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(continued)
and Wildlife Service and the National Marine Fisheries Service shall
be requested to participate as ex-officio members.
(3) (A) The Legislature hereby finds and declares that since the
administrator may rely on the expertise provided by the volunteer
members of the advisory board and may be guided by their
recommendations in making decisions that relate to operation of the
network of rescue and rehabilitation stations, those members should
be entitled to the same immunity from liability that is provided
other public employees.
(B) Members of the advisory board, while performing functions
within the scope of advisory board duties, shall be entitled to the
same rights and immunities granted public employees by Article 3
(commencing with Section 820) of Chapter 1 of Part 2 of Division 3.6
of Title 1. Those rights and immunities are deemed to have attached,
and shall attach, as of the date of appointment of the member to the
advisory board.
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8670.37.51. (a) No tank vessel or vessel carrying oil as a
secondary cargo may be used to transport oil across marine waters of
the state unless the operator has obtained a certificate of financial
responsibility issued by the administrator for that vessel or for
the owner of all of the oil contained in and to be transferred to or
from that vessel.
(b) No operator of a marine terminal within the state may transfer
oil to or from a tank vessel or vessel carrying oil as a secondary
cargo unless the operator of the marine terminal has received a copy
of a certificate of financial responsibility issued by the
administrator for the operator of that vessel or for all of the oil
contained in and to be transferred to or from that vessel.
(c) No operator of a marine terminal within the state may transfer
oil to or from any vessel that is or is intended to be used for
transporting oil as cargo to or from a second vessel unless the
operator of the marine terminal has first received a copy of a
certificate of financial responsibility issued by the administrator
for the person responsible for both the first and second vessels or
all of the oil contained in both vessels, as well as all the oil to
be transferred to or from both vessels.
(d) No person may operate a marine facility unless the owner or
operator of the marine facility has first obtained a certificate of
financial responsibility from the administrator for the marine
facility.
(e) No tank vessel or vessel carrying oil as a secondary cargo may
be used to transport oil across marine waters of the state unless,
at least 24 hours prior to the transport, the administrator has
received both of the following:
(1) A copy of a certificate applicable to that vessel or to all of
the oil in that vessel at all times during transport.
(2) A copy of a written statement by the holder of the applicable
certificate authorizing its application to the vessel.

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8670.37.52. The certificate of financial responsibility shall be
conclusive evidence that the person or entity holding the certificate
is the party responsible for the specified vessel, marine facility,
or oil for purposes of determining liability pursuant to this
chapter.

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8670.37.53. (a) To receive a certificate of financial
responsibility for a tank vessel or for all of the oil contained
within such a vessel, the applicant shall demonstrate to the
satisfaction of the administrator the financial ability to pay at
least one billion dollars ($1,000,000,000) for any damages that may
arise during the term of the certificate.
(b) The administrator may establish a lower standard of financial
responsibility for small tank barges, vessels carrying oil as a
secondary cargo, and small marine fueling facilities. The standard
shall be based on the quantity of oil that can be carried or stored
and the risk of spill into marine waters. The administrator shall
not set a standard that is less than the expected costs from a
reasonable worst case oil spill into marine waters.
(c) (1) To receive a certificate of financial responsibility for
a marine facility, the applicant shall demonstrate to the
satisfaction of the administrator the financial ability to pay for
any damages that might arise during a reasonable worst case oil spill
into marine waters that results from the operations of the marine
facility. The administrator shall consider criteria including, but
not necessarily limited to, the amount of oil that could be spilled
into marine waters from the facility, the cost of cleaning up spilled
oil, the frequency of operations at the facility, and the damages
that could result from a spill.
(2) The administrator may issue a certificate for a marine
facility upon a lesser showing of financial resources for a period of
not longer than three years if the administrator finds all of the
following:
(A) The marine facility was operating on January 1, 1991.
(B) Continued operation is necessary to finance abandonment of the
marine facility.
(C) The financial resources the operator is able to demonstrate
are reasonably sufficient to cover the damages from foreseeable
spills from the facility.
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8670.37.54. (a) For the purposes of this chapter, financial
responsibility may be demonstrated by evidence of insurance, surety
bond, letter of credit, qualifications as a self-insurer, or any
combination thereof or other evidence of financial responsibility.
(b) In adopting requirements under this article, the administrator
may specify policy or other contractual terms, conditions, or
defenses which are necessary or which are unacceptable in
establishing evidence of financial responsibility, in order to
effectuate the purposes of this article.
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8670.37.55. (a) An owner or operator of more than one tank vessel,
vessel carrying oil as a secondary cargo, nontank vessel, or marine
facility shall only be required to obtain one certificate of
financial responsibility for all of those vessels and marine
facilities owned or operated.
(b) If a person holds a certificate for more than one tank vessel,
vessel carrying oil as a secondary cargo, nontank vessel, or marine
facility and a spill or spills occurs from one or more of those
vessels or marine facilities for which the owner or operator may be
liable for damages in an amount exceeding 5 percent of the financial
resources reflected by the certificate, as determined by the
administrator, the certificate shall immediately be considered
inapplicable to any vessel or marine facility not associated with the
spill. In that event, the owner or operator shall demonstrate to
the satisfaction of the administrator the amount of financial ability
required pursuant to this article, as well as the financial ability
to pay all damages that arise or have arisen from the spill or spills
which have occurred.

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8670.37.56. If the administrator determines that, because of a
spill outside of the state or some other action or potential
liability, the holder of a certificate may not have the financial
resources to pay damages for the spill or liability and have
resources remaining available to meet the requirements of this
chapter, the administrator may suspend the certificate.


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8670.37.57. No certificate of financial responsibility shall have a
term greater than two years. The administrator may issue
certificates for shorter periods where appropriate.
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8670.37.58. (a) A nontank vessel required to have a contingency
plan pursuant to this chapter shall not enter marine waters of the
state unless the nontank vessel owner or operator has provided to the
administrator evidence of financial responsibility that
demonstrates, to the administrator's satisfaction, the ability to pay
at least three hundred million dollars ($300,000,000) to cover
damages caused by a spill, and the owner or operator of the nontank
vessel has obtained a certificate of financial responsibility from
the administrator for the nontank vessel.
(b) Notwithstanding subdivision (a), the administrator may
establish a lower standard of financial responsibility for a nontank
vessel that has a carrying capacity of 6,500 barrels of oil or less,
or for a nontank vessel that is owned and operated by California or a
federal agency and has a carrying capacity of 7,500 barrels of oil
or less. The standard shall be based upon the quantity of oil that
can be carried by the nontank vessel and the risk of an oil spill
into marine waters. The administrator shall not set a standard that
is less than the expected cleanup costs and damages from an oil spill
into marine waters.
(c) The administrator may adopt regulations to implement this
section.
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8670.38. (a) The Oil Spill Prevention and Administration Fund is
hereby created in the State Treasury. The money in the fund is
available for appropriation by the Legislature and may only be used
for the purposes of this chapter, Article 3.5 (commencing with
Section 8574.1) of Chapter 7, and Division 7.8 (commencing with
Section 8750) of the Public Resources Code.
(b) For the purposes of this article, "fund" refers to the Oil
Spill Prevention and Administration Fund.
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8670.39. (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.

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8670.40. (a) The State Board of Equalization shall collect a fee in
an amount determined by the administrator to be sufficient to carry
out the purposes set forth in subdivision (e), and a reasonable
reserve for contingencies. The annual assessment may not exceed five
cents ($0.05) per barrel of crude oil or petroleum products.
(b) (1) The oil spill prevention and administration fee shall be
imposed upon every person owning crude oil at the time that the crude
oil is received at a marine terminal from within or outside the
state, and upon every person owning 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, every 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. No
fee shall be imposed pursuant to this section with respect to any
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) Every owner of crude oil or petroleum products is liable for
the fee until it has been paid to the board, except that payment to a
marine terminal operator registered under this chapter is sufficient
to relieve the owner from further liability for the fee.
(3) On or before January 20, the administrator shall annually
prepare a plan that projects revenues and expenses over three fiscal
years, including the current year. Based on the plan, the
administrator shall set the fee so that projected revenues, including
any interest, are equivalent to expenses as reflected in the current
Budget Act and in the proposed budget submitted by the Governor. In
setting the fee, the administrator may allow for a surplus if the
administrator finds that revenues will be exhausted during the period
covered by the plan or that the surplus is necessary to cover
possible contingencies.
(c) The moneys collected pursuant to subdivision (a) shall be
deposited into the fund.
(d) The board shall collect the fee and adopt regulations for
implementing the fee collection program.
(e) The fee described in this section shall be collected solely
for all of the following purposes:
(1) To implement oil spill prevention programs through rules,
regulations, leasing policies, guidelines, and inspections and to
implement research into prevention and control technology.
(2) To carry out studies that may lead to improved oil spill
prevention and response.
(3) To finance environmental and economic studies relating to the
effects of oil spills.
(4) To reimburse the member agencies of the State Interagency Oil
Spill Committee for costs arising from implementation of this
chapter, Article 3.5 (commencing with Section 8574.1) of Chapter 7,
and Division 7.8 (commencing with Section 8750) of the Public
Resources Code.
(5) To implement, install, and maintain emergency programs,
equipment, and facilities to respond to, contain, and clean up oil
spills and to ensure that those operations will be carried out as
intended.
(6) To respond to an imminent threat of a spill in accordance with
the provisions of Section 8670.62 pertaining to threatened
discharges. The cumulative amount of any expenditure for this
purpose shall not exceed the amount of one hundred thousand dollars
($100,000) in any fiscal year unless the administrator receives the
approval of the Director of Finance and notification is given to the
Joint Legislative Budget Committee. Commencing with the 1993-94
fiscal year, and each fiscal year thereafter, it is the intent of the
Legislature that the annual Budget Act contain an appropriation of
one hundred thousand dollars ($100,000) from the fund for the purpose
of allowing the administrator to respond to threatened oil spills.
(7) To reimburse the board for costs incurred to implement this
chapter and to carry out Part 24 (commencing with Section 46001) of
Division 2 of the Revenue and Taxation Code.
(8) To reimburse the costs incurred by the State Lands Commission
in implementing the Oil Transfer and Transportation Emission and Risk
Reduction Act of 2002 (Division 7.9 (commencing with Section 8780)
of the Public Resources Code).
(f) The moneys deposited in the fund shall not be used for
responding to an oil spill.

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8670.41. (a) The administrator shall charge a nontank vessel owner
or operator a reasonable fee, to be collected with each application
to obtain a certificate of financial responsibility, in an amount
that is based upon the administrator's costs in implementing this
chapter relating to nontank vessels. Before January 1, 2005, the fee
shall be two thousand five hundred dollars ($2,500), or less per
vessel.
(b) The administrator may charge a reduced fee under this section
for nontank vessels determined by the administrator to pose a reduced
risk of pollution, including, but not limited to, vessels used for
research or training and vessels that are moored permanently or
rarely move.
(c) The administrator shall deposit all revenue derived from the
fees imposed under this section in the Oil Spill Prevention and
Administration Fund established in the State Treasury under Section
8670.38.
(d) Revenue derived from the fees imposed under this section may
be spent for the purposes listed in subdivision (e) of Section
8670.40, and may not be used for responding to an oil spill.

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8670.42. The Department of Fish and Game shall contract with the
Department of Finance for the preparation of a detailed report that
shall be submitted on or before January 1, 2005, to the Governor and
the Legislature on the financial basis and programmatic effectiveness
of the state's oil spill prevention, response, and preparedness
program. This report shall include an analysis of all of the oil
spill prevention, response, and preparedness program's major
expenditures, fees and fines collected, staffing and equipment
levels, spills responded to, and other relevant issues. The report
shall recommend measures to improve the efficiency and effectiveness
of the state's oil spill prevention, response, and preparedness
program, including, but not limited to, measures to modify existing
contingency plan requirements, to improve protection of sensitive
shoreline sites, and to ensure adequate and equitable funding for the
state's oil spill prevention, response, and preparedness program.
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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.

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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.

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8670.47.5. The following moneys 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 funds borrowed pursuant to Article 7.5 (commencing with
Section 8670.53.1).
(d) Any interest earned on the moneys in the fund.
(e) Any cost recoveries from responsible parties pursuant to
Section 8670.53.
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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 every person owning 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) Every 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) Every 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) Every 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 any person or entity producing crude oil within this state who
performs no refining of crude oil into product, and who possesses or
owns no retail gasoline marketing facilities.
(d) Every 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 marine vessel to a
destination outside this state.
(e) Every 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 that the administrator determines that
either 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, or that additional money is
required to pay for the purposes specified in subdivision (k).
(2) Whenever the administrator, in consultation with the State
Board of Equalization, estimates that the amount in the fund will
reach the designated amount specified in subdivision (a) of Section
46012 of the Revenue and Taxation Code, and the money in the fund is
not required for the purposes specified in subdivision (k), the
administrator shall direct the State Board of Equalization to cease
collecting the fee. In no event shall the fee cease to be imposed 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 imposed in connection with those
borrowings remain outstanding or unpaid, unless the Treasurer has
certified to the administrator that the continued imposition of the
fee is not required for the purposes specified in paragraph (7) of
subdivision (k).
(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 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 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 imposed 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 required for the purposes specified in paragraph (7) of
subdivision (k).
(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
exceeds 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 shall authorize refunds of any money
collected in excess of the designated amount specified in subdivision
(a) of Section 46012 of the Revenue and Taxation Code, any amounts
determined by the administrator to be necessary to provide for any of
the purposes specified in paragraphs (1) to (6), inclusive, of
subdivision (k), and, 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 imposed in
connection with those borrowings remain outstanding or unpaid, any
amounts that the Treasurer has certified to the administrator as
being required for the purposes specified in paragraph (7) of
subdivision (k). 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. Nothing in this section shall 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 arrangement of financial security in the amount
specified in subdivision (b) of Section 46012 of the Revenue and
Taxation Code, as authorized by subdivision (p).
(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 imposed in connection with funds
borrowed 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.
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 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 for appropriation through the Governor's
Budget, an amount up to one million three hundred thousand dollars
($1,300,000), 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 established pursuant to Section 8670.37.5 and
for support of technology development and research related to oiled
wildlife care. Through the budget process, the Legislature shall
review and approve the appropriation. The remaining interest 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 purchase financial security, in the
designated amount specified in subdivision (b) of Section 46012 of
the Revenue and Taxation Code, which may be drawn upon immediately by
the administrator upon making the determinations required by Section
8670.49. The financial security shall be in the form described in
subdivision (a) of Section 8670.53.3.
(p) Nothing in this section limits the authority of the
administrator to raise oil spill response fees pursuant to Section
8670.48.5.

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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 the following
findings:
(1) A calamitous or unforeseen event, or series of events, has
severely depleted or exhausted, or will severely deplete or exhaust,
the fund.
(2) The Governor has requested the Treasurer to borrow the funds
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
funds for the costs of response, containment, and cleanup of oil
spills, damage assessment costs, wildlife rehabilitation, emergency
loans, and damage claims, or the Treasurer has previously borrowed
funds pursuant to the Governor's request, and the Treasurer finds
that the fee is insufficient to repay and secure existing borrowings.

(3) Failure to raise the fee in the amount proposed will result in
unmet, or unpaid, authorized expenditures.
(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) A single, 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 (e) 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.


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8670.49. (a) (1) Except to pay for the arrangement of financial
security as authorized by paragraph (5) of subdivision (k) and
subdivision (p) of Section 8670.48, 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 funds deposited in the fund as authorized by
subdivision (l) of Section 8670.48, and 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, and 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, the administrator may only expend
money from the fund if a spill has occurred and both of the
following determinations have been made:
(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) Federal oil spill funds are not available or will not be
available in an adequate period of time.
(2) 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 from federal oil spill funds.
(b) Upon making the determinations specified in paragraph (1) 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.

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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
all of the following:
(1) Respond promptly to, contain, and clean up the discharge,
provided those efforts are pursuant to the state and local oil spill
contingency plans established under this chapter, the marine response
element of the California oil spill contingency plan established
under Article 3.5 (commencing with Section 8574.1) of Chapter 7, or
those efforts are undertaken at the direction of the administrator.
(2) Meet the requirements of Section 8670.61.5, relating to
wildlife rehabilitation.
(3) Make the payments contemplated 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).

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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.


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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.

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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.
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8670.53.1. (a) At any time an oil spill into marine waters has
occurred, and the administrator determines that the costs of
responding to the spill, including costs specified in paragraphs (1),
(2), (3), (4), and (6) of subdivision (k) of Section 8670.48, are
likely to exceed (1) the amount in the Oil Spill Response Trust Fund
not previously encumbered or set aside pursuant to a determination
made by the administrator in accordance with Section 8670.49 and (2)
the responsible party's financial ability, if there is a known
responsible party, the administrator shall notify the Governor. Upon
notification, the Governor shall request that the federal government
pay the cost for response, containment, cleanup, wildlife
rehabilitation, and payment of damages. If federal funds are not
available within five days, the Governor shall make a written request
to the Treasurer to borrow and deposit in the fund the amount by
which the estimated response costs, including costs specified in
paragraphs (1), (2), (3), (4), and (6) of subdivision (k) of Section
8670.48, exceed the amount in the Oil Spill Response Trust Fund not
previously encumbered or set aside pursuant to a determination made
by the administrator in accordance with Section 8670.49.
(b) The Governor, the Controller, the Treasurer, and the
administrator shall immediately take whatever action is necessary and
appropriate to ensure that the state has the ability to borrow the
maximum additional amount necessary to carry out this chapter.
(c) The party responsible for the spill shall be liable to the
state for all money borrowed under this section, including interest
and premium, if any, and all associated fees, costs, and other
charges incurred by the state in connection with the borrowing,
whether or not all or a portion of the borrowed money has been repaid
through the oil spill response fee or by federal funds.
(d) No funds available pursuant to this article may be expended
for any activities which result in a net environmental enhancement.
It is the intent of the Legislature that borrowed funds be expended
solely for oil spill response, containment, cleanup, wildlife
rehabilitation, and damages resulting from oil spills.

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8670.53.2. Money borrowed pursuant to this article shall be
expended and repaid pursuant to Section 8670.48. So long as any
borrowings are outstanding, fees and any other moneys in the fund, to
the extent provided in the resolution of issuance, are pledged to
the repayment of the borrowings. The pledge shall constitute a first
lien and security interest, ratably with all other prior or
subsequent borrowings unless the treasurer provides in a resolution
of issuance, that any borrowing shall constitute a junior lien, which
shall immediately attach on the fees deposited in the fund, and
shall be effective, binding, and enforceable against the state and
any other person asserting rights therein without need of any
physical delivery, recordation, filing, or other action.
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8670.53.3. (a) To provide funds to pay for costs of an oil spill,
as set forth in Section 8670.48, in excess of money in the fund, the
Treasurer shall make necessary financial arrangements to obtain the
money needed to pay those costs, subject to reimbursement or
repayment from future deposits into the fund. The financial
arrangements may take the following forms, or any combination
thereof:
(1) Establishment of a line of credit, letter of credit, or other
standby arrangement with one or more financial institutions,
hereafter referred to as a "standby arrangement," that will permit
the Treasurer to have ready access to money for the purposes of this
article.
(2) Sale of bonds or notes of the state, hereafter referred to as
"bonds," to provide funds for purposes of this article, to repay any
prior drawings on a standby arrangement, or to refund or extend any
previously issued bonds.
(3) Borrowing from the Pooled Money Investment Account.
(4) Any other financial arrangement the Treasurer determines to be
appropriate and cost-effective.
(b) The Treasurer may enter into any financial arrangement
authorized in subdivision (a) at any time, or from time to time, on a
negotiated or competitive bid basis, as the Treasurer shall
determine to be advisable.
(c) (1) The Governor shall deliver a written request to the
Treasurer to obtain money pursuant to this article to pay for oil
spill costs, including costs specified in paragraphs (1), (2), (3),
(4), and (6) of subdivision (k) of Section 8670.48. The written
request shall, to the extent feasible, state both of the following:
(A) The amount of funds needed each month over the period covered
by the request.
(B) The estimated income to the fund each month from all sources
which will be available to pay or retire any debt service or other
expenses in connection with obligations issued pursuant to this
article.
(2) The Governor may submit multiple requests to the Treasurer
with respect to the same oil spill, or with respect to different oil
spills. On receipt of a written request pursuant to this section,
the Treasurer may draw on a standby arrangement, use any other
financial arrangement, or issue bonds, to provide funds not exceeding
the amounts requested.
(d) Upon receipt of a written request for funds from the
Governor, the following shall occur:
(1) The Treasurer shall convene a meeting of the Pooled Money
Investment Board, subject to subdivision (h) of Section 11125.5, to
obtain the funds through interim borrowing from the Pooled Money
Investment Account.
(2) The Treasurer shall ensure that the funds will thereafter be
available in accordance with a financing schedule mutually agreeable
between the administrator and the Treasurer.
(e) This article does not require the Treasurer to borrow more
money than can be repaid from amounts available to the fund for that
purpose. The Treasurer shall not be required to give effect to an
increase of the fees specified in Section 8670.48.5 until that
increase has actually become effective. Once effective, the
administrator shall not retract, reduce, or reject the increase
unless the Treasurer certifies to the administrator that the
retraction, reduction, or rejection will not diminish the security
for amounts borrowed under this article. The amount of borrowing
that can be repaid from amounts available to the fund for that
purpose shall be determined by the Treasurer in his or her sole
discretion, giving due consideration to factors concerning security
for, and marketability of, the bonds or other evidences of
indebtedness that the Treasurer elects to issue for purposes of
complying with this article.
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8670.53.4. (a) The entry into or issuance of any financial
arrangement or bonds pursuant to this article shall be authorized by
aresolution adopted by the Treasurer. Any financial arrangement or (continued)