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Last Updated: 2/23/2012
Budget Issue: 16 permanent positions to implement a fuel loading and unloading monitoring program
Program: Oil Spill Prevention and Response
Finding or Recommendation: Modify Governor’s January budget request for 16 permanent positions at a cost of $2.9 million from the Oil Spill and Prevention and Administrative Fund and instead approve the positions on a three-year limited-term basis to align the position authority with the expiration of the fee increase and monitoring requirements.
Further Detail

The Governor’s January Budget proposes the addition of 16 permanent positions in 2012-13 and funding of $2.9 million in the budget year ($2.0 million on-going) from the Oil Spill Prevention and Administrative Fund (OSPAF).  These positions are requested to implement Chapter 583, Statues of 2011 (AB 1112, Huffman) that establishes a three-year risk-based monitoring program for inspecting vessels that are loading and unloading fuel in California waters. Currently, the main source of revenue for OSPAF is a fee levied on each barrel of oil delivered through marine terminals or through pipelines that are operated through marine waters of the state.  Chapter 583 increased the per-barrel fee from $0.05 to $0.065 to implement this program.

Both the fee increase and the requirement to conduct risk-based monitoring of fuel transfers expire on January 1, 2015, unless extended by statute prior to that date.  At that time, there will no longer be a need for the positions to administer the program and the funding source for those positions will no longer exist. As such, we recommend that the Legislature approve the positions on a three-year limited-term basis in order to align the position authority with the statute’s expiration.