SECTIONS 8670.46-8670.53 - California Statutes

GOVERNMENT CODE

SECTION 8670.46-8670.53

8670.46. (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. (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. 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.

8670.48. (a) (1) A uniform oil spill response fee in an amount not
exceeding twenty-five cents ($0.25) for each barrel of petroleum
products, as set by the administrator pursuant to subdivision (f),
shall be imposed upon a person who owns petroleum products at the
time the petroleum products are received at a marine terminal within
this state by means of a vessel from a point of origin outside this
state. The fee shall be remitted to the State Board of Equalization
by the terminal operator on the 25th day of each month based upon the
number of barrels of petroleum products received during the
preceding month.
(2) An owner of petroleum products is liable for the fee until it
has been paid to the state, except that payment to a marine terminal
operator registered under this chapter is sufficient to relieve the
owner from further liability for the fee.
(b) An operator of a pipeline shall also pay a uniform oil spill
response fee in an amount not exceeding twenty-five cents ($0.25) for
each barrel of petroleum products, as set by the administrator
pursuant to subdivision (f), transported into the state by means of a
pipeline operating across, under, or through the marine waters of
the state. The fee shall be paid on the 25th day of each month based
upon the number of barrels of petroleum products so transported into
the state during the preceding month.
(c) (1) An operator of a refinery shall pay a uniform oil spill
response fee in an amount not exceeding twenty-five cents ($0.25) for
each barrel of crude oil, as set by the administrator pursuant to
subdivision (f), received at a refinery within the state. The fee
shall be paid on the 25th day of each month based upon the number of
barrels of crude oil so received during the preceding month.
(2) The fee shall not be imposed by a refiner, or a person or
entity acting as an agent for a refiner, on crude oil produced by an
independent crude oil producer as defined in paragraph (3). The board
shall not identify a company as exempt from the fee requirements of
this section if that company was reorganized, sold, or otherwise
modified with the intent of circumventing the requirements of this
section.
(3) For purposes of this chapter, "independent crude oil producer"
means a person or entity producing crude oil within this state who
does not refine crude oil into a product, and who does not possess or
own a retail gasoline marketing facility.
(d) A marine terminal operator shall pay a uniform oil spill
response fee in an amount not exceeding twenty-five cents ($0.25), in
accordance with subdivision (g), for each barrel of crude oil, as
set by the administrator pursuant to subdivision (f), that is
transported from within this state by means of a marine vessel to a
destination outside this state.
(e) An operator of a pipeline shall pay a uniform oil spill
response fee in an amount not exceeding twenty-five cents ($0.25), in
accordance with subdivision (g), for each barrel of crude oil, as
set by the administrator pursuant to subdivision (f), transported out
of the state by pipeline.
(f) (1) The fees required pursuant to this section shall be
collected during any period for which the administrator determines
that collection is necessary for any of the following reasons:
(A) The amount in the fund is less than or equal to 95 percent of
the designated amount specified in subdivision (a) of Section 46012
of the Revenue and Taxation Code.
(B) Additional money is required to pay for the purposes specified
in subdivision (k).
(C) The revenue is necessary to repay a draw on a financial
security obtained by the Treasurer pursuant to subdivision (o) or
borrowing by the Treasurer pursuant to Article 7.5 (commencing with
Section 8670.53.1) including any principal, interest, premium, fees,
charges, or costs of any kind incurred in connection with those
borrowings or financial security.
(2) The administrator, in consultation with the State Board of
Equalization, and with the approval of the Treasurer, may direct the
State Board of Equalization to cease collecting the fee when the
administrator determines that further collection of the fee is not
necessary for the purposes specified in paragraph (1).
(3) The administrator, in consultation with the State Board of
Equalization, shall set the amount of the oil spill response fees.
The oil spill response fees shall be imposed on all feepayers in the
same amount. The administrator shall not set the amount of the fee at
less than twenty-five cents ($0.25) for each barrel of petroleum
products or crude oil, unless the administrator finds that the
assessment of a lesser fee will cause the fund to reach the
designated amount specified in subdivision (a) of Section 46012 of
the Revenue and Taxation Code within four months. The fee shall not
be less than twenty-five cents ($0.25) for each barrel of petroleum
products or crude oil if the administrator has drawn upon the
financial security obtained by the Treasurer pursuant to subdivision
(o) or if the Treasurer has borrowed money pursuant to Article 7.5
(commencing with Section 8670.53.1) and principal, interest, premium,
fees, charges, or costs of any kind incurred in connection with
those borrowings remain outstanding or unpaid, unless the Treasurer
has certified to the administrator that the money in the fund is not
necessary for the purposes specified in paragraph (1).
(g) The fees imposed by subdivisions (d) and (e) shall be imposed
in any calendar year beginning the month following the month when the
total cumulative year-to-date barrels of crude oil transported
outside the state by all feepayers by means of vessel or pipeline
exceed 6 percent by volume of the total barrels of crude oil and
petroleum products subject to oil spill response fees under
subdivisions (a), (b), and (c) for the prior calendar year.
(h) For purposes of this chapter, "designated amount" means the
amounts specified in Section 46012 of the Revenue and Taxation Code.
(i) The administrator, in consultation with the State Board of
Equalization and with the approval of the Treasurer, shall authorize
refunds of any money collected that is not necessary for the purposes
specified in paragraph (1) of subdivision (f). The State Board of
Equalization, as directed by the administrator, and in accordance
with Section 46653 of the Revenue and Taxation Code, shall refund the
excess amount of fees collected to each feepayer who paid the fee to
the state, in proportion to the amount that each feepayer paid into
the fund during the preceding 12 monthly reporting periods in which
there was a fee due, including the month in which the fund exceeded
the specified amount. If the total amount of money in the fund
exceeds the amount specified in this subdivision by 10 percent or
less, refunds need not be ordered by the administrator. This section
does not require the refund of excess fees as provided in this
subdivision more frequently than once each year.
(j) The State Board of Equalization shall collect the fee and
adopt regulations implementing the fee collection program. All fees
collected pursuant to this section shall be deposited in the Oil
Spill Response Trust Fund.
(k) The fee described in this section shall be collected solely
for any of the following purposes:
(1) To provide funds to cover promptly the costs of response,
containment, and cleanup of oil spills into marine waters, including
damage assessment costs, and wildlife rehabilitation as provided in
Section 8670.61.5.
(2) To cover response and cleanup costs and other damages suffered
by the state or other persons or entities from oil spills into
marine waters, which cannot otherwise be compensated by responsible
parties or the federal government.
(3) To pay claims for damages pursuant to Section 8670.51.
(4) To pay claims for damages, except for damages described in
paragraph (7) of subdivision (h) of Section 8670.56.5, pursuant to
Section 8670.51.1.
(5) To pay for the cost of obtaining financial security in the
amount specified in subdivision (b) of Section 46012 of the Revenue
and Taxation Code, as authorized by subdivision (o).
(6) To pay indemnity and related costs and expenses as authorized
by Section 8670.56.6.
(7) To pay principal, interest, premium, if any, and fees,
charges, and costs of any kind incurred in connection with moneys
drawn by the administrator on the financial security obtained by the
Treasurer pursuant to subdivision (o) or borrowed by the Treasurer
pursuant to Article 7.5 (commencing with Section 8670.53.1).
(8) To pay for the costs of rescue, medical treatment,
rehabilitation, and disposition of oiled wildlife, as incurred by the
network of oiled wildlife rescue and rehabilitation stations created
pursuant to Section 8670.37.5.
(l) (1) The interest that the state earns on the funds deposited
into the Oil Spill Response Trust Fund shall be deposited in the fund
and shall be used to maintain the fund at the designated amount
specified in subdivision (a) of Section 46012 of the Revenue and
Taxation Code. Interest earned until July 1, 1998, on funds deposited
pursuant to subdivision (a) of Section 46012 of the Revenue and
Taxation Code, as determined jointly by the Controller and the
Director of Finance, shall be available upon appropriation by the
Legislature in the Budget Act to establish, equip, operate, and
maintain the network of rescue and rehabilitation stations for oiled
wildlife as described in Section 8670.37.5 and to support technology
development and research related to oiled wildlife care. Interest
earned on the financial security portion of the fund, required to be
accessible pursuant to subdivision (b) of Section 46012 of the
Revenue and Taxation Code shall not be available for that purpose. If
the amount in the fund exceeds that designated amount, the interest
not needed to equip, operate, and maintain the network of rescue and
rehabilitation stations, or for appropriate technology development
and research regarding oiled wildlife care, shall be deposited into
the Oil Spill Prevention and Administration Fund, and shall be
available for the purposes authorized by Article 6 (commencing with
Section 8670.38).
(2) (A) For each fiscal year, consistent with this article, the
administrator shall submit, as a proposed appropriation in the
Governor's Budget, an amount up to two million dollars ($2,000,000)
of the interest earned on the funds deposited into the Oil Spill
Response Trust Fund for the purpose of equipping, operating, and
maintaining the network of oiled wildlife rescue and rehabilitation
stations and proactive oiled wildlife search and collection rescue
efforts established pursuant to Section 8670.37.5 and for support of
technology development and research related to oiled wildlife care.
The remaining interest, if any, shall be deposited into the Oil Spill
Prevention and Administration Fund pursuant to paragraph (1).
(B) The administrator shall report to the Legislature not later
than June 30, 2002, on the progress and effectiveness of the network
of oiled wildlife rescue and rehabilitation stations established
pursuant to Section 8670.37.5, and the adequacy of the Oil Spill
Response Trust Fund to meet the purposes for which it was
established.
(C) At the administrator's request, the funds made available
pursuant to this paragraph may be directly appropriated to a suitable
program for wildlife health and rehabilitation within a school of
veterinary medicine within this state, provided that an agreement
exists, consistent with this chapter, between the administrator and
an appropriate representative of the program for carrying out that
purpose. The administrator shall attempt to have an agreement in
place at all times. The agreement shall ensure that the training of,
and the care provided by, the program staff are at levels that are
consistent with those standards generally accepted within the
veterinary profession.
(D) The funds made available pursuant to this paragraph shall not
be considered an offset to any other state funds appropriated to the
program, the program's associated school of veterinary medicine, or
the program's associated college or university, and the funds shall
not be used for any other purpose. If an offset does occur or the
funds are used for an unintended purpose, expenditure of any
appropriation of funds pursuant to this paragraph may be terminated
by the administrator and the administrator may request a
reappropriation to accomplish the intended purpose. The administrator
shall annually review and approve the proposed uses of any funds
made available pursuant to this paragraph.
(m) The Legislature finds and declares that effective response to
oil spills requires that the state have available sufficient funds in
a response fund. The Legislature further finds and declares that
maintenance of that fund is of utmost importance to the state and
that the money in the fund shall be used solely for the purposes
specified in subdivision (k).
(n) It is the intent of the Legislature, in enacting this section,
that the fee shall not be imposed by a refiner, or a person or
entity acting as an agent for a refiner, on crude oil produced by an
independent crude oil producer.
(o) The Treasurer shall obtain financial security, in the
designated amount specified in subdivision (b) of Section 46012 of
the Revenue and Taxation Code, in a form which, in the event of an
oil spill, may be drawn upon immediately by the administrator upon
making the determinations required by paragraph (2) of subdivision
(a) of Section 8670.49. The financial security may be obtained in any
of the forms described in subdivision (b) of Section 8670.53.3, as
determined by the Treasurer.
(p) This section does not limit the authority of the administrator
to raise oil spill response fees pursuant to Section 8670.48.5.

8670.48.5. (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.

8670.49. (a) (1) The administrator may only expend money from the
fund to pay for any of the following, subject to the lien established
in Section 8670.53.2:
(A) To pay the cost of obtaining financial security as authorized
by paragraph (5) of subdivision (k) and subdivision (o) of Section
8670.48.
(B) To pay the 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, or the moneys borrowed by the Treasurer, as authorized by
paragraph (7) of subdivision (k) of Section 8670.48.
(C) To pay for the construction, equipping, operation, and
maintenance of rescue and rehabilitation facilities, and technology
development for oiled wildlife care from interest earned on money
deposited in the fund as authorized by subdivision (l) of Section
8670.48.
(D) 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
pursuant to subdivision (f) of Section 8670.37.5.
(E) To pay for the expansion, in the VTS area, pursuant to Section
445 of the Harbors and Navigation Code, of the vessel traffic
service system (VTS system) authorized pursuant to subdivision (f) of
Section 8670.21.
(2) If a spill has occurred, the administrator may expend the
money in the fund for the purposes identified in paragraphs (1), (2),
(3), (4), and (6) of subdivision (k) of Section 8670.48 only upon
making the following determinations:
(A) Except as authorized by Section 8670.51.1, a responsible party
does not exist or the responsible party is unable or unwilling to
provide adequate and timely cleanup and to pay for the damages
resulting from the spill. The administrator shall make a reasonable
effort to have the party responsible remove the oil or agree to pay
for any actions resulting from the spill that may be required by law,
provided that the efforts are not detrimental to fish, plant,
animal, or bird life in the affected waters. The reasonable effort of
the administrator shall include attempting to access the responsible
parties' insurance or other proof of financial responsibility.
(B) Sufficient federal oil spill funds are not available or will
not be available in an adequate period of time.
(3) Notwithstanding any other provision of this subdivision, the
administrator may expend money from the fund for authorized
expenditures when a reimbursement procedure is in place to receive
reimbursements for those expenditures from federal oil spill funds.
(b) Upon making the determinations specified in paragraph (2) of
subdivision (a), the administrator shall immediately make whatever
payments are necessary for responding to, containing, or cleaning up,
the spill, including any wildlife rehabilitation required by law and
payment of claims pursuant to Sections 8670.51 and 8670.51.1,
subject to the lien established by Section 8670.53.2.

8670.50. (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, and 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) Meeting 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.

8670.51. (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.

8670.51.1. (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 fines 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.

8670.53. The Attorney General, in consultation with the
administrator, shall undertake actions to recover all costs to the
funds from any responsible party for an oil spill into marine waters
for which expenditures are made from the fund. The recovery of costs
pursuant to this section shall not foreclose the Attorney General
from any other actions allowed by law.