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(continued)
(q)(1) "QI" see "Qualified Individual".
(q)(2) "Qualified Individual (QI)" means a shore-based representative of a tanker, barge, nontank vessel or facility owner or operator. The QI must be fluent in English, located in the continental United States, available on a 24- hour basis, and have full written authority to implement the tanker, barge, nontank vessel or facility's contingency plan. A person stationed on a fixed, off-shore platform is considered to be shore-based for purposes of this definition. A QI is not necessarily the responsible party unless otherwise considered a responsible party as defined in this chapter. The duties of the QI shall include:
(A) activating and engaging in contracting with required oil spill response organizations;
(B) acting as liaison with, and following the orders of, the State Incident Commander and/or Federal On-Scene Coordinator through the Unified Command during all phases of spill response. This would include the ability to make changes to the plan when so ordered by the Administrator or the Federal On-Scene Coordinator;
(C) obligating, either directly or through prearranged contracts, any funds necessary to carry out all required or directed oil spill response activities detailed in the tanker, barge, nontank vessel or facility's contingency plan or specified by order of the Incident Commander and/or Federal On-Scene Coordinator.
(r)(1) "Reasonable Worst Case Oil Spill" is defined in the chapters of this subdivision where the term is used.
(r)(2) "Regional Response Team (RRT)" means the federal, interagency organization that is responsible for granting approval for the use of cleanup agents during an oil spill response. The RRT was established under the federal Oil Spill Act of 1990 and is composed of representatives of the federal agencies enumerated in 40 CFR s300.175(b), as well as state and local representatives.
(r)(3) "Remove" or "Removal" means the extraction of oil from the water and shorelines, or taking other action as necessary to minimize or mitigate oil-related damage to the environment, or to safeguard the public health or welfare.
(r)(4) "Response Area" means the area in which spill response activities are occurring. This shall include the designated routes that response vessels will transit to and from temporary storage facilities or other locations as specified by the Administrator and/or the Federal On-Scene Coordinator during the course of an oil spill incident.
(r)(5) "Response Contractor" means an individual, organization, association, or cooperative that provides or intends to provide equipment and services for oil spill containment, cleanup, and/or removal activities. Such equipment and services shall be provided under contract or other means approved by the Administrator to the owner or operator of a tanker, barge, nontank vessel or marine facility. Response contractors must have the ability to mobilize and deploy their identified resources. Persons solely warehousing or storing equipment are not response contractors.
(r)(6) "Response Resources" means all the personnel, equipment, supplies, and services necessary to perform oil spill response activities.
(r)(7) "Response Vessel" means any tanker, barge or other waterborne craft used in the course of response activities during an oil spill incident.
(r)(8) "Responsible Party (or Party Responsible)" means any of the following:
(A) the owner or transporter of oil or a person or entity accepting responsibility for the oil;
(B) the owner, operator or lessee of, or person who charters by demise, any tanker, barge, nontank vessel or marine facility;
(C) a person or entity who accepts responsibility for the tanker, barge, nontank vessel or marine facility; or
(D) the person who fulfills the role of the Qualified Individual during spill response only if that person is also one of the individuals as described in subparagraphs (A) through (C) above.
(r)(9) "Risk and Hazard Analysis" means a study in which process hazards and potential operating problems that could lead to oil spills are identified using systematic methods recommended by the American Institute of Chemical Engineers, or other means approved by the Administrator. This is the study referred to as the Hazard and Operability Study in Section 8670.28 of the Government Code.
(r)(10) "Risk Zone" means one of the areas along the California coast that has been differentiated by the relative risk of an oil spill occurring in that area. The areas so designated shall be termed: High Volume Ports;
Facility/Transfer Areas; or the Balance of the Coast; and are further defined in this chapter.
(s)(1) "Santa Barbara Channel Area" see "Facility/Transfer Area".
(s)(2) "Shifting" means to move or transfer a tanker, barge, or nontank vessel from one place or position in the harbor to another in the harbor.
(s)(3) "Short ton" means a unit of weight equal to 2,000 pounds, avoirdupois.
(s)(4) "Small Craft" means a waterborne craft, other than a tanker or barge, that is less than 65 feet, 7 1/2 inches (20 meters) in length.
(s)(5) "Small Craft Refueling Dock" means a waterside operation that dispenses only non-persistent oil in bulk and/or small amounts of persistent lubrication oil in sealed containers, primarily to small craft, and meets both of the following criteria:
(A) has tank storage capacity not exceeding 20,000 gallons in any single storage tank or tank compartment;
(B) has a total useable tank storage capacity not exceeding 75,000 gallons.
(s)(6) "Small marine fueling facility" means either of the following:
(A) a mobile transfer unit, or
(B) a fixed facility that is not a marine terminal, which dispenses primarily nonpersistent oil, and may dispense small amounts of persistent oil, primarily to small craft, and meets all of the following criteria:
(1) has tank storage capacity not exceeding 40,000 gallons in any single storage tank or storage tank compartment,
(2) has total usable tank storage capacity not exceeding 75,000 gallons,
(3) had an annual throughput volume of over-the-water transfer of oil that did not exceed 3,000,000 gallons during the most recent preceding 12-month period.
(s)(7) "Small vessel" see "Small Craft".
(s)(8) "Spill (or Discharge)" means any release of at least one barrel (42 gallons) of oil which impacts marine waters that was not authorized by a federal, state, or local governmental entity.
(s)(9) "Staff" means the Administrator or any personnel within the California Department of Fish and Game authorized to act on behalf of the Administrator.
(s)(10) "State Fiscal Year" see "Fiscal Year"
(s)(11) "State Incident Commander" see "Incident Commander".
(s)(12) "State Liaison Officer" means that person responsible for the coordination of information between the State Incident Commander/Federal On-Scene-Coordinator and other state and local government representatives. The State Liaison Officer is a function within the Incident Command System as described in the State Marine Oil Spill Contingency Plan.
(s)(13) "Static Bollard Pull" see "Bollard Pull".
(t)(1) "Tank Barge" see "Barge"
(t)(2) "Tank Vessel" means any tanker or barge that carries oil in commercial quantities as cargo.
(t)(3) "Tanker" means any self-propelled, waterborne vessel, constructed or adapted to transport oil in bulk or in commercial quantities as cargo.
(t)(4) "Terminal" see "Marine Terminal".
(t)(5) "Tractor Tug" means a tug which is propelled by blades or screws which may be manipulated or rotated to provide propulsive thrust to any part of a 360 degree arc relative to the keel or longitudinal axis of the tug.
(t)(6) "Transporting oil in bulk" see "Oil in Bulk".
(t)(7) "Tug" or "Tug Escort" see "Escort Tug".
(u) (Reserved)
(v)(1) "Vessel" means any tanker or barge as defined in this chapter.
(v)(2) "Vessel Carrying Oil as Secondary Cargo" means a tanker or barge that does not carry oil as a primary cargo, but does carry oil in bulk as cargo or cargo residue.
(v)(3) "Vessel of Opportunity" means any craft engaged in spill response activities that is otherwise normally and substantially involved in activities other than spill response.
(v)(4) "Vessel Traffic Information Service" means that service operated by the Marine Exchange in the Los Angeles/Long Beach Harbors in cooperation with the United States Coast Guard. "VTIS" is synonymous with "VTS" as used in Section 445, et seq., Harbors and Navigation Code, and Section 8670.21 of the Government Code.
(v)(5) "Vessel Traffic Service (VTS) System" means the system authorized pursuant to 33 CFR Part 161, or Government Code Section 8670.21.
(v)(6) "VTIS" means a Vessel Traffic Information Service.
(v)(7) "VTS" means Vessel Traffic Service System.
(w)(1) "Working Capital", as defined by GAAP, means current assets minus current liabilities.


Note: Authority cited: Sections 8670.7(a), 8670.13.1(a), 8670.13.2, 8670.17.2, 8670.23.1, 8670.28, 8670.32 and 8670.35, Government Code. Reference: Sections 8670.3, 8670.7(a), 8670.13(a), 8670.13.2, 8670.17.2, 8670.21, 8670.23.1, 8670.28, 8670.32 and 8670.35, Government Code.
s 790.5. Schedule of Compliance.


Note: Authority cited: Section 8670.37.54(b), Government Code. Reference: Sections 8670.37.51-8670.37.57, Government Code.

s 791. Definitions.
In addition to the definitions in Chapter 1, Section 790 of this subdivision, the following definitions shall govern the construction of this subchapter. Where similar terms are defined, the following will supersede any definition in Chapter 1:
(a) "Certificant" means an owner or operator or a person accepting responsibility for the oil who has been issued a Certificate of Financial Responsibility under this subchapter.
An owner or operator may also include any person or entity responsible for the specified tanker, barge, marine facility, nontank vessel or oil, or any authorized agent thereto as described in Sections 8670.37.52 and 8670.37.58(a) of the Government Code. It shall be a conclusive presumption that any party making an application for a Certificate of Financial Responsibility pursuant to Section 8670.37.53 of the Government Code is either an owner or operator as defined in this subchapter or is an authorized agent acting within the scope of employment, direction, and control of the owner or operator.
(b) "Large barge" for the purposes of determining financial responsibility, means a barge with a cargo capacity of 150,000 or more barrels of oil.
(c) "Nontank Vessel" means a vessel of 300 gross tons or greater, other than a tanker or barge, as those terms are defined in Chapter 1, Section 790 of this subdivision.
(d) "Proof of entry" means the documents that evidence that an owner of a tanker, barge, nontank vessel, or person named is covered for oil pollution liabilities by a Protection and Indemnity Club.
(e) "Small barge", for the purposes of determining financial responsibility, means a barge with a cargo capacity of less than 150,000 barrels of oil.
(f) "Vessel Carrying Oil as Secondary Cargo" means a tanker or barge that does not carry oil as a primary cargo, but does carry oil in bulk as cargo or cargo residue.


Note: Authority cited: Sections 8670.37.53 and 8670.37.54(b), Government Code. Reference: Sections 8670.3 and 8670.37.51-8670.37.58, Government Code.

s 791.5. Schedule of Compliance.
(a) Unless a Certificate of Financial Responsibility (hereinafter referred to as a certificate) is suspended pursuant to Section 797 of this subchapter, all certificates issued by the Administrator shall remain in effect and satisfy the requirements of this subchapter according to the terms printed on the certificate. Any applicant who does not have a valid certificate issued by the Administrator, must comply with the provisions of this subchapter. Any certificant, upon application for renewal of a Certificate of Financial Responsibility, must comply with the provisions of this subchapter.


Note: Authority cited: Section 8670.37.54(b), Government Code. Reference: Sections 8670.37.51-8670.37.58, Government Code.

s 791.7. Procedures for Application for California Certificate of Financial Responsibility.
(a) All operators or owners of marine facilities, where a spill could impact the marine waters of the state, and operators or owners of vessels or the owners of the oil contained therein, or the operators or owners of nontank vessels, shall obtain a California Certificate of Financial Responsibility (hereafter referred to as a certificate) before operating in California. The following applications shall be used to obtain a certificate:
(1) Application for Certificate of Financial Responsibility for Operators or Owners of Tank Vessels (application), referred to as FG OSPR Form 1925 (11/05);
(2) Application for Certificate of Financial Responsibility for Operators or Owners of Nontank Vessels (application), referred to as FG OSPR Form 1972 (05/06);
(3) Application for Certificate of Financial Responsibility for Marine Facilities, (application), referred to as FG OSPR Form 1924 (11/05);
(4) Application for Certificate of Financial Responsibility for Owners of Oil (application), referred to as FG OSPR Form 1947 (11/05); and
(5) Application for Certificate of Financial Responsibility for Mobile Transfer Units (application), referred to as FG OSPR Form 1946 (11/05).
(6) These forms shall collectively be referred to as applications and incorporated by reference herein.
(7) The applications shall be obtained from and, upon completion, submitted to the Office of Spill Prevention and Response (OSPR) at the following address:
Department of Fish and Game
Office of Spill Prevention and Response (OSPR)
P.O. Box 944209
Sacramento, CA 94244-2090
(b) Any facility owner/operator may request exemption from the requirement to obtain a certificate on the basis that a spill from the facility could not reasonably be expected to impact marine waters.
(1) Such request must be submitted to the Administrator and must provide specific, technical justification for the request.
(2) Prior to granting or denying the request, the Administrator may inspect the facility to determine if a spill from the facility could potentially impact marine waters.
(3) Within forty-five (45) business days of receipt of a request for exemption, the Administrator shall inform the facility owner/operator in writing if the justification is complete and the exemption is granted, or that it is deficient and what specific information or documentation is required.
(4) If the exemption request is deemed deficient:
(A) within fifteen (15) business days of receipt of the notice of deficiency, the facility owner/operator must submit the required information or documentation to the Administrator.
(B) within twenty-one (21) business days of receipt of this information, the Administrator shall notify the facility owner/operator if the exemption has been granted or denied.
(5) If the request for exemption is denied, the facility owner/operator must submit an application for a certificate within ten (10) business days of the date the notice of denial is received by the owner/operator, unless a request for reconsideration is submitted pursuant to Section 791.7(g).
(c) General Application Procedures.
(1) All applications and supporting documents shall be prepared in English and all monetary terms shall be in U.S. currency.
(2) All spaces on the application shall be completed with either the requested information or the phrase "Not applicable".
(3) All applications shall be signed by the applicant or authorized representative of the applicant, whose title shall be indicated in the space provided on the application.
(4) All applications shall be accompanied by a written delegation of authority to submit the application on behalf of the applicant where the person signing the application is an individual other than the individual applicant in the case of a sole proprietorship, a partner in the case of a partnership applicant, or an authorized signatory or official of a corporate applicant.
(5) Operator(s) or owner(s) of nontank vessels shall submit a nonrefundable fee per vessel with each new or renewal application as follows: Do not deduct any processing fees from the per vessel fee.
(A) Operator(s) or owner(s) of nontank vessels with a carrying capacity of over 6,500 barrels, or over 7,500 barrels for nontank vessels owned and operated by California or a federal agency, shall submit a nonrefundable USD $2,500 fee per vessel, or;
(B) Operator(s) or owner(s) of nontank vessels that have a carrying capacity greater than 500 barrels of oil and less than or equal to 6,500 barrels of oil, or a carrying capacity greater than 500 barrels of oil and less than or equal to 7,500 barrels of oil for nontank vessels owned and operated by California or a federal agency, shall submit a nonrefundable USD $1,500 fee per vessel, or;
(C) Operator(s) or owner(s) of nontank vessels that have a carrying capacity of 500 barrels of oil or less shall submit a nonrefundable USD $500 fee per vessel.
(6) If, prior to certificate issuance, an applicant becomes aware of a material change in any of the facts contained in the application or supporting documents, the applicant shall, within five (5) business days of becoming aware of the change or changes, notify the Administrator in writing of the change.
(7) Each certificate issued by the Administrator shall:
(A) except as provided in Subsection (c)(8) below, expire no later than two years following its issuance date; and
(B) bear its expiration date clearly on its face.
(8) The Administrator may issue a certificate for a marine facility for a period of not longer than three years if the Administrator finds that:
(A) continued operation is necessary to finance abandonment of the marine facility; and
(B) the financial resources the operator is able to demonstrate are reasonably sufficient to cover any spill-related damages from the facility.
(9) The minimum, median, and maximum processing times for an application from the time of receipt until issuance of a certificate are as follows:
(A) The minimum time is same day processing;
(B) The median time is nineteen (19) days;
(C) The maximum time is ninety-two (92) days.
(d) Application processing by the OSPR - Tankers, Nontank Vessels, Large Barges, and Owners of Oil.
(1) Applications and evidence of financial responsibility submitted by owners or operators of tankers, nontank vessels, large barges, and owners of oil will be reviewed within twenty-one (21) calendar days of receipt by the OSPR. Certificates will be issued within that period provided that the following has been received: (1) adequate information was furnished in the application, (2) receipt of the nontank vessel fee, and (3) acceptable evidence of financial responsibility, as determined by the Administrator, has been received. The criteria for demonstrating financial responsibility are set forth in Section 795 of this subchapter. Amounts of financial responsibility that must be demonstrated are as follows:
(A) Operator(s) or owner(s) of tankers, large barges, or owners of, or persons accepting responsibility for the oil, shall demonstrate their current financial ability to pay at least one billion dollars ($1,000,000,000).
(B) Except as provided in (C) below, operator(s) or owner(s) of nontank vessels shall demonstrate their current financial ability to pay at least 300 million dollars ($300,000,000) for any damages arising from an oil spill during the term of the certificate.
1. Certificates of financial responsibility are not required for non-self propelled nontank vessels that do not carry any oil.
(C) Operator(s) or owner(s) of nontank vessels that have a carrying capacity of 6,500 barrels of oil or less, or a carrying capacity of 7,500 barrels of oil or less for nontank vessels owned and operated by California or a federal agency, shall demonstrate their current financial ability to pay the following appropriate amount of financial responsibility:
1. $2,000,000 for those that have a carrying capacity from less than 1 to not more than 10 barrels;
2. $5,000,000 for those that have a carrying capacity greater than 10 to not more than 50 barrels;
3. $10,000,000 for those that have a carrying capacity greater than 50 to not more than 500 barrels;
4. $18,900,000 for those that have a carrying capacity greater than 500 to not more than 1,000 barrels.
5. Those nontank vessels that have a carrying capacity greater than 1000 to not more than 6,500 barrels, or 7,500 barrels for nontank vessels owned and operated by California or a federal agency, shall determine the amount of financial responsibility as follows: subtract 1,000 barrels from the total carrying capacity of oil of the nontank vessel: multiply this amount by $5,670 (which represents 30% of the cargo multiplied by the maximum per barrel clean-up and damage cost of spilled oil of $18,900); then add $18,900,000.
6. The amount of financial responsibility shall not exceed the amount required for nontank vessels as set forth in Section 8670.37.58(a) of the Government Code.
7. Certificates of financial responsibility are not required for non-self propelled nontank vessels that do not carry any oil.
(2) The amounts in this subsection (d) are in effect unless amended by Section 8670.37.53(a), 8670.37.58(a) or 8670.41 of the Government Code.
(3) If the information contained in the application, evidence of financial responsibility, or any supplemental information provided is insufficient, the Administrator shall notify the applicant of the nature of such insufficiency within twenty-one (21) calendar days from the date of receipt of the application and evidence of financial responsibility, or any supplemental information or additional evidence, whichever is applicable. Applicants shall then have ten (10) business days from the date of notification to provide the missing information or additional evidence.
(A) Certificates will be issued within fifteen (15) calendar days of the submission of additional evidence or supplemental information provided that acceptable evidence or adequate information was received. In the event that acceptable evidence or adequate information is not received, the Administrator may deny the application by providing written notice specifying the reasons for the denial following the ten (10) day period set forth in Subsection (d)(3) above.
(e) Application processing by the OSPR - Small Barges, Marine Facilities, Small Marine Fueling Facilities, Mobile Transfer Units, and Vessels Carrying Oil As Secondary Cargo.
(1) Applications submitted by owners or operators of small barges, marine facilities, small marine fueling facilities (as defined in Section 790 of this subdivision), mobile transfer units, and vessels carrying oil as secondary cargo (as defined in Section 790 of this subdivision) will be reviewed and applicants notified of the amount of financial responsibility required within twenty-one (21) calendar days of receipt by the OSPR.
(2) The OSPR shall determine the amount of financial responsibility as follows:
(A) For small barges, except for those vessels carrying oil as secondary cargo addressed under Subsection (e)(2)(F) of this section:
1. the product derived by multiplying the maximum per barrel clean-up and damage cost of spilled oil ($12,500) times thirty percent (30%) of the maximum cargo capacity, as measured in barrels, of the small barge.
2. The amount of financial responsibility shall not exceed the amount required for tankers as set forth in Section 8670.37.53(a) of the Government Code.
3. The amount of financial responsibility required for small barges used exclusively to transfer, transport, store, or mechanically treat oily waste water may be reduced if allowed by the Administrator following reconsideration pursuant to the procedures established in Subsection 791.7(g). If a reduced financial responsibility amount is allowed, it shall be based on: $12,500 times thirty percent (30%) of the maximum concentration of oil found in the oily waste water, as measured in barrels.
4. However, the amount of financial responsibility will, in no case, be reduced below the minimum of $1,000,000.
(B) For marine facilities except for those offshore marine facilities, small marine fueling facilities, and mobile transfer units addressed under Subsections (e)(2)(C), (e)(2)(D) and (e)(2)(E), respectively, of this section:
1. the product derived by multiplying the maximum per barrel clean-up and damage cost of spilled oil ($12,500) times the reasonable worst case spill volume, as measured in barrels, calculated in the certificant's oil spill contingency plan, in accordance with Sections 817.02(d)(1)(A), 817.02(d)(1)(B), and 817.02(d)(1)(E) of Title 14 of the California Code of Regulations.
2. The amount determined pursuant to this paragraph shall not be less than $1,000,000 or in excess of $300,000,000, unless otherwise determined by the Administrator following reconsideration pursuant to subsection 791.7(g).
(C) For offshore marine facilities engaged in drilling operations which may have the potential for resulting in an uncontrolled release of oil from the reservoir into marine waters:
1. the product derived by multiplying the maximum per barrel clean-up and damage cost of spilled oil ($12,500) times the reasonable worst case spill volume, as measured in barrels. This volume is based on calculations and parameters proposed by the offshore marine facility in the certificant's oil spill contingency plan, in accordance with Sections 817.02(d)(1)(C)-(E) of Title 14 of the California Code of Regulations; plus:
2. The amount determined pursuant to this paragraph shall not be less than $10,000,000 or in excess of $300,000,000, unless otherwise determined by the Administrator following reconsideration pursuant to subsection 791.7(g).
(D) For small marine fueling facilities except for those mobile transfer units addressed under Subsection (e)(2)(E) of this section:
1. the product derived by multiplying the maximum per barrel clean-up and damage cost of spilled oil ($12,500) times the reasonable worst case spill volume, as measured in barrels, calculated in the certificant's oil spill contingency plan, in accordance with Section 817.03(d)(1)(A) of Title 14 of the California Code of Regulations.
(E) For mobile transfer units:
1. The product derived by multiplying the maximum per barrel clean-up and damage cost of spilled oil ($12,500) times thirty percent (30%) of the maximum cargo capacity, as measured in barrels, of the unit.
2. The amount of financial responsibility required for mobile transfer units used exclusively to transport oil-water mixture may be reduced if allowed by the Administrator following reconsideration pursuant to the procedures established in Subsection 791.7(g). If a reduced financial responsibility amount is allowed, it shall be based on: $12,500 times thirty percent (30%) of the maximum concentration of oil found in the oily waste water, as measured in barrels.
(F) For Vessels Carrying Oil As Secondary Cargo:
1. the product derived by multiplying the maximum per barrel clean-up and damage cost of spilled oil ($12,500) times thirty percent (30%) of the maximum oil cargo capacity, as measured in barrels, of the vessel.
2. The amount of financial responsibility shall not exceed the amount required for tankers as set forth in Section 8670.37.53(a) of the Government Code.
3. However, the amount of financial responsibility will, in no case, be reduced below the minimum of $1,000,000.
(3) Evidence of financial responsibility must be submitted within twenty-one (21) calendar days from the date applicant receives notice of the amount of financial responsibility. The Administrator may waive the twenty-one (21) day period for submitting such evidence.
(4) Certificates will be issued for small barges, marine facilities, small marine fueling facilities, mobile transfer units, and vessels carrying oil as secondary cargo within ten (10) business days following the receipt of acceptable evidence of financial responsibility by the OSPR, as determined by the Administrator. The criteria for demonstrating financial responsibility are set forth in Section 795 of this subchapter.
(5) If the information contained in the application, evidence of financial responsibility, or the other supplemental information provided is insufficient, the Administrator shall notify the applicant of the nature of such insufficiency within twenty-one (21) calendar days from the date of receipt of either the application, evidence of financial responsibility, or supplemental information, whichever is applicable. Applicants shall then have ten (10) business days from the date of notification to provide the missing information or additional evidence.
(A) Certificates will be issued within ten (10) business days following the submittal of evidence of financial responsibility and any additional evidence required, provided that acceptable evidence and adequate information is received. In the event that acceptable evidence or adequate information is not received, the Administrator may deny the application by providing written notice specifying the reasons for the denial following the ten (10) day period set forth above.
(B) If no evidence of financial responsibility is submitted following issuance of the notice of financial responsibility or if the response to a notice of insufficiency is inadequate, the Administrator may deny the application by providing written notice specifying the reasons for the denial following the twenty-one (21) day or ten (10) day submittal period specified above, whichever is applicable.
(f) Application renewals.
(1) Certificate renewal applications shall be accepted by the Administrator no earlier than ninety (90) calendar days prior to the expiration of the existing certificate. In order to renew a certificate prior to the expiration date of the existing certificate, renewal applications must be submitted no later than forty-five (45) calendar days prior to the expiration date.
(2) If at any time after a certificate has been issued, a holder of a certificate becomes aware of a material change in any facts contained in the application or supporting documents, including the holder ceasing to be the owner or operator of the tanker, barge, nontank vessel, or marine facility, or the owner of the oil, the holder of the certificate shall notify OSPR, in writing, within five (5) business days of becoming aware of the change.
(3) Operator(s) or owner(s) of nontank vessels shall submit a nonrefundable fee per vessel, as set forth in Section 791.7(c)(5) of this subchapter. Do not deduct any processing fees from the per vessel fee.
(g) Requests for Reconsideration.
(1) Applicants may submit a written request to the Administrator requesting reconsideration of the amount of financial responsibility that the applicant must demonstrate to obtain a certificate, or any decision to deny issuance of a certificate or a renewal certificate, or any decision to deny exemption from the requirement to obtain a certificate. Requests must be submitted within ten (10) business days from the date that the applicant receives notice of denial or of the amount of financial responsibility to be demonstrated. The Administrator may waive the ten (10) day period for submitting a request.
(2) The request must contain the basis for requesting reconsideration and, if applicable, provide evidence which rebuts the basis for the Administrator's denial of the application, renewal application, exemption, or financial responsibility determination.
(3) Within ten (10) business days from the date the request for reconsideration is received, the OSPR will advise the applicant of the Administrator's decision whether the request will be considered.
(4) Within fifteen (15) calendar days following the notice that the Administrator will consider the request, the applicant will either be sent a notice that the Administrator shall adhere to his or her earlier decision (i.e., deny the request for reconsideration); or a certificate shall be issued; or a revised notice of financial responsibility shall be issued; or an exemption shall be granted.
(h) Destruction or Loss of Certificate.
(1) In the event that a certificate has been lost or destroyed, the holder of the certificate shall immediately notify the Administrator of the certificate's loss or destruction.
(2) Certificate holders shall provide a written request which clearly states the reasons for the request to the Administrator for the issuance of a replacement certificate.


Note: Authority cited: Sections 8670.37.54(b), 8670.37.58 and 8670.41, Government Code. Reference: Sections 8670.37.53, 8670.37.54, 8670.37.58 and 8670.41, Government Code.

s 792. Certification Requirements: Tankers, Nontank Vessels, Large Barges, and Owners of Oil.
(a) Each tanker or barge operator or owner who transports oil across California marine waters or the owner(s) of all the oil contained in and to be transferred to or from the tanker or barge, or the person accepting responsibility for the oil, or each nontank vessel operator or owner entering the marine waters of the state, shall obtain a certificate issued by the Administrator prior to operating in California marine waters. The certificate(s) shall be kept in their possession or control and, if applicable, on board the tanker, barge or nontank vessel.
(b) To obtain a certificate, the operator(s) or owner(s) of tankers, nontank vessels, large barges, or owner(s) of oil contained therein, or the person accepting responsibility for the oil, shall demonstrate the required amounts of financial responsibility found in Subsection 791.7(d).
(c) The required amounts of financial responsibility in no way restricts or sets financial limitations on any duty, obligation or liability of the responsible party to the State of California or any other public or private entity. This includes civil penalties assessed pursuant to all applicable federal, state and local laws.
(d) When the owner(s) of all of the oil contained in the tanker, barge or nontank vessel, or the person accepting responsibility for the oil, hold the certificate(s) in lieu of the tanker, barge or nontank vessel operator or owner, the owner(s) or person accepting responsibility for the oil, shall provide a copy of documentation demonstrating ownership of, or responsibility for, all the oil contained in the vessel, a written statement authorizing application of the certificate(s) to the tanker, barge or nontank vessel, and a copy of the certificate to the tanker, barge or nontank vessel operator.
(e) The original or a certified copy(s) of certificate(s) issued to the responsible party (e.g., the tanker, barge or nontank vessel operator or owner, or, if applicable, the owner(s) of all the oil contained in the tanker, barge or nontank vessel or the person accepting responsibility for the oil), shall be carried on the tanker, barge or nontank vessel and be available for inspection at all times. As used in this subsection, a certified copy means either a notarized copy or a copy with an attached declaration, signed by an official of certificant, declaring the copy to be a true and accurate copy of the original certificate. If applicable, the documentation required pursuant to Subsection (d) shall be carried on the tanker, barge or nontank vessel and be available for inspection at all times.
(f) If the operator or owner of a vessel intends to rely on the certificate(s) issued to the owner(s) of or person(s) accepting responsibility for the oil cargo, the vessel operator shall, at least twenty-four (24) hours prior to transporting the oil across California marine waters, provide the Administrator with the following:
(1) a copy or copies of the certificate(s) applicable to all of the oil at all times during the transport; and
(2) a copy of a written statement by the holder(s) of the applicable certificate(s) authorizing its (their) application to the vessel.
(g) Operators who are not also the owners of the certificated tankers, barges or nontank vessels, shall carry on board such tankers, barges or nontank vessels a copy of the charter-party or any other written document which demonstrates that the operators are the operators designated on the certificates.
(h) Owners or operators of tankers, barges or nontank vessels used exclusively to respond to, contain, and clean up oil spills shall be exempt from the financial responsibility requirements set forth in this chapter, provided the responsible party or the Administrator agrees to indemnify the owner or operator, or the owner or operator is subject to the qualified immunity provisions set forth in Government Code Section 8670.56.6.


Note: Authority cited: Sections 8670.37.54(b), 8670.37.51, 8670.37.53 and 8670.37.58, Government Code. Reference: Sections 8670.37.51-8670.37.58 and 8670.56.6, Government Code.

s 793. Certification Requirements: Small Barges, Marine Facilities, Small Marine Fueling Facilities, Mobile Transfer Units, and Vessels Carrying Oil As Secondary Cargo.
(a) Operators or owners of small barges, marine facilities, small marine fueling facilities, mobile transfer units, and vessels carrying oil as secondary cargo shall demonstrate the financial ability to pay for any damages arising from an oil spill resulting from the operations of the small barge, marine facility, small marine fueling facility, mobile transfer unit, or vessel carrying oil as secondary cargo.
(b) Each operator or owner of a small barge, marine facility, small marine fueling facility, mobile transfer unit, or vessel carrying oil as secondary cargo shall obtain a Certificate of Financial Responsibility from the Administrator.
(c) The original or certified copy of the certificate shall remain on-board the barge, the marine facility premise, the small marine fueling facility premise, with the mobile transfer unit, or on-board the vessel carrying oil as secondary cargo and be available for inspection at all times. As used in this subsection, a certified copy means either a notarized copy or a copy with an attached declaration, signed by an official of certificant, declaring the copy to be a true and accurate copy of the original certificate.
(d) Each operator or owner of a marine terminal within the state may only transfer oil to or from a vessel following receipt and verification of a copy(s) of the certificate(s) issued by the Administrator to the operator of the vessel or owner(s) of or persons accepting responsibility for the oil contained in the vessel, as well as all the oil to be transferred to or from the vessel.
(e) Each marine terminal operator or owner may only transfer oil to a vessel which is intended to be used for transporting oil to a second vessel located within twelve (12) miles of the California shoreline and which is intended to be used for transporting such oil as cargo, following receipt and verification of a copy(s) of the certificate(s) issued to the person(s) responsible for both vessels or all of the oil contained in both vessels, as well as all the oil to be transferred to both vessels.
(f) Each marine terminal operator or owner may only transfer oil from a vessel which has been used for transporting oil cargo from a second vessel located within twelve (12) miles of the California shoreline, following receipt and verification of a copy(s) of the certificate(s) issued to the person(s) responsible for both vessels or all of the oil contained in both vessels, as well as all the oil to be transferred from both vessels.
(g) Each marine terminal operator or owner shall be determined to have met the verification requirements set forth in Subsections (d), (e), and (f) of this regulation, when, at the time of oil transfer, the marine terminal operator or owner has:
(1) obtained verbal verification that the certificate (s) is (are) current and applicable to the vessel(s) and, if applicable, all of the oil contained in or to be transferred to or from the vessel from the person(s) responsible for the vessel(s) or from person(s) responsible for the oil to be transferred to or from the affected vessels or from person(s) authorized to provide this verification; and
(2) visually inspected all relevant manifests or similar documentation (e.g., U.S. Customs Cargo Declarations) to confirm the information ascertained pursuant to Subsection (g)(1), above; and
(3) assured that the information contained in Certificates of Financial Responsibility, required to be obtained pursuant to this subchapter, is consistent with the information acquired in Subsections (g)(1) and (2), above.
(h) The operator or owner of the marine terminal must retain a copy of the certificate(s) obtained in accordance with Subsections (d), (e), and (f) of this section for a period of not less than one year.
(i) The Administrator shall determine the amount of financial responsibility that owners or operators of small barges, marine facilities, small marine fueling facilities, mobile transfer units, and vessels carrying oil as secondary cargo must demonstrate. The amount shall be based on the procedures described in Subsection 791.7(e)(2) of this subchapter.
(j) The required amounts of financial responsibility in no way restricts or sets financial limitations on any duty, obligation or liability of the responsible party to the State of California or any other public or private entity. This includes civil penalties assessed pursuant to all applicable federal, state and local laws.
(k) Owners or operators of mobile transfer units used exclusively to respond to, contain, and clean up oil spills shall be exempt from the financial responsibility requirements set forth in this subchapter, provided the responsible party or the Administrator agrees to indemnify the owner or operator, or the owner or operator is subject to the qualified immunity provisions set forth in Government Code Section 8670.56.6.
(l) Special procedures for owners or operators of offshore marine facilities engaged in drilling operations.
(1) The operator or owner of any offshore marine facility from which drilling operations are being carried out, where the drilling operations may have the potential for resulting in an uncontrolled release of oil from the reservoir into marine waters, shall demonstrate the financial ability to pay for any damages resulting from the operations of the offshore marine facility during an oil spill from the facility or from the drilling operations. The amount shall be based on the procedures described in Subsection 791.7(e)(2)(C).
(2) At such time as an operator or owner described in Subsection (l)(1) of this section submits an application to the State Lands Commission or the Division of Oil, Gas and Geothermal Resources in the Department of Conservation for permission to carry out drilling operations which may have the potential for resulting in an uncontrolled release of oil from the reservoir into marine waters, that operator or owner shall apply for and obtain from the Administrator an amended Certificate of Financial Responsibility to reflect the requirements of Subsection (l)(1) of this section. The amended certificate shall no longer be required once the drilling operations are completed.


Note: Authority cited: Sections 8670.37.51, 8670.37.53(b) and 8670.37.54(b), Government Code. Reference: Sections 8670.37.51-8670.37.57 and 8670.56.6, Government Code.

s 794. Multiple Vessels/Facilities Certifications.
(a) Original certificates shall be issued, one for each tanker, barge or nontank vessel or facility listed on the completed application, following approval of the application by the OSPR.
(b) Total financial responsibility for multiple small barges, multiple marine facilities, multiple small marine fueling facilities, multiple mobile transfer units, or multiple vessels carrying oil as secondary cargo shall be based on the barge, facility, unit, or tanker, barge or nontank vessel which poses the greatest financial risk during an oil spill as determined pursuant to Subsection 791.7(e)(2).
(c) An oil spill or spills occurring from one or more tankers, barges or nontank vessels, or marine facilities within or outside of California marine waters, which cause the certificate holder(s) to be liable for damages exceeding five percent (5%) of the total financial resources reflected by the certificate, as determined by the Administrator, shall cause the Administrator to:
(1) immediately review the certificate holder's financial resources to determine the applicability of this section to the certificate holder and notify the holder of the results of the review prior to issuing a determination that the certificate is inapplicable to any tanker, barge or nontank vessel, or marine facility not associated with the spill; and
(2) where a determination is made that the certificate is inapplicable, provide the certificate holder reasonable time to cease necessary operations; and
(3) consider the certificate inapplicable to any tanker, barge or nontank vessel, or marine facility not associated with the spill.
(d) Operators or owners holding certificates deemed inapplicable to any tanker, barge or nontank vessel, or marine facility not associated with the spill(s), pursuant to Subsection (c) above, shall reapply for a certificate for any or all tanker(s), barge(s) or nontank vessel(s), or marine facility(s) not associated with the spill. Upon reapplication, the operator(s) or owner(s) shall demonstrate to the satisfaction of the Administrator that:
(1) the operator(s) or owner(s) has (have) the amount of financial ability required pursuant to this subchapter; and
(2) the operator(s) or owner(s) has (have) the financial ability to pay all damages which arise or have arisen from the spill or spills which have occurred.


Note: Authority cited: Sections 8670.37.54(b), 8670.37.55 and 8670.37.58, Government Code. Reference: Section 8670.37.55, Government Code.

s 795. Evidence of Financial Responsibility.
(a) Insurance.
(1) The whole or portion of the amount of financial responsibility required may be demonstrated by providing evidence that the operator or owner is insured up to the amount determined pursuant to Section 791.7 of this subchapter.
(2) Operators or owners of tankers, barges or nontank vessels or marine facilities, or owners of oil, or persons accepting responsibility for the oil may submit any of the following:
(A) an insurance policy or other documentation, and a certificate of insurance that is acceptable to the Administrator specifying the nature, type, and amount of insurance. At a minimum, the insurance policy or certificate must include the following information:
1. Name and address of insured;
2. Name and principal characteristics of tanker(s), barge(s) or nontank vessel(s) or facility covered;
3. Name and address of insurer(s);
4. Policy number(s);
5. Effective date and term of coverage;
6. All conditions and limitations of the policy or certificate which may affect coverage in the event of discharge of oil;
7. Language that the policy covers damages as specified in Government Code Section 8670.56.5, except as provided in (D) below:
8. Evidence of dollar amounts of insurance policy or certificate of insurance and;
9. Amount of deductibles and/or self-insured retention (SIR).
(B) a certificate of insurance that is acceptable to the Administrator and an endorsement executed by the underwriter or insurer which contains the language set forth in the California standard endorsement. Refer to the Endorsement for Vessels Calling Upon California - Oil Spill Labilities, FG OSPR Form 1929 (10/05) for endorsements to policies for tankers, barges or nontank vessels; and to Endorsement for Marine Facilities - Oil Spill Liabilities, FG OSPR Form 1962 (10/05) for endorsements to policies for marine facilities (other than mobile transfer units); and to the Endorsement for Mobile Transfer Units and Transportable Treatment Units - Oil Spill Liabilities, FG OSPR Form 1930 (10/05) for endorsements to policies provided as evidence of coverage for mobile transfer units and transportable treatment units, incorporated by reference herein.
(C) similar or comparable evidence of insurance acceptable to the Administrator.
(D) If an insurance policy or broker's cover note is being submitted as as evidence for excess coverage over and above a P&I Club policy, then one of the following is required:
1. Language that the policy covers damages as specified in Government Code Section 8670.56.5(h); or
2. The insurance policy shall be signed by the underwriter and shall state that the insurance policy covers the assured's legal liability for oil pollution claims, and is issued under the same terms and conditions as the underlying P&I Club policy; or
3. The underwriter shall acknowledge in writing that the broker has the authority to include language in the broker's cover note that the insurance policy covers the assured's legal liability for oil pollution claims, and is issued under the same terms and conditions as the underlying P&I Club policy.
When multiple underwriters are providing coverage, the underwriter who sets rates and conditions shall execute the appropriate documents.
(E) If an insurance policy is being submitted for excess coverage over and above the primary policy, then one of the following is required:
1. language that the policy covers damages as specified in Government Code Section 8670.56.5(h); or
2. a copy of the "following form" language which states that the policy is issued under the same terms and conditions as theprimary or underlying policy or policies. (continued)