AB 815: Oil spill prevention and response fees: collection.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2015-07-15
(1)The Lempert-Keene-Seastrand Oil Spill Prevention and Response Act generally requires the administrator for oil spill response, acting at the direction of the Governor, to implement activities relating to oil spill response, including emergency drills and preparedness, and oil spill containment and cleanup, and to represent the state in any coordinated response efforts with the federal government.
The act imposes an oil spill prevention and administration fee in an amount determined by the administrator to be sufficient to implement oil spill prevention activities, but not to exceed $0.065 per barrel of crude oil or petroleum products, and to be remitted to the State Board of Equalization. The act requires the oil spill prevention and administration fee to be imposed upon a person owning crude oil or petroleum products at the time that the crude oil or petroleum products are received at a marine terminal or refinery by specified modes of delivery from within or outside the state, as specified. The act prohibits the fee from being collected by a marine terminal operator or refinery operator or imposed on the owner of crude oil or petroleum products if the fee has been previously collected or paid on the crude oil or petroleum products at another marine terminal or refinery and, in that case, requires a marine terminal operator, refinery operator, or owner of crude oil or petroleum products to demonstrate that the fee has already been paid.
This bill instead would authorize a marine terminal operator or a refinery operator receiving petroleum products derived from crude oil refined in the state to presume the fee has been previously collected. The bill would also no longer require the owner of the crude oil or petroleum products to remit the fee to the board. The bill would make conforming changes.
This bill would state the intent of the Legislature that the board collect the oil spill prevention and administration fee only upon first delivery to a refinery or marine terminal and not upon the subsequent movement of that same crude oil or petroleum products following that first delivery.
(2)Existing law requires every person who operates a refinery in this state, a marine terminal in waters of the state, or a pipeline to transport crude oil or petroleum products out of the state to register with the board. Existing law defines, for the purposes of the boards administration of those provisions, certain terms, including, among others, oil.
This bill instead would require every person who operates a refinery in this state, a marine terminal in waters of the state, or a pipeline to transport crude oil out of the state or petroleum products into the state to register with the board for the purposes of the oil spill prevention and administration fee and the uniform oil spill response fee, as applicable. The bill would delete the definition of oil, and would define barrel to mean 42 gallons of crude oil or petroleum products for these purposes.
(1)The Lempert-Keene-Seastrand Oil Spill Prevention and Response Act generally requires the administrator for oil spill response, acting at the direction of the Governor, to implement activities relating to oil spill response, including emergency drills and preparedness, and oil spill containment and cleanup, and to represent the state in any coordinated response efforts with the federal government.
The act imposes an oil spill prevention and administration fee in an amount determined by the administrator to be sufficient to implement oil spill prevention activities, but not to exceed $0.065 per barrel of crude oil or petroleum products, and to be remitted to the State Board of Equalization. The act requires the oil spill prevention and administration fee to be imposed upon a person owning crude oil or petroleum products at the time that the crude oil or petroleum products are received at a marine terminal or refinery by specified modes of delivery from within or outside the state, as specified. The act prohibits the fee from being collected by a marine terminal operator or refinery operator or imposed on the owner of crude oil or petroleum products if the fee has been previously collected or paid on the crude oil or petroleum products at another marine terminal or refinery and, in that case, requires a marine terminal operator, refinery operator, or owner of crude oil or petroleum products to demonstrate that the fee has already been paid.
This bill instead would authorize a marine terminal operator or a refinery operator receiving petroleum products derived from crude oil refined in the state to presume the fee has been previously collected. The bill would also no longer require the owner of the crude oil or petroleum products to remit the fee to the board. The bill would make conforming changes.
This bill would state the intent of the Legislature that the board collect the oil spill prevention and administration fee only upon first delivery to a refinery or marine terminal and not upon the subsequent movement of that same crude oil or petroleum products following that first delivery.
(2)Existing law requires every person who operates a refinery in this state, a marine terminal in waters of the state, or a pipeline to transport crude oil or petroleum products out of the state to register with the board. Existing law defines, for the purposes of the boards administration of those provisions, certain terms, including, among others, oil.
This bill instead would require every person who operates a refinery in this state, a marine terminal in waters of the state, or a pipeline to transport crude oil out of the state or petroleum products into the state to register with the board for the purposes of the oil spill prevention and administration fee and the uniform oil spill response fee, as applicable. The bill would delete the definition of oil, and would define barrel to mean 42 gallons of crude oil or petroleum products for these purposes.
(1)The Lempert-Keene-Seastrand Oil Spill Prevention and Response Act generally requires the administrator for oil spill response, acting at the direction of the Governor, to implement activities relating to oil spill response, including emergency drills and preparedness, and oil spill containment and cleanup, and to represent the state in any coordinated response efforts with the federal government.
The act imposes an oil spill prevention and administration fee in an amount determined by the administrator to be sufficient to implement oil spill prevention activities, but not to exceed $0.065 per barrel of crude oil or petroleum products, and to be remitted to the State Board of Equalization. The act requires the oil spill prevention and administration fee to be imposed upon a person owning crude oil or petroleum products at the time that the crude oil or petroleum products are received at a marine terminal or refinery by specified modes of delivery from within or outside the state, as specified. The act prohibits the fee from being collected by a marine terminal operator or refinery operator or imposed on the owner of crude oil or petroleum products if the fee has been previously collected or paid on the crude oil or petroleum products at another marine terminal or refinery and, in that case, requires a marine terminal operator, refinery operator, or owner of crude oil or petroleum products to demonstrate that the fee has already been paid.
This bill instead would authorize a marine terminal operator or a refinery operator receiving petroleum products derived from crude oil refined in the state to presume the fee has been previously collected. The bill would also no longer require the owner of the crude oil or petroleum products to remit the fee to the board. The bill would make conforming changes.
This bill would state the intent of the Legislature that the board collect the oil spill prevention and administration fee only upon first delivery to a refinery or marine terminal and not upon subsequent movement of that same crude oil or petroleum products derived after that first delivery.
(2)Existing law requires every person who operates a refinery in this state, a marine terminal in waters of the state, or operates a pipeline to transport crude oil or petroleum products out of the state to register with the board. Existing law defines, for purposes of the boards administration of those provisions, certain terms, including, among others, oil.
This bill instead would require every person who operates a refinery in this state, a marine terminal in waters of the state, or operates a pipeline to transport crude oil out of the state or petroleum products into the state to register with the board for the purposes of the oil spill prevention and administration fee and the uniform oil spill response fee, as applicable. The bill would delete the defined term oil, and would define barrel to mean 42 gallons of crude oil or petroleum products for these purposes.
(a)The State Board of Equalization shall collect a fee in an amount determined by the administrator to be sufficient to pay the reasonable regulatory costs to carry out the purposes set forth in subdivision (e), and a reasonable reserve for contingencies. The annual assessment shall not exceed six and one-half cents ($0.065) per barrel of crude oil or petroleum products. The oil spill prevention and administration fee shall be based on each barrel of crude oil or petroleum products, as described in subdivision (b).
(b)(1)The oil spill prevention and administration fee shall be imposed upon a person owning crude oil at the time that the crude oil is received at a marine terminal, by any mode of delivery that passed over, across, under, or through waters of the state, from within or outside the state, and upon a person who owns petroleum products at the time that those petroleum products are received at a marine terminal, by any mode of delivery that passed over, across, under, or through waters of the state, from outside this state. The fee shall be collected by the marine terminal operator from the owner of the crude oil or petroleum products for each barrel of crude oil or petroleum products received.
(2)The oil spill prevention and administration fee shall be imposed upon a person owning crude oil or petroleum products at the time that the crude oil or petroleum products are received at a refinery within the state by any mode of delivery that passed over, across, under, or through waters of the state, whether from within or outside the state. The refinery shall collect the fee from the owner of the crude oil or petroleum products for each barrel received.
(3)(A)There is a rebuttable presumption that crude oil or petroleum products received at a marine terminal or a refinery have passed over, across, under, or through waters of the state. This presumption may be overcome by a marine terminal operator, refinery operator, or owner of the crude oil or petroleum products by showing that the crude oil or petroleum products did not pass over, across, under, or through waters of the state. Evidence to rebut the presumption may include, but shall not be limited to, documentation, including shipping documents, bills of lading, highway maps, rail maps, transportation maps, related transportation receipts, or another medium, that shows the crude oil or petroleum products did not pass over, across, under, or through waters of the state.
(B)Notwithstanding the petition for redetermination and claim for refund provisions of the Oil Spill Response, Prevention, and Administration Fees Law (Part 24 (commencing with Section 46001) of Division 2 of the Revenue and Taxation Code), the State Board of Equalization shall not do either of the following:
(i)Accept or consider a petition for redetermination of fees determined pursuant to this section if the petition is founded upon the grounds that the crude oil or petroleum products did or did not pass over, across, under, or through waters of the state.
(ii)Accept or consider a claim for a refund of fees paid pursuant to this section if the claim is founded upon the grounds that the crude oil or petroleum products did or did not pass over, across, under, or through waters of the state.
(C)The State Board of Equalization shall forward to the administrator an appeal of a redetermination or a claim for a refund of fees that is based on the grounds that the crude oil or petroleum products did or did not pass over, across, under, or through waters of the state.
(4)The fees shall be remitted to the State Board of Equalization by the refinery operator or the marine terminal operator on the 25th day of the month based upon the number of barrels of crude oil or petroleum products received at a refinery or marine terminal during the preceding month. A fee shall not be imposed pursuant to this section with respect to crude oil or petroleum products if the person who would be liable for that fee, or responsible for its collection, establishes that the fee has already been collected by a refinery or marine terminal operator registered under this chapter or paid to the State Board of Equalization with respect to the crude oil or petroleum product.
(5)The oil spill prevention and administration fee shall not be collected by a marine terminal operator or refinery operator or imposed on the owner of crude oil or petroleum products if the fee has been previously collected or paid on the crude oil or petroleum products at another marine terminal or refinery. A marine terminal operator or a refinery operator receiving petroleum products derived from crude oil refined in the state may presume the fee has been previously collected.
(6)An owner of crude oil or petroleum products is liable for the fee until it has been paid to the State Board of Equalization, except that payment to a refinery operator or marine terminal operator registered under this chapter is sufficient to relieve the owner from further liability for the fee.
(7)On or before January 20, the administrator shall annually prepare a plan that projects revenues and expenses over three fiscal years, including the current year. Based on the plan, the administrator shall set the fee so that projected revenues, including any interest and inflation, are equivalent to expenses as reflected in the current Budget Act and in the proposed budget submitted by the Governor. In setting the fee, the administrator may allow for a surplus if the administrator finds that revenues will be exhausted during the period covered by the plan or that the surplus is necessary to cover possible contingencies. The administrator shall notify the State Board of Equalization of the adjusted fee rate, which shall be rounded to no more than four decimal places, to be effective the first day of the month beginning not less than 30 days from the date of the notification.
(c)The moneys collected pursuant to subdivision (a) shall be deposited into the fund.
(d)The State Board of Equalization shall collect the fee and adopt regulations for implementing the fee collection program.
(e)The fee described in this section shall be collected solely for all of the following purposes:
(1)To implement oil spill prevention programs through rules, regulations, leasing policies, guidelines, and inspections and to implement research into prevention and control technology.
(2)To carry out studies that may lead to improved oil spill prevention and response.
(3)To finance environmental and economic studies relating to the effects of oil spills.
(4)To implement, install, and maintain emergency programs, equipment, and facilities to respond to, contain, and clean up oil spills and to ensure that those operations will be carried out as intended.
(5)To reimburse the State Board of Equalization for its reasonable costs incurred to implement this chapter and to carry out Part 24 (commencing with Section 46001) of Division 2 of the Revenue and Taxation Code.
(6)To fund the Oiled Wildlife Care Network pursuant to Section 8670.40.5.
(f)The moneys deposited in the fund shall not be used for responding to a spill.
(g)The moneys deposited in the fund shall not be used to provide a loan to any other fund.
(h)The amendments to this section enacted in Section 37 of Chapter 35 of the Statutes of 2014 shall become operative September 18, 2014.
SEC. 2.Section 46008 is added to the Revenue and Taxation Code, to read:46008.Barrel means 42 gallons of crude oil or petroleum products.
SEC. 3.Section 46018 of the Revenue and Taxation Code is repealed.SEC. 4.Section 46101 of the Revenue and Taxation Code is amended to read:46101.(a)Every person who operates a refinery in this state, a marine terminal in waters of the state, or operates a pipeline to transport crude oil out of the state or petroleum products into the state shall register with the board for the purposes of Section 8670.48 of the Government Code.
(b)Every person who operates a refinery in this state or a marine terminal in waters of the state shall register with the board for the purposes of Section 8670.40 of the Government Code.
SEC. 5.It is the intent of the Legislature that the State Board of Equalization collect the oil spill prevention and administration fee imposed on crude oil or petroleum products pursuant to Section 8670.40 of the Government Code only upon first delivery to a refinery or marine terminal, as described in subdivision (b) of Section 8670.40 of the Government Code, and not upon subsequent movement of that same crude oil or petroleum products derived after that first delivery.
(a)The State Board of Equalization shall collect a fee in an amount determined by the administrator to be sufficient to pay the reasonable regulatory costs to carry out the purposes set forth in subdivision (e), and a reasonable reserve for contingencies. The annual assessment shall not exceed six and one-half cents ($0.065) per barrel of crude oil or petroleum products. The oil spill prevention and administration fee shall be based on each barrel of crude oil or petroleum products, as described in subdivision (b).
(b)(1)The oil spill prevention and administration fee shall be imposed upon a person owning crude oil at the time that the crude oil is received at a marine terminal, by any mode of delivery that passed over, across, under, or through waters of the state, from within or outside the state, and upon a person who owns petroleum products at the time that those petroleum products are received at a marine terminal, by any mode of delivery that passed over, across, under, or through waters of the state, from outside this state. The fee shall be collected by the marine terminal operator from the owner of the crude oil or petroleum products for each barrel of crude oil or petroleum products received.
(2)The oil spill prevention and administration fee shall be imposed upon a person owning crude oil or petroleum products at the time that the crude oil or petroleum products are received at a refinery within the state by any mode of delivery that passed over, across, under, or through waters of the state, whether from within or outside the state. The refinery shall collect the fee from the owner of the crude oil or petroleum products for each barrel received.
(3)(A)There is a rebuttable presumption that crude oil or petroleum products received at a marine terminal or a refinery have passed over, across, under, or through waters of the state. This presumption may be overcome by a marine terminal operator, refinery operator, or owner of the crude oil or petroleum products by showing that the crude oil or petroleum products did not pass over, across, under, or through waters of the state. Evidence to rebut the presumption may include, but shall not be limited to, documentation, including shipping documents, bills of lading, highway maps, rail maps, transportation maps, related transportation receipts, or another medium, that shows the crude oil or petroleum products did not pass over, across, under, or through waters of the state.
(B)Notwithstanding the petition for redetermination and claim for refund provisions of the Oil Spill Response, Prevention, and Administration Fees Law (Part 24 (commencing with Section 46001) of Division 2 of the Revenue and Taxation Code), the State Board of Equalization shall not do either of the following:
(i)Accept or consider a petition for redetermination of fees determined pursuant to this section if the petition is founded upon the grounds that the crude oil or petroleum products did or did not pass over, across, under, or through waters of the state.
(ii)Accept or consider a claim for a refund of fees paid pursuant to this section if the claim is founded upon the grounds that the crude oil or petroleum products did or did not pass over, across, under, or through waters of the state.
(C)The State Board of Equalization shall forward to the administrator an appeal of a redetermination or a claim for a refund of fees that is based on the grounds that the crude oil or petroleum products did or did not pass over, across, under, or through waters of the state.
(4)The fees shall be remitted to the State Board of Equalization by the refinery operator or the marine terminal operator on the 25th day of the month based upon the number of barrels of crude oil or petroleum products received at a refinery or marine terminal during the preceding month. A fee shall not be imposed pursuant to this section with respect to crude oil or petroleum products if the person who would be liable for that fee, or responsible for its collection, establishes that the fee has already been collected by a refinery or marine terminal operator registered under this chapter or paid to the State Board of Equalization with respect to the crude oil or petroleum product.
(5)The oil spill prevention and administration fee shall not be collected by a marine terminal operator or refinery operator or imposed on the owner of crude oil or petroleum products if the fee has been previously collected or paid on the crude oil or petroleum products at another marine terminal or refinery. A marine terminal operator or a refinery operator receiving petroleum products derived from crude oil refined in the state may presume the fee has been previously collected.
(6)An owner of crude oil or petroleum products is liable for the fee until it has been paid to the State Board of Equalization, except that payment to a refinery operator or marine terminal operator registered under this chapter is sufficient to relieve the owner from further liability for the fee.
(7)On or before January 20, the administrator shall annually prepare a plan that projects revenues and expenses over three fiscal years, including the current year. Based on the plan, the administrator shall set the fee so that projected revenues, including any interest and inflation, are equivalent to expenses as reflected in the current Budget Act and in the proposed budget submitted by the Governor. In setting the fee, the administrator may allow for a surplus if the administrator finds that revenues will be exhausted during the period covered by the plan or that the surplus is necessary to cover possible contingencies. The administrator shall notify the State Board of Equalization of the adjusted fee rate, which shall be rounded to no more than four decimal places, to be effective the first day of the month beginning not less than 30 days from the date of the notification.
(c)The moneys collected pursuant to subdivision (a) shall be deposited into the fund.
(d)The State Board of Equalization shall collect the fee and adopt regulations for implementing the fee collection program.
(e)The fee described in this section shall be collected solely for all of the following purposes:
(1)To implement oil spill prevention programs through rules, regulations, leasing policies, guidelines, and inspections and to implement research into prevention and control technology.
(2)To carry out studies that may lead to improved oil spill prevention and response.
(3)To finance environmental and economic studies relating to the effects of oil spills.
(4)To implement, install, and maintain emergency programs, equipment, and facilities to respond to, contain, and clean up oil spills and to ensure that those operations will be carried out as intended.
(5)To reimburse the State Board of Equalization for its reasonable costs incurred to implement this chapter and to carry out Part 24 (commencing with Section 46001) of Division 2 of the Revenue and Taxation Code.
(6)To fund the Oiled Wildlife Care Network pursuant to Section 8670.40.5.
(f)The moneys deposited in the fund shall not be used for responding to a spill.
(g)The moneys deposited in the fund shall not be used to provide a loan to any other fund.
(h)The amendments to this section enacted in Section 37 of Chapter 35 of the Statutes of 2014 shall become operative September 18, 2014.
SEC. 2.Section 46008 is added to the Revenue and Taxation Code, to read:46008.Barrel means 42 gallons of crude oil or petroleum products.
SEC. 3.Section 46018 of the Revenue and Taxation Code is repealed.SEC. 4.Section 46101 of the Revenue and Taxation Code is amended to read:46101.(a)Every person who operates a refinery in this state, a marine terminal in waters of the state, or operates a pipeline to transport crude oil out of the state or petroleum products into the state shall register with the board for the purposes of Section 8670.48 of the Government Code.
(b)Every person who operates a refinery in this state or a marine terminal in waters of the state shall register with the board for the purposes of Section 8670.40 of the Government Code.
SEC. 5.It is the intent of the Legislature that the State Board of Equalization collect the oil spill prevention and administration fee imposed on crude oil or petroleum products pursuant to Section 8670.40 of the Government Code only upon first delivery to a refinery or marine terminal, as described in subdivision (b) of Section 8670.40 of the Government Code, and not upon subsequent movement of that same crude oil or petroleum products derived after that first delivery.
(a)The State Board of Equalization shall collect a fee in an amount determined by the administrator to be sufficient to pay the reasonable regulatory costs to carry out the purposes set forth in subdivision (e), and a reasonable reserve for contingencies. The annual assessment shall not exceed six and one-half cents ($0.065) per barrel of crude oil or petroleum products. The oil spill prevention and administration fee shall be based on each barrel of crude oil or petroleum products, as described in subdivision (b).
(b)(1)The oil spill prevention and administration fee shall be imposed upon a person owning crude oil at the time that the crude oil is received at a marine terminal, by any mode of delivery that passed over, across, under, or through waters of the state, from within or outside the state, and upon a person who owns petroleum products at the time that those petroleum products are received at a marine terminal, by any mode of delivery that passed over, across, under, or through waters of the state, from outside this state. The fee shall be collected by the marine terminal operator from the owner of the crude oil or petroleum products for each barrel of crude oil or petroleum products received.
(2)The oil spill prevention and administration fee shall be imposed upon a person owning crude oil or petroleum products at the time that the crude oil or petroleum products are received at a refinery within the state by any mode of delivery that passed over, across, under, or through waters of the state, whether from within or outside the state. The refinery shall collect the fee from the owner of the crude oil or petroleum products for each barrel received.
(3)(A)There is a rebuttable presumption that crude oil or petroleum products received at a marine terminal or a refinery have passed over, across, under, or through waters of the state. This presumption may be overcome by a marine terminal operator, refinery operator, or owner of the crude oil or petroleum products by showing that the crude oil or petroleum products did not pass over, across, under, or through waters of the state. Evidence to rebut the presumption may include, but shall not be limited to, documentation, including shipping documents, bills of lading, highway maps, rail maps, transportation maps, related transportation receipts, or another medium, that shows the crude oil or petroleum products did not pass over, across, under, or through waters of the state.
(B)Notwithstanding the petition for redetermination and claim for refund provisions of the Oil Spill Response, Prevention, and Administration Fees Law (Part 24 (commencing with Section 46001) of Division 2 of the Revenue and Taxation Code), the State Board of Equalization shall not do either of the following:
(i)Accept or consider a petition for redetermination of fees determined pursuant to this section if the petition is founded upon the grounds that the crude oil or petroleum products did or did not pass over, across, under, or through waters of the state.
(ii)Accept or consider a claim for a refund of fees paid pursuant to this section if the claim is founded upon the grounds that the crude oil or petroleum products did or did not pass over, across, under, or through waters of the state.
(C)The State Board of Equalization shall forward to the administrator an appeal of a redetermination or a claim for a refund of fees that is based on the grounds that the crude oil or petroleum products did or did not pass over, across, under, or through waters of the state.
(4)The fees shall be remitted to the State Board of Equalization by the owner of the crude oil or petroleum products, the refinery operator, operator or the marine terminal operator on the 25th day of the month based upon the number of barrels of crude oil or petroleum products received at a refinery or marine terminal during the preceding month. A fee shall not be imposed pursuant to this section with respect to crude oil or petroleum products if the person who would be liable for that fee, or responsible for its collection, establishes that the fee has already been collected by a refinery or marine terminal operator registered under this chapter or paid to the State Board of Equalization with respect to the crude oil or petroleum product.
(5)The oil spill prevention and administration fee shall not be collected by a marine terminal operator or refinery operator or imposed on the owner of crude oil or petroleum products if the fee has been previously collected or paid on the crude oil or petroleum products at another marine terminal or refinery. It shall be the obligation of the marine terminal operator, refinery operator, or owner of crude oil or petroleum products to demonstrate that the fee has already been paid on the same crude oil or petroleum products. A marine terminal operator or a refinery operator receiving petroleum products derived from crude oil refined in the state may presume the fee has been previously collected.
(6)An owner of crude oil or petroleum products is liable for the fee until it has been paid to the State Board of Equalization, except that payment to a refinery operator or marine terminal operator registered under this chapter is sufficient to relieve the owner from further liability for the fee.
(7)On or before January 20, the administrator shall annually prepare a plan that projects revenues and expenses over three fiscal years, including the current year. Based on the plan, the administrator shall set the fee so that projected revenues, including any interest and inflation, are equivalent to expenses as reflected in the current Budget Act and in the proposed budget submitted by the Governor. In setting the fee, the administrator may allow for a surplus if the administrator finds that revenues will be exhausted during the period covered by the plan or that the surplus is necessary to cover possible contingencies. The administrator shall notify the State Board of Equalization of the adjusted fee rate, which shall be rounded to no more than four decimal places, to be effective the first day of the month beginning not less than 30 days from the date of the notification.
(c)The moneys collected pursuant to subdivision (a) shall be deposited into the fund.
(d)The State Board of Equalization shall collect the fee and adopt regulations for implementing the fee collection program.
(e)The fee described in this section shall be collected solely for all of the following purposes:
(1)To implement oil spill prevention programs through rules, regulations, leasing policies, guidelines, and inspections and to implement research into prevention and control technology.
(2)To carry out studies that may lead to improved oil spill prevention and response.
(3)To finance environmental and economic studies relating to the effects of oil spills.
(4)To implement, install, and maintain emergency programs, equipment, and facilities to respond to, contain, and clean up oil spills and to ensure that those operations will be carried out as intended.
(5)To reimburse the State Board of Equalization for its reasonable costs incurred to implement this chapter and to carry out Part 24 (commencing with Section 46001) of Division 2 of the Revenue and Taxation Code.
(6)To fund the Oiled Wildlife Care Network pursuant to Section 8670.40.5.
(f)The moneys deposited in the fund shall not be used for responding to a spill.
(g)The moneys deposited in the fund shall not be used to provide a loan to any other fund.
(h)Every person who operates a refinery, a marine terminal in waters of the state, or a pipeline shall register with the State Board of Equalization, pursuant to Section 46101 of the Revenue and Taxation Code.
(i)
(h)The amendments to this section enacted in Senate Bill 861 of the 201314 Regular Session Section 37 of Chapter 35 of the Statutes of 2014 shall become operative 90 days after the effective date of Senate Bill 861 of 201314 Regular Session September 18, 2014.
SEC. 2.Section 46008 is added to the Revenue and Taxation Code, to read:46008.Barrel means 42 gallons of crude oil or petroleum products.
SEC. 3.Section 46018 of the Revenue and Taxation Code is repealed.46018.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.
SEC. 4.Section 46101 of the Revenue and Taxation Code is amended to read:46101.(a)Every person who operates a refinery in this state, a marine terminal in waters of the state, or operates a pipeline to transport crude oil out of the state or petroleum products out of into the state shall register with the board for the purposes of Section 8670.48 of the Government Code.
(b)Every person who operates a refinery in this state or a marine terminal in waters of the state shall register with the board for the purposes of Section 8670.40 of the Government Code.
SEC. 5.It is the intent of the Legislature that the State Board of Equalization collect the oil spill prevention and administration fee imposed on crude oil or petroleum products pursuant to Section 8670.40 of the Government Code only upon first delivery to a refinery or marine terminal, as described in subdivision (b) of Section 8670.40 of the Government Code, and not upon subsequent movement of that same crude oil or petroleum products derived after that first delivery.
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Date
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Status
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| Jun 9, 2015 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (June 9). Re-referred to Com. on APPR. |
| Jul 15, 2015 | Chaptered by Secretary of State - Chapter 108, Statutes of 2015. |
| Jul 15, 2015 | Approved by the Governor. |
| Jul 9, 2015 | Enrolled and presented to the Governor at 2 p.m. |
| Jul 2, 2015 | Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 0. Page 1756.). |
| Jul 2, 2015 | Read third time. Passed. Ordered to the Assembly. |
| Jul 2, 2015 | In Assembly. Ordered to Engrossing and Enrolling. |
| Jun 30, 2015 | Read second time. Ordered to Consent Calendar. |
| Jun 29, 2015 | From committee: Be placed on second reading file pursuant to Senate Rule 28.8 and ordered to consent calendar. |
| Jun 18, 2015 | In committee: Hearing postponed by committee. |
| Feb 26, 2015 | Read first time. To print. |
| May 14, 2015 | Referred to Com. on N.R. & W. |
| Apr 30, 2015 | Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 1225.) |
| Apr 30, 2015 | Read third time. Passed. Ordered to the Senate. |
| Apr 30, 2015 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Apr 23, 2015 | Read second time. Ordered to Consent Calendar. |
| Apr 22, 2015 | From committee: Do pass. To Consent Calendar. (Ayes 17. Noes 0.) (April 22). |
| Apr 14, 2015 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (April 13). Re-referred to Com. on APPR. |
| Mar 12, 2015 | Referred to Com. on NAT. RES. |
| Feb 27, 2015 | From printer. May be heard in committee March 29. |
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Date
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Description
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Location
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Votes
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| Jul 2, 2015 | Consent Calendar 2nd AB815 Ridley-Thomas | Senate Floor |
Passed |
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| Jun 9, 2015 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Natural Resources and Water |
Passed |
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| Apr 30, 2015 | AB 815 RIDLEY-THOMAS Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
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| Apr 22, 2015 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
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| Apr 13, 2015 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Natural Resources |
Passed |
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Positions by individuals are not included.
AB 815
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Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 |
CONSENT
Bill No: AB 815
Introduced: 2/26/15
SENATE NATURAL RES. & WATER COMMITTEE: 9-0, 6/9/15
AYES: Pavley, Stone, Allen, Hertzberg, Hueso, Jackson, Monning, Vidak, Wolk
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 77-0, 4/30/15 (Consent) - See last page for vote
SUBJECT: Oil spill prevention and response fees: collection
SOURCE: State Board of Equalization
DIGEST: This bill makes clarifying and technical corrections to statutes concerning the Oil Spill Prevention and Administration Fund necessary due to the chaptering of last year’s Resources budget trailer bill.
Existing law:
Establishes the Lempert-Keene-Seastrand Oil Spill Prevention and Response Act (Act) (SB 2040, Chapter 1248, Statutes of 1990) (Government Code (GOV) §§8670.1 et seq., and others). The Act created the Office of Spill Prevention and Response (OSPR) in the Department of Fish and Wildlife.
Establishes the Oil Spill Prevention and Administration Fund (OSPAF) which finances oil spill prevention and planning programs and certain other items.
Provides for the OSPAF per barrel fee (set at 6.5¢) to be assessed upon receipt of crude oil and petroleum products at refineries, marine terminals or from offshore oil production facilities. The owner of the crude oil or petroleum products is response for the fee which is paid to the State Board of Equalization (BOE).
Provides for the OSPAF fee to be collected once only (GOV §8670.40(b)(5)) in order to address, for example, the situation where a barrel of crude oil refined into petroleum products is exported via a marine terminal. In this instance, the barrel would pass through two fee collection points but should be assessed only once.
This bill makes clarifying and technical changes to OSPAF fee collection necessary following the passage of the Fiscal Year 2014/2015 resources budget trailer bill (SB 861, Committee on Budget and Fiscal Review, Chapter 35, Statutes of 2014) last year. Specifically, this bill:
Authorizes a marine terminal or refinery operator receiving petroleum products derived from crude oil refined in the state to presume the fee has already been collected.
States legislative intent that the BOE collect the OSPAF fee only upon first delivery to a refinery or a marine terminal.
Deletes the requirement that the owner of crude oil/petroleum products remit the fee directly to the BOE.
Makes additional clarifying and technical changes.
Background
OSPR’s mission. OSPR’s mission is to provide the best achievable protection of California's natural resources and the public health and safety by preventing, preparing for, and responding to spills of oil and other deleterious materials; and to restore and enhance affected resources.
This is clean-up legislation that clarifies OSPAF fee collection. Prior to the passage of the resources budget trailer bill last year, OSPAF was primarily funded by a per barrel fee of 6.5¢ assessed on each barrel of crude oil or petroleum products received at marine oil terminals or from offshore production facilities. The resources budget trailer bill substantially revised the Act to address, in part, the potential growth of crude oil transport into and in California by rail. The OSPAF fee is now assessed upon receipt of crude oil and petroleum products at refineries too. Clarifying changes to, for example, make clear that the refinery operator or the marine terminal owner who collects the fee from the owner can remit them to the BOE, not the owner of the crude oil/petroleum products, are necessary.
The Act and its fees implicitly depend upon the existing California market. The OSPAF fees are collected upon arrival at marine terminals or at refineries. This presumes that all/most of the crude oil and petroleum products pass through either a marine terminal or refinery at least once. Crude oil produced in California, but refined elsewhere, could potentially bypass the OSPAF fee. This does not currently occur -- according to the California Energy Commission, no California crude oil has been exported from the state in 2014 or 2015, the most recent data available. Should energy policy and the California crude oil/petroleum products market change in the future, these implicit assumptions may no longer remain true. For example, there has been a recent push to change federal energy policy to lift the ban on crude oil exports (see S.1312, the Energy Supply and Distribution Act of 2015, introduced with bipartisan support last month in the U.S. Congress).
Related Legislation
SB 861 (Committee on Budget and Fiscal Review, Chapter 35, Statutes of 2014), the resources budget trailer bill, substantially amended the Act to address the growth/potential growth of crude oil transport by rail in California.
AB 2678 (Ridley-Thomas, 2014) was an earlier attempt at OSPAF fee resources budget trailer bill clean-up language. (The bill died on the Assembly Unfinished Business File with the concurrence vote pending.)
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
State Board of Equalization (source)
California Chamber of Commerce
OPPOSITION: (Verified 6/30/15)
None received
ARGUMENTS IN SUPPORT: According to the author, “While SB 861 expanded the [OSPAF] fee to crude oil and petroleum products received at the refinery, the bill also added provisions that prevent the fee from being imposed or paid twice on the same crude oil or petroleum products. However, current law is not clear that petroleum products derived from fee-paid crude oil, once refined, are not subject to the fee.”
“BOE staff believes that legislative intent language alone may be ineffective to relieve industry from the requirement to document that the [OSPAF] fee previously was paid on petroleum products derived from fee-paid crude oil. Therefore, statutory guidance is necessary to clarify the issue.”
The BOE in its support letter indicates that the benefits of the bill include “reduced confusion,” “improved method for preventing [the] double fee,” and “ease of administration.”
ASSEMBLY FLOOR: 77-0, 4/30/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Campos, Chávez, Gomez
Prepared by: Katharine Moore / N.R. & W. / (916) 651-4116
7/1/15 11:15:42
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AB 815 (Ridley-Thomas) Page 3 of 3
SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
Senator Fran Pavley, Chair
2015 - 2016 Regular
Bill No: AB 815 Hearing Date: June 9, 2015
Author: |
Ridley-Thomas |
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Version: |
February 26, 2015 Introduced |
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Urgency: |
No |
Fiscal: |
Yes |
Consultant: |
Katharine Moore |
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Subject: Oil spill prevention and response fees: collection.
BACKGROUND AND EXISTING LAW
1. In response to concern following significant oil spills, the Legislature passed the Lempert-Keene-Seastrand Oil Spill Prevention and Response Act (Act) (SB 2040, c. 1248, Statutes of 1990) (Government Code (GOV) §§8670.1 et seq., and others). The act created the Office of Spill Prevention and Response (OSPR) in the Department of Fish and Wildlife.
2. OSPR’s mission is to provide the best achievable protection (GOV §8670.3) of California's natural resources and the public health and safety by preventing, preparing for, and responding to spills of oil and other deleterious materials; and to restore and enhance affected resources.
3. The act established the Oil Spill Prevention and Administration Fund (OSPAF) which finances oil spill prevention and planning programs and the Oil Spill Response Trust Fund (OSRTF) which is used to provide the cash flow for the response to and clean-up of California’s oil spills and certain other items.
4. Prior to the passage of the Resources budget trailer bill last year (SB 861, c. 35, Statutes of 2014), OSPAF was primarily funded by a per barrel fee of 6.5¢ assessed on each barrel of crude oil or petroleum products received at marine oil terminals or from offshore production facilities. The owner of the crude oil or petroleum products is responsible for the fee. SB 861 substantially revised the act to address, in part, the potential growth of crude oil transport into and in California by rail. The OSPAF fee is now assessed upon receipt of crude oil and petroleum products at refineries too. The fee is remitted to the State Board of Equalization (BOE).
5. SB 861 provides for the OSPAF fee to be collected once only (GOV §8670.40(b)(5)) in order to address, for example, the situation where a barrel of crude oil refined into petroleum products exported via a marine terminal. In this instance, the barrel would pass through two fee collection points but should be assessed only once.
6. OSRTF is funded by an (up to) 25¢ per barrel fee on crude oil and petroleum products. This fee is assessed on the owner of the products, pipeline operators, refiners, and marine terminal operators until the fund balance reaches its statutory target of about $55 million, as specified.
PROPOSED LAW
This bill would make clarifying and technical changes to OSPAF fee collection necessary following the passage of SB 861 last year. Specifically this bill would:
• authorize a marine terminal or refinery operator receiving petroleum products derived from crude oil refined in the state to presume the fee has already been collected.
• state legislative intent that the BOE collect the OSPAF fee only upon first delivery to a refinery or a marine terminal.
• delete the requirement that the owner of crude oil/petroleum products remit the fee directly to the BOE, and
• make additional clarifying and technical changes.
ARGUMENTS IN SUPPORT
According to the author, “While SB 861 expanded the [OSPAF] fee to crude oil and petroleum products received at the refinery, the bill also added provisions that prevent the fee from being imposed or paid twice on the same crude oil or petroleum products. However, current law is not clear that petroleum products derived from fee-paid crude oil, once refined, are not subject to the fee.”
“BOE staff believes that legislative intent language alone may be ineffective to relieve industry from the requirement to document that the [OSPAF] fee previously was paid on petroleum products derived from fee-paid crude oil. Therefore, statutory guidance is necessary to clarify the issue.”
The BOE in its support letter indicates that the benefits of the bill include “reduced confusion,” “improved method for preventing [the] double fee,” and “ease of administration.”
ARGUMENTS IN OPPOSITION
None received
COMMENTS
This is clean-up legislation that clarifies OSPAF fee collection. For example, the refinery operator or the marine terminal owner who collects the fee from the owner can remit them to the board, not the owner of the crude oil/petroleum products.
The act and its fees implicitly depend upon the existing California market. The OSPAF fees are collected upon arrival at marine terminals or at refineries. This presumes that all/most of the crude oil and petroleum products pass through either a marine terminal or refinery at least once. Crude oil produced in California, but refined elsewhere, could potentially bypass the OSPAF fee. This does not currently occur -- according to the CEC, no California crude oil has been exported from the state in 2014 or 2015, the most recent data available. Should energy policy and the California crude oil/petroleum products market change in the future, these implicit assumptions may no longer remain true. For example, there has been a recent push to change federal energy policy to lift the ban on crude oil exports (see S.1312, the Energy Supply and Distribution Act of 2015, introduced with bipartisan support last month in the U.S. Congress).
Recent related legislation
SB 861 (Committee on Budget and Fiscal Review, chapter 35, Statutes of 2014) This Resources trailer bill substantially amended the act to address the growth/potential growth of crude oil transport by rail in California.
AB 2678 (Ridley-Thomas, 2014) This bill was an earlier attempt at OSPAF fee Resources trailer bill clean-up language. (died on the Unfinished Business file on the Assembly floor with the concurrence vote pending)
SUPPORT
State Board of Equalization (sponsor)
California Chamber of Commerce
OPPOSITION
None Received
-- END --
AB 815
Page 2
Date of Hearing: April 22, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB 815
(Ridley-Thomas) – As Introduced February 26, 2015
Policy Committee: |
Natural Resources |
Vote: |
9 – 0 |
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Urgency: No State Mandated Local Program: No Reimbursable:
SUMMARY:
This bill clarifies provisions from the 2014 resources budget trailer bill relating to the expansion of the oil spill prevention fee program to avoid confusion and overpayment. Specifically, this bill:
Specifies that a marine terminal and refinery operator may presume the fee has been paid on petroleum products derived from fee-paid crude oil refined in California.
Deletes the provision that allows the owner of the crude oil or petroleum products to pay the fee directly to the Board of Equalization (BOE)
Deletes the requirement for pipeline operators to register with the BOE.
FISCAL EFFECT:
Minor, absorbable BOE administrative costs.
No anticipated impact on oil spill prevention fee revenues.
COMMENTS:
Rationale. Last year's resources budget trailer bill, SB 861, Chapter 35, Statutes of 2014, eliminated the sunset on the oil spill prevention fee, and expanded the fee base to include all crude oil entering the state. SB 861 specifically expanded the fee from only marine waters to all waters of the state and all crude oil and petroleum products received at a refinery.
SB 861 also authorized the fee revenues to be used for inland oil response and contained a provision to prevent the fee from being imposed or paid twice on the same crude or petroleum products.
However, according to BOE staff, it is not clear that petroleum products derived from fee-paid crude oil, once refined, is not subject to the fee.
This bill clarifies the intent of last year's SB 861 and makes several administrative changes to reduce confusion regarding the expansion of the fee.
Background. The Oil Spill Administrator annually sets the fee rate. The current fee rate cap is $0.065 per gallon. The Administrator is required to prepare a plan that projects revenues and expenses over three fiscal years. The fee amount is set so that the projected revenue will meet current and proposed state budget needs. The Administrator may also allow for a surplus if revenues will not be adequate to meet contingencies and shortfalls.
The refinery, marine terminal, and pipeline operators must each register with the BOE. The owner of the crude oil or petroleum products, the marine terminal operator, or the refinery operator pays the fee monthly to the BOE. If the fee has been previously collected or paid on the crude oil or petroleum products at another marine terminal or refinery, the fee will not be imposed or collected again. The marine terminal or refinery operator or the owner of the crude oil or petroleum products has the obligation to demonstrate that the fee has been previously paid on the same crude oil or petroleum product.
Fees are deposited into the Oil Spill Prevention and Administration Fund to pay for oil spill prevention programs and studies. A separate fee funds oil spill response activities.
Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081
AB 815
Page 2
Date of Hearing: April 13, 2015
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Das Williams, Chair
AB 815
(Ridley-Thomas) – As Introduced February 26, 2015
SUBJECT: Oil spill prevention and response fees: collection
SUMMARY: Clarifies who owes and pays the oil spill prevention fee (fee), excludes petroleum products derived from fee-paid crude oil, and deletes unnecessary oil pipeline operator registration requirements.
EXISTING LAW:
Pursuant to the Lempert-Keene-Seastrand Oil Spill Prevention and Response Act, requires the Administrator of the Office of Spill Prevention and Response to annually set the fee rate, which is capped at $0.065 per barrel of crude oil or petroleum product.
Requires refinery, marine terminal, and pipeline operators to register with the Board of Equalization (BOE) and requires the BOE to administer and collect the fee.
Requires the fee to be imposed upon a person owning crude oil or petroleum products at the time that the crude oil or petroleum products are received at a marine terminal or refinery by specified modes of delivery from within or outside the state.
Prohibits the fee from being collected by a marine terminal operator or refinery operator or imposed on the owner of crude oil or petroleum products if the fee has been previously collected or paid on the crude oil or petroleum products at another marine terminal or refinery and, in that case, requires a marine terminal operator, refinery operator, or owner of crude oil or petroleum products to demonstrate that the fee has already been paid.
THIS BILL:
Deletes the provision that allows the owner of the crude oil or petroleum product to pay the fee to the BOE. The refinery or marine terminal operator would still pay the fee.
Allows a marine terminal and refinery operator to presume that the fee has been imposed on petroleum products derived from fee-paid crude oil refined at a California refinery.
Clarifies that pipeline operators are not required to register for and pay the fee, but are required to register for the Oil Spill Response Fee Program.
Adds a definition of “barrel” and deletes a definition of “oil.”
FISCAL EFFECT: Unknown
COMMENTS:
Clean up. SB 861 (Committee on Budget and Fiscal Review), Chapter 35, Statutes of 2014, authorized the Oil Spill Prevention and Administration Fund to be used for inland oil spill response, eliminated the fee sunset, and expanded the fee base to include all crude oil entering the state. Since the passage of SB 861, the BOE has worked with the Department of Fish and Wildlife and affected industries to implement the expansion of the fee to include crude oil and petroleum products received at a refinery in this state. Some of the provisions of SB 861 have created confusion and fear of overpayment by feepayers. AB 815 allows marine terminal and refinery operators to presume that the fee has been imposed on petroleum products derived from fee-paid crude oil refined in California. In addition, this bill removes the registration requirements on pipeline operators because they no longer pay the fee. According to BOE these changes are clarifying in nature and will not impact fee revenues.
Prior legislation.
SB 861 authorized the Oil Spill Prevention and Administration Fund to be used for inland oil response, eliminated the fee sunset, and expanded the fee base to include all crude oil entering the state.
AB 2678 (Ridley-Thomas) stated legislative intent that the BOE only collect the fee on crude oil or petroleum products upon first delivery to a refinery or marine terminal and not upon subsequent movement of that same oil or products derived after that first delivery. AB 2678 passed off the Senate floor, but was never taken up for concurrence in the Assembly.
REGISTERED SUPPORT / OPPOSITION:
Support
Board of Equalization (Sponsor)
California Chamber of Commerce
Western States Petroleum Association
Opposition
None on file
Analysis Prepared by: Michael Jarred / NAT. RES. / (916) 319-2092
Bill Author
Bill Co-Author(s):