Bill Text: CA SB1192 | 2011-2012 | Regular Session | Amended
Bill Title: Oil spill prevention and administrative fee.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2012-08-27 - Ordered to inactive file on request of Assembly Member Charles Calderon. [SB1192 Detail]
Download: California-2011-SB1192-Amended.html
BILL NUMBER: SB 1192 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 20, 2012
AMENDED IN ASSEMBLY AUGUST 7, 2012
AMENDED IN ASSEMBLY JUNE 25, 2012
AMENDED IN SENATE MAY 29, 2012
AMENDED IN SENATE MARCH 29, 2012
INTRODUCED BY Senator Evans
FEBRUARY 22, 2012
An act to amend , repeal, and add Sections 8670.40,
8670.41, and 8670.48 of, and to add and repeal Section
8670.43 to, the Government Code, relating to oil spills.
LEGISLATIVE COUNSEL'S DIGEST
SB 1192, as amended, Evans. Oil spill prevention and
administrative fee.
Existing law imposes an oil spill prevention and administration
fee in an amount determined by the administrator to implement oil
spill prevention activities, but not to exceed, until January 1,
2015, $0.065 per barrel of crude oil or petroleum products, on
persons owning crude oil or petroleum products at a marine terminal.
The fee is deposited into the Oil Spill Prevention and Administration
Fund in the State Treasury. Upon appropriation by the Legislature,
moneys in the fund are available for specified purposes, including to
cover the costs incurred by the Oiled Wildlife Care Network for
training and field collection, and search and rescue activities.
This bill would extend the authority to use money in the
fund to pay for other costs incurred by the Oiled Wildlife Care
Network, including costs of training and field collection, and search
and rescue activities, and would , until January 1,
2015, increase the maximum annual assessment from $0.065 to
$0.068 per barrel of crude oil or petroleum products. The bill would
subsequently decrease the annual assessment, beginning January 1,
2015, to a maximum of $0.053 $0.050 per
barrel of crude oil or petroleum products.
Existing law permits the administrator to charge a nontank vessel
owner or operator a reasonable fee, to be collected with each
application to obtain a certificate of financial responsibility, in
an amount that is based upon the administrator's costs in
implementing oil spill prevention relating to nontank vessels.
This bill would , until January 1, 2015, require the
fee to be at least $3,500 per nontank vessel but would give the
administrator discretion to reduce the fee for nontank vessels that
pose a reduced risk of pollution.
Existing law requires the administrator to submit for each fiscal
year, as a part of the Governor's Budget, a proposed appropriation
from interest earned on moneys deposited into the Oil Spill Response
Trust Fund, in an amount not to exceed $2,000,000, for the purposes
of equipping, operating, and maintaining the network of oiled
wildlife rescue and rehabilitation stations, proactive oiled wildlife
search and collection rescue efforts, and supporting technology
development and research related to oiled wildlife care. Existing law
requires that any remaining interest earned be deposited into the
Oil Spill Prevention and Administration Fund.
This bill would , until January 1, 2015, transfer 3
mills of the per barrel of crude oil or petroleum products fee
collected, and $250 of the per nontank vessel fee collected, to fund
specified activities the Oiled Wildlife Care Network. The bill would
also allow another additional amount, not to exceed the difference
between the interest earned and $2,000,000, to be included in the
proposed appropriation from funds deposited into the Oil Spill
Response Trust Fund if this proposed appropriation exceeds the
interest earned on the funds deposited into the Oil Spill Response
Trust Fund available for the fiscal year for which the appropriation
is proposed.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 8670.40 of the Government Code is amended to
read:
8670.40. (a) The State Board of Equalization shall collect a fee
in an amount determined by the administrator to be sufficient to
carry out the purposes set forth in subdivision (e), and a reasonable
reserve for contingencies. The annual assessment shall not exceed
six and eight-tenths cents ($0.068) per barrel of crude oil or
petroleum products. Beginning January 1, 2015, the annual
assessment shall not exceed five and three-tenths cents ($0.053) per
barrel of crude oil or petroleum products.
(b) (1) The oil spill prevention and administration fee shall be
imposed upon a person owning crude oil at the time that crude oil is
received at a marine terminal from within or outside the state, and
upon a person who owns petroleum products at the time that those
petroleum products are received at a marine terminal from outside
this state. The fee shall be collected by the marine terminal
operator from the owner of the crude oil or petroleum products based
on each barrel of crude oil or petroleum products so received by
means of a vessel operating in, through, or across the marine waters
of the state. In addition, an operator of a pipeline shall pay the
oil spill prevention and administration fee for each barrel of crude
oil originating from a production facility in marine waters and
transported in the state by means of a pipeline operating across,
under, or through the marine waters of the state. The fees shall be
remitted to the board by the terminal or pipeline operator on the
25th day of the month based upon the number of barrels of crude oil
or petroleum products received at a marine terminal or transported by
pipeline during the preceding month. A fee shall not be imposed
pursuant to this section with respect to crude oil or petroleum
products if the person who would be liable for that fee, or
responsible for its collection, establishes that the fee has been
collected by a terminal operator registered under this chapter or
paid to the board with respect to the crude oil or petroleum product.
(2) An owner of crude oil or petroleum products is liable for the
fee until it has been paid to the board, except that payment to a
marine terminal operator registered under this chapter is sufficient
to relieve the owner from further liability for the fee.
(3) On or before January 20, the administrator shall annually
prepare a plan that projects revenues and expenses over three fiscal
years, including the current year. Based on the plan, the
administrator shall set the fee so that projected revenues, including
any interest, are equivalent to expenses as reflected in the current
Budget Act and in the proposed budget submitted by the Governor. In
setting the fee, the administrator may allow for a surplus if the
administrator finds that revenues will be exhausted during the period
covered by the plan or that the surplus is necessary to cover
possible contingencies. The administrator shall notify the board of
the adjusted fee rate, which shall be rounded to no more than four
decimal places, to be effective the first day of the month beginning
not less than 30 days from the date of the notification.
(c) The moneys collected pursuant to subdivision (a) shall be
deposited into the fund.
(d) The board shall collect the fee and adopt regulations for
implementing the fee collection program.
(e) The fee described in this section shall be collected solely
for all of the following purposes:
(1) To implement oil spill prevention programs through rules,
regulations, leasing policies, guidelines, and inspections and to
implement research into prevention and control technology.
(2) To carry out studies that may lead to improved oil spill
prevention and response.
(3) To finance environmental and economic studies relating to the
effects of oil spills.
(4) To implement, install, and maintain emergency programs,
equipment, and facilities to respond to, contain, and clean up oil
spills and to ensure that those operations will be carried out as
intended.
(5) To respond to an imminent threat of a spill in accordance with
the provisions of Section 8670.62 pertaining to threatened
discharges. The cumulative amount of an expenditure for this purpose
shall not exceed the amount of one hundred thousand dollars
($100,000) in a fiscal year unless the administrator receives the
approval of the Director of Finance and notification is given to the
Joint Legislative Budget Committee. Commencing with the 1993-94
fiscal year, and each fiscal year thereafter, it is the intent of the
Legislature that the annual Budget Act contain an appropriation of
one hundred thousand dollars ($100,000) from the fund for the purpose
of allowing the administrator to respond to threatened oil spills.
(6) To reimburse the board for costs incurred to implement this
chapter and to carry out Part 24 (commencing with Section 46001) of
Division 2 of the Revenue and Taxation Code.
(7) To cover annual costs incurred by the Oiled Wildlife Care
Network established by Section 8670.37.5, including costs of training
and field collection, and search and rescue activities, pursuant to
subdivision (g) of Section 8670.37.5.
(f) The moneys deposited in the fund shall not be used for
responding to an oil spill.
(g) The moneys deposited in the fund shall not be used to provide
a loan to any other fund.
(h) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
SEC. 2. Section 8670.40 is added to the
Government Code , to read:
8670.40. (a) The State Board of Equalization shall collect a fee
in an amount determined by the administrator to be sufficient to
carry out the purposes set forth in subdivision (e), and a reasonable
reserve for contingencies. The annual assessment shall not exceed
five cents ($0.05) per barrel of crude oil or petroleum products.
(b) (1) The oil spill prevention and administration fee shall be
imposed upon a person owning crude oil at the time that crude oil is
received at a marine terminal from within or outside the state, and
upon a person who owns petroleum products at the time that those
petroleum products are received at a marine terminal from outside
this state. The fee shall be collected by the marine terminal
operator from the owner of the crude oil or petroleum products based
on each barrel of crude oil or petroleum products so received by
means of a vessel operating in, through, or across the marine waters
of the state. In addition, an operator of a pipeline shall pay the
oil spill prevention and administration fee for each barrel of crude
oil originating from a production facility in marine waters and
transported in the state by means of a pipeline operating across,
under, or through the marine waters of the state. The fees shall be
remitted to the board by the terminal or pipeline operator on the
25th day of the month based upon the number of barrels of crude oil
or petroleum products received at a marine terminal or transported by
pipeline during the preceding month. A fee shall not be imposed
pursuant to this section with respect to crude oil or petroleum
products if the person who would be liable for that fee, or
responsible for its collection, establishes that the fee has been
collected by a terminal operator registered under this chapter or
paid to the board with respect to the crude oil or petroleum product.
(2) An owner of crude oil or petroleum products is liable for the
fee until it has been paid to the board, except that payment to a
marine terminal operator registered under this chapter is sufficient
to relieve the owner from further liability for the fee.
(3) On or before January 20, the administrator shall annually
prepare a plan that projects revenues and expenses over three fiscal
years, including the current year. Based on the plan, the
administrator shall set the fee so that projected revenues, including
any interest, are equivalent to expenses as reflected in the current
Budget Act and in the proposed budget submitted by the Governor. In
setting the fee, the administrator may allow for a surplus if the
administrator finds that revenues will be exhausted during the period
covered by the plan or that the surplus is necessary to cover
possible contingencies. The administrator shall notify the board of
the adjusted fee rate, which shall be rounded to no more than four
decimal places, to be effective the first day of the month beginning
not less than 30 days from the date of the notification.
(c) The moneys collected pursuant to subdivision (a) shall be
deposited into the fund.
(d) The board shall collect the fee and adopt regulations for
implementing the fee collection program.
(e) The fee described in this section shall be collected solely
for all of the following purposes:
(1) To implement oil spill prevention programs through rules,
regulations, leasing policies, guidelines, and inspections and to
implement research into prevention and control technology.
(2) To carry out studies that may lead to improved oil spill
prevention and response.
(3) To finance environmental and economic studies relating to the
effects of oil spills.
(4) To implement, install, and maintain emergency programs,
equipment, and facilities to respond to, contain, and clean up oil
spills and to ensure that those operations will be carried out as
intended.
(5) To respond to an imminent threat of a spill in accordance with
the provisions of Section 8670.62 pertaining to threatened
discharges. The cumulative amount of an expenditure for this purpose
shall not exceed the amount of one hundred thousand dollars
($100,000) in a fiscal year unless the administrator receives the
approval of the Director of Finance and notification is given to the
Joint Legislative Budget Committee. Commencing with the 1993-94
fiscal year, and each fiscal year thereafter, it is the intent of the
Legislature that the annual Budget Act contain an appropriation of
one hundred thousand dollars ($100,000) from the fund for the purpose
of allowing the administrator to respond to threatened oil spills.
(6) To reimburse the board for costs incurred to implement this
chapter and to carry out Part 24 (commencing with Section 46001) of
Division 2 of the Revenue and Taxation Code.
(7) To cover costs incurred by the Oiled Wildlife Care Network
established by Section 8670.37.5 for training and field collection,
and search and rescue activities, pursuant to subdivision (g) of
Section 8670.37.5.
(f) The moneys deposited in the fund shall not be used for
responding to an oil spill.
(g) The moneys deposited in the fund shall not be used to provide
a loan to any other fund.
(h) This section shall become operative on January 1, 2015.
SEC. 2. SEC. 3. Section 8670.41 of
the Government Code is amended to read:
8670.41. (a) The administrator shall charge a nontank vessel
owner or operator a reasonable fee, to be collected with each
application to obtain a certificate of financial responsibility, in
an amount that is based upon the administrator's costs in
implementing this chapter relating to nontank vessels and shall be at
least three thousand five hundred dollars ($3,500) per nontank
vessel.
(b) Notwithstanding subdivision (a), the administrator may charge
a reduced fee under this section for nontank vessels determined by
the administrator to pose a reduced risk of pollution, including, but
not limited to, vessels used for research or training and vessels
that are moored permanently or rarely move.
(c) The administrator shall deposit all revenue derived from the
fees imposed under this section in the Oil Spill Prevention and
Administration Fund established in the State Treasury under Section
8670.38.
(d) Revenue derived from the fees imposed under this section may
be spent for the purposes listed in subdivision (e) of Section
8670.40, and may not be used for responding to an oil spill.
(e) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
SEC. 4. Section 8670.41 is added to the
Government Code , to read:
8670.41. (a) The administrator shall charge a nontank vessel
owner or operator a reasonable fee, to be collected with each
application to obtain a certificate of financial responsibility, in
an amount that is based upon the administrator's costs in
implementing this chapter relating to nontank vessels.
(b) The administrator may charge a reduced fee under this section
for nontank vessels determined by the administrator to pose a reduced
risk of pollution, including, but not limited to, vessels used for
research or training and vessels that are moored permanently or
rarely move.
(c) The administrator shall deposit all revenue derived from the
fees imposed under this section in the Oil Spill Prevention and
Administration Fund established in the State Treasury under Section
8670.38.
(d) Revenue derived from the fees imposed under this section may
be spent for the purposes listed in subdivision (e) of Section
8670.40, and may not be used for responding to an oil spill.
(e) This section shall become operative on January 1, 2015.
SEC. 3. SEC. 5. Section 8670.43 is
added to the Government Code, to read:
8670.43. (a) Three mills ($0.003) of the
per barrel of crude oil or petroleum products fee collected pursuant
to subdivision (a) of Section 8670.40 and two hundred fifty dollars
($250) of the per nontank vessel fee collected pursuant to Section
8670.43 8670.41 shall be transferred
from the Oil Spill Prevention and Administration Fund to the Oil
Spill Response Trust Fund and, upon appropriation by the Legislature,
used for funding activities covering the
annual costs of the Oiled Wildlife Care Network described in
subdivision (g) of Section 8670.37.5
paragraph (7) of subdivision (e) of Section 8670.40 .
(b) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
SEC. 4. SEC. 6. Section 8670.48 of
the Government Code is amended to read:
8670.48. (a) (1) A uniform oil spill response fee in an amount
not exceeding twenty-five cents ($0.25) for each barrel of petroleum
products, as set by the administrator pursuant to subdivision (f),
shall be imposed upon a person who owns petroleum products at the
time the petroleum products are received at a marine terminal within
this state by means of a vessel from a point of origin outside this
state. The fee shall be remitted to the State Board of Equalization
by the terminal operator on the 25th day of each month based upon the
number of barrels of petroleum products received during the
preceding month.
(2) An owner of petroleum products is liable for the fee until it
has been paid to the state, except that payment to a marine terminal
operator registered under this chapter is sufficient to relieve the
owner from further liability for the fee.
(b) An operator of a pipeline shall also pay a uniform oil spill
response fee in an amount not exceeding twenty-five cents ($0.25) for
each barrel of petroleum products, as set by the administrator
pursuant to subdivision (f), transported into the state by means of a
pipeline operating across, under, or through the marine waters of
the state. The fee shall be paid on the 25th day of each month based
upon the number of barrels of petroleum products so transported into
the state during the preceding month.
(c) (1) An operator of a refinery shall pay a uniform oil spill
response fee in an amount not exceeding twenty-five cents ($0.25) for
each barrel of crude oil, as set by the administrator pursuant to
subdivision (f), received at a refinery within the state. The fee
shall be paid on the 25th day of each month based upon the number of
barrels of crude oil so received during the preceding month.
(2) The fee shall not be imposed by a refiner, or a person or
entity acting as an agent for a refiner, on crude oil produced by an
independent crude oil producer as defined in paragraph (3). The board
shall not identify a company as exempt from the fee requirements of
this section if that company was reorganized, sold, or otherwise
modified with the intent of circumventing the requirements of this
section.
(3) For purposes of this chapter, "independent crude oil producer"
means a person or entity producing crude oil within this state who
does not refine crude oil into a product, and who does not possess or
own a retail gasoline marketing facility.
(d) A marine terminal operator shall pay a uniform oil spill
response fee in an amount not exceeding twenty-five cents ($0.25), in
accordance with subdivision (g), for each barrel of crude oil, as
set by the administrator pursuant to subdivision (f), that is
transported from within this state by means of a marine vessel to a
destination outside this state.
(e) An operator of a pipeline shall pay a uniform oil spill
response fee in an amount not exceeding twenty-five cents ($0.25), in
accordance with subdivision (g), for each barrel of crude oil, as
set by the administrator pursuant to subdivision (f), transported out
of the state by pipeline.
(f) (1) The fees required pursuant to this section shall be
collected during any period for which the administrator determines
that collection is necessary for any of the following reasons:
(A) The amount in the fund is less than or equal to 95 percent of
the designated amount specified in subdivision (a) of Section 46012
of the Revenue and Taxation Code.
(B) Additional money is required to pay for the purposes specified
in subdivision (k).
(C) The revenue is necessary to repay a draw on a financial
security obtained by the Treasurer pursuant to subdivision (o) or
borrowing by the Treasurer pursuant to Article 7.5 (commencing with
Section 8670.53.1) including any principal, interest, premium, fees,
charges, or costs of any kind incurred in connection with those
borrowings or financial security.
(2) The administrator, in consultation with the State Board of
Equalization, and with the approval of the Treasurer, may direct the
State Board of Equalization to cease collecting the fee when the
administrator determines that further collection of the fee is not
necessary for the purposes specified in paragraph (1).
(3) The administrator, in consultation with the State Board of
Equalization, shall set the amount of the oil spill response fees.
The oil spill response fees shall be imposed on all feepayers in the
same amount. The administrator shall not set the amount of the fee at
less than twenty-five cents ($0.25) for each barrel of petroleum
products or crude oil, unless the administrator finds that the
assessment of a lesser fee will cause the fund to reach the
designated amount specified in subdivision (a) of Section 46012 of
the Revenue and Taxation Code within four months. The fee shall not
be less than twenty-five cents ($0.25) for each barrel of petroleum
products or crude oil if the administrator has drawn upon the
financial security obtained by the Treasurer pursuant to subdivision
(o) or if the Treasurer has borrowed money pursuant to Article 7.5
(commencing with Section 8670.53.1) and principal, interest, premium,
fees, charges, or costs of any kind incurred in connection with
those borrowings remain outstanding or unpaid, unless the Treasurer
has certified to the administrator that the money in the fund is not
necessary for the purposes specified in paragraph (1).
(g) The fees imposed by subdivisions (d) and (e) shall be imposed
in any calendar year beginning the month following the month when the
total cumulative year-to-date barrels of crude oil transported
outside the state by all feepayers by means of vessel or pipeline
exceed 6 percent by volume of the total barrels of crude oil and
petroleum products subject to oil spill response fees under
subdivisions (a), (b), and (c) for the prior calendar year.
(h) For purposes of this chapter, "designated amount" means the
amounts specified in Section 46012 of the Revenue and Taxation Code.
(i) The administrator, in consultation with the State Board of
Equalization and with the approval of the Treasurer, shall authorize
refunds of any money collected that is not necessary for the purposes
specified in paragraph (1) of subdivision (f). The State Board of
Equalization, as directed by the administrator, and in accordance
with Section 46653 of the Revenue and Taxation Code, shall refund the
excess amount of fees collected to each feepayer who paid the fee to
the state, in proportion to the amount that each feepayer paid into
the fund during the preceding 12 monthly reporting periods in which
there was a fee due, including the month in which the fund exceeded
the specified amount. If the total amount of money in the fund
exceeds the amount specified in this subdivision by 10 percent or
less, refunds need not be ordered by the administrator. This section
does not require the refund of excess fees as provided in this
subdivision more frequently than once each year.
(j) The State Board of Equalization shall collect the fee and
adopt regulations implementing the fee collection program. All fees
collected pursuant to this section shall be deposited in the Oil
Spill Response Trust Fund.
(k) The fee described in this section shall be collected solely
for any of the following purposes:
(1) To provide funds to cover promptly the costs of response,
containment, and cleanup of oil spills into marine waters, including
damage assessment costs, and wildlife rehabilitation as provided in
Section 8670.61.5.
(2) To cover response and cleanup costs and other damages suffered
by the state or other persons or entities from oil spills into
marine waters, which cannot otherwise be compensated by responsible
parties or the federal government.
(3) To pay claims for damages pursuant to Section 8670.51.
(4) To pay claims for damages, except for damages described in
paragraph (7) of subdivision (h) of Section 8670.56.5, pursuant to
Section 8670.51.1.
(5) To pay for the cost of obtaining financial security in the
amount specified in subdivision (b) of Section 46012 of the Revenue
and Taxation Code, as authorized by subdivision (o).
(6) To pay indemnity and related costs and expenses as authorized
by Section 8670.56.6.
(7) To pay principal, interest, premium, if any, and fees,
charges, and costs of any kind incurred in connection with moneys
drawn by the administrator on the financial security obtained by the
Treasurer pursuant to subdivision (o) or borrowed by the Treasurer
pursuant to Article 7.5 (commencing with Section 8670.53.1).
(8) To pay for the costs of rescue, medical treatment,
rehabilitation, and disposition of oiled wildlife, as incurred by the
network of oiled wildlife rescue and rehabilitation stations created
pursuant to Section 8670.37.5.
( l ) (1) The interest that the state earns on the
funds deposited into the Oil Spill Response Trust Fund shall be
deposited in the fund and shall be used to maintain the fund at the
designated amount specified in subdivision (a) of Section 46012 of
the Revenue and Taxation Code. Interest earned until July 1, 1998, on
funds deposited pursuant to subdivision (a) of Section 46012 of the
Revenue and Taxation Code, as determined jointly by the Controller
and the Director of Finance, shall be available upon appropriation by
the Legislature in the Budget Act to establish, equip, operate, and
maintain the network of rescue and rehabilitation stations for oiled
wildlife as described in Section 8670.37.5 and to support technology
development and research related to oiled wildlife care. Interest
earned on the financial security portion of the fund, required to be
accessible pursuant to subdivision (b) of Section 46012 of the
Revenue and Taxation Code shall not be available for that purpose. If
the amount in the fund exceeds that designated amount, the interest
not needed to equip, operate, and maintain the network of rescue and
rehabilitation stations, or for appropriate technology development
and research regarding oiled wildlife care, shall be deposited into
the Oil Spill Prevention and Administration Fund, and shall be
available for the purposes authorized by Article 6 (commencing with
Section 8670.38).
(2) (A) (i) For each fiscal year, consistent with this article,
the administrator shall submit, as a proposed appropriation in the
Governor's Budget, an amount up to two million dollars ($2,000,000)
of the Oil Spill Response Trust Fund for the purpose of equipping,
operating, and maintaining the network of oiled wildlife rescue and
rehabilitation stations and proactive oiled wildlife search and
collection rescue efforts established pursuant to Section 8670.37.5
and for support of technology development and research related to
oiled wildlife care.
(ii) The proposed appropriation submitted pursuant to this
paragraph shall be made up of the interest earned on the funds
deposited into the Oil Spill Response Trust Fund. If there is any
remaining interest earned in excess of the amount appropriated, such
funds shall be deposited into the Oil Spill Prevention and
Administration Fund pursuant to paragraph (1).
(iii) If the proposed appropriation submitted pursuant to this
subparagraph exceeds the interest earned on the funds deposited into
the Oil Spill Response Trust Fund available for the fiscal year for
which the appropriation is proposed, then an additional amount not to
exceed the difference between the interest earned and two million
dollars ($2,000,000) may be included in the proposed appropriation
from funds deposited into the Oil Spill Response Trust Fund
specifically for this purpose to the extent that such funds are
transferred in Section 8670.43.
(B) The administrator shall report to the Legislature not later
than June 30, 2002, on the progress and effectiveness of the network
of oiled wildlife rescue and rehabilitation stations established
pursuant to Section 8670.37.5, and the adequacy of the Oil Spill
Response Trust Fund to meet the purposes for which it was
established.
(C) At the administrator's request, the funds made available
pursuant to this paragraph may be directly appropriated to a suitable
program for wildlife health and rehabilitation within a school of
veterinary medicine within this state, provided that an agreement
exists, consistent with this chapter, between the administrator and
an appropriate representative of the program for carrying out that
purpose. The administrator shall attempt to have an agreement in
place at all times. The agreement shall ensure that the training of,
and the care provided by, the program staff are at levels that are
consistent with those standards generally accepted within the
veterinary profession.
(D) The funds made available pursuant to this paragraph shall not
be considered an offset to any other state funds appropriated to the
program, the program's associated school of veterinary medicine, or
the program's associated college or university, and the funds shall
not be used for any other purpose. If an offset does occur or the
funds are used for an unintended purpose, expenditure of any
appropriation of funds pursuant to this paragraph may be terminated
by the administrator and the administrator may request a
reappropriation to accomplish the intended purpose. The administrator
shall annually review and approve the proposed uses of any funds
made available pursuant to this paragraph.
(m) The Legislature finds and declares that effective response to
oil spills requires that the state have available sufficient funds in
a response fund. The Legislature further finds and declares that
maintenance of that fund is of utmost importance to the state and
that the money in the fund shall be used solely for the purposes
specified in subdivision (k).
(n) It is the intent of the Legislature, in enacting this section,
that the fee shall not be imposed by a refiner, or a person or
entity acting as an agent for a refiner, on crude oil produced by an
independent crude oil producer.
(o) The Treasurer shall obtain financial security, in the
designated amount specified in subdivision (b) of Section 46012 of
the Revenue and Taxation Code, in a form which, in the event of an
oil spill, may be drawn upon immediately by the administrator upon
making the determinations required by paragraph (2) of subdivision
(a) of Section 8670.49. The financial security may be obtained in any
of the forms described in subdivision (b) of Section 8670.53.3, as
determined by the Treasurer.
(p) This section does not limit the authority of the administrator
to raise oil spill response fees pursuant to Section 8670.48.5.
(q) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
SEC. 7. Section 8670.48 is added to the
Government Code , to read:
8670.48. (a) (1) A uniform oil spill response fee in an amount
not exceeding twenty-five cents ($0.25) for each barrel of petroleum
products, as set by the administrator pursuant to subdivision (f),
shall be imposed upon a person who owns petroleum products at the
time the petroleum products are received at a marine terminal within
this state by means of a vessel from a point of origin outside this
state. The fee shall be remitted to the State Board of Equalization
by the terminal operator on the 25th day of each month based upon the
number of barrels of petroleum products received during the
preceding month.
(2) An owner of petroleum products is liable for the fee until it
has been paid to the state, except that payment to a marine terminal
operator registered under this chapter is sufficient to relieve the
owner from further liability for the fee.
(b) An operator of a pipeline shall also pay a uniform oil spill
response fee in an amount not exceeding twenty-five cents ($0.25) for
each barrel of petroleum products, as set by the administrator
pursuant to subdivision (f), transported into the state by means of a
pipeline operating across, under, or through the marine waters of
the state. The fee shall be paid on the 25th day of each month based
upon the number of barrels of petroleum products so transported into
the state during the preceding month.
(c) (1) An operator of a refinery shall pay a uniform oil spill
response fee in an amount not exceeding twenty-five cents ($0.25) for
each barrel of crude oil, as set by the administrator pursuant to
subdivision (f), received at a refinery within the state. The fee
shall be paid on the 25th day of each month based upon the number of
barrels of crude oil so received during the preceding month.
(2) The fee shall not be imposed by a refiner, or a person or
entity acting as an agent for a refiner, on crude oil produced by an
independent crude oil producer as defined in paragraph (3). The board
shall not identify a company as exempt from the fee requirements of
this section if that company was reorganized, sold, or otherwise
modified with the intent of circumventing the requirements of this
section.
(3) For purposes of this chapter, "independent crude oil producer"
means a person or entity producing crude oil within this state who
does not refine crude oil into a product, and who does not possess or
own a retail gasoline marketing facility.
(d) A marine terminal operator shall pay a uniform oil spill
response fee in an amount not exceeding twenty-five cents ($0.25), in
accordance with subdivision (g), for each barrel of crude oil, as
set by the administrator pursuant to subdivision (f), that is
transported from within this state by means of a marine vessel to a
destination outside this state.
(e) An operator of a pipeline shall pay a uniform oil spill
response fee in an amount not exceeding twenty-five cents ($0.25), in
accordance with subdivision (g), for each barrel of crude oil, as
set by the administrator pursuant to subdivision (f), transported out
of the state by pipeline.
(f) (1) The fees required pursuant to this section shall be
collected during any period for which the administrator determines
that collection is necessary for any of the following reasons:
(A) The amount in the fund is less than or equal to 95 percent of
the designated amount specified in subdivision (a) of Section 46012
of the Revenue and Taxation Code.
(B) Additional money is required to pay for the purposes specified
in subdivision (k).
(C) The revenue is necessary to repay a draw on a financial
security obtained by the Treasurer pursuant to subdivision (o) or
borrowing by the Treasurer pursuant to Article 7.5 (commencing with
Section 8670.53.1) including any principal, interest, premium, fees,
charges, or costs of any kind incurred in connection with those
borrowings or financial security.
(2) The administrator, in consultation with the State Board of
Equalization, and with the approval of the Treasurer, may direct the
State Board of Equalization to cease collecting the fee when the
administrator determines that further collection of the fee is not
necessary for the purposes specified in paragraph (1).
(3) The administrator, in consultation with the State Board of
Equalization, shall set the amount of the oil spill response fees.
The oil spill response fees shall be imposed on all feepayers in the
same amount. The administrator shall not set the amount of the fee at
less than twenty-five cents ($0.25) for each barrel of petroleum
products or crude oil, unless the administrator finds that the
assessment of a lesser fee will cause the fund to reach the
designated amount specified in subdivision (a) of Section 46012 of
the Revenue and Taxation Code within four months. The fee shall not
be less than twenty-five cents ($0.25) for each barrel of petroleum
products or crude oil if the administrator has drawn upon the
financial security obtained by the Treasurer pursuant to subdivision
(o) or if the Treasurer has borrowed money pursuant to Article 7.5
(commencing with Section 8670.53.1) and principal, interest, premium,
fees, charges, or costs of any kind incurred in connection with
those borrowings remain outstanding or unpaid, unless the Treasurer
has certified to the administrator that the money in the fund is not
necessary for the purposes specified in paragraph (1).
(g) The fees imposed by subdivisions (d) and (e) shall be imposed
in any calendar year beginning the month following the month when the
total cumulative year-to-date barrels of crude oil transported
outside the state by all feepayers by means of vessel or pipeline
exceed 6 percent by volume of the total barrels of crude oil and
petroleum products subject to oil spill response fees under
subdivisions (a), (b), and (c) for the prior calendar year.
(h) For purposes of this chapter, "designated amount" means the
amounts specified in Section 46012 of the Revenue and Taxation Code.
(i) The administrator, in consultation with the State Board of
Equalization and with the approval of the Treasurer, shall authorize
refunds of any money collected that is not necessary for the purposes
specified in paragraph (1) of subdivision (f). The State Board of
Equalization, as directed by the administrator, and in accordance
with Section 46653 of the Revenue and Taxation Code, shall refund the
excess amount of fees collected to each feepayer who paid the fee to
the state, in proportion to the amount that each feepayer paid into
the fund during the preceding 12 monthly reporting periods in which
there was a fee due, including the month in which the fund exceeded
the specified amount. If the total amount of money in the fund
exceeds the amount specified in this subdivision by 10 percent or
less, refunds need not be ordered by the administrator. This section
does not require the refund of excess fees as provided in this
subdivision more frequently than once each year.
(j) The State Board of Equalization shall collect the fee and
adopt regulations implementing the fee collection program. All fees
collected pursuant to this section shall be deposited in the Oil
Spill Response Trust Fund.
(k) The fee described in this section shall be collected solely
for any of the following purposes:
(1) To provide funds to cover promptly the costs of response,
containment, and cleanup of oil spills into marine waters, including
damage assessment costs, and wildlife rehabilitation as provided in
Section 8670.61.5.
(2) To cover response and cleanup costs and other damages suffered
by the state or other persons or entities from oil spills into
marine waters, which cannot otherwise be compensated by responsible
parties or the federal government.
(3) To pay claims for damages pursuant to Section 8670.51.
(4) To pay claims for damages, except for damages described in
paragraph (7) of subdivision (h) of Section 8670.56.5, pursuant to
Section 8670.51.1.
(5) To pay for the cost of obtaining financial security in the
amount specified in subdivision (b) of Section 46012 of the Revenue
and Taxation Code, as authorized by subdivision (o).
(6) To pay indemnity and related costs and expenses as authorized
by Section 8670.56.6.
(7) To pay principal, interest, premium, if any, and fees,
charges, and costs of any kind incurred in connection with moneys
drawn by the administrator on the financial security obtained by the
Treasurer pursuant to subdivision (o) or borrowed by the Treasurer
pursuant to Article 7.5 (commencing with Section 8670.53.1).
(8) To pay for the costs of rescue, medical treatment,
rehabilitation, and disposition of oiled wildlife, as incurred by the
network of oiled wildlife rescue and rehabilitation stations created
pursuant to Section 8670.37.5.
(l) (1) The interest that the state earns on the funds deposited
into the Oil Spill Response Trust Fund shall be deposited in the fund
and shall be used to maintain the fund at the designated amount
specified in subdivision (a) of Section 46012 of the Revenue and
Taxation Code. Interest earned until July 1, 1998, on funds deposited
pursuant to subdivision (a) of Section 46012 of the Revenue and
Taxation Code, as determined jointly by the Controller and the
Director of Finance, shall be available upon appropriation by the
Legislature in the Budget Act to establish, equip, operate, and
maintain the network of rescue and rehabilitation stations for oiled
wildlife as described in Section 8670.37.5 and to support technology
development and research related to oiled wildlife care. Interest
earned on the financial security portion of the fund, required to be
accessible pursuant to subdivision (b) of Section 46012 of the
Revenue and Taxation Code shall not be available for that purpose. If
the amount in the fund exceeds that designated amount, the interest
not needed to equip, operate, and maintain the network of rescue and
rehabilitation stations, or for appropriate technology development
and research regarding oiled wildlife care, shall be deposited into
the Oil Spill Prevention and Administration Fund, and shall be
available for the purposes authorized by Article 6 (commencing with
Section 8670.38).
(2) (A) For each fiscal year, consistent with this article, the
administrator shall submit, as a proposed appropriation in the
Governor's Budget, an amount up to two million dollars ($2,000,000)
of the interest earned on the funds deposited into the Oil Spill
Response Trust Fund for the purpose of equipping, operating, and
maintaining the network of oiled wildlife rescue and rehabilitation
stations and proactive oiled wildlife search and collection rescue
efforts established pursuant to Section 8670.37.5 and for support of
technology development and research related to oiled wildlife care.
The remaining interest, if any, shall be deposited into the Oil Spill
Prevention and Administration Fund pursuant to paragraph (1).
(B) The administrator shall report to the Legislature not later
than June 30, 2002, on the progress and effectiveness of the network
of oiled wildlife rescue and rehabilitation stations established
pursuant to Section 8670.37.5, and the adequacy of the Oil Spill
Response Trust Fund to meet the purposes for which it was
established.
(C) At the administrator's request, the funds made available
pursuant to this paragraph may be directly appropriated to a suitable
program for wildlife health and rehabilitation within a school of
veterinary medicine within this state, provided that an agreement
exists, consistent with this chapter, between the administrator and
an appropriate representative of the program for carrying out that
purpose. The administrator shall attempt to have an agreement in
place at all times. The agreement shall ensure that the training of,
and the care provided by, the program staff are at levels that are
consistent with those standards generally accepted within the
veterinary profession.
(D) The funds made available pursuant to this paragraph shall not
be considered an offset to any other state funds appropriated to the
program, the program's associated school of veterinary medicine, or
the program's associated college or university, and the funds shall
not be used for any other purpose. If an offset does occur or the
funds are used for an unintended purpose, expenditure of any
appropriation of funds pursuant to this paragraph may be terminated
by the administrator and the administrator may request a
reappropriation to accomplish the intended purpose. The administrator
shall annually review and approve the proposed uses of any funds
made available pursuant to this paragraph.
(m) The Legislature finds and declares that effective response to
oil spills requires that the state have available sufficient funds in
a response fund. The Legislature further finds and declares that
maintenance of that fund is of utmost importance to the state and
that the money in the fund shall be used solely for the purposes
specified in subdivision (k).
(n) It is the intent of the Legislature, in enacting this section,
that the fee shall not be imposed by a refiner, or a person or
entity acting as an agent for a refiner, on crude oil produced by an
independent crude oil producer.
(o) The Treasurer shall obtain financial security, in the
designated amount specified in subdivision (b) of Section 46012 of
the Revenue and Taxation Code, in a form which, in the event of an
oil spill, may be drawn upon immediately by the administrator upon
making the determinations required by paragraph (2) of subdivision
(a) of Section 8670.49. The financial security may be obtained in any
of the forms described in subdivision (b) of Section 8670.53.3, as
determined by the Treasurer.
(p) This section does not limit the authority of the administrator
to raise oil spill response fees pursuant to Section 8670.48.5.
(q) This section shall become operative on January 1, 2015.
SEC. 8. The provisions of this act are severable.
If any provision of this act or its application is held invalid, that
invalidity shall not affect other provisions or applications that
can be given effect without the invalid provision or application.
