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.