
31civil penalty of not more than twenty thousand dollars ($20,000)
32for each violation.

end insert
begin insert

33(2) Each day that a violation of Section 1602, 5650, or 5652
34described in this subdivision occurs or continues to occur shall
35constitute a separate violation.

end insert
begin delete

36(b)

end delete

37begin insert(c)end insert The civil penalty imposed for each separate violation
38pursuant to this section is in addition to any other civil penalty
39imposed for another violation of this section, or any violation of
40any other law.

begin delete

P21   1(c)

end delete

2begin insert(d)end insert All civil penaltiesbegin insert imposed orend insert collectedbegin insert by a courtend insert for a
3separate violation pursuant to this section shall not be considered
4to be fines or forfeitures, as described in Section 13003, and shall
5be apportioned in the following manner:

6(1) Thirty percent shall be distributed to the county in which
7the violation was committed pursuant to Section 13003. The county
8board of supervisors shall first use any revenues from those
9penalties to reimburse the costs incurred by the district attorney
10or city attorney in investigating and prosecuting the violation.

11(2) begin insert(A)end insertbegin insertend insertThirty percent shall be distributed to the investigating
12agency to be used to reimburse the cost of any investigation directly
13related to the violations described in this section.

begin insert

14(B) If the department receives reimbursement pursuant to this
15paragraph for activities funded pursuant to subdivision (f) of
16Section 4629.6 of the Public Resources Code, the reimbursement
17funds shall be deposited into the Timber Regulation and Forest
18Restoration Fund, created by Section 4629.3 of the Public
19Resources Code, if there is an unpaid balance for a loan authorized
20by subdivision (f) of Section 4629.6 of the Public Resources Code.

end insert

21(3) Forty percent shall bebegin delete distributed to the agency performing
22the cleanup or abatement of the cultivation or production site for
23the reimbursement for all reasonable costs associated with the
24cleanup or abatement.end delete
begin insert deposited into the Timber Regulation and
25Forest Restoration Fund, created by Section 4629.3 of the Public
26Resources Code, and used for grants authorized pursuant to
27Section 4629.6 of the Public Resources Code that improve forest
28health by remediating former marijuana growing operations.end insert

begin insert

29(e) Civil penalties authorized pursuant to this section may be
30imposed administratively by the department if all the following
31occur:

end insert
begin insert

32(1) The chief deputy director or law enforcement division
33assistant chief in charge of marijuana-related enforcement issues
34a complaint to any person or entity on which an administrative
35civil penalty may be imposed pursuant to this section. The
36complaint shall allege the act or failure to act that constitutes a
37violation, any facts related to natural resources impacts, the
38provision of law authorizing the civil penalty to be imposed, and
39the proposed penalty amount.

end insert
begin insert

P22   1(2) The complaint and order is served by personal notice or
2certified mail and informs the party served that the party may
3request a hearing no later than 20 days from the date of service.
4If a hearing is requested, it shall be scheduled before the director
5or his or her designee, which designee shall not be the chief deputy
6or assistant chief issuing the complaint and order. A request for
7a hearing shall contain a brief statement of the material facts the
8party claims support his or her contention that no administrative
9penalty should be imposed or that an administrative penalty of a
10lesser amount is warranted. A party served with a complaint
11pursuant to this subdivision waives the right to a hearing if no
12hearing is requested within 20 days of service of the complaint, in
13which case the order imposing the administrative penalty shall
14become final.

end insert
begin insert

15(3) The director, or his or her designee, shall control the nature
16and order of hearing proceedings. Hearings shall be informal in
17nature, and need not be conducted according to the technical rules
18relating to evidence. The director or his or her designee shall issue
19a final order within 45 days of the close of the hearing. A final
20copy of the order shall be served by certified mail upon the party
21served with the complaint.

end insert
begin insert

22(4) A party may obtain review of the final order by filing a
23petition for a writ of mandate with the superior court within 30
24days of the date of service of the final order. The administrative
25penalty shall be due and payable to the department within 60 days
26after the time to seek judicial review has expired, or, where the
27party has not requested a hearing of the order, within 20 days
28after the order imposing an administrative penalty becomes final.

end insert
begin insert

29(5) The department may adopt regulations to implement this
30subdivision.

end insert
begin insert

31(f) All administrative penalties imposed or collected by the
32department for a separate violation pursuant to this section shall
33not be considered to be fines or forfeitures, as described in Section
3413003, and shall be deposited into the Timber Regulation and
35Forest Restoration Fund, created by Section 4629.3 of the Public
36Resources Code, to repay any unpaid balance of a loan authorized
37by subdivision (f) of Section 4629.6 of the Public Resources Code.
38Any remaining funds from administrative penalties collected
39pursuant to this section shall be apportioned in the following
40manner:

end insert
begin insert

P23   1(1) Fifty percent shall be deposited into the Timber Regulation
2and Forest Restoration Fund for grants authorized pursuant to
3subdivision (h) of Section 4629.6 of the Public Resources Code,
4with priority given to grants that improve forest health by
5remediating former marijuana growing operations.

end insert
begin insert

6(2) Fifty percent shall be deposited into the Fish and Game
7Preservation Fund.

end insert
begin delete

8(d)

end delete

9begin insert(g)end insert For purposes of this section, “controlled substance” has the
10same meaning as defined in Section 11007 of the Health and Safety
11Code.

12begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 8574.4 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
13to read:end insert

14

8574.4.  

State agencies designated to implement the contingency
15plan shall account for all state expenditures made under the plan
16with respect to each oil spill. Expenditures accounted for under
17this section from an oil spill inbegin delete marineend delete watersbegin insert of the stateend insert shall be
18paid from the Oil Spill Response Trust Fund created pursuant to
19Section 8670.46. All other expenditures accounted for under this
20section shall be paid from the State Water Pollution Cleanup and
21Abatement Account in the State Water Quality Control Fund
22provided for in Article 3 (commencing with Section 13440) of
23Chapter 6 of Division 7 of the Water Code. If the party responsible
24for the spill is identified, that party shall be liable for the
25expenditures accounted for under this section, in addition to any
26other liabilitybegin delete whichend deletebegin insert thatend insert may be provided for by law, in an action
27brought by the Attorney General. The proceeds from anybegin delete suchend delete
28 action for a spill in marine waters shall be paid into the Oil Spill
29Response Trust Fund.

30begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 8574.7 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
31to read:end insert

32

8574.7.  

The Governor shall require the administrator, not in
33conflict with the National Contingency Plan, to amend the
34California oil spill contingency planbegin delete by adding a marine oil spill
35contingency planning section that providesend delete
begin insert to provideend insert for the best
36achievable protection ofbegin delete the coast and marineend delete watersbegin insert of the stateend insert.
37“Administrator” for purposes of this section means the
38administrator appointed by the Governor pursuant to Section
398670.4. Thebegin delete marine oil spill contingency planning sectionend deletebegin insert planend insert
40 shall consist of all of the following elements:

P24   1(a) A statebegin delete marineend delete response element that specifies the hierarchy
2for state and local agency response to an oil spill. The element
3shall define the necessary tasks for oversight and control of cleanup
4and removal activities associated withbegin delete a marineend deletebegin insert anend insert oil spill and
5shall specify each agency’s particular responsibility in carrying
6out these tasks. The element shall also include an organizational
7chart of the statebegin delete marineend delete oil spill response organization and a
8definition of the resources, capabilities, and response assignments
9of each agency involved in cleanup and removal actions inbegin delete a marineend delete
10begin insert anend insert oil spill.

11(b) A regional and local planning element that shall provide the
12framework for the involvement of regional and local agencies in
13the state effort to respond tobegin delete a marineend deletebegin insert anend insert oil spill, and shall ensure
14the effective and efficient use of regional and local resourcesbegin insert, as
15appropriate,end insert
in all of the following:

16(1) Traffic and crowd control.

17(2) Firefighting.

18(3) Boating traffic control.

19(4) Radio and communications control and provision of access
20to equipment.

21(5) Identification and use of available local and regional
22equipment or other resources suitable for use in cleanup and
23removal actions.

24(6) Identification of private and volunteer resources or personnel
25with special or unique capabilities relating tobegin delete marineend delete oil spill
26cleanup and removal actions.

27(7) Provision of medical emergency services.

28(8) Consideration of the identification and use of private working
29craft and mariners, including commercial fishing vessels and
30licensed commercial fishing men and women, in containment,
31cleanup, and removal actions.

32(c) A coastal protection element that establishes the state
33standards for coastline protection. The administrator, in
34consultation with the Coast Guard and Navy and the shipping
35industry, shall develop criteria for coastline protection. If
36appropriate, the administrator shall consult with representatives
37from the States of Alaska, Washington, and Oregon, the Province
38of British Columbia in Canada, and the Republic of Mexico. The
39criteria shall designate at least all of the following:

P25   1(1) Appropriate shipping lanes and navigational aids for tankers,
2barges, and other commercial vessels to reduce the likelihood of
3collisions between tankers, barges, and other commercial vessels.
4Designated shipping lanes shall be located off the coastline at a
5distance sufficient to significantly reduce the likelihood that
6disabled vessels will run aground along the coast of the state.

7(2) Ship position reporting and communications requirements.

8(3) Required predeployment of protective equipment for
9sensitive environmental areas along the coastline.

10(4) Required emergency response vessels that are capable of
11preventing disabled tankers from running aground.

12(5) Required emergency response vessels that are capable of
13commencing oil cleanup operations before spilled oil can reach
14the shoreline.

15(6) An expedited decisionmaking process for dispersant use in
16coastal waters. Prior to adoption of the process, the administrator
17shall ensure that a comprehensive testing program is carried out
18for any dispersant proposed for use in California marine waters.
19The testing program shall evaluate toxicity and effectiveness of
20the dispersants.

21(7) Required rehabilitation facilities for wildlife injured by
22spilled oil.

23(8) An assessment of how activities that usually require a permit
24from a state or local agency may be expedited or issued by the
25administrator in the event of an oil spill.

26(d) An environmentally and ecologically sensitive areas element
27that shall provide the framework for prioritizing and ensuring the
28protection of environmentally and ecologically sensitive areas.
29The environmentally and ecologically sensitive areas element shall
30be developed by the administrator, in conjunction with appropriate
31local agencies, and shall include all of the following:

32(1) Identification and prioritization of environmentally and
33ecologically sensitive areas inbegin delete marineend deletebegin insert stateend insert waters and along the
34coast. Identification and prioritization of environmentally and
35ecologically sensitive areas shall not prevent or excuse the use of
36all reasonably available containment and cleanup resources from
37being used to protect every environmentally and ecologically
38sensitive area possible. Environmentally and ecologically sensitive
39areas shall be prioritized through the evaluation of criteria,
40including, but not limited to, all of the following:

P26   1(A) Risk of contamination by oil after a spill.

2(B) Environmental, ecological, recreational, and economic
3importance.

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

5(2) Regional maps depicting environmentally and ecologically
6sensitive areas inbegin delete marineend deletebegin insert stateend insert waters or along the coast that shall
7be distributed to facilities and local and state agencies. The maps
8shall designate those areas that have particularly high priority for
9protection against oil spills.

10(3) A plan for protection actions required to be taken in the
11event of an oil spill for each of the environmentally and
12ecologically sensitive areas and protection priorities for the first
1324 to 48 hours after an oil spill shall be specified.

14(4) The location of available response equipment and the
15availability of trained personnel to deploy the equipment to protect
16the priority environmentally and ecologically sensitive areas.

17(5) A program for systemically testing and revising, if necessary,
18protection strategies for each of the priority environmentally and
19ecologically sensitive areas.

20(6) Any recommendations for action that cannot be financed or
21implemented pursuant to existing authority of the administrator,
22which shall also be reported to the Legislature along with
23recommendations for financing those actions.

begin delete

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

end delete
begin insert

25(e) A reporting element that requires the reporting of spills of
26any amount of oil in or on state waters.

end insert
27begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 8574.8 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
28to read:end insert

29

8574.8.  

(a) The administrator shall submit to the Governor
30and the Legislature an amended California oil spill contingency
31plan required, pursuant to Section 8574.7, by January 1, 1993. The
32administrator shall thereafter submit revised plans every three
33years, until the amended plan required pursuant to subdivision (b)
34is submitted.

35(b) The administrator shall submit to the Governor and the
36Legislature an amended California oil spill contingency plan
37required pursuant to Section 8574.7,begin delete byend deletebegin insert on or beforeend insert January 1,
38begin delete 2010,end deletebegin insert 2017,end insert thatbegin delete consists of both aend deletebegin insert addressesend insert marinebegin delete oil spill
39contingency planning section and anend delete
begin insert andend insert inland oilbegin delete spill
P27   1contingency planning sectionend delete
begin insert spillsend insert. The administrator shall
2thereafter submit revised plans every three years.

3begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 8670.2 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
4to read:end insert

5

8670.2.  

The Legislature finds and declares as follows:

6(a) Each year, billions of gallons of crude oil and petroleum
7products are transported by vesselbegin insert, railroad, truck,end insert or pipeline
8begin insert over,end insert acrossbegin insert, under,end insert and through thebegin delete marineend delete waters of this state.

9(b) Recent accidents in southern California, Alaska,begin delete andend delete other
10parts of the nationbegin insert, and Canada,end insert have shown thatbegin delete marineend delete
11 transportation of oil can be a significant threat to the environment
12of sensitivebegin delete coastalend delete areas.

13(c) Existing prevention programs are not able to reduce
14sufficiently the risk of significant discharge of petroleum into
15begin delete marineend deletebegin insert stateend insert waters.

16(d) Response and cleanup capabilities and technology are unable
17to remove consistently the majority of spilled oil when major oil
18spills occur inbegin delete marineend deletebegin insert stateend insert waters.

19(e) California’sbegin insert lakes, rivers, other inland waters,end insert coastal waters,
20estuaries, bays, and beaches are treasured environmental and
21economic resourcesbegin delete whichend deletebegin insert thatend insert the state cannot afford to place at
22undue risk from an oil spill.

23(f) Because of the inadequacy of existing cleanup and response
24measures and technology, the emphasis must be put on prevention,
25if the risk and consequences of oil spills are to be minimized.

26(g) Improvements in the design, construction, and operation of
27begin insert rail tank cars, tank trucks,end insert tank ships, terminals, and pipelines;
28improvements in marine safety; maintenance of emergency
29response stations and personnel; and stronger inspection and
30enforcement efforts are necessary to reduce the risks of and from
31a major oil spill.

32(h) A major oil spill inbegin delete marineend deletebegin insert stateend insert waters is extremely
33expensive because of the need to clean up discharged oil, protect
34sensitive environmental areas, and restore ecosystem damage.

35(i) Immediate action must be taken to improve control and
36cleanup technology in order to strengthen the capabilities and
37capacities of cleanup operations.

38(j) California government should improve its response and
39management of oil spills that occur inbegin delete marineend deletebegin insert stateend insert waters.

P28   1(k) Those who transport oil throughbegin insert or nearend insert thebegin delete marineend delete waters
2of the state must meet minimum safety standards and demonstrate
3financial responsibility.

4(l) The federal government plays an important role in preventing
5and responding to petroleum spills and it is in the interests of the
6state to coordinate with agencies of the federal government,
7including the Coast Guardbegin insert and the United States Environmental
8Protection Agencyend insert
, to the greatest degree possible.

9(m) California has approximately 1,100 miles of coast, including
10four marine sanctuariesbegin delete whichend deletebegin insert thatend insert occupy 88,767 square miles.
11The weather, topography, and tidal currents in and around
12California’s coastal ports and waterways make vessel navigation
13challenging. The state’s major ports are among the busiest in the
14world. Approximately 700 million barrels of oil are consumed
15annually by California, with over 500 million barrels being
16transported by vessel. The peculiarities of California’s maritime
17coast require special precautionary measures regarding oil
18pollution.

begin insert

19(n) California has approximately 158,500 square miles of
20interior area where there are approximately 6,800 miles of pipeline
21used for oil distribution, 5,800 miles of Class I railroad track, and
22172,100 miles of maintained roads.

end insert
23begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 8670.3 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
24to read:end insert

25

8670.3.  

Unless the context requires otherwise, the following
26definitions shall govern the construction of this chapter:

27(a) “Administrator” means the administrator for oil spill response
28appointed by the Governor pursuant to Section 8670.4.

29(b) (1) “Best achievable protection” means the highest level of
30protection that can be achieved through both the use of the best
31achievable technology and those manpower levels, training
32procedures, and operational methods that provide the greatest
33degree of protection achievable. The administrator’s determination
34of which measures provide the best achievable protection shall be
35guided by the critical need to protect valuablebegin delete coastalend deletebegin insert naturalend insert
36 resources andbegin delete marineend deletebegin insert stateend insert waters, while also considering all of
37the following:

38(A) The protection provided by the measure.

39(B) The technological achievability of the measure.

40(C) The cost of the measure.

P29   1(2) The administrator shall not use a cost-benefit or
2cost-effectiveness analysis or any particular method of analysis in
3determining which measures provide the best achievable protection.
4The administrator shall instead, when determining which measures
5provide best achievable protection, give reasonable consideration
6to the protection provided by the measures, the technological
7achievability of the measures, and the cost of the measures when
8establishing the requirements to provide the best achievable
9protection for begin delete coastal and marineend delete begin insert the naturalend insert resourcesbegin insert of the stateend insert.

10(c) (1) “Best achievable technology” means that technology
11that provides the greatest degree of protection, taking into
12consideration both of the following:

13(A) Processes that are being developed, or could feasibly be
14developed anywhere in the world, given overall reasonable
15expenditures on research and development.

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

17(2) In determining what is the best achievable technology
18pursuant to this chapter, the administrator shall consider the
19effectiveness and engineering feasibility of the technology.

begin insert

20(d) “California oil spill contingency plan” means the California
21oil spill contingency plan prepared pursuant to Article 3.5
22(commencing with Section 8574.1) of Chapter 7.

end insert
begin delete

23(d)

end delete

24begin insert(e)end insert “Dedicated response resources” means equipment and
25personnel committed solely to oil spill response, containment, and
26cleanup that are not used for any other activity that would adversely
27affect the ability of that equipment and personnel to provide oil
28spill response services in the timeframes for which the equipment
29and personnel are rated.

begin delete

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

end delete

31(f) “Environmentally sensitive area” means an area defined
32pursuant to the applicable area contingency plansbegin insert or geographic
33response plansend insert
, as created and revised by the Coast Guardbegin insert, the
34United States Environmental Protection Agency,end insert
and the
35administrator.

begin insert

36(g) (1) “Facility” means any of the following located in state
37waters or located where an oil spill may impact state waters:

end insert
begin insert

38(A) A building, structure, installation, or equipment used in oil
39exploration, oil well drilling operations, oil production, oil refining,
P30   1oil storage, oil gathering, oil processing, oil transfer, oil
2distribution, or oil transportation.

end insert
begin insert

3(B) A marine terminal.

end insert
begin insert

4(C) A pipeline that transports oil.

end insert
begin insert

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

end insert
begin insert

6(E) A drill ship, semisubmersible drilling platform, jack-up type
7drilling rig, or any other floating or temporary drilling platform.

end insert
begin insert

8(2) “Facility” does not include any of the following:

end insert
begin insert

9(A) A vessel, except a vessel located and used for any purpose
10described in subparagraph (E) of paragraph (1).

end insert
begin insert

11(B) An owner or operator subject to Chapter 6.67 (commencing
12with Section 25270) or Chapter 6.75 (commencing with Section
1325299.10) of Division 20 of the Health and Safety Code.

end insert
begin insert

14(C) Operations on a farm, nursery, logging site, or construction
15site that are either of the following:

end insert
begin insert

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

end insert
begin insert

17(ii) Have a useable tank storage capacity not exceeding 75,000
18gallons.

end insert
begin insert

19(D) A small craft refueling dock.

end insert
begin delete

20(g) “Inland spill” means a release of at least one barrel (42
21gallons) of oil into inland waters that is not authorized by any
22federal, state, or local governmental entity.

end delete
begin delete

23(h) “Inland waters” means waters of the state other than marine
24waters, but not including groundwater.

end delete
begin delete

25(i)

end delete

26begin insert(h)end insert “Local government” means a chartered or general law city,
27a chartered or general law county, or a city and county.

begin delete

28(j) (1) “Marine facility” means any facility of any kind, other
29than a tank ship or tank barge, that is or was used for the purposes
30of exploring for, drilling for, producing, storing, handling,
31transferring, processing, refining, or transporting oil and is located
32in marine waters, or is located where a discharge could impact
33marine waters unless the facility is either of the following:

34(A) Subject to Chapter 6.67 (commencing with Section 25270)
35or Chapter 6.75 (commencing with Section 25299.10) of Division
3620 of the Health and Safety Code.

37(B) Placed on a farm, nursery, logging site, or construction site
38and does not exceed 20,000 gallons in a single storage tank.

P31   1(2) For the purposes of this chapter, “marine facility” includes
2a drill ship, semisubmersible drilling platform, jack-up type drilling
3rig, or any other floating or temporary drilling platform.

4(3) For the purposes of this chapter, “marine facility” does not
5include a small craft refueling dock.

6(k)

end delete

7begin insert(i)end insert (1) “Marine terminal” means anybegin delete marineend delete facility used for
8transferring oil to or from a tank ship or tank barge.

9(2) “Marine terminal” includes, for purposes of this chapter, all
10piping not integrally connected to a tank facility, as defined in
11subdivisionbegin delete (m)end deletebegin insert (n)end insert of Section 25270.2 of the Health and Safety
12Code.

begin delete

13(l) “Marine waters” means those waters subject to tidal
14influence, and includes the waterways used for waterborne
15commercial vessel traffic to the Port of Sacramento and the Port
16of Stockton.

17(m)

end delete

18begin insert(j)end insert “Mobile transfer unit” meansbegin delete a small marine fueling facility
19that isend delete
a vehicle, truck, or trailer, including all connecting hoses
20and piping, used for the transferring of oil at a location where a
21discharge could impactbegin delete marineend delete watersbegin insert of the stateend insert.

begin delete

22(n)

end delete

23begin insert(k)end insert “Nondedicated response resources” means those response
24resources identified by an Oil Spill Response Organization for oil
25spill response activities that are not dedicated response resources.

begin delete

26(o)

end delete

27begin insert(l)end insert “Nonpersistent oil” means a petroleum-based oil, such as
28gasoline or jet fuel, that evaporates relatively quickly and is an oil
29with hydrocarbon fractions, at least 50 percent of which, by
30volume, distills at a temperature of 645 degrees Fahrenheit, and
31at least 95 percent of which, by volume, distills at a temperature
32of 700 degrees Fahrenheit.

begin delete

33(p)

end delete

34begin insert(m)end insert “Nontank vessel” means a vessel of 300 gross tons or greater
35that carries oil, but does not carry that oil as cargo.

begin delete

36(q)

end delete

37begin insert(n)end insert “Oil” means any kind of petroleum, liquid hydrocarbons,
38or petroleum products or any fraction or residues therefrom,
39including, but not limited to, crude oil, bunker fuel, gasoline, diesel
P32   1fuel, aviation fuel, oil sludge, oil refuse, oil mixed with waste, and
2liquid distillates from unprocessed natural gas.

begin delete

3(r)

end delete

4begin insert(o)end insert “Oil spill cleanup agent” means a chemical, or any other
5substance, used for removing, dispersing, or otherwise cleaning
6up oil or any residual products of petroleum in, or on, any of the
7waters of the state.

begin delete

8(s)

end delete

9begin insert(p)end insert “Oil spill contingency plan” or “contingency plan” means
10the oil spill contingency plan required pursuant to Article 5
11(commencing with Section 8670.28).

begin delete

12(t)

end delete

13begin insert(q)end insert (1) “Oil Spill Response Organization” or “OSRO” means
14an individual, organization, association, cooperative, or other entity
15that provides, or intends to provide, equipment, personnel, supplies,
16or other services directly related to oil spill containment, cleanup,
17or removal activities.

begin delete

18(2) A “rated OSRO” means an OSRO that has received a
19satisfactory rating from the administrator for a particular rating
20level established pursuant to Section 8670.30.

end delete
begin delete

21(3)

end delete

22begin insert(2)end insert “OSRO” does not include an owner or operator with an oil
23spill contingency plan approved by the administrator or an entity
24that only provides spill management services, or who provides
25services or equipment that are only ancillary to containment,
26cleanup, or removal activities.

begin delete

27(u) “Onshore facility” means a facility of any kind that is located
28entirely on lands not covered by marine waters.

end delete
begin delete

29(v)

end delete

30begin insert(r)end insert (1) “Owner” or “operator” means any of the following:

31(A) In the case of a vessel, a person who owns, has an ownership
32interest in, operates, charters by demise, orbegin delete leases,end deletebegin insert leasesend insert the vessel.

33(B) In the case of abegin delete marineend delete facility, a person who owns, has an
34ownership interest in, or operates thebegin delete marineend delete facility.

35(C) Except as provided in subparagraph (D), in the case of a
36vessel orbegin delete marineend delete facility, where title or control was conveyed due
37to bankruptcy, foreclosure, tax delinquency, abandonment, or
38similar means to an entity of state or local government, a person
39who owned, held an ownership interest in, operated, or otherwise
P33   1controlled activities concerning the vessel orbegin delete marineend delete facility
2immediately beforehand.

3(D) An entity of the state or local government that acquired
4ownership or control of a vessel orbegin delete marineend delete facility, when the entity
5of the state or local government has caused or contributed to a spill
6or discharge of oil intobegin delete marineend delete watersbegin insert of the stateend insert.

7(2) “Owner” or “operator” does not include a person who,
8without participating in the management of a vessel orbegin delete marineend delete
9 facility, holds indicia of ownership primarily to protect the person’s
10security interest in the vessel orbegin delete marineend delete facility.

11(3) “Operator” does not include a person who owns the land
12underlying abegin delete marineend delete facility or the facility itself if the person is
13not involved in the operations of the facility.

begin delete

14(w)

end delete

15begin insert(s)end insert “Person” means an individual, trust, firm, joint stock
16company, or corporation, including, but not limited to, a
17government corporation, partnership, and association. “Person”
18also includes a city, county, city and county, district, and the state
19or any department or agency thereof, and the federal government,
20or any department or agency thereof, to the extent permitted by
21law.

begin delete

22(x)

end delete

23begin insert(t)end insert “Pipeline” means a pipeline used at any time to transport oil.

begin delete

24(y) “Reasonable worst case spill” means, for the purposes of
25preparing contingency plans for a nontank vessel, the total volume
26of the largest fuel tank on the nontank vessel.

end delete
begin insert

27(u) “Railroad” means a railroad, railway, rail car, rolling
28stock, or train.

end insert
begin insert

29(v) “Rated OSRO” means an OSRO that has received a
30satisfactory rating from the administrator for a particular rating
31level established pursuant to Section 8670.30.

end insert
begin delete

32(z)

end delete

33begin insert(w)end insert “Responsible party” or “party responsible” means any of
34the following:

35(1) The owner or transporter of oil or a person or entity accepting
36responsibility for the oil.

37(2) The owner, operator, or lessee of, or a person that charters
38by demise, a vessel orbegin delete marineend delete facility, or a person or entity
39accepting responsibility for the vessel orbegin delete marineend delete facility.

begin delete

40(aa)

end delete

P34   1begin insert(x)end insert “Small craft” means a vessel, other than a tank ship or tank
2barge, that is less than 20 meters in length.

begin delete

3(ab)

end delete

4begin insert(y)end insert “Small craft refueling dock” means a waterside operation
5that dispenses only nonpersistent oil in bulk and small amounts of
6persistent lubrication oil in containers primarily to small craft and
7meets both of the following criteria:

8(1) Has tank storage capacity not exceeding 20,000 gallons in
9any single storage tank or tank compartment.

10(2) Has total usable tank storage capacity not exceeding 75,000
11gallons.

begin delete

12(ac)

end delete

13begin insert(z)end insert “Small marine fueling facility” means either of the following:

14(1) A mobile transfer unit.

15(2) A fixed facility that is not a marine terminal, that dispenses
16primarily nonpersistent oil, that may dispense small amounts of
17persistent oil, primarily to small craft, and that meets all of the
18following criteria:

19(A) Has tank storage capacity greater than 20,000 gallons but
20not more than 40,000 gallons in any single storage tank or storage
21tank compartment.

22(B) Has total usable tank storage capacity not exceeding 75,000
23gallons.

24(C) Had an annual throughput volume of over-the-water transfers
25of oil that did not exceed 3,000,000 gallons during the most recent
26preceding 12-month period.

begin delete

27(ad) “Spill” or “discharge”

end delete

28begin insert(aa)end insertbegin insertend insertbegin insert“Spill,” “discharge,” or “oil spill” end insertmeans a release ofbegin delete at
29least one barrel (42 gallons)end delete
begin insert any amountend insert of oil intobegin delete marineend delete waters
30begin insert of the stateend insert that is not authorized by a federal, state, or local
31government entity.

begin delete

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

35(af)

end delete

36begin insert(ab)end insert “Tank barge” means a vessel that carries oil in commercial
37quantities as cargo but is not equipped with a means of
38self-propulsion.

begin delete

39(ag)

end delete

P35   1begin insert(ac)end insert “Tank ship” means a self-propelled vessel that is
2constructed or adapted for the carriage of oil in bulk or in
3commercial quantities as cargo.

begin delete

4(ah)

end delete

5begin insert(ad)end insert “Tank vessel” means a tank ship or tank barge.

begin delete

6(ai)

end delete

7begin insert(ae)end insert “Vessel” means a watercraft or ship of any kind, including
8every structure adapted to be navigated from place to place for the
9transportation of merchandise or persons.

begin delete

10(aj)

end delete

11begin insert(af)end insert “Vessel carrying oil as secondary cargo” means a vessel
12that does not carry oil as a primary cargo, but does carry oilbegin delete in
13bulkend delete
asbegin delete cargo or cargo residue.end deletebegin insert cargo. The administrator may
14establish minimum oil volume amounts or other criteria by
15regulations.end insert

begin delete

16This section shall become operative on January 1, 2012.

end delete
begin insert

17(ag) “Waters of the state” or “state waters” means any surface
18water, including saline waters, marine waters, and freshwaters,
19within the boundaries of the state but does not include
20groundwater.

end insert
21begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 8670.5 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
22to read:end insert

23

8670.5.  

The Governor shall ensure that the state fully and
24adequately responds to all oil spills inbegin delete marineend delete watersbegin insert of the stateend insert.
25The administrator, acting at the direction of the Governor, shall
26implement activities relating to oil spill response, including drills
27and preparedness and oil spill containment and cleanup. The
28administrator shall also represent the state in any coordinated
29response efforts with the federal government.

30begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 8670.7 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
31to read:end insert

32

8670.7.  

(a) The administrator, subject to the Governor, has
33the primary authority to direct prevention, removal, abatement,
34response, containment, and cleanup efforts with regard to all
35aspects of any oil spill inbegin delete the marineend delete waters of the state, in
36accordance with any applicablebegin delete marineend delete facility or vessel
37contingency plan and the California oil spill contingency plan. The
38administrator shall cooperate with any federal on-scene coordinator,
39as specified in the National Contingency Plan.

P36   1(b) The administrator shall implement the California oil spill
2contingency plan, required pursuant to Section 8574.1, to the fullest
3extent possible.

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

5(1) Be present at the location of any oil spill of more than
6100,000 gallons inbegin delete marineend delete watersbegin insert of the stateend insert, as soon as possible
7after notice of the discharge.

8(2) Ensure that persons trained in oil spill response and cleanup,
9whether employed by the responsible party, the state, or another
10private or public person or entity, are onsite to respond to, contain,
11and clean up any oil spill inbegin delete marineend delete watersbegin insert of the stateend insert, as soon as
12possible after notice of the discharge.

13(d) Throughout the response and cleanup process, the
14administrator shall apprise the air quality management district or
15air pollution control district having jurisdiction over the area in
16which the oil spill occurred and the local governmentbegin delete entitiesend delete
17begin insert agenciesend insert that are affected by the spill.

18(e) The administrator, with the assistancebegin insert, as needed,end insert of the
19begin insert Office of theend insert State Fire Marshal,begin insert the Public Utilities Commission,end insert
20 the State Lands Commission,begin insert or other state agency,end insert and the federal
21on-scene coordinator, shall determine the cause and amount of the
22discharge.

23(f) The administrator shall have the state authority over the use
24of all response methods, including, but not limited to, in situ
25burning, dispersants, and any oil spill cleanup agents in connection
26with an oil discharge. The administrator shall consult with the
27federal on-scene coordinator prior to exercising authority under
28this subdivision.

29(g) (1) The administrator shall conduct workshops, consistent
30with the intent of this chapter, with the participation of appropriate
31local, state, and federal agencies, including the State Air Resources
32Board, air pollution controlbegin delete districts,end delete and air quality management
33districts, and affected private organizations, on the subject of oil
34spill response technologies, including in situ burning. The
35workshops shall review the latest research and findings regarding
36the efficacy and toxicity of oil spill cleanup agents and other
37technologies, their potential public health and safety and
38environmental impacts, and any other relevant factors concerning
39their use in oil spill response. In conducting these workshops, the
40administrator shall solicit the views of all participating parties
P37   1concerning the use of these technologies, with particular attention
2to any special considerations that apply to coastal areas andbegin delete marineend delete
3 waters of the state.

4(2) The administrator shall publish guidelines and conduct
5periodic reviews of the policies, procedures, and parameters for
6the use of in situ burning, which may be implemented in the event
7of an oil spill.

8(h) (1) The administrator shall ensure that, as part of the
9response to any significant spill, biologists or other personnel are
10present and provided any support and funding necessary and
11appropriate for the assessment of damages to natural resources
12and for the collection of data and other evidence that may help in
13determining and recovering damages.

14(2) (A) The administrator shall coordinate all actions required
15by state or local agencies to assess injury to, and provide full
16mitigation for injury to, or to restore, rehabilitate, or replace, natural
17resources, including wildlife, fisheries, wildlife or fisheries habitat, begin delete18 and beachesend delete begin insert beaches,end insert andbegin delete otherend delete coastal areas, that are damaged by
19an oil spill. For purposes of this subparagraph, “actions required
20by state or local agencies” include, but are not limited to, actions
21required by state trustees under Section 1006 of the Oil Pollution
22Act of 1990 (33 U.S.C. Sec. 2706) and actions required pursuant
23to Section 8670.61.5.

24(B) The responsible party shall be liable for all coordination
25costs incurred by the administrator.

26(3) This subdivision does not give the administrator any
27authority to administer state or local laws or to limit the authority
28of another state or local agency to implement and enforce state or
29local laws under its jurisdiction, nor does this subdivision limit
30the authority or duties of the administrator under this chapter or
31limit the authority of an agency to enforce existing permits or
32permit conditions.

33(i) (1) The administrator shall enter into a memorandum of
34understanding with the executive director of the State Water
35Resources Control Board, acting for the State Water Resources
36Control Board and the California regional water quality control
37boards, and with the approval of the State Water Resources Control
38Board, to address discharges, other than dispersants, that are
39incidental to, or directly associated with, the response, containment,
P38   1and cleanup of an existing or threatened oil spill conducted
2pursuant to this chapter.

3(2) The memorandum of understanding entered into pursuant
4to paragraph (1) shall address any permits, requirements, or
5authorizations that are required for the specified discharges. The
6memorandum of understanding shall be consistent with
7requirements that protect state water quality and beneficial uses
8and with any applicable provisions of the Porter-Cologne Water
9Quality Control Act (Division 7 (commencing with Section 13000)
10of the Water Code) or the federal Clean Water Act (33 U.S.C. Sec.
111251 et seq.), and shall expedite efficient oil spill response.

begin delete

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

end delete
13begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 8670.7.5 is added to the end insertbegin insertGovernment Codeend insertbegin insert, to
14read:end insert

begin insert
15

begin insert8670.7.5.end insert  

(a) The administrator may adopt regulations to
16implement this chapter pursuant to the Administrative Procedure
17 Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of
18Division 3).

19(b) (1) An emergency regulation adopted pursuant to
20amendments made to this chapter by Assembly Bill 1466 of the
212013-14 Regular Session shall be deemed an emergency and
22necessary to avoid serious harm to the public peace, health, safety,
23or general welfare for the purposes of Sections 11346.1 and
2411349.6, and the administrator is hereby exempt from the
25requirement that he or she describe facts showing the need for
26immediate action and from review by the Office of Administrative
27Law.

28(2) Notwithstanding Section 11346.1, an emergency regulation
29adopted pursuant to paragraph (1) shall remain in effect for 12
30months or until readopted by the administrator, whichever is
31earlier.

end insert
32begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 8670.8 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
33to read:end insert

34

8670.8.  

(a) The administrator shall carry out programs to
35provide training for individuals in response, containment, and
36cleanup operations and equipment, equipment deployment, and
37the planning and management of these programs. These programs
38may include training for members of the California Conservation
39Corps, other response personnel employed by the state, personnel
40employed by other public entities, personnel from marine facilities,
P39   1commercial fishermen and other mariners, and interested members
2of the public. Training may be offered for volunteers.

3(b) The administrator may offer training to anyone who is
4required to take part in response and cleanup efforts under the
5California oil spill contingency plan or under local government
6contingency plans prepared and approved under this chapter.

7(c) Upon request by a local government, the administratorbegin delete shallend delete
8begin insert mayend insert provide a program for training and certification of a local
9emergency responder designated as a local spill response manager
10by a local government with jurisdiction over or directly adjacent
11tobegin delete marineend delete watersbegin insert of the stateend insert.

12(d) Trained and certified local spill response managers shall
13participate in all drills upon request of the administrator.

14(e) As part of the training and certification program, the
15administrator shall authorize a local spill response manager to train
16and certify volunteers.

17(f) In the event of an oil spill, local spill response managers
18trained and certified pursuant to subdivision (c) shall provide the
19state onscene coordinator with timely information on activities
20and resources deployed by local government in response to the oil
21spill. The local spill response manager shall cooperate with the
22administrator and respond in a manner consistent with the area
23contingency plan to the extent possible.

24(g) Funding for activities undertaken pursuant to subdivisions
25(a) to (c), inclusive, shall be from the Oil Spill Prevention and
26Administration Fund created pursuant to Section 8670.38.

27(h) All training provided by the administrator shall follow the
28requirements of applicable federal and state occupational safety
29and health standards adopted by the Occupational Safety and
30Health Administration of the Department of Labor and the
31begin delete California Occupational, Safety,end deletebegin insert Occupational Safetyend insert and Health
32Standards Board.

33begin insert

begin insertSEC. 11.end insert  

end insert

begin insertSection 8670.8.3 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
34to read:end insert

35

8670.8.3.  

The administratorbegin delete shallend deletebegin insert mayend insert offer grants to a local
36government with jurisdiction over or directly adjacent tobegin delete marineend delete
37 watersbegin insert of the stateend insert to provide oil spill response equipment to be
38deployed by a local spill response manager certified pursuant to
39Section 8670.8. The administratorbegin delete shallend deletebegin insert mayend insert request the Legislature
40to appropriate funds from the Oil Spill Prevention and
P40   1Administration Fund created pursuant to Section 8670.38 for the
2purposes of this section.

3begin insert

begin insertSEC. 12.end insert  

end insert

begin insertSection 8670.8.5 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
4to read:end insert

5

8670.8.5.  

The administrator may use volunteer workers in
6response, containment, restoration, wildlife rehabilitation, and
7cleanup efforts for oil spills inbegin delete marineend delete watersbegin insert of the stateend insert. The
8volunteers shall be deemed employees of the state for the purpose
9of workers’ compensation under Article 2 (commencing with
10Section 3350) of Chapter 2 of Part 1 of Division 4 of the Labor
11Code. Any payments for workers’ compensation pursuant to this
12section shall be made from the Oil Spill Response Trust Fund
13created pursuant to Section 8670.46.

14begin insert

begin insertSEC. 13.end insert  

end insert

begin insertSection 8670.9 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
15to read:end insert

16

8670.9.  

(a) The administrator shall enter into discussions on
17behalf of the state with the States of Alaska, Hawaii, Oregon, and
18Washington, for the purpose of developing interstate agreements
19regarding oil spill prevention and response. The agreements shall
20address, including, but not limited to, all of the following:

21(1) Coordination of vessel safety and traffic.

22(2) Spill prevention equipment and response required onbegin delete tank
23ships and tank barges and at terminalsend delete
begin insert vessels and at facilitiesend insert.

24(3) The availability of oil spill response and cleanup equipment
25and personnel.

26(4) Other matters that may relate to the transport of oil and oil
27spill prevention, response, and cleanup.

28(b) The administrator shall coordinate the development of these
29agreements with the Coast Guard, the Province of British Columbia
30in Canada, and the Republic of Mexico.

31begin insert

begin insertSEC. 14.end insert  

end insert

begin insertSection 8670.12 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
32to read:end insert

33

8670.12.  

(a) The administrator shall conduct studies and
34evaluations necessary for improving oil spill response, containment,
35and cleanup and oil spill wildlife rehabilitation inbegin delete marineend delete waters
36begin insert of the stateend insert andbegin delete marineend delete oil transportation systems. The administrator
37may expend moneys from the Oil Spill Prevention and
38Administration Fund created pursuant to Section 8670.38, enter
39into consultation agreements, and acquire necessary equipment
P41   1and services for the purpose of carrying out these studies and
2evaluations.

3(b) The administrator shall study the use and effects of
4dispersants, incineration, bioremediation, and any other methods
5used to respond to a spill. The study shall periodically be updated
6to ensure the best achievable protection from the use of those
7methods. Based upon substantial evidence in the record, the
8administrator may determine in individual cases that best
9achievable protection is provided by establishing requirements
10begin delete whichend deletebegin insert thatend insert provide the greatest degree of protection achievable
11without imposing costsbegin delete whichend deletebegin insert thatend insert significantly outweigh the
12incremental protection that would otherwise be provided. The
13studies shall do all of the following:

14(1) Evaluate the effectiveness of dispersants and other chemical
15agents in oil spill response under varying environmental conditions.

16(2) Evaluate potential adverse impacts on the environment and
17public health including, but not limited to, adverse toxic impacts
18on water quality, fisheries, and wildlife with consideration to
19bioaccumulation and synergistic impacts, and the potential for
20human exposure, including skin contact and consumption of
21contaminated seafood.

22(3) Recommend appropriate uses and limitations on the use of
23dispersants and other chemical agents to ensure they are used only
24in situations where the administrator determines they are effective
25and safe.

26(c) The administrator shall evaluate the feasibility of using
27commercial fishermen and other mariners for oil spill containment
28and cleanup. The study shall examine the following:

29(1) Equipment and technology needs.

30(2) Coordination with private response personnel.

31(3) Liability and insurance.

32(4) Compensation.

33(d) The studies shall be performed in conjunction with any
34studies performed by federal, state, and international entities. The
35administrator may enter into contracts for the studies.

36begin insert

begin insertSEC. 15.end insert  

end insert

begin insertSection 8670.14 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
37to read:end insert

38

8670.14.  

The administrator shall coordinate the oil spill
39prevention and response programs andbegin delete marineend delete facility, tank vessel,
P42   1and nontank vessel safety standards of the state with federal
2programsbegin insert as appropriate andend insert to the maximum extent possible.

3begin insert

begin insertSEC. 16.end insert  

end insert

begin insertSection 8670.19 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
4to read:end insert

5

8670.19.  

(a) The administrator shall periodically conduct a
6comprehensive review of all oil spill contingency plans. The
7administrator shall do both of the following:

8(1) Segment thebegin delete coastend deletebegin insert stateend insert into appropriate areas as necessary.

9(2) Evaluate the oil spill contingency plans for each area to
10determine if deficiencies exist in equipment, personnel, training,
11and any other area determined to be necessary, including those
12response resources properly authorized for cascading into the area,
13to ensure the best achievable protection ofbegin delete the coastline, set forth
14in the California oil spill contingency plan, including the marine
15oil spill contingency planning sectionend delete
begin insert state waters from oil spillsend insert.

16(b) If the administrator finds that deficiencies exist, the
17administrator shall, by the process set forth in Section 8670.31,
18remand any oil spill contingency plans to the originating party
19with recommendations for amendments necessary to ensure that
20thebegin delete coastline isend deletebegin insert waters of the state areend insert protected.

21begin insert

begin insertSEC. 17.end insert  

end insert

begin insertSection 8670.25 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
22to read:end insert

23

8670.25.  

(a) A person who, without regard to intent or
24negligence, causes or permits any oil to be discharged in or on the
25begin delete marine waters or inlandend delete waters of the state shall immediately
26contain, clean up, and remove the oil in the most effective manner
27that minimizes environmental damage and in accordance with the
28applicable contingency plans, unless ordered otherwise by the
29Coast Guard or the administrator.

30(b) If there is a spill, an owner or operator shall comply with
31the applicable oil spill contingency plan approved by the
32administrator.

33begin insert

begin insertSEC. 18.end insert  

end insert

begin insertSection 8670.25.5 of the end insertbegin insertGovernment Codeend insertbegin insert is
34amended to read:end insert

35

8670.25.5.  

(a) (1) Without regard to intent or negligence, any
36party responsible for the discharge or threatened discharge of oil
37inbegin delete marineend delete watersbegin insert of the stateend insert shall report the discharge immediately
38to the Office of Emergency Services pursuant to Sectionbegin delete 25507end delete
39begin insert 25510end insert of the Health and Safety Code.

P43   1(2) If the information initially reported pursuant to paragraph
2(1) was inaccurate or incomplete, or if the quantity of oil discharged
3has changed, any party responsible for the discharge or threatened
4discharge of oil inbegin delete marineend delete watersbegin insert of the stateend insert shall report the
5updated information immediately to the Office of Emergency
6Services pursuant to paragraph (1). The report shall contain the
7accurate or complete information, or the revised quantity of oil
8discharged.

9(b) Immediately upon receiving notification pursuant to
10subdivision (a), the Office of Emergency Services shall notify the
11administrator, the State Lands Commission, the California Coastal
12Commission, the California regional water quality control board
13having jurisdiction over the location of the discharged oil, and the
14appropriate local governmental agencies in the area surrounding
15the discharged oil, and take the actions required by subdivision
16(d) of Section 8589.7. If the spill has occurred within the
17jurisdiction of the San Francisco Bay Conservation and
18Development Commission, the Office of Emergency Services shall
19notify that commission. Each public agency specified in this
20subdivision shall adopt an internal protocol over communications
21regarding the discharge of oil and file the internal protocol with
22the Office of Emergency Services.

23(c) The 24-hour emergency telephone number of the Office of
24Emergency Services shall be posted at everybegin insert railroad dispatch,
25pipeline operator control center, and marineend insert
terminal, at the area
26of control of every marine facility, and on the bridge of every
27tankship in marine waters.

begin delete

28(d) This section does not apply to discharges, or potential
29discharges, of less than one barrel (42 gallons) of oil unless a more
30restrictive reporting standard is adopted in the California oil spill
31contingency plan prepared pursuant to Section 8574.1.

end delete
begin delete

32(e)

end delete

33begin insert(d)end insert Except as otherwise provided in this section and Section
348589.7, a notification made pursuant to this section shall satisfy
35any immediate notification requirement contained in any permit
36issued by a permitting agency.

37begin insert

begin insertSEC. 19.end insert  

end insert

begin insertSection 8670.26 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
38to read:end insert

39

8670.26.  

Any local or state agency responding tobegin delete a spill ofend deletebegin insert anend insert
40 oilbegin insert spillend insert shall notify the Office of Emergency Services, if
P44   1notificationbegin delete asend deletebegin insert isend insert required under Section 8670.25.5, Section 13272
2of the Water Code, or any other notification procedure adopted in
3the California oil spill contingency plan has not occurred.

4begin insert

begin insertSEC. 20.end insert  

end insert

begin insertSection 8670.27 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
5to read:end insert

6

8670.27.  

(a) (1) All potentially responsible parties for
7begin delete dischargedend deletebegin insert anend insert oilbegin insert spillend insert and all of their agents and employees and
8all state and local agencies shall carry out response and cleanup
9operations in accordance with the applicable contingency plan,
10unless directed otherwise by the administrator or the Coast Guard.

11(2) Except as provided in subdivision (b), the responsible party,
12potentially responsible parties, their agents and employees, the
13operators of all vessels docked at a marine facility that is the source
14of a discharge, and all state and local agencies shall carry out spill
15response consistent with the California oil spill contingency plan
16or other applicable federal, state, or local spill response plans, and
17owners and operators shall carry out spill response consistent with
18their applicable response contingency plans, unless directed
19otherwise by the administrator or the Coast Guard.

20(b) If a responsible party or potentially responsible party
21reasonably, and in good faith, believes that the directions or orders
22given by the administrator pursuant to subdivision (a) will
23substantially endanger the public safety or the environment, the
24party may refuse to act in compliance with the orders or directions
25of the administrator. The responsible party or potentially
26responsible party shall state, at the time of the refusal, the reasons
27why the party refuses to follow the orders or directions of the
28administrator. The responsible party or potentially responsible
29party shall give the administrator written notice of the reasons for
30the refusal within 48 hours of refusing to follow the orders or
31directions of the administrator. In any civil or criminal proceeding
32commenced pursuant to this section, the burden of proof shall be
33on the responsible party or potentially responsible party to
34demonstrate, by clear and convincing evidence, why the refusal
35to follow the orders or directions of the administrator was justified
36under the circumstances.

37begin insert

begin insertSEC. 21.end insert  

end insert

begin insertSection 8670.28 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
38to read:end insert

39

8670.28.  

(a) The administrator, taking into consideration the
40begin delete marineend delete facility or vessel contingency plan requirements ofbegin delete the
P45   1national and California contingency plans,end delete
the State Lands
2Commission, thebegin insert Office of theend insert State Fire Marshal,begin delete andend delete the
3California Coastal Commissionbegin insert, and other state and federal
4agencies,end insert
shall adopt and implement regulations governing the
5adequacy of oil spill contingency plans to be prepared and
6implemented under this article. All regulations shall be developed
7in consultation with the Oil Spill Technical Advisory Committee,
8and shall be consistent with the California oil spill contingency
9plan and not in conflict with the National Contingency Plan. The
10regulations shall provide for the best achievable protection of
11begin delete coastal and marineend deletebegin insert waters and naturalend insert resourcesbegin insert of the stateend insert. The
12regulations shall permit the development, application, and use of
13an oil spill contingency plan for similar vessels, pipelines,
14terminals, and facilities within a single company or organization,
15and across companies and organizations. The regulations shall, at
16a minimum, ensure all of the following:

17(1) All areas ofbegin delete the marineend deletebegin insert stateend insert watersbegin delete of the stateend delete are at all
18times protected by prevention, response, containment, and cleanup
19equipment and operations.begin delete For the purposes of this section, “marine
20waters” includes the waterways used for waterborne commercial
21vessel traffic to the Port of Stockton and the Port of Sacramento.end delete

22(2) Standards set for response, containment, and cleanup
23equipment and operations are maintained and regularly improved
24to protect the resources of the state.

25(3) All appropriate personnel employed by operators required
26to have a contingency plan receive training in oil spill response
27and cleanup equipment usage and operations.

28(4) Each oil spill contingency plan provides for appropriate
29financial or contractual arrangements for all necessary equipment
30andbegin delete services,end deletebegin insert servicesend insert for the response, containment, and cleanup
31of a reasonable worst case oil spill scenario for eachbegin delete part of the
32coastend delete
begin insert areaend insert the plan addresses.

33(5) Each oil spill contingency plan demonstrates that all
34protection measures are being taken to reduce the possibility of
35an oil spill occurring as a result of the operation of thebegin delete marineend delete
36 facility or vessel. The protection measures shall include, but not
37be limited to, response to disabled vessels and an identification of
38those measures taken to comply with requirements of Division 7.8
39(commencing with Section 8750) of the Public Resources Code.

P46   1(6) Each oil spill contingency plan identifies the types of
2equipment that can be used, the location of the equipment, and the
3time taken to deliver the equipment.

4(7) Eachbegin delete marineend delete facilitybegin insert, as determined by the administrator,end insert
5 conducts a hazard and operability study to identify the hazards
6associated with the operation of the facility, including the use of
7the facility by vessels, due to operating error, equipment failure,
8and external events. For the hazards identified in the hazard and
9operability studies, the facility shall conduct an offsite consequence
10analysisbegin delete whichend deletebegin insert thatend insert, for the most likely hazards, assumes
11pessimistic water and air dispersion and other adverse
12environmental conditions.

13(8) Each oil spill contingency plan contains a list of contacts to
14call in the event of a drill, threatened discharge of oil, or discharge
15of oil.

16(9) Each oil spill contingency plan identifies the measures to
17be taken to protect the recreational and environmentally sensitive
18areas that would be threatened by a reasonable worst case oil spill
19scenario.

20(10) Standards for determining a reasonable worst case oil spill.
21begin insert However, for a nontank vessel, the reasonable worst case is a spill
22of the total volume of the largest fuel tank on the nontank vessel.end insert

begin delete

23(11) Each oil spill contingency plan includes a timetable for
24implementing the plan.

end delete
begin delete

25(12)

end delete

26begin insert(11)end insert Each oil spill contingency plan specifies an agent for service
27of process. The agent shall be located in this state.

28(b) The regulations and guidelines adopted pursuant to this
29section shall also include provisions to provide public review and
30comment on submitted oil spill contingencybegin delete plans prior to approval.end delete
31begin insert plans.end insert

32(c) The regulations adopted pursuant to this section shall
33specifically address the types of equipment that will be necessary,
34the maximum time that will be allowed for deployment, the
35maximum distance to cooperating response entities, the amounts
36of dispersant, and the maximum time required for application,
37should the use of dispersants be approved. Upon a determination
38by the administrator that booming is appropriate at the site and
39necessary to provide best achievable protection, the regulations
P47   1shall require that vessels engaged in lightering operations be
2boomed prior to the commencement of operations.

3(d) The administrator shall adopt regulations and guidelines for
4oil spill contingency plans with regard to mobile transfer units,
5small marine fueling facilities, and vessels carrying oil as secondary
6cargo that acknowledge the reduced risk of damage from oil spills
7from those units, facilities, and vessels while maintaining the best
8achievable protection for the public health and safety and the
9environment.

10(e) The regulations adopted pursuant to subdivision (d) shall be
11exempt from review by the Office of Administrative Law.
12Subsequent amendments and changes to the regulations shall not
13be exempt frombegin insert review by theend insert Office of Administrativebegin delete Law review.end delete
14begin insert Law.end insert

begin delete

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

end delete
16begin insert

begin insertSEC. 22.end insert  

end insert

begin insertSection 8670.29 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
17to read:end insert

18

8670.29.  

(a) In accordance with the rules, regulations, and
19policies established by the administrator pursuant to Section
208670.28, an owner or operator of abegin delete marineend delete facility, small marine
21fueling facility, or mobile transfer unit,begin delete prior to operating in the
22marine waters of the state or where an oil spill could impact marine
23waters; andend delete
begin insert orend insert an owner or operator of a tank vessel, nontank
24vessel, or vessel carrying oil as secondary cargo,begin delete beforeend deletebegin insert whileend insert
25 operating in thebegin delete marineend delete waters of the statebegin insert or where a spill could
26impact waters of the stateend insert
, shallbegin delete prepare and implementend deletebegin insert haveend insert an
27oil spill contingency plan that has been submitted to, and approved
28by, the administrator pursuant to Section 8670.31. An oil spill
29contingency plan shall ensure the undertaking of prompt and
30adequate response and removal action in case ofbegin delete an oilend deletebegin insert aend insert spill, shall
31be consistent with the California oil spill contingency plan, and
32shall not conflict with the National Oil and Hazardous Substances
33Pollution Contingency Plan (NCP).

34(b) An oil spill contingency plan shall, at a minimum, meet all
35of the following requirements:

36(1) Be a written document, reviewed for feasibility and
37executability, and signed by the owner or operator, orbegin delete theirend deletebegin insert his or
38herend insert
designee.

39(2) Provide for the use of an incident command system to be
40used during a spill.

P48   1(3) Provide procedures for reporting oil spills to local, state,
2and federal agencies, and include a list of contacts to call in the
3event of a drill, threatened spill, or spill.

4(4) Describe the communication plans to be used during a spillbegin insert,
5 if different from those used by a recognized incident command
6systemend insert
.

7(5) Describe the strategies for the protection of environmentally
8sensitive areas.

9(6) Identify at least one rated OSRO for each rating level
10established pursuant to Section 8670.30. Each identified rated
11OSRO shall be directly responsible by contract, agreement, or
12other approved means to provide oil spill response activities
13pursuant to the oil spill contingency plan. A rated OSRO may
14provide oil spill response activities individually, or in combination
15with another rated OSRO, for a particular owner or operator.

16(7) Identify a qualified individual.

17(8) Provide the name, address, and telephone and facsimile
18numbers for an agent for service of process, located within the
19state and designated to receive legal documents on behalf of the
20owner or operator.

21(9) Provide for training and drills on elements of the plan at
22least annually, with all elements of the plan subject to a drill at
23least once every three years.

24(c) An oil spill contingency plan for a vessel shall also include,
25but is not limited to, all of the following requirements:

26(1) The plan shall be submitted to the administrator at least
27seven days prior to the vessel entering waters of the state.

28(2) The plan shall provide evidence of compliance with the
29International Safety Management Code, established by the
30International Maritime Organization, as applicable.

31(3) If the oil spill contingency plan is for a tank vessel, the plan
32shall include both of the following:

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

34(B) The plan shall specify the types of oil and petroleum cargo
35carried.

36(4) If the oil spill contingency plan is for a nontank vessel, the
37plan shall include both of the following:

38(A) The plan shall specify the type and total amount of fuel
39carried.

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

P49   1(d) An oil spill contingency plan for abegin delete marineend delete facility shall also
2include, but is not limited to, all of the following provisionsbegin insert, as
3appropriateend insert
:

4(1) Provisions for site security and control.

5(2) Provisions for emergency medical treatment and first aid.

6(3) Provisions for safety training, as required by state and federal
7safety laws for all personnel likely to be engaged in oil spill
8response.

9(4) Provisions detailing site layout and locations of
10environmentally sensitive areas requiring special protection.

11(5) Provisions for vessels that are in the operational control of
12the facility for loading and unloading.

begin insert

13(e) Unless preempted by federal law or regulations, an oil spill
14contingency plan for a railroad also shall include, but is not limited
15to, all of the following:

end insert
begin insert

16(1) A list of the types of train cars that may make up the consist.

end insert
begin insert

17(2) A list of the types of oil and petroleum products that may be
18transported.

end insert
begin insert

19(3) A map of track routes and facilities.

end insert
begin insert

20(4) A list, description, and map of any prestaged spill response
21equipment and personnel for deployment of the equipment.

end insert
begin delete

22(e)

end delete

23begin insert(f)end insert The oil spill contingency plan shall be available to response
24personnel and to relevant state and federal agencies for inspection
25and review.

begin delete

26(f)

end delete

27begin insert(g)end insert The oil spill contingency plan shall be reviewed periodically
28and updated as necessary. All updates shall be submitted to the
29administrator pursuant to this article.

begin delete

30(g)

end delete

31begin insert(h)end insert In addition to the regulations adopted pursuant to Section
328670.28, the administrator shall adopt regulations and guidelines
33to implement this section. The regulations and guidelines shall
34provide for the best achievable protection ofbegin delete coastal and marineend delete
35begin insert waters and naturalend insert resourcesbegin insert of the stateend insert. The administrator may
36establish additional oil spill contingency plan requirements,
37including, but not limited to, requirements based on the different
38geographic regions of the state. All regulations and guidelines shall
39be developed in consultation with the Oil Spill Technical Advisory
40Committee.

begin delete

P50   1(h) This section shall become operative on January 1, 2012.

end delete
begin insert

2(i) Notwithstanding subdivision (a) and paragraph (6) of
3subdivision (b), a vessel or facility operating where a spill could
4impact state waters that are not tidally influenced shall identify a
5rated OSRO in the contingency plan no later than January 1, 2016.

end insert
6begin insert

begin insertSEC. 23.end insert  

end insert

begin insertSection 8670.30.5 of the end insertbegin insertGovernment Codeend insertbegin insert is
7amended to read:end insert

8

8670.30.5.  

(a) The administrator may review each oil spill
9contingency plan that has been approved pursuant to Section
108670.29 to determine whether it complies with Sections 8670.28
11and 8670.29.

12(b) If the administrator finds the approved oil spill contingency
13plan is deficient, the plan shall be returned to the operator with
14written reasons why the approved plan was found inadequate and,
15if practicable, suggested modifications or alternatives. The operator
16shall submit a new or modified plan withinbegin delete 90end deletebegin insert 30end insert days that
17responds to the deficiencies identified by the administrator.

18begin insert

begin insertSEC. 24.end insert  

end insert

begin insertSection 8670.31 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
19to read:end insert

20

8670.31.  

(a) Each oil spill contingency plan required under
21this article shall be submitted to the administratorbegin delete before a tank
22vessel, nontank vessel, or vessel carrying oil as secondary cargo
23operates in the marine waters of the state, or before a marine
24facility, small marine fueling facility, or mobile transfer unit,
25operates in the marine waters of the state or where an oil spill
26therefrom could impact marine watersend delete
begin insert for review and approvalend insert.

27(b) The administrator shall review each submitted contingency
28plan to determine whether it complies with the administrator’s
29rules, policies, and regulations adopted pursuant to Section 8670.28
30and 8670.29.begin insert The administrator may issue a preliminary approval
31pending final approval or disapproval.end insert

32(c) Each contingency plan submitted shall be approved or
33disapproved withinbegin delete 180end deletebegin insert 30end insert days after receipt by the administrator.
34The administrator may approve or disapprove portions of a plan.
35A plan is not deemed approved until all portions are approved
36pursuant to this section. The disapproved portion shall be subject
37to the procedures contained in subdivision (d).

38(d) If the administrator finds the submitted contingency plan is
39inadequate under the rules, policies, and regulations of the
40administrator, the plan shall be returned to the submitter with
P51   1written reasons why the plan was found inadequate and, if
2practicable, suggested modifications or alternatives, if appropriate.
3The submitter shall submit a new or modified plan withinbegin delete 90end deletebegin insert 30end insert
4 days after the earlier plan was returned, responding to the findings
5and incorporating any suggested modifications. The resubmittal
6shall be treated as a new submittal and processed according to the
7provisions of this section, except that the resubmitted plan shall
8be deemed approved unless the administrator acts pursuant to
9subdivision (c).begin delete Failure to gain approval after the second
10submission may be determined by the administrator to be a
11violation of this chapter.end delete

12(e) The administrator may make inspections and require drills
13of any oil spill contingency plan that is submitted.

14(f) After the plan has been approved, it shall be resubmitted
15every five years thereafter. The administrator may require earlier
16or more frequent resubmission, if warranted. Circumstances that
17would require an earlier resubmission include, but are not limited
18to, changes in regulations, new oil spill response technologies,
19deficiencies identified in the evaluation conducted pursuant to
20Section 8670.19, or a need for a different oil spill response because
21of increased need to protect endangered species habitat. The
22administrator may deny approval of the resubmitted plan if it is
23no longer considered adequate according to the adopted rules,
24regulations, and policies of the administrator at the time of
25resubmission.

26(g) begin delete(1)end deletebegin deleteend deleteEach begin insertowner or end insertoperator of a tank vessel,begin insert nontankend insert vessel
27carrying oil as a secondary cargo, orbegin delete marineend delete facility who is required
28to file an oil spill response plan or update pursuant to provisions
29of federal law regulatingbegin delete marineend delete oil spill response plans shallbegin delete, for
30informational purposes only,end delete
submitbegin insert, for informational purposes
31only and upon request of the administrator,end insert
a copy of that plan or
32update to the administrator at the time that it is approved by the
33relevant federal agency.

begin delete

34(2) A tank vessel, vessel carrying oil as a secondary cargo, or
35marine facility operator is not required to submit a copy of the
36response plan or update specified in paragraph (1) to the
37administrator if either the vessel or facility is exempt from having
38to file a response plan with the state, or if the content of the plan
39submitted by the operator pursuant to Section 8670.29 is
40substantially the same as the federal response plan or update.

end delete
P52   1begin insert

begin insertSEC. 25.end insert  

end insert

begin insertSection 8670.32 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
2to read:end insert

3

8670.32.  

(a) To reduce the risk of an oil spill as a result of
4fuel, cargo, and lube oil transfers, the administrator shall develop
5and implement a screening mechanism and a comprehensive
6risk-based monitoring program for inspecting the bunkering and
7lightering operations of vessels at anchor and alongside a dock.
8This program shall identify those bunkering and lightering
9operations that pose the highest risk of a pollution incident.

10(b) The administrator shall ensure that all bunkering and
11lightering operations that, pursuant to subdivision (a), pose the
12highest risk of a pollution incident are routinely monitored and
13inspected. The administrator shall coordinate the monitoring and
14inspection program with thebegin delete United Statesend delete Coast Guard.

15(c) The administrator shall establish regulations to provide for
16the best achievable protection during bunkering and lightering
17begin delete operations in the marine environment.end deletebegin insert operations.end insert

18(d) This section shall remain in effect only until January 1, 2015,
19and as of that date is repealed, unless a later enacted statute, that
20is enacted before January 1, 2015, deletes or extends that date.

21begin insert

begin insertSEC. 26.end insert  

end insert

begin insertSection 8670.33 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
22to read:end insert

23

8670.33.  

(a) If the operator of a tank ship or tank barge for
24which a contingency plan has not been approved desires to have
25the tank ship or tank barge enterbegin delete marineend delete waters of the state, the
26administrator may give approval by telephone or facsimile machine
27for the entry of the tank ship or tank barge intobegin delete marineend delete watersbegin insert of
28the stateend insert
under an approved contingency plan applicable to a
29terminal or tank ship, if all of the following are met:

30(1) The terminal or tank ship is the destination of the tank ship
31or tank barge.

32(2) The operator of the terminal or the tank ship provides the
33administrator advance written assurance that the operator assumes
34all responsibility for the operations of the tank ship or tank barge
35while it is inbegin delete marineend delete watersbegin insert of the stateend insert traveling to or from the
36terminal. The assurance may be delivered by hand or by mail or
37may be sent by facsimile machine, followed by delivery of the
38original.

P53   1(3) The approved terminal or tank ship contingency plan
2includes all conditions the administrator requires for the operations
3of tank ship or tank barges traveling to and from the terminal.

4(4) The tank ship or tank barge and its operations meet all
5requirements of the contingency plan for the tank ship or terminal
6that is the destination of the tank ship or tank barge.

7(5) The tank ship or tank barge without an approved contingency
8plan has not enteredbegin delete marineend delete watersbegin insert of the stateend insert more than once in
9the 12-month period preceding the request made under this section.

10(b) At all times that a tank ship or tank barge is inbegin delete marineend delete waters
11begin insert of the stateend insert pursuant to subdivision (a), its operators and all their
12agents and employees shall operate the vessel in accordance with
13the applicable operations manual or, if there is an oil spill, in
14accordance with the directions of the administrator and the
15applicable contingency plan.

16begin insert

begin insertSEC. 27.end insert  

end insert

begin insertSection 8670.34 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
17to read:end insert

18

8670.34.  

This article shall not apply to any tank vessel, nontank
19vessel, or vessel carrying oil as a secondary cargo that enters
20begin delete marineend delete waters of the state because of imminent danger to the lives
21of crew members or if enteringbegin delete marineend delete waters of the state will
22substantially aid in preventing an oil spill or other harm to public
23safety or the environment, if the operators of the tank vessel,
24nontank vessel, or vessel carrying oil as a secondary cargo comply
25with all of the following:

26(a) The operators or crew of the tank vessel, nontank vessel, or
27vessel carrying oil as a secondary cargobegin delete compliesend deletebegin insert complyend insert at all
28times with all orders and directions given by the administrator, or
29his or her designee, while the tank vessel, nontank vessel, or vessel
30carrying oil as a secondary cargo is inbegin delete marineend delete waters of the state,
31unless the orders or directions are contradicted by orders or
32directions of the Coast Guard.

33(b) Except for fuel, oil may be transferred to or from the tank
34vessel, nontank vessel, or vessel carrying oil as a secondary cargo
35while it is inbegin delete marineend delete waters of the state only if permission is
36obtained for the transfer of oil and one of the following conditions
37is met:

38(1) The transfer is necessary for the safety of the crew.

39(2) The transfer is necessary to prevent harm to public safety
40or the environment.

P54   1(3) An oil spill contingency plan is approved or made applicable
2to the tank vessel, nontank vessel, or vessel carrying oil as a
3secondary cargo, under subdivision (c).

4(c) The tank vessel, nontank vessel, or vessel carrying oil as a
5secondary cargo shall leave thebegin delete marineend delete waters of the state as soon
6as it may do so without imminent risk of harm to the crew, public
7safety, or the environment, unless an oil spill contingency plan is
8approved or made applicable to it under this article.

9begin insert

begin insertSEC. 28.end insert  

end insert

begin insertSection 8670.35 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
10to read:end insert

11

8670.35.  

(a) The administrator, taking into consideration the
12California oil spill contingency plan, shall promulgate regulations
13regarding the adequacy of oil spillbegin delete contingency planend delete elements of
14begin delete business and hazardous materialsend delete area plans required pursuant to
15Section 25503 of the Health and Safety Code. In developing the
16begin delete guidelines,end deletebegin insert regulations,end insert the administrator shall consult with the
17Oil Spill Technical Advisory Committee.

18(b) begin deleteAny local government end deletebegin insertThe administrator may offer, to a
19unified program agency end insert
with jurisdiction over or directly adjacent
20tobegin delete marineend delete watersbegin delete may apply forend deletebegin insert of the state,end insert a grant to complete,
21update, or revise an oil spillbegin delete contingency planend delete elementbegin insert of the area
22planend insert
.

23(c) Eachbegin delete contingency planend deletebegin insert oil spillend insert element established under
24this section shall include provisions for training fire and police
25personnel in oil spill response and cleanup equipment use and
26operations.

27(d) Eachbegin delete contingency planend deletebegin insert oil spillend insert element prepared under this
28section shall be consistent with the local government’s local coastal
29program as certified under Section 30500 of the Public Resources
30Code, the California oil spill contingency plan, and the National
31Contingency Plan.

32(e) begin deleteThe end deletebegin insertIf a grant is awarded, the end insertadministrator shall review
33and approve eachbegin delete contingency planend deletebegin insert oil spillend insert element established
34pursuant to this section. If, upon review, the administrator
35determines that thebegin delete contingency planend deletebegin insert oil spillend insert element is inadequate,
36the administrator shall return it to the agency that prepared it,
37specifying the nature and extent of the inadequacies, and, if
38practicable, suggesting modifications. Thebegin delete local governmentend deletebegin insert unified
39programend insert
agency shall submit a new or modifiedbegin delete planend deletebegin insert elementend insert
P55   1 within 90 days after thebegin delete planend deletebegin insert elementend insert was returned, responding to
2the findings and incorporating any suggested modifications.

3(f) The administrator shall review the preparedness ofbegin delete local
4governmentsend delete
begin insert unified program agenciesend insert to determine whether a
5program of grants for completing oil spillbegin delete contingency planend delete
6 elements is desirable and should be continued. If the administrator
7determines that local government preparedness should be improved,
8the administrator shall request the Legislature to appropriate funds
9from the Oil Spill Prevention and Administration Fund for the
10purposes of this section.

begin delete

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

end delete
12begin insert

begin insertSEC. 29.end insert  

end insert

begin insertSection 8670.36 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
13to read:end insert

14

8670.36.  

begin delete(a)end deletebegin deleteend deleteThe administrator shall, within five working days
15after receipt of a contingency plan prepared pursuant to Section
168670.28 or 8670.35,begin delete sendend deletebegin insert postend insert a notice that the plan is available
17for reviewbegin delete to the Oil Spill Technical Advisory Committeeend delete. The
18administrator shall send a copy of the plan within two working
19days after receiving a request from the Oil Spill Technical Advisory
20Committee. The State Lands Commission and the California
21Coastal Commission shall review the plans for facilities or local
22governments within the coastal zone. The San Francisco Bay
23Conservation and Development Commission shall review the plans
24forbegin delete marineend delete facilities or local governments within the area described
25in Sections 66610 and 29101 of the Public Resources Code. Any
26state agency or committee that comments shall submit its comments
27to the administrator withinbegin delete 60end deletebegin insert 15end insert days of receipt of the plan. The
28administrator shall consider allbegin delete comments in approving or
29disapproving the plan.end delete
begin insert comments.end insert

begin delete

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

end delete
31begin insert

begin insertSEC. 30.end insert  

end insert

begin insertSection 8670.37 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
32to read:end insert

33

8670.37.  

(a) The administrator, with the assistance of the State
34Lands Commission, the California Coastal Commission,begin delete andend delete the
35executive director of the San Francisco Bay Conservation and
36Development Commission,begin insert or other appropriate agency,end insert shall
37carry out studies with regard to improvements to contingency
38planning and oil spill response equipment and operations.

39(b) To the greatest extent possible, these studies shall be
40coordinated with studies being done by the federal government,
P56   1and other appropriate state and international entities, and
2duplication with the efforts of other entities shall be minimized.

3(c) The administrator, the State Lands Commission, the
4California Coastal Commission,begin delete andend delete thebegin delete Executive Directorend delete
5begin insert executive directorend insert of the San Francisco Bay Conservation and
6Development Commission,begin insert or other appropriate agencyend insert may be
7reimbursed for all costs incurred in carrying out the studies under
8this section from the Oil Spill Prevention and Administration Fund.

9begin insert

begin insertSEC. 31.end insert  

end insert

begin insertSection 8670.37.5 of the end insertbegin insertGovernment Codeend insertbegin insert is
10amended to read:end insert

11

8670.37.5.  

(a) The administrator shall establish a network of
12rescue and rehabilitation stations forbegin delete sea birds,end deletebegin insert wildlife injured by
13oil spills, includingend insert
seabegin delete otters,end deletebegin insert ottersend insert and other marine mammals.
14In addition to rehabilitative care, the primary focus of the Oiled
15Wildlife Care Network shall include proactive oiled wildlife search
16and collection rescue efforts. These facilities shall be established
17and maintained in a state of preparedness to provide the best
18achievable treatment forbegin delete marine mammalsend deletebegin insert wildlife, mammals,end insert and
19birds affected by an oil spill inbegin delete marineend delete watersbegin insert of the stateend insert. The
20administrator shall consider all feasible management alternatives
21for operation of the network.

22(b) begin insert(1)end insertbegin insertend insertThe first rescue and rehabilitation station established
23pursuant to this section shall be located within the sea otter range
24on the central coast. The administratorbegin insert initiallyend insert shall establish
25regional oiled wildlife rescue and rehabilitation facilities in the
26Los Angeles Harbor area, the San Francisco Bay area, the San
27Diego area, the Monterey Bay area, the Humboldt County area,
28and the Santa Barbarabegin delete area, andend deletebegin insert area. The administrator alsoend insert may
29establishbegin delete thoseend delete facilities in otherbegin delete coastalend delete areas of the state as the
30administrator determines to be necessary.begin delete Oneend delete

31begin insert(2)end insertbegin insertend insertbegin insertOneend insert or more of the oiled wildlife rescue and rehabilitation
32stations shall be open to the public for educational purposes and
33shall be available forbegin delete marineend delete wildlife health research. Wherever
34possible in the establishment of these facilities, the administrator
35shall improve existing authorizedbegin delete marine mammalend deletebegin insert wildlifeend insert
36 rehabilitation facilities and may expand or take advantage of
37existing educational or scientific programs and institutions for
38oiled wildlife rehabilitation purposes. Expenditures shall be
39reviewed by the agencies and organizations specified in subdivision
40(c).

P57   1(c) The administrator shall consult with the United States Fish
2and Wildlife Service, the National Marine Fisheries Service, the
3California Coastal Commission, thebegin delete Executive Directorend deletebegin insert executive
4directorend insert
of the San Francisco Bay Conservation and Development
5Commission, the Marine Mammal Center, and the International
6Bird Rescuebegin delete Centerend delete in the design, planning, construction, and
7operation of the rescue and rehabilitation stations. All proposals
8for the rescue and rehabilitation stations shall be presented before
9a public hearing prior to the construction and operation of any
10rehabilitation station, and, upon completion of the coastal
11protection element of the California oil spill contingency plan,
12shall be consistent with the coastal protection element.

13(d) The administrator may enter into agreements with nonprofit
14organizations to establish and equip wildlife rescue and
15rehabilitation stations and to ensure that they are operated in a
16professional manner in keeping with the pertinent guidance
17documents issued by thebegin delete Office of Spill Prevention and Response
18in the Department of Fish and Gameend delete
begin insert administratorend insert. The
19implementation of the agreement shall not constitute a California
20public works project. The agreement shall be deemed a contract
21for wildlife rehabilitation as authorized by Section 8670.61.5.

22(e) In the event of a spill, the responsible party may request that
23the administrator perform the rescue and rehabilitation of oiled
24wildlife required of the responsible party pursuant to this chapter
25if the responsible party and the administrator enter into an
26agreement for the reimbursement of the administrator’s costs
27incurred in taking the requested action. If the administrator
28performs the rescue and rehabilitation of oiled wildlife, the
29administrator shall primarily utilize the network of rescue and
30rehabilitation stations established pursuant to subdivision (a),
31unless more immediate care is required. Any of those activities
32conducted pursuant to this section or Section 8670.56.5 or
33 8670.61.5 shall be performed under the direction of the
34administrator. This subdivision does not remove the responsible
35party from liability for the costs of,begin delete norend deletebegin insert orend insert the responsibility for,
36the rescue and rehabilitation of oiled wildlife, as established by
37this chapter. This subdivision does not prohibit an owner or
38operator from retaining, in a contingency plan prepared pursuant
39to this article, wildlife rescue and rehabilitation services different
P58   1from the rescue and rehabilitation stations established pursuant to
2this section.

3(f) (1) The administrator shall appoint a rescue and
4rehabilitation advisory board to advise the administrator regarding
5operation of the network of rescue and rehabilitation stations
6established pursuant to subdivision (a), including the economic
7operation and maintenance of the network. For the purpose of
8assisting the administrator in determining what constitutes the best
9achievable treatment for oiled wildlife, the advisory board shall
10provide recommendations to the administrator on the care achieved
11by current standard treatment methods, new or alternative treatment
12methods, the costs of treatment methods, and any other information
13that the advisory board believes that the administrator might find
14useful in making that determination. The administrator shall consult
15with the advisory board in preparing the administrator’s submission
16to the Legislature pursuant tobegin delete subparagraph (A) of paragraph (2)
17of subdivision (end delete
begin deletelend deletebegin delete) of Section 8670.48end deletebegin insert subdivision (a) of Section
188670.40.5end insert
. The administrator shall present the recommendations
19of the advisory board to the Oil Spill Technical Advisory
20Committee created pursuant to Article 8 (commencing with Section
218670.54), upon the request of the committee.

22(2) The advisory board shall consist of a balance between
23representatives of the oil industry, wildlife rehabilitation
24organizations, and academia. One academic representative shall
25be from a veterinary school within this state. The United States
26Fish and Wildlife Service and the National Marine Fisheries
27Service shall be requested to participate as ex officio members.

28(3) (A) The Legislature hereby finds and declares that since
29the administrator may rely on the expertise provided by the
30volunteer members of the advisory board and may be guided by
31their recommendations in making decisions that relate to the
32operation of the network of rescue and rehabilitation stations, those
33members should be entitled to the same immunity from liability
34that is provided other public employees.

35(B) Members of the advisory board, while performing functions
36within the scope of advisory board duties, shall be entitled to the
37same rights and immunities granted public employees by Article
383 (commencing with Section 820) of Chapter 1 of Part 2 of
39Division 3.6 of Title 1. Those rights and immunities are deemed
P59   1to have attached, and shall attach, as of the date of appointment
2of the member to the advisory board.

3(g) The administrator shall ensure the state’s ability to prevent
4the contamination of wildlife and to identify, collect, rescue, and
5treat oiled wildlife through all of the following:

6(1) Providing for the recruitment and training of an adequate
7network of wildlife specialists and volunteers from Oiled Wildlife
8Care Network participant organizations who can be called into
9immediate action in the event of an oil spill to assist in the field
10with collection of live oiled wildlife. The training shall include a
11process for certification of trained volunteers and renewal of
12certifications. The initial wildlife rescue training shall include field
13experience in species identification and appropriate field collection
14techniques for species at risk in different spills. In addition to
15training in wildlife rescue, the administrator shall provide for
16appropriate hazardous materials training for new volunteers and
17contract personnel, with refresher courses offered as necessary to
18allow for continual readiness of search and collection teams.begin delete The
19Office of Spill Prevention and Response in the Department of Fish
20and Game is not requiredend delete
begin insert Moneys in the Oil Spill Prevention and
21Administration Fund shall not be usedend insert
to reimburse volunteers for
22time or travel associated with requiredbegin delete wildlife rescue or hazardous
23materialsend delete
training.

24(2) Developing and implementing a plan for the provision of
25emergency equipment for wildlife rescue in strategic locations to
26facilitate ready deployment in the case of an oil spill. The
27administrator shall ensure that the equipment identified as
28necessary in his or her wildlife response plan is available and
29deployed in a timely manner to assist in providing the best
30achievable protection and collection efforts.

31(3) Developing the capacity of the Oiled Wildlife Care Network
32to recruit and train an adequate field team for collection of live
33oiled wildlife, as specified in paragraph (1), by providing staffing
34for field operations, coordination, and volunteer outreach for the
35Oiled Wildlife Care Network. The duties of the field operations
36and volunteer outreach staff shall include recruitment and
37coordination of additional participation in the Oiled Wildlife Care
38Network by other existing organizations with experience and
39expertise in wildlife rescue and handling, including scientific
40organizations, educational institutions, public agencies, and
P60   1nonprofit organizations dedicated to wildlife conservation, and
2recruitment, training, and supervision of volunteers from Oiled
3Wildlife Care Network participating organizations.

4(4) Ensuring that qualified persons with experience and expertise
5in wildlife rescue are assigned to oversee and supervise wildlife
6recovery search and collection efforts, as specified in the
7administrator’s wildlife response plan. The administrator shall
8provide for and ensure that all persons involved in field collection
9of oiled wildlife receive training in search and capture techniques
10and hazardous materials certification, as appropriate.

11begin insert

begin insertSEC. 32.end insert  

end insert

begin insertSection 8670.37.51 of the end insertbegin insertGovernment Codeend insertbegin insert is
12amended to read:end insert

13

8670.37.51.  

(a) begin deleteNo end deletebegin insertA end inserttank vessel or vessel carrying oil as a
14secondary cargobegin delete mayend deletebegin insert shall notend insert be used to transport oil across
15begin delete marineend delete waters of the state unless thebegin insert owner orend insert operator hasbegin insert applied
16for andend insert
obtained a certificate of financial responsibility issued by
17the administrator for that vessel or for the owner of all of the oil
18contained in and to be transferred to or from that vessel.

19(b) begin deleteNo end deletebegin insertAn end insertoperator of a marine terminal within the statebegin delete mayend delete
20begin insert shall notend insert transfer oil to or from a tank vessel or vessel carrying oil
21as a secondary cargo unless the operator of the marine terminal
22has received a copy of a certificate of financial responsibility issued
23by the administrator for the operator of that vessel or for all of the
24oil contained in and to be transferred to or from that vessel.

25(c) begin deleteNo end deletebegin insertAn end insertoperator of a marine terminal within the statebegin delete mayend delete
26begin insert shall notend insert transfer oil to or from any vessel that is or is intended to
27be used for transporting oil as cargo to or from a second vessel
28unless the operator of the marine terminal has first received a copy
29of a certificate of financial responsibility issued by the
30administrator for the person responsible for both the first and
31second vessels or all of the oil contained in both vessels, as well
32as all the oil to be transferred to or from both vessels.

33(d)  begin deleteNo person operate a marine facility unless the owner or
34operator of the marine facility has first obtained end delete
begin insertAn owner or
35operator of a facility where a spill could impact waters of the state
36shall apply for and obtain end insert
a certificate of financial responsibility
37begin delete fromend deletebegin insert issued byend insert the administrator for thebegin delete marineend delete facilitybegin insert or the oil
38to be handled, stored, or transported by the facilityend insert
.

begin delete

39(e) No tank vessel or vessel carrying oil as a secondary cargo
40may be used to transport oil across marine waters of the state
P61   1unless, at least 24 hours prior to the transport, the administrator
2has received both of the following:

end delete
begin delete

3(1) A copy of a certificate applicable to that vessel or to all of
4the oil in that vessel at all times during transport.

end delete
begin delete

5(2) A copy of a written statement by the holder of the applicable
6certificate authorizing its application to the vessel.

end delete
begin insert

7(e) Pursuant to Section 8670.37.58, nontank vessels shall obtain
8a certificate of financial responsibility.

end insert
9begin insert

begin insertSEC. 33.end insert  

end insert

begin insertSection 8670.37.52 of the end insertbegin insertGovernment Codeend insertbegin insert is
10amended to read:end insert

11

8670.37.52.  

The certificate of financial responsibility shall be
12conclusive evidence that the person or entity holding the certificate
13is the party responsible for the specified vessel,begin delete marineend delete facility, or
14oil for purposes of determining liability pursuant to this chapter.

15begin insert

begin insertSEC. 34.end insert  

end insert

begin insertSection 8670.37.53 of the end insertbegin insertGovernment Codeend insertbegin insert is
16amended to read:end insert

17

8670.37.53.  

(a) To receive a certificate of financial
18responsibility for a tank vessel or for all of the oil contained within
19begin delete such aend deletebegin insert thatend insert vessel, the applicant shall demonstrate to the satisfaction
20of the administrator the financial ability to pay at least one billion
21dollars ($1,000,000,000) for any damages that may arise during
22the term of the certificate.

23(b) The administrator may establish a lower standard of financial
24responsibility for small tank barges, vessels carrying oil as a
25secondary cargo, and small marine fueling facilities. The standard
26shall be based on the quantity of oil that can be carried or stored
27and the risk of spill intobegin delete marineend delete watersbegin insert of the stateend insert. The
28administrator shall not set a standard that is less than the expected
29costs from a reasonable worst case oil spill intobegin delete marineend delete watersbegin insert of
30the stateend insert
.

begin delete

31(c)(1)

end delete

32begin insert(c)end insertbegin insertend insertbegin insert(1)end insertbegin insertend insertTo receive a certificate of financial responsibility for a
33begin delete marineend delete facility, the applicant shall demonstrate to the satisfaction
34of the administrator the financial ability to pay for any damages
35that might arise during a reasonable worst case oil spill intobegin delete marineend delete
36 watersbegin insert of the stateend insert that results from the operations of thebegin delete marineend delete
37 facility. The administrator shall consider criteria including, but
38not necessarily limited to, the amount of oil that could be spilled
39intobegin delete marineend delete watersbegin insert of the stateend insert from the facility, the cost of cleaning
P62   1up spilled oil, the frequency of operations at the facility, and the
2damages that could result from a spill.

begin delete

3(2) The administrator may issue a certificate for a marine facility
4upon a lesser showing of financial resources for a period of not
5longer than three years if the administrator finds all of the
6following:

end delete
begin delete

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

end delete
begin delete

8(B) Continued operation is necessary to finance abandonment
9of the marine facility.

end delete
begin delete

10(C) The financial resources the operator is able to demonstrate
11are reasonably sufficient to cover the damages from foreseeable
12spills from the facility.

end delete
begin insert

13(2) The administrator shall adopt regulations to implement this
14section.

end insert
15begin insert

begin insertSEC. 35.end insert  

end insert

begin insertSection 8670.37.55 of the end insertbegin insertGovernment Codeend insertbegin insert is
16amended to read:end insert

17

8670.37.55.  

(a) An owner or operator of more than one tank
18vessel, vessel carrying oil as a secondary cargo, nontank vessel,
19orbegin delete marineend delete facility shall only be required to obtain one certificate
20of financial responsibility for all of those vessels andbegin delete marineend delete
21 facilities owned or operated.

22(b) If a person holds a certificate for more than one tank vessel,
23vessel carrying oil as a secondary cargo, nontank vessel, orbegin delete marineend delete
24 facility and a spill or spills occurs from one or more of those
25 vessels orbegin delete marineend delete facilities for which the owner or operator may
26be liable for damages in an amount exceeding 5 percent of the
27financial resources reflected by the certificate, as determined by
28the administrator, the certificate shall immediately be considered
29inapplicable to any vessel orbegin delete marineend delete facility not associated with
30the spill. In that event, the owner or operator shall demonstrate to
31the satisfaction of the administrator the amount of financial ability
32required pursuant to this article, as well as the financial ability to
33pay all damages that arise or have arisen from the spill or spills
34begin delete whichend deletebegin insert thatend insert have occurred.

35begin insert

begin insertSEC. 36.end insert  

end insert

begin insertSection 8670.37.58 of the end insertbegin insertGovernment Codeend insertbegin insert is
36amended to read:end insert

37

8670.37.58.  

(a) A nontank vesselbegin delete required to have a
38contingency plan pursuant to this chapterend delete
shall not enterbegin delete marineend delete
39 waters of the state unless the nontank vessel owner or operator has
40provided to the administrator evidence of financial responsibility
P63   1that demonstrates, to the administrator’s satisfaction, the ability
2to pay at least three hundred million dollars ($300,000,000) to
3cover damages caused by a spill, and the owner or operator of the
4nontank vessel has obtained a certificate of financial responsibility
5from the administrator for the nontank vessel.

6(b) Notwithstanding subdivision (a), the administrator may
7establish a lower standard of financial responsibility for a nontank
8vessel that has a carrying capacity of 6,500 barrels of oil or less,
9or for a nontank vessel that is owned and operated by California
10or a federal agency and has a carrying capacity of 7,500 barrels of
11oil or less. The standard shall be based upon the quantity of oil
12that can be carried by the nontank vessel and the risk of an oil spill
13intobegin delete marineend delete watersbegin insert of the stateend insert. The administrator shall not set a
14standard that is less than the expected cleanup costs and damages
15from an oil spill intobegin delete marineend delete watersbegin insert of the stateend insert.

16(c) The administrator may adopt regulations to implement this
17section.

18begin insert

begin insertSEC. 37.end insert  

end insert

begin insertSection 8670.40 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
19to read:end insert

20

8670.40.  

(a) The State Board of Equalization shall collect a
21fee in an amount determined by the administrator to be sufficient
22begin insert to pay the reasonable regulatory costsend insert to carry out the purposes
23set forth in subdivision (e), and a reasonable reserve for
24contingencies. The annual assessment shall not exceed six and
25one-half cents ($0.065) per barrel of crude oil or petroleum
26products. begin delete Beginning January 1, 2015, the annual assessment shall
27not exceed five cents ($0.05) per barrel of crude oil or petroleum
28productsend delete
begin insert The oil spill prevention and administration fee shall be
29based on each barrel of crude oil or petroleum products, as
30described in subdivision (b)end insert
.

31(b) (1) The oil spill prevention and administration fee shall be
32imposed upon a person owning crude oil at the time thatbegin insert theend insert crude
33oil is received at a marine terminalbegin insert, by any mode of delivery that
34passed over, across, under, or through waters of the state,end insert
from
35within or outside the state, and upon a person who owns petroleum
36products at the time that those petroleum products are received at
37a marine terminalbegin insert, by any mode of delivery that passed over, across,
38under, or through waters of the state,end insert
from outside this state. The
39fee shall be collected by the marine terminal operator from the
40owner of the crude oil or petroleum productsbegin delete based onend deletebegin insert forend insert each
P64   1barrel of crude oil or petroleum products begin delete so received by means of
2a vessel operating in, through, or across the marine waters of the
3state. In addition, an operator of a pipeline shall pay the oil spill
4prevention and administration fee for each barrel of crude oil
5originating from a production facility in marine waters and
6 transported in the state by means of a pipeline operating across,
7under, or through the marine waters of the stateend delete
begin insert receivedend insert.begin delete Theend delete

begin insert

8(2) The oil spill prevention and administration fee shall be
9imposed upon a person owning crude oil or petroleum products
10at the time that the crude oil or petroleum products are received
11at a refinery within the state by any mode of delivery that passed
12over, across, under, or through waters of the state, whether from
13within or outside the state. The refinery shall collect the fee from
14the owner of the crude oil or petroleum products for each barrel
15received.

end insert
begin insert

16(3) (A) There is a rebuttable presumption that crude oil or
17petroleum products received at a marine terminal or a refinery
18have passed over, across, under, or through waters of the state.
19This presumption may be overcome by a marine terminal operator,
20refinery operator, or owner of the crude oil or petroleum products
21by showing that the crude oil or petroleum products did not pass
22over, across, under, or through waters of the state. Evidence to
23rebut the presumption may include, but shall not be limited to,
24documentation, including shipping documents, bills of lading,
25highway maps, rail maps, transportation maps, related
26transportation receipts, or another medium that shows the crude
27oil or petroleum products did not pass over, across, under, or
28through waters of the state.

end insert
begin insert

29(B) Notwithstanding the petition for redetermination and claim
30for refund provisions of the Oil Spill Response, Prevention, and
31Administration Fees Law (Part 24 (commencing with Section
3246001) of Division 2 of the Revenue and Taxation Code), the State
33Board of Equalization shall not do either of the following:

end insert
begin insert

34(i) Accept or consider a petition for redetermination of fees
35determined pursuant to this section if the petition is founded upon
36the grounds that the crude oil or petroleum products did or did
37not pass over, across, under, or through waters of the state.

end insert
begin insert

38(ii) Accept or consider a claim for a refund of fees paid pursuant
39to this section if the claim is founded upon the grounds that the
P65   1crude oil or petroleum products did or did not pass over, across,
2under, or through waters of the state.

end insert
begin insert

3(C) The State Board of Equalization shall forward to the
4administrator an appeal of a redetermination or a claim for a
5refund of fees that is based on the grounds that the crude oil or
6petroleum products did or did not pass over, across, under, or
7through waters of the state.

end insert

8begin insert(4)end insertbegin insertend insertbegin insertTheend insert fees shall be remitted to thebegin delete boardend deletebegin insert State Board of
9Equalizationend insert
by thebegin insert owner of the crude oil or petroleum products,
10the refinery operator, or the marineend insert
terminalbegin delete or pipelineend delete operator
11on the 25th day of the month based upon the number of barrels of
12crude oil or petroleum products received at abegin insert refinery orend insert marine
13terminalbegin delete or transported by pipelineend delete during the preceding month.
14A fee shall not be imposed pursuant to this section with respect to
15crude oil or petroleum products if the person who would be liable
16for that fee, or responsible for its collection, establishes that the
17fee hasbegin insert alreadyend insert been collected by abegin insert refinery or marineend insert terminal
18operator registered under this chapter or paid to thebegin delete boardend deletebegin insert State
19Board of Equalizationend insert
with respect to the crude oil or petroleum
20product.

begin insert

21(5) The oil spill prevention and administration fee shall not be
22collected by a marine terminal operator or refinery operator or
23imposed on the owner of crude oil or petroleum products if the fee
24has been previously collected or paid on the crude oil or petroleum
25products at another marine terminal or refinery. It shall be the
26 obligation of the marine terminal operator, refinery operator, or
27owner of crude oil or petroleum products to demonstrate that the
28fee has already been paid on the same crude oil or petroleum
29products.

end insert
begin delete

30(2)

end delete

31begin insert(6)end insert An owner of crude oil or petroleum products is liable for
32the fee until it has been paid to thebegin delete boardend deletebegin insert State Board of
33Equalizationend insert
, except that payment to abegin insert refinery operator orend insert marine
34terminal operator registered under this chapter is sufficient to
35relieve the owner from further liability for the fee.

begin delete

36(3)

end delete

37begin insert(7)end insert On or before January 20, the administrator shall annually
38prepare a plan that projects revenues and expenses over three fiscal
39years, including the current year. Based on the plan, the
40administrator shall set the fee so that projected revenues, including
P66   1any interestbegin insert and inflationend insert, are equivalent to expenses as reflected
2in the current Budget Act and in the proposed budget submitted
3by the Governor. In setting the fee, the administrator may allow
4for a surplus if the administrator finds that revenues will be
5exhausted during the period covered by the plan or that the surplus
6is necessary to cover possible contingencies. The administrator
7shall notify thebegin delete boardend deletebegin insert State Board of Equalizationend insert of the adjusted
8fee rate, which shall be rounded to no more than four decimal
9places, to be effective the first day of the month beginning not less
10than 30 days from the date of the notification.

11(c) The moneys collected pursuant to subdivision (a) shall be
12deposited into the fund.

13(d) Thebegin delete boardend deletebegin insert State Board of Equalizationend insert shall collect the fee
14and adopt regulations for implementing the fee collection program.

15(e) The fee described in this section shall be collected solely
16for all of the following purposes:

17(1) To implement oil spill prevention programs through rules,
18regulations, leasing policies, guidelines, and inspections and to
19implement research into prevention and control technology.

20(2) To carry out studies that may lead to improved oil spill
21prevention and response.

22(3) To finance environmental and economic studies relating to
23the effects of oil spills.

24(4) To implement, install, and maintain emergency programs,
25equipment, and facilities to respond to, contain, and clean up oil
26spills and to ensure that those operations will be carried out as
27intended.

begin delete

28(5) To respond to an imminent threat of a spill in accordance
29with the provisions of Section 8670.62 pertaining to threatened
30discharges. The cumulative amount of an expenditure for this
31purpose shall not exceed the amount of one hundred thousand
32dollars ($100,000) in a fiscal year unless the administrator receives
33the approval of the Director of Finance and notification is given
34to the Joint Legislative Budget Committee. Commencing with the
351993-94 fiscal year, and each fiscal year thereafter, it is the intent
36of the Legislature that the annual Budget Act contain an
37appropriation of one hundred thousand dollars ($100,000) from
38the fund for the purpose of allowing the administrator to respond
39to threatened oil spills.

end delete
begin delete

40(6)

end delete

P67   1begin insert(5)end insert To reimburse thebegin delete boardend deletebegin insert State Board of Equalizationend insert forbegin insert its
2reasonableend insert
costs incurred to implement this chapter and to carry
3out Part 24 (commencing with Section 46001) of Division 2 of the
4Revenue and Taxation Code.

begin delete

5(7)

end delete

6begin insert(6)end insert Tobegin delete cover costs incurred byend deletebegin insert fundend insert the Oiled Wildlife Care
7Networkbegin delete established by Section 8670.37.5 for training and field
8collection, and search and rescue activities, pursuant to subdivision
9(g) of Section 8670.37.5end delete
begin insert pursuant to Section 8670.40.5end insert.

10(f) The moneys deposited in the fund shall not be used for
11responding tobegin delete an oilend deletebegin insert aend insert spill.

12(g) The moneys deposited in the fund shall not be used to
13provide a loan to any other fund.

begin delete

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

end delete
begin insert

15(h) Every person who operates a refinery, a marine terminal in
16waters of the state, or a pipeline shall register with the State Board
17of Equalization, pursuant to Section 46101 of the Revenue and
18Taxation Code.

end insert
begin insert

19(i) The amendments to this section enacted in Assembly Bill
201466 of the 2013-14 Regular Session shall become operative 90
21days after the effective date of Assembly Bill 1466 of the 2013-14
22Regular Session.

end insert
23begin insert

begin insertSEC. 38.end insert  

end insert

begin insertSection 8670.40.5 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
24to read:end insert

begin insert
25

begin insert8670.40.5.end insert  

(a) For each fiscal year, consistent with this article,
26the administrator shall submit, as a proposed appropriation in the
27Governor’s Budget, an amount up to two million five hundred
28thousand dollars ($2,500,000) for the purpose of equipping,
29operating, and maintaining the network of oiled wildlife rescue
30and rehabilitation stations and proactive oiled wildlife search and
31collection rescue efforts established pursuant to Section 8670.37.5
32and for the support of technology development and research related
33to oiled wildlife care.

34(b) The administrator shall report to the Legislature, upon
35request, on the progress and effectiveness of the network of oiled
36wildlife rescue and rehabilitation stations established pursuant to
37Section 8670.37.5 and the adequacy of the Oil Spill Prevention
38and Administration Fund to meet the purposes for which the
39network was established.

P68   1(c) At the administrator’s request, any funds made available
2for purposes of this section may be directly appropriated to a
3suitable program for wildlife health and rehabilitation within a
4school of veterinary medicine within this state, if an agreement
5exists, consistent with this chapter, between the administrator and
6an appropriate representative of the program for carrying out that
7purpose. The administrator shall attempt to have an agreement in
8place at all times. The agreement shall ensure that the training of,
9and the care provided by, the program staff are at levels that are
10consistent with those standards generally accepted within the
11veterinary profession.

12(d) Any funds made available for purposes of this section shall
13not be considered an offset to any other state funds appropriated
14to the program, the program’s associated school of veterinary
15medicine, or the program’s associated college or university. The
16funds shall not be used for any other purpose. If an offset does
17occur or the funds are used for an unintended purpose, the
18administrator may terminate expenditure of any funds appropriated
19for purposes of this section and the administrator may request a
20reappropriation to accomplish the intended purpose. The
21administrator shall annually review and approve the proposed
22uses of any funds made available for purposes of this section.

end insert
23begin insert

begin insertSEC. 39.end insert  

end insert

begin insertSection 8670.42 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
24to read:end insert

25

8670.42.  

(a) Thebegin delete Department of Fish and Gameend deletebegin insert administratorend insert
26 and the State Lands Commission, independently, shall contract
27with the Department of Finance for the preparation of a detailed
28report that shall be submitted on or before January 1, 2013, and
29no less than once every four years thereafter, to the Governor and
30the Legislature on the financial basis and programmatic
31effectiveness of the state’s oil spill prevention, response, and
32preparedness program. This report shall include an analysis of all
33of the oil spill prevention, response, and preparedness program’s
34major expenditures, fees and fines collected, staffing and equipment
35levels, spills responded to, and other relevant issues. The report
36shall recommend measures to improve the efficiency and
37effectiveness of the state’s oil spill prevention, response, and
38preparedness program, including, but not limited to, measures to
39modify existing contingency plan requirements, to improve
40protection ofbegin insert environmentallyend insert sensitivebegin delete shorelineend delete sites, and to
P69   1ensure adequate and equitable funding for the state’s oil spill
2prevention, response, and preparedness program.

3(b) A report to be submitted pursuant to subdivision (a) shall
4be submitted in compliance with Section 9795.

5begin insert

begin insertSEC. 40.end insert  

end insert

begin insertSection 8670.47.5 of the end insertbegin insertGovernment Codeend insertbegin insert is
6amended to read:end insert

7

8670.47.5.  

The following shall be deposited into the fund:

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

9(b) Any federal funds received to pay for response, containment,
10abatement, and rehabilitation costs from an oil spill inbegin delete marineend delete
11 watersbegin insert of the stateend insert.

12(c) Any money borrowed by the Treasurer pursuant to Article
137.5 (commencing with Section 8670.53.1) or any draw on the
14financial security obtained by the Treasurer pursuant to subdivision
15(o) of Section 8670.48.

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

17(e) Any costs recovered from responsible parties pursuant to
18Section 8670.53 and subdivision (e) of Section 8670.53.1.

19begin insert

begin insertSEC. 41.end insert  

end insert

begin insertSection 8670.48 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
20to read:end insert

21

8670.48.  

(a) (1) A uniform oil spill response fee in an amount
22not exceeding twenty-five cents ($0.25) for each barrel of
23petroleum products, as set by the administrator pursuant to
24subdivision (f), shall be imposed upon a person who owns
25petroleum products at the time the petroleum products are received
26at a marine terminal within this state by means of a vessel from a
27point of origin outside this state. The fee shall bebegin insert collected by the
28marine terminal andend insert
remitted to the State Board of Equalization
29by the terminal operator on the 25th day of each month based upon
30the number of barrels of petroleum products received during the
31preceding month.

32(2) An owner of petroleum products is liable for the fee until it
33has been paid to the state, except that payment to a marine terminal
34operator registered under this chapter is sufficient to relieve the
35owner from further liability for the fee.

36(b) An operator of a pipeline shall also pay a uniform oil spill
37response fee in an amount not exceeding twenty-five cents ($0.25)
38for each barrel of petroleum products, as set by the administrator
39pursuant to subdivision (f), transported into the state by means of
40a pipeline operating across, under, or through thebegin delete marineend delete waters
P70   1of the state. The fee shall be paid on the 25th day of each month
2based upon the number of barrels of petroleum products so
3transported into the state during the preceding month.

4(c) begin delete(1)end deletebegin deleteend deleteAn operator of a refinery shall pay a uniform oil spill
5response fee in an amount not exceeding twenty-five cents ($0.25)
6for each barrel of crude oil, as set by the administrator pursuant
7to subdivision (f), received at a refinery within the statebegin insert by any
8method of transportend insert
. The fee shall be paid on the 25th day of each
9month based upon the number of barrels of crude oil so received
10during the preceding month.

begin delete

11(2) The fee shall not be imposed by a refiner, or a person or
12entity acting as an agent for a refiner, on crude oil produced by an
13independent crude oil producer as defined in paragraph (3). The
14board shall not identify a company as exempt from the fee
15requirements of this section if that company was reorganized, sold,
16or otherwise modified with the intent of circumventing the
17requirements of this section.

end delete
begin delete

18(3) For purposes of this chapter, “independent crude oil
19producer” means a person or entity producing crude oil within this
20state who does not refine crude oil into a product, and who does
21not possess or own a retail gasoline marketing facility.

end delete

22(d) A marine terminal operator shall pay a uniform oil spill
23response fee in an amount not exceeding twenty-five cents ($0.25),
24in accordance with subdivision (g), for each barrel of crude oil, as
25set by the administrator pursuant to subdivision (f), that is
26transported from within this state by means of abegin delete marineend delete vessel to
27a destination outside this state.

28(e) An operator of a pipeline shall pay a uniform oil spill
29response fee in an amount not exceeding twenty-five cents ($0.25),
30in accordance with subdivision (g), for each barrel of crude oil, as
31set by the administrator pursuant to subdivision (f), transported
32out of the state by pipeline.

33(f) (1) The fees required pursuant to this section shall be
34collected during any period for which the administrator determines
35that collection is necessary for any of the following reasons:

36(A) The amount in the fund is less than or equal to 95 percent
37of the designated amount specified in subdivision (a) of Section
3846012 of the Revenue and Taxation Code.

39(B) Additional money is required to pay for the purposes
40specified in subdivision (k).

P71   1(C) The revenue is necessary to repay a draw on a financial
2security obtained by the Treasurer pursuant to subdivision (o) or
3borrowing by the Treasurer pursuant to Article 7.5 (commencing
4with Sectionbegin delete 8670.53.1)end deletebegin insert 8670.53.1),end insert including any principal,
5interest, premium, fees, charges, or costs of any kind incurred in
6connection with those borrowings or financial security.

7(2) The administrator, in consultation with the State Board of
8Equalization, and with the approval of the Treasurer, may direct
9the State Board of Equalization to cease collecting the fee when
10the administrator determines that further collection of the fee is
11not necessary for the purposes specified in paragraph (1).

12(3) The administrator, in consultation with the State Board of
13Equalization, shall set the amount of the oil spill response fees.
14The oil spill response fees shall be imposed on all feepayers in the
15same amount. The administrator shall not set the amount of the
16fee at less than twenty-five cents ($0.25) for each barrel of
17petroleum products or crude oil, unless the administrator finds that
18the assessment of a lesser fee will cause the fund to reach the
19designated amount specified in subdivision (a) of Section 46012
20of the Revenue and Taxation Code within four months. The fee
21shall not be less than twenty-five cents ($0.25) for each barrel of
22petroleum products or crude oil if the administrator has drawn
23upon the financial security obtained by the Treasurer pursuant to
24subdivision (o) or if the Treasurer has borrowed money pursuant
25to Article 7.5 (commencing with Section 8670.53.1) and principal,
26interest, premium, fees, charges, or costs of any kind incurred in
27connection with those borrowings remain outstanding or unpaid,
28unless the Treasurer has certified to the administrator that the
29money in the fund is not necessary for the purposes specified in
30paragraph (1).

31(g) The fees imposed by subdivisions (d) and (e) shall be
32imposed in any calendar year beginning the month following the
33month when the total cumulative year-to-date barrels of crude oil
34transported outside the state by all feepayers by means of vessel
35or pipeline exceed 6 percent by volume of the total barrels of crude
36oil and petroleum products subject to oil spill response fees under
37subdivisions (a), (b), and (c) for the prior calendar year.

38(h) For purposes of this chapter, “designated amount” means
39the amounts specified in Section 46012 of the Revenue and
40Taxation Code.

P72   1(i) The administrator, in consultation with the State Board of
2Equalization and with the approval of the Treasurer, shall authorize
3refunds of any money collected that is not necessary for the
4purposes specified in paragraph (1) of subdivision (f). The State
5Board of Equalization, as directed by the administrator, and in
6accordance with Section 46653 of the Revenue and Taxation Code,
7shall refund the excess amount of fees collected to each feepayer
8who paid the fee to the state, in proportion to the amount that each
9feepayer paid into the fund during the preceding 12 monthly
10reporting periods in which there was a fee due, including the month
11in which the fund exceeded the specified amount. If the total
12amount of money in the fund exceeds the amount specified in this
13subdivision by 10 percent or less, refunds need not be ordered by
14the administrator. This section does not require the refund of excess
15fees as provided in this subdivision more frequently than once
16each year.

17(j) The State Board of Equalization shall collect the fee and
18adopt regulations implementing the fee collection program. All
19fees collected pursuant to this section shall be deposited in the Oil
20Spill Response Trust Fund.

21(k) The fee described in this section shall be collected solely
22for any of the following purposes:

23(1) To provide funds to cover promptly the costs of response,
24containment, and cleanup of oil spills intobegin delete marineend delete watersbegin insert of the
25stateend insert
, including damage assessmentbegin delete costs,end deletebegin insert costsend insert and wildlife
26rehabilitation as provided in Section 8670.61.5.

27(2) To cover response and cleanup costs and other damages
28suffered by the state or other persons or entities from oil spills into
29begin delete marineend delete watersbegin delete, whichend deletebegin insert of the state thatend insert cannot otherwise be
30compensated by responsible parties or the federal government.

31(3) To pay claims for damages pursuant to Section 8670.51.

32(4) To pay claims for damages, except for damages described
33in paragraph (7) of subdivision (h) of Section 8670.56.5, pursuant
34to Section 8670.51.1.

35(5) To pay for the cost of obtaining financial security in the
36amount specified in subdivision (b) of Section 46012 of the
37Revenue and Taxation Code, as authorized by subdivision (o).

38(6) To pay indemnity and related costs and expenses as
39authorized by Section 8670.56.6.

P73   1(7) To pay principal, interest, premium, if any, and fees, charges,
2and costs of any kind incurred in connection with moneys drawn
3by the administrator on the financial security obtained by the
4Treasurer pursuant to subdivision (o) or borrowed by the Treasurer
5pursuant to Article 7.5 (commencing with Section 8670.53.1).

begin delete

6(8) To pay for the costs of rescue, medical treatment,
7rehabilitation, and disposition of oiled wildlife, as incurred by the
8network of oiled wildlife rescue and rehabilitation stations created
9pursuant to Section 8670.37.5.

end delete
begin insert

10(8)  [Reserved]

end insert
begin insert

11(9) To respond to an imminent threat of a spill in accordance
12with the provisions of Section 8670.62 pertaining to threatened
13discharges.

end insert

14(l) begin delete(1)end deletebegin deleteend deleteThe interest that the state earns on the funds deposited
15into the Oil Spill Response Trust Fund shall be deposited in the
16fund and shall be used to maintain the fund at the designated
17amount specified in subdivision (a) of Section 46012 of the
18Revenue and Taxation Code.begin delete Interest earned until July 1, 1998,
19on funds deposited pursuant to subdivision (a) of Section 46012
20of the Revenue and Taxation Code, as determined jointly by the
21Controller and the Director of Finance, shall be available upon
22appropriation by the Legislature in the Budget Act to establish,
23equip, operate, and maintain the network of rescue and
24rehabilitation stations for oiled wildlife as described in Section
258670.37.5 and to support technology development and research
26related to oiled wildlife care. Interest earned on the financial
27security portion of the fund, required to be accessible pursuant to
28subdivision (b) of Section 46012 of the Revenue and Taxation
29Code shall not be available for that purpose.end delete
If the amount in the
30fund exceeds that designated amount, the interestbegin delete not needed to
31equip, operate, and maintain the network of rescue and
32rehabilitation stations, or for appropriate technology development
33and research regarding oiled wildlife care,end delete
shall be deposited into
34the Oil Spill Prevention and Administration Fund, and shall be
35available for the purposes authorized by Article 6 (commencing
36with Section 8670.38).

begin delete

37(2) (A) For each fiscal year, consistent with this article, the
38administrator shall submit, as a proposed appropriation in the
39Governor’s Budget, an amount up to two million dollars
40($2,000,000) of the interest earned on the funds deposited into the
P74   1Oil Spill Response Trust Fund for the purpose of equipping,
2operating, and maintaining the network of oiled wildlife rescue
3and rehabilitation stations and proactive oiled wildlife search and
4collection rescue efforts established pursuant to Section 8670.37.5
5and for support of technology development and research related
6to oiled wildlife care. The remaining interest, if any, shall be
7deposited into the Oil Spill Prevention and Administration Fund
8pursuant to paragraph (1).

end delete
begin delete

9(B) The administrator shall report to the Legislature not later
10than June 30, 2002, on the progress and effectiveness of the
11network of oiled wildlife rescue and rehabilitation stations
12established pursuant to Section 8670.37.5, and the adequacy of
13the Oil Spill Response Trust Fund to meet the purposes for which
14it was established.

end delete
begin delete

15(C) At the administrator’s request, the funds made available
16pursuant to this paragraph may be directly appropriated to a suitable
17program for wildlife health and rehabilitation within a school of
18veterinary medicine within this state, provided that an agreement
19exists, consistent with this chapter, between the administrator and
20an appropriate representative of the program for carrying out that
21purpose. The administrator shall attempt to have an agreement in
22place at all times. The agreement shall ensure that the training of,
23and the care provided by, the program staff are at levels that are
24consistent with those standards generally accepted within the
25veterinary profession.

end delete
begin delete

26(D) The funds made available pursuant to this paragraph shall
27not be considered an offset to any other state funds appropriated
28to the program, the program’s associated school of veterinary
29medicine, or the program’s associated college or university, and
30the funds shall not be used for any other purpose. If an offset does
31occur or the funds are used for an unintended purpose, expenditure
32of any appropriation of funds pursuant to this paragraph may be
33terminated by the administrator and the administrator may request
34a reappropriation to accomplish the intended purpose. The
35administrator shall annually review and approve the proposed uses
36of any funds made available pursuant to this paragraph.

end delete

37(m) The Legislature finds and declares that effective response
38to oil spills requires that the state have available sufficient funds
39in a response fund. The Legislature further finds and declares that
40maintenance of that fund is of utmost importance to the state and
P75   1that the money in the fund shall be used solely for the purposes
2specified in subdivision (k).

begin delete

3(n) It is the intent of the Legislature, in enacting this section,
4that the fee shall not be imposed by a refiner, or a person or entity
5acting as an agent for a refiner, on crude oil produced by an
6independent crude oil producer.

end delete
begin insert

7(n)  [Reserved]

end insert

8(o) The Treasurer shall obtain financial security, in the
9designated amount specified in subdivision (b) of Section 46012
10of the Revenue and Taxation Code, in a formbegin delete whichend deletebegin insert thatend insert, in the
11event of an oil spill, may be drawn upon immediately by the
12administrator upon making the determinations required by
13paragraph (2) of subdivision (a) of Section 8670.49. The financial
14security may be obtained in any of the forms described in
15subdivision (b) of Section 8670.53.3, as determined by the
16Treasurer.

17(p) This section does not limit the authority of the administrator
18to raise oil spill response fees pursuant to Section 8670.48.5.

19begin insert

begin insertSEC. 42.end insert  

end insert

begin insertSection 8670.48.3 of the end insertbegin insertGovernment Codeend insertbegin insert is
20amended to read:end insert

21

8670.48.3.  

(a) Notwithstanding subparagraph (A) of paragraph
22(1) of subdivision (f) of Section 8670.48, a loan or other transfer
23of money from the fund to the General Fund pursuant to the Budget
24Act that reduces the balance of the Oil Spill Response Trust Fund
25to less than or equal to 95 percent of the designated amount
26specified in subdivision (a) of Section 46012 of the Revenue and
27Taxation Code shall not obligate the administrator to resume
28collection of the oil spill response fee otherwise required by this
29article if both of the following conditions are met:

30(1) The annual Budget Act requires a transfer or loan from the
31fund to be repaid to the fund with interest calculated at a rate earned
32by the Pooled Money Investment Account as if the money had
33remained in the fund.

34(2) The annual Budget Act requires all transfers or loans to be
35repaid to the fund on or before June 30,begin delete 2014end deletebegin insert 2017end insert.

36(b) A transfer or loan described in subdivision (a) shall be repaid
37as soon as possible if a spill occurs and the administrator
38determines that response funds are needed immediately.

39(c) If there is a conflict between this section and any other law
40or enactment, this section shall control.

begin delete

P76   1(d) This section shall remain in effect until July 1, 2014, and as
2of that date is repealed.

end delete
begin insert

3(d) This section shall become inoperative on July 1, 2017, and,
4as of January 1, 2018, is repealed, unless a later enacted statute,
5that becomes operative on or before January 1, 2018, deletes or
6extends the dates on which it becomes inoperative and is repealed.

end insert
7begin insert

begin insertSEC. 43.end insert  

end insert

begin insertSection 8670.49 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
8to read:end insert

9

8670.49.  

(a) (1) The administrator may only expend money
10from the fund to pay for any of the following, subject to the lien
11established in Section 8670.53.2:

12(A) To pay the cost of obtaining financial security as authorized
13by paragraph (5) of subdivision (k) and subdivision (o) of Section
148670.48.

15(B) To pay the principal, interest, premium, if any, and fees,
16charges, and costs of any kind incurred in connection with moneys
17drawn by the administrator on the financial security obtained by
18the Treasurer, or the moneys borrowed by the Treasurer, as
19authorized by paragraph (7) of subdivision (k) of Section 8670.48.

begin delete

20(C) To pay for the construction, equipping, operation, and
21maintenance of rescue and rehabilitation facilities, and technology
22development for oiled wildlife care from interest earned on money
23deposited in the fund as authorized by subdivision (l) of Section
248670.48.

25(D) To pay for the costs of rescue, medical treatment,
26rehabilitation, and disposition of oiled wildlife, as incurred by the
27network of oiled wildlife rescue and rehabilitation stations pursuant
28to subdivision (f) of Section 8670.37.5.

29(E)

end delete

30begin insert(C)end insert To pay for the expansion, in the VTS area, pursuant to
31Section 445 of the Harbors and Navigation Code, of the vessel
32traffic service system (VTS system) authorized pursuant to
33subdivision (f) of Section 8670.21.

34(2) If a spill has occurred, the administrator may expend the
35money in the fund for the purposes identified in paragraphs (1),
36(2), (3), (4), and (6) of subdivision (k) of Section 8670.48 only
37upon making the following determinations:

38(A) Except as authorized by Section 8670.51.1, a responsible
39party does not exist or the responsible party is unable or unwilling
40to provide adequate and timely cleanup and to pay for the damages
P77   1resulting from the spill. The administrator shall make a reasonable
2effort to have the party responsible remove the oil or agree to pay
3for any actions resulting from the spill that may be required by
4law, provided that the efforts are not detrimental to fish, plant,
5animal, or bird life in the affected waters. The reasonable effort
6of the administrator shall include attempting to access the
7responsible parties’ insurance or other proof of financial
8 responsibility.

9(B) Sufficient federal oil spill funds are not available or will
10not be available in an adequate period of time.

11(3) Notwithstanding any other provision of this subdivision, the
12administrator may expend money from the fund for authorized
13expenditures when a reimbursement procedure is in place to receive
14reimbursements for those expenditures from federal oil spill funds.

15(b) Upon making the determinations specified in paragraph (2)
16of subdivision (a), the administrator shall immediately make
17whatever payments are necessary for responding to, containing,
18or cleaningbegin delete up,end deletebegin insert upend insert the spill, including any wildlife rehabilitation
19required by law and payment of claims pursuant to Sections
208670.51 and 8670.51.1, subject to the lien established by Section
218670.53.2.

22begin insert

begin insertSEC. 44.end insert  

end insert

begin insertSection 8670.50 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
23to read:end insert

24

8670.50.  

(a) Money from the fund may only be expended to
25cover the costs incurred by the state and local governments and
26agencies for any of the following:

27(1) Responding promptly to, containing, and cleaning up the
28discharge, if those efforts are any of the following:

29(A) Undertaken pursuant to the state and local oil spill
30contingency plans established under this chapter, and thebegin delete marine
31response element of theend delete
California oil spill contingency plan
32established under Article 3.5 (commencing with Section 8574.1)
33of Chapter 7.

34(B) Undertaken consistent with the standardized emergency
35management system established pursuant to Section 8607.

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

37(2) Meeting the requirements of Sectionbegin delete 8670.61.5,end deletebegin insert 8670.61.5end insert
38 relating to wildlife rehabilitation.

39(3) Making the payments authorized by subdivision (k) of
40Section 8670.48.

P78   1(b) In the event of an oil spill, the administrator shall make
2whatever expenditures are necessary and appropriate from the fund
3to cover the costs described in subdivision (a), subject to the lien
4established pursuant to Section 8670.53.2.

5begin insert

begin insertSEC. 45.end insert  

end insert

begin insertSection 8670.51 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
6to read:end insert

7

8670.51.  

(a) When a person has obtained a final judgment for
8damages resulting from an oil spill inbegin delete marineend delete watersbegin insert of the stateend insert,
9but is unable, within one year after the date of its entry, to enforce
10the judgment pursuant to Title 9 (commencing with Section
11680.010) of the Code of Civil Procedure, or is unable to obtain
12satisfaction of the judgment from the federal government within
1390 additional days, the administrator shall pay an amount not to
14exceed those amountsbegin delete whichend deletebegin insert thatend insert cannot be recovered from a
15responsible party and the fund shall be subrogated to all rights,
16claims, and causes of action that the claimant has under this
17chapter, Article 3. 5 (commencing with Section 8574.1) of Chapter
187, Section 8670.61.5, and Division 7.8 (commencing with Section
198750) of the Public Resources Code.

20(b) Any person may apply to the fund for compensation for
21damages and losses suffered as a result of an oil spill inbegin delete marineend delete
22 watersbegin insert of the stateend insert under any of the following conditions:

23(1) The responsible party or parties cannot be ascertained.

24(2) A responsible party is not liable for noneconomic damages
25caused by another.

26(3) Subdivision (i) of Section 8670.56.6 is applicable to the
27claim.

28(c) The administrator shall not approve any claim in an amount
29begin delete whichend deletebegin insert thatend insert exceeds the amount to which the person would
30otherwise be entitled pursuant to Section 8670.56.5, and shall pay
31claims from the fundbegin delete whichend deletebegin insert thatend insert are approved pursuant to this
32section.

33begin insert

begin insertSEC. 46.end insert  

end insert

begin insertSection 8670.53 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
34to read:end insert

35

8670.53.  

The Attorney General, in consultation with the
36administrator, shall undertake actions to recover all costs to the
37funds from any responsible party for an oil spill intobegin delete marineend delete waters
38begin insert of the stateend insert for which expenditures are made from the fund. The
39recovery of costs pursuant to this section shall not foreclose the
40Attorney General from any other actions allowed by law.

P79   1begin insert

begin insertSEC. 47.end insert  

end insert

begin insertSection 8670.54 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
2to read:end insert

3

8670.54.  

(a) The Oil Spill Technical Advisory Committee,
4hereafter in thisbegin delete articleend deletebegin insert article,end insert the committee, is hereby established
5to provide public input and independent judgment of the actions
6of the administrator. The committee shall consist ofbegin delete 10end deletebegin insert 14end insert
7 members, of whombegin delete sixend deletebegin insert eightend insert shall be appointed by the Governor,
8begin delete twoend deletebegin insert threeend insert by the Speaker of the Assembly, andbegin delete twoend deletebegin insert threeend insert by the
9Senate Rules Committee. The appointments shall be made in the
10following manner:

11(1) The Speaker of thebegin delete Assembly,end deletebegin insert Assemblyend insert and Senatebegin delete Rulesend delete
12 Committeebegin insert on Rulesend insert shall each appointbegin delete membersend deletebegin insert a memberend insert who
13shall bebegin delete representativesend deletebegin insert a representativeend insert of the public.

14(2) The Governor shall appoint a member who has a
15demonstrable knowledge of marine transportation.

16(3) The Speaker of the Assembly and the Senatebegin delete Rulesend delete
17 Committeebegin insert on Rulesend insert shall each appointbegin delete a memberend deletebegin insert two membersend insert
18 whobegin delete hasend deletebegin insert haveend insert demonstrable knowledge of environmental protection
19and the study of ecosystems.

20(4) The Governor shall appoint a member who has served as a
21local government elected official or who has worked for a local
22government.

23(5) The Governor shall appoint a member who has experience
24in oil spill response and prevention programs.

25(6) The Governor shall appoint a member who has been
26employed in the petroleum industry.

27(7) The Governor shall appoint a member who has worked in
28state government.

29(8) The Governor shall appoint a member who has demonstrable
30knowledge of the dry cargo vessel industry.

begin insert

31(9) The Governor shall appoint a member who has demonstrable
32knowledge of the railroad industry.

end insert
begin insert

33(10) The Governor shall appoint a member who has
34demonstrable knowledge of the oil production industry.

end insert

35(b) The committee shall meet as often as required, but at least
36twice per year. Members shall be paid one hundred dollars ($100)
37per day for each meeting and all necessary travel expenses at state
38per diem rates.

39(c) The administrator and any personnel the administrator
40determines to be appropriate shall serve as staff to the committee.

P80   1(d) Abegin delete chairmanend deletebegin insert chairend insert and vicebegin delete chairmanend deletebegin insert chairend insert shall be elected
2by a majority vote of the committee.

begin delete

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

end delete
4begin insert

begin insertSEC. 48.end insert  

end insert

begin insertSection 8670.55 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
5to read:end insert

6

8670.55.  

(a) The committee shall provide recommendations
7to the administrator, the State Lands Commission, the California
8Coastal Commission,begin delete andend delete the San Francisco Bay Conservation
9and Development Commissionbegin insert, the Division of Oil, Gas, and
10Geothermal Resources, the Office of the State Fire Marshal, and
11the Public Utilities Commission,end insert
on any provision of thisbegin delete chapterend delete
12begin insert chapter,end insert including the promulgation of all rules, regulations,
13guidelines, and policies.

14(b) The committee maybegin delete, at its own discretion,end delete study, comment
15on, or evaluate,begin insert at its own discretion,end insert any aspect of oil spill
16prevention and response in the state. To the greatest extent possible,
17these studies shall be coordinated with studies being done by the
18federal government, the administrator, the State Lands
19Commission, the State Water Resources Control Board, and other
20appropriate state and international entities. Duplication with the
21efforts of other entities shall be minimized.

22(c) The committee may attend any drills called pursuant to
23Sectionbegin delete 8601.10end deletebegin insert 8670.10end insert or any oil spills, if practicable.

24(d) The committee shall report biennially to the Governor and
25the Legislature on its evaluation of oil spill response and
26preparedness programs within the state and may prepare and send
27any additional reports it determines to be appropriate to the
28Governor and the Legislature.

begin delete

29(e) On or before August 1, 2005, the committee shall review
30the Department of Finance report required under Section 8670.42
31and prepare and submit to the Governor and the Legislature
32comments on the report, including, but not limited to,
33recommendations for improving the state’s oil spill prevention,
34response, and preparedness program.

end delete
begin delete

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

end delete
36begin insert

begin insertSEC. 49.end insert  

end insert

begin insertSection 8670.56.5 of the end insertbegin insertGovernment Codeend insertbegin insert is
37amended to read:end insert

38

8670.56.5.  

(a)  A responsible party, as defined in Section
398670.3, shall be absolutely liable without regard to fault for any
P81   1damages incurred by any injured party that arise out of, or are
2caused by abegin delete spill or inlandend delete spill.

3(b) A responsible person is not liable to an injured party under
4this section for any of the following:

5(1) Damages, other than costs of removal incurred by the state
6or a local government, caused solely by any act of war, hostilities,
7civil war, or insurrection or by an unanticipated grave natural
8disaster or other act of God of an exceptional, inevitable, and
9 irresistible character,begin delete whichend deletebegin insert thatend insert could not have been prevented
10or avoided by the exercise of due care or foresight.

11(2) Damages caused solely by the negligence or intentional
12malfeasance of that injured party.

13(3) Damages caused solely by the criminal act of a third party
14other than the defendant or an agent or employee of the defendant.

15(4) Natural seepage not caused by a responsible party.

16(5) Discharge or leaking of oil or natural gas from a private
17pleasure boat or vessel.

18(6) Damages that arise out of, or are caused by, a discharge that
19is authorized by a state or federal permit.

20(c) The defenses provided in subdivision (b) shall not be
21available to a responsible person who fails to comply with Sections
228670.25, 8670.25.5, 8670.27, and 8670.62.

23(d) Upon motion and sufficient showing by a party deemed to
24be responsible under this section, the court shall join to the action
25any other party who may be responsible under this section.

26(e) In determining whether a party is a responsible party under
27this section, the court shall consider the results of chemical or other
28scientific tests conducted to determine whether oil or other
29substances produced, discharged, or controlled by the defendant
30matches the oil or other substance that caused the damage to the
31injured party. The defendant shall have the burden of producing
32the results of tests of samples of the substance that caused the
33injury and of substances for which the defendant is responsible,
34unless it is not possible to conduct the tests because of
35unavailability of samples to test or because the substance is not
36one for which reliable tests have been developed. At the request
37of a party, any other party shall provide samples of oil or other
38substances within its possession or control for testing.

39(f) The court may award reasonable costs of the suit, attorneys’
40fees, and the costs of necessary expert witnesses to a prevailing
P82   1plaintiff. The court may award reasonable costs of the suit and
2attorneys’ fees to a prevailing defendant if the court finds that the
3plaintiff commenced or prosecuted the suitbegin delete underend deletebegin insert pursuant toend insert this
4section in bad faith or solely for purposes of harassing the
5defendant.

6(g) This section does not prohibit a person from bringing an
7action for damages caused by oil or by exploration, under any
8other provision or principle of law, including, but not limited to,
9common law. However, damages shall not be awarded pursuant
10to this section to an injured party for loss or injury for which the
11party is or has been awarded damages under any other provision
12or principle of law. Subdivision (b) does not create a defense not
13otherwise available regarding an action brought under any other
14provision or principle of law, including, but not limited to, common
15law.

16(h) Damages for which responsible parties are liable under this
17section include the following:

18(1) All costs of response, containment, cleanup, removal, and
19treatment, including, but not limited to, monitoring and
20administration costs incurred pursuant to the California oil spill
21contingency plan or actions taken pursuant to directions by the
22administrator.

23(2) Injury to, or economic losses resulting from destruction of
24or injury to, real or personal property, which shall be recoverable
25by any claimant who has an ownership or leasehold interest in
26property.

27(3) Injury to, destruction of or loss of, natural resources,
28including, but not limited to, the reasonable costs of rehabilitating
29wildlife, habitat, and other resources and the reasonable costs of
30assessing that injury, destruction, or loss, in an action brought by
31the state, a county, city, or district. Damages for the loss of natural
32resources may be determined by any reasonable method, including,
33but not limited to, determination according to the costs of restoring
34 the lost resource.

35(4) Loss of subsistence use of natural resources, which shall be
36recoverable by a claimant who so uses natural resources that have
37been injured, destroyed, or lost.

38(5) Loss of taxes, royalties, rents, or net profit shares caused by
39the injury, destruction, loss, or impairment of use of real property,
40personal property, or natural resources.

P83   1(6) Loss of profits or impairment of earning capacity due to the
2injury, destruction, or loss of real property, personal property, or
3natural resources, which shall be recoverable by any claimant who
4derives at least 25 percent of his or her earnings from the activities
5that utilize the property or natural resources, or, if those activities
6are seasonal in nature, 25 percent of his or her earnings during the
7applicable season.

8(7) Loss of use and enjoyment of natural resources, public
9beaches, and other public resources or facilities, in an action
10brought by the state, a county, city, or district.

11(i) Except as provided in Section 1431.2 of the Civil Code,
12liability under this section shall be joint and several. However, this
13section does not bar a cause of action that a responsible party has
14or would have, by reason of subrogation or otherwise, against a
15person.

16(j) This section does not apply to claims for damages for
17personal injury or wrongful death, and does not limit the right of
18a person to bring an action for personal injury or wrongful death
19begin delete underend deletebegin insert pursuant toend insert any provision or principle of law.

20(k)  Payments made by a responsible party to cover liabilities
21arising from a discharge of oil, whether under this division or any
22other provision of federal, state, or local law, shall not be charged
23against royalties, rents, or net profits owed to the United States,
24the state, or any other public entity.

25(l)  An action that a private or public individual or entity may
26have against a responsible party under this section may be brought
27directly by the individual or entity or by the state on behalf of the
28individual or entity. However, the state shall not pursue an action
29on behalf of a private individual or entity that requests the state
30not to pursue that action.

31(m) Forbegin delete theend delete purposes of this section, “vessels” means vessels
32as defined in Section 21 of the Harbors and Navigation Code.

33begin insert

begin insertSEC. 50.end insert  

end insert

begin insertSection 8670.56.6 of the end insertbegin insertGovernment Codeend insertbegin insert is
34amended to read:end insert

35

8670.56.6.  

(a) (1) Except as provided in subdivisions (b) and
36(d), and subject to subdivision (c),begin delete noend deletebegin insert aend insert person, including, but not
37limited to, an oil spill cooperative, its agents, subcontractors, or
38employees, shallbegin insert notend insert be liable under this chapter or the laws of the
39state to any person for costs, damages, or other claims or expenses
40as a result of actions taken or omitted in good faith in the course
P84   1of rendering care, assistance, or advice in accordance with the
2National Contingency Plan, the California oil spill contingency
3plan, or at the direction of the administrator, onsite coordinator,
4or the Coast Guard in response to a spill or threatenedbegin delete spill of oil.end delete
5begin insert spill.end insert

6(2) The qualified immunity under this section shall not apply
7to any oil spill response action that is inconsistent with the
8following:

9(A) The directions of the unified command, consisting of at
10least the Coast Guard and the administrator.

11(B) In the absence of a unified command, the directions of the
12administrator pursuant to Section 8670.27.

13(C) In the absence of directions pursuant to subparagraph (A)
14or (B), applicable oil spill contingency plans implemented under
15this division.

16(3) Nothing in this section shall, in any manner or respect, affect
17or impair any cause of action against or any liability of any person
18or persons responsible for the spill, for the discharged oil, or for
19the vessel, terminal, pipeline, or facility from which the oil was
20discharged. The responsible person or persons shall remain liable
21for any and all damages arising from the discharge, including
22damages arising from improperly carried out response efforts, as
23otherwise provided by law.

24(b) Nothing in this section shall, in any manner or respect, affect
25or impair any cause of action against or any liability of any party
26or parties responsible for the spill, or the responsible party’s agents,
27employees, or subcontractors, except persons immunized under
28 subdivision (a) for response efforts, for the discharged oil, or for
29the vessel, terminal, pipeline, orbegin delete marineend delete facility from which the
30oil was discharged.

31(c) The responsible party or parties shall be subject to both of
32the following:

33(1) Notwithstanding subdivision (b) or (i) of Section 8670.56.5,
34or any otherbegin delete provision ofend delete law, be strictly and jointly and severally
35liable for all damages arising pursuant to subdivision (h) of Section
368670.56.5 from the response efforts of its agents, employees,
37subcontractors, or an oil spill cooperative of which it is a member
38or with which it has a contract or other arrangement for cleanup
39of its oil spills, unless it would have a defense to the original spill.

P85   1(2) Remain strictly liable for any and all damages arising from
2the response efforts of a person other than a person specified in
3 paragraph (1).

4(d) Nothing in this section shall immunize a cooperative or any
5other person from liability for acts of gross negligence or willful
6misconduct in connection with the cleanup of a spill.

7(e) This section does not apply to any action for personal injury
8or wrongful death.

9(f) As used in this section, a “cooperative” means an
10organization of private personsbegin delete whichend deletebegin insert thatend insert is established for the
11primary purpose and activity of preventing or rendering care,
12assistance, or advice in response to a spill or threatened spill.

13(g) Except for the responsible party, membership in a
14cooperative shall notbegin delete, in and of itself,end delete be groundsbegin insert, in and of itself,end insert
15 for liability resulting from cleanup activities of the cooperative.

16(h) For purposes of this section, there shall be a rebuttable
17presumption that an act or omission described in subdivision (a)
18was taken in good faith.

19(i) In any situation in which immunity is granted pursuant to
20subdivision (a) and a responsible party is not liable, is not liable
21for noneconomic damages caused by another, or is partially or
22totally insolvent, the fund provided for in Article 7 (commencing
23with Section 8670.46) shallbegin delete, in accordance with its terms,end delete
24 reimbursebegin insert, in accordance with its terms,end insert claims of any injured
25party for which a person who is granted immunity pursuant to this
26section would otherwise be liable.

27(j) (1) The immunity granted by this section shall only apply
28to response efforts that are undertaken after the administrator
29certifies that contracts with qualified and responsible persons are
30in place to ensure an adequate and expeditious response to any
31foreseeable oil spill that may occur inbegin delete marineend delete watersbegin insert of the stateend insert
32 for which the responsible party (A) cannot be identified or (B) is
33unable or unwilling to respond, contain, and clean up the oil spill
34in an adequate and timely manner. In negotiating these contracts,
35the administrator shallbegin delete, to the maximum extent practicable,end delete procurebegin insert,
36to the maximum extent practicable,end insert
the services of persons who
37are willing to respond to oil spills with no, or lesser, immunity
38than that conferred by this section, but, in no event, a greater
39immunity. The administrator shall make the certification required
40by this subdivision on an annual basis. Upon certification, the
P86   1immunity conferred by this section shall apply to all response
2efforts undertaken during the calendar year to which the
3certification applies. In the absence of the certification required
4by this subdivision, the immunity conferred by this section shall
5not attach to any response efforts undertaken by any person in
6begin delete marineend delete watersbegin insert of the stateend insert.

7(2) In addition to the authority to negotiate contracts described
8in paragraph (1), the administrator may also negotiate and enter
9into indemnification agreements with qualified and financially
10responsible persons to respond to oil spills that may occur inbegin delete marineend delete
11 watersbegin insert of the stateend insert for which the responsible party (A) cannot be
12identified or (B) is unable or unwilling to respond, contain, and
13clean up the oil spill in an adequate and timely manner.

14(3) The administrator may indemnify response contractors for
15(A) all damages payable by means of settlement or judgment that
16arise from response efforts to which the immunity conferred by
17this section would otherwise apply, and (B) reasonably related
18legal costs and expenses incurred by the responder, provided that
19indemnification shall only apply to response efforts undertaken
20after the expiration of any immunity that may exist as the result
21of the contract negotiations authorized in this subdivision. In
22negotiating these contracts, the administrator shallbegin delete, to the maximum
23extent practicable,end delete
procurebegin insert, to the maximum extent practicable,end insert
24 the services of persons who are willing to respond to oil spills with
25no, or as little, right to indemnification as possible. All
26indemnification shall be paid by the administrator from the Oil
27Spill Response Trust Fund.

28(4) (A) The contracts required by this section, and any other
29contracts entered into by the administrator for response,
30containment, or cleanup of an existing spill,begin insert or for response of an
31imminent threat of a spill,end insert
the payment of which is to be made
32from the Oil Spill Response Trust Fund created pursuant to Section
338670.46,begin delete or for response to an imminent threat of a spill, the
34payment of which is to be made out of the Oil Spill Prevention
35and Administration Fund created pursuant to Section 8670.38,end delete

36 shall be exempt from Part 2 (commencing with Section 10100) of
37Division 2 of the Public Contract Code and Article 6 (commencing
38with Section 999) of Chapter 6 of Division 4 of the Military and
39Veterans Code.

P87   1(B) The exemption specified in subparagraph (A) applies only
2to contracts for which the services are used for a period of less
3than 90 days, cumulatively, per year.

4(C) This paragraph shall not be construed as limiting the
5administrator’s authority to exercise the emergency powers granted
6pursuant to subdivision (c) of Section 8670.62, including the
7authority to enter into emergency contracts that are exempt from
8approval by the Department of General Services.

9(k) (1) With regard to a person who is regularly engaged in the
10business of responding to oil spills, the immunity conferred by
11this section shall not apply to any response efforts by that person
12that occur later than 60 days after the first day the person’s response
13efforts commence.

14(2) Notwithstanding the limitation contained in paragraph (1),
15the administrator maybegin delete, upon making all the following findings,end delete
16 extendbegin insert, upon making all the following findings,end insert the period of time,
17not to exceed 30 days, during which the immunity conferred by
18this section applies to response efforts:

19(A) Due to inadequate or incomplete containment and
20stabilization, there exists a substantial probability that the size of
21the spill will significantly expand and (i) threaten previously
22uncontaminatedbegin delete marine or landend delete resources, (ii) threaten already
23contaminatedbegin delete marine or landend delete resources with substantial additional
24contamination, or (iii) otherwise endanger the public health and
25safety or harm the environment.

26(B) The remaining work is of a difficult or perilous nature that
27extension of the immunity is clearly in the public interest.

28(C) No other qualified and financially responsible contractor is
29prepared and willing to complete the response effort in the absence
30of the immunity, or a lesser immunity, as negotiated by contract.

31(3) The administrator shall provide five days’ notice of his or
32her proposed decision to either extend, or not extend, the immunity
33conferred by this section. Interested parties shall be given an
34 opportunity to present oral and written evidence at an informal
35hearing. In making his or her proposed decision, the administrator
36shall specifically seek and consider the advice of the relevant Coast
37Guard representative. The administrator’s decision to not extend
38the immunity shall be announced at least 10 working days before
39the expiration of the immunity to provide persons an opportunity
P88   1to terminate their response efforts as contemplated by paragraph
2(4).

3(4) begin deleteNo end deletebegin insertA end insertperson or their agents, subcontractors, or employees
4shallbegin insert notend insert incur any liability under this chapter or any other
5provision of law solely as a result of that person’s decision to
6 terminate their response efforts because of the expiration of the
7immunity conferred by this section. A person’s decision to
8terminate response efforts because of the expiration of the
9immunity conferred by this section shall not in any manner impair,
10curtail, limit, or otherwise affect the immunity conferred on the
11person with regard to the person’s response efforts undertaken
12during the period of time the immunity applied to those response
13efforts.

14(5) The immunity granted under this section shall attach, without
15the limitation contained in this subdivision, to the response efforts
16of any person who is not regularly engaged in the business of
17responding to oil spills. A person who is not regularly engaged in
18the business of responding to oil spills includes, but is not limited
19to, (A) a person who is primarily dedicated to the preservation and
20rehabilitation of wildlife and (B) a person who derives his or her
21livelihood primarily from fishing.

22(l) As used in this section, “response efforts” means rendering
23care, assistance, or advice in accordance with the National
24Contingency Plan, the California oil spill contingency plan, or at
25the direction of the administrator,begin delete onsite coordinator,end deletebegin insert United States
26Environmental Protection Agency,end insert
or the Coast Guard in response
27to a spill or threatened spill intobegin delete marineend delete watersbegin insert of the stateend insert.

28begin insert

begin insertSEC. 51.end insert  

end insert

begin insertSection 8670.61.5 of the end insertbegin insertGovernment Codeend insertbegin insert is
29amended to read:end insert

30

8670.61.5.  

(a) For purposes of this chapter, “wildlife
31rehabilitation” means those actions that are necessary to fully
32mitigate for the damagebegin insert from a spillend insert caused to wildlife, fisheries,
33wildlife habitat, and fisheriesbegin delete habitat, including beaches, from a
34spill or inland spill.end delete
begin insert habitat.end insert

35(b) Responsible parties shall fully mitigate adverse impacts to
36wildlife, fisheries, wildlife habitat, and fisheries habitat. Full
37mitigation shall be provided by successfully carrying out
38 environmental projects or funding restoration activities required
39by the administrator in carrying out projects complying with the
40requirements of this section. Responsible parties are also liable
P89   1for the costs incurred by the administrator or other government
2agencies in carrying out this section.

3(c) If any significant wildlife rehabilitation is necessary, the
4administrator may require the responsible party to prepare and
5submit to the administrator, and to implement, a wildlife
6rehabilitation plan. The plan shall describe the actions that will be
7implemented to fully meet the requirements of subdivision (b),
8describe contingency measures that will be carried out in the event
9that any of the plan actions are not fully successful, provide a
10reasonable implementation schedule, describe the monitoring and
11compliance program, and provide a financing plan. The
12administrator shall review and determine whether to approve the
13plan within 60 days of submittal. Before approving a plan, the
14administrator shall first find that the implementation of the plan
15will fully mitigate the adverse impacts to wildlife, fisheries, wildlife
16habitat, and fisheries habitat. If the habitat contains beaches that
17are or were used for recreational purposes, the Department of Parks
18and Recreation shall review the plan and provide comments to the
19administrator.

20(d) The plan shall place first priority on avoiding and minimizing
21any adverse impacts. For impacts that do occur, the plan shall
22provide for full onsite restoration of the damaged resource to the
23extent feasible. To the extent that full onsite restoration is not
24feasible, the plan shall provide for offsite in-kind mitigation to the
25extent feasible. To the extent that adverse impacts still have not
26been fully mitigated, the plan shall provide for the enhancement
27of other similar resources to the extent necessary to meet the
28requirements of subdivision (b). In evaluating whether a wildlife
29rehabilitation plan is adequate, the administrator may use the
30habitat evaluationbegin insert methods orend insert procedures established by the United
31States Fish and Wildlife Service or any other reasonable methods
32as determined by thebegin delete Director ofend deletebegin insert Department ofend insert Fish andbegin delete Gameend delete
33begin insert Wildlifeend insert.

34(e) The administrator shall prepare regulations to implement
35this section. The regulations shall include deadlines for the
36submittal of plans. In establishing the deadlines, the administrator
37shall consider circumstances such as the size of the spill and the
38time needed to assess damage and mitigation.

39begin insert

begin insertSEC. 52.end insert  

end insert

begin insertSection 8670.62 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
40to read:end insert

P90   1

8670.62.  

(a) Any person who discharges oil intobegin delete marineend delete waters
2begin insert of the stateend insert, upon order of the administrator, shall do all of the
3following:

4(1) Clean up the oil.

5(2) Abate the effects of the discharge.

6(3) In the case of a threatened discharge, take other necessary
7remedial action.

8(b) Upon failure of any person to comply with a cleanup or
9abatement order, the Attorney General or a district attorney, at the
10request of the administrator, shall petition the superior court for
11that county for the issuance of an injunction requiring the person
12to comply with the order. In any such suit, the court shall have
13jurisdiction to grant a prohibitory or mandatory injunction, either
14preliminary or permanent, as the facts may warrant.

15(c) Consistent with the state contingency plan, the administrator
16may expend available money to perform any response;
17containment; cleanup; wildlife rehabilitation, which includes
18assessment of resource injuries and damages, or remedial work
19required pursuant to subdivision (a)begin delete whichend deletebegin insert thatend insert, in the
20administrator’s judgment, is required by the circumstances or the
21urgency of prompt action required to prevent pollution, nuisance,
22or injury to the environment of the state. The action may be taken
23in default of, or in addition to, remedial work by the responsible
24party or other persons, and regardless of whether injunctive relief
25is sought. The administrator may perform the work in cooperation
26with any other governmental agency, and may use rented tools or
27equipment, either withbegin insert or withoutend insert operatorsbegin delete furnished or
28unoperated.end delete
begin insert furnished.end insert Notwithstanding any otherbegin delete provisions ofend delete
29 law, the administrator may enter into oral contracts for the work,
30and the contracts, whether written or oral, may include provisions
31for equipment rental and the furnishing of labor and materials
32necessary to accomplish the work. The contracts shall be exempt
33from Part 2 (commencing with Section 10100) of Division 2 of
34the Public Contract Code and Article 6 (commencing with Section
35999) of Chapter 6 of Division 4 of the Military and Veterans Code.

36(d) If the discharge is cleaned up, or attempted to be cleaned
37up, the effects thereof abated, or, in the case of threatened pollution
38or nuisance, other necessary remedial action is taken by any
39governmental agency, the person or persons who discharged the
40waste, discharged the oil, or threatened to cause or permit the
P91   1discharge of the oil within the meaning of subdivisionbegin delete (a),end deletebegin insert (a)end insert shall
2be liable to that governmental agency for the reasonable costs
3actually incurred in cleaning up that waste, abating the effects
4thereof, or taking other remedial action. The amount of the costs
5shall be recoverable in a civil action by, and paid to, the applicable
6governmental agency and the administrator, to the extent the
7administrator contributed to the cleanup costs from the Oil Spill
8Response Trust Fund or other available funds.

9(e) If, despite reasonable effort by the administrator to identify
10the party responsible for the discharge of oil or the condition of
11pollution or nuisance, the person is not identified at the time
12cleanup, abatement, or remedial work must be performed, the
13administrator shall not be required to issue an order under this
14section. The absence of a responsible party shall not in any way
15limit the powers of the administrator under this section.

16(f) begin delete“Threaten,” for purposes of this section, end deletebegin insertFor purposes of this
17section, “threaten” end insert
means a condition creating a substantial
18probability of harm, when the probability and potential extent of
19harm makes it reasonably necessary to take immediate action to
20prevent, reduce, or mitigate damages to persons, property, or
21natural resources.

22begin insert

begin insertSEC. 53.end insert  

end insert

begin insertSection 8670.64 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
23to read:end insert

24

8670.64.  

(a) A person who commits any of the followingbegin delete acts,end delete
25begin insert actsend insert shall, upon conviction, be punished by imprisonment in a
26county jail for not more than one year or by imprisonment pursuant
27to subdivision (h) of Section 1170 of the Penal Code:

28(1) Except as provided in Section 8670.27, knowingly fails to
29follow the direction or orders of the administrator in connection
30with an oil spill.

31(2) Knowingly fails to notify the Coast Guard that a vessel is
32disabled within one hour of the disability and the vessel, while
33 disabled, causes a discharge of oilbegin delete whichend deletebegin insert thatend insert enters marine waters.
34Forbegin delete theend delete purposes of this paragraph, “vessel” means a vessel, as
35defined in Section 21 of the Harbors and Navigation Code, of 300
36grossbegin delete registeredend delete tons or more.

37(3) Knowingly engages in or causes the discharge or spill of oil
38intobegin delete marineend delete watersbegin insert of the stateend insert, or a person who reasonably should
39have known that he or she was engaging in or causing the discharge
40or spill of oil intobegin delete marineend delete watersbegin insert of the stateend insert, unless the discharge
P92   1is authorized by the United States, the state, or another agency
2with appropriate jurisdiction.

3(4) Knowingly fails to begin cleanup, abatement, or removal of
4spilled oil as required in Section 8670.25.

5(b) The court shall also impose upon a person convicted of
6violating subdivision (a), a fine of not less than five thousand
7dollars ($5,000) or more than five hundred thousand dollars
8($500,000) for each violation. For purposes of this subdivision,
9each day or partial day that a violation occurs is a separate
10violation.

11(c) (1) A person who knowingly does any of the acts specified
12in paragraph (2) shall, upon conviction, be punished by a fine of
13not less than two thousand five hundred dollars ($2,500) or more
14than two hundred fifty thousand dollars ($250,000), or by
15imprisonment in a county jail for not more than one year, or by
16both the fine and imprisonment. Each day or partial day that a
17violation occurs is a separate violation. If the conviction is for a
18second or subsequent violation of this subdivision, the person shall
19be punished by imprisonment pursuant to subdivision (h) of Section
201170 of the Penal Code, or in a county jail for not more than one
21year, or by a fine of not less than five thousand dollars ($5,000)
22or more than five hundred thousand dollars ($500,000), or by both
23that fine and imprisonment:

24(2) The acts subject to this subdivision are all of the following:

25(A) Failing to notify the Office of Emergency Services in
26violation of Section 8670.25.5.

27(B) Knowingly making a false or misleadingbegin delete marineend delete oil spill
28report to the Office of Emergency Services.

29(C) Continuing operations for which an oil spill contingency
30plan is required without an oil spill contingency plan approved
31pursuant to Article 5 (commencing with Section 8670.28).

32(D) Except as provided in Section 8670.27, knowingly failing
33to follow the material provisions of an applicable oil spill
34contingency plan.

35begin insert

begin insertSEC. 54.end insert  

end insert

begin insertSection 8670.66 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
36to read:end insert

37

8670.66.  

(a) Any person who intentionally or negligently does
38any of the following acts shall be subject to a civil penalty for a
39spill of not less than fifty thousand dollars ($50,000) or more than
40one million dollars ($1,000,000),begin delete or for an inland spill not to exceed
P93   1fifty thousand dollars ($50,000),end delete
for each violation, and each day
2or partial day that a violation occurs is a separate violation:

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

6(2) Fails to notify the Coast Guard that a vessel is disabled
7within one hour of the disability and the vessel, while disabled,
8causes a spill that entersbegin delete marineend delete watersbegin insert of the stateend insert. Forbegin delete theend delete
9 purposes of this paragraph, “vessel” means a vessel, as defined in
10Section 21 of the Harbors and Navigation Code, of 300 gross
11begin delete registeredend delete tons or more.

12(3) Is responsible for abegin delete spill or inlandend delete spill, unless the discharge
13is authorized by the United States, the state, or other agency with
14appropriate jurisdiction.

15(4) Fails to begin cleanup, abatement, or removal of oil as
16required in Section 8670.25.

17(b) Except as provided in subdivision (a), any person who
18intentionally or negligently violates any provision of this chapter,
19or Division 7.8 (commencing with Section 8750) of the Public
20Resources Code, or any permit, rule, regulation, standard, or
21requirement issued or adopted pursuant to those provisions, shall
22be liable for a civil penalty not to exceed two hundred fifty
23thousand dollars ($250,000) for each violation of a separate
24provision, or, for continuing violations, for each day that violation
25continues.

26(c) begin deleteNo end deletebegin insertA end insertperson shallbegin insert notend insert be liable for a civil penalty imposed
27under this section and for a civil penalty imposed pursuant to
28Section 8670.67 for the same act or failure to act.

29begin insert

begin insertSEC. 55.end insert  

end insert

begin insertSection 8670.67 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
30to read:end insert

31

8670.67.  

(a) Any person who intentionally or negligently does
32any of the following acts shall be subject to an administrative civil
33penalty for a spill not to exceed two hundred thousand dollars
34($200,000),begin delete or for an inland spill not to exceed fifty thousand
35dollars ($50,000),end delete
for each violation as imposed by the
36administrator pursuant to Section 8670.68, and each day or partial
37day that a violation occurs is a separate violation:

38(1) Except as provided in Section 8670.27, fails to follow the
39applicable contingency plans or the direction or orders of the
40administrator in connection with a spill or inland spill.

P94   1(2) Fails to notify the Coast Guard that a vessel is disabled
2within one hour of the disability and the vessel, while disabled,
3causes a discharge that entersbegin delete marineend delete watersbegin delete or inland waters.end deletebegin insert of
4the state.end insert
Forbegin delete theend delete purposes of this paragraph, “vessel” means a
5vessel, as defined in Section 21 of the Harbors and Navigation
6Code, of 300 grossbegin delete registeredend delete tons or more.

7(3) Is responsible for abegin delete spill or inlandend delete spill, unless the discharge
8is authorized by the United States, the state, or other agency with
9appropriate jurisdiction.

10(4) Fails to begin cleanup, abatement, or removal of spilled oil
11as required by Section 8670.25.

12(b) Except as provided in subdivision (a), any person who
13intentionally or negligently violates any provision of this chapter,
14or Division 7.8 (commencing with Section 8750) of the Public
15Resources Code, or any permit, rule, regulation, standard, cease
16and desist order, or requirement issued or adopted pursuant to
17those provisions, shall be liable for an administrative civil penalty
18as imposed by the administrator pursuant to Section 8670.68, not
19to exceed one hundred thousand dollars ($100,000) for each
20violation of a separate provision, or, for continuing violations, for
21each day that violation continues.

22(c) begin deleteNo end deletebegin insertA end insertperson shallbegin insert notend insert be liable for a civil penalty imposed
23under this section and for a civil penalty imposed pursuant to
24Section 8670.66 for the same act or failure to act.

25begin insert

begin insertSEC. 56.end insert  

end insert

begin insertSection 8670.67.5 of the end insertbegin insertGovernment Codeend insertbegin insert is
26amended to read:end insert

27

8670.67.5.  

(a) Any person who without regard to intent or
28negligence causes or permits a spillbegin delete or inland spillend delete shall be strictly
29liable civilly in accordance with subdivision (b) or (c).

30(b) A penalty may be administratively imposed by the
31administrator in accordance with Section 8670.68begin delete in an amount
32not to exceed ten dollars ($10) per gallon of oil released for an
33inland spill, andend delete
in an amount not to exceed twenty dollars ($20)
34per gallon for a spill. The amount of the penalty shall be reduced
35for every gallon of released oil that is recovered and properly
36 disposed of in accordance with applicable law.

37(c) Whenever the release of oil resulted from gross negligence
38or reckless conduct, the administrator shall, in accordance with
39Section 8670.68, impose a penalty begin delete in the amount of thirty dollars
40($30) per gallon of oil released for an inland spill, andend delete
in an amount
P95   1not to exceed sixty dollars ($60)begin insert per gallonend insert for a spill. The amount
2of the penalty shall be reduced for every gallon of released oil that
3is recovered and properly disposed of in accordance with applicable
4law.

5(d) The administrator shall adopt regulations governing the
6method for determining the amount of oil that is cleaned up.

7begin insert

begin insertSEC. 57.end insert  

end insert

begin insertSection 8670.69.4 of the end insertbegin insertGovernment Codeend insertbegin insert is
8amended to read:end insert

9

8670.69.4.  

(a) When the administrator determines that any
10person has undertaken, or is threatening to undertake, any activity
11or procedure that (1) requires a permit, certificate, approval, or
12authorization under this chapter, without securing a permit, or (2)
13is inconsistent with any of the permits, certificates, rules,
14regulations, guidelines, orbegin delete authorizations,end deletebegin insert authorizationsend insert previously
15issued or adopted by the administrator, or (3) threatens to cause
16or substantially increases the risk of unauthorized discharge of oil
17into thebegin delete marineend delete waters of the state, the administrator may issue an
18order requiring that person to cease and desist.

19(b) Any cease and desist order issued by the administrator may
20be subject tobegin delete suchend deletebegin insert thoseend insert terms and conditions as the administrator
21may determine are necessary to ensure compliance with this
22division.

23(c) Any cease and desist order issued by the administrator shall
24become null and void 90 days after issuance.

25(d) A cease and desist order issued by the administrator shall
26be effective upon the issuance thereof, and copies shall be served
27immediately by certified mail upon the person or governmental
28agency being charged with the actual or threatened violation.

29(e) Any cease and desist order issued by the administrator shall
30be consistent with subdivision (a) of Section 8670.27.

31begin insert

begin insertSEC. 58.end insert  

end insert

begin insertSection 8670.69.7 of the end insertbegin insertGovernment Codeend insertbegin insert is
32repealed.end insert

begin delete
33

8670.69.7.  

All penalties collected under this article for inland
34spills shall be deposited into the Fish and Wildlife Pollution
35Account in the Fish and Game Preservation Fund and be available
36for expenditure in accordance with Section 12017 of the Fish and
37Game Code.

end delete
38begin insert

begin insertSEC. 59.end insert  

end insert

begin insertSection 8670.71 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
39to read:end insert

P96   1

8670.71.  

(a) The administrator shall fund only those projects
2approved by the Environmental Enhancement Committee.

3(b) Forbegin delete theend delete purposes of this article, an enhancement project is
4a project that acquires habitat for preservation, or improves habitat
5quality and ecosystem function above baseline conditions, and that
6meets all of the following requirements:

7(1) Is located within or immediately adjacent tobegin delete California
8marineend delete
watersbegin insert of the stateend insert, as defined in begin delete subdivision (i) ofend delete Section
98670.3.

10(2) Has measurable outcomes within a predetermined timeframe.

11(3) Is designed to acquire, restore, or improve habitat or restore
12ecosystem function, or both, to benefit fish and wildlife.

13begin insert

begin insertSEC. 60.end insert  

end insert

begin insertSection 8670.95 is added to the end insertbegin insertGovernment Codeend insertbegin insert,
14to read:end insert

begin insert
15

begin insert8670.95.end insert  

If any provision of this chapter or the application
16thereof to any person or circumstances is held invalid, that
17invalidity shall not affect other provisions or applications of the
18chapter that can be given effect without the invalid provision or
19application, and to this end the provisions of this chapter are
20severable.

end insert
21begin insert

begin insertSEC. 61.end insert  

end insert

begin insertSection 449 of the end insertbegin insertHarbors and Navigation Codeend insertbegin insert is
22amended to read:end insert

23

449.  

(a) The marine exchange and its officers and directors
24are subject to Section 5047.5 of the Corporations Code to the extent
25that the marine exchange meets the criteria specified in that section.

26(b) Nothing in this section shall be deemed to include the marine
27exchange or its officers, directors, employees, or representatives
28within the meaning of “responsible party” as defined inbegin delete subdivision
29(q) ofend delete
Section 8670.3 of the Government Code and subdivision
30(p) of Section 8750 of the Public Resources Code for the purposes
31of the Lempert-Keene-Seastrand Oil Spill Prevention and Response
32Act (Article 3.5 (commencing with Section 8574.1) of Chapter 7
33and Chapter 7.4 (commencing with Section 8670.1) of Division 1
34of Title 2 of the Government Code and Division 7.8 (commencing
35with Section 8750) of the Public Resources Code).

36begin insert

begin insertSEC. 62.end insert  

end insert
begin insert

It is the intent of the Legislature that the
37reorganization and transfer made by Sections 63 to 127, inclusive,
38Section 181, and Sections 187 to 190, inclusive, of this act be
39carried out in a manner to preserve state primacy under the federal
P97   1Safe Drinking Water Act and that the terms of this act shall be
2liberally construed to achieve this purpose.

end insert
3begin insert

begin insertSEC. 63.end insert  

end insert

begin insertSection 116271 is added to the end insertbegin insertHealth and Safety
4Code
end insert
begin insert, to read:end insert

begin insert
5

begin insert116271.end insert  

(a) The State Water Resources Control Board
6succeeds to and is vested with all of the authority, duties, powers,
7purposes, functions, responsibilities, and jurisdiction of the State
8Department of Public Health, its predecessors, and its director
9for purposes of all of the following:

10(1) The Environmental Laboratory Accreditation Act (Article
113 (commencing with Section 100825) of Chapter 4 of Part 1 of
12Division 101).

13(2) Article 3 (commencing with Section 106875) of Chapter 4
14of Part 1.

15(3) Article 1 (commencing with Section 115825) of Chapter 5
16of Part 10.

17(4) This chapter and the Safe Drinking Water State Revolving
18Fund Law of 1997 (Chapter 4.5 (commencing with Section
19116760)).

20(5) Article 2 (commencing with Section 116800), Article 3
21(commencing with Section 116825), and Article 4 (commencing
22with Section 116875) of Chapter 5.

23(6) Chapter 7 (commencing with Section 116975).

24(7) The Safe Drinking Water, Water Quality and Supply, Flood
25Control, River and Coastal Protection Bond Act of 2006 (Division
2643 (commencing with Section 75001) of the Public Resources
27Code).

28(8) The Water Recycling Law (Chapter 7 (commencing with
29Section 13500) of Division 7 of the Water Code).

30(9) Chapter 7.3 (commencing with Section 13560) of Division
317 of the Water Code.

32(10) The California Safe Drinking Water Bond Law of 1976
33(Chapter 10.5 (commencing with Section 13850) of Division 7 of
34the Water Code).

35(11) Wholesale Regional Water System Security and Reliability
36Act (Division 20.5 (commencing with Section 73500) of the Water
37Code).

38(12) Water Security, Clean Drinking Water, Coastal and Beach
39Protection Act of 2002 (Division 26.5 (commencing with Section
4079500) of the Water Code).

P98   1(b) The State Water Resources Control Board shall maintain a
2drinking water program and carry out the duties, responsibilities,
3and functions described in this section. Statutory reference to
4“department,” “state department,” or “director” regarding a
5function transferred to the State Water Resources Control Board
6shall refer to the State Water Resources Control Board. This
7section does not impair the authority of a local health officer to
8enforce this chapter or a county’s election not to enforce this
9chapter, as provided in Section 116500.

10(c) The State Water Resources Control Board shall succeed to
11the status of grantee or applicant, as appropriate, for any federal
12Drinking Water State Revolving Fund capitalization grants that
13the State Department of Public Health and any of its predecessors
14applied for.

15(d) Regulations adopted, orders issued, and all other
16administrative actions taken by the State Department of Public
17Health, any of its predecessors, or its director, pursuant to the
18authorities now vested in the State Water Resources Control Board
19and in effect immediately preceding the operative date of this
20section shall remain in effect and are fully enforceable unless and
21until readopted, amended, or repealed, or until they expire by their
22own terms. Regulations in the process of adoption pursuant to the
23authorities vested in the State Water Resources Control Board
24shall continue under the authority of the State Water Resources
25Control Board unless and until the State Water Resources Control
26Board determines otherwise. Any other administrative action
27adopted, prescribed, taken, or performed by, or on behalf of, the
28State Department of Public Health, or its director, in the
29administration of a program or the performance of a duty,
30responsibility, or authorization transferred to the State Water
31Resources Control Board shall remain in effect and shall be
32deemed to be an action of the State Water Resources Control Board
33unless and until the State Water Resources Control Board
34determines otherwise.

35(e) Permits, licenses, accreditations, certificates, and other
36formal approvals and authorizations issued by the State
37Department of Public Health, any of its predecessors, or its
38director pursuant to authorities vested in the State Water Resources
39Control Board pursuant to this section are not affected by the
40transfer and remain in effect, subject to all applicable laws and
P99   1regulations, unless and until renewed, reissued, revised, amended,
2suspended, or revoked by the State Water Resources Control Board
3or its deputy director, as authorized pursuant to subdivision (k).

4(f) Any action or proceeding by or against the State Department
5of Public Health, including any officer or employee of the State
6Department of Public Health named in an official capacity, or any
7of its predecessors, pertaining to matters vested in the State Water
8Resources Control Board by this section shall not abate, but shall
9continue in the name of the State Water Resources Control Board.
10The State Water Resources Control Board shall be substituted for
11the State Department of Public Health, including any officer or
12employee of the State Department of Public Health named in an
13official capacity, and any of its predecessors, by the court or
14agency where the action or proceeding is pending. The substitution
15shall not in any way affect the rights of the parties to the action
16or proceeding.

17(g) On and after the operative date of this section, the
18unexpended balance of all funds available for use by the State
19Department of Public Health or any of its predecessors in carrying
20out any functions transferred to the State Water Resources Control
21Board are available for use by the State Water Resources Control
22Board.

23(h) Books, documents, data, records, and property of the State
24Department of Public Health pertaining to functions transferred
25to the State Water Resources Control Board shall be transferred
26to the State Water Resources Control Board. This subdivision does
27not transfer any part of property commonly known as the Richmond
28Campus that is owned by the State Public Works Board.

29(i) A contract, lease, license, or any other agreement, including
30local primacy agreements, as described in Section 116330, to
31which the State Department of Public Health, any of its
32predecessors, its director, or their agents, is a party, are not void
33or voidable by reason of this section, but shall continue in full
34force and effect, with the State Water Resources Control Board
35assuming all of the rights, obligations, liabilities, and duties of the
36State Department of Public Health and any of its predecessors as
37it relates to the duties, powers, purposes, responsibilities, and
38jurisdiction vested in the State Water Resources Control Board
39pursuant to this section. This assumption does not affect the rights
40of the parties to the contract, lease, license, or agreement.

P100  1(j) If the Department of Water Resources entered into
2agreements on behalf of the State Department of Public Health or
3its predecessor, the State Department of Health Services, pursuant
4to Chapter 4.5 (commencing with Section 116760), the State Water
5Resources Control Board shall also succeed the Department of
6Water Resources as a party to those agreements and to all related
7security instruments, including, but not limited to, fiscal services
8agreements, deeds of trust, guarantees, letters of credit, and deposit
9control agreements.

10(k) (1) The State Water Resources Control Board shall appoint
11a deputy director who reports to the executive director to oversee
12the issuance and enforcement of public water system permits and
13other duties as appropriate. The deputy director shall have public
14health expertise.

15(2) The deputy director is delegated the State Water Resources
16 Control Board’s authority to provide notice, approve notice
17content, approve emergency notification plans, and take other
18action pursuant to Article 5 (commencing with Section 116450),
19to issue, renew, reissue, revise, amend, or deny any public water
20system permits pursuant to Article 7 (commencing with Section
21116525), to suspend or revoke any public water system permit
22pursuant to Article 8 (commencing with Section 116625), and to
23issue citations, assess penalties, or issue orders pursuant to Article
249 (commencing with Section 116650). Decisions and actions of
25the deputy director taken pursuant to Article 5 (commencing with
26Section 116450) or Article 7 (commencing with Section 116525)
27are deemed decisions and actions taken, but are not subject to
28reconsideration, by the State Water Resources Control Board.
29Decisions and actions of the deputy director taken pursuant to
30Article 8 (commencing with Section 116625) and Article 9
31(commencing with Section 116650) are deemed decisions and
32actions taken by the State Water Resources Control Board, but
33any aggrieved person may petition the State Water Resources
34Control Board for reconsideration of the decision or action. This
35subdivision is not a limitation on the State Water Resources Control
36Board’s authority to delegate any other powers and duties.

37(3) The State Water Resources Control Board shall not delegate
38any authority, duty, power, purpose, function, or responsibility
39specified in this section, including, but not limited to, issuance and
P101  1enforcement of public water system permits, to the regional water
2quality control boards.

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

end insert
4begin insert

begin insertSEC. 64.end insert  

end insert

begin insertSection 116760.10 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
5amended to read:end insert

6

116760.10.  

The Legislature hereby finds and declares all of
7the following:

8(a) The department has discovered toxic contaminants and new
9pathogenic organisms, including cryptosporidium, in many of
10California’s public drinking water systems.

11(b) Many of the contaminants in California’s drinking water
12supplies are known to cause, or are suspected of causing, cancer,
13birth defects, and other serious illnesses.

14(c) It is unlikely that the contamination problems of small public
15water systems can be solved without financial assistance from the
16state.

17(d) The protection of the health, safety, and welfare of the people
18of California requires that the water supplied for domestic purposes
19be at all times pure, wholesome, and potable. It is in the interest
20of the people that thebegin delete stateend deletebegin insert Stateend insert of California provide technical
21and financial assistance to ensure a safe, dependable, and potable
22supply of water for domestic purposes and that water is available
23in adequate quantity at sufficient pressure for health, cleanliness,
24and other domestic purposes.

25(e) It is the intent of the Legislature to provide for the upgrading
26of existing public water supply systems to ensure that all domestic
27water supplies meet safe drinking water standards and other
28requirements established under Chapter 4 (commencing with
29Section 116270).

30(f) (1) The extent of the current risk to public health from
31contamination in drinking water creates a compelling need to
32upgrade existing public water systems. The demand for financial
33assistance to enable public water systems to meet drinking water
34standards and regulations exceeds funds available from the Safe
35Drinking Water State Revolving Fund.

36(2) A project whose primary purpose is to supply or attract
37growth shall not be eligible to receive assistance from the Safe
38Drinking Water State Revolving Fund.

39(3) A project whose primary purpose is to enable a public water
40system to improve public health protection by complying with
P102  1drinking water standards and regulations and that also includes
2components to accommodate a reasonable amount of growth over
3its useful life shall be eligible for assistance from the Safe Drinking
4Water State Revolving Fund, but the project shall receive priority
5based on the component to meet drinking water standards pursuant
6to Section 116760.70. The department shall expressly consider the
7effort of the applicant to secure funds other than those available
8from the Safe Drinking Water State Revolving Fund in establishing
9the priority listing for funding pursuant to Article 4 (commencing
10with Section 116760.50).

11(4) After projects have been prioritized for funding into priority
12list categories pursuant to the requirements of Section 116760.70,
13within each category, projects that do not include a component of
14growth, shall receive priority for funding over projects that have
15a component to accommodate a reasonable amount of growth.

16(g) The Legislature further finds and declares that regional
17solutions to water contamination problems are often more effective,
18efficient, and economical than solutions designed to address solely
19the problems of a single small public water system, and it is in the
20interest of the people of the State of California to encourage the
21consolidation of the management and the facilities of small water
22systems to enable those systems to better address their water
23contamination problems.

24(h) The protection of drinking water sources is essential to
25ensuring that the people of California are provided with pure,
26wholesome, and potable drinking water.

27(i) That coordination among local, state, and federal public
28health and environmental management programs be undertaken
29to ensure that sources of drinking water are protected while
30avoiding duplication of effort and reducing program costs.

31(j) It is necessary that a source water protection program be
32implemented for the purposes of delineating, assessing, and
33protecting drinking water sources throughout the state and that
34federal funds be utilized pursuant to the federal Safe Drinking
35Water Act (42 U.S.C. Sec. 300j et seq.) to carry out that program.

36(k) It is in the interest of the people of the state to provide funds
37for a perpetual Safe Drinking Water State Revolving Fund that
38may be combined with similar federal funding to the extent the
39funding is authorized pursuant to the federal Safe Drinking Water
40Act (42 U.S.C. Sec. 300j et seq.).

P103  1(l) This chapter shall govern implementation of the Safe
2Drinking Water State Revolving Fund, and shall be implemented
3in a manner that is consistent with the federal Safe Drinking Water
4Act, and, to the extent authorized under the federal act, in a manner
5that is consistent with the California Safe Drinking Water Act,
6Chapter 4 (commencing with Section 116275).

begin insert

7(m) 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. 65.end insert  

end insert

begin insertSection 116760.10 is added to the end insertbegin insertHealth and Safety
12Code
end insert
begin insert, to read:end insert

begin insert
13

begin insert116760.10.end insert  

(a) Because the federal Safe Drinking Water Act
14(42 U.S.C. Sec. 300j et seq.) provides for establishment of a
15perpetual drinking water revolving fund, which will be partially
16capitalized by federal contributions, it is in the interest of the
17people of the state, in order to ensure full participation by the state
18under the federal Safe Drinking Water Act, to enact this chapter
19to authorize the state to establish and implement a state drinking
20water revolving fund that will meet federal conditions for receipt
21of federal funds. The primary purpose of this chapter is to enable
22receipt of funds under the federal Safe Drinking Water Act. It is
23the intent of the Legislature that the terms of this chapter shall be
24liberally construed to achieve this purpose.

25(b)  Toxic contaminants and new pathogenic organisms,
26including cryptosporidium, have been discovered in many of
27California’s public drinking water systems.

28(c) Many of the contaminants in California’s drinking water
29supplies are known to cause, or are suspected of causing, cancer,
30birth defects, and other serious illnesses.

31(d) It is unlikely that the contamination problems of small public
32water systems can be solved without financial assistance from the
33state.

34(e) The protection of the health, safety, and welfare of the people
35of California requires that the water supplied for domestic
36purposes be at all times pure, wholesome, and potable. It is in the
37interest of the people that the State of California provide technical
38and financial assistance to ensure a safe, dependable, and potable
39supply of water for domestic purposes and that water is available
P104  1in adequate quantity at sufficient pressure for health, cleanliness,
2and other domestic purposes.

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

8(g) The extent of the current risk to public health from
9contamination in drinking water creates a compelling need to
10upgrade existing public water systems. The demand for financial
11assistance to enable public water systems to meet drinking water
12standards and regulations exceeds funds available from the Safe
13Drinking Water State Revolving Fund.

14(h) The Legislature further finds and declares that regional
15 solutions to water contamination problems are often more effective,
16efficient, and economical than solutions designed to address solely
17the problems of a single small public water system, and it is in the
18interest of the people of the State of California to encourage the
19consolidation of the management and the facilities of small water
20systems to enable those systems to better address their water
21contamination problems.

22(i) The protection of drinking water sources is essential to
23ensuring that the people of California are provided with pure,
24wholesome, and potable drinking water.

25(j) That coordination among local, state, and federal public
26health and environmental management programs be undertaken
27to ensure that sources of drinking water are protected while
28avoiding duplication of effort and reducing program costs.

29(k) It is necessary that a source water protection program be
30implemented for the purposes of delineating, assessing, and
31protecting drinking water sources throughout the state and that
32federal funds be utilized pursuant to the federal Safe Drinking
33Water Act to carry out that program.

34(l) It is in the interest of the people of the state to provide funds
35for a perpetual Safe Drinking Water State Revolving Fund that
36may be combined with similar federal funding to the extent the
37funding is authorized pursuant to the federal Safe Drinking Water
38Act.

39(m) This chapter shall govern implementation of the Safe
40Drinking Water State Revolving Fund, and shall be implemented
P105  1in a manner that is consistent with the federal Safe Drinking Water
2Act, and, to the extent authorized under the federal act, in a manner
3that is consistent with the California Safe Drinking Water Act,
4 Chapter 4 (commencing with Section 116270).

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

end insert
6begin insert

begin insertSEC. 66.end insert  

end insert

begin insertSection 116760.20 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
7amended to read:end insert

8

116760.20.  

begin insert(a)end insertbegin insertend insertUnless the context otherwise requires, the
9following definitions govern the construction of this chapter:

begin delete

10(a)

end delete

11begin insert(1)end insert “Acceptable result” means the project that, when constructed,
12solves the problem for which the project was placed on the project
13priority list established pursuant to Section 116760.70, ensures the
14owner and operator of the improved or restructured public water
15 system shall have long-term technical, managerial, and financial
16capacity to operate and maintain the public water system in
17compliance with state and federal safe drinking water standards,
18can provide a dependable source of safe drinking water long-term,
19and is both short-term and long-term affordable, as determined by
20applicable regulations adopted by the department.

begin delete

21(b)

end delete

22begin insert(2)end insert “Cost-effective project” means a project that achieves an
23acceptable result at the most reasonable cost.

begin delete

24(c)

end delete

25begin insert(3)end insert “Department” means the State Department of Public Health.

begin delete

26(d)

end delete

27begin insert(4)end insert “Disadvantaged community” means a community that meets
28the definition provided in Section 116275.

begin delete

29(e)

end delete

30begin insert(5)end insert “Federal Safe Drinking Water Act” or “federal act” means
31the federal Safe Drinking Water Act (42 U.S.C. Sec. 300f et seq.)
32and acts amendatory thereof or supplemental thereto.

begin delete

33(f)

end delete

34begin insert(6)end insert “Fund” means the Safe Drinking Water State Revolving
35Fund created by Section 116760.30.

begin delete

36(g)

end delete

37begin insert(7)end insert “Funding” means a loan or grant, or both, awarded under
38this chapter.

begin delete

39(h)

end delete

P106  1begin insert(8)end insert “Matching funds” means state money that equals that
2percentage of federal contributions required by the federal act to
3be matched with state funds.

begin delete

4(i)

end delete

5begin insert(9)end insert “Project” means proposed facilities for the construction,
6improvement, or rehabilitation of a public water system, and may
7include all items set forth in Section 116761 as necessary to carry
8out the purposes of this chapter. It also may include refinancing
9loans, annexation or consolidation of water systems, source water
10assessments, source water protection, and other activities specified
11under the federal act.

begin delete

12(j)

end delete

13begin insert(10)end insert “Public agency” means any city, county, city and county,
14whether general law or chartered, district, joint powers authority,
15or other political subdivision of the state, that owns or operates a
16public water system.

begin delete

17(k)

end delete

18begin insert(11)end insert “Public water system” or “public water supply system”
19means a system for the provision to the public of water for human
20consumption, as defined in Chapter 4 (commencing with Section
21116270), as it may be amended from time to time.

begin delete

22(l)

end delete

23begin insert(12)end insert “Reasonable amount of growth” means an increase in
24growth not to exceed 10 percent of the design capacity needed,
25based on peak flow, to serve the water and fire flow demand in
26existence at the time plans and specifications for the project are
27approved by the department, over the 20-year useful life of a
28project. For projects other than the construction of treatment plants
29including, but not limited to, storage facilities, pipes, pumps, and
30similar equipment, where the 10-percent allowable growth cannot
31be adhered to due to the sizes of equipment or materials available,
32the project shall be limited to the next available larger size.

begin delete

33(m)

end delete

34begin insert(13)end insert “Safe drinking water standards” means those standards
35established pursuant to Chapter 4 (commencing with Section
36116270), as they may now or hereafter be amended.

begin delete

37(n)

end delete

38begin insert(14)end insert “Severely disadvantaged community” means a community
39with a median household income of less than 60 percent of the
40statewide average.

begin delete

P107  1(o)

end delete

2begin insert(15)end insert “Supplier” means any person, partnership, corporation,
3association, public agency, or other entity that owns or operates a
4public water system.

begin insert

5(b) This section shall become inoperative on July 1, 2014, and,
6as of January 1, 2015, is repealed, unless a later enacted statute,
7that becomes operative on or before January 1, 2015, deletes or
8extends the dates on which it becomes inoperative and is repealed.

end insert
9begin insert

begin insertSEC. 67.end insert  

end insert

begin insertSection 116760.20 is added to the end insertbegin insertHealth and Safety
10Code
end insert
begin insert, to read:end insert

begin insert
11

begin insert116760.20.end insert  

(a) Unless the context otherwise requires, the
12following definitions govern the construction of this chapter:

13(1) “Acceptable result” means the project that, when
14constructed, solves the problem for which the project was placed
15on the project priority list established pursuant to Section
16116760.70, ensures the owner and operator of the improved or
17restructured public water system shall have long-term technical,
18managerial, and financial capacity to operate and maintain the
19public water system in compliance with state and federal safe
20drinking water standards, can provide a dependable source of safe
21drinking water long-term, and is both short-term and long-term
22affordable, as determined by applicable regulations adopted by
23the board.

24(2) “Board” means the State Water Resources Control Board.

25(3) “Cost-effective project” means a project that achieves an
26acceptable result at the most reasonable cost.

27(4) “Disadvantaged community” means a community that meets
28the definition provided in Section 116275.

29(5) “Federal Safe Drinking Water Act” or “federal act” means
30the federal Safe Drinking Water Act (42 U.S.C. Sec. 300f et seq.)
31and acts amendatory thereof or supplemental thereto.

32(6) “Fund” means the Safe Drinking Water State Revolving
33Fund created by Section 116760.30.

34(7) “Funding” means a loan or grant, or both, awarded under
35this chapter.

36(8) “Matching funds” means state money that equals that
37percentage of federal contributions required by the federal act to
38be matched with state funds.

39(9) “Project” means proposed facilities for the construction,
40improvement, or rehabilitation of a public water system, and may
P108  1include all items set forth in Section 116761 as necessary to carry
2out the purposes of this chapter. It also may include refinancing
3loans, annexation or consolidation of water systems, source water
4assessments, source water protection, and other activities specified
5under the federal act.

6(10) “Public agency” means any city, county, city and county,
7whether general law or chartered, district, joint powers authority,
8or other political subdivision of the state, that owns or operates a
9public water system.

10(11) “Public water system” or “public water supply system”
11means a system for the provision to the public of water for human
12consumption, as defined in Chapter 4 (commencing with Section
13116270), as it may be amended from time to time.

14(12) “Reasonable amount of growth” means an increase in
15growth not to exceed 10 percent of the design capacity needed,
16based on peak flow, to serve the water and fire flow demand in
17existence at the time plans and specifications for the project are
18approved by the board, over the 20-year useful life of a project.
19For projects other than the construction of treatment plants
20including, but not limited to, storage facilities, pipes, pumps, and
21similar equipment, where the 10-percent allowable growth cannot
22be adhered to due to the sizes of equipment or materials available,
23the project shall be limited to the next available larger size.

24(13) “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(14) “Severely disadvantaged community” means a community
28with a median household income of less than 60 percent of the
29statewide average.

30(15) “Small community water system” has the meaning set forth
31in Section 116275.

32(16) “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 July 1, 2014, and is
36repealed as of January 1 of the next calendar year occurring after
37the board provides notice to the Legislature and the Secretary of
38State and posts notice on its Internet Web site that the board has
39adopted a policy handbook pursuant to Section 116760.43.

end insert
P109  1begin insert

begin insertSEC. 68.end insert  

end insert

begin insertSection 116760.20 is added to the end insertbegin insertHealth and Safety
2Code
end insert
begin insert, to read:end insert

begin insert
3

begin insert116760.20.end insert  

(a) Unless the context otherwise requires, the
4following definitions govern the construction of this chapter:

5(1) “Acceptable result” means the project that, when
6constructed, solves the problem for which the project was placed
7on the project priority list, ensures the owner and operator of the
8improved or restructured public water system shall have long-term
9technical, managerial, and financial capacity to operate and
10maintain the public water system in compliance with state and
11federal safe drinking water standards, can provide a dependable
12source of safe drinking water long-term, and is both short-term
13and long-term affordable, as determined by the board.

14(2) “Board” means the State Water Resources Control Board.

15(3) “Cost-effective” means achieves an acceptable result at the
16most reasonable cost.

17(4) “Disadvantaged community” means a community that meets
18the definition provided in Section 116275.

19(5) “Federal Safe Drinking Water Act” or “federal act” means
20the federal Safe Drinking Water Act (42 U.S.C. Sec. 300f et seq.)
21and acts amendatory thereof or supplemental thereto.

22(6) “Fund” means the Safe Drinking Water State Revolving
23Fund created by Section 116760.30.

24(7) “Financing” means financial assistance awarded under this
25chapter, including loans, refinancing, installment sales agreements,
26purchase of debt, loan guarantees for municipal revolving funds,
27and grants.

28(8) “Matching funds” means state money that equals that
29percentage of federal contributions required by the federal act to
30be matched with state funds.

31(9) “Project” means cost-effective facilities for the construction,
32improvement, or rehabilitation of a public water system. It also
33may include the planning and design of the facilities, annexation
34or consolidation of water systems, source water assessments,
35source water protection, and other activities specified under the
36federal act.

37(10) “Public agency” means any city, county, city and county,
38whether general law or chartered, district, joint powers authority,
39or other political subdivision of the state, that owns or operates a
40public water system.

P110  1(11) “Public water system” or “public water supply system”
2means a system for the provision to the public of water for human
3 consumption, as defined in Chapter 4 (commencing with Section
4116270).

5(12) “Safe drinking water standards” means those standards
6established pursuant to Chapter 4 (commencing with Section
7116270), as they may now or hereafter be amended.

8(13) “Severely disadvantaged community” means a community
9with a median household income of less than 60 percent of the
10statewide average.

11(14) “Small community water system” has the meaning set forth
12in Section 116275.

13(15) “Supplier” means any person, partnership, corporation,
14association, public agency, or other entity that owns or operates
15a public water system.

16(b) This section shall become operative on January 1 of the next
17calendar year occurring after the board provides notice to the
18Legislature and the Secretary of State and posts notice on its
19Internet Web site that the board has adopted a policy handbook
20pursuant to Section 116760.43.

end insert
21begin insert

begin insertSEC. 69.end insert  

end insert

begin insertSection 116760.30 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
22amended to read:end insert

23

116760.30.  

(a) There is hereby created in the State Treasury
24the Safe Drinking Water State Revolving Fund for the purpose of
25implementing this chapter, and, notwithstanding Section 13340 of
26the Government Code, the fund is hereby continuously
27appropriated, without regard to fiscal years, to the department to
28provide, from moneys available for this purpose, grants or
29revolving fund loans for the design and construction of projects
30for public water systems that will enable suppliers to meet safe
31drinking water standards. The department shall be responsible for
32administering the fund.

33(b) Notwithstanding Section 10231.5 of the Government Code,
34the department shall report at least once every two years to the
35policy and budget committees of the Legislature on the
36 implementation of this chapter and expenditures from the fund.
37The report shall describe the numbers and types of projects funded,
38the reduction in risks to public health from contaminants in
39drinking water provided through the funding of the projects, and
40the criteria used by the department to determine funding priorities.
P111  1Commencing with reports submitted on or after January 1, 2013,
2the report shall include the results of the United States
3Environmental Protection Agency’s most recent survey of the
4infrastructure needs of California’s public water systems, the
5amount of money available through the fund to finance those needs,
6the total dollar amount of all funding agreements executed pursuant
7to this chapter since the date of the previous report, the fund
8utilization rate, the amount of unliquidated obligations, and the
9total dollar amount paid to funding recipients since the previous
10report.

11(c) Notwithstanding any other law, the Controller may use the
12moneys in the Safe Drinking Water State Revolving Fund for loans
13to the General Fund as provided in Sections 16310 and 16381 of
14the Government Code. However, interest shall be paid on all
15moneys loaned to the General Fund from the Safe Drinking Water
16State Revolving Fund. Interest payable shall be computed at a rate
17determined by the Pooled Money Investment Board to be the
18current earning rate of the fund from which loaned. This
19subdivision does not authorize any transfer that will interfere with
20the carrying out of the object for which the Safe Drinking Water
21State Revolving Fund was created.

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. 70.end insert  

end insert

begin insertSection 116760.30 is added to the end insertbegin insertHealth and Safety
27Code
end insert
begin insert, to read:end insert

begin insert
28

begin insert116760.30.end insert  

(a) There is hereby created in the State Treasury
29the Safe Drinking Water State Revolving Fund for the purpose of
30implementing this chapter, and, notwithstanding Section 13340 of
31the Government Code, moneys in the fund are hereby continuously
32appropriated, without regard to fiscal years, to the board for
33expenditure in accordance with this chapter.

34(b) Notwithstanding Section 10231.5 of the Government Code,
35the board shall, at least once every two years, post information
36on its Internet Web site and send a link of the Internet Web site to
37the policy and budget committees of the Legislature regarding the
38implementation of this chapter and expenditures from the fund.
39The information posted on the board’s Internet Web site shall
40describe the numbers and types of projects funded, the reduction
P112  1in risks to public health from contaminants in drinking water
2provided through the funding of the projects, and the criteria used
3by the board to determine funding priorities. The Internet Web site
4posting shall include the results of the United States Environmental
5Protection Agency’s most recent survey of the infrastructure needs
6of California’s public water systems, the amount of money
7available through the fund to finance those needs, the total dollar
8amount of all funding agreements executed pursuant to this chapter
9since the date of the previous report or Internet Web site post, the
10fund utilization rate, the amount of unliquidated obligations, and
11the total dollar amount paid to funding recipients since the previous
12report or Internet Web site post.

13(c) This section shall become operative on July 1, 2014.

end insert
14begin insert

begin insertSEC. 71.end insert  

end insert

begin insertSection 116760.39 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
15amended to read:end insert

16

116760.39.  

begin insert(a)end insertbegin insertend insertIn addition to the actions described in Section
17116760.40, the department may, to implement the Safe Drinking
18Water State Revolving Fund, improve access to financial assistance
19for small community water systems and not-for-profit nontransient
20noncommunity water systems serving severely disadvantaged
21communities by doing both of the following:

begin delete

22(a)

end delete

23begin insert(1)end insert Working to establish a payment process pursuant to which
24the recipient of financial assistance would receive funds within 30
25days of the date on which the department receives a complete
26project payment request, unless the department, within that 30-day
27period, determines that the project payment would not be in
28accordance with the terms of the program guidelines.

begin delete

29(b)

end delete

30begin insert(2)end insert Investigating the use of wire transfers or other appropriate
31payment procedures to expedite project payments.

begin insert

32(b) 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. 72.end insert  

end insert

begin insertSection 116760.39 is added to the end insertbegin insertHealth and Safety
37Code
end insert
begin insert, to read:end insert

begin insert
38

begin insert116760.39.end insert  

(a) In addition to the actions described in Section
39116760.40, the board may, to implement the Safe Drinking Water
40State Revolving Fund, improve access to financial assistance for
P113  1small community water systems and not-for-profit nontransient
2noncommunity water systems serving severely disadvantaged
3communities by doing both of the following:

4(1) 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 board receives a complete project
7payment request, unless the board, within that 30-day period,
8determines that the project payment would not be in accordance
9with the terms of the program guidelines.

10(2) Investigating the use of wire transfers or other appropriate
11payment procedures to expedite project payments.

12(b) This section shall become operative on July 1, 2014.

end insert
13begin insert

begin insertSEC. 73.end insert  

end insert

begin insertSection 116760.40 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
14amended to read:end insert

15

116760.40.  

begin insert(a)end insertbegin insertend insertThe department may undertake any of the
16following actions to implement the Safe Drinking Water State
17Revolving Fund:

begin delete

18(a)

end delete

19begin insert(1)end insert Enter into agreements with the federal government for
20federal contributions to the fund.

begin delete

21(b)

end delete

22begin insert(2)end insert Accept federal contributions to the fund.

begin delete

23(c)

end delete

24begin insert(3)end insert Use moneys in the fund for the purposes permitted by the
25federal act.

begin delete

26(d)

end delete

27begin insert(4)end insert Provide for the deposit of matching funds and other available
28and necessary moneys into the fund.

begin delete

29(e)

end delete

30begin insert(5)end insert Make requests, on behalf of the state, for deposit into the
31fund of available federal moneys under the federal act.

begin delete

32(f)

end delete

33begin insert(6)end insert Determine, on behalf of the state, that public water systems
34that receive financial assistance from the fund will meet the
35requirements of, and otherwise be treated as required by, the federal
36act.

begin delete

37(g)

end delete

38begin insert(7)end insert Provide for appropriate audit, accounting, and fiscal
39management services, plans, and reports relative to the fund.

begin delete

40(h)

end delete

P114  1begin insert(8)end insert Take additional incidental action as may be appropriate for
2adequate administration and operation of the fund.

begin delete

3(i)

end delete

4begin insert(9)end insert Enter into an agreement with, and accept matching funds
5from, a public water system. A public water system that seeks to
6enter into an agreement with the department and provide matching
7funds pursuant to this subdivision shall provide to the department
8evidence of the availability of those funds in the form of a written
9resolution, or equivalent document, from the public water system
10before it requests a preliminary loan commitment.

begin delete

11(j)

end delete

12begin insert(10)end insert Charge public water systems that elect to provide matching
13 funds a fee to cover the actual cost of obtaining the federal funds
14pursuant to Section 1452(e) of the federal act (42 U.S.C. Sec.
15300j-12) and to process the loan application. The fee shall be
16waived by the department if sufficient funds to cover those costs
17are available from other sources.

begin delete

18(k)

end delete

19begin insert(11)end insert Use money returned to the fund under Section 116761.85
20and any other source of matching funds, if not prohibited by statute,
21as matching funds for the federal administrative allowance under
22Section 1452(g) of the federal act (42 U.S.C. Sec. 300j-12).

begin delete

23(l)

end delete

24begin insert(12)end insert Establish separate accounts or subaccounts as required or
25allowed in the federal act and related guidance, for funds to be
26used for administration of the fund and other purposes. Within the
27fund the department shall establish the following accounts,
28including, but not limited to:

begin delete

29(1)

end delete

30begin insert(A)end insert A fund administration account for state expenses related to
31administration of the fund pursuant to Section 1452(g)(2) of the
32federal act.

begin delete

33(2)

end delete

34begin insert(B)end insert A water system reliability account for department expenses
35pursuant to Section 1452(g)(2)(A), (B), (C), or (D) of the federal
36act.

begin delete

37(3)

end delete

38begin insert(C)end insert A source protection account for state expenses pursuant to
39Section 1452(k) of the federal act.

begin delete

40(4)

end delete

P115  1begin insert(D)end insert A small system technical assistance account for department
2expenses pursuant to Section 1452(g)(2) of the federal act.

begin delete

3(5)

end delete

4begin insert(E)end insert A state revolving loan account pursuant to Section
51452(a)(2) of the federal act.

begin delete

6(6)

end delete

7begin insert(F)end insert A wellhead protection account established pursuant to
8Section 1452(a)(2) of the federal act.

begin delete

9(m)

end delete

10begin insert(13)end insert Deposit federal funds for administration and other purposes
11into separate accounts or subaccounts as allowed by the federal
12act.

begin delete

13(n)

end delete

14begin insert(14)end insert Determine, on behalf of the state, whether sufficient
15progress is being made toward compliance with the enforceable
16deadlines, goals, and requirements of the federal act and the
17California Safe Drinking Water Act, Chapter 4 (commencing with
18Section 116270).

begin delete

19(o)

end delete

20begin insert(15)end insert To the extent permitted under federal law, including, but
21not limited to, Section 1452(a)(2) and (f)(4) of the federal Safe
22Drinking Water Act (42 U.S.C. Sec. 300j-12(a)(2) and (f)(4)), use
23any and all amounts deposited in the fund, including, but not
24limited to, loan repayments and interest earned on the loans, as a
25source of reserve and security for the payment of principal and
26interest on revenue bonds, the proceeds of which are deposited in
27the fund.

begin delete

28(p)

end delete

29begin insert(16)end insert Request the Infrastructure and Economic Development
30Bank (I-Bank), established under Chapter 2 (commencing with
31Section 63021) of Division 1 of Title 6.7 of the Government Code,
32to issue revenue bonds, enter into agreements with the I-Bank, and
33take all other actions necessary or convenient for the issuance and
34sale of revenue bonds pursuant to Article 6.3 (commencing with
35Section 63048.55) of Chapter 2 of Division 1 of Title 6.7 of the
36Government Code. The purpose of the bonds is to augment the
37fund.

begin insert

38(b) This section shall become inoperative on July 1, 2014, and,
39as of January 1, 2015, is repealed, unless a later enacted statute,
P116  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. 74.end insert  

end insert

begin insertSection 116760.40 is added to the end insertbegin insertHealth and Safety
4Code
end insert
begin insert, to read:end insert

begin insert
5

begin insert116760.40.end insert  

(a) The board may undertake any of the following
6actions to implement the Safe Drinking Water State Revolving
7Fund:

8(1) Enter into agreements with the federal government for
9federal contributions to the fund.

10(2) Accept federal contributions to the fund.

11(3) Use moneys in the fund for the purposes permitted by the
12federal act.

13(4) Provide for the deposit of matching funds and other available
14and necessary moneys into the fund.

15(5) Make requests, on behalf of the state, for deposit into the
16fund of available federal moneys under the federal act.

17(6) Determine, on behalf of the state, that public water systems
18that receive financial assistance from the fund will meet the
19requirements of, and otherwise be treated as required by, the
20federal act.

21(7) Provide for appropriate audit, accounting, and fiscal
22management services, plans, and reports relative to the fund.

23(8) Take additional incidental action as may be appropriate for
24adequate administration and operation of the fund.

25(9) Enter into an agreement with, and accept matching funds
26from, a public water system.

27(10) Charge public water systems that elect to provide matching
28funds a fee to cover the actual cost of obtaining the federal funds
29pursuant to Section 1452(e) of the federal act (42 U.S.C. Sec.
30300j-12) and to process the loan application. The fee shall be
31waived by the board if sufficient funds to cover those costs are
32available from other sources.

33(11) Use any source of matching funds, if not prohibited by
34statute, as matching funds for the federal administrative allowance
35under Section 1452(g) of the federal act (42 U.S.C. Sec. 300j-12).

36(12) Establish separate accounts or subaccounts as required
37or allowed in the federal act and related guidance, for funds to be
38used for administration of the fund and other purposes. Within the
39fund, the board may modify existing accounts and may establish
P117  1other accounts as the board deems appropriate or necessary for
2proper administration of the chapter.

3(13) Deposit federal funds for administration and other purposes
4into separate accounts or subaccounts, as allowed by the federal
5act.

6(14) Determine, on behalf of the state, whether sufficient
7progress is being made toward compliance with the enforceable
8deadlines, goals, and requirements of the federal act and the
9California Safe Drinking Water Act, Chapter 4 (commencing with
10Section 116270).

11(15) To the extent permitted under federal law, including, but
12not limited to, Section 1452(a)(2) and (f)(4) of the federal Safe
13Drinking Water Act (42 U.S.C. Sec. 300j-12(a)(2) and (f)(4)), use
14any and all amounts deposited in the fund, including, but not
15limited to, loan repayments and interest earned on the loans, as a
16source of reserve and security for the payment of principal and
17interest on revenue bonds, the proceeds of which are deposited in
18the fund.

19(16) Request the Infrastructure and Economic Development
20Bank (I-Bank), established under Chapter 2 (commencing with
21Section 63021) of Division 1 of Title 6.7 of the Government Code,
22to issue revenue bonds, enter into agreements with the I-Bank, and
23take all other actions necessary or convenient for the issuance and
24sale of revenue bonds pursuant to Article 6.3 (commencing with
25Section 63048.55) of Chapter 2 of Division 1 of Title 6.7 of the
26Government Code. The purpose of the bonds is to augment the
27fund.

28(17) Engage in the transfer of capitalization grant funds, as
29authorized by Section 35.3530(c) of Title 40 of the Code of Federal
30Regulations and reauthorized by Public Law 109-54, to the extent
31set forth in an Intended Use Plan, that shall be subject to approval
32by the board.

33(18) Cross-collateralize revenue bonds with the State Water
34Pollution Control Revolving Fund created pursuant to Section
3513477 of the Water Code, as authorized by Section 35.3530(d) of
36Title 40 of the Code of Federal Regulations.

37(b) This section shall become operative on July 1, 2014.

end insert
38begin insert

begin insertSEC. 75.end insert  

end insert

begin insertSection 116760.42 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
39amended to read:end insert

P118  1

116760.42.  

(a) The department may enter into an agreement
2with the federal government for federal contributions to the fund
3only if both of the following apply:

4(1) The state has obtained or appropriated any required state
5matching funds.

6(2) The department is prepared to commit to expenditure of any
7minimum amount in the fund in the manner required by the federal
8act.

9(b) begin deleteAny end deletebegin insertAn end insertagreement between the department and the federal
10government shall contain those provisions, terms, and conditions
11required by the federal act, and any implementing federal rules,
12regulations, guidelines, and policies, including, but not limited to,
13agreement to the following:

14(1) Moneys in the fund shall be expended in an expeditious and
15timely manner.

16(2) All moneys in the fund as a result of federal capitalization
17grants shall be expended to ensure sufficient progress is being
18made toward compliance with the enforceable deadlines, goals,
19and requirements of the federal act, including any applicable
20compliance deadlines.

21(3) Federal funds deposited in the special accounts are
22continuously appropriated for use by the department as allowed
23by federal law.begin delete Any unexpendedend deletebegin insert Unexpendedend insert funds in the special
24accounts shall be carried over into subsequent years for use by the
25department.

begin insert

26(c) 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. 76.end insert  

end insert

begin insertSection 116760.42 is added to the end insertbegin insertHealth and Safety
31Code
end insert
begin insert, to read:end insert

begin insert
32

begin insert116760.42.end insert  

(a) The board may enter into an agreement with
33the federal government for federal contributions to the fund only
34if the board is prepared to commit to expenditure of any minimum
35amount in the fund in the manner required by the federal act.

36(b)  An agreement between the board and the federal government
37shall contain those provisions, terms, and conditions required by
38the federal act, and implementing federal rules, regulations,
39guidelines, and policies, including, but not limited to, agreement
40to the following:

P119  1(1) Moneys in the fund shall be expended in an expeditious and
2timely manner.

3(2) All moneys in the fund as a result of federal capitalization
4grants shall be expended to ensure sufficient progress is being
5made toward compliance with the enforceable deadlines, goals,
6and requirements of the federal act, including any applicable
7compliance deadlines.

8(3) Federal funds deposited in the special accounts are
9continuously appropriated for use by the board as allowed by
10federal law. Unexpended funds in the special accounts shall be
11carried over into subsequent years for use by the board.

12(4) This section shall become operative on July 1, 2014.

end insert
13begin insert

begin insertSEC. 77.end insert  

end insert

begin insertSection 116760.43 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
14amended to read:end insert

15

116760.43.  

(a) The department may adopt emergency
16regulations pursuant to Chapter 3.5 (commencing with Section
1711340) of Part 1 of Division 3 of Title 2 of the Government Code
18necessary or convenient to implement this chapter and to meet
19requirements pursuant to the federal act.

20(b) The adoption of any emergency regulations that are filed
21with the Office of Administrative Law within 18 months of the
22effective date of this act shall be deemed to be an emergency and
23necessary for the immediate preservation of the public peace, health
24and safety, or general welfare.

begin insert

25(c) This section shall become inoperative on July 1, 2014, and,
26as of January 1, 2015, is repealed, unless a later enacted statute,
27that becomes operative on or before January 1, 2015, deletes or
28extends the dates on which it becomes inoperative and is repealed.

end insert
29begin insert

begin insertSEC. 78.end insert  

end insert

begin insertSection 116760.43 is added to the end insertbegin insertHealth and Safety
30Code
end insert
begin insert, to read:end insert

begin insert
31

begin insert116760.43.end insert  

(a) The board shall implement this chapter
32pursuant to the adoption of a policy handbook that is not subject
33to the requirements of Chapter 3.5 (commencing with Section
3411340) of Part 1 of Division 3 of the Government Code. The policy
35handbook shall be posted on the board’s Internet Web site.

36(b) Any regulations that have been promulgated pursuant to
37this chapter are repealed effective upon adoption by the board of
38the policy handbook.

39(c) This section shall become operative on July 1, 2014.

end insert
P120  1begin insert

begin insertSEC. 79.end insert  

end insert

begin insertSection 116760.44 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
2amended to read:end insert

3

116760.44.  

begin insert(a)end insertbegin insertend insertThe department may deposit administrative
4fees and charges paid by public water systems and other available
5and necessary money into the administrative account of the fund.

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. 80.end insert  

end insert

begin insertSection 116760.44 is added to the end insertbegin insertHealth and Safety
11Code
end insert
begin insert, to read:end insert

begin insert
12

begin insert116760.44.end insert  

(a) The board may deposit administrative fees and
13charges paid by public water systems and other available and
14necessary money into an account of the fund.

15(b) This section shall become operative on July 1, 2014.

end insert
16begin insert

begin insertSEC. 81.end insert  

end insert

begin insertSection 116760.46 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
17amended to read:end insert

18

116760.46.  

(a) The Safe Drinking Water Small Community
19Emergency Grant Fund is hereby created in the State Treasury.

20(b) The following moneys shall be deposited in the grant fund:

21(1) Moneys transferred to the grant fund pursuant to subdivision
22(c).

23(2) Notwithstanding Section 16475 of the Government Code,
24any interest earned upon the moneys deposited in the grant fund.

25(c) (1) For any loans made for projects meeting the eligibility
26criteria under Section 116760.50, the department may assess an
27annual charge to be deposited in the grant fund in lieu of interest
28that would otherwise be charged.

29(2) Any amounts collected under this subdivision shall be
30deposited in the grant fund. Not more than fifty million dollars
31($50,000,000) shall be deposited in the grant fund.

32(3) The charge authorized by this subdivision may be applied
33at any time during the term of the financing and, once applied,
34shall remain unchanged.

35(4) The charge authorized by this subdivision shall not increase
36the financing repayment amount, as set forth in the terms and
37conditions imposed pursuant to this chapter.

38(d) (1) Moneys in the grant fund may be expended on grants
39for projects that meet the requirements stated in Section 116475
P121  1and that serve disadvantaged and severely disadvantaged
2communities.

3(2) For the purpose of approving grants, the department shall
4give priority to projects that serve severely disadvantaged
5communities.

6(3) Funds expended pursuant to this section shall be expended
7in a manner consistent with the federal EPA grant regulations
8established in Section 35.3530(b)(2) of Title 40 of the Code of
9Federal Regulations.

begin insert

10(e) This section shall become inoperative on July 1, 2014, and,
11as of January 1, 2015, is repealed, unless a later enacted statute,
12that becomes operative on or before January 1, 2015, deletes or
13extends the dates on which it becomes inoperative and is repealed.

end insert
14begin insert

begin insertSEC. 82.end insert  

end insert

begin insertSection 116760.46 is added to the end insertbegin insertHealth and Safety
15Code
end insert
begin insert, to read:end insert

begin insert
16

begin insert116760.46.end insert  

(a) The Safe Drinking Water Small Community
17Emergency Grant Fund is hereby created in the State Treasury.

18(b) The following moneys shall be deposited in the grant fund:

19(1) Moneys transferred to the grant fund pursuant to subdivision
20(c).

21(2) Notwithstanding Section 16475 of the Government Code,
22any interest earned upon the moneys deposited in the grant fund.

23(c) (1) For any financing made pursuant to this chapter, the
24board may assess an annual charge to be deposited in the grant
25fund in lieu of interest that would otherwise be charged.

26(2) Any amounts collected under this subdivision shall be
27deposited in the grant fund.

28(3) The charge authorized by this subdivision may be applied
29at any time during the term of the financing and, once applied,
30shall remain unchanged, unless the board determines that the
31application of the charge is any of the following:

32(A) No longer consistent with federal requirements regarding
33the fund.

34(B) No longer necessary.

35(C) Negatively affecting the board’s ability to fund projects that
36support the board’s goals as specified in this chapter.

37(4) If the board ceases collecting the charge before the financing
38repayment is complete, the board shall replace the charge with
39an identical interest rate.

P122  1(5) The charge authorized by this subdivision shall not increase
2the financing repayment amount, as set forth in the terms and
3conditions imposed pursuant to this chapter.

4(d) (1) Moneys in the grant fund may be expended on grants
5for projects that meet the requirements of this chapter and that
6serve disadvantaged and severely disadvantaged communities or
7address emergencies experienced by small community water
8systems.

9(2) For the purpose of approving grants, the board shall give
10priority to projects that serve severely disadvantaged communities.

11(3) Funds expended pursuant to this section shall be expended
12in a manner consistent with the federal EPA capitalization grant
13requirements established in Section 35.3530(b)(2) of Title 40 of
14the Code of Federal Regulations.

15(e) This section shall become operative on July 1, 2014.

end insert
16begin insert

begin insertSEC. 83.end insert  

end insert

begin insertSection 116760.50 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
17amended to read:end insert

18

116760.50.  

begin insert(a)end insertbegin insertend insertThe department shall establish criteria that
19shall be met for projects to be eligible for consideration for funding
20under this chapter. The criteria shall include all of the following:

begin delete

21(a)

end delete

22begin insert(1)end insert All preliminary design work for a defined project that will
23enable the applicant to supply water that meets safe drinking water
24standards, including a cost estimate for the project, shall be
25completed.

begin delete

26(b)

end delete

27begin insert(2)end insert A legal entity shall exist that has the authority to enter into
28contracts and incur debt on behalf of the community to be served
29and owns the public water system or has the right to operate the
30public water system under a lease with a term of at least 20 years,
31unless otherwise authorized by the department. If the proposed
32project is funded by a loan under this chapter, the department may
33require the applicant to secure a lease for the full term of the loan
34if the loan exceeds 20 years.

begin delete

35(c)

end delete

36begin insert(3)end insert The applicant shall hold all necessary water rights.

begin delete

37(d)

end delete

38begin insert(4)end insert The applicant shall have completed any review required
39pursuant to the California Environmental Quality Act (Division
4013 (commencing with Section 21000) of the Public Resources
P123  1Code) and the guidelines adopted pursuant thereto, and have
2included plans for compliance with that act in its preliminary plans
3for the project.

begin delete

4(e)

end delete

5begin insert(5)end insert The applicant has assembled sufficient financial data to
6establish its ability to complete the proposed project and to
7establish the amount of debt financing it can undertake.

begin insert

8(b) 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. 84.end insert  

end insert

begin insertSection 116760.50 is added to the end insertbegin insertHealth and Safety
13Code
end insert
begin insert, to read:end insert

begin insert
14

begin insert116760.50.end insert  

(a) The board shall establish eligibility criteria
15for funding pursuant to this chapter that includes all of the
16following:

17(1) All preliminary design work for a defined project that will
18enable the applicant to supply water that meets safe drinking water
19standards, including a cost estimate for the project, shall be
20completed.

21(2) A legal entity shall exist that has the authority to enter into
22contracts and incur debt on behalf of the community to be served
23and owns the public water system or has the right to operate the
24public water system for at least the term of the financing
25agreement.

26(3) The applicant shall hold all necessary water rights.

27(4) The applicant shall have completed any review required
28pursuant to the California Environmental Quality Act (Division
2913 (commencing with Section 21000) of the Public Resources
30Code) and the guidelines adopted pursuant thereto, and have
31included plans for compliance with that act in its preliminary plans
32for the project.

33(5) The applicant shall have assembled sufficient financial data
34to establish its ability to complete the proposed project and to
35establish the amount of debt financing it can undertake.

36(b) 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
P124  1begin insert

begin insertSEC. 85.end insert  

end insert

begin insertSection 116760.50 is added to the end insertbegin insertHealth and Safety
2Code
end insert
begin insert, to read:end insert

begin insert
3

begin insert116760.50.end insert  

(a) The board shall establish eligibility criteria
4for project financing pursuant to this chapter that shall be
5consistent with federal requirements.

6(b) This section shall become operative on January 1 of the next
7calendar year occurring after the board provides notice to the
8Legislature and the Secretary of State and posts notice on its
9Internet Web site that the board has adopted a policy handbook
10pursuant to Section 116760.43.

end insert
11begin insert

begin insertSEC. 86.end insert  

end insert

begin insertSection 116760.55 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
12amended to read:end insert

13

116760.55.  

(a) For purposes of the department considering
14eligibility for grant funding for a planning project, a legal entity
15may apply on behalf of one or more public water systems serving
16disadvantaged or severely disadvantaged communities if all of the
17following requirements are met:

18(1) The legal entity has a signed agreement with each public
19water system for which it is applying for funding for a planning
20andbegin delete feasabilityend deletebegin insert feasibilityend insert study project that indicates that the public
21water system agrees to the joint application and that the legal entity
22is acting on behalf of, and in place of, the public water system.

23(2) The application is for 100 percent grant funding for a
24planning andbegin delete feasabilityend deletebegin insert feasibilityend insert project.

25(3) The planning and feasibility study project includes a study
26of the feasibility of consolidation, which may include expansion
27of service to communities not currently served by a public water
28system.

29(4) The applicant has demonstrated that the legal entity has the
30ability to complete the proposed planning project.

31(5) At least one of the project participating public water systems
32has a primary drinking water standard violation and is on the
33project priority list.

34(b) For purposes of this section, “legal entity” means an entity
35that is duly formed and operating under the laws of this state.

begin insert

36(c) This section shall become inoperative on July 1, 2014, and,
37as of January 1, 2015, is repealed, unless a later enacted statute,
38that becomes operative on or before January 1, 2015, deletes or
39extends the dates on which it becomes inoperative and is repealed.

end insert
P125  1begin insert

begin insertSEC. 87.end insert  

end insert

begin insertSection 116760.55 is added to the end insertbegin insertHealth and Safety
2Code
end insert
begin insert, to read:end insert

begin insert
3

begin insert116760.55.end insert  

(a) For purposes of the board considering
4eligibility for grant or principal forgiveness funding for a planning
5project, a legal entity may apply on behalf of one or more public
6water systems serving disadvantaged or severely disadvantaged
7communities if all of the following requirements are met:

8(1) The legal entity has a signed agreement with each public
9water system for which it is applying for funding for a planning
10and feasibility study project that indicates that the public water
11system agrees to the joint application and that the legal entity is
12acting on behalf of, and in place of, the public water system.

13(2) The application is for 100 percent grant or principal
14 forgiveness funding for a planning and feasibility project.

15(3) The planning and feasibility study project includes a study
16of the feasibility of consolidation, which may include expansion
17of service to communities not currently served by a public water
18system.

19(4) The applicant has demonstrated that the legal entity has the
20ability to complete the proposed planning project.

21(5) At least one of the project participating public water systems
22has a primary drinking water standard violation and is on the
23project priority list.

24(b) For purposes of this section, “legal entity” means an entity
25that is duly formed and operating under the laws of this state.

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. 88.end insert  

end insert

begin insertSection 116760.60 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
32amended to read:end insert

33

116760.60.  

begin insert(a)end insertbegin insertend insertThe department shall notify suppliers that may
34be eligible for funding pursuant to this chapter of the purposes of
35this chapter and the regulations established by the department.

begin insert

36(b) This section shall become inoperative on July 1, 2014, and,
37as of January 1, 2015, is repealed, unless a later enacted statute,
38that becomes operative on or before January 1, 2015, deletes or
39extends the dates on which it becomes inoperative and is repealed.

end insert
P126  1begin insert

begin insertSEC. 89.end insert  

end insert

begin insertSection 116760.70 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
2amended to read:end insert

3

116760.70.  

(a) The department, after public notice and hearing,
4shall, from time to time, establish a priority list of proposed projects
5to be considered for funding under this chapter. In doing so, the
6department shall determine if improvement or rehabilitation of the
7public water system is necessary to provide pure, wholesome, and
8potable water in adequate quantity and at sufficient pressure for
9health, cleanliness, and other domestic purposes. The department
10shall establish criteria for placing public water systems on the
11priority list for funding that shall include criteria for priority list
12categories. Priority shall be given to projects that meet all of the
13following requirements:

14(1) Address the most serious risk to human health.

15(2) Are necessary to ensure compliance with requirements of
16Chapter 4 (commencing with Section 116270) including
17requirements for filtration.

18(3) Assist systems most in need on a per household basis
19according to affordability criteria.

20(b) The department may, in establishing a new priority list,
21merge those proposed projects from the existing priority list into
22the new priority list.

23(c) In establishing the priority list, the department shall consider
24the system’s implementation of an ongoing source water protection
25program or wellhead protection program.

26(d) In establishing the priority list categories and the priority
27for funding projects, the department shall carry out the intent of
28the Legislature pursuant to subdivisions (e) to (h), inclusive, of
29Section 116760.10 and do all of the following:

30(1) Give priority to upgrade an existing system to meet drinking
31water standards.

32(2) After giving priority pursuant to paragraph (1), consider
33whether the applicant has sought other funds when providing
34funding for a project to upgrade an existing system and to
35accommodate a reasonable amount of growth.

36(e) Consideration of an applicant’s eligibility for funding shall
37initially be based on the priority list in effect at the time the
38application is received and the project’s ability to proceed. If a
39new priority list is established during the time the application is
40under consideration, but before the applicant receives a letter of
P127  1commitment, the department may consider the applicant’s
2eligibility for funding based on either the old or new priority list.

3(f) The department may change the ranking of a specific project
4on the priority lists at any time following the publication of the
5list if information, that was not available at the time of the
6publication of the list, is provided that justifies the change in the
7ranking of the project.

8(g) The department shall provide one or more public hearings
9on the Intended Use Plan, the priority list, and the criteria for
10placing public water systems on the priority list. The department
11shall provide notice of the Intended Use Plan, criteria, and priority
12list not less than 30 days before the public hearing. The Intended
13Use Plan, criteria, and priority list shall not be subject to the
14requirements of Chapter 3.5 (commencing with Section 11340) of
15Part 1 of Division 3 of Title 2 of the Government Code. The
16department shall conduct duly noticed public hearings and
17workshops around the state to encourage the involvement and
18active input of public and affected parties, including, but not limited
19to, water utilities, local government, public interest, environmental,
20and consumer groups, public health groups, land conservation
21interests, health care providers, groups representing vulnerable
22populations, groups representing business and agricultural interests,
23and members of the general public, in the development and periodic
24updating of the Intended Use Plan and the priority list.

25(h) The requirements of this section do not constitute an
26adjudicatory proceeding as defined in Section 11405.20 of the
27Government Code and Section 11410.10 of the Government Code
28is not applicable.

begin insert

29(i) This section shall become inoperative on July 1, 2014, and,
30as of January 1, 2015, is repealed, unless a later enacted statute,
31that becomes operative on or before January 1, 2015, deletes or
32extends the dates on which it becomes inoperative and is repealed.

end insert
33begin insert

begin insertSEC. 90.end insert  

end insert

begin insertSection 116760.70 is added to the end insertbegin insertHealth and Safety
34Code
end insert
begin insert, to read:end insert

begin insert
35

begin insert116760.70.end insert  

(a) The board, after public notice and opportunity
36for comment, shall, from time to time, establish a priority list of
37proposed projects to be considered for funding under this chapter.
38In doing so, the board shall determine if improvement or
39rehabilitation of the public water system is necessary to provide
40pure, wholesome, and potable water in adequate quantity and at
P128  1sufficient pressure for health, cleanliness, and other domestic
2purposes. The board shall establish criteria for placing public
3water systems on the priority list for funding that shall include
4criteria for priority list categories. Priority shall be given to
5projects that meet all of the following requirements:

6(1) Address the most serious risk to human health.

7(2) Are necessary to ensure compliance with requirements of
8Chapter 4 (commencing with Section 116270) including
9requirements for filtration.

10(3) Assist systems most in need on a per household basis
11according to affordability criteria.

12(b) The board may, in establishing a new priority list, merge
13those proposed projects from the existing priority list into the new
14priority list.

15(c) In establishing the priority list, the board shall consider the
16system’s implementation of an ongoing source water protection
17program or wellhead protection program.

18(d) In establishing the priority list categories and the priority
19for funding projects, the board shall carry out the intent of the
20Legislature pursuant to subdivisions (f) to (i), inclusive, of Section
21116760.10 and do all of the following:

22(1) Give priority to upgrade an existing system to meet drinking
23water standards.

24(2) After giving priority pursuant to paragraph (1), consider
25whether the applicant has sought other funds when providing
26funding for a project to upgrade an existing system and to
27accommodate a reasonable amount of growth.

28(e) Consideration of an applicant’s eligibility for funding shall
29initially be based on the priority list in effect at the time the
30application is received and the project’s ability to proceed. If a
31new priority list is established during the time the application is
32under consideration, but before the applicant receives a letter of
33commitment, the board may consider the applicant’s eligibility for
34funding based on either the old or new priority list.

35(f) The board may change the ranking of a specific project on
36the priority lists at any time following the publication of the list if
37information, that was not available at the time of the publication
38of the list, is provided that justifies the change in the ranking of
39the project.

P129  1(g) The board shall provide one or more public hearings on the
2Intended Use Plan, the priority list, and the criteria for placing
3public water systems on the priority list. The board shall adopt an
4Intended Use Plan and provide notice of the Intended Use Plan,
5criteria, and priority list not less than 30 days before the adoption
6of the Intended Use Plan. The Intended Use Plan, criteria, and
7priority list shall not be subject to the requirements of Chapter 3.5
8(commencing with Section 11340) of Part 1 of Division 3 of Title
92 of the Government Code.

10(h) The requirements of this section do not constitute an
11adjudicatory proceeding as defined in Section 11405.20 of the
12Government Code and Section 11410.10 of the Government Code
13is not applicable.

14(i) 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. 91.end insert  

end insert

begin insertSection 116760.79 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
20amended to read:end insert

21

116760.79.  

begin insert(a)end insertbegin insertend insertApplications for funding under this chapter
22shall be made in the form and with the supporting material
23prescribed by the department.

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. 92.end insert  

end insert

begin insertSection 116760.79 is added to the end insertbegin insertHealth and Safety
29Code
end insert
begin insert, to read:end insert

begin insert
30

begin insert116760.79.end insert  

(a) Applications for funding under this chapter
31shall be made in the form and with the supporting material
32prescribed by the board.

33(b)  This section shall become operative on July 1, 2014, and
34is repealed on January 1 of the next calendar year occurring after
35the board provides notice to the Legislature and the Secretary of
36State and posts notice on its Internet Web site that the board has
37adopted a policy handbook pursuant to Section 116760.43.

end insert
38begin insert

begin insertSEC. 93.end insert  

end insert

begin insertSection 116760.80 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
39amended to read:end insert

P130  1

116760.80.  

(a) The department shall determine, based on
2applications received, whether a particular applicant meets the
3criteria to be eligible for consideration.

4(b) If the applicant does not meet the criteria, it may be
5considered for planning and preliminary engineering study funding.
6begin delete Applicantsend deletebegin insert An applicantend insert successfully completing a studybegin delete areend deletebegin insert isend insert
7 eligible for consideration for project design and construction
8funding afterbegin delete theirend deletebegin insert theend insert study is completed andbegin delete they haveend deletebegin insert it hasend insert met
9the criteria to be eligible for consideration for project design and
10construction funding.

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. 94.end insert  

end insert

begin insertSection 116760.80 is added to the end insertbegin insertHealth and Safety
16Code
end insert
begin insert, to read:end insert

begin insert
17

begin insert116760.80.end insert  

(a) The board shall determine, based on
18applications received, whether a particular applicant meets the
19criteria to be eligible for consideration.

20(b) If the applicant does not meet the criteria, it may be
21considered for planning and preliminary engineering study funding.
22An applicant successfully completing a study is eligible for
23consideration for project design and construction funding after
24the study is completed and it has met the criteria to be eligible for
25consideration for project design and construction funding.

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. 95.end insert  

end insert

begin insertSection 116760.90 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
32amended to read:end insert

33

116760.90.  

(a) The department shall not approve an application
34for funding unless the department determines that the proposed
35study or project is necessary to enable the applicant to meet safe
36drinking water standards, and is consistent with an adopted
37countywide plan, if any. The department may refuse to fund a
38study or project if it determines that the purposes of this chapter
39may more economically and efficiently be met by means other
40than the proposed study or project. The department shall not
P131  1approve an application for funding a project with a primary purpose
2to supply or attract future growth. The department may limit
3funding to costs necessary to enable suppliers to meet primary
4drinking water standards, as defined in Chapter 4 (commencing
5with Section 116270).

6(b) With respect to applications for funding of project design
7and construction, the department shall also determine all of the
8following:

9(1) Upon completion of the project, the applicant will be able
10to supply water that meets safe drinking water standards.

11(2) The project is cost-effective.

12(3) If the entire project is not to be funded under this chapter,
13the department shall specify which costs are eligible for funding.

14(c) In considering an application for funding a project that meets
15all other requirements of this chapter and regulations, the
16department shall not be prejudiced by the applicant initiating the
17projectbegin delete prior toend deletebegin insert beforeend insert the departmentbegin delete approvingend deletebegin insert approvesend insert the
18application for funding. Preliminary project costs that are otherwise
19eligible for funding pursuant to the provisions of this chapter shall
20not be ineligible because the costs were incurred by the applicant
21begin delete prior toend deletebegin insert beforeend insert the departmentbegin delete approvingend deletebegin insert approvesend insert the application
22for funding. Construction costs that are otherwise eligible for
23funding pursuant to the provisions of this chapter shall not be
24ineligible because the costs were incurred after the approval of the
25application by the department but prior to the department entering
26into a contract with the applicant pursuant to Section 116761.50.

begin insert

27(d) 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. 96.end insert  

end insert

begin insertSection 116760.90 is added to the end insertbegin insertHealth and Safety
32Code
end insert
begin insert, to read:end insert

begin insert
33

begin insert116760.90.end insert  

(a) The board shall not approve an application
34for funding unless the board determines that the proposed study
35or project is necessary to enable the applicant to meet safe drinking
36water standards, and is consistent with an adopted countywide
37plan, if any. The board may refuse to fund a study or project if it
38determines that the purposes of this chapter may more
39economically and efficiently be met by means other than the
40proposed study or project. The board shall not approve an
P132  1application for funding a project with a primary purpose to supply
2or attract future growth. The board may limit funding to costs
3necessary to enable suppliers to meet primary drinking water
4standards, as defined in Chapter 4 (commencing with Section
5116270).

6(b) With respect to applications for funding of project design
7and construction, the board shall also determine all of the
8following:

9(1) Upon completion of the project, the applicant will be able
10to supply water that meets safe drinking water standards.

11(2) The project is cost effective.

12(3) If the entire project is not to be funded under this chapter,
13the board shall specify which costs are eligible for funding.

14(c) In considering an application for funding a project that
15meets all other requirements of this chapter and regulations, the
16board shall not be prejudiced by the applicant initiating the project
17before the board approves the application for funding. Preliminary
18project costs that are otherwise eligible for funding pursuant to
19 the provisions of this chapter shall not be ineligible because the
20costs were incurred by the applicant before the board approves
21the application for funding. Construction costs that are otherwise
22eligible for funding pursuant to the provisions of this chapter shall
23not be ineligible because the costs were incurred after the approval
24of the application by the board, but before the board entering into
25a contract with the applicant pursuant to Section 116761.50.

26(d) 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. 97.end insert  

end insert

begin insertSection 116761 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
32amended to read:end insert

33

116761.  

begin insert(a)end insertbegin insertend insert Planning and preliminary engineering studies,
34project design, and construction costs eligible for funding under
35this chapter shall be established by the department and may include
36any of the following:

begin delete

37(a)

end delete

38begin insert(1)end insert Reasonable costs for the construction, improvement, or
39rehabilitation of facilities of the public water system, which may
40include water supply, treatment works, and all or part of a water
P133  1distribution system, if necessary to carry out the purposes of this
2chapter.

begin delete

3(b)

end delete

4begin insert(2)end insert Reasonable costs associated with the consolidation of water
5systems, including, but not limited to, reasonable facility fees,
6connection fees, or similar charges.

begin delete

7(c)

end delete

8begin insert(3)end insert Reasonable costs of purchasing water systems, water rights,
9or watershed lands.

begin delete

10(d)

end delete

11begin insert(4)end insert Operation and maintenance costs only to the extent they are
12used in the startup and testing of the completed project. All other
13operation and maintenance costs shall be the responsibility of the
14supplier and shall not be considered as part of the project costs.

begin delete

15(e)

end delete

16begin insert(5)end insert Reasonable costs of establishing eligibility for funding under
17this chapter that were incurred before the department entered into
18a commitment to fund the project under this chapter.

begin delete

19(f)

end delete

20begin insert(6)end insert The acquisition of real property or interests therein only if
21the acquisition is integral to a project, and as otherwise limited in
22the federal act.

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. 98.end insert  

end insert

begin insertSection 116761 is added to the end insertbegin insertHealth and Safety
28Code
end insert
begin insert, to read:end insert

begin insert
29

begin insert116761.end insert  

(a) Planning and preliminary engineering studies,
30project design, and construction costs eligible for funding under
31this chapter shall be established by the board and may include
32any of the following:

33(1) Reasonable costs for the construction, improvement, or
34rehabilitation of facilities of the public water system, which may
35include water supply, treatment works, and all or part of a water
36distribution system, if necessary to carry out the purposes of this
37chapter.

38(2) Reasonable costs associated with the consolidation of water
39systems, including, but not limited to, reasonable facility fees,
40connection fees, or similar charges.

P134  1(3) Reasonable costs of purchasing water systems, water rights,
2or watershed lands.

3(4) Operation and maintenance costs only to the extent they are
4used in the startup and testing of the completed project. All other
5operation and maintenance costs shall be the responsibility of the
6supplier and shall not be considered as part of the project costs.

7(5) Reasonable costs of establishing eligibility for funding under
8this chapter that were incurred before the board entered into a
9commitment to fund the project under this chapter.

10(6) The acquisition of real property or interests therein only if
11the acquisition is integral to a project, and as otherwise limited
12in the federal act.

13(b) This section shall become operative on July 1, 2014, and is
14repealed as of January 1 of the next calendar year occurring after
15the board provides notice to the Legislature and the Secretary of
16State and posts notice on its Internet Web site that the board has
17adopted a policy handbook pursuant to Section 116760.43.

end insert
18begin insert

begin insertSEC. 99.end insert  

end insert

begin insertSection 116761.20 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
19amended to read:end insert

20

116761.20.  

(a) Planning and preliminary engineering studies,
21project design, and construction costs incurred by community and
22not-for-profit noncommunity public water systems may be funded
23under this chapter by loans, and, if these systems are owned by
24public agencies or private not-for-profit water companies, by grants
25or a combination of grants and loans.

26(b) (1) The department shall determine what portion of the full
27costs the public agency or private not-for-profit water company is
28capable of repaying and authorize funding in the form of a loan
29for that amount. The department shall authorize a grant only to the
30extent the department finds the public agency or not-for-profit
31water company is unable to repay the full costs of a loan.

32(2) Notwithstanding any other provision of this chapter, a small
33community water system or nontransient noncommunity water
34system that is owned by a public agency or a private not-for-profit
35water company and serving a severely disadvantaged community,
36is deemed to have no ability to repay a loan.

37(c) At the request of the department, the Public Utilities
38Commission shall submit comments concerning the ability of
39suppliers, subject to its jurisdiction, to finance the project from
40other sources and to repay the loan.

begin insert

P135  1(d) This section shall become inoperative on July 1, 2014, and,
2as of January 1, 2015, is repealed, unless a later enacted statute,
3that becomes operative on or before January 1, 2015, deletes or
4extends the dates on which it becomes inoperative and is repealed.

end insert
5begin insert

begin insertSEC. 100.end insert  

end insert

begin insertSection 116761.20 is added to the end insertbegin insertHealth and Safety
6Code
end insert
begin insert, to read:end insert

begin insert
7

begin insert116761.20.end insert  

(a) Planning and preliminary engineering studies,
8project design, and construction costs incurred by community and
9not-for-profit noncommunity public water systems may be funded
10under this chapter by loans or other repayable financing, and, if
11these systems are owned by public agencies or private
12not-for-profit water companies, by grants, principal forgiveness,
13or a combination of grants and loans or other financial assistance.

14(b) (1) The board shall determine what portion of the full costs
15the public agency or private not-for-profit water company is
16capable of repaying and authorize funding in the form of a loan
17or other repayable financing for that amount. The board shall
18authorize a grant or principal forgiveness only to the extent the
19board finds the public agency or not-for-profit water company is
20unable to repay the full costs of the financing.

21(2) Notwithstanding any other provision of this chapter, a small
22community water system or nontransient noncommunity water
23system that is owned by a public agency or a private not-for-profit
24water company and serving a severely disadvantaged community,
25is deemed to have no ability to repay any financing.

26(c) At the request of the board, the Public Utilities Commission
27shall submit comments concerning the ability of suppliers, subject
28to its jurisdiction, to finance the project from other sources and
29to repay the financing.

30(d) This section shall become operative on July 1, 2014.

end insert
31begin insert

begin insertSEC. 101.end insert  

end insert

begin insertSection 116761.21 of the end insertbegin insertHealth and Safety Codeend insert
32begin insert is amended to read:end insert

33

116761.21.  

begin insert(a)end insertbegin insertend insertNot more than 30 percent and not less than 15
34percent, provided that there are projects eligible for funding as
35prescribed in Section 116760.70, of the total amount deposited in
36the fund may be expended for grants. This amount shall be limited
37to disadvantaged communities specified in Section 1452(d) of the
38federal act (42 U.S.C.A. Sec. 300j-12).

begin insert

39(b) This section shall become inoperative on July 1, 2014, and,
40as of January 1, 2015, is repealed, unless a later enacted statute,
P136  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. 102.end insert  

end insert

begin insertSection 116761.22 of the end insertbegin insertHealth and Safety Codeend insert
4begin insert is amended to read:end insert

5

116761.22.  

begin insert(a)end insertbegin insertend insertLoans for project design and construction shall
6be repaid over a term not longer than the useful life of the project
7constructed or 20 years, whichever is shorter, except as provided
8in the federal act.

begin insert

9(b) This section shall become inoperative on July 1, 2014, and,
10as of January 1, 2015, is repealed, unless a later enacted statute,
11that becomes operative on or before January 1, 2015, deletes or
12extends the dates on which it becomes inoperative and is repealed.

end insert
13begin insert

begin insertSEC. 103.end insert  

end insert

begin insertSection 116761.23 of the end insertbegin insertHealth and Safety Codeend insert
14begin insert is amended to read:end insert

15

116761.23.  

(a) The maximum amount of a planning grant
16permitted under this chapter for each participating public water
17system’s share of the costs of the planning, engineering studies,
18environmental documentation, and design of a single project shall
19be no more than five hundred thousand dollars ($500,000).

20(b) Unless the department approves an increase pursuant to this
21subdivision, the maximum amount of a construction grant award
22authorized under this chapter to each participating public water
23system for its share of the cost of the construction of a single
24project shall be no more than three million dollars ($3,000,000).
25The department may approve an increase in the maximum amount
26for a construction grant award authorized under this chapter so
27that the maximum amount of the construction grant award does
28not exceed ten million dollars ($10,000,000) only if the department
29makes all of the following findings:

30(1) A public water system that serves a disadvantaged
31community has a defined project need that exceeds the maximum
32grant amount of three million dollars ($3,000,000).

33(2) The defined project has been bypassed in at least one funding
34cycle due to a lack of funds.

35(3) The defined project is eligible for funding pursuant to the
36program regulations.

37(4) The defined project represents the highest public health risk
38among unfunded projects, as determined by the department
39according to its standard criteria.

P137  1(c) Total funding under this article for planning, engineering
2studies, environmental documentation, project design, and
3construction costs of a single project, whether in the form of a loan
4or a grant, or both, shall be determined by an assessment of
5affordability using criteria established by the department.

6(d) Subject to all other limitations of this chapter, a small
7community water system or nontransient noncommunity water
8system, owned by a public agency or private not-for-profit water
9company, serving severely disadvantaged communities shall be
10eligible to receive up to 100 percent of eligible project costs in the
11form of a grant, to the extent the system cannot afford a loan as
12determined by the department pursuant to Section 116761.20.

13(e) Subject to the availability of funds and the applicant’s ability
14to repay, an applicant may receive up to the full cost of the project
15in the form of a loan bearing interest at the rate established pursuant
16to subdivision (a) of Section 116761.65.

begin insert

17(f) 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. 104.end insert  

end insert

begin insertSection 116761.23 is added to the end insertbegin insertHealth and Safety
22Code
end insert
begin insert, to read:end insert

begin insert
23

begin insert116761.23.end insert  

(a) The maximum amount of a planning grant
24permitted under this chapter for each participating public water
25system’s share of the costs of the planning, engineering studies,
26environmental documentation, and design of a single project shall
27be no more than five hundred thousand dollars ($500,000).

28(b) Unless the board approves an increase pursuant to this
29subdivision, the maximum amount of a construction grant award
30authorized under this chapter to each participating public water
31system for its share of the cost of the construction of a single
32project shall be no more than three million dollars ($3,000,000).
33The board may approve an increase in the maximum amount for
34a construction grant award authorized under this chapter so that
35the maximum amount of the construction grant award does not
36exceed ten million dollars ($10,000,000) only if the board makes
37all of the following findings:

38(1) A public water system that serves a disadvantaged
39community has a defined project need that exceeds the maximum
40grant amount of three million dollars ($3,000,000).

P138  1(2) The defined project has been bypassed in at least one funding
2cycle due to a lack of funds.

3(3) The defined project is eligible for funding pursuant to the
4program regulations.

5(4) The defined project represents the highest public health risk
6among unfunded projects, as determined by the board according
7to its standard criteria.

8(c) Total funding under this article for planning, engineering
9studies, environmental documentation, project design, and
10construction costs of a single project, whether in the form of a
11loan or a grant, or both, shall be determined by an assessment of
12affordability using criteria established by the board.

13(d) Subject to all other limitations of this chapter, a small
14community water system or nontransient noncommunity water
15system, owned by a public agency or private not-for-profit water
16company, serving severely disadvantaged communities shall be
17eligible to receive up to 100 percent of eligible project costs in the
18form of a grant, to the extent the system cannot afford a loan as
19determined by the board pursuant to Section 116761.20.

20(e) Subject to the availability of funds and the applicant’s ability
21to repay, an applicant may receive up to the full cost of the project
22in the form of a loan bearing interest at the rate established
23pursuant to subdivision (a) of Section 116761.65.

24(f) This section shall become operative on July 1, 2014, and is
25repealed as of January 1 of the next calendar year occurring after
26the board provides notice to the Legislature and the Secretary of
27State and posts notice on its Internet Web site that the board has
28 adopted a policy handbook pursuant to Section 116760.43.

end insert
29begin insert

begin insertSEC. 105.end insert  

end insert

begin insertSection 116761.24 of the end insertbegin insertHealth and Safety Codeend insert
30begin insert is amended to read:end insert

31

116761.24.  

begin insert(a)end insertbegin insertend insertNot less than 15 percent of the total amount
32deposited in the fund shall be expended for providing loans and
33grants to public water systems that regularly serve fewer than
3410,000 persons to the extent those funds can be obligated for
35eligible projects.

begin insert

36(b) This section shall become inoperative on July 1, 2014, and,
37as of January 1, 2015, is repealed, unless a later enacted statute,
38that becomes operative on or before January 1, 2015, deletes or
39extends the dates on which it becomes inoperative and is repealed.

end insert
P139  1begin insert

begin insertSEC. 106.end insert  

end insert

begin insertSection 116761.40 of the end insertbegin insertHealth and Safety Codeend insert
2begin insert is amended to read:end insert

3

116761.40.  

begin insert(a)end insertbegin insertend insertThe failure or inability of any public water
4system to receive funds under this chapter or any other loan or
5grant program or any delay in obtaining the funds shall not alter
6the obligation of the system to comply in a timely manner with all
7applicable drinking water standards and requirements of the
8California Safe Drinking Water Act or the federal act.

begin insert

9(b) This section shall become inoperative on July 1, 2014, and,
10as of January 1, 2015, is repealed, unless a later enacted statute,
11that becomes operative on or before January 1, 2015, deletes or
12extends the dates on which it becomes inoperative and is repealed.

end insert
13begin insert

begin insertSEC. 107.end insert  

end insert

begin insertSection 116761.40 is added to the end insertbegin insertHealth and Safety
14Code
end insert
begin insert, to read:end insert

begin insert
15

begin insert116761.40.end insert  

(a) The failure or inability of any public water
16system to receive funds under this chapter or any other financial
17assistance program or any delay in obtaining the funds shall not
18alter the obligation of the system to comply in a timely manner
19with all applicable drinking water standards and requirements of
20the California Safe Drinking Water Act or the federal act.

21(b) This section shall become operative on July 1, 2014.

end insert
22begin insert

begin insertSEC. 108.end insert  

end insert

begin insertSection 116761.50 of the end insertbegin insertHealth and Safety Codeend insert
23begin insert is amended to read:end insert

24

116761.50.  

(a) The department may enter into contracts with
25applicants for grants or loans for the purposes set forth in this
26chapter. Any contract entered into pursuant to this section shall
27include only terms and conditions consistent with this chapter and
28the regulations established under this chapter.

29(b) The contract shall include all of the following terms and
30conditions that are applicable:

31(1) An estimate of the reasonable cost of the project or study.

32(2) An agreement by the department to loan or grant, or loan
33and grant, the applicant an amount that equals the portion of the
34costs found by the department to be eligible for a state loan or
35grant. The agreement may provide for disbursement of funds during
36the progress of the study or construction, or following completion
37of the study or construction, as agreed by the parties.

38(3) An agreement by the applicant to proceed expeditiously with
39the project or study.

P140  1(4) An agreement by the applicant to commence operations of
2the project upon completion of the project, and to properly operate
3and maintain the project in accordance with the applicable
4provisions of law.

5(5) In the case of a loan, an agreement by the applicant to repay
6the state, over a period not to exceed the useful life of the project
7or 20 years, whichever is shorter, except as provided in the federal
8act, or in the case of a study, over a period not to exceed five years,
9all of the following:

10(A) The amount of the loan.

11(B) The administrative fee specified in subdivision (a) of Section
12116761.70.

13(C) Interest on the principal, which is the amount of the loan
14plus the administrative fee.

15(6) In the case of a grant, an agreement by the public agency or
16private not-for-profit water company to operate and maintain the
17water system for a period of 20 years, unless otherwise authorized
18by the department.

19(c) The contract may include any of the following terms and
20conditions:

21(1) An agreement by the supplier to adopt a fee structure that
22provides for the proper maintenance and operations of the project
23and includes a sinking fund for repair and replacement of the
24facilities in cases where appropriate. The fee structure shall also
25provide an acceptable dedicated source of revenue for the
26repayment of the amount of the loan, and the payment of
27administrative fees and interest.

28(2) If the entire project is not funded pursuant to this chapter,
29the department may include a provision requiring the applicant to
30share the cost of the project or obtain funding from other sources.

31(d) The department may require applicants to provide security
32for loan contracts.

begin insert

33(e) This section shall become inoperative on July 1, 2014, and,
34as of January 1, 2015, is repealed, unless a later enacted statute,
35that becomes operative on or before January 1, 2015, deletes or
36extends the dates on which it becomes inoperative and is repealed.

end insert
37begin insert

begin insertSEC. 109.end insert  

end insert

begin insertSection 116761.50 is added to the end insertbegin insertHealth and Safety
38Code
end insert
begin insert, to read:end insert

begin insert
39

begin insert116761.50.end insert  

(a) The board may enter into contracts with
40applicants for grants or loans for the purposes set forth in this
P141  1chapter. Any contract entered into pursuant to this section shall
2include only terms and conditions consistent with this chapter and
3the regulations established under this chapter.

4(b) The contract shall include all of the following terms and
5conditions that are applicable:

6(1) An estimate of the reasonable cost of the project or study.

7(2) An agreement by the board to loan or grant, or loan and
8grant, the applicant an amount that equals the portion of the costs
9found by the board to be eligible for a state loan or grant. The
10agreement may provide for disbursement of funds during the
11progress of the study or construction, or following completion of
12the study or construction, as agreed by the parties.

13(3) An agreement by the applicant to proceed expeditiously with
14the project or study.

15(4) An agreement by the applicant to commence operations of
16the project upon completion of the project, and to properly operate
17and maintain the project in accordance with the applicable
18provisions of law.

19(5) In the case of a loan, an agreement by the applicant to repay
20the state, over a period not to exceed the useful life of the project
21or 20 years, whichever is shorter, except as provided in the federal
22act, or in the case of a study, over a period not to exceed five years,
23all of the following:

24(A) The amount of the loan.

25(B) The administrative fee specified in subdivision (a) of Section
26116761.70.

27(C) Interest on the principal, which is the amount of the loan
28plus the administrative fee.

29(6) In the case of a grant, an agreement by the public agency
30or private not-for-profit water company to operate and maintain
31the water system for the term of the financing agreement or the
32useful life of the project, as determined by the board, unless
33otherwise authorized by the board.

34(c) The contract may include any of the following terms and
35conditions:

36(1) An agreement by the supplier to adopt a fee structure that
37provides for the proper maintenance and operations of the project
38and includes a sinking fund for repair and replacement of the
39facilities in cases where appropriate. The fee structure shall also
40provide an acceptable dedicated source of revenue for the
P142  1repayment of the amount of the loan, and the payment of
2administrative fees and interest.

3(2) If the entire project is not funded pursuant to this chapter,
4the board may include a provision requiring the applicant to share
5the cost of the project or obtain funding from other sources.

6(d) The board may require applicants to provide security for
7loan contracts.

8(e) This section shall become operative on July 1, 2014, and is
9repealed as of January 1 of the next calendar year occurring after
10the board provides notice to the Legislature and the Secretary of
11State and posts notice on its Internet Web site that the board has
12adopted a policy handbook pursuant to Section 116760.43.

end insert
13begin insert

begin insertSEC. 110.end insert  

end insert

begin insertSection 116761.50 is added to the end insertbegin insertHealth and Safety
14Code
end insert
begin insert, to read:end insert

begin insert
15

begin insert116761.50.end insert  

(a) The board may enter into financing agreements
16with applicants for the purposes set forth in this chapter.

17(b) If the board provides construction financing, the financing
18recipient shall commit to operate and maintain, or ensure the
19operation and maintenance of, the water system for the term of
20the financing agreement or the useful life of the project, as
21determined by the board, unless otherwise authorized by the board.

22(c) This section shall become operative on January 1 of the next
23calendar year occurring after the board provides notice to the
24Legislature and the Secretary of State and posts notice on its
25Internet Web site that the board has adopted a policy handbook
26 pursuant to Section 116760.43.

end insert
27begin insert

begin insertSEC. 111.end insert  

end insert

begin insertSection 116761.60 of the end insertbegin insertHealth and Safety Codeend insert
28begin insert is amended to read:end insert

29

116761.60.  

begin insert(a)end insertbegin insertend insertAll funding received under this chapter shall
30be expended by the applicant within three years of the execution
31of the contract with the department or its designee. The three-year
32period may be extended, with the approval of the department, until
33five years after the date the original contract, not including
34amendments, was executed.

begin insert

35(b) This section shall become inoperative on July 1, 2014, and,
36as of January 1, 2015, is repealed, unless a later enacted statute,
37that becomes operative on or before January 1, 2015, deletes or
38extends the dates on which it becomes inoperative and is repealed.

end insert
39begin insert

begin insertSEC. 112.end insert  

end insert

begin insertSection 116761.60 is added to the end insertbegin insertHealth and Safety
40Code
end insert
begin insert, to read:end insert

begin insert
P143  1

begin insert116761.60.end insert  

(a) All funding received under this chapter shall
2be expended by the applicant within three years of the execution
3of the contract with the board or its designee. The three-year period
4may be extended, with the approval of the board, until five years
5after the date the original contract, not including amendments,
6was executed.

7(b) 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. 113.end insert  

end insert

begin insertSection 116761.62 of the end insertbegin insertHealth and Safety Codeend insert
13begin insert is amended to read:end insert

14

116761.62.  

(a) To the extent permitted by federal and state
15law, moneys in the fund may be expended to rebate to the federal
16government all arbitrage profits required by the federal Tax Reform
17Act of 1986begin delete (P.L.end deletebegin insert (Public Lawend insert 99-514) or any amendmentbegin delete thereofend delete
18begin insert ofend insert or supplementbegin delete thereto.end deletebegin insert to that law.end insert To the extent that this
19expenditure of the moneys in the fund is prohibited by federal or
20state law, any rebates required by federal law shall be paid from
21the General Fund or other sources, upon appropriation by the
22Legislature.

23(b) Notwithstanding any otherbegin delete provisions ofend delete law or regulation,
24the department may enter into contracts or may procure those
25services and equipment that may be necessary to ensure prompt
26and complete compliance with any provisions relating to the fund
27imposed by either the federal Tax Reform Act of 1986begin delete (P.L.end deletebegin insert (Public
28Lawend insert
99-514) or the federal Safe Drinking Water Act.

begin insert

29(c) This section shall become inoperative on July 1, 2014, and,
30as of January 1, 2015, is repealed, unless a later enacted statute,
31that becomes operative on or before January 1, 2015, deletes or
32extends the dates on which it becomes inoperative and is repealed.

end insert
33begin insert

begin insertSEC. 114.end insert  

end insert

begin insertSection 116761.62 is added to the end insertbegin insertHealth and Safety
34Code
end insert
begin insert, to read:end insert

begin insert
35

begin insert116761.62.end insert  

(a) To the extent permitted by federal and state
36law, moneys in the fund may be expended to rebate to the federal
37government all arbitrage profits required by the federal Tax
38Reform Act of 1986 (Public Law 99-514) or any amendment of or
39supplement to that law. To the extent that this expenditure of the
40moneys in the fund is prohibited by federal or state law, any rebates
P144  1required by federal law shall be paid from the General Fund or
2other sources, upon appropriation by the Legislature.

3(b) Notwithstanding any other law or regulation, the board may
4enter into contracts or may procure those services and equipment
5that may be necessary to ensure prompt and complete compliance
6with any provisions relating to the fund imposed by either the
7 federal Tax Reform Act of 1986 (Public Law 99-514) or the federal
8Safe Drinking Water Act.

9(c) This section shall become operative on July 1, 2014.

end insert
10begin insert

begin insertSEC. 115.end insert  

end insert

begin insertSection 116761.65 of the end insertbegin insertHealth and Safety Codeend insert
11begin insert is amended to read:end insert

12

116761.65.  

(a) The department shall annually establish the
13interest rate for loans made pursuant to this chapter at 50 percent
14of the average interest rate, computed by the true interest cost
15method, paid by the state on general obligation bonds issued in
16the prior calendar year. All loans made pursuant to this chapter
17shall carry the interest rate established for the calendar year in
18which the funds are committed to the loan, as of the date of the
19letter of commitment. The interest rate set for each loan shall be
20applied throughout the repayment period of the loan. Interest on
21the loan shall not be deferred.

22(b) Notwithstanding subdivision (a), if the loan applicant is a
23public water system that is a disadvantaged community or provides
24matching funds, the interest rate on the loan shall be zero percent.

begin insert

25(c) This section shall become inoperative on July 1, 2014, and,
26as of January 1, 2015, is repealed, unless a later enacted statute,
27that becomes operative on or before January 1, 2015, deletes or
28extends the dates on which it becomes inoperative and is repealed.

end insert
29begin insert

begin insertSEC. 116.end insert  

end insert

begin insertSection 116761.65 is added to the end insertbegin insertHealth and Safety
30Code
end insert
begin insert, to read:end insert

begin insert
31

begin insert116761.65.end insert  

(a) The board shall annually establish the interest
32rate for loans made pursuant to this chapter at a rate not to exceed
3350 percent of the average interest rate, computed by the true
34interest cost method, paid by the state on general obligation bonds
35issued in the prior calendar year. All loans made pursuant to this
36chapter shall carry the interest rate established for the calendar
37year in which the funds are committed to the loan, as of the date
38of the letter of commitment. The interest rate set for each loan
39shall be applied throughout the repayment period of the loan.
40Interest on the loan shall not be deferred.

P145  1(b) Notwithstanding subdivision (a), if the loan applicant is a
2public water system that is a disadvantaged community or provides
3matching funds, the interest rate on the loan shall be zero percent.

4(c) This section shall become operative on July 1, 2014, and is
5repealed as of January 1 of the next calendar year occurring after
6the board provides notice to the Legislature and the Secretary of
7State and posts notice on its Internet Web site that the board has
8adopted a policy handbook pursuant to Section 116760.43.

end insert
9begin insert

begin insertSEC. 117.end insert  

end insert

begin insertSection 116761.65 is added to the end insertbegin insertHealth and Safety
10Code
end insert
begin insert, to read:end insert

begin insert
11

begin insert116761.65.end insert  

(a) The board shall annually establish the interest
12rate for repayable financing made pursuant to this chapter at a
13rate not to exceed 50 percent of the average interest rate, computed
14by the true interest cost method, paid by the state on general
15obligation bonds issued in the prior calendar year, rounded up to
16the closest one-tenth of 1 percent.

17(b) Notwithstanding subdivision (a), if the financing is for a
18public water system that serves a disadvantaged community with
19a financial hardship as determined by the board or if the financing
20is for a public water system that provides matching funds, the
21interest rate shall be 0 percent.

22(c) This section shall become operative on January 1 of the next
23calendar year occurring after the board provides notice to the
24Legislature and the Secretary of State and posts notice on its
25Internet Web site that the board has adopted a policy handbook
26pursuant to Section 116760.43.

end insert
27begin insert

begin insertSEC. 118.end insert  

end insert

begin insertSection 116761.70 of the end insertbegin insertHealth and Safety Codeend insert
28begin insert is amended to read:end insert

29

116761.70.  

(a) Not more than 4 percent of the capitalization
30grant may be used by the department for administering this chapter.
31The department may establish a reasonable schedule of
32administrative fees for loans, which shall be paid by the applicant
33to reimburse the state for the costs of the state administration of
34this chapter.

35(b) Charges incurred by the Attorney General in protection of
36the state’s interest in the use of repayment of grant and loan funds
37under this chapter shall be paid. These charges shall not be paid
38from funds allocated for administrative purposes, but shall be
39treated as a program expense not to exceed one-half of 1 percent
40of the total amount deposited in the fund.

begin insert

P146  1(c) This section shall become inoperative on July 1, 2014, and,
2as of January 1, 2015, is repealed, unless a later enacted statute,
3that becomes operative on or before January 1, 2015, deletes or
4extends the dates on which it becomes inoperative and is repealed.

end insert
5begin insert

begin insertSEC. 119.end insert  

end insert

begin insertSection 116761.70 is added to the end insertbegin insertHealth and Safety
6Code
end insert
begin insert, to read:end insert

begin insert
7

begin insert116761.70.end insert  

(a) Not more than 4 percent of the capitalization
8grant may be used by the board for administering this chapter.
9The board may establish a reasonable schedule of administrative
10fees that shall be paid by the applicant to reimburse the state for
11the costs of the state administration of this chapter.

12(b) This section shall become operative on July 1, 2014.

end insert
13begin insert

begin insertSEC. 120.end insert  

end insert

begin insertSection 116761.80 of the end insertbegin insertHealth and Safety Codeend insert
14begin insert is amended to read:end insert

15

116761.80.  

(a) The department may expend money repaid to
16the state pursuant to any contract executed under Section 116761.50
17as necessary for the administration of contracts entered into by the
18department under this chapter, but those expenditures may not in
19any year exceed 1.5 percent of the amount of principal and interest
20projected to be paid to the state in that year pursuant to this chapter.

21(b) Charges incurred by the Attorney General in protecting the
22state’s interest in the use of funds and repayment of funds under
23this chapter may be paid by the department from these funds, but
24those charges may not exceed one-half of 1 percent of the amount
25of principal and interest projected to be paid to the state in that
26year pursuant to this chapter.

27(c) Any of these sums unexpended by the department at the end
28of any year shall automatically revert to the fund.

begin insert

29(d) This section shall become inoperative on July 1, 2014, and,
30as of January 1, 2015, is repealed, unless a later enacted statute,
31that becomes operative on or before January 1, 2015, deletes or
32extends the dates on which it becomes inoperative and is repealed.

end insert
33begin insert

begin insertSEC. 121.end insert  

end insert

begin insertSection 116761.85 of the end insertbegin insertHealth and Safety Codeend insert
34begin insert is amended to read:end insert

35

116761.85.  

begin insert(a)end insertbegin insertend insertExcept as provided in Section 116761.80, all
36money repaid to the state pursuant to any contract executed under
37subdivision (a) of Section 116761.50, including interest payments
38and all interest earned on or accruing to any moneys in the fund,
39shall be deposited in the fund and shall be available in perpetuity,
P147  1for expenditure for the purposes and uses permitted by this chapter
2and the federal act.

begin insert

3(b) 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. 122.end insert  

end insert

begin insertSection 116761.85 is added to the end insertbegin insertHealth and Safety
8Code
end insert
begin insert, to read:end insert

begin insert
9

begin insert116761.85.end insert  

(a) Moneys repaid to the state pursuant to any
10contract executed pursuant to this chapter, including interest
11payments and all interest earned on or accruing to any moneys in
12the fund, shall be deposited in the fund and shall be available in
13perpetuity, for expenditure for the purposes and uses permitted by
14this chapter and the federal act.

15(b) This section shall become operative on July 1, 2014.

end insert
16begin insert

begin insertSEC. 123.end insert  

end insert

begin insertSection 116762.60 of the end insertbegin insertHealth and Safety Codeend insert
17begin insert is amended to read:end insert

18

116762.60.  

(a) The department shall, contingent upon receiving
19federal capitalization grant funds, develop and implement a
20program to protect sources of drinking water. In carrying out this
21program, the department shall coordinate with local, state, and
22federal agencies that have public health and environmental
23management programs to ensure an effective implementation of
24the program while avoiding duplication of effort and reducing
25program costs. The program shall includebegin insert all ofend insert the following:

26(1) A source water assessment program to delineate and assess
27the drinking water supplies of public drinking water systems
28pursuant to Section 1453 of the federal act.

29(2) A wellhead protection program to protect drinking water
30wells from contamination pursuant to Section 1428 of the federal
31act.

32(3) Pursuant to Section 1452(k) of the federal act, the department
33shall set aside federal capitalization grant funds sufficient to carry
34out paragraphs (1) and (2) of subdivision (a).

35(b) The department shall set aside federal capitalization grant
36funds to provide assistance to water systems pursuant to Section
371452(k) of the federal act for the following source water protection
38activities, to the extent that those activities are proposed:

39(1) To acquire land or a conservation easement if the purpose
40of the acquisition is to protect the source water of the system from
P148  1contamination and to ensure compliance with primary drinking
2water regulations.

3(2) To implement local, voluntary source water protection
4measures to protect source water in areas delineated pursuant to
5Section 1453 of the federal act, in order to facilitate compliance
6with primary drinking water regulations applicable to the water
7system under Section 1412 of the federal act or otherwise
8significantly further the health protection objectives of the federal
9and state acts.

10(3) To carry out a voluntary, incentive-based source water
11quality protection partnership pursuant to Section 1454 of the
12federal act.

13(c) The department shall conduct duly noticed public hearings,
14public workshops, focus groups, or meetings around the state to
15encourage the involvement and active input of public and affected
16parties in the development and periodic updating of the source
17water protection program adopted pursuant to this article. The
18notices shall contain basic information about the program in an
19understandable format and shall notify widely representative
20groups, including, but not limited to, federal, state, and local
21governmental agencies, water utilities, public interest,
22environmental, and consumer groups, public health groups, land
23conservation groups, health care providers, groups representing
24vulnerable populations, groups representing business and
25agricultural interests, and members of the general public. In
26addition, the department shall convene a technical advisory
27committee and a citizens’ advisory committee made up of those
28representative groups to provide advice and direction on program
29development and implementation.

30(d) The department shall submit a report to the Legislature every
31two years on its activities under this section. The report shall
32contain a description of each program for which funds have been
33set aside under this section, the effectiveness of each program in
34carrying out the intent of the federal and state acts, and an
35accounting of the amount of set aside funds used.

begin insert

36(e) This section shall become inoperative on July 1, 2014, and,
37as of January 1, 2015, is repealed, unless a later enacted statute,
38that becomes operative on or before January 1, 2015, deletes or
39extends the dates on which it becomes inoperative and is repealed.

end insert
P149  1begin insert

begin insertSEC. 124.end insert  

end insert

begin insertSection 116762.60 is added to the end insertbegin insertHealth and Safety
2Code
end insert
begin insert, to read:end insert

begin insert
3

begin insert116762.60.end insert  

(a) The board shall, contingent upon receiving
4federal capitalization grant funds, develop and implement a
5program to protect sources of drinking water. In carrying out this
6program, the board shall coordinate with local, state, and federal
7agencies that have public health and environmental management
8programs to ensure an effective implementation of the program
9while avoiding duplication of effort and reducing program costs.
10The program shall include all of the following:

11(1) A source water assessment program to delineate and assess
12the drinking water supplies of public drinking water systems
13pursuant to Section 1453 of the federal act.

14(2) A wellhead protection program to protect drinking water
15wells from contamination pursuant to Section 1428 of the federal
16act.

17(3) Pursuant to Section 1452(k) of the federal act, the board
18shall set aside federal capitalization grant funds sufficient to carry
19out paragraphs (1) and (2) of subdivision (a).

20(b) The board shall set aside federal capitalization grant funds
21to provide assistance to water systems pursuant to Section 1452(k)
22of the federal act for the following source water protection
23activities, to the extent that those activities are proposed:

24(1) To acquire land or a conservation easement if the purpose
25of the acquisition is to protect the source water of the system from
26contamination and to ensure compliance with primary drinking
27water regulations.

28(2) To implement local, voluntary source water protection
29measures to protect source water in areas delineated pursuant to
30Section 1453 of the federal act, in order to facilitate compliance
31with primary drinking water regulations applicable to the water
32system under Section 1412 of the federal act or otherwise
33significantly further the health protection objectives of the federal
34and state acts.

35(3) To carry out a voluntary, incentive-based source water
36quality protection partnership pursuant to Section 1454 of the
37federal act.

38(c) The board shall conduct duly noticed public hearings, public
39workshops, focus groups, or meetings around the state to
40encourage the involvement and active input of public and affected
P150  1parties in the development and periodic updating of the source
2water protection program adopted pursuant to this article. The
3notices shall contain basic information about the program in an
4 understandable format and shall notify widely representative
5groups, including, but not limited to, federal, state, and local
6governmental agencies, water utilities, public interest,
7environmental, and consumer groups, public health groups, land
8conservation groups, health care providers, groups representing
9vulnerable populations, groups representing business and
10agricultural interests, and members of the general public. In
11addition, the board shall convene a technical advisory committee
12and a citizens’ advisory committee made up of those representative
13groups to provide advice and direction on program development
14and implementation.

15(d) (1) The board shall submit a report to the Legislature every
16two years on its activities under this section. The report shall
17contain a description of each program for which funds have been
18set aside under this section, the effectiveness of each program in
19carrying out the intent of the federal and state acts, and an
20accounting of the amount of set aside funds used.

21(2) A report submitted pursuant to this subdivision shall be
22submitted in compliance with Section 9795 of the Government
23Code.

24(e) This section shall become operative on July 1, 2014, and is
25repealed as of January 1 of the next calendar year occurring after
26the board provides notice to the Legislature and the Secretary of
27State and posts notice on its Internet Web site that the board has
28adopted a policy handbook pursuant to Section 116760.43.

end insert
29begin insert

begin insertSEC. 125.end insert  

end insert

begin insertSection 116762.60 is added to the end insertbegin insertHealth and Safety
30Code
end insert
begin insert, to read:end insert

begin insert
31

begin insert116762.60.end insert  

(a) The board shall, contingent upon receiving
32federal capitalization grant funds, develop and implement a
33program to protect sources of drinking water. In carrying out this
34program, the board shall coordinate with local, state, and federal
35agencies that have public health and environmental management
36programs to ensure an effective implementation of the program
37while avoiding duplication of effort and reducing program costs.
38The program shall include all of the following:

P151  1(1) A source water assessment program to delineate and assess
2the drinking water supplies of public drinking water systems
3pursuant to Section 1453 of the federal act.

4(2) A wellhead protection program to protect drinking water
5wells from contamination pursuant to Section 1428 of the federal
6act.

7(3) Pursuant to Section 1452(k) of the federal act, the board
8shall set aside federal capitalization grant funds sufficient to carry
9out paragraphs (1) and (2).

10(b) The board shall set aside federal capitalization grant funds
11to provide assistance to water systems pursuant to Section 1452(k)
12of the federal act for the following source water protection
13activities, to the extent that those activities are proposed:

14(1) To acquire land or a conservation easement if the purpose
15of the acquisition is to protect the source water of the system from
16contamination and to ensure compliance with primary drinking
17water regulations.

18(2) To implement local, voluntary source water protection
19measures to protect source water in areas delineated pursuant to
20Section 1453 of the federal act, in order to facilitate compliance
21with primary drinking water regulations applicable to the water
22system under Section 1412 of the federal act or otherwise
23significantly further the health protection objectives of the federal
24and state acts.

25(3) To carry out a voluntary, incentive-based source water
26quality protection partnership pursuant to Section 1454 of the
27federal act.

28(c) The board shall post a report to its Internet Web site, every
29two years, on its activities under this section. The report shall
30contain a description of each program for which funds have been
31set aside under this section, the effectiveness of each program in
32carrying out the intent of the federal and state acts, and an
33accounting of the amount of set aside funds used.

34(d) This section shall become operative on January 1 of the next
35calendar year occurring after the board provides notice to the
36Legislature and the Secretary of State and posts notice on its
37Internet Web site that the board has adopted a policy handbook
38pursuant to Section 116760.43.

end insert
39begin insert

begin insertSEC. 126.end insert  

end insert

begin insertSection 131110 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
40amended to read:end insert

P152  1

131110.  

begin insert(a)end insertbegin insertend insertThe department shall maintain a program of
2Drinking Water and Environmental Management.

begin insert

3(b) 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. 127.end insert  

end insert

begin insertSection 131110 is added to the end insertbegin insertHealth and Safety
8Code
end insert
begin insert, to read:end insert

begin insert
9

begin insert131110.end insert  

(a) The department shall maintain a program of
10Environmental Management.

11(b) This section shall become operative on July 1, 2014.

end insert
12begin insert

begin insertSEC. 128.end insert  

end insert

begin insertSection 541.5 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
13amended to read:end insert

14

541.5.  

(a) The department shall not close, or propose to close,
15a state park in the 2012-13 or 2013-14 fiscal year. The commission
16and the department shall recommend all necessary steps to establish
17a sustainable funding strategy for the department to the Legislature
18on or before January 1, 2015.

19(b) There is hereby appropriated twenty million five hundred
20thousand dollars ($20,500,000) to the department from the State
21Parks and Recreation Fund, which shall be available for
22encumbrancebegin delete for the 2012-13 and 2013-14 fiscal years,end deletebegin insert until June
2330, 2016, and for liquidation until June 30, 2018,end insert
to be expended
24as follows:

25(1) Ten million dollars ($10,000,000) shall be available to
26provide for matching funds pursuant to subdivision (c).

27(2) Ten million dollars ($10,000,000) shall be available for the
28department to direct funds to parks that remain at risk of closure
29or that will keep parks open during the 2012-13begin delete and 2013-14 fiscal
30years.end delete
begin insert to 2015-16 fiscal years, inclusive.end insert Priority may be given to
31parks subject to a donor or operating agreement or other contractual
32arrangement with the department.

33(3) Up to five hundred thousand dollars ($500,000) shall be
34available for the department to pay for ongoing audits and
35investigations as directed by the Joint Legislative Audit Committee,
36the office of the Attorney General, the Department of Finance, or
37other state agency.

38(c) The department shall match on a dollar-for-dollar basis all
39financial contributions contributed by a donor pursuant to an
40agreement for the 2012-13 fiscal year for which the department
P153  1received funds as of July 31, 2013, and for agreements entered
2into in the 2013-14 fiscal year. These matching funds shall be
3used exclusively in the park unit subject to those agreements.

4(d) The department shall notify the Joint Legislative Budget
5Committee in writing not less than 30 daysbegin delete prior toend deletebegin insert beforeend insert the
6expenditure of funds under this section of the funding that shall
7be expended, the manner of the expenditure, and the recipient of
8the expenditure.

9(e) The prohibitionbegin delete to close, or propose to close,end deletebegin insert on the closure
10or proposed closure ofend insert
a state park in the 2012-13 or 2013-14
11fiscal year, pursuant to paragraph (a), does not limit or affect the
12department’s authority to enter into an operating agreement,
13pursuant to Section 5080.42, during the 2012-13 or 2013-14 fiscal
14year, for purposes of the operation of the entirety of a state park
15during the 2012-13 or 2013-14 fiscal year.

16begin insert

begin insertSEC. 129.end insert  

end insert

begin insertSection 2705 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
17amended to read:end insert

18

2705.  

(a) A city, county, and city and county shall collect a
19fee from each applicant for a building permit. Each fee shall be
20equal to a specific amount of the proposed building construction
21for which the building permit is issued as determined by the local
22building officials. The fee amount shall be assessed in the following
23way:

24(1) Group R occupancies, as defined in the California Building
25Code (Part 2 of Title 24 of the California Code of Regulations),
26one to three stories in height, except hotels and motels, shall be
27assessed at the rate ofbegin delete tenend deletebegin insert thirteenend insert dollarsbegin delete ($10)end deletebegin insert ($13)end insert per one
28hundred thousand dollars ($100,000), with appropriate fractions
29thereof.

30(2) All other buildings shall be assessed at the rate ofbegin delete twenty-oneend delete
31begin insert twenty-eightend insert dollarsbegin delete ($21)end deletebegin insert ($28)end insert per one hundred thousand dollars
32($100,000), with appropriate fractions thereof.

33(3) The fee shall be the amount assessed under paragraph (1)
34or (2), depending on building type, or fifty cents ($0.50), whichever
35is the higher.

36(b) (1) In lieu of the requirements of subdivision (a), a city,
37county, and city and county may elect to include a rate ofbegin delete tenend delete
38begin insert thirteenend insert dollarsbegin delete ($10)end deletebegin insert ($13)end insert per one hundred thousand dollars
39($100,000), with appropriate fractions thereof, in its basic building
40permit fee for any Group R occupancy defined in paragraph (1)
P154  1of subdivision (a), and a rate ofbegin delete twenty-oneend deletebegin insert twenty-eightend insert dollars
2begin delete ($21)end deletebegin insert ($28)end insert per one hundred thousand dollars ($100,000), with
3appropriate fractions thereof, for all other building types. A city,
4county, and city and county electing to collect the fee pursuant to
5this subdivision need not segregate the fees in a fund separate from
6any fund into which basic building permit fees are deposited.

7(2) “Building,” for the purpose of this chapter, is any structure
8built for the support, shelter, or enclosure of persons, animals,
9chattels, or property of any kind.

10(c) (1) A city, county, and city and county may retain up to 5
11percent of the total amount it collects under subdivision (a) or (b)
12for data utilization, for seismic education incorporating data
13interpretations from data of the strong-motion instrumentation
14program and the seismic hazards mapping program, and, in
15accordance with paragraph (2), for improving the preparation for
16damage assessment after strong seismic motion events.

17(2) A city, county, and city and county may use any funds
18retained pursuant to this subdivision to improve the preparation
19for damage assessment in its jurisdiction only after it provides the
20Department of Conservation with information indicating to the
21department that data utilization and seismic education activities
22have been adequately funded.

23(d) Funds collected pursuant to subdivisions (a) and (b), less
24the amount retained pursuant to subdivision (c), shall be deposited
25in the Strong-Motion Instrumentation and Seismic Hazards
26Mapping Fund, as created by Section 2699.5 to be used exclusively
27for purposes of this chapterbegin insert, Chapter 7.5 (commencing with Section
282621),end insert
and Chapter 7.8 (commencing with Section 2690).

29begin insert

begin insertSEC. 130.end insert  

end insert

begin insertSection 3160 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
30amended to read:end insert

31

3160.  

(a) On or before January 1, 2015, the Secretary of the
32Natural Resources Agency shall cause to be conducted, and
33completed, an independent scientific study on well stimulation
34treatments, including, but not limited to, hydraulic fracturing and
35acid well stimulation treatments. The scientific study shall evaluate
36the hazards and risks and potential hazards and risks that well
37stimulation treatments pose to natural resources and public,
38occupational, and environmental health and safety. The scientific
39study shall do all of the following:

P155  1(1) Follow the well-established standard protocols of the
2scientific profession, including, but not limited to, the use of
3recognized experts, peer review, and publication.

4(2) Identify areas with existing and potential conventional and
5unconventional oil and gas reserves where well stimulation
6treatments are likely to spur or enable oil and gas exploration and
7production.

8(3) (A) Evaluate all aspects and effects of well stimulation
9treatments, including, but not limited to, the well stimulation
10treatment, additive and water transportation to and from the well
11site, mixing and handling of the well stimulation treatment fluids
12and additives onsite, the use and potential for use of nontoxic
13additives and the use or reuse of treated or produced water in well
14stimulation treatment fluids,begin insert andend insert flowback fluids andbegin insert theend insert handling,
15treatment, and disposal of flowback fluids and other materials, if
16any, generated by the treatment. Specifically, the potential for the
17use of recycled water in well stimulation treatments, including
18appropriate water quality requirements and available treatment
19technologies, shall be evaluated. Well stimulation treatments
20include, but are not limited to, hydraulic fracturing and acid well
21stimulation treatments.

22(B) Review and evaluate acid matrix stimulation treatments,
23including the range of acid volumes applied per treated foot and
24total acid volumes used in treatments, types of acids, acid
25concentration, and other chemicals used in the treatments.

26(4) Consider, at a minimum, atmospheric emissions, including
27potential greenhouse gas emissions, the potential degradation of
28air quality, potential impacts on wildlife, native plants, and habitat,
29 including habitat fragmentation, potential water and surface
30contamination, potential noise pollution, induced seismicity, and
31the ultimate disposition, transport, transformation, and toxicology
32of well stimulation treatments, including acid well stimulation
33fluids, hydraulic fracturing fluids, and waste hydraulic fracturing
34fluids and acid well stimulation in the environment.

35(5) Identify and evaluate the geologic features present in the
36vicinity of a well, including the well bore, that should be taken
37into consideration in the design of a proposed well stimulation
38treatment.

39(6) Include a hazard assessment and risk analysis addressing
40occupational and environmental exposures to well stimulation
P156  1treatments, including hydraulic fracturing treatments, hydraulic
2fracturing treatment-related processes, acid well stimulation
3treatments, acid well stimulation treatment-related processes, and
4the corresponding impacts on public health and safety with the
5participation of the Office of Environmental Health Hazard
6Assessment.

7(7) Clearly identify where additional information is necessary
8to inform and improve the analyses.

9(b) (1) (A) On or before January 1, 2015, the division, in
10consultation with the Department of Toxic Substances Control,
11the State Air Resources Board, the State Water Resources Control
12Board, the Department of Resources Recycling and Recovery, and
13any local air districts and regional water quality control boards in
14areas where well stimulation treatments, including acid well
15stimulation treatments and hydraulic fracturingbegin delete treatmentsend delete
16begin insert treatments,end insert may occur, shall adopt rules and regulations specific
17to well stimulation treatments. The rules and regulations shall
18include, but are not limited to, revisions, as needed, to the rules
19and regulations governing construction of wells and well casings
20to ensure integrity of wells, well casings, and the geologic and
21hydrologic isolation of the oil and gas formation during and
22following well stimulation treatments, and full disclosure of the
23composition and disposition of well stimulation fluids, including,
24but not limited to, hydraulic fracturing fluids, acid well stimulation
25fluids, and flowback fluids.

26(B) The rules and regulations shall additionally include
27provisions for an independent entity or person to perform the
28notification requirements pursuant to paragraph (6) of subdivision
29(d), for the operator to provide for baseline and followup water
30testing upon request as specified in paragraph (7) of subdivision
31(d).

32(C) (i) In order to identify the acid matrix stimulation treatments
33that are subject to this section, the rules and regulations shall
34establish threshold values for acid volume applied per treated foot
35of any individual stage of the well or for total acid volume of the
36treatment, or both, based upon a quantitative assessment of the
37risks posed by acid matrix stimulation treatments that exceed the
38specified threshold value or values in order to prevent, as far as
39possible, damage to life, health, property, and natural resources
40pursuant to Section 3106.

P157  1(ii) On or before January 1, 2020, the division shall review and
2evaluate the threshold values for acid volume applied per treated
3foot and total acid volume of the treatment, based upon data
4collected in the state, for acid matrix stimulation treatments. The
5division shall revise the values through the regulatory process, if
6necessary, based upon the best available scientific information,
7including the results of the independent scientific study pursuant
8to subparagraph (B) of paragraph (3) of subdivision (a).

9(2) Full disclosure of the composition and disposition of well
10stimulation fluids, including, but not limited to, hydraulic fracturing
11fluids and acid stimulation treatment fluids, shall, at a minimum,
12include:

13(A) The date of the well stimulation treatment.

14(B) A complete list of the names, Chemical Abstract Service
15(CAS) numbers, and maximum concentration, in percent by mass,
16of each and every chemical constituent of the well stimulation
17treatment fluids used. If a CAS number does not exist for a
18chemical constituent, the well owner or operator may provide
19another unique identifier, if available.

20(C) The trade name, the supplier, concentration, and a brief
21description of the intended purpose of each additive contained in
22the well stimulation treatment fluid.

23(D) The total volume of base fluid used during the well
24stimulation treatment, and the identification of whether the base
25fluid is water suitable for irrigation or domestic purposes, water
26not suitable for irrigation or domestic purposes, or a fluid other
27than water.

28(E) The source, volume, and specific composition and
29disposition of all water, including, but not limited to, all water
30used as base fluid during the well stimulation treatment and
31recovered from the well following the well stimulation treatment
32that is not otherwise reported as produced water pursuant to Section
333227. Any repeated reuse of treated or untreated water for well
34stimulation treatments and well stimulation treatment-related
35activities shall be identified.

36(F) The specific composition and disposition of all well
37stimulation treatment fluids, including waste fluids, other than
38water.

39(G) Any radiological components or tracers injected into the
40well as part of, or in order to evaluate, the well stimulation
P158  1treatment, a description of the recovery method, if any, for those
2components or tracers, the recovery rate, and specific disposal
3information for recovered components or tracers.

4(H) The radioactivity of the recovered well stimulation fluids.

5(I) The location of the portion of the well subject to the well
6stimulation treatment and the extent of the fracturing or other
7modification, if any, surrounding the well induced by the treatment.

8(c) (1) Through the consultation process described in paragraph
9(1) of subdivision (b), the division shall collaboratively identify
10and delineate the existing statutory authority and regulatory
11responsibility relating to well stimulation treatments and well
12stimulation treatment-related activities of the Department of Toxic
13Substances Control, the State Air Resources Board, any local air
14districts, the State Water Resources Control Board, the Department
15of Resources Recycling and Recovery, any regional water quality
16control board, and other public entities, as applicable. This shall
17specify how the respective authority, responsibility, and notification
18and reporting requirements associated with well stimulation
19treatments and well stimulation treatment-related activities are
20divided among each public entity.

21(2) On or before January 1, 2015, the division shall enter into
22formal agreements with the Department of Toxic Substances
23Control, the State Air Resources Board, any local air districts where
24well stimulation treatments may occur, the State Water Resources
25Control Board, the Department of Resources Recycling and
26Recovery, and any regional water quality control board where well
27stimulation treatments may occur, clearly delineating respective
28authority, responsibility, and notification and reporting
29requirements associated with well stimulation treatments and well
30stimulation treatment-related activities, including air and water
31quality monitoring, in order to promote regulatory transparency
32and accountability.

33(3) The agreements under paragraph (2) shall specify the
34appropriate public entity responsible for air and water quality
35monitoring and the safe and lawful disposal of materials in
36landfills, include trade secret handling protocols, if necessary, and
37provide for ready public access to information related to well
38stimulation treatments and related activities.

39(4) Regulations, if necessary, shall be revised appropriately to
40incorporate the agreements under paragraph (2).

P159  1(d) (1) Notwithstanding any other law or regulation, prior to
2performing a well stimulation treatment on a well, the operator
3shall apply for a permit to perform a well stimulation treatment
4with the supervisor or district deputy. The well stimulation
5treatment permit application shall contain the pertinent data the
6supervisor requires on printed forms supplied by the division or
7on other forms acceptable to the supervisor. The information
8provided in the well stimulation treatment permit application shall
9include, but is not limited to, the following:

10(A) The well identification number and location.

11(B) The time period during which the well stimulation treatment
12is planned to occur.

13(C) A water management plan that shall include all of the
14following:

15(i) An estimate of the amount of water to be used in the
16treatment. Estimates of water to be recycled following the well
17stimulation treatment may be included.

18(ii) The anticipated source of the water to be used in the
19treatment.

20(iii) The disposal method identified for the recovered water in
21the flowback fluid from the treatment that is not produced water
22included in the statement pursuant to Section 3227.

23(D) A complete list of the names, Chemical Abstract Service
24(CAS) numbers, and estimated concentrations, in percent by mass,
25of each and every chemical constituent of the well stimulation
26fluids anticipated to be used in the treatment. If a CAS number
27does not exist for a chemical constituent, the well owner or operator
28may provide another unique identifier, if available.

29(E) The planned location of the well stimulation treatment on
30the well bore, the estimated length, height, and direction of the
31induced fractures or other planned modification, if any, and the
32location of existing wells, including plugged and abandoned wells,
33that may be impacted by these fractures and modifications.

34(F) A groundwater monitoring plan. Required groundwater
35monitoring in the vicinity of the well subject to the well stimulation
36treatment shall be satisfied by one of the following:

37(i) The well is located within the boundaries of an existing oil
38or gas field-specific or regional monitoring program developed
39pursuant to Section 10783 of the Water Code.

P160  1(ii) The well is located within the boundaries of an existing oil
2or gas field-specific or regional monitoring program developed
3and implemented by the well owner or operator meeting the model
4criteria established pursuant to Section 10783 of the Water Code.

5(iii) Through a well-specific monitoring plan implemented by
6the owner or operator meeting the model criteria established
7pursuant to Section 10783 of the Water Code, and submitted to
8the appropriate regional water board for review.

9(G) The estimated amount of treatment-generated waste
10 materials that are not reported in subparagraph (C) and an identified
11disposal method for the waste materials.

12(2) (A) At the supervisor’s discretion, and if applied for
13concurrently, the well stimulation treatment permit described in
14this section may be combined with the well drilling and related
15operation notice of intent required pursuant to Section 3203 into
16a single combined authorization. The portion of the combined
17authorization applicable to well stimulation shall meet all of the
18requirements of a well stimulation treatment permit pursuant to
19this section.

begin delete

20(B) Where the supervisor determines that the activities proposed
21in the well stimulation treatment permit or the combined
22authorization have met all of the requirements of Division 13
23(commencing with Section 21000), and have been fully described,
24analyzed, evaluated, and mitigated, no additional review or
25mitigation shall be required.

end delete
begin delete

26(C)

end delete

27begin insert(B)end insert The time period available for approvalbegin delete of the portionend delete of the
28combined authorization applicable to well stimulation is subject
29to the terms of this section, and not Section 3203.

30(3) (A) The supervisor or district deputy shall review the well
31stimulation treatment permit application and may approve the
32permit if the application is complete. An incomplete application
33shall not be approved.

34(B) A well stimulation treatment or repeat well stimulation
35treatment shall not be performed on any well without a valid permit
36that the supervisor or district deputy has approved.

37(C) In considering the permit application, the supervisor shall
38evaluate the quantifiable risk of the well stimulation treatment.

begin insert

39(D) In the absence of state implementation of a regional
40groundwater monitoring program pursuant to paragraph (1) of
P161  1subdivision (h) of Section 10783 of the Water Code, the supervisor
2or district deputy may approve a permit application for well
3stimulation treatment pursuant to subparagraph (A) prior to the
4approval by the State Water Resources Control Board or a regional
5water quality control board of an area-specific groundwater
6monitoring program developed by an owner or operator pursuant
7to paragraph (2) of subdivision (h) of Section 10783 of the Water
8Code, but the well stimulation treatment shall not commence until
9the state board or the regional board approves the area-specific
10groundwater monitoring program.

end insert

11(4) The well stimulation treatment permit shall expire one year
12from the date that the permit is issued.

13(5) Within five business days of issuing a permit to perform a
14well stimulation treatment, the division shall provide a copy of the
15permit to the appropriate regional water quality control board or
16boards and to the local planning entity where the well, including
17its subsurface portion, is located. The division shall also post the
18permit on the publicly accessible portion of its Internet Web site
19within five business days of issuing a permit.

20(6) (A) It is the policy of the state that a copy of the approved
21well stimulation treatment permit and information on the available
22water sampling and testing be provided to every tenant of the
23surface property and every surface property owner or authorized
24agent of that owner whose property line location is one of the
25following:

26(i) Within a 1,500 foot radius of the wellhead.

27(ii) Within 500 feet from the horizontal projection of all
28subsurface portions of the designated well to the surface.

29(B) (i) The well owner or operator shall identify the area
30requiring notification and shall contract with an independent entity
31or person who is responsible for, and shall perform, the notification
32required pursuant to subparagraph (A).

33(ii) The independent entity or person shall identify the
34individuals notified, the method of notification, the date of the
35 notification, a list of those notified, and shall provide a list of this
36information to the division.

37(iii) The performance of the independent entity or persons shall
38be subject to review and audit by the division.

P162  1(C) A well stimulation treatment shall not commence before 30
2calendar days after the permit copies pursuant to subparagraph (A)
3are provided.

4(7) (A) A property owner notified pursuant to paragraph (6)
5may request water quality sampling and testing from a designated
6qualified contractor on any water well suitable for drinking or
7irrigation purposes and on any surface water suitable for drinking
8or irrigation purposes as follows:

9(i) Baseline measurements prior to the commencement of the
10well stimulation treatment.

11(ii) Followup measurements after the well stimulation treatment
12on the same schedule as the pressure testing of the well casing of
13the treated well.

14(B) The State Water Resources Control Board shall designate
15one or more qualified independent third-party contractor or
16contractors that adhere to board-specified standards and protocols
17to perform the water sampling and testing. The well owner or
18operator shall pay for the sampling and testing. The sampling and
19testing performed shall be subject to audit and review by the State
20Water Resources Control Board or applicable regional water quality
21control board, as appropriate.

22(C) The results of the water testing shall be provided to the
23division, appropriate regional water board, and the property owner
24or authorized agent. A tenant notified pursuant to paragraph (6)
25shall receive information on the results of the water testing to the
26extent authorized by his or her lease and, where the tenant has
27lawful use of the ground or surface water identified in subparagraph
28(A), the tenant may independently contract for similar groundwater
29or surface water testing.

30(8) The division shall retain a list of the entities and property
31owners notified pursuant to paragraphs (5) and (6).

32(9) The operator shall provide notice to the division at least 72
33hours prior to the actual start of the well stimulation treatment in
34order for the division to witness the treatment.

35(e) The Secretary of the Natural Resources Agency shall notify
36the Joint Legislative Budget Committee and the chairs of the
37Assembly Natural Resources, Senate Environmental Quality, and
38 Senate Natural Resources and Water Committees on the progress
39of the independent scientific study on well stimulation and related
40activities. The first progress report shall be provided to the
P163  1begin delete Legislatureend deletebegin insert committeesend insert on or before April 1, 2014, and progress
2reports shall continue every four months thereafter until the
3independent study is completed, including a peer review of the
4study by independent scientific experts.

5(f) If a well stimulation treatment is performed on a well, a
6supplier that performs any part of the stimulation or provides
7additives directly to the operator for a well stimulation treatment
8shall furnish the operator with information suitable for public
9disclosure needed for the operator to comply with subdivision (g).
10This information shall be provided as soon as possible but no later
11than 30 days following the conclusion of the well stimulation
12treatment.

13(g) (1) Within 60 days following cessation of a well stimulation
14treatment on a well, the operator shall post or cause to have posted
15to an Internet Web site designated or maintained by the division
16and accessible to the public, all of the well stimulation fluid
17composition and disposition information required to be collected
18pursuant to rules and regulations adopted under subdivision (b),
19including well identification number and location. This shall
20include the collected water quality data, which the operator shall
21report electronically to the State Water Resources Control Board.

22(2) (A) The division shall commence the process to develop
23an Internet Web site for operators to report the information required
24under this section. The Internet Web site shall be capable of
25organizing the reported information in a format, such as a
26spreadsheet, that allows the public to easily search and aggregate,
27to the extent practicable, each type of information required to be
28collected pursuant to subdivision (b) using search functions on
29that Internet Web site. The Internet Web site shall be functional
30within two years of the Department of Technology’s approval of
31a Feasibility Study Report or appropriation authority to fund the
32development of the Internet Web site, whichever occurs latest, but
33no later than January 1, 2016.

34(B) The division may direct reporting to an alternative Internet
35Web site developed by the Ground Water Protection Council and
36the Interstate Oil and Gas Compact Commission in the interim
37until such time as approval or appropriation authority pursuant to
38subparagraph (A) occur. Prior to the implementation of the
39division’s Internet Web site, the division shall obtain the data
40reported by operators to the alternative Internet Web site and make
P164  1it available in an organized electronic format to the public no later
2than 15 days after it is reported to the alternativebegin insert Internetend insert Web
3site.

4(h) The operator is responsible for compliance with this section.

5(i) (1) All geologic features within a distance reflecting an
6appropriate safety factor of the fracture zone for well stimulation
7treatments that fracture the formation and that have the potential
8to either limit or facilitate the migration of fluids outside of the
9fracture zone shall be identified and added to the well history.
10Geologic features include seismic faults identified by the California
11Geologic Survey.

12(2) For the purposes of this section, the “fracture zone” is
13defined as the volume surrounding the well bore where fractures
14were created or enhanced by the well stimulation treatment. The
15safety factor shall be at least five and may vary depending upon
16 geologic knowledge.

17(3) The division shall review the geologic features important to
18assessing well stimulation treatments identified in the independent
19study pursuant to paragraph (5) of subdivision (a). Upon
20completion of the review, the division shall revise the regulations
21governing the reporting of geologic features pursuant to this
22subdivision accordingly.

23(j) (1) Public disclosure of well stimulation treatment fluid
24information claimed to contain trade secrets is governed by Section
251060 of the Evidence Code, or the Uniform Trade Secrets Act
26(Title 5 (commencing with Section 3426) of Part 1 of Division 4
27of the Civil Code), and the California Public Records Act (Chapter
283.5 (commencing with Section 6250) of Division 7 of Title 1 of
29the Government Code).

30(2) Notwithstanding any other law or regulation, none of the
31following information shall be protected as a trade secret:

32(A) The identities of the chemical constituents of additives,
33including CAS identification numbers.

34(B) The concentrations of the additives in the well stimulation
35treatment fluids.

36(C) Any air or other pollution monitoring data.

37(D) Health and safety data associated with well stimulation
38treatment fluids.

39(E) The chemical composition of the flowback fluid.

P165  1(3) If a trade secret claim is invalid or invalidated, the division
2shall release the information to the public by revising the
3information released pursuant to subdivision (g). The supplier shall
4notify the division of any change in status within 30 days.

5(4) (A) If a supplier believes that information regarding a
6chemical constituent of a well stimulation fluid is a trade secret,
7the supplier shall nevertheless disclose the information to the
8division in conjunction with a well stimulation treatment permit
9application, if not previously disclosed, within 30 days following
10cessation ofbegin insert aend insert well stimulation on a well, and shall notify the
11division in writing of that belief.

12(B) A trade secret claim shall not be made after initial disclosure
13of the information to the division.

14(C) To comply with the public disclosure requirements of this
15section, the supplier shall indicate where trade secret information
16has been withheld and provide substitute information for public
17disclosure. The substitute information shall be a list, in any order,
18of the chemical constituents of the additive, including CAS
19identification numbers. The division shall review and approve the
20supplied substitute information.

21(D) This subdivision does not permit a supplier to refuse to
22disclose the information required pursuant to this section to the
23division.

24(5) In order to substantiate the trade secret claim, the supplier
25shall provide information to the division that shows all of the
26following:

27(A) The extent to which the trade secret information is known
28by the supplier’sbegin delete employees,end deletebegin insert employees andend insert others involved in the
29supplier’s business and outside the supplier’s business.

30(B) The measures taken by the supplier to guard the secrecy of
31the trade secret information.

32(C) The value of the trade secret information to the supplier and
33its competitors.

34(D) The amount of effort or money the supplier expended
35developing the trade secret information and the ease or difficulty
36with which the trade secret information could be acquired or
37duplicated by others.

38(6) If the division determines that the information provided in
39support of a request for trade secret protection pursuant to
40paragraph (5) is incomplete, the division shall notify the supplier
P166  1and the supplier shall have 30 days to complete the submission.
2An incomplete submission does not meet the substantive criteria
3for trade secret designation.

4(7) If the division determines that the information provided in
5support of a request for trade secret protection does not meet the
6substantive criteria for trade secret designation, the department
7shall notify the supplier by certified mail of its determination. The
8division shall release the information to the public, but not earlier
9than 60 days after the date of mailing the determination, unless,
10prior to the expiration of the 60-day period, the supplier obtains
11an action in an appropriate court for a declaratory judgment that
12the information is subject to protection or for a preliminary
13injunction prohibiting disclosure of the information to the public
14and provides notice to the division of the court order.

15(8) The supplier is not required to disclose trade secret
16 information to the operator.

17(9) Upon receipt of a request for the release of trade secret
18information to the public, the following procedure applies:

19(A) The division shall notify the supplier of the request in
20writing by certified mail, return receipt requested.

21(B) The division shall release the information to the public, but
22not earlier than 60 days after the date of mailing the notice of the
23request for information, unless, prior to the expiration of the 60-day
24period, the supplier obtains an action in an appropriate court for a
25declaratory judgment that the information is subject to protection
26or for a preliminary injunction prohibiting disclosure of the
27information to the public and provides notice to the division of
28that action.

29(10) The division shall develop a timely procedure to provide
30trade secret information in the following circumstances:

31(A) To an officer or employee of the division, the state, local
32governments, including, but not limited to, local air districts, or
33the United States, in connection with the official duties of that
34officer or employee, to a health professional under any law for the
35protection of health, or to contractors with the division or other
36government entities and their employees if, in the opinion of the
37division, disclosure is necessary and required for the satisfactory
38performance of a contract, for performance of work, or to protect
39health and safety.

P167  1(B) To a health professional in the event of an emergency or to
2diagnose or treat a patient.

3(C) In order to protect public health, to any health professional,
4 toxicologist, or epidemiologist who is employed in the field of
5public health and who provides a written statement of need. The
6written statement of need shall include the public health purposes
7of the disclosure and shall explain the reason the disclosure of the
8specific chemical and its concentration is required.

9(D) A health professional may share trade secret information
10with other persons as may be professionally necessary, in order to
11diagnose or treat a patient, including, but not limited to, the patient
12and other health professionals, subject to state and federal laws
13restricting disclosure of medical records including, but not limited
14to, Chapter 2 (commencing with Section 56.10) of Part 2.6 of
15Division 1 of the Civil Code.

16(E) For purposes of this paragraph, “health professional” means
17any person licensed or certified pursuant to Division 2
18(commencing with Section 500) of the Business and Professions
19Code, the Osteopathic Initiative Act, the Chiropractic Initiative
20Act, or the Emergency Medical Services System and the
21Prehospital Emergency Medical Care Personnel Act (Division 2.5
22(commencing with Section 1797) of the Health and Safety Code).

23(F) A person in possession of, or access to, confidential trade
24secret information pursuant to the provisions of this subdivision
25may disclose this information to any person who is authorized to
26receive it. A written confidentiality agreement shall not be required.

27(k) A well granted confidential status pursuant to Section 3234
28shall not be required to disclose well stimulation treatment fluid
29information pursuant to subdivision (g) until the confidential status
30of the well ceases. Notwithstanding the confidential status of a
31well, it is public information that a well will be or has been subject
32to a well stimulation treatment.

33(l) The division shall perform random periodic spot check
34inspections to ensure that the information provided on well
35stimulation treatments is accurately reported, including that the
36estimates provided prior to the commencement of the well
37stimulation treatment are reasonably consistent with the well
38history.

39(m) Where the division shares jurisdiction over a well or the
40well stimulation treatment on a well with a federal entity, the
P168  1division’s rules and regulations shall apply in addition to all
2applicable federal laws and regulations.

3(n) This article does not relieve the division or any other agency
4from complying with any other provision of existing laws,
5regulations, and orders.

6(o) Well stimulation treatments used for routine maintenance
7of wells associated with underground storage facilities where
8natural gas is injected into and withdrawn from depleted or partially
9depleted oil or gas reservoirs pursuant to subdivision (a) of Section
103403.5 are not subject to this section.

11begin insert

begin insertSEC. 131.end insert  

end insert

begin insertSection 3161 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
12amended to read:end insert

13

3161.  

(a) The division shall finalizebegin delete and implementend delete the
14regulations governing this article on or before January 1, 2015.
15begin insert Notwithstanding any other laws, the regulations shall become
16effective on July 1, 2015.end insert

17(b) The division shall allow, until regulationsbegin delete governing this
18articleend delete
begin insert specified in subdivision (b) of Section 3160end insert are finalized
19and implemented, and upon written notification by an operator,
20all of the activities defined in Section 3157, provided all of the
21following conditions are met:

22(1) The owner or operator certifies compliance withbegin insert paragraph
23(2) ofend insert
subdivision (b) of,begin delete subparagraphs (A) to (F), inclusive, of
24paragraph (1) andend delete
paragraphsbegin delete (6)end deletebegin insert (1), (6),end insert and (7) of subdivision
25(d) of, andbegin insert paragraph (1) ofend insert subdivision (g) of, Section 3160.

26(2) The owner or operatorbegin delete providesend deletebegin insert shall provideend insert a complete
27well history, incorporating the information required by Section
283160, to the division on or before March 1, 2015.

29(3) begin insert(A)end insertbegin insertend insertThe divisionbegin delete conductsend deletebegin insert commences the preparation ofend insert
30 an environmental impact report (EIR) pursuant to the California
31Environmental Quality Act (Division 13 (commencing with Section
3221000)),begin delete in orderend delete to provide the public with detailed information
33regarding any potential environmental impacts of well stimulation
34in the state.

begin delete

35(4)

end delete

36begin insert(B)end insert Any environmental review conducted by the division shall
37fully comply withbegin delete allend deletebegin insert bothend insert of the following requirements:

begin delete

38(A)

end delete

39begin insert(i)end insert The EIR shall be certified by the division as the lead agency,
40no later than July 1, 2015.

begin delete

P169  1(B)

end delete

2begin insert(ii)end insert The EIR shall address the issue of activities that may be
3conducted as defined in Section 3157 and that may occur at oil
4wells in the state existing prior to, and after,begin delete the effective date of
5this section.end delete
begin insert January 1, 2014.end insert

6(C) begin deleteThe EIR shall not conflict with an EIR conducted by a local
7lead agency that is certified on or before July 1, 2015. Nothing in
8this section prohibits end delete
begin insertThis paragraph does not prohibit end inserta local lead
9agency from conducting its own EIR.

begin delete

10(5)

end delete

11begin insert(4)end insert The division ensures that all activities pursuant to this section
12fully conform with this article and other applicable provisions of
13law on or before December 31, 2015, through a permitting process.

begin delete

14(6)

end delete

15begin insert(c)end insert The division has the emergency regulatory authority to
16implement the purposes of this section.begin insert Notwithstanding Section
1711349.6 of the Government Code or other laws, an emergency
18regulation adopted pursuant to this subdivision implementing
19subdivision (b) shall be filed with, but shall not be disapproved
20by, the Office of Administrative Law, and shall remain in effect
21until revised by the director or July 1, 2015, whichever is earlier.end insert

begin insert

22(d) This section does not limit the authority of the division to
23take appropriate action pursuant to subdivision (a) of Section
243106.

end insert
25begin insert

begin insertSEC. 132.end insert  

end insert

begin insertSection 4629.5 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
26amended to read:end insert

27

4629.5.  

(a) (1) begin deleteOn and after January 1, 2013, there end deletebegin insertThere end insertis
28hereby imposed an assessment on a person who purchases a lumber
29product or an engineered wood product for the storage, use, or
30other consumption in this state, at the rate of 1 percent of the sales
31price.

32(2) A retailer shall charge the person the amount of the
33assessment as a charge that is separate from, and not included in,
34any other fee, charge, or other amount paid by the purchaser.

35(3) The retailer shall collect the assessment from the person at
36the time of sale, and may retainbegin delete an amount equal to the amount of
37reimbursement, as determined by the State Board of Equalization
38pursuant to regulationsend delete
begin insert reimbursement pursuant to Sections 2000
39and 2001 of Title 18 of the California Code of Regulations, as
40approved by the State Board of Equalization at its September 10,
P170  12013, meetingend insert
, forbegin delete anyend deletebegin insert startupend insert costs associated with the collection
2of the assessment, to be taken on the first return or next consecutive
3returns until the entire reimbursement amount is retained.begin delete For
4purposes of this paragraph, the State Board of Equalization may
5adopt emergency regulations pursuant to Section 11346.1 of the
6Government Code. The adoption of any regulation pursuant to this
7paragraph shall be deemed to be an emergency and necessary for
8the immediate preservation of the public peace, health, and safety,
9and general welfare.end delete

10(b) The retailer shall separately state the amount of the
11assessment imposed under this section on the sales receipt given
12by the retailer to the person at the time of sale.

13(c) The State Board of Equalization shall administer and collect
14the assessment imposed by this section pursuant to the Fee
15Collection Procedures Law (Part 30 (commencing with Section
1655001) of Division 2 of the Revenue and Taxation Code) with
17those changes as may be necessary to conform tobegin delete the provisions
18ofend delete
this article. For purposes of this section, the references in the
19Fee Collection Procedures Law to “fee” shall include the
20assessment imposed by this section.

21(d) (1) The assessment is required to be collected by a retailer
22and any amount unreturned to the person who paid an amount in
23excess of the assessment, but was collected from the person under
24the representation by the retailer that it was owed as an assessment,
25constitutes debts owed by the retailer to this state.

26(2) begin deleteEvery end deletebegin insertA end insertperson who purchases a lumber product or an
27engineered wood product for storage, use, or other consumption
28in this state is liable for the assessment until it has been paid to
29this state, except that payment to a retailer relieves the person from
30further liability for the assessment. Any assessment collected from
31a person that has not been remitted to the State Board of
32Equalization shall be a debt owed to the state by the retailer
33required to collect and remit the assessment.begin delete Nothing in this part
34shallend delete
begin insert This part does notend insert impose any obligation upon a retailer to
35take any legal action to enforce the collection of the assessment
36imposed by this section.

37(e) Except as provided in paragraph (3) of subdivision (a), the
38State Board of Equalization may prescribe, adopt, and enforce
39regulations relating to the administration and enforcement of this
P171  1section, including, but not limited to, collections, reporting, refunds,
2and appeals.

3(f) (1) The assessment imposed by this section is due and
4payable to the State Board of Equalization quarterly on or before
5the last day of the month next succeeding each quarterly period.

6(2) On or before the last day of the month following each
7quarterly period, a return for the preceding quarterly period shall
8be filed with the State Board of Equalization using electronic
9media, in the form prescribed by the State Board of Equalization.
10Returns shall be authenticated in a form or pursuant to methods,
11as prescribed by the State Board of Equalization.

12(g) For purposes of this section, all of the following shall apply:

13(1) “Purchase” has the same meaning as that term is defined in
14Section 6010 of the Revenue and Taxation Code.

15(2) “Retailer” has the same meaning as that term is defined in
16Section 6015 of the Revenue and Taxation Code.

17(3) “Sales price” has the same meaning as that term is defined
18in Section 6011 of the Revenue and Taxation Code.

19(4) “Storage” has the same meaning as that term is defined in
20Section 6008 of the Revenue and Taxation Code.

21(5) “Use” has the same meaning as that term is defined in
22Section 6009 of the Revenue and Taxation Code.

23(h) (1) begin deleteEvery end deletebegin insertA end insertperson required to pay the assessment imposed
24under this article shall register with the State Board of Equalization.
25Every application for registration shall be made in a form
26prescribed by the State Board of Equalization and shall set forth
27the name under which the applicant transacts or intends to transact
28business, the location ofbegin delete his or herend deletebegin insert the person’send insert place or places of
29business, andbegin delete suchend deletebegin insert anyend insert other informationbegin delete asend deletebegin insert thatend insert the State Board
30of Equalization may require. An application for registration shall
31be authenticated in a form or pursuant to methods as may be
32prescribed by the State Board of Equalization.

33(2) An application for registration filed pursuant to this section
34may be filed using electronic media as prescribed by the State
35Board of Equalization.

36(3) Electronic media includes, but is not limited to, computer
37modem, magnetic media, optical disc, facsimile machine, or
38telephone.

39begin insert

begin insertSEC. 133.end insert  

end insert

begin insertSection 4629.6 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
40amended to read:end insert

P172  1

4629.6.  

Moneys deposited in the fund shall, upon appropriation
2by the Legislature, only be expended for the following purposes:

3(a) To reimburse the State Board of Equalization for its
4administrative costs associated with the administration, collection,
5audit, and issuance of refunds related to the lumber products and
6engineered wood assessment established pursuant to Section
74629.5.

8(b) To pay refunds issued pursuant to Part 30 (commencing
9with Section 55001) of Division 2 of the Revenue and Taxation
10Code.

11(c) To support the activities and costs of the department, the
12Department of Conservation, the Department of Fish andbegin delete Gameend delete
13begin insert Wildlifeend insert, the State Water Resources Control Board, and regional
14water quality control boards associated with the review of projects
15or permits necessary to conduct timber operations. On or after July
161, 2013, except for fees applicable for fire prevention or protection
17within state responsibility area classified lands or timber yield
18assessments, no currently authorized or required fees shall be
19charged by the agencies listed in this subdivision for activities or
20costs associated with the review of a project, inspection and
21oversight of projects, and permits necessary to conduct timber
22operations of those departments and boards.

23(d) For transfer to the department’s Forest Improvement
24Program, upon appropriation by the Legislature, for forest resources
25improvement grants and projects administered by the department
26pursuant to Chapter 1 (commencing with Section 4790) and
27Chapter 2 (commencing with Section 4799.06) of Part 2 of Division
284.

29(e) To fund existing restoration grant programsbegin insert, with priority
30given to the Fisheries Restoration Grant Program administered
31by the Department of Fish and Wildlife and grant programs
32administered by state conservanciesend insert
.

begin insert

33(f) (1) As a loan to the Department of Fish and Wildlife for
34activities to address environmental damage occurring on forest
35lands resulting from marijuana cultivation. Not more than five
36hundred thousand dollars ($500,000) may be loaned from the fund
37in a fiscal year pursuant to this paragraph. This paragraph shall
38become inoperative on July 1, 2017.

end insert
begin insert

39(2) Any funds deposited into the Timber Regulation and Forest
40Restoration Fund pursuant to subdivision (d) or (f) of Section
P173  112025 of the Fish and Game Code shall be credited toward loan
2repayment.

end insert
begin insert

3(3) Moneys from the General Fund shall not be used to repay
4a loan authorized pursuant to this subdivision.

end insert
begin delete

5(f)

end delete

6begin insert(g)end insert To the department, upon appropriation by the Legislature,
7for fuel treatment grants and projects pursuant to authorities under
8the Wildland Fire Protection and Resources Management Act of
91978 (Article 1 (commencing with Section 4461) of Chapter 7 of
10Part 2 of Division 4).

begin delete

11(g)

end delete

12begin insert(h)end insert To the department, upon appropriation by the Legislature,
13to provide grants to local agencies responsible for fire protection,
14qualified nonprofits, recognized tribes, local and state governments,
15and resources conservation districts, undertaken on a state
16responsibility area (SRA) or on wildlands not in an SRA that pose
17a threat to the SRA, to reduce the costs of wildland fire suppression,
18reduce greenhouse gas emissions, promote adaptation of forested
19landscapes to changing climate, improve forest health, and protect
20homes and communities.

21begin insert

begin insertSEC. 134.end insert  

end insert

begin insertSection 4629.7 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
22amended to read:end insert

23

4629.7.  

All grants made pursuant to subdivisionsbegin delete (f)end deletebegin insert (g)end insert and
24begin delete (g)end deletebegin insert (h)end insert of Section 4629.6 shall fund activities that do any of the
25following, in order of priority:

26(a) Improve forest health.

27(b) Promote climate mitigation strategies included in the
28California Global Warming Solutions Act of 2006 (Division 25.5
29(commencing with Section 38500) of the Health and Safety Code)
30scoping plan for the forest sector, as adopted by the State Air
31Resources Control Board, or as amended through subsequent
32actions of that board.

33(c) Promote climate change adaptation strategies for the forest
34sector, as adopted by the Natural Resources Agency in the
35California Climate Adaptation Strategy.

36begin insert

begin insertSEC. 135.end insert  

end insert

begin insertSection 4629.8 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
37amended to read:end insert

38

4629.8.  

(a) Funds deposited in the Timber Regulation and
39Forest Restoration Fund shall be appropriated in accordance with
40the following priorities:

P174  1(1) First priority shall be for funding associated with the
2administration and delivery of responsibilities identified in
3subdivisions (a) to (c), inclusive, of Section 4629.6.

4(2) Only after paragraph (1) is funded, the second priority shall
5be, if deposits are sufficient in future years to maintain the fund,
6by 2016, at a minimum reserve of four million dollars ($4,000,000),
7for use and appropriation by the Legislature in years during which
8revenues to the account are projected to fall short of the ongoing
9budget allocations for support of the activities identified in
10paragraph (1).

11(3) Only after paragraphs (1) and (2) are funded, the third
12priority shall be in support of activities designated in subdivisions
13(d)begin delete and (e)end deletebegin insert, (e), and (f)end insert of Section 4629.6.

14(4) Only after paragraphs (1), (2), and (3) are funded, the fourth
15priority shall be to support the activities designated in subdivisions
16begin delete (f)end deletebegin insert (g)end insert andbegin delete (g)end deletebegin insert (h)end insert of Section 4629.6.

17(b) begin deleteNo funds shall end deletebegin insertFunds shall not end insertbe used to pay for or
18reimburse any requirements, including mitigation of a project
19proponent or applicant, as a condition of any permit.

20begin insert

begin insertSEC. 136.end insert  

end insert

begin insertSection 5009 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
21amended to read:end insert

22

5009.  

The Statebegin delete park contingent fundend deletebegin insert Park Contingent Fundend insert
23 is continued in existence. All moneys collected or received from
24begin delete gifts orend deletebegin insert contractual agreements, donations, gifts,end insert bequests, orbegin delete from
25municipal or countyend delete
begin insert local governmentend insert appropriationsbegin delete or donationsend delete
26 for improvements or additions to thebegin delete Stateend deletebegin insert stateend insert parkbegin delete systemend deletebegin insert system,end insert
27 shall be deposited in the Statebegin delete treasuryend deletebegin insert Treasuryend insert to the credit of
28the contingent fund. All moneysbegin delete soend delete deposited shall be used for the
29begin delete improvementend deletebegin insert improvement, maintenance, operation,end insert or
30administration ofbegin delete Stateend deletebegin insert stateend insert parks, or the acquisition of additional
31lands and properties for thebegin delete Stateend deletebegin insert stateend insert park system, in accordance
32with the terms of thebegin insert agreement, donation,end insert gift,begin delete bequest or
33municipal or countyend delete
begin insert bequest, or local governmentend insert appropriation
34begin delete or donationend delete from which the moneys are derived.

35begin insert

begin insertSEC. 137.end insert  

end insert

begin insertSection 5010.6 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
36amended to read:end insert

37

5010.6.  

(a) For purposes of this section, “subaccount” means
38the State Parks Revenue Incentive Subaccount created pursuant
39to this section.

P175  1(b) The State Parks Revenue Incentive Subaccount is hereby
2created within the State Parks and Recreation Fund and the
3Controller shall annually transferbegin delete fifteen million three hundred
4forty thousand dollars ($15,340,000)end delete
begin insert four million three hundred
5forty thousand dollars ($4,340,000)end insert
from the State Parks and
6Recreation Fund to the subaccount.

7(c) Notwithstanding Section 13340 of the Government Code,
8the funds in the subaccount are hereby continuously appropriated
9to the departmentbegin delete to create incentivesend delete forbegin insert activities, programs, andend insert
10 projects, including, but not limited to, capital outlay projects, that
11are consistent with the mission of the department and thatbegin delete generate
12revenue, except the department shall not expend from the
13subaccount more than eleven million dollars ($11,000,000)
14annually pursuant to Section 5003.end delete
begin insert increase the department’s
15capacity to generate revenue and to implement the revenue
16generation program developed pursuant to Section 5010.7.
17Expenditures from the subaccount may include expenditures for
18staffing entry points, including department employees, seasonal
19employees, state and local conservation corps, individuals qualified
20pursuant to Chapter 0908 of the Department Operations Manual,
21and employees of organizations with agreements with state parks
22pursuant to Sections 513, 5009.1, 5009.3, and 5080. Activities,
23programs, and projects funded by the subaccount shall each
24include all of the following:end insert

begin insert

25(1) A clear description of the proposed use of funds.

end insert
begin insert

26(2) A timeframe for implementation of the activity, program, or
27project.

end insert
begin insert

28(3) A projection of revenues, including annual income, fees,
29and projected usage rates.

end insert
begin insert

30(4) A projection of costs, including design, planning,
31construction, operation, staff, maintenance, marketing, and
32information technology.

end insert
begin insert

33(5) A market analysis demonstrating demand for the activity,
34project, or program.

end insert
begin insert

35(6) A projected rate of return on the investment.

end insert

36(d) The Office of State Audits and Evaluations shall review the
37begin delete activitiesend deletebegin insert activities, programs, and projectsend insert funded from the
38subaccount pursuant to subdivision (c) to ensure appropriate
39internal controls are in place. The department shall reimburse the
P176  1Office of State Audits and Evaluations from the subaccount for
2any costs related to the review.

3(e) The revenue generated frombegin insert activities, programs, andend insert
4 projects funded by the subaccountbegin delete shall be deposited in the
5subaccount andend delete
are continuously appropriated for expenditure by
6the departmentbegin delete in accordance with the following:end deletebegin insert pursuant to
7subdivisions (c) and (d) of Section 5010.7.end insert

begin delete

8(1) At least 50 percent of the revenue generated shall be
9expended in the district of the department that earned that revenue,
10as an incentive for revenue generation.

11(2) The remaining revenue may be expended by the department
12pursuant to subdivision (c), including, but not limited to, for
13expenditure pursuant to Section 5003.

end delete

14(f) The funds in the subaccount shall be available for
15encumbrance and expenditure until June 30,begin delete 2014,end deletebegin insert 2019,end insert and for
16liquidation until June 30,begin delete 2016.end deletebegin insert 2021.end insert

17(g)  This section shall become inoperative on June 30,begin delete 2016,end delete
18begin insert 2021,end insert and, as of January 1,begin delete 2017,end deletebegin insert 2022,end insert is repealed, unless a later
19enacted statute, that becomes operative on or before January 1,
20begin delete 2017,end deletebegin insert 2022,end insert deletes or extends the dates on which it becomes
21inoperative and is repealed.

22begin insert

begin insertSEC. 138.end insert  

end insert

begin insertSection 5010.6.5 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
23amended to read:end insert

24

5010.6.5.  

On July 1,begin delete 2016,end deletebegin insert 2021,end insert the Controller shall transfer
25any unexpended funds remaining in the State Parks Revenue
26Incentive Subaccount created pursuant to Section 5010.6 to the
27State Parks and Recreation Fund.

28begin insert

begin insertSEC. 139.end insert  

end insert

begin insertSection 5010.7 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
29amended to read:end insert

30

5010.7.  

(a) The department shall develop a revenue generation
31program as an essential component of a long-term sustainable park
32funding strategy. On or beforebegin delete October 1, 2012, the department
33shall assign a two-year revenue generation target to each district
34under the control of the department. The revenue target may be
35amended annually for subsequent years, beginning in the 2015-16
36fiscal yearend delete
begin insert July 1, 2014, and annually thereafter, the department
37shall assign a revenue generation target to each district under the
38control of the departmentend insert
. The department shall develop guidelines
39for districts to report the use of funds generated by the revenue
P177  1 generation program, and shall post information and copies of the
2reports on its Internet Web site.

3(b) The California State Park Enterprise Fund is hereby created
4in the State Treasury as a working capital fund, and the revenue
5shall be available to the department upon appropriation by the
6begin delete Legislature, for the expenditures for the purposes specified in this
7sectionend delete
begin insert Legislature for capital outlay or support expenditures for
8revenue generating investments in state parks. These investments
9may include, but are not limited to, planning and implementation
10of a statewide electronic fee collection system that includes
11installation of modern fee collection equipment and technologies
12to enhance collection of state park users fees and that will enable
13park users to pay fees with commonly used forms of electronic
14fund transfers, including, but not limited to, credit and debit card
15transactions, and other park revenue generating projects,end insert
and shall
16be available for encumbrance and expenditure until June 30,begin delete 2014,end delete
17begin insert 2019,end insert and for liquidation until June 30,begin delete 2016.end deletebegin insert 2021.end insert

begin insert

18(1) The department shall prepare guidelines for districts to
19apply for funds for capital projects that are consistent with this
20subdivision.

end insert
begin insert

21(2) The guidelines prepared pursuant to this paragraph shall
22require all of the following:

end insert
begin insert

23(A) A clear description of the proposed use of funds.

end insert
begin insert

24(B) A timeframe of implementation of the capital project.

end insert
begin insert

25(C) A projection of revenue, including annual income, fees, and
26projected usage rates.

end insert
begin insert

27(D) A projection of costs, including design, planning,
28construction, operation, staff, maintenance, marketing, and
29information technology.

end insert
begin insert

30(E) A market analysis demonstrating demand for the project.

end insert
begin insert

31(F) A projected rate of return on the investment.

end insert

32(c) Thebegin delete incrementalend delete revenue generated by the revenue generation
33program developed pursuant to subdivision (a) shall be deposited
34into the State Parks and Recreation Fund. Revenue identified as
35 being in excess of the revenue targets shall be transferred to the
36State Parks Revenue Incentive Subaccount, established pursuant
37to Section 5010.6, on or before June 1, annually.

38(d) Moneysbegin delete appropriated to the departmentend deletebegin insert transferred to the
39State Parks Revenue Incentive Subaccountend insert
pursuant to subdivision
40begin delete (b) and Section 5010.6end deletebegin insert (c)end insert shall be expended as follows:

P178  1(1) (A) The department shall allocate 50 percent of the total
2amount of revenues deposited into the State Parks Revenue
3Incentive Subaccount pursuant to subdivision (c), generated by a
4park district to that district if the amount of revenues generated
5exceeds the targeted revenue amount prescribed in the revenue
6generation program. The revenues to be allocated to a park district
7that fails to achieve the revenue target shall remain in thebegin delete fund.end delete
8begin insert subaccount.end insert

9(B) With the approval of the director, each district shall use the
10funds it receivesbegin delete from the department from the revenue generation
11programend delete
begin insert pursuant to this sectionend insert to improve the parks in that
12district through revenue generation programs and projects and
13other activities that will assist in the district’s revenue generation
14activities, and the programs, projects, and other activities shall be
15consistent with the mission and purpose of each unit and with the
16plan developed for the unit pursuant to subdivision (a) of Section
175002.2.

18(C) The department shall report to the Legislature, commencing
19on July 1, 2014, and annually on or before each July 1 thereafter,
20on the revenue distributed to each district pursuant to this section.

21(2) The department shall use 50 percent of the funds deposited
22into the State Parks Revenue Incentive Subaccount pursuant to
23subdivision (c) for the following purposes:

24(A) To fund the capital costs of construction and installation of
25new revenue and fee collection equipment and technologies and
26other physical upgrades to existing state park system lands and
27facilities.

28(B) For costs of restoration, rehabilitation, and improvement of
29the state park system and its natural, historical, and visitor-serving
30resources that enhance visitation and are designed to create
31opportunities to increase revenues.

32(C) For costs to the department to implement the action plan
33required to be developed by the department pursuant to Section
345019.92 of the Public Resources Code.

begin delete

35(D) To establish a revolving loan program pursuant to
36subdivision (e).

37(e) (1) The department shall establish a revolving loan program
38and prepare guidelines establishing a process for those districts
39that receive moneys under paragraph (1) of subdivision (d) to apply
40for funds that exceed the amount of funds provided to the districts
P179  1pursuant to paragraph (1) of subdivision (d). It is the intent of the
2Legislature that the revolving loan program fund only those
3projects that will contribute to the success of the department’s
4revenue generation program and the continual growth of the fund
5over time. Districts may apply for funds for capital projects,
6personnel, and operations that are consistent with this subdivision,
7including the costs of preparing an application. The department
8shall provide an annual accounting to the Department of Finance
9and the relevant legislative committees of the use of those funds
10in accordance with the purposes outlined in Proposition 40 (the
11California Clean Water, Clean Air, Safe Neighborhood Parks, and
12Coastal Protection Bond Act of 2002 (Chapter 1.696 (commencing
13with Section 5096.600) of Division 5) and Proposition 84 (the Safe
14Drinking Water, Water Quality and Supply, Flood Control, River
15and Coastal Protection Bond Act of 2006 (Division 43
16(commencing with Section 75001)), voter-approved bond acts.

17(2) The guidelines prepared pursuant to paragraph (1) shall
18require that applications for funding include all of the following:

19(A) A clear description of the proposed use of funds, including
20maps and other drawings, as applicable.

21(B) A market analysis demonstrating demand for the project or
22service.

23(C) The projected lifespan of the project, which must be at least
2420 years for a proposed capital project.

25(D) A projection of revenues, including the specific assumptions
26for annual income, fees, occupancy rates, pricing, and other
27relevant criteria upon which the projection is based.

28(E) A projection of costs, including, but not limited to, design,
29planning, construction, operation, staff, maintenance, marketing,
30and information technology.

31(F) The timeframe for implementation, including all necessary
32reviews and permitting.

33(G) The projected net return on investment of the life of the
34project.

35(H) Provisions providing for mandatory reporting on the project
36by districts to the department.

37(f) The department shall rank all of the proposals and award
38loans for projects or other activities to districts based on the
39following criteria, as well as other considerations that the
40department considers relevant:

P180  1(1) Return on investment.

2(2) Length of time for implementation.

3(3) Length of time for the project debt to be retired.

4(4) Percentage of total project costs paid by the district or by a
5source of matching funds.

6(5) Annual operating costs.

7(6) Capacity of project to improve services or park experiences,
8or both, for park visitors.

end delete
begin insert

9(D) Pursuant to subdivision (c) of Section 5010.6, for
10expenditures to support revenue generation projects that include,
11but are not limited to, staffing kiosks, campgrounds, and parking
12lots.

end insert
begin delete

13(g)

end delete

14begin insert(e)end insert The funds generated by the revenue generation program
15shall not be used by the department to expand the park system,
16unless there is significant revenue generation potential from such
17an expansion.

begin delete

18(h)

end delete

19begin insert(f)end insert Notwithstanding Section 5009, moneys received by the
20department from private contributions and other public funding
21sources may also be deposited into the California State Park
22Enterprise Fundbegin insert and the State Parks Revenue Incentive Subaccountend insert
23 for use for the purposes of subdivision (c) and subdivision (d).

begin delete

24(i)

end delete

25begin insert(g)end insert The department shall provide all relevant information on its
26Internet Web site concerning howbegin delete the working capital funds are
27spent, including the guidelines and the department’s ranking criteria
28for each funded loan agreement.end delete
begin insert funds in the State Parks and
29Recreation Revenue Incentive Subaccount and the California State
30Park Enterprise Fund are spent.end insert

begin delete

31(j) A project agreement shall be negotiated between the
32department and a park unit and the total amount of requested
33project costs shall be allocated to the district as soon as is feasible
34when the agreement is finalized.

end delete
begin delete

35(k)

end delete

36begin insert(h)end insert The department may recoup its costs for implementing and
37administering the working capital from the fund.

38begin insert

begin insertSEC. 140.end insert  

end insert

begin insertArticle 1.5 (commencing with Section 5019.10) is
39added to Chapter 1 of Division 5 of the end insert
begin insertPublic Resources Codeend insertbegin insert,
40to read:end insert

begin insert

 

P181  1Article begin insert1.5.end insert  The Parks Project Revolving Fund
2

 

3

begin insert5019.10.end insert  

(a) The Parks Project Revolving Fund is hereby
4established in the State Treasury. Except as otherwise specified
5in this section, upon approval of the Department of Finance there
6shall be transferred to, or deposited in, the fund all money
7appropriated, contributed, or made available from any source,
8including sources other than state appropriations, for expenditure
9on work within the powers and duties of the department with
10respect to the construction, alteration, repair, and improvement
11of state park facilities, including, but not limited to, services, new
12construction, major construction and equipment, minor
13construction, maintenance, improvements, and equipment, and
14other building and improvement projects for which an
15appropriation is made or, as to funds from sources other than state
16appropriations, as may be authorized by written agreement
17between the contributor or contributors of funds and the
18department and approved by the Department of Finance.

19(b) Money from state sources transferred to, or deposited in,
20the fund for major construction shall be limited to the amount
21necessary based on receipt of competitive bids. Money transferred
22for this purpose shall be upon the approval of the Department of
23Finance. Any amount available, in the state appropriation, that is
24in excess of the amount necessary based on receipt of competitive
25bids, shall be immediately transferred to the credit of the fund from
26which the appropriation was made. Money in the fund also may
27be expended, upon approval of the Department of Finance, to
28finance the cost of a construction project within the powers and
29duties of the department for which the federal government will
30contribute a partial cost thereof, if written evidence has been
31received from a federal agency indicating that money has been
32appropriated by Congress and the federal government, and that
33the federal government will pay to the state the amount specified
34upon the completion of construction of the project. The director
35may approve plans, specifications, and estimates of cost, and
36advertise for and receive bids on, those projects in anticipation of
37the receipt of the written evidence. Money transferred or deposited
38for the purposes of this subdivision is continuously appropriated
39to, and available for expenditure by, the department for the
40purposes for which it is appropriated, contributed, or made
P182  1available, without regard to fiscal years and irrespective of the
2provisions of Section 13340 of the Government Code.

3(c) As used in this article, “fund” means the Parks Project
4Revolving Fund.

5

begin insert5019.11.end insert  

The department shall file against the fund all claims
6covering expenditures incurred in connection with services, new
7construction, major construction and equipment, minor
8construction, maintenance, improvements, and equipment, and
9other building and improvement projects, and the Controller shall
10draw his or her warrant therefor against that fund.

11

begin insert5019.12.end insert  

The department shall keep a record of all expenditures
12chargeable against each specific portion of the fund. Any
13unencumbered balance in any portion of the fund, either within
14three months after completion of the project for which the portion
15was transferred or within three years from the time the portion
16was transferred or deposited therein, whichever is earlier, shall
17be withdrawn from the fund and transferred to the credit of the
18fund from which the appropriation was made. As to funds from
19other than state appropriations, they shall be paid out or refunded
20as provided in the agreement relating to the contributions. The
21Department of Finance may approve an extension of the time of
22withdrawal. For the purpose of this section, an estimate, prepared
23by the department upon receipt of bids, of the amount required for
24supervision, engineering, and other items, if any, necessary for
25the completion of a project, on which a construction contract has
26been awarded, shall be deemed a valid encumbrance and shall be
27included with any other valid encumbrances in determining the
28amount of an unencumbered balance.

29

begin insert5019.13.end insert  

At any time, the department, without furnishing a
30voucher or itemized statement, may withdraw from the fund a sum
31not to exceed five hundred thousand dollars ($500,000). Any sum
32withdrawn pursuant to this section shall be used as a revolving
33fund when payments of compensation earned or cash advances
34are necessary with respect to the construction, alteration, repair,
35or improvement of state park facilities.

36

begin insert5019.14.end insert  

The department shall annually submit to the
37Department of Finance a report that reconciles, by project, all of
38the following:

39(a) Amounts transferred to the fund.

40(b) Amounts expended from the fund.

P183  1(c) In cases of project savings or completion, or both,
2unexpended amounts withdrawn from the fund and transferred to
3the credit of the fund, paid out, or refunded, as provided in Section
45019.12.

5

begin insert5019.15.end insert  

This article shall become inoperative on the date that
6is three years after the date that Section 5018.1 is repealed, and,
7as of January 1 immediately following that inoperative date, is
8repealed, unless a later enacted statute that is enacted before that
9January 1 deletes or extends the dates on which it becomes
10inoperative and is repealed.

end insert
11begin insert

begin insertSEC. 141.end insert  

end insert

begin insertSection 14507.5 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
12amended to read:end insert

13

14507.5.  

(a) “Community Conservation Corps” means a
14nonprofit public benefit corporation formed or operating pursuant
15to Part 2 (commencing with Section 5110) of Division 2 of Title
161 of the Corporations Code, or an agency operated by a city,
17county, or city and county, that is certified by the California
18Conservation Corps as meeting all of the following criteria:

19(1) The corps is organized in the form of supervised work crews
20and selects young men and women for participation on the basis
21of motivation for hard work, personal development, and public
22service, without regard to their prior employment or educational
23background, and consistent with Section 14402. Participation shall
24be for a period of one year, and may be extended.

25(2) The corps’ program is based upon a highly disciplined work
26experience, includes an educational component, and is designed
27to develop corpsmembers’ character and civic consciousness
28through rigorous work on public projects. The educational
29component of the corps’ program includes enrollment in a
30vocational education program, public or charter high school, or
31postsecondary community college.

32(3) The corps compensates corpsmembers at not less than the
33federal minimum wage, and provides corpsmembers assistance in
34obtaining permanent employment following their participation in
35the corps program.

36(4) The corps engages in recycling and litter abatement projects
37as well as projects that accomplish the conservationist and other
38purposes described in subdivisions (a) to (h), inclusive, of Section
3914300, and that assist agencies of local government and other
40nonprofit community organizations in developing, rehabilitating,
P184  1and restoring parklands, recreational facilities, and other
2community resources.

3(5) The corps consists of an average annual enrollment of not
4less than 50 corpsmembers between 18 and 25 years of age. In
5determining the average annual enrollment of a community
6conservation corps for the purposes ofbegin delete subdivision (a) of Section
714581,end delete
begin insert Section 14581.1,end insert the California Conservation Corps shall
8not include special corpsmembers, as described in Section 14303,
9who are employed by a community conservation corps.

10(b) The California Conservation Corps shall evaluate a
11community conservation corps for the purpose of determining its
12eligibility for certification, pursuant to this section, after it has
13completed 12 months of continuous operation, and annually
14thereafter.

15begin insert

begin insertSEC. 142.end insert  

end insert

begin insertSection 14552 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
16amended to read:end insert

17

14552.  

(a) The department shall establish and implement an
18auditing system to ensure that the information collected, and refund
19values and redemption payments paid pursuant to this division,
20comply with the purposes of this division. Notwithstanding
21Sections 14573 and 14573.5, the auditing system adopted by the
22department may include prepayment or postpayment controls.

23(b) (1) begin deleteOn or after January 1 of each year, the end deletebegin insertThe end insertdepartment
24may audit or investigate any action taken up tobegin delete threeend deletebegin insert fiveend insert years
25before the onset of the audit or investigation and may determine
26if there was compliance with this division and the regulations
27adopted pursuant to this division, during that period.

28(2) Notwithstanding any other provision of law establishing a
29shorter statute of limitation, the department may take an
30enforcement action, including, but not limited to, an action for
31restitution or to impose penalties, at any time withinbegin delete twoend deletebegin insert fiveend insert years
32after the department discovers, or with reasonable diligence, should
33have discovered, a violation of this division or the regulations
34adopted pursuant to this division.

35(c) During the conduct of any inspection, including, but not
36limited to, an inspection conducted as part of an audit or
37investigation, the entity that is the subject of the inspection shall,
38during its normal business hours, provide the department with
39immediate access to its facilities, operations, and any relevant
40record, that, in the department’s judgment, the department
P185  1determines are necessary to carry out this section to verify
2compliance with this division and the regulations adopted pursuant
3to this division.

4(1) The department may take disciplinary action pursuant to
5Section 14591.2 against any person who fails to provide the
6department with access pursuant to this subdivision including, but
7not limited to, imposing penalties and the immediate suspension
8or termination of any certificate or registration held by the operator.

9(2) The department shall protect any information obtained
10pursuant to this section in accordance with Section 14554, except
11that this section does not prohibit the department from releasing
12any information that the department determines to be necessary
13in the course of an enforcement action.

14(d) The auditing system adopted by the department shall allow
15for reasonable shrinkage in material due to moisture, dirt, and
16foreign material. The department, after an audit by a qualified
17auditing firm and a hearing, shall adopt a standard to be used to
18account for shrinkage and shall incorporate this standard in the
19audit process.

20(e) If the department prevails againstbegin delete anyend deletebegin insert anend insert entity inbegin delete anyend deletebegin insert aend insert civil
21or administrative action brought pursuant to this division, and
22money is owed to the department as a result of the action, the
23department may offset the amount against amounts claimed by the
24entity to be due to it from the department. The department may
25take this offset by withholding payments from the entity or by
26authorizing all processors to withhold payment to a certified
27recycling center.

28(f) If the department determines, pursuant to an audit or
29investigation, that a distributor or beverage manufacturer has
30overpaid the redemption payment or processing fee, the department
31may do either of the following:

32(1) Offset the overpayment against future payments.

33(2) Refund the payment pursuant to Article 3 (commencing with
34Section 13140) of Chapter 2 of Part 3 of Division 3 of Title 2 of
35the Government Code.

36begin insert

begin insertSEC. 143.end insert  

end insert

begin insertSection 14581 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
37amended to read:end insert

38

14581.  

(a) Subject to the availability of funds and in
39accordance with subdivisionbegin delete (c),end deletebegin insert (b),end insert the department shall expend
40the moneys set aside in the fund, pursuant to subdivision (c) of
P186  1Section 14580, for the purposes of this section in the following
2manner:

3(1) For each fiscal year, the department may expend the amount
4necessary to make the required handling fee payment pursuant to
5Section 14585.

6(2) Fifteen million dollars ($15,000,000) shall be expended
7annually for payments for curbside programs and neighborhood
8 dropoff programs pursuant to Section 14549.6.

begin delete

9(3) (A) Fifteen million dollars ($15,000,000), plus the
10proportional share of the cost-of-living adjustment, as provided in
11subdivision (b), shall be expended annually in the form of grants
12for beverage container litter reduction programs and recycling
13programs issued to either of the following:

14(i) Certified community conservation corps that were in
15existence on September 30, 1999, or that are formed subsequent
16to that date, that are designated by a city or a city and county to
17perform litter abatement, recycling, and related activities, if the
18city or the city and county has a population, as determined by the
19most recent census, of more than 250,000 persons.

20(ii) Community conservation corps that are designated by a
21county to perform litter abatement, recycling, and related activities,
22and are certified by the California Conservation Corps as having
23operated for a minimum of two years and as meeting all other
24criteria of Section 14507.5.

25(B) The grants provided pursuant to this paragraph shall not
26comprise more than 75 percent of the annual budget of a
27community conservation corps.

28(C) For the 2009-10 fiscal year only, the eight million two
29hundred fifty thousand dollars ($8,250,000) appropriated to the
30California Conservation Corps for certified local conservation
31corps by Item 3340-101-0133 of Sec. 2.00 of the 2009-10 Budget
32Act, as added by Section 166 of Chapter 1 of the Fourth
33Extraordinary Session of the Statutes of 2009, shall be in addition
34to the amounts expended pursuant to this paragraph.

35(4)

end delete

36begin insert(3)end insert (A) Ten million five hundred thousand dollars ($10,500,000)
37may be expended annually for payments of five thousand dollars
38($5,000) to cities and ten thousand dollars ($10,000) for payments
39to counties for beverage container recycling and litter cleanup
40activities, or the department may calculate the payments to counties
P187  1and cities on a per capita basis, and may pay whichever amount
2is greater, for those activities.

3(B) Eligible activities for the use of these funds may include,
4but are not necessarily limited to, support for new or existing
5curbside recycling programs, neighborhood dropoff recycling
6programs, public education promoting beverage container
7recycling, litter prevention, and cleanup, cooperative regional
8efforts among two or more cities or counties, or both, or other
9beverage container recycling programs.

10(C) These funds shall not be used for activities unrelated to
11beverage container recycling or litter reduction.

12(D) To receive these funds, a city, county, or city and county
13shall fill out and return a funding request form to the department.
14The form shall specify the beverage container recycling or litter
15reduction activities for which the funds will be used.

16(E) The department shall annually prepare and distribute a
17funding request form to each city, county, or city and county. The
18form shall specify the amount of beverage container recycling and
19litter cleanup funds for which the jurisdiction is eligible. The form
20shall not exceed one double-sided page in length, and may be
21submitted electronically. If a city, county, or city and county does
22not return the funding request form within 90 days of receipt of
23the form from the department, the city, county, or city and county
24is not eligible to receive the funds for that funding cycle.

25(F) For the purposes of this paragraph, per capita population
26shall be based on the population of the incorporated area of a city
27or city and county and the unincorporated area of a county. The
28department may withhold payment to any city, county, or city and
29county that has prohibited the siting of a supermarket site, caused
30a supermarket site to close its business, or adopted a land use policy
31that restricts or prohibits the siting of a supermarket site within its
32jurisdiction.

begin delete

33(5) (A)

end delete

34begin insert(4)end insert One million five hundred thousand dollars ($1,500,000) may
35be expended annually in the form of grants for beverage container
36recycling and litter reduction programs.

begin delete

37(B) Notwithstanding subdivision (f), the department shall not
38expend funds pursuant to this paragraph for the 2010 and 2011
39calendar years.

end delete
begin delete

40(6)

end delete

P188  1begin insert(5)end insert (A) The department shall expend the amount necessary to
2pay the processing payment established pursuant to Section 14575.
3The department shall establish separate processing fee accounts
4in the fund for each beverage container material type for which a
5processing payment and processing fee are calculated pursuant to
6Section 14575, or for which a processing payment is calculated
7pursuant to Section 14575 and a voluntary artificial scrap value is
8calculated pursuant to Section 14575.1, into which account shall
9be deposited both of the following:

10(i) All amounts paid as processing fees for each beverage
11container material type pursuant to Section 14575.

12(ii) Funds equal to the difference between the amount in clause
13(i) and the amount of the processing payments established in
14subdivision (b) of Section 14575, and adjusted pursuant to
15paragraph (2) of subdivision (c) of, and subdivision (f) of, Section
1614575, to reduce the processing fee to the level provided in
17subdivision (e) of Section 14575, or to reflect the agreement by a
18willing purchaser to pay a voluntary artificial scrap value pursuant
19to Section 14575.1.

20(B) Notwithstanding Section 13340 of the Government Code,
21the moneys in each processing fee account are hereby continuously
22appropriated to the department for expenditure without regard to
23fiscal years, for purposes of making processing payments pursuant
24to Section 14575.

begin delete

25(C) Notwithstanding the other provisions of this section and
26Section 14575, for the 2010 and 2011 calendar years, the total
27amount that the department may expend to reduce the amount of
28processing fees for each container type shall not exceed the total
29amount expended to reduce processing fees in the 2008 calendar
30year.

end delete
begin delete

31(7) (A)

end delete

32begin insert(6)end insert Up to five million dollars ($5,000,000) may be annually
33expended by the department for the purposes of undertaking a
34statewide public education and information campaign aimed at
35promoting increased recycling of beverage containers.

begin delete

36(B) Notwithstanding subdivision (f), the department shall not
37expend funds pursuant to this paragraph for the 2010 and 2011
38calendar years.

end delete
begin delete

39(8)

end delete

P189  1begin insert(7)end insert Up to ten million dollars ($10,000,000) may be expended
2annually by the department for quality incentive payments for
3empty glass beverage containers pursuant to Section 14549.1.

begin delete

4(9)

end delete

5begin insert(8)end insert (A) Up to ten million dollars ($10,000,000) may be
6expended annually by the department for market development
7payments for empty plastic beverage containers pursuant to Section
814549.2, until January 1, 2017.

9(B) begin deleteOn and after January 1, 2012, in end deletebegin insertIn end insertaddition to the amount
10specified in subparagraph (A), the department may expend the
11amount calculated pursuant to subparagraph (C) for market
12development payments for empty plastic beverage containers
13pursuant to Section 14549.2.

14(C) The department shall calculate the amount authorized for
15expenditure pursuant to subparagraph (B) in the following manner:

16(i) The department shall determine, on or before January 1,
172012, and annually thereafter, whether the amount of funds
18estimated to be necessary pursuant to clause (ii) of subparagraph
19(A) of paragraph (6) for deposit to a processing fee account
20established by the department for plastic beverage containers to
21make processing payments for plastic beverage containers for the
22current calendar year is less than the total amount of funds that
23were estimated to be necessary the previous calendar year pursuant
24to clause (ii) of subparagraph (A) of paragraph (6) for deposit to
25that processing fee account.

26(ii) If the amount estimated to be necessary for the current
27calendar year, as specified in clause (i), is less than the amount
28estimated to be necessary for the previous calendar year, the
29department shall calculate the amount of that difference.

30(iii) The department shall expend an amount that is not greater
31than 50 percent of the amount calculated pursuant to clause (ii)
32for purposes of subparagraph (B).

33(iv) If the department determines that the amount of funds
34authorized for expenditure pursuant to this subparagraph is not
35needed to make plastic market development payments pursuant to
36subparagraph (B) in the calendar year for which that amount is
37allocated, the department may expend those funds during the
38following year.

39(v) If the department determines that there are insufficient funds
40to both make the market development payments pursuant to
P190  1subparagraph (B) and to deposit the amount required by clause (ii)
2of subparagraph (A) of paragraph (6), for purposes of making the
3processing payments and reducing the processing fees pursuant to
4Section 14575 for plastic beverage containers, the department shall
5suspend the implementation of this subparagraph and subparagraph
6(B).

7(D) Subparagraphs (B) and (C) shall remain operative only until
8January 1, 2017.

begin delete

9(b) The fifteen million dollars ($15,000,000) that is set aside
10pursuant to paragraph (3) of subdivision (a) is a base amount that
11the department shall adjust annually to reflect any increases or
12decreases in the cost of living, as measured by the Department of
13Labor, or a successor agency, of the federal government.

end delete
begin delete

14(c)

end delete

15begin insert(b)end insert (1) If the department determines, pursuant to a review made
16pursuant to Section 14556, that there may be inadequate funds to
17pay the payments required by this division, the department shall
18immediately notify the appropriate policy and fiscal committees
19of the Legislature regarding the inadequacy.

20(2) On or before 180 days, but not less than 80 days, after the
21notice is sent pursuant to paragraph (1), the department may reduce
22or eliminate expenditures, or both, from the funds as necessary,
23according to the procedure set forth in subdivisionbegin delete (d).end deletebegin insert (c).end insert

begin delete

24(d)

end delete

25begin insert(c)end insert If the department determines that there are insufficient funds
26to make the payments specified pursuant to this section and Section
2714575, the department shall reduce all payments proportionally.

begin delete

28(e)

end delete

29begin insert(d)end insert Prior to making an expenditure pursuant to paragraphbegin delete (7)end delete
30begin insert (6)end insert of subdivision (a), the department shall convene an advisory
31committee consisting of representatives of the beverage industry,
32beverage container manufacturers, environmental organizations,
33the recycling industry, nonprofit organizations, and retailers to
34advise the department on the most cost-effective and efficient
35method of the expenditure of the funds for that education and
36information campaign.

begin delete

37(f)

end delete

38begin insert(e)end insert Subject to the availability of funds, the department shall
39retroactively pay in full any payments provided in this section that
P191  1have been proportionally reduced during the period of January 1,
22010, through June 30, 2010.

3begin insert

begin insertSEC. 144.end insert  

end insert

begin insertSection 14581.1 is added to the end insertbegin insertPublic Resources
4Code
end insert
begin insert, to read:end insert

begin insert
5

begin insert14581.1.end insert  

(a) The department shall expend in each fiscal year,
6from the moneys set aside in the fund pursuant to subdivision (c)
7of Section 14580, twenty million nine hundred seventy-four
8thousand dollars ($20,974,000), plus the cost-of-living adjustment,
9as provided in subdivision (c), less fifteen million dollars
10($15,000,000), in the form of grants for beverage container litter
11reduction programs and recycling programs, including education
12and outreach, issued to either of the following:

13(1) Certified community conservation corps that were in
14existence on September 30, 1999, or that are formed subsequent
15to that date, that are designated by a city or a city and county to
16perform litter abatement, recycling, and related activities, if the
17city or the city and county has a population, as determined by the
18most recent census, of more than 250,000 persons.

19(2) Community conservation corps that are designated by a
20county to perform litter abatement, recycling, and related activities,
21and are certified by the California Conservation Corps as having
22operated for a minimum of two years and as meeting all other
23criteria of Section 14507.5.

24(b) The grants provided pursuant to this section shall not
25comprise more than 75 percent of the annual budget of a
26community conservation corps.

27(c) The amount of twenty million nine hundred seventy-four
28thousand dollars ($20,974,000) that is referenced in subdivision
29(a) is a base amount for the 2014-15 fiscal year, and the
30department shall adjust that amount annually to reflect any
31increases or decreases in the cost of living as measured by the
32Department of Labor or a successor agency of the federal
33government.

34(d) For the 2014-15 fiscal year only, the amount to be expended
35from the fund for the purposes specified in subdivision (a) shall
36be increased by seven million five hundred thousand dollars
37($7,500,000).

end insert
38begin insert

begin insertSEC. 145.end insert  

end insert

begin insertDivision 12.5 (commencing with Section 17000) is
39added to the end insert
begin insertPublic Resources Codeend insertbegin insert, to read:end insert

begin insert

 

P192  1Division begin insert12.5.end insert  Community Conservation Corps

2

 

3

begin insert17000.end insert  

For purposes of this division, the following definitions
4shall apply:

5(a) “Certified community conservation corps” means a
6community conservation corps that was in existence on September
730, 1999, or that is formed subsequent to that date, and that is
8designated by a city or a city and county to perform litter
9abatement, recycling, and related activities, if the city or the city
10and county has a population, as determined by the most recent
11census, of more than 250,000 persons.

12(b) “Community conservation corps” means a community
13conservation corps, as defined in Section 14507.5, that is
14designated by a county to perform litter abatement, recycling, and
15related activities, and that is certified by the California
16Conservation Corps as having operated for a minimum of two
17years and as meeting all other criteria of Section 14507.5.

18(c) “Department” means the Department of Resources Recycling
19and Recovery.

20

begin insert17001.end insert  

(a) For purposes of the 2014-15 fiscal year only,
21subject to Section 17002, the department shall expend funds from
22the following sources, for issuing grants to certified community
23conservation corps and community conservation corps, in
24accordance with, and for the purposes specified in, this
25subdivision:

26(1) The department shall expend the amount made available
27for expenditure during the 2014-15 fiscal year pursuant to Section
2814581.1 in the form of grants for implementing beverage container
29litter reduction programs and beverage container recycling
30programs, including education and outreach, pursuant to Division
3112.1 (commencing with Section 14501).

32(2) The department shall expend four million dollars
33($4,000,000) from the funds in the Electronic Waste Recovery and
34Recycling Account, upon appropriation by the Legislature, for
35grants to implement programs relating to the collection and
36recovery of covered electronic waste, including education and
37outreach, in accordance with Chapter 8.5 (commencing with
38Section 42460) of Part 3 of Division 30.

39(3) The department shall expend two million five hundred
40thousand dollars ($2,500,000) from the funds in the California
P193  1Tire Recycling Management Fund, upon appropriation by the
2Legislature, for grants relating to implementing programs to clean
3up and abate waste tires and to reuse and recycle waste tires,
4including, but not limited to, the tire recycling program authorized
5by Section 42872, and including education and outreach, in
6accordance with Chapter 17 (commencing with Section 42860) of
7Part 3 of Division 30.

8(4) The department shall expend one million dollars
9($1,000,000) from the funds in the California Used Oil Recycling
10Fund, upon appropriation by the Legislature, for grants to
11implement programs relating to the collection of used oil, including
12education and outreach, in accordance with Chapter 4
13(commencing with Section 48600) of Part 7 of Division 30.

14(b) On and after July 1, 2015, subject to Section 17002, the
15department shall expend funds from the following sources, for
16issuing grants to certified community conservation corps and
17community conservation corps, in accordance with, and for the
18purposes specified in, this subdivision:

19(1) The department shall expend in each fiscal year the amount
20made available pursuant to Section 14581.1 for grants to
21implement beverage container litter reduction programs and
22beverage container recycling programs, including education and
23outreach, pursuant to Division 12.1 (commencing with Section
2414501).

25(2) The department shall expend eight million dollars
26($8,000,000) each fiscal year from the funds in the Electronic
27Waste Recovery and Recycling Account, upon appropriation by
28the Legislature, for grants to implement programs relating to the
29collection and recovery of covered electronic waste, including
30education and outreach, in accordance with Chapter 8.5
31(commencing with Section 42460) of Part 3 of Division 30.

32(3) The department shall expend five million dollars
33($5,000,000) each fiscal year from the funds in the California Tire
34Recycling Management Fund, upon appropriation by the
35Legislature, for grants to implement programs relating to clean
36up and abate waste tires and to reuse and recycle waste tires,
37including, but not limited to, the tire recycling program authorized
38by Section 42872, and including education and outreach, in
39accordance with Chapter 17 (commencing with Section 42860) of
40Part 3 of Division 30.

P194  1(4) The department shall expend two million dollars
2($2,000,000) each fiscal year from the funds in the California Used
3Oil Recycling Fund, upon appropriation by the Legislature, for
4grants to implement programs relating to the collection of used
5oil, including education and outreach, in accordance with Chapter
64 (commencing with Section 48600) of Part 7 of Division 30.

7

begin insert17002.end insert  

The amount the department may expend for a fiscal
8year pursuant to Section 17001 shall not exceed the amount
9determined for that fiscal year pursuant to subdivision (c) of
10Section 14581.1.

end insert
11begin insert

begin insertSEC. 146.end insert  

end insert

begin insertSection 21190 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
12amended to read:end insert

13

21190.  

There is in this state the California Environmental
14Protection Program, which shall be concerned with the preservation
15and protection of California’s environment. In this connection, the
16Legislature hereby finds and declares that, since the inception of
17the program pursuant to the Marks-Badham Environmental
18Protection and Research Act, the Department of Motor Vehicles
19has, in the course of issuing environmental license plates,
20consistently informed potential purchasers of those plates, by
21means of a detailed brochure, of the manner in which the program
22functions, the particular purposes for which revenues from the
23issuance of those plates can lawfully be expended, and examples
24of particular projects and programs that have been financed by
25those revenues. Therefore, because of this representation by the
26 Department of Motor Vehicles, purchasers come to expect and
27rely that the moneys paid by them will be expended only for those
28particular purposes, which results in an obligation on the part of
29the state to expend the revenues only for those particular purposes.

30Accordingly, all funds expended pursuant to this division shall
31be used only to support identifiable projects and programs of state
32agencies, cities, cities and counties, counties, districts, the
33University of California, private nonprofit environmental and land
34acquisition organizations, and private research organizationsbegin delete whichend delete
35begin insert thatend insert have a clearly defined benefit to the people of the State of
36California andbegin delete whichend deletebegin insert thatend insert have one or more of the following
37purposes:

38(a) The control and abatement of air pollution, including all
39phases of research into the sources, dynamics, and effects of
40environmental pollutants.

P195  1(b) The acquisition, preservation, restoration, or any combination
2thereof, of natural areas or ecological reserves.

3(c) Environmental education, including formal school programs
4and informal public education programs. The State Department of
5Education may administer moneys appropriated for these programs,
6but shall distribute not less than 90 percent of moneys appropriated
7for the purposes of this subdivision to fund environmental
8education programs of school districts, other local schools, state
9agencies other than the State Department of Education, and
10community organizations. Not more than 10 percent of the moneys
11appropriated for environmental education may be used for State
12Department of Education programs or defraying administrative
13costs.

14(d) Protection of nongame species and threatened and
15endangered plants and animals.

16(e) Protection, enhancement, and restoration of fish and wildlife
17habitat and related water quality, including review of the potential
18impact of development activities and land use changes on that
19habitat.

20(f) The purchase, on an opportunity basis, of real property
21consisting of sensitive natural areas for the state park system and
22for local and regional parks.

23(g) Reduction or minimization of the effects of soil erosion and
24the discharge of sediment into the waters of the Lake Tahoe region,
25including the restoration of disturbed wetlands and stream
26environment zones, through projects by the California Tahoe
27Conservancy and grants to local public agencies, state agencies,
28federal agencies, and nonprofit organizations.

begin insert

29(h) Scientific research on the risks to California’s natural
30resources and communities caused by the impacts of climate
31change.

end insert
32begin insert

begin insertSEC. 147.end insert  

end insert

begin insertSection 30821 is added to the end insertbegin insertPublic Resources
33Code
end insert
begin insert, to read:end insert

begin insert
34

begin insert30821.end insert  

(a) In addition to any other penalties imposed pursuant
35to this division, a person, including a landowner, who is in
36violation of the public access provisions of this division is subject
37to an administrative civil penalty that may be imposed by the
38commission in an amount not to exceed 75 percent of the amount
39of the maximum penalty authorized pursuant to subdivision (b) of
40Section 30820 for each violation. The administrative civil penalty
P196  1may be assessed for each day the violation persists, but for no
2more than five years.

3(b) All penalties imposed pursuant to subdivision (a) shall be
4imposed by majority vote of the commissioners present in a duly
5noticed public hearing in compliance with the requirements of
6Section 30810, 30811, or 30812.

7(c) In determining the amount of civil liability, the commission
8shall take into account the factors set forth in subdivision (c) of
9Section 30820.

10(d) A person shall not be subject to both monetary civil liability
11imposed under this section and monetary civil liability imposed
12by the superior court for the same act or failure to act. If a person
13who is assessed a penalty under this section fails to pay the
14administrative penalty, otherwise fails to comply with a restoration
15or cease and desist order issued by the commission in connection
16with the penalty action, or challenges any of these actions by the
17commission in a court of law, the commission may maintain an
18action or otherwise engage in judicial proceedings to enforce those
19requirements and the court may grant any relief as provided under
20this chapter.

21(e) If a person fails to pay a penalty imposed by the commission
22pursuant to this section, the commission may record a lien on the
23property in the amount of the penalty assessed by the commission.
24This lien shall have the force, effect, and priority of a judgment
25lien.

26(f) In enacting this section, it is the intent of the Legislature to
27ensure that unintentional, minor violations of this division that
28only cause de minimis harm will not lead to the imposition of
29administrative penalties if the violator has acted expeditiously to
30correct the violation.

31(g) “Person,” for the purpose of this section, does not include
32a local government, a special district, or an agency thereof, when
33acting in a legislative or adjudicative capacity.

34(h) Administrative penalties pursuant to subdivision (a) shall
35not be assessed if the property owner corrects the violation
36consistent with this division within 30 days of receiving written
37notification from the commission regarding the violation, and if
38the alleged violator can correct the violation without undertaking
39additional development that requires a permit under this division.
40This 30-day timeframe for corrective action does not apply to
P197  1previous violations of permit conditions incurred by a property
2owner.

3(i) The commission shall prepare and submit, pursuant to
4Section 9795 of the Government Code, a report to the Legislature
5by January 15, 2019, that includes all of the following:

6(1) The number of new violations reported annually to the
7commission from January 1, 2015, to December 31, 2018,
8inclusive.

9(2) The number of violations resolved from January 1, 2015, to
10December 31, 2018, inclusive.

11(3) The number of administrative penalties issued pursuant to
12this section, the dollar amount of the penalties, and a description
13of the violations from January 1, 2015, to December 31, 2018,
14inclusive.

15(j) Revenues derived pursuant to this section shall be deposited
16into the Violation Remediation Account of the Coastal Conservancy
17Fund and expended pursuant to Section 30823.

end insert
18begin insert

begin insertSEC. 148.end insert  

end insert

begin insertSection 31012 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
19amended to read:end insert

20

31012.  

(a) The Coastal Trust Fund is hereby established in
21the State Treasury, to receive and disburse funds paid to the
22conservancy in trust, subject to the right of recovery to fulfill the
23purposes of the trust, as provided in this section.

24(b) (1) There is in the Coastal Trust Fund the San Francisco
25Bay Area Conservancy Program Account, which shall be expended
26solely for the purposes of Chapter 4.5 (commencing with Section
2731160).

28(2) The conservancy shall deposit in the San Francisco Bay
29Area Conservancy Program Account all funds received by the
30conservancy for the purposes of the San Francisco Bay Area
31Conservancy Program established under Chapter 4.5 (commencing
32with Section 31160), from sources other than the state or federal
33government and not provided for in subdivision (a) of Section
3431164. These funds include, but are not limited to, private
35donations, fees, penalties, and local government contributions.

36(c) (1) There is in the Coastal Trust Fund the Coastal Program
37Account. Funds in the Coastal Program Account shall be expended
38solely for their specified trust purposes.

39(2) Upon approval of the Department of Finance, the
40conservancy shall deposit in the Coastal Program Account all funds
P198  1paid to the conservancy in trust for purposes of this division, except
2those funds identified in paragraph (2) of subdivision (b). The
3funds that shall be deposited in the Coastal Program Account, upon
4that approval, include, but are not limited to, funds that are paid
5to the conservancy in trust for purposes of mitigation, for settlement
6of litigation, instead of other conditions of coastal development
7permits or other regulatory entitlements, or for other trust purposes
8consistent with this division and specified by the terms of a gift
9or contract. Funds in the Coastal Program Account shall be
10separately accounted for according to their source and trust
11purpose. Fundsbegin delete mayend deletebegin insert shallend insert not be deposited in the Coastal Program
12Account without the Department of Finance’s approval.

begin insert

13(d) (1) There is in the Coastal Trust Fund the California
14Climate Resilience Account. Notwithstanding Section 13340 of
15the Government Code, and except as provided in paragraph (6),
16funds in the account are continuously appropriated to the
17conservancy, as follows, without regard to fiscal year. Funds shall
18be expended by the conservancy, the California Coastal
19Commission, and the San Francisco Bay Conservation and
20Development Commission for coastal zone management planning
21and implementation activities to address the risks and impacts of
22climate change, sea level rise, and associated extreme events to
23coastal and bay communities and natural resources. The purpose
24of the account is to support project implementation, capital outlay,
25and local assistance grants. Up to 10 percent of the funds shall
26be available for administrative costs.

end insert
begin insert

27(2) Except as specified by an instrument imposing conditions
28on the use or expenditure of the specific funds provided, funds
29appropriated for these purposes shall be allocated as follows:

end insert
begin insert

30(A) To the California Coastal Commission, 20 percent of the
31funds deposited in the account during each fiscal year.

end insert
begin insert

32(B) To the San Francisco Bay Conservation and Development
33Commission, 20 percent of the funds deposited in the account
34during each fiscal year.

end insert
begin insert

35(C) To the conservancy, 60 percent of the funds deposited in
36the account during each fiscal year.

end insert
begin insert

37(3) Funds in the account shall be expended solely for their
38specified purposes.

end insert
begin insert

39(4) Funds that may be deposited into the California Climate
40Resilience Account include, but are not limited to, appropriations
P199  1and grants, funds from the federal government, regional planning
2agencies, and local governments, fees, litigation settlements,
3permits, and mitigation requirements, and private donations that
4are eligible to be spent for the purposes of the account.

end insert
begin insert

5(5) Nothing in this section shall apply to funds eligible for
6deposit in the Bay Fill Clean-Up and Abatement Fund pursuant
7to Section 66647 of the Government Code or to any funds collected
8pursuant to the California Coastal Act of 1976 (Division 20
9(commencing with Section 30000)).

end insert
begin insert

10(6) To the extent that any funds are appropriated into the
11account by the Legislature in the annual Budget Act, those funds
12shall be segregated for purposes of accounting. Funds
13appropriated into the account by the Legislature in the Annual
14Budget act shall not be continuously appropriated and are subject
15to the provisions of Section 16304 of the Government Code.

end insert
begin delete

16(d)

end delete

17begin insert(e)end insert Interest that accrues on funds in the Coastal Trust Fund shall
18be retained in the Coastal Trust Fund and available for expenditure
19by the conservancy for the trust purposes.

begin delete

20(e)

end delete

21begin insert(f)end insert The conservancy shall maintain separate accountings of funds
22within the Coastal Trust Fund, pursuant to its fiduciary duties, for
23the purpose of separating deposits and interest on those deposits,
24according to their trust purposes.

begin delete

25(f)

end delete

26begin insert(g)end insert Notwithstanding Section 13340 of the Government Code,
27begin insert and except as provided in subdivision (d),end insert all funds in the Coastal
28Trust Fund are continuously appropriated, without regard to fiscal
29year, to the conservancy to fulfill the trust purposes for which the
30payments of funds were made.

begin delete

31(g)

end delete

32begin insert(h)end insert The conservancy shall provide an annual accounting to the
33Department of Finance of the conservancy’s expenditures from,
34and other activities related to, the Coastal Trust Fund.

35begin insert

begin insertSEC. 149.end insert  

end insert

begin insertSection 42476 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
36amended to read:end insert

37

42476.  

(a) The Electronic Waste Recovery and Recycling
38Account is hereby established in the Integrated Waste Management
39Fund. All fees collected pursuant to this chapter shall be deposited
40in the account. Notwithstanding Section 13340 of the Government
P200  1Code, the funds in the account are hereby continuously
2appropriated, without regard to fiscal year, for the following
3purposes:

4(1) To pay refunds of the covered electronic waste recycling
5fee imposed under Section 42464.

6(2) To make electronic waste recovery payments to an
7authorized collector of covered electronic waste pursuant to Section
842479.

9(3) To make electronic waste recycling payments to covered
10electronic waste recyclers pursuant to Section 42479.

11(4) To make payments to manufacturers pursuant to subdivision
12(h).

13(b) (1) The money in the account may be expended for the
14following purposes only upon appropriation by the Legislature in
15the annual Budget Act:

16(A) For the administration of this chapter by the Department of
17Resources Recycling and Recovery and the department.

18(B) To reimburse the State Board of Equalization for its
19administrative costs of registering, collecting, making refunds, and
20auditing retailers and consumers in connection with the covered
21electronic waste recycling fee imposed under Section 42464.

22(C) To provide funding to the department to implement and
23enforce Chapter 6.5 (commencing with Section 25100) of Division
2420 of the Health and Safety Code, as that chapter relates to covered
25electronic devices, and any regulations adopted by the department
26pursuant to that chapter.

27(D) To establish the public information program specified in
28subdivision (d).

begin insert

29(E) For expenditure pursuant to paragraph (2) of subdivision
30(a) of, and paragraph (2) of subdivision (b) of, Section 17001.

end insert

31(2) Any fines or penalties collected pursuant to this chapter shall
32be deposited in the Electronic Waste Penalty Subaccount, which
33is hereby established in the account. The funds in the Electronic
34Waste Penalty Subaccount may be expended by the Department
35 of Resources Recycling and Recovery or the department only upon
36appropriation by the Legislature.

37(c) Notwithstanding Section 16475 of the Government Code,
38any interest earned upon funds in the Electronic Waste Recovery
39and Recycling Account shall be deposited in that account for
40expenditure pursuant to this chapter.

P201  1(d) Not more than 1 percent of the funds annually deposited in
2the Electronic Waste Recovery and Recycling Account shall be
3expended for the purposes of establishing the public information
4program to educate the public in the hazards of improper covered
5electronic device storage and disposal and on the opportunities to
6recycle covered electronic devices.

7(e) The Department of Resources Recycling and Recovery shall
8adopt regulations specifying cancellation methods for the recovery,
9processing, or recycling of covered electronic waste.

10(f) The Department of Resources Recycling and Recovery may
11pay an electronic waste recycling payment or electronic waste
12recovery payment only for covered electronic waste that meets all
13of the following conditions:

14(1) (A) The covered electronic waste is demonstrated to have
15been generated by a person who used the covered electronic device
16while located in this state.

17(B) Covered electronic waste generated outside of the state and
18subsequently brought into the state is not eligible for payment.

19(C) The Department of Resources Recycling and Recovery shall
20establish documentation requirements for purposes of this
21paragraph that are necessary to demonstrate that the covered
22electronic waste was generated in the state and eligible for payment.

23(2) The covered electronic waste, including any residuals from
24the processing of the waste, is handled in compliance with all
25applicable statutes and regulations.

26(3) The manufacturer or the authorized collector or recycler of
27the electronic waste provides a cost-free and convenient
28opportunity to recycle electronic waste, in accordance with the
29legislative intent specified in subdivision (b) of Section 42461.

30(4) If the covered electronic waste is processed, the covered
31electronic waste is processed in this state according to the
32cancellation method authorized by the Department of Resources
33Recycling and Recovery.

34(g) The Legislature hereby declares that the state is a market
35participant in the business of the recycling of covered electronic
36waste for all of the following reasons:

37(1) The fee is collected from the state’s consumers for covered
38electronic devices sold for use in the state.

P202  1(2) The purpose of the fee and subsequent payments is to prevent
2damage to the public health and the environment from waste
3generated in the state.

4(3) The recycling system funded by the fee ensures that
5economically viable and sustainable markets are developed and
6supported for recovered materials and components in order to
7conserve resources and maximize business and employment
8opportunities within the state.

9(h) (1) The Department of Resources Recycling and Recovery
10may make a payment to a manufacturer that takes back a covered
11electronic device from a consumer in this state for purposes of
12recycling the device at a processing facility. The amount of the
13payment made by the Department of Resources Recycling and
14Recovery shall equal the value of the covered electronic waste
15recycling fee paid for that device. To qualify for a payment
16pursuant to this subdivision, the manufacturer shall demonstrate
17both of the following to the Department of Resources Recycling
18and Recovery:

19(A) The covered electronic device for which payment is claimed
20was used in this state.

21(B) The covered electronic waste for which a payment is
22claimed, including any residuals from the processing of the waste,
23has been, and will be, handled in compliance with all applicable
24statutes and regulations.

25(2) A covered electronic device for which a payment is made
26under this subdivision is not eligible for an electronic waste
27recovery payment or an electronic waste recycling payment under
28Section 42479.

29begin insert

begin insertSEC. 150.end insert  

end insert

begin insertSection 42872.1 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
30amended to read:end insert

31

42872.1.  

(a) This section shall be known, and may be cited,
32as the Rubberizedbegin delete Asphalt Concreteend deletebegin insert Pavementend insert Market
33Development Act.

34(b) In accordance with the tire recycling program authorized by
35Section 42872, the department shall award grants in the following
36manner:

37(1) To cities, counties, and other local governmental agencies
38for the funding of public works projects that utilize rubberized
39begin delete asphalt concreteend deletebegin insert pavementend insert.

P203  1(2) To state and local governmental agencies, including regional
2park districts, for the funding of disability access projects at parks
3and Class I bikeways as defined in subdivision (a) of Section 890.4,
4relative to projects that utilize rubberizedbegin delete asphalt concreteend delete
5begin insert pavementend insert.

6(c) (1) Except as provided in paragraph (2), the department
7shall award the grants pursuant to subdivision (b) in the amount
8of two dollars ($2) for every 12 pounds of crumb rubber used in
9a public works or disability access project by a state or local
10governmental agency, including a regional park district.

11(2) The department may adjust the amount of grants awarded
12pursuant to paragraph (1) to an amount that is greater than, or less
13than, two dollars ($2) for every 12 pounds of crumb rubber if the
14department finds this adjustment would further the purposes of
15this article.

16(d) This section shall become inoperative on June 30, 2019,
17and, as of January 1, 2020, is repealed, unless a later enacted
18statute, that becomes operative on or before January 1, 2020,
19deletes or extends the dates on which it becomes inoperative and
20is repealed.

21begin insert

begin insertSEC. 151.end insert  

end insert

begin insertSection 42885.5 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
22amended to read:end insert

23

42885.5.  

(a) The department shall adopt a five-year plan, which
24shall be updated every two years, to establish goals and priorities
25for the waste tire program and each program element.

26(b) On or before July 1, 2001, and every two years thereafter,
27the department shall submit the adopted five-year plan to the
28appropriate policy and fiscal committees of the Legislature. The
29department shall include in the plan, programmatic and fiscal issues
30including, but not limited to, the hierarchy used by the department
31to maximize productive uses of waste and used tires, and the
32performance objectives and measurement criteria used by the
33department to evaluate the success of its waste and used tire
34recycling program. Additionally, the plan shall describe each
35program element’s effectiveness, based upon performance measures
36developed by the department, including, but not limited to, the
37following:

38(1) Enforcement and regulations relating to the storage of waste
39and used tires.

P204  1(2) Cleanup, abatement, or other remedial action related to waste
2tire stockpiles throughout the state.

3(3) Research directed at promoting and developing alternatives
4to the landfill disposal of waste tires.

5(4) Market development and new technology activities for used
6tires and waste tires.

7(5) The waste and used tire hauler program, the registration of,
8and reporting by, tire brokers, and the manifest system.

9(6) A description of the grants, loans, contracts, and other
10expenditures proposed to be made by the department under the
11tire recycling program.

12(7) Until June 30, 2015, the grant program authorized under
13Section 42872.5 to encourage the use of waste tires, including, but
14not limited to, rubberized asphalt concrete technology, in public
15works projects.

16(8) Border region activities, conducted in coordination with the
17California Environmental Protection Agency, including, but not
18limited to, all of the following:

19(A) Training programs to assist Mexican waste and used tire
20haulers to meet the requirements for hauling those tires in
21California.

22(B) Environmental education training.

23(C) Development of a waste tire abatement plan, with the
24appropriate government entities of California and Mexico.

25(D) Tracking both the legal and illegal waste and used tire flow
26across the border and recommended revisions to the waste tire
27policies of California and Mexico.

28(E) Coordination with businesses operating in the border region
29and with Mexico, with regard to applying the same environmental
30and control requirements throughout the border region.

31(F) Development of projects in Mexico in the California-Mexico
32border region, as defined by the La Paz Agreement, that include,
33but are not limited to, education, infrastructure, mitigation, cleanup,
34prevention, reuse, and recycling projects, that address the
35movement of used tires from California to Mexico that are
36eventually disposed of in California.

begin insert

37(9) Grants to certified community conservation corps and
38community conservation corps, pursuant to paragraph (3) of
39subdivision (a) of, and paragraph (3) of subdivision (b) of, Section
P205  117001, for purposes of the programs specified in paragraphs (2)
2and (6) and for related education and outreach.

end insert

3(c) The department shall base the budget for the California Tire
4Recycling Act and program funding on the plan.

5(d) The plan may not propose financial or other support that
6promotes, or provides for research for the incineration of tires.

7begin insert

begin insertSEC. 152.end insert  

end insert

begin insertSection 42889 of the end insertbegin insertPublic Resources Codeend insertbegin insert, as
8amended by Section 33 of Chapter 401 of the Statutes of 2013, is
9amended to read:end insert

10

42889.  

(a) Of the moneys collected pursuant to Section 42885,
11an amount equal to seventy-five cents ($0.75) per tire on which
12the fee is imposed shall be transferred by the State Board of
13Equalization to the Air Pollution Control Fund. The state board
14shall expend those moneys, or allocate those moneys to the districts
15for expenditure, to fund programs and projects that mitigate or
16remediate air pollution caused by tires in the state, to the extent
17that the state board or the applicable district determines that the
18program or project remediates air pollution harms created by tires
19upon which the fee described in Section 42885 is imposed.

20(b) The remaining moneys collected pursuant to Section 42885
21shall be used to fund the waste tire program, and shall be
22appropriated to the department in the annual Budget Act in a
23manner consistent with the five-year plan adopted and updated by
24the department. These moneys shall be expended for the payment
25of refunds under this chapter and for the following purposes:

26(1) To pay the administrative overhead cost of this chapter, not
27to exceed 6 percent of the total revenue deposited in the fund
28annually, or an amount otherwise specified in the annual Budget
29Act.

30(2) To pay the costs of administration associated with collection,
31making refunds, and auditing revenues in the fund, not to exceed
323 percent of the total revenue deposited in the fund, as provided
33in subdivision (c) of Section 42885.

34(3) To pay the costs associated with operating the tire recycling
35program specified in Article 3 (commencing with Section 42870).

36(4) To pay the costs associated with the development and
37enforcement of regulations relating to the storage of waste tires
38and used tires. The department shall consider designating a city,
39county, or city and county as the enforcement authority of
40regulations relating to the storage of waste tires and used tires, as
P206  1provided in subdivision (c) of Section 42850, and regulations
2relating to the hauling of waste and used tires, as provided in
3subdivision (b) of Section 42963. If the department designates a
4local entity for that purpose, the department shall provide sufficient,
5stable, and noncompetitive funding to that entity for that purpose,
6based on available resources, as provided in the five-year plan
7adopted and updated as provided in subdivision (a) of Section
842885.5. The department may consider and create, as appropriate,
9financial incentives for citizens who report the illegal hauling or
10disposal of waste tires as a means of enhancing local and statewide
11waste tire and used tire enforcement programs.

12(5) To pay the costs of cleanup, abatement, removal, or other
13remedial action related to waste tire stockpiles throughout the state,
14including all approved costs incurred by other public agencies
15involved in these activities by contract with the department. Not
16less than six million five hundred thousand dollars ($6,500,000)
17shall be expended by the department during each of the following
18fiscal years for this purpose: 2001-02 to 2006-07, inclusive.

19(6) To make studies and conduct research directed at promoting
20and developing alternatives to the landfill disposal of waste tires.

21(7) To assist in developing markets and new technologies for
22used tires and waste tires. The department’s expenditure of funds
23for purposes of this subdivision shall reflect the priorities for waste
24management practices specified in subdivision (a) of Section
2540051.

26(8) To pay the costs associated with implementing and operating
27a waste tire and used tire hauler program and manifest system
28pursuant to Chapter 19 (commencing with Section 42950).

29(9) To pay the costs to create and maintain an emergency
30reserve, which shall not exceed one million dollars ($1,000,000).

31(10) To pay the costs of cleanup, abatement, or other remedial
32action related to the disposal of waste tires in implementing and
33operating the Farm and Ranch Solid Waste Cleanup and Abatement
34Grant Program established pursuant to Chapter 2.5 (commencing
35with Section 48100) of Part 7.

36(11) To fund border region activities specified in paragraph (8)
37of subdivision (b) of Section 42885.5.

begin insert

38(12) For expenditure pursuant to paragraph (3) of subdivision
39(a) of, and paragraph (3) of subdivision (b) of, Section 17001.

end insert

P207  1(c) This section shall remain in effect only until January 1, 2024,
2and as of that date is repealed, unless a later enacted statute that
3is enacted before January 1, 2024, deletes or extends that date.

4begin insert

begin insertSEC. 153.end insert  

end insert

begin insertSection 42889 of the end insertbegin insertPublic Resources Codeend insertbegin insert, as
5amended by Section 34 of Chapter 401 of the Statutes of 2013, is
6amended to read:end insert

7

42889.  

Funding for the waste tire program shall be appropriated
8to the department in the annual Budget Act. The moneys in the
9fund shall be expended for the payment of refunds under this
10chapter and for the following purposes:

11(a) To pay the administrative overhead cost of this chapter, not
12to exceed 5 percent of the total revenue deposited in the fund
13annually, or an amount otherwise specified in the annual Budget
14Act.

15(b) To pay the costs of administration associated with collection,
16making refunds, and auditing revenues in the fund, not to exceed
173 percent of the total revenue deposited in the fund, as provided
18in subdivision (b) of Section 42885.

19(c) To pay the costs associated with operating the tire recycling
20program specified in Article 3 (commencing with Section 42870).

21(d) To pay the costs associated with the development and
22enforcement of regulations relating to the storage of waste tires
23and used tires. The department shall consider designating a city,
24county, or city and county as the enforcement authority of
25regulations relating to the storage of waste tires and used tires, as
26provided in subdivision (c) of Section 42850, and regulations
27relating to the hauling of waste and used tires, as provided in
28subdivision (b) of Section 42963. If the department designates a
29local entity for that purpose, the department shall provide sufficient,
30stable, and noncompetitive funding to that entity for that purpose,
31based on available resources, as provided in the five-year plan
32adopted and updated as provided in subdivision (a) of Section
3342885.5. The department may consider and create, as appropriate,
34 financial incentives for citizens who report the illegal hauling or
35disposal of waste tires as a means of enhancing local and statewide
36waste tire and used tire enforcement programs.

37(e) To pay the costs of cleanup, abatement, removal, or other
38remedial action related to waste tire stockpiles throughout the state,
39including all approved costs incurred by other public agencies
40involved in these activities by contract with the department. Not
P208  1less than six million five hundred thousand dollars ($6,500,000)
2shall be expended by the department during each of the following
3fiscal years for this purpose: 2001-02 to 2006-07, inclusive.

4(f) To fund border region activities specified in paragraph (8)
5of subdivision (b) of Section 42885.5.

begin insert

6(g) For expenditure pursuant to paragraph (3) of subdivision
7(a) of, and paragraph (3) of subdivision (b) of, Section 17001.

end insert
begin delete

8(g)

end delete

9begin insert(h)end insert This section shall become operative on January 1, 2024.

10begin insert

begin insertSEC. 154.end insert  

end insert

begin insertSection 48653 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
11amended to read:end insert

12

48653.  

The board shall deposit all amounts paid pursuant to
13Section 48650 by manufacturers, civil penalties, and fines paid
14pursuant to this chapter, and all other revenues received pursuant
15to this chapter into the California Used Oil Recycling Fund, which
16is hereby created in the State Treasury. Notwithstanding Section
1713340 of the Government Code, the money in the fund is to be
18appropriated solely as follows:

19(a) Continuously appropriated to the board for expenditure for
20the following purposes:

21(1) To pay recycling incentives pursuant to Section 48651.

22(2) To provide a reserve for contingencies, as may be available
23after making other payments required by this section, in an amount
24not to exceed one million dollars ($1,000,000).

25(3) (A) To make payments for the implementation of local used
26oil collection programs adopted pursuant to Article 10
27(commencing with Section 48690) to cities, based on the city’s
28population, and counties, based on the population of the
29unincorporated area of the county. Payment shall be determined
30by multiplying the total annual amount by the fraction equal to the
31population of cities and counties that are eligible for payments
32pursuant to Section 48690, divided by the population of the state.
33The board shall use the latest population estimates of the state
34generated by the Population Research Unit of the Department of
35Finance in making the calculations required by this paragraph.
36Notwithstanding subdivision (b) of Section 48656, the total annual
37amount shall equal eleven million dollars ($11,000,000), subject
38to subparagraph (B).

P209  1(B) If sufficient funds are not available to initially issue full
2funding pursuant to subparagraph (A), the board shall provide
3funding as follows:

4(i) For the purposes set forth in this paragraph, one-half of the
5amount that remains in the fund after the expenditures are made
6pursuant to paragraphs (1) and (2) and subdivision (b). The board
7may utilize additional amounts from the fund, up to, but not
8exceeding, eleven million dollars ($11,000,000).

9(ii) As the board finds is fiscally appropriate, for the purposes
10set forth in Section 48656. The board shall give priority to the
11distribution of funding in clause (i) for the purposes of this
12paragraph.

13(C) Pursuant to paragraph (2) of subdivision (d) of Section
1448691, it is the intent of this paragraph that at least one million
15dollars ($1,000,000) be made available specifically for used oil
16filter collection and recycling programs.

17(4) To implement Section 48660.5, in an amount not to exceed
18two hundred thousand dollars ($200,000) annually.

19(5) For expenditures pursuant to Section 48656.

20(b) The money in the fund may be expended by the board for
21the administration of this chapter and by the department for
22inspections and reports pursuant to Section 48661, only upon
23appropriation by the Legislature in the annual Budget Act.

24(c) (1) Except as provided in paragraph (2), the money in the
25fund may be transferred to the Farm and Ranch Solid Waste
26Cleanup and Abatement Account in the General Fund, upon
27appropriation by the Legislature in the annual Budget Act, to pay
28the costs associated with implementing and operating the Farm
29and Ranch Solid Waste Cleanup and Abatement Grant Program
30established pursuant to Chapter 2.5 (commencing with Section
3148100).

32(2) The money in the fund attributable to a charge increase or
33adjustment made or authorized in an amendment to subdivision
34(a) of Section 48650 by the act adding this paragraph shall not be
35transferred to the Farm and Ranch Solid Waste Cleanup and
36Abatement Account.

begin insert

37(d) The money in the fund may be expended by the Department
38of Resources Recycling and Recovery, upon appropriation by the
39Legislature, pursuant to paragraph (4) of subdivision (a) of, and
40paragraph (4) of subdivision (b) of, Section 17001.

end insert
begin delete

P210  1(d)

end delete

2begin insert(e)end insert Appropriations to the board to pay the costs necessary to
3administer this chapter shall not exceed three million dollars
4($3,000,000) annually.

begin delete

5(e)

end delete

6begin insert(f)end insert The Legislature hereby finds and declares its intent that three
7hundred fifty thousand dollars ($350,000) should be annually
8appropriated from the California Used Oil Recycling Fund in the
9annual Budget Act to the board, commencing with fiscal year
102010-11, for the purposes of Section 48655 and to conduct those
11investigations and enforcement actions necessary to ensure a used
12oil storage facility or used oil transfer facility causes the used
13lubricating oil to be transported, as required by subdivision (a) of
14Section 48651.

15begin insert

begin insertSEC. 155.end insert  

end insert

begin insertSection 71116 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
16amended to read:end insert

17

71116.  

(a) The Environmental Justice Small Grant Program
18is hereby established under the jurisdiction of the California
19Environmental Protection Agency. The California Environmental
20Protection Agency shall adopt regulations for the implementation
21of this section. These regulations shall include, but need not be
22limited to, all of the following:

23(1) Specific criteria and procedures for the implementation of
24the program.

25(2) A requirement that each grant recipient submit a written
26report to the agency documenting its expenditures of the grant
27funds and the results of the funded project.

28(3) Provisions promoting the equitable distribution of grant
29funds in a variety of areas throughout the state, with the goal of
30making grants available to organizations that will attempt to
31address environmental justice issues.

32(b) The purpose of the program is to provide grants to eligible
33community groups, including, but not limited to, community-based,
34grassroots nonprofit organizations that are located in areas
35adversely affected by environmental pollution and hazards and
36that are involved in work to address environmental justice issues.

37(c) (1) Both of the following are eligible to receive moneys
38from the fund.

39(A) A nonprofit entity.

40(B) A federally recognized tribal government.

P211  1(2) For the purposes of this section, “nonprofit entity” means
2any corporation, trust, association, cooperative, or other
3organization that meets all of the following criteria:

4(A) Is operated primarily for scientific, educational, service,
5charitable, or other similar purposes in the public interest.

6(B) Is not organized primarily for profit.

7(C) Uses its net proceeds to maintain, improve, or expand, or
8any combination thereof, its operations.

9(D) Is a tax-exempt organization under Section 501 (c)(3) of
10the federal Internal Revenue Code, or is able to provide evidence
11to the agency that the state recognizes the organization as a
12nonprofit entity.

13(3) For the purposes of this section, “nonprofit entity”
14specifically excludes an organization that is a tax-exempt
15organization under Section 501 (c)(4) of the federal Internal
16Revenue Code.

17(d) Individuals may not receive grant moneys from the fund.

18(e) Grant recipients shall use the grant award to fund only the
19project described in the recipient’s application. Recipients shall
20not use the grant funding to shift moneys from existing or proposed
21projects to activities for which grant funding is prohibited under
22subdivision (g).

23(f) Grants shall be awarded on a competitive basis for projects
24that are based in communities with the most significant exposure
25to pollution. Grants shall be limited to any of the following
26purposes and no other:

27(1) Resolve environmental problems through distribution of
28information.

29(2) Identify improvements in communication and coordination
30among agencies and stakeholders in order to address the most
31significant exposure to pollution.

32(3) Expand the understanding of a community about the
33environmental issues that affect their community.

34(4) Develop guidance on the relative significance of various
35environmental risks.

36(5) Promote community involvement in the decisionmaking
37process that affects the environment of the community.

38(6) Present environmental data for the purposes of enhancing
39community understanding of environmental information systems
40and environmental information.

P212  1(g) (1) The agency shall not award grants for, and grant funding
2shall not be used for, any of the following:

3(A) Other state grant programs.

4(B) Lobbying or advocacy activities relating to any federal,
5state, regional, or local legislative, quasi-legislative, adjudicatory,
6or quasi-judicial proceeding involving development or adoption
7of statutes, guidelines, rules, regulations, plans or any other
8governmental proposal, or involving decisions concerning siting,
9permitting, licensing, or any other governmental action.

10(C) Litigation, administrative challenges, enforcement action,
11or any type of adjudicatory proceeding.

12(D) Funding of a lawsuit against any governmental entity.

13(E) Funding of a lawsuit against a business or a project owned
14by a business.

15(F) Matching state or federal funding.

16(G) Performance of any technical assessment for purposes of
17opposing or contradicting a technical assessment prepared by a
18public agency.

19(2) An organization’s use of funds from a grant awarded under
20this section to educate a community regarding an environmental
21justice issue or a governmental process does not preclude that
22organization from subsequent lobbying or advocacy concerning
23that same issue or governmental process, as long as the lobbying
24or advocacy is not funded by a grant awarded under this section.

25(h) The agency shall review, evaluate, and select grant recipients,
26 and screen grant applications to ensure that they meet the
27requirements of this section.

28(i) The maximum amount of a grant provided pursuant to this
29section may not exceedbegin delete twenty thousand dollars ($20,000).end deletebegin insert fifty
30thousand dollars ($50,000).end insert

31(j) For the purposes of this section, “environmental justice” has
32the same meaning as defined in Section 65040.12 of the
33Government Code.

begin delete

34(k) This section shall be implemented only during fiscal years
35for which an appropriation is provided for the purposes of this
36section in the annual Budget Act or in another statute.

end delete
begin insert

37(k) The Secretary for Environmental Protection may expend up
38to one million five hundred thousand dollars ($1,500,000) per year
39for the purposes of this section.

end insert
begin insert

P213  1(l) Board, departments, and offices within the California
2Environmental Protection Agency may allocate funds from various
3special funds, settlements, and penalties to implement this program.

end insert
4begin insert

begin insertSEC. 156.end insert  

end insert

begin insertSection 379.6 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
5to read:end insert

6

379.6.  

(a) (1)  It is the intent of the Legislature that the
7self-generation incentive program increase deployment of
8distributed generation and energy storage systems to facilitate the
9integration of those resources into the electrical grid, improve
10efficiency and reliability of the distribution and transmission
11system, and reduce emissions of greenhouse gases, peak demand,
12and ratepayer costs. It is the further intent of the Legislature that
13the commission, in future proceedings, provide for an equitable
14distribution of the costs and benefits of the program.

15(2)  The commission, in consultation with the Energy
16Commission, may authorize the annual collection of not more than
17the amount authorized for the self-generation incentive program
18in the 2008 calendar year, through December 31,begin delete 2014.end deletebegin insert 2019.end insert The
19commission shall require the administration of the program for
20distributed energy resources originally established pursuant to
21Chapter 329 of the Statutes of 2000 until January 1,begin delete 2016.end deletebegin insert 2021.end insert
22 On January 1,begin delete 2016,end deletebegin insert 2021,end insert the commission shall provide repayment
23of all unallocated funds collected pursuant to this section to reduce
24ratepayer costs.

25(3) The commission shall administer solar technologies
26separately, pursuant to the California Solar Initiative adopted by
27the commission inbegin delete Decision 06-01-024.end deletebegin insert Decisions 05-12-044 and
2806-01-024, as modified by Article 1 (commencing with Section
292851) of Chapter 9 of Part 2 of Division 1 of this code and Chapter
308.8 (commencing with Section 25780) of Division 15 of the Public
31Resources Code.end insert

32(b) begin insert(1)end insertbegin insertend insert Eligibility for incentives under thebegin insert self-generation
33incentiveend insert
program shall be limited to distributed energy resources
34that the commission, in consultation with the State Air Resources
35 Board, determines will achieve reductionsbegin insert in emissionsend insert of
36greenhousebegin delete gas emissionsend deletebegin insert gasesend insert pursuant to the California Global
37Warming Solutions Act of 2006 (Division 25.5 (commencing with
38Section 38500) of the Health and Safety Code).

begin insert

39(2) On or before July 1, 2015, the commission shall update the
40factor for avoided greenhouse gas emissions based on the most
P214  1recent data available to the State Air Resources Board for
2greenhouse gas emissions from electricity sales in the
3self-generation incentive program administrators’ service areas
4as well as current estimates of greenhouse gas emissions over the
5useful life of the distributed energy resource, including
6consideration of the effects of the California Renewables Portfolio
7Standard.

end insert

8(c) Eligibility for the funding of any combustion-operated
9distributed generation projects using fossil fuel is subject to all of
10the following conditions:

11(1)  An oxides of nitrogen (NOx) emissions rate standard of 0.07
12pounds per megawatthour and a minimum efficiency of 60 percent,
13or any other NOx emissions rate and minimum efficiency standard
14adopted by the State Air Resources Board. A minimum efficiency
15of 60 percent shall be measured as useful energy output divided
16by fuel input. The efficiency determination shall be based on 100
17percent load.

18(2) Combined heat and power units that meet the 60-percent
19efficiency standard may take a credit to meet the applicable NOx
20 emissions standard of 0.07 pounds per megawatthour. Credit shall
21be at the rate of one megawatthour for eachbegin delete 3.4 millionend deletebegin insert 3,400,000end insert
22 British thermal units (Btus) of heat recovered.

23(3) The customer receiving incentives shall adequately maintain
24and service the combined heat and power units so that during
25begin delete operation,end deletebegin insert operationend insert the system continues to meet or exceed the
26efficiency and emissions standards established pursuant to
27paragraphs (1) and (2).

28(4) Notwithstanding paragraph (1), a project that does not meet
29the applicable NOx emissions standard is eligible if it meets both
30of the following requirements:

31(A) The project operates solely on waste gas. The commission
32shall require a customer that applies for an incentive pursuant to
33this paragraph to provide an affidavit or other form of proof that
34specifies that the project shall be operated solely on waste gas.
35Incentives awarded pursuant to this paragraph shall be subject to
36refund and shall be refunded by the recipient to the extent the
37project does not operate on waste gas. As used in this paragraph,
38“waste gas” means natural gas that is generated as a byproduct of
39petroleum production operations and is not eligible for delivery
40to the utility pipeline system.

P215  1(B) The air quality management district or air pollution control
2district, in issuing a permit to operate the project, determines that
3operation of the project will produce an onsite net air emissions
4benefit, compared to permitted onsite emissions if the project does
5not operate. The commission shall require the customer to secure
6the permit prior to receiving incentives.

7(d) In determining the eligibility for the self-generation incentive
8program, minimum system efficiency shall be determined either
9by calculating electrical and process heat efficiency as set forth in
10Section 216.6, or by calculating overall electrical efficiency.

begin insert

11(e) Eligibility for incentives under the program shall be limited
12to distributed energy resource technologies that the commission
13determines meet all of the following requirements:

end insert
begin insert

14(1) The distributed energy resource technology is capable of
15reducing demand from the grid by offsetting some or all of the
16customer’s onsite energy load, including, but not limited to, peak
17electric demand.

end insert
begin insert

18(2) The distributed energy resource technology is commercially
19available.

end insert
begin insert

20(3) The distributed energy resource technology safely utilizes
21the existing transmission and distribution system.

end insert
begin insert

22(4) The distributed energy resource technology improves air
23quality by reducing criteria air pollutants.

end insert
begin insert

24(f) Recipients of the self-generation incentive program funds
25shall provide relevant data to the commission and the State Air
26Resources Board, upon request, and shall be subject to onsite
27inspection to verify equipment operation and performance,
28including capacity, thermal output, and usage to verify criteria
29air pollutant and greenhouse gas emissions performance.

end insert
begin insert

30(g) In administering the self-generation incentive program, the
31commission shall determine a capacity factor for each distributed
32generation system energy resource technology in the program.

end insert
begin delete

33(e)

end delete

34begin insert(h)end insertbegin insert(1)end insertbegin insertend insert In administering the self-generation incentive program,
35the commission may adjust the amount of rebates and evaluate
36other public policy interests, including, but not limited to,
37ratepayers, energy efficiency, peak load reduction, load
38management, and environmental interests.

begin insert

39(2) The commission shall consider the relative amount and the
40cost of greenhouse gas emission reductions, peak demand
P216  1reductions, system reliability benefits, and other measurable factors
2when allocating program funds between eligible technologies.

end insert
begin delete

3(f)

end delete

4begin insert(i)end insert The commission shall ensure that distributed generation
5resources are made available in the program for all ratepayers.

begin delete

6(g) ( 1)

end delete

7begin insert(j)end insert In administering the self-generation incentive program, the
8commission shall provide an additional incentive of 20 percent
9from existing program funds for the installation of eligible
10distributed generation resourcesbegin delete from a California supplier.end delete
11begin insert manufactured in California.end insert

begin delete

12(2) “California supplier” as used in this subdivision means any
13sole proprietorship, partnership, joint venture, corporation, or other
14business entity that manufactures eligible distributed generation
15resources in California and that meets either of the following
16criteria:

end delete
begin delete

17(A) The owners or policymaking officers are domiciled in
18California and the permanent principal office, or place of business
19from which the supplier’s trade is directed or managed, is located
20in California.

end delete
begin delete

21(B) A business or corporation, including those owned by, or
22under common control of, a corporation, that meets all of the
23following criteria continuously during the five years prior to
24providing eligible distributed generation resources to a
25self-generation incentive program recipient:

end delete
begin delete

26(i) Owns and operates a manufacturing facility located in
27California that builds or manufactures eligible distributed
28generation resources.

end delete
begin delete

29(ii) Is licensed by the state to conduct business within the state.

end delete
begin delete

30(iii) Employs California residents for work within the state.

end delete
begin delete

31(3) For purposes of qualifying as a California supplier, a
32distribution or sales management office or facility does not qualify
33as a manufacturing facility.

end delete
begin delete

34(h)

end delete

35begin insert(k)end insert The costs of the program adopted and implemented pursuant
36to this section shall not be recovered from customers participating
37in the California Alternate Rates for Energy (CARE) program.

begin insert

38(l) The commission shall evaluate the overall success and impact
39of the self-generation incentive program based on the following
40performance measures:

end insert
begin insert

P217  1(1) The amount of reductions of emissions of greenhouse gases.

end insert
begin insert

2(2) The amount of reductions of emissions of criteria air
3pollutants measured in terms of avoided emissions and reductions
4 of criteria air pollutants represented by emissions credits secured
5for project approval.

end insert
begin insert

6(3) The amount of energy reductions measured in energy value.

end insert
begin insert

7(4) The amount of reductions of aggregate noncoincident
8customer peak demand.

end insert
begin insert

9(5) The ratio of the electricity generated by distributed energy
10resource projects receiving incentives from the program to the
11electricity capable of being produced by those distributed energy
12resource projects, commonly known as a capacity factor.

end insert
begin insert

13(6) The value to the electrical transmission and distribution
14system measured in avoided costs of transmission and distribution
15upgrades and replacement.

end insert
begin insert

16(7) The ability to improve onsite electricity reliability as
17compared to onsite electricity reliability before the self-generation
18incentive program technology was placed in service.

end insert
19begin insert

begin insertSEC. 156.5.end insert  

end insert

begin insertSection 1807 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is
20amended to read:end insert

21

1807.  

begin deleteAny end deletebegin insert(a)end insertbegin insertend insertbegin insertAn end insertaward made under this article shall be paid
22by the public utilitybegin delete whichend deletebegin insert thatend insert is the subject of the hearing,
23investigation, or proceeding, as determined by the commission,
24within 30 days. Notwithstanding any otherbegin delete provision ofend delete law,begin delete anyend delete
25begin insert anend insert award paid by a public utility pursuant to this article shall be
26allowed by the commission as an expense for the purpose of
27establishing rates of the public utility by way of a dollar-for-dollar
28adjustment to rates imposed by the commission immediately on
29the determination of the amount of the award, so that the amount
30of the award shall be fully recovered within one year from the date
31of the award.

begin insert

32(b) Due to the bankruptcy of Sacramento Natural Gas Storage,
33the commission’s intervenor compensation award to the Avondale
34Glen Elder Neighborhood Association in A.07-04-013 has been
35reduced to a fraction of the amount awarded. In this limited
36circumstance, the commission may pay to the Avondale Glen Elder
37Neighborhood Association the difference between the amount
38received from the bankruptcy court and the amount awarded by
39the commission by increasing the fees collected in section 401 for
40the limited purpose of D. 13-11-018.

end insert
P218  1begin insert

begin insertSEC. 157.end insert  

end insert

begin insertSection 46001.5 is added to the end insertbegin insertRevenue and
2Taxation Code
end insert
begin insert, to read:end insert

begin insert
3

begin insert46001.5.end insert  

(a) The board may adopt regulations relating to the
4administration and enforcement of this part pursuant to the
5Administrative Procedure Act (Chapter 3.5 (commencing with
6Section 11340) of Part 1 of Division 3 of Title 2 of the Government
7Code).

8(b) An emergency regulation adopted pursuant to amendments
9made to this part by Assembly Bill 1466 of the 2013-14 Regular
10Session shall be deemed an emergency and necessary to avoid
11serious harm to the public peace, health, safety, or general welfare
12for the purposes of Sections 11346.1 and 11349.6 of the
13Government Code, and the board is hereby exempt from the
14requirement that it describe facts showing the need for immediate
15action and from review by the Office of Administrative Law.

end insert
16begin insert

begin insertSEC. 158.end insert  

end insert

begin insertSection 46002 of the end insertbegin insertRevenue and Taxation Codeend insert
17begin insert is amended to read:end insert

18

46002.  

The collection and administration of the fees referred
19to in Sections 46051 and 46052 shall be governed by the definitions
20contained in Chapter 7.4 (commencing with Section 8670.1) of
21Division 1 of Title 2 of the Government Codebegin delete, unless expressly
22otherwise provided by the definitions contained inend delete
begin insert andend insert this part.

23begin insert

begin insertSEC. 159.end insert  

end insert

begin insertSection 46006 of the end insertbegin insertRevenue and Taxation Codeend insert
24begin insert is amended to read:end insert

25

46006.  

“Administrator” means thebegin delete chief deputy director of the
26Department of Fish and Gameend delete
begin insert personend insert appointed by the Governor
27pursuant to Section 8670.4 of the Government Codebegin insert to implement
28the Lempert-Keene-Seastrand Oil Spill Prevention and Response
29Act (Chapter 7.4 (commencing with Section 8670.1) of Division 1
30of Title 2 of the Government Code)end insert
.

31begin insert

begin insertSEC. 160.end insert  

end insert

begin insertSection 46007 of the end insertbegin insertRevenue and Taxation Codeend insert
32begin insert is amended to read:end insert

33

46007.  

“Barges” meansbegin delete any relatively flat-bottomed,
34waterborne vessel which is propelled by being pulled or pushed
35by another vessel, and is constructed or adapted to carry crude oil
36or petroleum products in commercial quantities as cargoend delete
begin insert vessels
37that carry oil in commercial quantities as cargo but are not
38equipped with a means of self-propulsionend insert
.

39begin insert

begin insertSEC. 161.end insert  

end insert

begin insertSection 46008 of the end insertbegin insertRevenue and Taxation Codeend insert
40begin insert is repealed.end insert

begin delete
P219  1

46008.  

“Barrel” means 42 gallons of crude oil or petroleum
2products.

end delete
3begin insert

begin insertSEC. 162.end insert  

end insert

begin insertSection 46010 of the end insertbegin insertRevenue and Taxation Codeend insert
4begin insert is amended to read:end insert

5

46010.  

“Crude oil” means petroleum in an unrefined or natural
6state, including condensate and natural gasolinebegin insert, and including
7substances that enhance, cut, thin, or reduce viscosityend insert
.

8begin insert

begin insertSEC. 163.end insert  

end insert

begin insertSection 46011 of the end insertbegin insertRevenue and Taxation Codeend insert
9begin insert is repealed.end insert

begin delete
10

46011.  

“Discharge” means any release of at least one barrel of
11oil into marine waters which is not authorized by any federal, state,
12or local government entity.

end delete
13begin insert

begin insertSEC. 164.end insert  

end insert

begin insertSection 46011 is added to the end insertbegin insertRevenue and Taxation
14Code
end insert
begin insert, to read:end insert

begin insert
15

begin insert46011.end insert  

(a) “Facility” means any of the following located in
16state waters or located where an oil spill may impact state waters:

17(1) A building, structure, installation, or equipment used in oil
18exploration, oil well drilling operations, oil production, oil refining,
19oil storage, oil gathering, oil processing, oil transfer, oil
20distribution, or oil transportation.

21(2) A marine terminal.

22(3) A pipeline that transports oil.

23(4) A railroad that transports oil as cargo.

24(5) A drill ship, semisubmersible drilling platform, jack-up type
25drilling rig, or any other floating or temporary drilling platform.

26(b) “Facility” does not include any of the following:

27(1) A vessel, except a vessel located and used for any purpose
28described in paragraph (5) of subdivision (a).

29(2) An owner or operator subject to Chapter 6.67 (commencing
30with Section 25270) of or Chapter 6.75 (commencing with Section
3125299.10) of Division 20 of the Health and Safety Code.

32(3) Operations on a farm, nursery, logging site, or construction
33site that are either of the following:

34(A) Do not exceed 20,000 gallons in a single storage tank.

35(B) Have a useable tank storage capacity not exceeding 75,000
36gallons.

37(4) A small craft refueling dock.

end insert
38begin insert

begin insertSEC. 165.end insert  

end insert

begin insertSection 46013 of the end insertbegin insertRevenue and Taxation Codeend insert
39begin insert is amended to read:end insert

P220  1

46013.  

“Feepayer” means any personbegin delete who may beend delete liable for
2the payment of a fee imposed by either Section 8670.40 or 8670.48
3of the Government Code.

4begin insert

begin insertSEC. 166.end insert  

end insert

begin insertSection 46014 of the end insertbegin insertRevenue and Taxation Codeend insert
5begin insert is repealed.end insert

begin delete
6

46014.  

“Independent crude oil producer” means any person or
7entity producing crude oil within this state who does not refine
8crude oil into product, and who does not own or operate any retail
9gasoline marketing facilities.

end delete
10begin insert

begin insertSEC. 167.end insert  

end insert

begin insertSection 46015 of the end insertbegin insertRevenue and Taxation Codeend insert
11begin insert is repealed.end insert

begin delete
12

46015.  

“Local government” means any chartered or general
13law city, chartered or general law county, or any city and county.

end delete
14begin insert

begin insertSEC. 168.end insert  

end insert

begin insertSection 46016 of the end insertbegin insertRevenue and Taxation Codeend insert
15begin insert is repealed.end insert

begin delete
16

46016.  

“Marine facility” means any facility of any kind, other
17than a vessel, which is or was used for the purposes of exploring
18for, drilling for, producing, storing, handling, transferring,
19processing, refining, or transporting crude oil or petroleum products
20and is located in marine waters, or is located where a discharge
21could impact marine waters unless the facility, (1) is subject to
22Chapter 6.67 (commencing with Section 25270) or Chapter 6.75
23(commencing with Section 25299.10) of Division 20 of the Health
24and Safety Code or, (2) is placed on a farm, nursery, logging site,
25small craft refueling dock as defined in Section 8670.3 of the
26Government Code, or construction site and does not exceed 20,000
27gallons in a single storage tank. For the purposes of this part, a
28drill ship, semisubmersible drilling platform, jack-up type drilling
29rig, or any other floating or temporary drilling platform is a “marine
30facility.”

end delete
31begin insert

begin insertSEC. 169.end insert  

end insert

begin insertSection 46017 of the end insertbegin insertRevenue and Taxation Codeend insert
32begin insert is amended to read:end insert

33

46017.  

“Marine terminal” means anybegin delete marineend delete facility used for
34transferring crude oil or petroleum products to or from tankers or
35barges. Forbegin delete theend delete purposes of this part, a marine terminal includes
36all piping not integrally connected to a tank facility as defined in
37subdivisionbegin delete (k)end deletebegin insert (n)end insert of Section 25270.2 of the Health and Safety
38Code.

39begin insert

begin insertSEC. 170.end insert  

end insert

begin insertSection 46018 of the end insertbegin insertRevenue and Taxation Codeend insert
40begin insert is repealed.end insert

begin delete
P221  1

46018.  

“Marine waters” means those waters subject to tidal
2influence, and includes the waterways used for waterborne
3commercial vessel traffic to the Port of Sacramento and the Port
4of Stockton.

end delete
5begin insert

begin insertSEC. 171.end insert  

end insert

begin insertSection 46018 is added to the end insertbegin insertRevenue and Taxation
6Code
end insert
begin insert, to read:end insert

begin insert
7

begin insert46018.end insert  

“Oil” means any kind of petroleum, liquid
8hydrocarbons, or petroleum products or any fraction or residues
9therefrom, including, but not limited to, crude oil, bunker fuel,
10gasoline, diesel fuel, aviation fuel, oil sludge, oil refuse, oil mixed
11with waste, and liquid distillates from unprocessed natural gas.

end insert
12begin insert

begin insertSEC. 172.end insert  

end insert

begin insertSection 46019 of the end insertbegin insertRevenue and Taxation Codeend insert
13begin insert is repealed.end insert

begin delete
14

46019.  

(a) “Operator” means any of the following:

15(1) Any person who owns, operates, charters by demise, or
16leases a vessel.

17(2) Any person who owns or operates a marine facility.

18(3) Any person who owns or operates a marine pipeline.

19(4) Any person who owns or operates a refinery.

20(b) “Operator” does not include a person who, without
21participating in the management of a vessel or marine facility,
22holds indicia of ownership primarily to protect his or her security
23interest in the vessel or marine facility. Also, “operator” does not
24include any person who owns the land beneath a marine facility
25or the facility itself if the person is not involved in the operation
26of the facility.

end delete
27begin insert

begin insertSEC. 173.end insert  

end insert

begin insertSection 46023 of the end insertbegin insertRevenue and Taxation Codeend insert
28begin insert is amended to read:end insert

29

46023.  

“Refinery” means a facilitybegin delete or location whichend deletebegin insert thatend insert
30 refines crude oil, including condensate and natural gasoline, into
31petroleum products, lubricating oils, coke, or asphalt.

32begin insert

begin insertSEC. 174.end insert  

end insert

begin insertSection 46024 of the end insertbegin insertRevenue and Taxation Codeend insert
33begin insert is repealed.end insert

begin delete
34

46024.  

“Responsible party” or “party responsible” means any
35of the following:

36(a) The owner or transporter of crude oil or petroleum products
37or a person or entity accepting responsibility for the crude oil or
38petroleum products.

P222  1(b) The owner, operator, or lessee of, or person who charters
2by demise, any vessel or marine facility, or a person or entity
3accepting responsibility for the vessel or marine facility.

end delete
4begin insert

begin insertSEC. 175.end insert  

end insert

begin insertSection 46025 of the end insertbegin insertRevenue and Taxation Codeend insert
5begin insert is repealed.end insert

begin delete
6

46025.  

“Spill” means any release of at least one barrel of crude
7oil or petroleum products into marine waters which is not
8authorized by any federal, state, or local government entity.

end delete
9begin insert

begin insertSEC. 176.end insert  

end insert

begin insertSection 46027 of the end insertbegin insertRevenue and Taxation Codeend insert
10begin insert is repealed.end insert

begin delete
11

46027.  

“State oil spill contingency plan” means the California
12oil spill contingency plan prepared pursuant to Article 3.5
13(commencing with Section 8574.1) of Chapter 7 of Division 1 of
14Title 2 of the Government Code.

end delete
15begin insert

begin insertSEC. 177.end insert  

end insert

begin insertSection 46027 is added to the end insertbegin insertRevenue and Taxation
16Code
end insert
begin insert, to read:end insert

begin insert
17

begin insert46027.end insert  

“State waters” or “waters of the state” means any
18surface water, including saline waters, marine waters, and
19freshwaters, within the boundaries of the state but does not include
20groundwater.

end insert
21begin insert

begin insertSEC. 178.end insert  

end insert

begin insertSection 46028 of the end insertbegin insertRevenue and Taxation Codeend insert
22begin insert is amended to read:end insert

23

46028.  

“Tanker” meansbegin delete anyend deletebegin insert aend insert self-propelledbegin delete, waterborne vessel,end delete
24begin insert vessel that isend insert constructed or adapted for the carriage ofbegin delete crudeend delete oil
25begin delete or petroleum productsend delete in bulk or in commercial quantities as cargo.

26begin insert

begin insertSEC. 179.end insert  

end insert

begin insertSection 46101 of the end insertbegin insertRevenue and Taxation Codeend insert
27begin insert is amended to read:end insert

28

46101.  

Every person who operatesbegin delete an oilend deletebegin insert aend insert refinery in this state,
29a marine terminal inbegin delete marineend delete watersbegin insert of the stateend insert, or operates a
30pipelinebegin delete across, under, or through marine waters or any pipelineend delete
31 to transport crude oilbegin insert or petroleum productsend insert out of the state shall
32register with the board.

33begin insert

begin insertSEC. 180.end insert  

end insert

begin insertSection 5024 of the end insertbegin insertVehicle Codeend insertbegin insert is amended to
34read:end insert

35

5024.  

(a) A person described in Section 5101 may also apply
36for a set of commemorative collegiate reflectorized license plates,
37and the department shall issue those special license plates in lieu
38of the regular license plates. The collegiate reflectorized plates
39shall be of a distinctive design, and shall be available in a special
40series of letters or numbers, or both, as determined by the
P223  1department. The collegiate reflectorized plates shall also contain
2the name of the participating institution as well as the reflectorized
3logotype, motto, symbol, or other distinctive design, as approved
4by the department, representing the participating university or
5college selected by the applicant. The department may issue the
6commemorative collegiate reflectorized license plates as
7environmental license plates, as defined in Section 5103, in a
8 combination of numbers or letters, or both, as requested by the
9owner or lessee of the vehicle.

10(b) Any public or private postsecondary educational institution
11in the state, which is accredited or has been accepted as a
12recognized candidate for accreditation by the Western Association
13of Schools and Colleges, may indicate to the department its
14decision to be included in the commemorative collegiate license
15plate program and submit its distinctive design for the logotype,
16motto, symbol, or other design. However, no public or private
17postsecondary educational institution may be included in the
18program until not less than 5,000 applications are received for
19license plates containing that institution’s logotype, motto, symbol,
20or other design. Each participating institution shall collect and hold
21applications for collegiate license plates until it has received at
22least 5,000 applications. Once the institution has received at least
235,000 applications, it shall submit the applications, along with the
24necessary fees, to the department. Upon receiving the first
25application, the institution shall have one calendar year to receive
26the remaining required applications. If, after that one calendar
27year, 5,000 applications have not been received, the institution
28shall refund to all applicants any fees or deposits which have been
29collected.

30(c) In addition to the regular fees for an original registration, a
31renewal of registration, or a transfer of registration, the following
32commemorative collegiate license plate fees shall be paid:

33(1) Fifty dollars ($50) for the initial issuance of the plates. These
34plates shall be permanent and shall not be required to be replaced.

35(2) Forty dollars ($40) for each renewal of registration which
36includes the continued display of the plates.

37(3) Fifteen dollars ($15) for transfer of the plates to another
38vehicle.

39(4) Thirty-five dollars ($35) for replacement plates, if the plates
40become damaged or unserviceable.

P224  1(d) When payment of renewal fees is not required as specified
2in Section 4000, or when the person determines to retain the
3commemorative collegiate license plates upon sale, trade, or other
4release of the vehicle upon which the plates have been displayed,
5the person shall notify the department and the person may retain
6the plates.

7(e) Of the revenue derived from the additional special fees
8provided in this section, less costs incurred by the department
9pursuant to this section, one-half shall be deposited in the
10California Collegiate License Plate Fund, which is hereby created,
11and one-half shall be deposited in thebegin delete Resources License Plate
12Fund, which is hereby createdend delete
begin insert Californiaend insertbegin insert Environmental License
13Plate Fundend insert
.

14(f) The money in the California Collegiate License Plate Fund
15is, notwithstanding Section 13340 of the Government Code,
16continuously appropriated to the Controller for allocation as
17follows:

18(1) To the governing body of participating public institutions
19in the proportion that funds are collected on behalf of each, to be
20used for need-based scholarships, distributed according to federal
21student aid guidelines.

22(2) With respect to funds collected on behalf of accredited
23nonprofit, private, and independent colleges and universities in
24the state, to the California Student Aid Commission for grants to
25students at those institutions, in the proportion that funds are
26collected on behalf of each institution, who demonstrate eligibility
27and need in accordance with the Cal Grant Program pursuant to
28begin delete Article 3 (commencing with Section 69530) of Chapter 2end deletebegin insert Chapter
291.7 (commencing with Section 69430)end insert
of Part 42 of the Education
30Code, but who did not receive an award based on a listing prepared
31by the California Student Aid Commission.

32(g) The scholarships and grants shall be awarded without regard
33to race, religion, creed, sex, or age.

begin delete

34(h) The money in the Resources License Plate Fund is available,
35upon appropriation, for the purposes of natural resources
36preservation, enhancement, and restoration.

37(i) All revenues deposited in, and expenditures from, the
38California Collegiate License Plate Fund shall be audited by the
39Auditor General on December 1, 1993, and December 1, 1995.

end delete
begin insert

P225  1(h) The Resources License Plate Fund is hereby abolished and
2all remaining funds shall be transferred to the California
3Environmental License Plate Fund effective July 1, 2014.

end insert
4begin 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

5

174.  

begin insert(a)end insertbegin insertend insertThe Legislature hereby finds and declares that in order
6to provide for the orderly and efficient administration of the water
7resources of thebegin delete stateend deletebegin insert state,end insert it is necessary to establish a control
8boardbegin delete whichend deletebegin insert thatend insert shall exercise the adjudicatory and regulatory
9functions of the state in the field of water resources.

begin delete

10It

end delete

11begin insert(b)end insertbegin insertend insertbegin insertItend insert is also the intention of the Legislature to combine the
12water rights and the water pollution and water quality functions
13of state government to provide for consideration of water pollution
14and water quality, and availability of unappropriated water
15whenever applications for appropriation of water are granted or
16waste discharge requirements or water quality objectives are
17established.

begin insert

18(c) This section shall become inoperative on July 1, 2014, and,
19as of January 1, 2015, is repealed, unless a later enacted statute,
20that becomes operative on or before January 1, 2015, deletes or
21extends the dates on which it becomes inoperative and is repealed.

end insert
22begin 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
23

begin insert174.end insert  

(a) The Legislature hereby finds and declares that in
24order to provide for the orderly and efficient administration of the
25water resources of the state, it is necessary to establish a control
26board that shall exercise the adjudicatory and regulatory functions
27of the state in the field of water resources.

28(b) It is also the intention of the Legislature to combine the
29water rights, water quality, and drinking water functions of the
30state government to provide for coordinated consideration of water
31rights, water quality, and safe and reliable drinking water.

32(c) This section shall become operative on July 1, 2014.

end insert
33begin insert

begin insertSEC. 183.end insert  

end insert

begin insertSection 10783 of the end insertbegin insertWater Codeend insertbegin insert is amended to
34read:end insert

35

10783.  

(a) The Legislature finds and declares that protecting
36the state’s groundwater for beneficial use, particularly sources and
37potential sources of drinking water, is of paramount concern.

38(b) The Legislature further finds and declares that strategic,
39scientifically based groundwater monitoring of the state’s oil and
P226  1gas fields is critical to allaying the public’s concerns regarding
2well stimulation treatments of oil and gas wells.

3(c) On or before July 1, 2015, in order to assess the potential
4effects of well stimulation treatments, as defined in Article 3
5(commencing with Section 3150) of Chapter 1 of Division 3 of
6the Public Resources Code, on the state’s groundwater resources
7 in a systematic way, the state board shall develop model
8groundwater monitoringbegin delete criteriaend deletebegin insert criteria,end insert to be implemented either
9on a well-by-well basis for a well subject to well stimulation
10begin delete treatment,end deletebegin insert treatmentend insert or on a regional scale. The model criteria shall
11address a range of spatial sampling scales from methods for
12conducting appropriate monitoring on individual oil and gas wells
13subject to a well stimulation treatment, to methods for conducting
14a regional groundwater monitoring program. The state board shall
15take into consideration the recommendations received pursuant to
16subdivision (d) and shall include in the model criteria, at a
17minimum, the components identified in subdivision (f). The state
18board shall prioritize monitoring of groundwater that is or has the
19potential to be a source of drinking water, but shall protect all
20waters designated for any beneficial use.

21(d) The state board, in consultation with the Department of
22Conservation, Division of Oil, Gas, and Geothermal Resources,
23shall seek the advice of experts on the design of the model
24groundwater monitoring criteria. The experts shall assess and make
25recommendations to the state board on the model criteria. These
26recommendations shall prioritize implementation of regional
27groundwater monitoring programs statewide, as warranted, based
28upon the prevalence of well stimulation treatments of oil and gas
29wells and groundwater suitable as a source of drinking water.

30(e) The state board shall also seek the advice of stakeholders
31representing the diverse interests of the oil- and gas-producing
32areas of the state. The stakeholders shall include the oil and gas
33industry, agriculture, environmental justice, and local government,
34among others, with regional representation commensurate with
35the intensity of oil and gas development in that area. The
36stakeholders shall also make recommendations to the state board
37regarding the development and implementation of groundwater
38monitoring criteria, including priority locations for implementation.

39(f) The scope and nature of the model groundwater monitoring
40criteria shall include the determination of all of the following:

P227  1(1) An assessment of the areas to conduct groundwater quality
2monitoring and their appropriate boundaries.

3(2) A list of the constituents to measure and assess water quality.

4(3) The location, depth, and number of monitoring wells
5necessary to detect groundwater contamination at spatial scales
6ranging from an individual oil and gas well to a regional
7groundwater basin including one or more oil and gas fields.

8(4) The frequency and duration of the monitoring.

9(5) A threshold criteria indicating a transition from well-by-well
10monitoring to a regional monitoring program.

11(6) Data collection and reporting protocols.

12(7) Public access to the collected data under paragraph (6).

13(g) Factors to consider in addressing subdivision (f) shall
14include, but are not limited to, all of the following:

15(1) The existing quality and existing and potential use of the
16groundwater.

17(2) Groundwater that is not a source of drinking water consistent
18with the United States Environmental Protection Agency’s
19definition of an Underground Source of Drinking Water as
20containing less than 10,000 milligrams per liter total dissolved
21solids in groundwater (40 C.F.R. 144.3), including exempt aquifers
22pursuant to Section 146.4 of Title 40 of the Code of Federal
23Regulations.

24(3) Proximity to human population, public water service wells,
25and private groundwater use, if known.

26(4) The presence of existing oil and gas production fields,
27including the distribution, physical attributes, and operational status
28of oil and gas wells therein.

29(5) Events, including well stimulation treatments and oil and
30gas well failures, among others, that have the potential to
31contaminate groundwater, appropriate monitoring to evaluate
32whether groundwater contamination can be attributable to a
33particular event, and any monitoring changes necessary if
34groundwater contamination is observed.

35(h) (1) On or before January 1, 2016, the state board or
36appropriate regional board shall begin implementation of the
37regional groundwater monitoring programs based upon the
38begin delete developedend deletebegin insert modelend insert criteriabegin insert developedend insert under subdivision (c).

39(2) In the absence of state implementation of a regional
40groundwater monitoring program, a well owner or operator may
P228  1develop and implement an area-specific groundwater monitoring
2begin delete programend deletebegin insert program, for the purpose of subparagraph (D) of
3paragraph (3) of subdivision (d) of Section 3160 of the Public
4Resources Code,end insert
based upon thebegin delete developedend deletebegin insert modelend insert criteria
5begin insert developedend insert under subdivision (c), subject to approval by the state
6or regional board,begin delete if applicable,end delete and that meets the requirements
7of this section.

8(i) The model criteria for either a well-by-well basis for a well
9subject to well stimulation treatment, or for a regional groundwater
10monitoring program, shall be used to satisfy the permitting
11requirements for well stimulation treatments on oil and gas wells
12pursuant to Section 3160 of the Public Resources Code. The model
13criteria used on a well-by-well basis for a well subject to a well
14stimulation treatment shall be used where no regional groundwater
15monitoring plan approved by the state or regional board, if
16applicable, exists and has been implemented by either the state or
17regional board or the well owner or operator.

18(j) The model criteria shall accommodate monitoring where
19surface access is limited. Monitoring is not required for oil and
20gas wells where the wells do not penetrate groundwater of
21beneficial use, as determined by a regional water quality control
22board, orbegin delete do notend deletebegin insert solelyend insert penetrate exempt aquifers pursuant to
23Section 146.4 of Title 40 of the Code of Federal Regulations.

24(k) (1) The model criteria and groundwater monitoring
25programs shall be reviewed and updated periodically, as needed.

26(2) The use of the United States Environmental Protection
27Agency’s definition of an Underground Source of Drinking Water
28as containing less than 10,000 milligrams per liter total dissolved
29solids in groundwater (40 C.F.R. 144.3) and whether exempt
30aquifers pursuant to Section 146.4 of Title 40 of the Code of
31Federal Regulations shall be subject to groundwater monitoring
32shall be reviewed by the state board through a public process on
33or before January 1, 2020.

34(l) (1) All groundwater quality data collected pursuant to
35subparagraph (F) of paragraph (1) of subdivision (d) of Section
363160 of the Public Resources Code shall be submitted to the state
37board in an electronic format that is compatible with the state
38board’s GeoTracker database, following the guidelines detailed in
39Chapter 30 (commencing with Section 3890) of Division 3 of Title
4023 of the California Code of Regulations.

P229  1(2) A copy of the reported data under paragraph (1) shall be
2transferred by the state board to a public, nonprofit
3doctoral-degree-granting educational institution located in the San
4Joaquin Valley, administered pursuant to Section 9 of Article IX
5of the California Constitution, in order to form the basis of a
6comprehensive groundwater quality data repository to promote
7research, foster interinstitutional collaboration, and seek
8understanding of the numerous factors influencing the state’s
9groundwater.

10(m) The adoption of criteria required pursuant to this section is
11exempt from the rulemaking provisions of the Administrative
12Procedure Act (Chapter 3.5 (commencing with Section 11340) of
13Part 1 of Division 3 of Title 2 of the Government Code). The
14adoption of criteria pursuant to this section shall instead be
15accomplished by means of a public process reasonably calculated
16to give those persons interested in their adoption an opportunity
17to be heard.

18begin insert

begin insertSEC. 184.end insert  

end insert

begin insertSection 13272 of the end insertbegin insertWater Codeend insertbegin insert is amended to
19read:end insert

20

13272.  

(a) Except as provided by subdivision (b), any person
21who, without regard to intent or negligence, causes or permits any
22oil or petroleum product to be discharged in or on any waters of
23the state, or discharged or deposited where it is, or probably will
24be, discharged in or on any waters of the state, shall, as soon as
25(1) that person has knowledge of the discharge, (2) notification is
26possible, and (3) notification can be provided without substantially
27impeding cleanup or other emergency measures, immediately
28notify the Office of Emergency Services of the discharge in
29accordance with the spill reporting provision of the California oil
30spill contingency plan adopted pursuant to Article 3.5 (commencing
31with Section 8574.1) of Chapter 7 of Division 1 of Title 2 of the
32Government Code.begin delete This section shall not apply to spills of oil into
33marine waters as defined in subdivision (f) of Section 8670.3 of
34the Government Code.end delete

35(b) The notification required by this section shall not apply to
36a discharge in compliance with waste discharge requirements or
37other provisions of this division.

38(c) Any person who fails to provide the notice required by this
39section is guilty of a misdemeanor and shall be punished by a fine
40of not less than five hundred dollars ($500) or more than five
P230  1thousand dollars ($5,000) per day for each day of failure to notify,
2or imprisonment of not more than one year, or both. Except where
3a discharge to the waters of this state would have occurred but for
4cleanup or emergency response by a public agency, this subdivision
5shall not apply to any discharge to landbegin delete whichend deletebegin insert thatend insert does not result
6in a discharge to the waters of this state. This subdivision shall not
7apply to any person who is fined by the federal government for a
8failure to report a discharge of oil.

9(d) Notification received pursuant to this section or information
10obtained by use of that notification shall not be used against any
11person providing the notification in any criminal case, except in
12a prosecution for perjury or giving a false statement.

13(e) Immediate notification to the appropriate regional board of
14the discharge, in accordance with reporting requirements set under
15Section 13267 or 13383, shall constitute compliance with the
16requirements of subdivision (a).

17(f) The reportable quantity for oil or petroleum products shall
18be one barrel (42 gallons) or more, by direct discharge to the
19receiving waters, unless a more restrictive reporting standard for
20a particular body of water is adopted.

21begin insert

begin insertSEC. 185.end insert  

end insert

begin insertSection 13350 of the end insertbegin insertWater Codeend insertbegin insert is amended to
22read:end insert

23

13350.  

(a) A person who (1) violates a cease and desist order
24or cleanup and abatement order hereafter issued, reissued, or
25amended by a regional board or the state board, or (2) in violation
26of a waste discharge requirement, waiver condition, certification,
27or other order or prohibition issued, reissued, or amended by a
28regional board or the state board, discharges waste, or causes or
29permits waste to be deposited where it is discharged, into the waters
30of the state, or (3) causes or permits any oil or any residuary
31product of petroleum to be deposited in or on any of the waters of
32the state, except in accordance with waste discharge requirements
33or other actions or provisions of this division, shall be liable civilly,
34and remedies may be proposed, in accordance with subdivision
35(d) or (e).

36(b) (1) A person who, without regard to intent or negligence,
37causes or permits a hazardous substance to be discharged in or on
38any of the waters of the state, except in accordance with waste
39discharge requirements or other provisions of this division, shall
40be strictly liable civilly in accordance with subdivision (d) or (e).

P231  1(2) For purposes of this subdivision, the term “discharge”
2includes only those discharges for which Section 13260 directs
3that a report of waste discharge shall be filed with the regional
4board.

5(3) For purposes of this subdivision, the term “discharge” does
6not include an emission excluded from the applicability of Section
7311 of the Clean Water Act (33 U.S.C. Sec. 1321) pursuant to
8Environmental Protection Agency regulations interpreting Section
9311(a)(2) of the Clean Water Act (33 U.S.C. Sec. 1321(a)(2)).

10(c) A person shall not be liable under subdivision (b) if the
11discharge is caused solely by any one or combination of the
12following:

13(1) An act of war.

14(2) An unanticipated grave natural disaster or other natural
15phenomenon of an exceptional, inevitable, and irresistible
16character, the effects of which could not have been prevented or
17avoided by the exercise of due care or foresight.

18(3) Negligence on the part of the state, the United States, or any
19department or agency thereof. However, this paragraph shall not
20be interpreted to provide the state, the United States, or any
21department or agency thereof a defense to liability for any
22discharge caused by its own negligence.

23(4) An intentional act of a third party, the effects of which could
24not have been prevented or avoided by the exercise of due care or
25foresight.

26(5) Any other circumstance or event that causes the discharge
27despite the exercise of every reasonable precaution to prevent or
28mitigate the discharge.

29(d) The court may impose civil liability either on a daily basis
30or on a per gallon basis, but not on both.

31(1) The civil liability on a daily basis shall not exceed fifteen
32thousand dollars ($15,000) for each day the violation occurs.

33(2) The civil liability on a per gallon basis shall not exceed
34twenty dollars ($20) for each gallon of waste discharged.

35(e) The state board or a regional board may impose civil liability
36administratively pursuant to Article 2.5 (commencing with Section
3713323) of Chapter 5 either on a daily basis or on a per gallon basis,
38but not on both.

39(1) The civil liability on a daily basis shall not exceed five
40thousand dollars ($5,000) for each day the violation occurs.

P232  1(A) When there is a discharge, and a cleanup and abatement
2order is issued, except as provided in subdivision (f), the civil
3liability shall not be less than five hundred dollars ($500) for each
4day in which the discharge occurs and for each day the cleanup
5and abatement order is violated.

6(B) When there is no discharge, but an order issued by the
7regional board is violated, except as provided in subdivision (f),
8the civil liability shall not be less than one hundred dollars ($100)
9for each day in which the violation occurs.

10(2) The civil liability on a per gallon basis shall not exceed ten
11dollars ($10) for each gallon of waste discharged.

12(f) A regional board shall not administratively impose civil
13liability in accordance with paragraph (1) of subdivision (e) in an
14amount less than the minimum amount specified, unless the
15regional board makes express findings setting forth the reasons
16for its action based upon the specific factors required to be
17considered pursuant to Section 13327.

18(g) The Attorney General, upon request of a regional board or
19the state board, shall petition the superior court to impose, assess,
20and recover the sums. Except in the case of a violation of a cease
21and desist order, a regional board or the state board shall make the
22request only after a hearing, with due notice of the hearing given
23to all affected persons. In determining the amount to be imposed,
24assessed, or recovered, the court shall be subject to Section 13351.

25(h) Article 3 (commencing with Section 13330) and Article 6
26(commencing with Section 13360) apply to proceedings to impose,
27assess, and recover an amount pursuant to this article.

28(i)  A person who incurs any liability established under this
29section shall be entitled to contribution for that liability from a
30third party, in an action in the superior court and upon proof that
31the discharge was caused in whole or in part by an act or omission
32of the third party, to the extent that the discharge is caused by the
33act or omission of the third party, in accordance with the principles
34of comparative fault.

35(j) Remedies under this section are in addition to, and do not
36supersede or limit, any and all other remedies, civil or criminal,
37except that no liability shall be recoverable under subdivision (b)
38for any discharge for which liability is recovered under Section
3913385.

P233  1(k) Notwithstanding any other law, all funds generated by the
2imposition of liabilities pursuant to this section shall be deposited
3into the Waste Discharge Permit Fund. These moneys shall be
4separately accounted for, and shall bebegin delete expended by the state board,end delete
5begin insert available for expenditure,end insert upon appropriation by the Legislature,
6begin insert for the following purposes:end insert

7begin insert(1)end insertbegin insertend insertbegin insertTo the state boardend insert to assist regional boards, and other public
8agencies with authority to clean up waste or abate the effects of
9the waste, in cleaning up or abating the effects of the waste on
10waters of the state, or for the purposes authorized in Section 13443,
11or to assist in implementing Chapter 7.3 (commencing with Section
1213560).

begin insert

13(2) Up to five hundred thousand dollars ($500,000) per fiscal
14year, to assist the Department of Fish and Wildlife to address the
15impacts of marijuana cultivation on the natural resources of the
16state.

end insert
begin insert

17(l) This section shall remain in effect only until July 1, 2017,
18and as of that date is repealed, unless a later enacted statute, that
19is enacted before July 1, 2017, deletes or extends that date.

end insert
20begin 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
21

begin insert13350.end insert  

(a) A person who (1) violates a cease and desist order
22or cleanup and abatement order hereafter issued, reissued, or
23amended by a regional board or the state board, or (2) in violation
24of a waste discharge requirement, waiver condition, certification,
25or other order or prohibition issued, reissued, or amended by a
26regional board or the state board, discharges waste, or causes or
27permits waste to be deposited where it is discharged, into the
28waters of the state, or (3) causes or permits any oil or any
29residuary product of petroleum to be deposited in or on any of the
30waters of the state, except in accordance with waste discharge
31requirements or other actions or provisions of this division, shall
32be liable civilly, and remedies may be proposed, in accordance
33with subdivision (d) or (e).

34(b) (1) A person who, without regard to intent or negligence,
35causes or permits a hazardous substance to be discharged in or
36on any of the waters of the state, except in accordance with waste
37discharge requirements or other provisions of this division, shall
38be strictly liable civilly in accordance with subdivision (d) or (e).

39(2) For purposes of this subdivision, the term “discharge”
40includes only those discharges for which Section 13260 directs
P234  1that a report of waste discharge shall be filed with the regional
2board.

3(3) For purposes of this subdivision, the term “discharge” does
4not include an emission excluded from the applicability of Section
5311 of the Clean Water Act (33 U.S.C. Sec. 1321) pursuant to
6Environmental Protection Agency regulations interpreting Section
7311(a)(2) of the Clean Water Act (33 U.S.C. Sec. 1321(a)(2)).

8(c) A person shall not be liable under subdivision (b) if the
9discharge is caused solely by any one or combination of the
10following:

11(1) An act of war.

12(2) An unanticipated grave natural disaster or other natural
13phenomenon of an exceptional, inevitable, and irresistible
14character, the effects of which could not have been prevented or
15avoided by the exercise of due care or foresight.

16(3) Negligence on the part of the state, the United States, or any
17department or agency thereof. However, this paragraph shall not
18be interpreted to provide the state, the United States, or any
19department or agency thereof a defense to liability for any
20discharge caused by its own negligence.

21(4) An intentional act of a third party, the effects of which could
22not have been prevented or avoided by the exercise of due care or
23foresight.

24(5) Any other circumstance or event that causes the discharge
25despite the exercise of every reasonable precaution to prevent or
26mitigate the discharge.

27(d) The court may impose civil liability either on a daily basis
28or on a per gallon basis, but not on both.

29(1) The civil liability on a daily basis shall not exceed fifteen
30thousand dollars ($15,000) for each day the violation occurs.

31(2) The civil liability on a per gallon basis shall not exceed
32twenty dollars ($20) for each gallon of waste discharged.

33(e) The state board or a regional board may impose civil liability
34administratively pursuant to Article 2.5 (commencing with Section
3513323) of Chapter 5 either on a daily basis or on a per gallon
36basis, but not on both.

37(1) The civil liability on a daily basis shall not exceed five
38thousand dollars ($5,000) for each day the violation occurs.

39(A) When there is a discharge, and a cleanup and abatement
40order is issued, except as provided in subdivision (f), the civil
P235  1liability shall not be less than five hundred dollars ($500) for each
2day in which the discharge occurs and for each day the cleanup
3and abatement order is violated.

4(B) When there is no discharge, but an order issued by the
5regional board is violated, except as provided in subdivision (f),
6the civil liability shall not be less than one hundred dollars ($100)
7for each day in which the violation occurs.

8(2) The civil liability on a per gallon basis shall not exceed ten
9dollars ($10) for each gallon of waste discharged.

10(f) A regional board shall not administratively impose civil
11liability in accordance with paragraph (1) of subdivision (e) in an
12amount less than the minimum amount specified, unless the
13regional board makes express findings setting forth the reasons
14for its action based upon the specific factors required to be
15considered pursuant to Section 13327.

16(g) The Attorney General, upon request of a regional board or
17the state board, shall petition the superior court to impose, assess,
18and recover the sums. Except in the case of a violation of a cease
19and desist order, a regional board or the state board shall make
20the request only after a hearing, with due notice of the hearing
21given to all affected persons. In determining the amount to be
22imposed, assessed, or recovered, the court shall be subject to
23Section 13351.

24(h) Article 3 (commencing with Section 13330) and Article 6
25(commencing with Section 13360) apply to proceedings to impose,
26assess, and recover an amount pursuant to this article.

27(i)  A person who incurs any liability established under this
28section shall be entitled to contribution for that liability from a
29third party, in an action in the superior court and upon proof that
30the discharge was caused in whole or in part by an act or omission
31of the third party, to the extent that the discharge is caused by the
32act or omission of the third party, in accordance with the principles
33of comparative fault.

34(j) Remedies under this section are in addition to, and do not
35supersede or limit, any and all other remedies, civil or criminal,
36except that no liability shall be recoverable under subdivision (b)
37for any discharge for which liability is recovered under Section
3813385.

39(k) Notwithstanding any other law, all funds generated by the
40imposition of liabilities pursuant to this section shall be deposited
P236  1into the Waste Discharge Permit Fund. These moneys shall be
2separately accounted for, and shall be expended by the state board,
3upon appropriation by the Legislature, to assist regional boards,
4and other public agencies with authority to clean up waste or abate
5the effects of the waste, in cleaning up or abating the effects of the
6waste on waters of the state, or for the purposes authorized in
7Section 13443, or to assist in implementing Chapter 7.3
8(commencing with Section 13560).

9(l) This section shall become operative on July 1, 2017.

end insert
10begin insert

begin insertSEC. 187.end insert  

end insert

begin insertSection 13478 of the end insertbegin insertWater Codeend insertbegin insert is amended to
11read:end insert

12

13478.  

begin insert(a)end insertbegin insertend insertThe board may undertake any of the following:

begin delete

13(a)

end delete

14begin insert(1)end insert Enter into agreements with the federal government for
15federal contributions to the fund.

begin delete

16(b)

end delete

17begin insert(2)end insert Accept federal contributions to the fund.

begin delete

18(c)

end delete

19begin insert(3)end insert Enter into an agreement with, and accept matching funds
20from, a municipality. A municipality that seeks to enter into an
21agreement with the board and provide matching funds pursuant to
22this subdivision shall provide to the board evidence of the
23availability of those funds in the form of a written resolution
24adopted by the governing body of the municipality before it
25requests a preliminary financial assistance commitment.

begin delete

26(d)

end delete

27begin insert(4)end insert Use moneys in the fund for the purposes permitted by the
28federal act.

begin delete

29(e)

end delete

30begin insert(5)end insert Provide for the deposit of matching funds and any other
31available and necessary moneys into the fund.

begin delete

32(f)

end delete

33begin insert(6)end insert Make requests on behalf of the state for deposit into the fund
34of available federal moneys under the federal act and determine
35on behalf of the state appropriate maintenance of progress toward
36compliance with the enforceable deadlines, goals, and requirements
37of the federal act.

begin delete

38(g)

end delete

39begin insert(7)end insert Determine on behalf of the state that publicly owned
40treatment works that receive financial assistance from the fund
P237  1will meet the requirements of, and otherwise be treated as required
2by, the federal act.

begin delete

3(h)

end delete

4begin insert(8)end insert Provide for appropriate audit, accounting, and fiscal
5management services, plans, and reports relative to the fund.

begin delete

6(i)

end delete

7begin insert(9)end insert Take additional incidental action as appropriate for the
8adequate administration and operation of the fund.

begin delete

9(j)

end delete

10begin insert(10)end insert Charge municipalities that elect to provide matching funds
11a fee to cover the actual cost of obtaining the federal funds pursuant
12to Section 603(d)(7) of the federal act (33 U.S.C. Sec. 1383(d)(7))
13and processing the financial assistance application. The fee shall
14be waived by the board if sufficient funds to cover those costs are
15available from other sources.

begin delete

16(k)

end delete

17begin insert(11)end insert Use money returned to the fund under clause (ii) of
18subparagraph (D) of paragraph (1) of subdivision (b) of Section
1913480, and any other source of matching funds, if not prohibited
20by statute, as matching funds for the federal administrative
21allowance under Section 603(d)(7) of the federal act (33 U.S.C.
22Sec. 1383(d)(7)).

begin delete

23(l)

end delete

24begin insert(12)end insert Expend money repaid by financial assistance recipients for
25financial assistance service under clauses (i) and (ii) of
26subparagraph (D) of paragraph (1) of subdivision (b) of Section
2713480 to pay administrative costs incurred by the board under this
28chapter.

begin insert

29(b) This section shall become inoperative on July 1, 2014, and,
30as of January 1, 2015, is repealed, unless a later enacted statute,
31that becomes operative on or before January 1, 2015, deletes or
32extends the dates on which it becomes inoperative and is repealed.

end insert
33begin 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
34

begin insert13478.end insert  

(a) The board may undertake any of the following:

35(1) Enter into agreements with the federal government for
36federal contributions to the fund.

37(2) Accept federal contributions to the fund.

38(3) Enter into an agreement with, and accept matching funds
39from, a municipality. A municipality that seeks to enter into an
40agreement with the board and provide matching funds pursuant
P238  1to this subdivision shall provide to the board evidence of the
2availability of those funds in the form of a written resolution
3adopted by the governing body of the municipality before it
4requests a preliminary financial assistance commitment.

5(4) Use moneys in the fund for the purposes permitted by the
6federal act.

7(5) Provide for the deposit of matching funds and any other
8available and necessary moneys into the fund.

9(6) Make requests on behalf of the state for deposit into the fund
10of available federal moneys under the federal act and determine
11on behalf of the state appropriate maintenance of progress toward
12compliance with the enforceable deadlines, goals, and
13requirements of the federal act.

14(7) Determine on behalf of the state that publicly owned
15treatment works that receive financial assistance from the fund
16will meet the requirements of, and otherwise be treated as required
17by, the federal act.

18(8) Provide for appropriate audit, accounting, and fiscal
19management services, plans, and reports relative to the fund.

20(9) Take additional incidental action as appropriate for the
21adequate administration and operation of the fund.

22(10) Charge municipalities that elect to provide matching funds
23a fee to cover the actual cost of obtaining the federal funds
24pursuant to Section 603(d)(7) of the federal act (33 U.S.C. Sec.
251383(d)(7)) and processing the financial assistance application.
26The fee shall be waived by the board if sufficient funds to cover
27those costs are available from other sources.

28(11) Use money returned to the fund under clause (ii) of
29subparagraph (D) of paragraph (1) of subdivision (b) of Section
3013480, and any other source of matching funds, if not prohibited
31by statute, as matching funds for the federal administrative
32allowance under Section 603(d)(7) of the federal act (33 U.S.C.
33Sec. 1383(d)(7)).

34(12) Expend money repaid by financial assistance recipients
35for financial assistance service under clauses (i) and (ii) of
36subparagraph (D) of paragraph (1) of subdivision (b) of Section
3713480 to pay administrative costs incurred by the board under
38this chapter.

39(13) Engage in the transfer of capitalization grant funds, as
40authorized by Section 35.3530(c) of Title 40 of the Code of Federal
P239  1Regulations and reauthorized by Public Law 109-54, to the extent
2set forth in an Intended Use Plan, that shall be subject to approval
3by the board.

4(14) Cross-collateralize revenue bonds with the Safe Drinking
5Water State Revolving Fund created pursuant to Section 116760.30
6of the Health and Safety Code, as authorized by Section 35.3530(d)
7of Title 40 of the Code of Federal Regulations.

8(b) This section shall become operative on July 1, 2014.

end insert
9begin insert

begin insertSEC. 189.end insert  

end insert

begin insertSection 13485 of the end insertbegin insertWater Codeend insertbegin insert is amended to
10read:end insert

11

13485.  

begin insert(a)end insertbegin insertend insertThe board may adopt rules and regulations
12necessary or convenient to implement this chapter and to meet
13federal requirements pursuant to the federal act.

begin insert

14(b) 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. 190.end insert  

end insert

begin insertSection 13485 is added to the end insertbegin insertWater Codeend insertbegin insert, to read:end insert

begin insert
19

begin insert13485.end insert  

(a) The board may adopt rules and regulations
20necessary or convenient to implement this chapter and to meet
21federal requirements pursuant to the federal act.

22(b) The board may implement this chapter through a policy
23handbook that shall not be subject to the requirements of Chapter
243.5 (commencing with Section 11340) of Part 1 of Division 3 of
25the Government Code.

26(c) This section shall become operative on July 1, 2014.

end insert
27begin 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
28

begin insert13528.5.end insert  

(a) The state board may carry out the duties and
29authority granted to a regional board pursuant to this chapter.

30(b) This section shall become operative on July 1, 2014.

end insert
31begin insert

begin insertSEC. 192.end insert  

end insert
begin insert

(a) The Director of Finance may make available
32for expenditure in the 2014-15 fiscal year from the Oil Spill
33Prevention and Administration Fund, established pursuant to
34Section 8670.38 of the Government Code, an augmentation of Item
350860-001-0320 of the Budget Act of 2014 in an amount equal to
36the reasonable costs incurred by the State Board of Equalization
37associated with amendments made to Section 8670.40 of the
38Government Code in the 2013-14 Regular Session.

end insert
begin insert

P240  1(b) Any augmentation shall be authorized no sooner than 30
2days following the transmittal of the approval to the Chairperson
3of the Joint Legislative Budget Committee.

end insert
4begin insert

begin insertSEC. 193.end insert  

end insert
begin insert

Notwithstanding any other law, the unencumbered
5 balance of the appropriation provided for in Item 4265-111-0001
6of Chapter 2 of the Statutes of 2014, for the purposes specified in
7Provision 3 of that item, is hereby appropriated to the State Water
8Resources Control Board, as of June 30, 2014. This fund shall be
9available for encumbrance or expenditure until June 30, 2016, for
10purposes consistent with subdivisions (a) and (c) of Section 75021
11of the Public Resources Code for grants pursuant to the Public
12Water System Drought Emergency Funding Guidelines adopted
13by the State Department of Public Health on March 28, 2014, for
14public water systems to address drought-related drinking water
15emergencies. The State Water Resources Control Board shall make
16every effort to use other funds available to address drinking water
17emergencies, including federal funds made available for the
18drought prior to using the funds specified in this section.

end insert
19begin insert

begin insertSEC. 194.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant
20to Section 6 of Article XIII B of the California Constitution because
21the only costs that may be incurred by a local agency or school
22district will be incurred because this act creates a new crime or
23infraction, eliminates a crime or infraction, or changes the penalty
24for a crime or infraction, within the meaning of Section 17556 of
25the Government Code, or changes the definition of a crime within
26the meaning of Section 6 of Article XIII B of the California
27Constitution.

end insert
28begin insert

begin insertSEC. 195.end insert  

end insert
begin insert

This act is a bill providing for appropriations related
29to the Budget Bill within the meaning of subdivision (e) of Section
3012 of Article IV of the California Constitution, has been identified
31as related to the budget in the Budget Bill, and shall take effect
32immediately.

end insert
begin delete
33

SECTION 1.  

It is the intent of the Legislature to enact statutory
34changes relating to the Budget Act of 2014.

end delete


O

    98