BILL ANALYSIS                                                                                                                                                                                                    �



                                                                            



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                                    THIRD READING


          Bill No:  AB 2678
          Author:   Ridley-Thomas (D), et al.
          Amended:  8/30/14 in Senate
          Vote:     27 - Urgency


          PRIOR VOTES NOT RELEVANT

           SENATE ENVIRONMENTAL QUALITY COMMITTEE  :  7-0, 8/30/14 (Pursuant  
            to Senate Rule 29.10)
          AYES:  Hill, Gaines, Fuller, Hancock, Jackson, Leno, Pavley


          SUBJECT  :    Oil spills:  oil spill prevention and response

           SOURCE :     California Resources Agency


           DIGEST  :    This bill states legislative intent that the Board of  
          Equalization (BOE) shall only collect the fee on crude oil or  
          petroleum products upon first delivery to a refinery or marine  
          terminal, as described, and not upon subsequent movement of that  
          same oil or products derived after that first delivery; and  
          provides that the BOE is not prohibited from determining the  
          appropriate collection point at the marine terminal or refinery.

           ANALYSIS  :    

          Existing law:

          1.Requires, under the Lempert-Keene-Seastrand Oil Spill  
            Prevention and 
            Response Act (Act), the administrator for oil spill response,  
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            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.

          2.Requires the administrator to adopt and implement regulations  
            and deems the adoption of certain regulations by the  
            administrator to be an emergency.

          3.Requires an oil spill contingency plan to, at a minimum,  
            include certain requirements, among which is a requirement to  
            describe the strategies for the protection of environmentally  
            sensitive areas.

          4.Requires an oil spill contingency plan for a facility to  
            include provisions detailing locations of environmentally  
            sensitive areas requiring special protection.

          5.Imposes an for oil spill response 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.  The fee is deposited into  
            the Oil Spill Prevention and Administration Fund in the State  
            Treasury and monies in the Fund are available, upon  
            appropriation by the Legislature, for specified purposes.

          6.Requires the oil spill prevention and administration fee to be  
            imposed upon a person owning crude oil at the time that the  
            crude oil is received at a marine terminal by specified modes  
            of delivery from within or outside the state.

          This bill:

          1.Describes the intent of the Legislature to only collect the  
            fee on crude oil or petroleum products upon first delivery to  
            a refinery or marine terminal.

          2.States that nothing in this bill shall prohibit the BOE from  
            determining the appropriate collection point.

          3.Contains an urgency clause and would therefore take effect  
            immediately.








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           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          Unknown with latest amendments.

           SUPPORT  :   (Verified  8/29/14)

          California Resources Agency (source)


          RM:e  8/29/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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