Laws, Regulations & Annotations
Business Taxes Law Guide – Revision 2011
Oil Spill Response, Prevention, and Administration Fees Law and Government Code
Chapter 7.4. Oil Spill Response and Contingency Planning
Article 6. The Oil Spill Prevention and Administration Fund
8670.40. Oil spill prevention and administration fee. (a) The State Board of Equalization shall collect a fee in an amount determined by the administrator to be sufficient to carry out the purposes set forth in subdivision (e), and a reasonable reserve for contingencies. The annual assessment may not exceed five cents ($0.05) 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.
(c) The moneys collected pursuant to subdivision (a) shall be deposited into the fund.
(d) The board shall collect the fee and adopt regulations for implementing the fee collection program.
(e) The fee described in this section shall be collected solely for all of the following purposes:
(1) To implement oil spill prevention programs through rules, regulations, leasing policies, guidelines, and inspections and to implement research into prevention and control technology.
(2) To carry out studies that may lead to improved oil spill prevention and response.
(3) To finance environmental and economic studies relating to the effects of oil spills.
(4) To reimburse the member agencies of the State Interagency Oil Spill Committee for costs arising from implementation of this chapter, Article 3.5 (commencing with Section 8574.1) of Chapter 7 of this code, and Division 7.8 (commencing with Section 8750) of the Public Resources Code.
(5) To implement, install, and maintain emergency programs, equipment, and facilities to respond to, contain, and clean up oil spills and to ensure that those operations will be carried out as intended.
(6) To respond to an imminent threat of a spill in accordance with the provisions of Section 8670.62 pertaining to threatened discharges. The cumulative amount of an expenditure for this purpose shall not exceed the amount of one hundred thousand dollars ($100,000) in a fiscal year unless the administrator receives the approval of the Director of Finance and notification is given to the Joint Legislative Budget Committee. Commencing with the 1993–94 fiscal year, and each fiscal year thereafter, it is the intent of the Legislature that the annual Budget Act contain an appropriation of one hundred thousand dollars ($100,000) from the fund for the purpose of allowing the administrator to respond to threatened oil spills.
(7) To reimburse the board for costs incurred to implement this chapter and to carry out Part 24 (commencing with Section 46001) of Division 2 of the Revenue and Taxation Code.
(8) To reimburse the costs incurred by the State Lands Commission in implementing the Oil Transfer and Transportation Emission and Risk Reduction Act of 2002 (Division 7.9 (commencing with Section 8780) of the Public Resources Code).
(9) To cover costs incurred by the Oiled Wildlife Care Network established by Section 8670.37.5 for training and field collection, and search and rescue activities, pursuant to subdivision (g) of Section 8670.37.5.
(f) The moneys deposited in the fund shall not be used for responding to an oil spill.
History.—Stats. 1991, Ch. 10, in effect December 13, 1990, imposed the fee upon any owner of crude oil at the time it was received at a marine terminal. The statute expired on July 1, 1991 and the original wording of the section became effective on that date. Stats. 1991, Ch. 300, in effect August 1, 1991, substituted "State Board of Equalization shall collect a" for "administrator shall collect annually" in the first sentence, and substituted "crude oil or petroleum" for "oil" after "per barrel of" in the second sentence of subdivision (a); completely rewrote subdivisions (b)(1) and (2) which previously read: "Every marine terminal operator shall pay the oil spill prevention and administration fee for each barrel of oil delivered through the operator's marine terminal. In addition, every operator of a pipeline shall pay the oil spill prevention and administration fee for each barrel of oil transported into the state by means of pipeline operating across, under, or through the marine waters of this state. The fee for a pipeline shall not be based on the number of times an individual pipeline enters and exits marine waters nor shall the fee be collected when oil is transported within a facility, such as between a tank facility and refinery or electric generating plant. The administrator shall develop regulations governing the fees to be assessed on pipelines. The amount of the fee to be paid by an operator shall be established by the administrator commensurate with the risks and potential sizes of spills from the operator's marine facility."; substituted "board" for "State Board of Equalization" before "shall collect the" in subdivision (d); and added subdivision (e)(6). Stats. 1992, Ch. 1313, in effect September 30, 1992, added subdivision (d)(6) and renumbered former (6) as (7), and replaced all references to "oil spill" with "oilspill". Stats. 1992, Ch. 1314, in effect January 1, 1993, added subdivision (b)(3); substituted "Commencing" for "Beginning" before "with the 1993–94" and substituted "fund" for "Oil Spill Prevention and Administration Fund" after "($100,000) from the" in the last sentence of subdivision (e)(6); replaced all references to "oilspill" with "oil spill". Stats. 2002, Ch. 514 (SB 849), in effect January 1, 2003, substituted "five cents" for "four cents" in subdivision (a), substituted "January 20" for "January 15" in subparagraph (b)(3), changed "which" to "that" in subdivision (e)(2), changed "Director or Finance" to "Director of Finance" in subdivision (e)(6), deleted "the provisions of" in subdivision (e)(7), added subparagraph (e)(8). Stats. 2003, Ch. 62 (SB 600), in effect January 1, 2004, added "7." after "(Division" to subparagraph (e)(8). Stats. 2008, Ch. 565 (AB 2911), in effect January 1, 2009, substituted "a" for "every" twice in the first sentence of paragraph 1 of, deleted "the" after "at the time that" in the first sentence of paragraph (1) of, substituted "an" for "every" after "In addition," in the second sentence of paragraph (1) of, and substituted "A" for "No", added "not" after "fee shall", and deleted "any" after "with respect to" in the fourth sentence of paragraph (1) of subdivision (b); substituted "An" for "Every" before "owner of crude oil" in paragraph (2) of subdivision (b); added "of this code" after "of Chapter 7" in paragraph (5) of, substituted "an" for "any" after "cumulative amount of" and substituted "a" for "any" after "($100,000) in" in paragraph (6) of, and added paragraph (9) to, subdivision (e).