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Oil Spill Response, Prevention, and Administration Fees Law
Government Code
Title 2. Government of the State of California
Division 1. General
Chapter 7.4. Oil Spill Response and Contingency Planning
Article 6. The Oil Spill Prevention and Administration Fund
Section 8670.40
Text of Section Operative January 1, 2012 Through September 17, 2014
8670.40. Oil spill prevention and administration fee. (a) The State Board of Equalization shall collect a fee in an amount determined by the administrator to be sufficient to carry out the purposes set forth in subdivision (e), and a reasonable reserve for contingencies. The annual assessment shall not exceed six and one-half cents ($0.065) per barrel of crude oil or petroleum products. Beginning January 1, 2015, the annual assessment shall not exceed five cents ($0.05) per barrel of crude oil or petroleum products.
(b) (1) The oil spill prevention and administration fee shall be imposed upon a person owning crude oil at the time that crude oil is received at a marine terminal from within or outside the state, and upon a person who owns petroleum products at the time that those petroleum products are received at a marine terminal from outside this state. The fee shall be collected by the marine terminal operator from the owner of the crude oil or petroleum products based on each barrel of crude oil or petroleum products so received by means of a vessel operating in, through, or across the marine waters of the state. In addition, an operator of a pipeline shall pay the oil spill prevention and administration fee for each barrel of crude oil originating from a production facility in marine waters and transported in the state by means of a pipeline operating across, under, or through the marine waters of the state. The fees shall be remitted to the board by the terminal or pipeline operator on the 25th day of the month based upon the number of barrels of crude oil or petroleum products received at a marine terminal or transported by pipeline during the preceding month. A fee shall not be imposed pursuant to this section with respect to crude oil or petroleum products if the person who would be liable for that fee, or responsible for its collection, establishes that the fee has been collected by a terminal operator registered under this chapter or paid to the board with respect to the crude oil or petroleum product.
(2) An owner of crude oil or petroleum products is liable for the fee until it has been paid to the board, except that payment to a marine terminal operator registered under this chapter is sufficient to relieve the owner from further liability for the fee.
(3) On or before January 20, the administrator shall annually prepare a plan that projects revenues and expenses over three fiscal years, including the current year. Based on the plan, the administrator shall set the fee so that projected revenues, including any interest, are equivalent to expenses as reflected in the current Budget Act and in the proposed budget submitted by the Governor. In setting the fee, the administrator may allow for a surplus if the administrator finds that revenues will be exhausted during the period covered by the plan or that the surplus is necessary to cover possible contingencies. The administrator shall notify the board of the adjusted fee rate, which shall be rounded to no more than four decimal places, to be effective the first day of the month beginning not less than 30 days from the date of the notification.
(c) The moneys collected pursuant to subdivision (a) shall be deposited into the fund.
(d) The board shall collect the fee and adopt regulations for implementing the fee collection program.
(e) The fee described in this section shall be collected solely for all of the following purposes:
(1) To implement oil spill prevention programs through rules, regulations, leasing policies, guidelines, and inspections and to implement research into prevention and control technology.
(2) To carry out studies that may lead to improved oil spill prevention and response.
(3) To finance environmental and economic studies relating to the effects of oil spills.
(4) To implement, install, and maintain emergency programs, equipment, and facilities to respond to, contain, and clean up oil spills and to ensure that those operations will be carried out as intended.
(5) To respond to an imminent threat of a spill in accordance with the provisions of Section 8670.62 pertaining to threatened discharges. The cumulative amount of an expenditure for this purpose shall not exceed the amount of one hundred thousand dollars ($100,000) in a fiscal year unless the administrator receives the approval of the Director of Finance and notification is given to the Joint Legislative Budget Committee. Commencing with the 1993–94 fiscal year, and each fiscal year thereafter, it is the intent of the Legislature that the annual Budget Act contain an appropriation of one hundred thousand dollars ($100,000) from the fund for the purpose of allowing the administrator to respond to threatened oil spills.
(6) To reimburse the board for costs incurred to implement this chapter and to carry out Part 24 (commencing with Section 46001) of Division 2 of the Revenue and Taxation Code.
(7) To cover costs incurred by the Oiled Wildlife Care Network established by Section 8670.37.5 for training and field collection, and search and rescue activities, pursuant to subdivision (g) of Section 8670.37.5.
(f) The moneys deposited in the fund shall not be used for responding to an oil spill.
(g) The moneys deposited in the fund shall not be used to provide a loan to any other fund.
(h) This section shall become operative on January 1, 2012.
History—Added by Stats. 2011, Ch. 133 (AB 120), in effect July 26, 2011, but operative January 1, 2012. Stats. 2011, Ch. 583 (AB 1112), in effect January 1, 2012, substituted "shall" for "may" after "The annual assessment" in, substituted "six and one-half cents ($0.065)" for "five cents ($0.05)" in, and added the third sentence to, subdivision (a); added the fourth sentence to subdivision (b)(3); deleted former paragraph (7) of subdivision (e) which read "(7) To reimburse the costs incurred by the State Lands Commission in implementing the Oil Transfer and Transportation Emission and Risk Reduction Act of 2002 (Division 7.9 (commencing with Section 8780) of the Public Resources Code)."; renumbered former paragraph "(8)" as "(7)" in subdivision (e); added subdivision (g); and relettered former subdivision "(g)" as "(h)". Stats. 2014, Ch. 35 (SB 861), superseded on September 18, 2014, text of section operative through September 17, 2014.
Text of Section Operative September 18, 2014 Through July 21, 2021
8670.40. Oil spill prevention and administration fee. (a) The State Board of Equalization shall collect a fee in an amount determined by the administrator to be sufficient to 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.
History—Added by Stats. 2011, Ch. 133 (AB 120), in effect July 26, 2011, but operative January 1, 2012. Stats. 2011, Ch. 583 (AB 1112), in effect January 1, 2012, substituted "shall" for "may" after "The annual assessment" in, substituted "six and one-half cents ($0.065)" for "five cents ($0.05)" in, and added the third sentence to, subdivision (a); added the fourth sentence to subdivision (b)(3); deleted former paragraph (7) of subdivision (e) which read "(7) To reimburse the costs incurred by the State Lands Commission in implementing the Oil Transfer and Transportation Emission and Risk Reduction Act of 2002 (Division 7.9 (commencing with Section 8780) of the Public Resources Code)."; renumbered former paragraph "(8)" as "(7)" in subdivision (e); added subdivision (g); and relettered former subdivision "(g)" as "(h)". Stats. 2014, Ch. 35 (SB 861), in effect June 20, 2014, but operative September 18, 2014, added "to pay the reasonable regulatory costs" after "to be sufficient" of, deleted third sentence which read: "Beginning January 1, 2015, the annual assessment shall be not exceed five cents ($0.05) per barrel of crude oil or petroleum products." of, and added new third sentence to, subdivision (a); added "the" after "the time that" to, added twice ", by any mode of delivery that passed over, across, under, or through waters of the state," to, substituted "for" for "based on" after "petroleum products" in, replaced "so received by means of a vessel operating in, through, or across the marine waters of the state." with "received" in the second sentence of, and deleted the third sentence in, paragraph (1) of subdivision (b); added paragraphs (2) and (3) to subdivision (b); substituted "State Board of Equalization" for "board" in, added "owner of the crude oil or petroleum products, the refinery operator, or the marine" after "State Board of Equalization by the" in, deleted "or pipeline" after "marine terminal" in, added "refinery or" after "petroleum products received at a" in, deleted "or transported by pipeline" before "during the preceding month." in, added "already" after "that the fee has" in, added "refinery or marine" after "collected by a" in, and substituted "State Board of Equalization" for "board" in, paragraph (4) of subdivision (b); added paragraph (5) to subdivision (b); renumbered former paragraphs (2) and (3) as (6) and (7) in subdivision (b); substituted "State Board of Equalization" for "board" and added "refinery operator or" after "payment to a" in paragraph (6) of subdivision (b); added "and inflation" after ", including any interest" and substituted "State Board of Equalization" for "board" in paragraph (7) of subdivision (b); substituted "State Board of Equalization" for "board" in subdivision (d); deleted paragraph (5) in subdivision (e); renumbered paragraphs (6) and (7) as paragraphs (5) and (6) in subdivision (e); substituted "State Board of Equalization" for "board" and added "its reasonable" after "State Board of Equalization for" in paragraph (5) of subdivision (e); substantially revised paragraph (6) of subdivision (e), which read: "To cover costs incurred by the Oiled Wildlife Care Network established by Section 8670.37.5 for training and field collection, and search and rescue activities, pursuant to subdivision (g) of Section 8670.37.5"; substituted "a" for "an oil" after "responding to" in subdivision (f); deleted former subdivision (h), which read: "This section shall become operative on January 1, 2012."; and added new subdivisions (h) and (i). Stats. 2015, Ch. 108 (AB 815), in effect January 1, 2016, deleted "the owner of the crude oil or petroleum products," after "State Board of Equalization by" and deleted a comma after "the refinery operator" in the first sentence of paragraph (4) of subdivision (b); replaced the second sentence in paragraph (5) of subdivision (b), which read, "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." with "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."; deleted former subdivision (h), which read, "(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."; relettered subdivision (i) as (h); substituted "Section 37 of Chapter 35 of the Statutes of 2014" for "Senate Bill 861 of the 2013-14 Regular Session" after "section enacted in" and substituted "September 18, 2014" for "90 days after the effective date of Senate Bill 861 of 2013-14 Regular Session" after "shall become operative" in the new subdivision (h).
Text of Section Operative July 22, 2021
8670.40. Oil spill prevention and administration fee. (a) The California Department of Tax and Fee Administration shall collect an oil spill prevention and administration fee on crude oil, petroleum products, and renewable fuel, as described in subdivision (b), 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, in accordance with the following:
(1) Until September 30, 2021, the fee shall not exceed six and one-half cents ($0.065) per barrel of crude oil or petroleum products.
(2) Beginning October 1, 2021, the fee shall be eight and one-half cents ($0.085) per barrel of crude oil or petroleum products.
(3) Beginning January 1, 2022, the fee shall be eight and one-half cents ($0.085) per barrel of crude oil, petroleum products, or renewable fuel. The fee shall be adjusted on an annual basis pursuant to paragraph (9) of 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 within the state, 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 within the state, 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 operator shall collect the fee from the owner of the crude oil or petroleum products for each barrel received.
(3) The oil spill prevention and administration fee shall be imposed upon a person owning renewable fuel at the following times:
(A) When it is received at a marine terminal within the state, by any mode of delivery that passed over, across, under, or through waters of the state, from whether within or outside the state. The marine terminal operator shall collect the fee from the owner of the renewable fuel for each barrel of renewable fuel received.
(B) When it is 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 operator shall collect the fee from the owner of the renewable fuel for each barrel of renewable fuel received.
(C) When it is received at a renewable fuel receiving facility within the state, by any mode of delivery that passed over, across, under, or through waters of the state, from outside the state. The renewable fuel receiving facility operator shall collect the fee from the owner of the renewable fuel for each barrel of renewable fuel received.
(D) When it is shipped from a renewable fuel production facility within the state, by any mode of transport that passes over, across, under, or through waters of the state. The renewable fuel production facility operator shall collect the fee from the owner of the renewable fuel for each barrel of renewable fuel shipped.
(4) (A) There is a rebuttable presumption that crude oil, petroleum products, or renewable fuel received at a marine terminal, refinery, or renewable fuel receiving facility, or shipments of a renewable fuel from a renewable fuel production facility have passed over, across, under, or through waters of the state. This presumption may be overcome by a marine terminal operator, refinery operator, renewable fuel receiving facility operator, renewable fuel production facility operator, or owner of the crude oil, petroleum products, or renewable fuel by showing that the crude oil, petroleum products, or renewable fuel 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, petroleum products, or renewable fuel 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 California Department of Tax and Fee Administration 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, petroleum products, or renewable fuel 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, petroleum products, or renewable fuel did or did not pass over, across, under, or through waters of the state.
(C) The California Department of Tax and Fee Administration 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, petroleum products, or renewable fuel did or did not pass over, across, under, or through waters of the state.
(5) (A) The fees shall be remitted to the California Department of Tax and Fee Administration by the refinery operator, the marine terminal operator, or the renewable fuel receiving facility operator on the 25th day of the month based upon the number of barrels of crude oil, petroleum products, or renewable fuel received at a refinery, marine terminal, or renewable fuel receiving facility during the preceding month.
(B) The fees shall be remitted to the California Department of Tax and Fee Administration by the renewable fuel production facility operator on the 25th day of the month based upon the number of barrels of renewable fuel shipments from the renewable fuel production facility during the preceding month.
(6) The fee shall not be imposed pursuant to this section with respect to crude oil, petroleum products, or renewable fuel 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 operator, marine terminal operator, or the renewable fuel receiving facility operator, or renewable fuel production facility operator registered pursuant to Section 46101 of the Revenue and Taxation Code or paid to the California Department of Tax and Fee Administration.
(7) The oil spill prevention and administration fee shall not be collected by a marine terminal operator, refinery operator, renewable fuel receiving facility operator, or renewable fuel production facility operator, or imposed on the owner of crude oil, petroleum products, or renewable fuel if the fee has been previously collected or paid on the crude oil, petroleum products, or renewable fuel at another marine terminal, refinery, renewable fuel receiving facility, or renewable fuel production facility in this state. A marine terminal operator, refinery operator, or renewable fuel production facility receiving petroleum products derived from crude oil refined in the state, or receiving renewable fuel produced in the state, may presume the fee has been previously collected.
(8) An owner of crude oil, petroleum products, or renewable fuel is liable for the fee until it has been paid to the California Department of Tax and Fee Administration, except that payment to a refinery operator, marine terminal operator, renewable fuel receiving facility operator, or renewable fuel production facility operator registered pursuant to Section 46101 of the Revenue and Taxation Code is sufficient to relieve the owner from further liability for the fee.
(9) (A) 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.
(B) (i) On July 1, 2023, and every July 1 thereafter, the administrator shall adjust the fee specified in subdivision (a) annually by a percentage amount equal to the increase or decrease in the California Consumer Price Index (CCPI) issued by the Department of Industrial Relations or by a successor agency. The resulting fee shall be rounded to the nearest one-tenth of one cent ($0.001). The first adjustment shall be by the percentage increase or decrease in the CCPI from October 2021 to October 2022. Subsequent annual adjustments shall be made relative to subsequent 12-month periods. For example, for the July 1, 2024, adjustment computation, the CCPI for October 2022 will be compared with the CCPI for October 2023. The incremental change shall be added to the associated fee for that year.
(ii) By March 1 of each year, the administrator shall notify the California Department of Tax and Fee Administration of the adjusted oil spill prevention and administration fee that will be in effect beginning the next fiscal year.
(c) The moneys collected pursuant to subdivision (a) shall be deposited into the fund.
(d) The California Department of Tax and Fee Administration 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 and renewable fuel spill prevention and response.
(3) To finance environmental and economic studies relating to the effects of oil and renewable fuel spills.
(4) To implement, install, and maintain emergency programs, equipment, and facilities to respond to, contain, and clean up oil and renewable fuel spills and to ensure that those operations will be carried out as intended.
(5) To reimburse the California Department of Tax and Fee Administration 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.
History—Added by Stats. 2021, Ch. 115 (AB 148), in effect July 22, 2021.
Note.—SEC. 5. of Stats. 2015, Ch. 108 (AB 815), effective January 1, 2016, states, "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."