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Oil Spill Response, Prevention, and Administration Fees Law and Government Code

Government Code

Chapter 7.4. Oil Spill Response and Contingency Planning

Oil Spill Response, Prevention, and Administration Fees Law and Government Code

Government Code

Government Code Provisions Relating to the Oil Spill Response and Administration

[Added Stats. 1990, Ch. 1248, effective September 24, 1990.]

Chapter 7.4. Oil Spill Response and Contingency Planning

Article 1. General Provisions

8670.1. Citation of act. This chapter, Article 3.5 (commencing with Section 8574.1) of Chapter 7 of the Government Code, and Division 7.8 (commencing with Section 8750) of the Public Resources Code shall be known, and may be cited as, the Lempert-Keene-Seastrand Oil Spill Prevention and Response Act.

8670.2. Legislative findings and declarations. The Legislature finds and declares as follows:

(a) Each year, billions of gallons of crude oil and petroleum products are transported by vessel or pipeline across and through the marine waters of this state.

(b) Recent accidents in southern California, Alaska, and other parts of the nation have shown that marine transportation of oil can be a significant threat to the environment of sensitive coastal areas.

(c) Existing prevention programs are not able to reduce sufficiently the risk of significant discharge of petroleum into marine waters.

(d) Response and cleanup capabilities and technology are unable to remove consistently the majority of spilled oil when major oil spills occur in marine waters.

(e) California's coastal waters, estuaries, bays, and beaches are treasured environmental and economic resources which the state cannot afford to place at undue risk from an oil spill.

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

(g) Improvements in the design, construction, and operation of tank ships, terminals, and pipelines; improvements in marine safety; maintenance of emergency response stations and personnel; and stronger inspection and enforcement efforts are necessary to reduce the risks of and from a major oil spill.

(h) A major oil spill in marine waters is extremely expensive because of the need to clean up discharged oil, protect sensitive environmental areas, and restore ecosystem damage.

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

(j) California government should improve its response and management of oil spills that occur in marine waters.

(k) Those who transport oil through the marine waters of the state must meet minimum safety standards and demonstrate financial responsibility.

(l) The federal government plays an important role in preventing and responding to petroleum spills and it is in the interests of the state to coordinate with agencies of the federal government, including the Coast Guard, to the greatest degree possible.

(m) California has approximately 1,100 miles of coast, including four marine sanctuaries which occupy 88,767 square miles. The weather, topography, and tidal currents in and around California's coastal ports and waterways make vessel navigation challenging. The state's major ports are among the busiest in the world. Approximately 700 million barrels of oil are consumed annually by California, with over 500 million barrels being transported by vessel. The peculiarities of California's maritime coast require special precautionary measures regarding oil pollution.

History.—Stats. 2001, Ch. 748 (AB 715), added subdivision (m), effective January 1, 2002. Stats. 2002, Ch. 573 (SB 2090), substituted "tank ships" for "tankers" in subdivision (g), effective January 1, 2003.

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Text of section operative through December 31, 2011

8670.3. Definitions. Unless the context requires otherwise, the following definitions shall govern the construction of this chapter:

(a) "Administrator" means the administrator for oil spill response appointed by the Governor pursuant to Section 8670.4.

(b) (1) "Best achievable protection" means the highest level of protection that can be achieved through both the use of the best achievable technology and those manpower levels, training procedures, and operational methods that provide the greatest degree of protection achievable. The administrator's determination of which measures provide the best achievable protection shall be guided by the critical need to protect valuable coastal resources and marine waters, while also considering all of the following:

(A) The protection provided by the measure.

(B) The technological achievability of the measure.

(C) The cost of the measure.

(2) The administrator shall not use a cost-benefit or cost-effectiveness analysis or any particular method of analysis in determining which measures provide the best achievable protection. The administrator shall instead, when determining which measures provide best achievable protection, give reasonable consideration to the protection provided by the measures, the technological achievability of the measures, and the cost of the measures when establishing the requirements to provide the best achievable protection for coastal and marine resources.

(c) (1) "Best achievable technology" means that technology that provides the greatest degree of protection, taking into consideration both of the following:

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

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

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

(d) "Dedicated response resources" means equipment and personnel committed solely to oil spill response, containment, and cleanup that are not used for any other activity that would adversely affect the ability of that equipment and personnel to provide oil spill response services in the timeframes for which the equipment and personnel are rated.

(e) "Director" means the Director of Fish and Game.

(f) "Environmentally sensitive area" means an area defined pursuant to the applicable area contingency plans, as created and revised by the Coast Guard and the administrator.

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

(h) "Inland waters" means waters of the state other than marine waters, but not including groundwater.

(i) "Local government" means a chartered or general law city, a chartered or general law county, or a city and county.

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

(A) Subject to Chapter 6.67 (commencing with Section 25270) or Chapter 6.75 (commencing with Section 25299.10) of Division 20 of the Health and Safety Code.

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

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

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

(k) (1) "Marine terminal" means any marine facility used for transferring oil to or from a tank ship or tank barge.

(2) "Marine terminal" includes, for purposes of this chapter, all piping not integrally connected to a tank facility, as defined in subdivision (m) of Section 25270.2 of the Health and Safety Code.

(l) "Marine waters" means those waters subject to tidal influence, and includes the waterways used for waterborne commercial vessel traffic to the Port of Sacramento and the Port of Stockton.

(m) "Mobile transfer unit" means a small marine fueling facility that is a vehicle, truck, or trailer, including all connecting hoses and piping, used for the transferring of oil at a location where a discharge could impact marine waters.

(n) "Nondedicated response resources" means those response resources identified by an Oil Spill Response Organization for oil spill response activities that are not dedicated response resources.

(o) "Nonpersistent oil" means a petroleum-based oil, such as gasoline or jet fuel, that evaporates relatively quickly and is an oil with hydrocarbon fractions, at least 50 percent of which, by volume, distills at a temperature of 645 degrees Fahrenheit, and at least 95 percent of which, by volume, distills at a temperature of 700 degrees Fahrenheit.

(p) "Nontank vessel" means a vessel of 300 gross tons or greater that carries oil, but does not carry that oil as cargo.

(q) "Oil" means any kind of petroleum, liquid hydrocarbons, or petroleum products or any fraction or residues therefrom, including, but not limited to, crude oil, bunker fuel, gasoline, diesel fuel, aviation fuel, oil sludge, oil refuse, oil mixed with waste, and liquid distillates from unprocessed natural gas.

(r) "Oil spill cleanup agent" means a chemical, or any other substance, used for removing, dispersing, or otherwise cleaning up oil or any residual products of petroleum in, or on, any of the waters of the state.

(s) "Oil spill contingency plan" or "contingency plan" means the oil spill contingency plan required pursuant to Article 5 (commencing with Section 8670.28).

(t) (1) "Oil Spill Response Organization" or "OSRO" means an individual, organization, association, cooperative, or other entity that provides, or intends to provide, equipment, personnel, supplies, or other services directly related to oil spill containment, cleanup, or removal activities.

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

(3) "OSRO" does not include an owner or operator with an oil spill contingency plan approved by the administrator or an entity that only provides spill management services, or who provides services or equipment that are only ancillary to containment, cleanup, or removal activities.

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

(v) (1) "Owner" or "operator" means any of the following:

(A) In the case of a vessel, a person who owns, has an ownership interest in, operates, charters by demise, or leases, the vessel.

(B) In the case of a marine facility, a person who owns, has an ownership interest in, or operates the marine facility.

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

(D) An entity of the state or local government that acquired ownership or control of a vessel or marine facility, when the entity of the state or local government has caused or contributed to a spill or discharge of oil into marine waters.

(2) "Owner" or "operator" does not include a person who, without participating in the management of a vessel or marine facility, holds indicia of ownership primarily to protect the person's security interest in the vessel or marine facility.

(3) "Operator" does not include a person who owns the land underlying a marine facility or the facility itself if the person is not involved in the operations of the facility.

(w) "Person" means an individual, trust, firm, joint stock company, or corporation, including, but not limited to, a government corporation, partnership, and association. "Person" also includes a city, county, city and county, district, and the state or any department or agency thereof, and the federal government, or any department or agency thereof, to the extent permitted by law.

(x) "Pipeline" means a pipeline used at any time to transport oil.

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

(z) "Responsible party" or "party responsible" means any of the following:

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

(2) The owner, operator, or lessee of, or a person that charters by demise, a vessel or marine facility, or a person or entity accepting responsibility for the vessel or marine facility.

(aa) "Small craft" means a vessel, other than a tank ship or tank barge, that is less than 20 meters in length.

(ab) "Small craft refueling dock" means a waterside operation that dispenses only nonpersistent oil in bulk and small amounts of persistent lubrication oil in containers primarily to small craft and meets both of the following criteria:

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

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

(ac) "Small marine fueling facility" means either of the following:

(1) A mobile transfer unit.

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

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

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

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

(ad) "Spill" or "discharge" means a release of at least one barrel (42 gallons) of oil into marine waters that is not authorized by a federal, state, or local government entity.

(ae) "California oil spill contingency plan" means the California oil spill contingency plan prepared pursuant to Article 3.5 (commencing with Section 8574.1) of Chapter 7.

(af) "Tank barge" means a vessel that carries oil in commercial quantities as cargo but is not equipped with a means of self-propulsion.

(ag) "Tank ship" means a self-propelled vessel that is constructed or adapted for the carriage of oil in bulk or in commercial quantities as cargo.

(ah) "Tank vessel" means a tank ship or tank barge.

(ai) "Vessel" means a watercraft or ship of any kind, including every structure adapted to be navigated from place to place for the transportation of merchandise or persons.

(aj) "Vessel carrying oil as secondary cargo" means a vessel that does not carry oil as a primary cargo, but does carry oil in bulk as cargo or cargo residue.

This section shall remain in effect only until January 1, 2012, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2012, deletes or extends that date.

History.—Stats. 1990, Ch. 10, in effect from December 13, 1990 until July 1, 1991, added definitions of "crude oil" and "petroleum products" and allowed them to expire on terms of the bill and revert to the former section definitions. Stats. 1991, Ch. 300, in effect August 1, 1991, substituted "vessel that carries . . . of self-propulsion" for "relatively flat-bottomed, waterborne vessel that does not have a crew, is propelled by being pulled by another vessel, and that is constructed or adapted to carry oil in commercial quantities as cargo" after " "Barge" means any" in subdivision (b). Stats. 1992, Ch. 1313, in effect September 30, 1992, added designations "(1)" and "(2)" to subdivision (c); added "For the purposes . . . a "marine facility" " to the end of subdivision (f); added subdivision (i) and relettered the former subdivisions (i) through (n) as (j) to (o); added subdivision (p) and relettered former subdivisions (o) through (s) as (q) to (u). Stats. 1994, Ch. 1269, in effect January 1, 1995, added subdivisions (p) and (r), relettered subdivision (p) as (q), and relettered subdivisions (q) through (u) as (s) through (w), respectively. Stats. 1995, Ch. 940, in effect January 1, 1996, added subdivision (i) and relettered former subdivisions (i) and (j) as (j) and (k), respectively; added subdivision (l) and relettered former subdivisions (k) through (w) as (m) through (y), respectively; and added subdivision (z). Stats. 2001, Ch. 748 (AB 715), relettered subdivision (b) as subdivision (dd) and added "Tank" prior to "barge" in new subdivision (dd), relettered subdivision (c) as subdivision (b), deleted old subparagraph (c)(2), relettered subdivision (d) as subdivision (c), added new subdivision (d) and (e), relettered subdivision (e) as subdivision (f), relettered subdivision (f) as subdivision (g), relettered subdivision (g) as subdivision (h), relettered subdivision (h) as subdivision (i), relettered subdivision (i) as subdivision (j), added new subdivision (k), relettered subdivision (j) as subdivision (l), added new subdivision (m), relettered subdivision (k) as subdivision (n), relettered subdivision (l) as subdivision (o), added new subdivision (p) and (q), relettered subdivision (m) as subdivision (r), relettered subdivision (n) as subdivision (s), relettered subdivision (o) as subdivision (t), relettered subdivision (p) as subdivision (u), added new subdivision (v), relettered subdivision (q) as subdivision (w), relettered subdivision (r) as subdivision (x), relettered subdivision (s) as subdivision (y), relettered subdivision (t) as subdivision (z), relettered subdivision (u) as subdivision (aa), relettered subdivision (v) as subdivision (bb), relettered subdivision (w) as subdivision (cc), relettered subdivision (x) as subdivision (ee), added new subdivision (ff), relettered subdivision (y) as subdivision (gg), relettered subdivision (z) as subdivision (hh), added "marine" after "the vessel or" in subparagraph (s)(1)(C), substituted "that" for "which" and "of" for "or" in subparagraph (s)(1)(D), substituted "any vessel, other . . . tank barge, that" for "waterborne craft, other than a tanker or barge, which" in subdivision (x), substituted "that" for "which" in subparagraph (z)(2), substituted "that" for "which" in subdivision (aa), substituted "Tank ship means . . . vessel that is" for "Tanker means any self propelled, water borne vessel," in subdivision (ee), substituted "any watercraft or . . . merchandise or persons." for "a tanker or . . . in this section." in subdivision (gg), effective January 1, 2002. Stats. 2004, Ch. 796 (SB 1742), substituted "cost-effectiveness analysis" for "cost effectiveness analysis" in the first sentence of subparagraph (b)(2), substituted "and includes the waterways used for waterborne commercial vessel traffic to the Port of Sacramento and the Port of Stockton" for "except for waters in the Sacramento, San Joaquin Delta upstream from a line running north and south through the point where Contra Costa, Sacramento, and Solano Counties meet" in subdivision (i), substituted "Oil Spill Response Organization" for "OSRO" in subdivision (k), and substituted "California" for "state" two places in subdivision (cc). Stats. 2007, Ch. 373 (AB 1220), in effect January 1, 2008, deleted hyphen in "Nondedicated" in subdivision (k); added "greater than 20,000 gallons" and substituted "but not more than" for "not exceeding" before "40,000 gallons in any single . . . tank compartment." in subparagraph (z)(2)(A); and relettered subdivision (bb) as (ab), subdivision (cc) as (ac), subdivision (dd) as (ad), subdivision (ee) as (ae), subdivision (ff) as (af), subdivision (gg) as (ag), and subdivision (hh) as (ah). Stats. 2008, Ch. 565 (AB 2911), in effect January 1, 2009, adds new subdivision (e); relettered former subdivision (e) as (f); adds new subdivisions (g) and (h); relettered former subdivisions (f), (g), (h), (i), (j), (k), (l), (m), (n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), and (z) as (i), (j), (k), (l), (m), (n), (o), (p), (q), (r), (s), (t), (u), (v), (w), (x), (y), (z), (aa), (ab), and (ac), respectively; relettered former subdivisions (aa), (ab), (ac), (ad), (ae), (af), (ag), and (ah) as (ad), (ae), (af), (ag), (ah), (ai), (aj), and (ak), respectively; substituted "a" for "any" throughout entire section; substituted "(m)" for "(1)" after ", as defined in subdivision" in subdivision (k)(2); substituted "that" for "which" after "of any kind" in subdivision (u); added "where" after "or marine facility," and deleted "of which" after "title or control" in subparagraph (v)(1)(C); substituted "the person's" for "his or her" after "primarily to protect" in paragraph (v)(2); and added "a" before and substituted "that" for "who" after "person" in paragraph (z)(2). Stats. 2009, Ch. 294 (AB 1442), in effect January 1, 2010, deleted comma and "diesel" after "such as gasoline" and substituted "degrees" for "°" after "645" and "700" in subdivision (o); substituted "a" for "any" after "authorized by" in subdivision (ad). Stats. 2011, Ch. 133 (AB 120), in effect July 26, 2011, deleted former subdivision (ae) which read ""State Interagency Oil Spill Committee" means the committee established pursuant to Article 3.5 (commencing with Section 8574.1 of Chapter 7.", relettered former subdivisions (af) through (ak) as (ae) through (aj), respectively, and added the last sentence of the section.

Text of section operative January 1, 2012

8670.3. Definitions. Unless the context requires otherwise, the following definitions shall govern the construction of this chapter:

(a) "Administrator" means the administrator for oil spill response appointed by the Governor pursuant to Section 8670.4.

(b) (1) "Best achievable protection" means the highest level of protection that can be achieved through both the use of the best achievable technology and those manpower levels, training procedures, and operational methods that provide the greatest degree of protection achievable. The administrator's determination of which measures provide the best achievable protection shall be guided by the critical need to protect valuable coastal resources and marine waters, while also considering all of the following:

(A) The protection provided by the measure.

(B) The technological achievability of the measure.

(C) The cost of the measure.

(2) The administrator shall not use a cost-benefit or cost-effectiveness analysis or any particular method of analysis in determining which measures provide the best achievable protection. The administrator shall instead, when determining which measures provide best achievable protection, give reasonable consideration to the protection provided by the measures, the technological achievability of the measures, and the cost of the measures when establishing the requirements to provide the best achievable protection for coastal and marine resources.

(c) (1) "Best achievable technology" means that technology that provides the greatest degree of protection, taking into consideration both of the following:

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

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

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

(d) "Dedicated response resources" means equipment and personnel committed solely to oil spill response, containment, and cleanup that are not used for any other activity that would adversely affect the ability of that equipment and personnel to provide oil spill response services in the timeframes for which the equipment and personnel are rated.

(e) "Director" means the Director of Fish and Game.

(f) "Environmentally sensitive area" means an area defined pursuant to the applicable area contingency plans, as created and revised by the Coast Guard and the administrator.

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

(h) "Inland waters" means waters of the state other than marine waters, but not including groundwater.

(i) "Local government" means a chartered or general law city, a chartered or general law county, or a city and county.

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

(A) Subject to Chapter 6.67 (commencing with Section 25270) or Chapter 6.75 (commencing with Section 25299.10) of Division 20 of the Health and Safety Code.

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

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

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

(k) (1) "Marine terminal" means any marine facility used for transferring oil to or from a tank ship or tank barge.

(2) "Marine terminal" includes, for purposes of this chapter, all piping not integrally connected to a tank facility, as defined in subdivision (m) of Section 25270.2 of the Health and Safety Code.

(l) "Marine waters" means those waters subject to tidal influence, and includes the waterways used for waterborne commercial vessel traffic to the Port of Sacramento and the Port of Stockton.

(m) "Mobile transfer unit" means a small marine fueling facility that is a vehicle, truck, or trailer, including all connecting hoses and piping, used for the transferring of oil at a location where a discharge could impact marine waters.

(n) "Nondedicated response resources" means those response resources identified by an Oil Spill Response Organization for oil spill response activities that are not dedicated response resources.

(o) "Nonpersistent oil" means a petroleum-based oil, such as gasoline or jet fuel, that evaporates relatively quickly and is an oil with hydrocarbon fractions, at least 50 percent of which, by volume, distills at a temperature of 645 degrees Fahrenheit, and at least 95 percent of which, by volume, distills at a temperature of 700 degrees Fahrenheit.

(p) "Nontank vessel" means a vessel of 300 gross tons or greater that carries oil, but does not carry that oil as cargo.

(q) "Oil" means any kind of petroleum, liquid hydrocarbons, or petroleum products or any fraction or residues therefrom, including, but not limited to, crude oil, bunker fuel, gasoline, diesel fuel, aviation fuel, oil sludge, oil refuse, oil mixed with waste, and liquid distillates from unprocessed natural gas.

(r) "Oil spill cleanup agent" means a chemical, or any other substance, used for removing, dispersing, or otherwise cleaning up oil or any residual products of petroleum in, or on, any of the waters of the state.

(s) "Oil spill contingency plan" or "contingency plan" means the oil spill contingency plan required pursuant to Article 5 (commencing with Section 8670.28).

(t) (1) "Oil Spill Response Organization" or "OSRO" means an individual, organization, association, cooperative, or other entity that provides, or intends to provide, equipment, personnel, supplies, or other services directly related to oil spill containment, cleanup, or removal activities.

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

(3) "OSRO" does not include an owner or operator with an oil spill contingency plan approved by the administrator or an entity that only provides spill management services, or who provides services or equipment that are only ancillary to containment, cleanup, or removal activities.

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

(v) (1) "Owner" or "operator" means any of the following:

(A) In the case of a vessel, a person who owns, has an ownership interest in, operates, charters by demise, or leases, the vessel.

(B) In the case of a marine facility, a person who owns, has an ownership interest in, or operates the marine facility.

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

(D) An entity of the state or local government that acquired ownership or control of a vessel or marine facility, when the entity of the state or local government has caused or contributed to a spill or discharge of oil into marine waters.

(2) "Owner" or "operator" does not include a person who, without participating in the management of a vessel or marine facility, holds indicia of ownership primarily to protect the person's security interest in the vessel or marine facility.

(3) "Operator" does not include a person who owns the land underlying a marine facility or the facility itself if the person is not involved in the operations of the facility.

(w) "Person" means an individual, trust, firm, joint stock company, or corporation, including, but not limited to, a government corporation, partnership, and association. "Person" also includes a city, county, city and county, district, and the state or any department or agency thereof, and the federal government, or any department or agency thereof, to the extent permitted by law.

(x) "Pipeline" means a pipeline used at any time to transport oil.

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

(z) "Responsible party" or "party responsible" means any of the following:

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

(2) The owner, operator, or lessee of, or a person that charters by demise, a vessel or marine facility, or a person or entity accepting responsibility for the vessel or marine facility.

(aa) "Small craft" means a vessel, other than a tank ship or tank barge, that is less than 20 meters in length.

(ab) "Small craft refueling dock" means a waterside operation that dispenses only nonpersistent oil in bulk and small amounts of persistent lubrication oil in containers primarily to small craft and meets both of the following criteria:

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

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

(ac) "Small marine fueling facility" means either of the following:

(1) A mobile transfer unit.

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

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

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

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

(ad) "Spill" or "discharge" means a release of at least one barrel (42 gallons) of oil into marine waters that is not authorized by a federal, state, or local government entity.

(ae) "California oil spill contingency plan" means the California oil spill contingency plan prepared pursuant to Article 3.5 (commencing with Section 8574.1) of Chapter 7.

(af) "Tank barge" means a vessel that carries oil in commercial quantities as cargo but is not equipped with a means of self-propulsion.

(ag) "Tank ship" means a self-propelled vessel that is constructed or adapted for the carriage of oil in bulk or in commercial quantities as cargo.

(ah) "Tank vessel" means a tank ship or tank barge.

(ai) "Vessel" means a watercraft or ship of any kind, including every structure adapted to be navigated from place to place for the transportation of merchandise or persons.

(aj) "Vessel carrying oil as secondary cargo" means a vessel that does not carry oil as a primary cargo, but does carry oil in bulk as cargo or cargo residue.

This section shall become operative on January 1, 2012.

History.—Added by Stats. 2011, Ch. 133 (AB 120), in effect July 26, 2011, but operative January 1, 2012.

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8670.4. Administrator for oil spill response. There shall be an administrator for oil spill response. The administrator shall be a chief deputy director of the Department of Fish and Game. The administrator shall be appointed by the Governor and shall serve at the pleasure of the Governor. The appointment by the Governor shall be subject to the advice and consent of the Senate. The compensation of the administrator shall be fixed by the Governor pursuant to law.

8670.5. Ensuring full and adequate response to oil spills. The Governor shall ensure that the state fully and adequately responds to all oil spills in marine waters. The administrator, acting at the direction of the Governor, shall implement activities relating to oil spill response, including drills and preparedness and oil spill containment and cleanup. The administrator shall also represent the state in any coordinated response efforts with the federal government.

History.—Stats. 1994, Ch. 533, in effect January 1, 1995, added "oil" after "and preparedness and". Stats. 2004, Ch. 796 (SB 1742), deleted "emergency" before "drills and preparedness" in the second sentence.

8670.5.1. Nontank vessel not used for commercial purposes; requirements. (a) Notwithstanding other provisions of this chapter, an owner or operator of a nontank vessel that is not used for commercial purposes and that weighs 300 gross tons or greater, but less than 400 gross tons, shall, at least 96 hours prior to arrival in the marine waters of the state, submit to the administrator all of the following:

(1) Evidence of financial responsibility required pursuant to Section 8670.37.58.93

(2) Payment of the nontank vessel fee pursuant to Section 8670.41.

(3) The vessel’s particulars, such as the size and dimensions of the vessel and any other information required by the administrator.

(4) Graywater information, including the vessel’s ability to store graywater while in marine waters of the state, and size and capacity of any graywater holding tanks, as measured in metric tons.

(5) Sewage information, including the vessel’s ability to store sewage while in marine waters of the state, and size and capacity of any sewage holding tanks, as measured in metric tons.

(b) Information required to be submitted to the administrator pursuant to paragraphs (4) and (5) of subdivision (a) shall also be submitted to the State Water Resources Control Board.

(c) The owner or operator of the nontank vessel that is not used for commercial purposes shall submit other documents required by this chapter within 14 days after the arrival of the vessel in the marine waters of the state.

(d) This section shall not apply to an owner or operator of either of the following:

(1) A vessel with insufficient graywater and sewage holding capacity to store graywater and sewage while the vessel is in marine waters of the state.

(2) A vessel for which a contingency plan has previously been denied or revoked.

(e) This section shall remain in effect only until January 1, 2014, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2014, deletes or extends that date.

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Article 6. The Oil Spill Prevention and Administration Fund

8670.38. Creation; "Fund." (a) The Oil Spill Prevention and Administration Fund is hereby created in the State Treasury. The money in the fund is available for appropriation by the Legislature and may only be used for the purposes of this chapter, Article 3.5 (commencing with Section 8574.1) of Chapter 7, and Division 7.8 (commencing with Section 8750) of the Public Resources Code.

(b) For the purposes of this article, "fund" refers to the Oil Spill Prevention and Administration Fund.

8670.39. Administration. (a) The administrator shall administer the fund in accordance with this article.

(b) The administrator may develop and adopt any rules, regulations, and guidelines determined to be necessary to carry out and enforce this article.

Text of section operative through December 31, 2011

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.

(g) This section shall remain in effect only until January 1, 2012, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2012, deletes or extends that date.

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). Stats. 2011, Ch. 133 (AB 120), in effect July 26, 2011, added subdivision (g).

Text of section operative January 1, 2012

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 shall not exceed six and one-half cents ($0.065) per barrel of crude oil or petroleum products. Beginning January 1, 2015, 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, 2012.

History.—Added by Stats. 2011, Ch. 133 (AB 120), in effect July 26, 2011, but operative January 1, 2012. Stats. 2011, Ch. 583 (AB 1112), in effect January 1, 2012, substituted "shall" for "may" after "The annual assessment" in, substituted "six and one-half cents ($0.065)" for "five cents ($0.05)" in, and added the third sentence to, subdivision (a); added the fourth sentence to subdivision (b)(3); deleted former paragraph (7) of subdivision (e) which read "(7) 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)."; renumbered former paragraph "(8)" as "(7)" in subdivision (e); added subdivision (g); and relettered former subdivision "(g)" as "(h)".

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8670.41. Nontank vessel fee. (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. Before January 1, 2005, the fee shall be two thousand five hundred dollars ($2,500), or less per vessel.

(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.

History.—Stats. 2002, Ch. 514 (SB 849), in effect January 1, 2003. Stats. 2004, Ch. 796 (SB 1742), in effect January 1, 2005, added "per vessel" after "($2,500), or less" in subdivision (a).

8670.42. Report to the Legislature. (a) The Department of Fish and Game and the State Lands Commission, independently, shall contract with the Department of Finance for the preparation of a detailed report that shall be submitted on or before January 1, 2013, and no less than once every four years thereafter, to the Governor and the Legislature on the financial basis and programmatic effectiveness of the state's oil spill prevention, response, and preparedness program. This report shall include an analysis of all of the oil spill prevention, response, and preparedness program's major expenditures, fees and fines collected, staffing and equipment levels, spills responded to, and other relevant issues. The report shall recommend measures to improve the efficiency and effectiveness of the state's oil spill prevention, response, and preparedness program, including, but not limited to, measures to modify existing contingency plan requirements, to improve protection of sensitive shoreline sites, and to ensure adequate and equitable funding for the state's oil spill prevention, response, and preparedness program.

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

History.—Stats. 2002, Ch. 514 (SB 849), in effect January 1, 2003. Stats. 2011, Ch. 583 (AB 1112), in effect January 1, 2012, added "(a)" before "The Department of Fish and Game", added "and the State Lands Commission, independently," after "The Department of Fish and Game", substituted "2013" for "2005", and added "and no less than once every four years thereafter," to the first sentence in subdivision (a); and added subdivision (b).

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Article 7. Oil Spill Response Trust Fund

8670.46. Creation; "Fund." (a) The Oil Spill Response Trust Fund is hereby created in the State Treasury. Notwithstanding Section 13340, the money in the fund is continuously appropriated to the administrator for expenditure, without regard to fiscal years, for the purposes of this article.

(b) For the purposes of this article, "fund" refers to the Oil Spill Response Trust Fund.

8670.47. Administration. (a) The administrator shall administer the fund in accordance with this article.

(b) The administrator may develop and adopt any rules, regulations, and guidelines determined to be necessary to carry out and enforce this article.

(c) The administrator is responsible for ensuring that there are adequate moneys available in the fund to carry out the purposes of this chapter.

8670.47.5. Deposit of specified moneys in fund. The following shall be deposited into the fund:

(a) The fee required pursuant to Section 8670.48.

(b) Any federal funds received to pay for response, containment, abatement, and rehabilitation costs from an oil spill in marine waters.

(c) Any money borrowed by the Treasurer pursuant to Article 7.5 (commencing with Section 8670.53.1) or any draw on the financial security obtained by the Treasurer pursuant to subdivision (o) of Section 8670.48.

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

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

History.—Stats. 2007, Ch. 373 (AB 1220), in effect January 1, 2008, deleted "moneys" from between "following" and "shall" in first sentence; substituted "money" for "funds," added "by the Treasurer" between "borrowed" and "pursuant," and added "or any draw . . . of Section 8670.48" after "Section 8670.53.1)" in subdivision (c ); substituted "costs recovered" for "cost recoveries" and added "and subdivision (e) of Section 8670.53.1" after "Section 8670.53" in subdivision (e).

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8670.48. Oil Spill response fee; definitions; authorization of refunds; legislative intent. (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 of 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.

History.—Stats. 2004, Ch. 796 (SB 1742), renamed former subparagraph (i)(1) as subdivision (i), deleted ", for reporting periods after January 31, 1991," after "any money collected" in the first sentence, and deleted ", and only for those periods which commenced on or after January 31, 1991" after "exceeded the specified" in the second sentence of subdivision (i), deleted subparagraph (i)(2) which read: "(2) Any amount of fees collected in excess of the specified amount for periods prior to February 1, 1991, shall be refunded as follows: (A) First, to feepayers who paid oil spill response fees under subdivision (d) or (e) of Section 8670.48. (B) Second, to feepayers in proportion to the amount each feepayer paid into the fund for the period from September 24, 1990, to January 31, 1991, inclusive, less any amounts refunded pursuant to paragraph (1).", deleted "as specified in subdivision (b)," after "into marine waters," in subdivision (l), deleted "provide emergency loans and to" before "cover response and" and deleted "as specified in subdivision (b)," after "into marine waters," in subparagraph (l)(2), substituted "subdivision (g)" for "subdivision (h)" in subparagraph (l)(4), substituted "For each fiscal year, consistent with this article, the administrator shall submit for appropriation through the Governor's Budget," for "For the fiscal year beginning July 1, 1998, and each year thereafter, consistent with this article, the administrator shall submit for appropriation, through the Governor's budget," at the beginning of subparagraph (l)(2), deleted former subdivision (n) which read: "For the purpose of paragraphs (1) and (2) of subdivision (k) waterways used for waterborne commercial vessel traffic to the Port of Stockton and the Port of Sacramento.", relettered former subdivisions (o), (p), and (q) as (n), (o), and (p), respectively, and deleted "of the Government Code" after "to Section 8670.48.5" in subdivision (p). Stats. 2007, Ch. 373 (AB 1220), in effect January 1, 2008, substituted "for which" for "that," added "collection is necessary for any of the following reasons:," and added subparagraphs (A), (B), and (C) in paragraph (f) (1); revised former subdivision (f)(2) to read, "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)."; added "specified in subdivision (a) of Section 46012 of the Revenue and Taxation Code" before "within four months.", added "administrator has drawn upon the financial security obtained by the Treasurer pursuant to subdivision (o) or if the" before "Treasurer has borrowed money", substituted "incurred" for "imposed" before "in connection with", substituted "necessary" for "required" before "for the purposes specified", and substituted "(1)" for "(7) of subdivision (k)" in subdivision (f)(3); added ", in consultation with the State Board of Equalization and with the approval of the Treasurer,", added "that is not necessary for the purposes specified in paragraph (1) of subdivision (f)", deleted "in excess of the designated amount specified . . . as being required for the purposes specified in paragraph (7) of subdivision (k)" in subdivision (i); substituted "cost of obtaining" for "arrangement of" and "(o)" for "(p)" in paragraph (k)(5); substituted "incurred" for "imposed", before "in connection with", added "moneys drawn by the administrator on the financial security obtained by the Treasurer pursuant to subdivision (o) or" and deleted "funds" before "borrowed", and added "by the Treasurer" before "pursuant to Article 7.5 (commencing with Section 8670.53.1)." in paragraph (k)(7); added "specified in subdivision (a) of Section 46012 of the Revenue and Taxation Code" in the first sentence and added "the amount in" before "the fund exceeds that designated" in the fourth sentence in paragraph (l)(1); added ", as a proposed" after "administrator shall submit", deleted "for" before "appropriation", substituted "in" for "through" before "the Governor's", substituted "budget," for "Budget,", substituted "five" for "three" before "hundred thousand dollars", substituted "($1,500,000)" for "($1,300,000)" before "of the interest earned", and deleted the next-to-last sentence "Through the budget process, the Legislature shall review and approve the appropriation." in subparagraph (l)(2)(A); substituted "obtain" for "purchase" after "The Treasurer shall", substituted "in a form which, in the event of an oil spill," for "which" before "may be drawn upon", deleted "as" before "required by", added "paragraph (2) of subdivision (a) of" before "Section 8670.49.", substituted "may" for "shall" after "The financial security", added "obtained" before and "any of" after "in", substituted "forms" for "form", deleted "as", substituted "(b)" for "(a)", and added ", as determined by the Treasurer" in subdivision (o); and deleted "the" before "oil spill response fees" in subdivision (p). Stats. 2008, Ch. 565 (AB 2911), in effect January 1, 2009, substituted "a" for "every" after "imposed upon" and substituted "who owns" for "owning" after "upon a person" in subdivision (a)(1); substituted "An" for "Every" in subdivisions (a)(2), (b), and (c)(1); substituted "a" for "any" after "means", substituted "does not refine" for "performs no refining of" after "this state who", added "a" after "crude oil into", substituted "does not possess or own a" for "possesses or owns no" after ", and who", and substituted "facility" for "facilities" after "retail gasoline marketing" in subdivision (c)(3); substituted "A" for "Every" before "marine terminal operator" and added "a" after "by means of" in subdivision (d); substituted "An" for "Every" before "operator of a pipeline" in subdivision (e); substituted "a" for "any" after "necessary to repay" and deleted "any" after "subdivision (o) or" in subparagraph (C) of paragraph (1) of subdivision (f); substituted "exceed" for "exceeds" after "vessel or pipeline" in subdivision (g); substituted "This" for "Nothing in this" before "section" and substituted "does not" for "shall" before "require the fund" in the last sentence of subdivision (i); substituted "two million dollars ($2,000,000)" for "one million five hundred thousand dollars ($1,500,000)" after ", an amount up to", deleted a comma after "Oil Spill Response Trust Fund", added "and proactive oiled wildlife search and collection rescue efforts" after "rehabilitation stations", and added ", if any," after "The remaining interest" in paragraph (2)(A) of subdivision (l); and substituted "This" for "Nothing in this" after "(p)" and substituted "does not limit" for "limits" after "section" in subdivision (p).

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8670.48.5. Findings required as condition of increase in amount of fee. (a) The administrator may raise the fees specified in Section 8670.48 to a maximum of one dollar ($1) per barrel, provided that the fee may only be raised by maximum increments of twenty-five cents ($0.25) not more frequently than once every three months. The administrator shall raise the fee only upon making all of the following findings:

(1) There have been, or are existing, demands for expenditures from the fund for allowable purposes that have severely depleted or exhausted, or will severely deplete or exhaust, the fund.

(2) The Governor has requested the Treasurer to borrow the moneys and the Treasurer finds that the fee is insufficient for the Treasurer to borrow enough money to meet the reasonably anticipated demands on the fund for authorized expenditures, including providing moneys for the costs of response, containment, and cleanup of oil spills, damage assessment costs, wildlife rehabilitation, emergency loans, and damage claims, and to repay those borrowings, or the Treasurer finds that the fee is insufficient to repay and secure existing draws by the administrator on the financial security obtained by the Treasurer pursuant to subdivision (o) of Section 8670.48 or borrowings by the Treasurer pursuant to Article 7.5 (commencing with Section 8670.53.1).

(3) Failure to raise the fee in the amount proposed will result in unmet or unpaid, authorized expenditures or noncompliance with any resolutions or contracts entered into in connection with obtaining the financial security pursuant to subdivision (o) of Section 8670.48 or borrowings by the Treasurer pursuant to Article 7.5 (commencing with Section 8670.53.1).

(b) At least 30 days prior to the day the increased fee shall be effective, the administrator shall inform the Legislature of his or her intent to raise the fee.

(c) Each incremental increase shall be effective until the later of (1) the delivery by the Treasurer of a certificate to the administrator as authorized by subdivision (f) of Section 8670.53.3 or (2) the expiration date established by the administrator not to exceed one year. The increase may be renewed by the administrator before its expiration upon making the findings required by subdivision (a).

(d) It is the intent of the Legislature that the fund shall not be used for any purpose other than those set forth in this chapter.

History.—Stats. 1992, Ch. 1312, in effect September 30, 1992, rewrote subdivision (c) which read: "No single, incremental increase shall be effective for more than one year, unless renewed by the director before the expiration of the year upon making the findings required in subdivision (a). The administrator may establish an expiration date of less than one year.". Stats. 1993, Ch. 1190, in effect October 11, 1993, added ", or will severely deplete or exhaust, the fund" after "or exhausted" in subdivision (a)(1); added "or the Treasurer has . . . secure existing borrowings" after "and damage claims" in subdivision (a)(2); and deleted "The Legislature may reject the increase by statute." at the end of subdivision (b). Stats. 2007, Ch. 373 (AB 1220), in effect January 1, 2008, deleted "A calamitous or unforeseen event, or series of events, has" and added "There have been, or are existing, demands for expenditures from the fund for allowable purposes that have" in paragraph (a)(1); substituted "moneys" for "funds", added "and to repay those borrowings," after ", and damage claims,", deleted "has previously borrowed funds pursuant to the Governor's request, and the Treasurer" before "finds that the fee", and substituted "draws by the administrator on the financial security obtained by the Treasurer pursuant to subdivision (o) of Section 8670.48 or borrowings by the Treasurer pursuant to Article 7.5 (commencing with Section 8670.53.1)" for "borrowings" in paragraph (a)(2); deleted "," after "will result in unmet" and added "or noncompliance with any resolutions or contracts . . . (commencing with Section 8670.53.1)" in paragraph (a)(3); substituted "Each" for "A single," before "incremental increase shall" and substituted "(f)" for "(e)" after "authorized by subdivision" in subdivision (c).

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8670.50. Use of moneys from fund. (a) Money from the fund may only be expended to cover the costs incurred by the state and local governments and agencies for any of the following:

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

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

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

(C) Undertaken at the direction of the administrator.

(2) Meet the requirements of Section 8670.61.5, relating to wildlife rehabilitation.

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

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

History.—Stats. 1992, Ch. 1312, in effect September 30, 1992, substituted "expended" for "fund" after "may only be" in subdivision (a) and added subdivision (a)(3). Stats. 2007, Ch. 373 (AB 1220), in effect January 1, 2008, substituted "any" for "all" after "governments and agencies for" in subdivision (a); substituted "Responding" for "Respond", substituted "containing" for "contain", substituted "cleaning" for "clean", substituted "if" for "provided", and added "any of the following:" in paragraph (a)(1); added subparagraph (A) "Undertaken" before "pursuant to the state", and a period after "Chapter 7", added subparagraph (B), and added subparagraph (C) and substituted "Undertaken" for "or those efforts are undertaken" before "at the direction of" in paragraph (a)(1); substituted "Making" for "Make" and "authorized" for "contemplated" in paragraph (a)(3); and added ", subject to the lien established pursuant to Section 8670.53.2" in subdivision (b).

8670.51. Payment of judgment by administrator; subrogation. (a) When a person has obtained a final judgment for damages resulting from an oil spill in marine waters, but is unable, within one year after the date of its entry, to enforce the judgment pursuant to Title 9 (commencing with Section 680.010) of the Code of Civil Procedure, or is unable to obtain satisfaction of the judgment from the federal government within 90 additional days, the administrator shall pay an amount not to exceed those amounts which cannot be recovered from a responsible party and the fund shall be subrogated to all rights, claims, and causes of action that the claimant has under this chapter, Article 3.5 (commencing with Section 8574.1) of Chapter 7, Section 8670.61.5, and Division 7.8 (commencing with Section 8750) of the Public Resources Code.

(b) Any person may apply to the fund for compensation for damages and losses suffered as a result of an oil spill in marine waters under any of the following conditions:

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

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

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

(c) The administrator shall not approve any claim in an amount which exceeds the amount to which the person would otherwise be entitled pursuant to Section 8670.56.5, and shall pay claims from the fund which are approved pursuant to this section.

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8670.51.1. Designation of responsible party; claims in specified amounts; creation of advisory committee; statute of limitations; adoption of regulations; punitive damages. (a) (1) Upon learning of an oil spill, the administrator shall immediately designate the responsible party, who, if that designation is not challenged, shall immediately, widely advertise the manner in which it shall accept and pay claims.

(2) If the designation of the administrator is challenged, the administrator shall immediately, widely advertise the manner in which he or she shall accept, process, and pay claims. If the administrator's designation is later upheld, all costs incurred by the administrator, including interest and appropriate penalties, shall be assessed against the responsible party.

(3) If the administrator is unable to designate a responsible party, the administrator shall immediately, widely advertise the manner in which the administrator shall accept, process, and pay claims. In the absence of a designated responsible party the claimant shall submit his or her claim to the federal fund. If there is no response within 60 days, the claimant may submit his or her claim to the fund.

(b) Claims under the amount of fifty thousand dollars ($50,000) may be submitted directly to the fund. The claimant shall not be required to make a demand on the responsible party or any federal fund. It is the intent of the Legislature that these claims be processed as expeditiously as possible, and the administrator shall contract with professional adjusters to handle the claims as fairly and professionally as possible. Claimants shall assign or subrogate all rights against the responsible party to the fund before payment and release.

(c) Claims in excess of the amount of fifty thousand dollars ($50,000) shall first be presented to the designated responsible party for payment. If a satisfactory response is not forthcoming within 60 days, the claimant shall submit his or her claim to the appropriate federal fund. If a satisfactory response is not forthcoming from the appropriate federal fund within 60 days, the claimant may submit the claim to the fund. If the administrator does not designate a responsible party, the claim shall be submitted directly to the appropriate federal fund.

(d) (1) If the federal fund completely rejects a claim, makes a partial offer, or the claimant rejects an offer, the claimant may, nevertheless, apply for reimbursement from the fund, provided that all evidence developed during the federal fund process shall be admissible during the processing of the claim. The administrator shall specifically consider any federal offer.

(2) Any federal payment shall be offset against any payment from the fund.

(3) The claimant shall assign or subrogate all rights under federal law to the fund. Any payment of claims from the fund shall require assignment or subrogation of the claimant's rights under state law to the fund.

(e) The administrator may levy finds against frivolous claims pursuant to Section 128.5 of the Code of Civil Procedure.

(f) Entities that pay into the fund shall have no standing to contest claims against the fund for claims less than one million dollars ($1,000,000). The entities may petition the administrator to have standing for claims between one million dollars ($1,000,000) and three million dollars ($3,000,000). The entities shall have standing for claims in excess of three million dollars ($3,000,000).

(g) An advisory committee comprised of entities that pay into the fund and other interested parties shall be created and the administrator shall consult with the committee on the manner in which payments are made from the fund.

(h) Claims for reimbursement from the fund shall be made within three years from the date the loss occurred.

(i) Dissatisfied claimants may sue the fund within six months of the administrator's final decision regarding a claim.

(j) The administrator shall develop and adopt regulations regarding the manner in which claims shall be required to be submitted, processed, heard, and challenged.

(k) Punitive damages shall not be paid from the fund.

History.—Stats. 1993, Ch. 1190, in effect October 11, 1993, substituted "administrator" for "director" after "may petition the" in subdivision (f); added "shall be made" after "from the fund" in subdivision (h); and added "required to be" after "claims shall be" in subdivision (j).

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