Bill Text: CA AB2678 | 2013-2014 | Regular Session | Amended
Bill Title: Oil spills: oil spill prevention and administration fee.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2014-08-30 - In Assembly. Concurrence in Senate amendments pending. [AB2678 Detail]
Download: California-2013-AB2678-Amended.html
BILL NUMBER: AB 2678 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 30, 2014
AMENDED IN SENATE AUGUST 22, 2014
AMENDED IN SENATE JUNE 26, 2014
AMENDED IN ASSEMBLY MAY 7, 2014
INTRODUCED BY Assembly Member Ridley-Thomas
FEBRUARY 21, 2014
An act to amend Sections 8670.7.5, 8670.29, and 8670.40
of, and to repeal and add Section 8670.95 of, Section
8670.40 of the Government Code, relating to oil spill
prevention and response , and declaring the urgency thereof, to
take effect immediately .
LEGISLATIVE COUNSEL'S DIGEST
AB 2678, as amended, Ridley-Thomas. Oil spills: oil spill
prevention and response. administration fee.
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 requires the administrator to adopt and implement
regulations and deems the adoption of certain regulations by the
administrator to be an emergency.
This bill would require the administrator to promulgate specified
regulations by July 1, 2016.
Existing law 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. Existing law requires an oil spill contingency plan
for a facility to include provisions detailing locations of
environmentally sensitive areas requiring special protection.
This bill would revise these requirements to require instead the
identification of environmentally sensitive areas and environmental
sites requiring special protection, and to describe appropriate
protection strategies. This bill would remove the requirement that an
oil spill contingency plan for a facility include provisions for
site security and control, for emergency medical treatment and first
aid, for safety training, and detailing site layout.
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. The fee is
deposited into the Oil Spill Prevention and Administration Fund in
the State Treasury and moneys in the fund are available, upon
appropriation by the Legislature, for specified purposes.
Existing law requires the oil spill prevention and administration fee
to be imposed upon a person owning crude oil or petroleum
products at the time that the crude oil is
or petroleum products are received at a marine terminal
or refinery by specified modes of delivery from within or
outside the state. state, as provided.
This bill would require that fee to be imposed at the
time that the crude oil is received at a refinery instead of at a
marine terminal. This bill would state legislative intent
only to collect that the fee on crude
oil or petroleum products be collected only upon first
delivery to a refinery or marine terminal and not upon subsequent
movement of that same oil or products derived after that first
delivery.
This bill would state legislative intent that the act is a matter
of statewide concern and that the act is to be interpreted and
implemented so as not to conflict with specified federal law or to
prevent trains that meet the requirements of federal law from
entering the state.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: majority 2/3 . 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 , as amended by Section 37 of Chapter 35
of the Statutes of 2014, 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 pay
the reasonable regulatory costs to carry out the purposes set forth
in subdivision (e), and a reasonable reserve for contingencies. The
annual assessment shall not exceed six and one-half cents ($0.065)
per barrel of crude oil or petroleum products. The oil spill
prevention and administration fee shall be based on each barrel of
crude oil or petroleum products, as described in subdivision (b).
It is the intent of the Legislature that the State Board of
Equalization only collect the fee on crude oil or petroleum products
upon first delivery to a refinery or marine terminal as described in
subdivision (b) and not upon subsequent movement of that
same oil or products derived after that first delivery. Nothing in
this section shall prohibit the State Board of Equalization from
determining the appropriate collection point at the marine terminal
or refinery.
(b) (1) The oil spill prevention and administration fee shall be
imposed upon a person owning crude oil at the time that the crude oil
is received at a marine terminal, by any mode of delivery that
passed over, across, under, or through waters of the state, 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, by any mode of delivery that passed over, across,
under, or through waters of the state, from outside this state. The
fee shall be collected by the marine terminal operator from the owner
of the crude oil or petroleum products for each barrel of crude oil
or petroleum products received.
(2) The oil spill prevention and administration fee shall be
imposed upon a person owning crude oil or petroleum products at the
time that the crude oil or petroleum products are received at a
refinery within the state by any mode of delivery that passed over,
across, under, or through waters of the state, whether from within or
outside the state. The refinery shall collect the fee from the owner
of the crude oil or petroleum products for each barrel received.
(3) (A) There is a rebuttable presumption that crude oil or
petroleum products received at a marine terminal or a refinery have
passed over, across, under, or through waters of the state. This
presumption may be overcome by a marine terminal operator, refinery
operator, or owner of the crude oil or petroleum products by showing
that the crude oil or petroleum products did not pass over, across,
under, or through waters of the state. Evidence to rebut the
presumption may include, but shall not be limited to, documentation,
including shipping documents, bills of lading, highway maps, rail
maps, transportation maps, related transportation receipts, or
another medium that shows the crude oil or petroleum products did not
pass over, across, under, or through waters of the state.
(B) Notwithstanding the petition for redetermination and claim for
refund provisions of the Oil Spill Response, Prevention, and
Administration Fees Law (Part 24 (commencing with Section 46001) of
Division 2 of the Revenue and Taxation Code), the State Board of
Equalization shall not do either of the following:
(i) Accept or consider a petition for redetermination of fees
determined pursuant to this section if the petition is founded upon
the grounds that the crude oil or petroleum products did or did not
pass over, across, under, or through waters of the state.
(ii) Accept or consider a claim for a refund of fees paid pursuant
to this section if the claim is founded upon the grounds that the
crude oil or petroleum products did or did not pass over, across,
under, or through waters of the state.
(C) The State Board of Equalization shall forward to the
administrator an appeal of a redetermination or a claim for a refund
of fees that is based on the grounds that the crude oil or petroleum
products did or did not pass over, across, under, or through waters
of the state.
(4) The fees shall be remitted to the State Board of Equalization
by the owner of the crude oil or petroleum products, the refinery
operator, or the marine terminal operator on the 25th day of the
month based upon the number of barrels of crude oil or petroleum
products received at a refinery or marine terminal 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 already been collected by a refinery or
marine terminal operator registered under this chapter or paid to the
State Board of Equalization with respect to the crude oil or
petroleum product.
(5) The oil spill prevention and administration fee shall not be
collected by a marine terminal operator or refinery operator or
imposed on the owner of crude oil or petroleum products if the fee
has been previously collected or paid on the crude oil or petroleum
products at another marine terminal or refinery. It shall be the
obligation of the marine terminal operator, refinery operator, or
owner of crude oil or petroleum products to demonstrate that the fee
has already been paid on the same crude oil or petroleum products.
(6) An owner of crude oil or petroleum products is liable for the
fee until it has been paid to the State Board of Equalization, except
that payment to a refinery operator or marine terminal operator
registered under this chapter is sufficient to relieve the owner from
further liability for the fee.
(7) 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 and inflation, 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 State Board of Equalization 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 State Board of Equalization 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 reimburse the State Board of Equalization for its
reasonable 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.
(6) To fund the Oiled Wildlife Care Network pursuant to Section
8670.40.5.
(f) The moneys deposited in the fund shall not be used for
responding to a spill.
(g) The moneys deposited in the fund shall not be used to provide
a loan to any other fund.
(h) Every person who operates a refinery, a marine terminal in
waters of the state, or a pipeline shall register with the State
Board of Equalization, pursuant to Section 46101 of the Revenue and
Taxation Code.
(i) The amendments to this section enacted in Senate Bill 861 of
the 2013-14 Regular Session shall become operative 90 days after the
effective date of Senate Bill 861 of 2013-14 Regular Session.
SEC. 2. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to clarify the collection of the oil spill prevention and
administration fee as quickly as possible, it is necessary that this
act take effect immediately.
SECTION 1. Section 8670.7.5 of the Government
Code is amended to read:
8670.7.5. (a) The administrator may adopt regulations to
implement this chapter pursuant to the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
3).
(b) (1) An emergency regulation adopted pursuant to amendments
made to this chapter by Senate Bill 861 of the 2013-14 Regular
Session (Chapter 35 of the Statutes of 2014) shall be deemed an
emergency and necessary to avoid serious harm to the public peace,
health, safety, or general welfare for the purposes of Sections
11346.1 and 11349.6, and the administrator is hereby exempt from the
requirement that he or she describe facts showing the need for
immediate action and from review by the Office of Administrative Law.
(2) Notwithstanding Section 11346.1, an emergency regulation
adopted pursuant to paragraph (1) shall remain in effect for 12
months or until readopted by the administrator, whichever is earlier.
(3) By July 1, 2016, the administrator shall promulgate all
regulations to implement changes made by Senate Bill 861 of the
2013-14 Regular Session (Chapter 35 of the Statutes of 2014).
SEC. 2. Section 8670.29 of the Government Code
is amended to read:
8670.29. (a) In accordance with the rules, regulations, and
policies established by the administrator pursuant to Section
8670.28, an owner or operator of a facility, small marine fueling
facility, or mobile transfer unit, or an owner or operator of a tank
vessel, nontank vessel, or vessel carrying oil as secondary cargo,
while operating in the waters of the state or where a spill could
impact waters of the state, shall have an oil spill contingency plan
that has been submitted to, and approved by, the administrator
pursuant to Section 8670.31. An oil spill contingency plan shall
ensure the undertaking of prompt and adequate response and removal
action in case of a spill, shall be consistent with the California
oil spill contingency plan, and shall not conflict with the National
Oil and Hazardous Substances Pollution Contingency Plan (NCP).
(b) An oil spill contingency plan shall, at a minimum, meet all of
the following requirements:
(1) Be a written document, reviewed for feasibility and
executability, and signed by the owner or operator, or his or her
designee.
(2) Provide for the use of an incident command system to be used
during a spill.
(3) Provide procedures for reporting oil spills to local, state,
and federal agencies, and include a list of contacts to call in the
event of a drill, threatened spill, or spill.
(4) Describe the communication plans to be used during a spill, if
different from those used by a recognized incident command system.
(5) Identify environmentally sensitive areas and environmental
sites requiring special protection, and describe appropriate
protection strategies.
(6) Identify at least one rated OSRO for each rating level
established pursuant to Section 8670.30. Each identified rated OSRO
shall be directly responsible by contract, agreement, or other
approved means to provide oil spill response activities pursuant to
the oil spill contingency plan. A rated OSRO may provide oil spill
response activities individually, or in combination with another
rated OSRO, for a particular owner or operator.
(7) Identify a qualified individual.
(8) Provide the name, address, and telephone and facsimile numbers
for an agent for service of process, located within the state and
designated to receive legal documents on behalf of the owner or
operator.
(9) Provide for training and drills on elements of the plan at
least annually, with all elements of the plan subject to a drill at
least once every three years.
(c) An oil spill contingency plan for a vessel shall also include,
but is not limited to, all of the following requirements:
(1) The plan shall be submitted to the administrator at least
seven days prior to the vessel entering waters of the state.
(2) The plan shall provide evidence of compliance with the
International Safety Management Code, established by the
International Maritime Organization, as applicable.
(3) If the oil spill contingency plan is for a tank vessel, the
plan shall include both of the following:
(A) The plan shall specify oil and petroleum cargo capacity.
(B) The plan shall specify the types of oil and petroleum cargo
carried.
(4) If the oil spill contingency plan is for a nontank vessel, the
plan shall include both of the following:
(A) The plan shall specify the type and total amount of fuel
carried.
(B) The plan shall specify the capacity of the largest fuel tank.
(d) An oil spill contingency plan for a facility shall also
include, but is not limited to, provisions for vessels that are in
the operational control of the facility for loading and unloading.
(e) Unless preempted by federal law or regulations, an oil spill
contingency plan for a railroad also shall include, but is not
limited to, all of the following:
(1) A list of the types of train cars that may make up the
consist.
(2) A list of the types of oil and petroleum products that may be
transported.
(3) A map of track routes and facilities.
(4) A list, description, and map of any prestaged spill response
equipment and personnel for deployment of the equipment.
(f) The oil spill contingency plan shall be available to response
personnel and to relevant state and federal agencies for inspection
and review.
(g) The oil spill contingency plan shall be reviewed periodically
and updated as necessary. All updates shall be submitted to the
administrator pursuant to this article.
(h) In addition to the regulations adopted pursuant to Section
8670.28, the administrator shall adopt regulations and guidelines to
implement this section. The regulations and guidelines shall provide
for the best achievable protection of waters and natural resources of
the state. The administrator may establish additional oil spill
contingency plan requirements, including, but not limited to,
requirements based on the different geographic regions of the state.
All regulations and guidelines shall be developed in consultation
with the Oil Spill Technical Advisory Committee.
(i) Notwithstanding subdivision (a) and paragraph (6) of
subdivision (b), a vessel or facility operating where a spill could
impact state waters that are not tidally influenced shall identify a
rated OSRO in the contingency plan no later than January 1, 2016.
SEC. 3. Section 8670.40 of the Government Code,
as amended by Section 37 of Chapter 35 of the Statutes of 2014, 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 pay
the reasonable regulatory costs to carry out the purposes set forth
in subdivision (e), and a reasonable reserve for contingencies. The
annual assessment shall not exceed six and one-half cents ($0.065)
per barrel of crude oil or petroleum products. The oil spill
prevention and administration fee shall be based on each barrel of
crude oil or petroleum products, as described in subdivision (b). It
is the intent of the Legislature that the State Board of Equalization
only collect the fee on crude oil or petroleum products upon first
delivery to a refinery or marine terminal as described in subdivision
(b) and not upon subsequent movement of that same oil or products
derived after that first delivery. Nothing in this section shall
prohibit the State Board of Equalization from determining the
appropriate collection point at the marine terminal or refinery.
(b) (1) The oil spill prevention and administration fee shall be
imposed upon a person who owns petroleum products at the time that
those petroleum products are received at a marine terminal, by any
mode of delivery that passed over, across, under, or through waters
of the state, that originated from outside this state. The fee shall
be collected by the marine terminal operator from the owner of the
petroleum products for each barrel of petroleum products received.
(2) The oil spill prevention and administration fee shall be
imposed upon a person owning crude oil at the time that the crude oil
is received at a refinery, by any mode of delivery that passed over,
across, under, or through waters of the state, that originated 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
refinery, by any mode of delivery that passed over, across, under, or
through waters of the state, that originated from within or outside
this state. The fee shall be collected by the refinery operator from
the owner of the crude oil or petroleum products for each barrel of
crude oil or petroleum products received.
(3) (A) There is a rebuttable presumption that crude oil or
petroleum products received at a marine terminal or a refinery have
passed over, across, under, or through waters of the state. This
presumption may be overcome by a marine terminal operator, refinery
operator, or owner of the crude oil or petroleum products by showing
that the crude oil or petroleum products did not pass over, across,
under, or through waters of the state. Evidence to rebut the
presumption may include, but shall not be limited to, documentation,
including shipping documents, bills of lading, highway maps, rail
maps, transportation maps, related transportation receipts, or
another medium that shows the crude oil or petroleum products did not
pass over, across, under, or through waters of the state.
(B) Notwithstanding the petition for redetermination and claim for
refund provisions of the Oil Spill Response, Prevention, and
Administration Fees Law (Part 24 (commencing with Section 46001) of
Division 2 of the Revenue and Taxation Code), the State Board of
Equalization shall not do either of the following:
(i) Accept or consider a petition for redetermination of fees
determined pursuant to this section if the petition is founded upon
the grounds that the crude oil or petroleum products did or did not
pass over, across, under, or through waters of the state.
(ii) Accept or consider a claim for a refund of fees paid pursuant
to this section if the claim is founded upon the grounds that the
crude oil or petroleum products did or did not pass over, across,
under, or through waters of the state.
(C) The State Board of Equalization shall forward to the
administrator an appeal of a redetermination or a claim for a refund
of fees that is based on the grounds that the crude oil or petroleum
products did or did not pass over, across, under, or through waters
of the state.
(4) The fees shall be remitted to the State Board of Equalization
by the owner of the crude oil or petroleum products, the refinery
operator, or the marine terminal operator on the 25th day of the
month based upon the number of barrels of crude oil or petroleum
products received at a refinery or marine terminal 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 already been collected by a refinery or
marine terminal operator registered under this chapter or paid to the
State Board of Equalization with respect to the crude oil or
petroleum product.
(5) The oil spill prevention and administration fee shall not be
collected by a marine terminal operator or refinery operator or
imposed on the owner of crude oil or petroleum products if the fee
has been previously collected or paid on the crude oil or petroleum
products at another marine terminal or refinery. It shall be the
obligation of the marine terminal operator, refinery operator, or
owner of crude oil or petroleum products to demonstrate that the fee
has already been paid on the same crude oil or petroleum products.
(6) An owner of crude oil or petroleum products is liable for the
fee until it has been paid to the State Board of Equalization, except
that payment to a refinery operator or marine terminal operator
registered under this chapter is sufficient to relieve the owner from
further liability for the fee.
(7) 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 and inflation, 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 State Board of Equalization 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 State Board of Equalization 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 reimburse the State Board of Equalization for its
reasonable 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.
(6) To fund the Oiled Wildlife Care Network pursuant to Section
8670.40.5.
(f) The moneys deposited in the fund shall not be used for
responding to a spill.
(g) The moneys deposited in the fund shall not be used to provide
a loan to any other fund.
(h) Every person who operates a refinery, a marine terminal in
waters of the state, or a pipeline shall register with the State
Board of Equalization, pursuant to Section 46101 of the Revenue and
Taxation Code.
(i) The amendments to this section enacted in Senate Bill 861 of
the 2013-14 Regular Session shall become operative 90 days after the
effective date of Senate Bill 861 of 2013-14 Regular Session.
SEC. 4. Section 8670.95 of the Government Code
is repealed.
SEC. 5. Section 8670.95 is added to the
Government Code, to read:
8670.95. (a) It is the intent of the Legislature that this
chapter is a matter of statewide concern. It is the intent of the
Legislature that this chapter be
interpreted and implemented so as not to conflict with
federal law with respect to the design, construction, integrity
testing, or operation of a vessel or facility. It is the intent of
the Legislature that this chapter be interpreted and implemented so
as not to prevent a train that meets the requirements of federal law
from entering the state contingent upon meeting the requirements of
this chapter.
(b) Each provision of this chapter stands alone and is severable.
If any provision is declared by a court to be unconstitutional,
preempted by federal law, or otherwise invalid, all of the other
provisions of this chapter are intended to, and shall remain, fully
effective and shall be interpreted to exclude the unconstitutional,
preempted, or otherwise invalid provisions. If any sentence, clause,
word, or portion of this chapter is for any reason held to be
unconstitutional, preempted by federal law, or otherwise invalid,
that holding shall not affect the remaining provisions of this
chapter. The Legislature hereby declares that it would have enacted
the particular section and each sentence, clause, word, or provision
thereof despite the fact that one or more sentences, clauses, words,
or provisions of a particular section may be held unconstitutional,
preempted by federal law, or otherwise invalid.
