California Legislature—2015–16 Regular Session

Assembly BillNo. 815


Introduced by Assembly Member Ridley-Thomas

February 26, 2015


An act to amend Section 8670.40 of the Government Code, and to amend Section 46101 of, to add Section 46008 to, and to repeal Section 46018 of, the Revenue and Taxation Code, relating to oil spills.

LEGISLATIVE COUNSEL’S DIGEST

AB 815, as introduced, Ridley-Thomas. Oil spill prevention and response fees: collection.

(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 board’s 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.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 8670.40 of the Government Code is
2amended to read:

3

8670.40.  

(a) The State Board of Equalization shall collect a
4fee in an amount determined by the administrator to be sufficient
5to pay the reasonable regulatory costs to carry out the purposes
6set forth in subdivision (e), and a reasonable reserve for
7contingencies. The annual assessment shall not exceed six and
P3    1one-half cents ($0.065) per barrel of crude oil or petroleum
2products. The oil spill prevention and administration fee shall be
3based on each barrel of crude oil or petroleum products, as
4described in subdivision (b).

5(b) (1) The oil spill prevention and administration fee shall be
6imposed upon a person owning crude oil at the time that the crude
7oil is received at a marine terminal, by any mode of delivery that
8passed over, across, under, or through waters of the state, from
9within or outside the state, and upon a person who owns petroleum
10products at the time that those petroleum products are received at
11a marine terminal, by any mode of delivery that passed over, across,
12under, or through waters of the state, from outside this state. The
13fee shall be collected by the marine terminal operator from the
14owner of the crude oil or petroleum products for each barrel of
15crude oil or petroleum products received.

16(2) The oil spill prevention and administration fee shall be
17imposed upon a person owning crude oil or petroleum products at
18the time that the crude oil or petroleum products are received at a
19refinery within the state by any mode of delivery that passed over,
20across, under, or through waters of the state, whether from within
21or outside the state. The refinery shall collect the fee from the
22owner of the crude oil or petroleum products for each barrel
23received.

24(3) (A) There is a rebuttable presumption that crude oil or
25petroleum products received at a marine terminal or a refinery
26have passed over, across, under, or through waters of the state.
27This presumption may be overcome by a marine terminal operator,
28refinery operator, or owner of the crude oil or petroleum products
29by showing that the crude oil or petroleum products did not pass
30over, across, under, or through waters of the state. Evidence to
31rebut the presumption may include, but shall not be limited to,
32documentation, including shipping documents, bills of lading,
33highway maps, rail maps, transportation maps, related
34transportation receipts, or another mediumbegin insert,end insert that shows the crude
35oil or petroleum products did not pass over, across, under, or
36through waters of the state.

37(B) Notwithstanding the petition for redetermination and claim
38for refund provisions of the Oil Spill Response, Prevention, and
39Administration Fees Law (Part 24 (commencing with Section
P4    146001) of Division 2 of the Revenue and Taxation Code), the State
2Board of Equalization shall not do either of the following:

3(i) Accept or consider a petition for redetermination of fees
4determined pursuant to this section if the petition is founded upon
5the grounds that the crude oil or petroleum products did or did not
6pass over, across, under, or through waters of the state.

7(ii) Accept or consider a claim for a refund of fees paid pursuant
8to this section if the claim is founded upon the grounds that the
9crude oil or petroleum products did or did not pass over, across,
10under, or through waters of the state.

11(C) The State Board of Equalization shall forward to the
12administrator an appeal of a redetermination or a claim for a refund
13of fees that is based on the grounds that the crude oil or petroleum
14products did or did not pass over, across, under, or through waters
15of the state.

16(4) The fees shall be remitted to the State Board of Equalization
17bybegin delete the owner of the crude oil or petroleum products,end delete the refinery
18begin delete operator,end deletebegin insert operatorend insert or the marine terminal operator on the 25th day
19of the month based upon the number of barrels of crude oil or
20petroleum products received at a refinery or marine terminal during
21the preceding month. A fee shall not be imposed pursuant to this
22section with respect to crude oil or petroleum products if the person
23who would be liable for that fee, or responsible for its collection,
24establishes that the fee has already been collected by a refinery or
25marine terminal operator registered under this chapter or paid to
26the State Board of Equalization with respect to the crude oil or
27petroleum product.

28(5) The oil spill prevention and administration fee shall not be
29collected by a marine terminal operator or refinery operator or
30imposed on the owner of crude oil or petroleum products if the fee
31has been previously collected or paid on the crude oil or petroleum
32products at another marine terminal or refinery.begin delete It shall be the
33obligation of the marine terminal operator, refinery operator, or
34owner of crude oil or petroleum products to demonstrate that the
35fee has already been paid on the same crude oil or petroleum
36products.end delete
begin insert A marine terminal operator or a refinery operator
37receiving petroleum products derived from crude oil refined in the
38state may presume the fee has been previously collected.end insert

39(6) An owner of crude oil or petroleum products is liable for
40the fee until it has been paid to the State Board of Equalization,
P5    1except that payment to a refinery operator or marine terminal
2operator registered under this chapter is sufficient to relieve the
3owner from further liability for the fee.

4(7) On or before January 20, the administrator shall annually
5prepare a plan that projects revenues and expenses over three fiscal
6years, including the current year. Based on the plan, the
7administrator shall set the fee so that projected revenues, including
8any interest and inflation, are equivalent to expenses as reflected
9in the current Budget Act and in the proposed budget submitted
10by the Governor. In setting the fee, the administrator may allow
11for a surplus if the administrator finds that revenues will be
12exhausted during the period covered by the plan or that the surplus
13is necessary to cover possible contingencies. The administrator
14shall notify the State Board of Equalization of the adjusted fee
15rate, which shall be rounded to no more than four decimal places,
16to be effective the first day of the month beginning not less than
1730 days from the date of the notification.

18(c) The moneys collected pursuant to subdivision (a) shall be
19deposited into the fund.

20(d) The State Board of Equalization shall collect the fee and
21adopt regulations for implementing the fee collection program.

22(e) The fee described in this section shall be collected solely
23for all of the following purposes:

24(1) To implement oil spill prevention programs through rules,
25regulations, leasing policies, guidelines, and inspections and to
26implement research into prevention and control technology.

27(2) To carry out studies that may lead to improved oil spill
28prevention and response.

29(3) To finance environmental and economic studies relating to
30the effects of oil spills.

31(4) To implement, install, and maintain emergency programs,
32equipment, and facilities to respond to, contain, and clean up oil
33spills and to ensure that those operations will be carried out as
34intended.

35(5) To reimburse the State Board of Equalization for its
36reasonable costs incurred to implement this chapter and to carry
37out Part 24 (commencing with Section 46001) of Division 2 of the
38Revenue and Taxation Code.

39(6) To fund the Oiled Wildlife Care Network pursuant to Section
408670.40.5.

P6    1(f) The moneys deposited in the fund shall not be used for
2responding to a spill.

3(g) The moneys deposited in the fund shall not be used to
4provide a loan to any other fund.

begin delete

5(h) Every person who operates a refinery, a marine terminal in
6waters of the state, or a pipeline shall register with the State Board
7of Equalization, pursuant to Section 46101 of the Revenue and
8Taxation Code.

end delete
begin delete

9(i)

end delete

10begin insert(h)end insert The amendments to this section enacted inbegin delete Senate Bill 861
11of the 2013-14 Regular Sessionend delete
begin insert Section 37 of Chapter 35 of the
12Statutes of 2014end insert
shall become operativebegin delete 90 days after the effective
13date of Senate Bill 861 of 2013-14 Regular Sessionend delete
begin insert September
1418, 2014end insert
.

15

SEC. 2.  

Section 46008 is added to the Revenue and Taxation
16Code
, to read:

17

46008.  

“Barrel” means 42 gallons of crude oil or petroleum
18products.

19

SEC. 3.  

Section 46018 of the Revenue and Taxation Code is
20repealed.

begin delete
21

46018.  

“Oil” means any kind of petroleum, liquid
22hydrocarbons, or petroleum products or any fraction or residues
23therefrom, including, but not limited to, crude oil, bunker fuel,
24gasoline, diesel fuel, aviation fuel, oil sludge, oil refuse, oil mixed
25with waste, and liquid distillates from unprocessed natural gas.

end delete
26

SEC. 4.  

Section 46101 of the Revenue and Taxation Code is
27amended to read:

28

46101.  

begin insert(a)end insertbegin insertend insert Every person who operates a refinery in this state,
29a marine terminal in waters of the state, or operates a pipeline to
30transport crude oilbegin insert out of the stateend insert or petroleum productsbegin delete out ofend delete
31begin insert intoend insert the state shall register with the boardbegin insert for the purposes of
32Section 8670.48 of the Government Codeend insert
.

begin insert

33(b) Every person who operates a refinery in this state or a
34marine terminal in waters of the state shall register with the board
35for the purposes of Section 8670.40 of the Government Code.

end insert
36

SEC. 5.  

It is the intent of the Legislature that the State Board
37of Equalization collect the oil spill prevention and administration
38fee imposed on crude oil or petroleum products pursuant to Section
398670.40 of the Government Code only upon first delivery to a
40refinery or marine terminal, as described in subdivision (b) of
P7    1Section 8670.40 of the Government Code, and not upon subsequent
2movement of that same crude oil or petroleum products derived
3after that first delivery.



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