BILL REQ. #:  S-4725.1 

Read first time 02/27/14.   Referred to Committee on Energy, Environment & Telecommunications.

     AN ACT Relating to oil spill prevention and response; amending RCW 82.23B.010, 82.23B.020, 82.23B.030, and 82.23B.040; adding new sections to chapter 90.56 RCW; creating new sections; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature finds that oil transportation by train and vessel poses a potential hazard to the health and well-being of Washington residents and the natural resources and economic vitality of the state. Recent accidents, such as the oil train explosions in North Dakota, Alabama, New Brunswick, and Quebec, as well as the frequent incidence of leaks and spills from pipelines, railcars, and vessels carrying oil across the nation, highlight the risks to human health and the environment caused by the transportation of oil. Furthermore, as the location and type of oil extracted in North America changes with the advent of new technology, there are associated changes in the patterns and methods of transporting crude oil and refined petroleum products. According to the United States department of transportation, the new types of oil being transported through the state may also be particularly flammable and dangerous. Measures to prevent spills from oil trains and tank vessels are critical to lowering risks to the state's natural resources and economic base. It is therefore the intent and purpose of this act to assess the risks of spill and gaps in the current response capacity, to ensure that response plans are completed and updated, to ensure that the public has access to information about the movement of oil through the state, and to ensure that communities are fully informed about any risks posed to their safety by the transportation of oil.

NEW SECTION.  Sec. 2   A new section is added to chapter 90.56 RCW to read as follows:
     The department shall make available on its web site a quarterly report on the maritime and terrestrial transportation of oil in Washington. The report must include information including, but not limited to, the following sources:
     (1) Information submitted to the department pursuant to section 3 of this act;
     (2) Advanced notices of transfers and other information provided to the department pursuant to RCW 88.46.165, including aggregated information on the quantities and types of oil being transferred, the frequency and duration of oil transfers, and the locations of product transfers;
     (3) Reported information on spills, accidents, discharges, or other prohibited occurrences submitted to the department pursuant to RCW 90.56.050(1), 90.56.280, or 88.46.100; and
     (4) Relevant information about the volume and type of oil transported through Washington that is collected by federal agencies including the United States department of transportation, United States coast guard, United States department of energy, and United States army corps of engineers.

NEW SECTION.  Sec. 3   A new section is added to chapter 90.56 RCW to read as follows:
     (1) The owner or operator for each facility other than a transmission pipeline shall submit to the department the following information:
     (a) The number of tank vessels and railcars that transferred or delivered oil at the facility each week;
     (b) The volume and type of oil that arrived at and departed from the facility each week, including the volume and type of oil:
     (i) By mode of arrival at the facility, including but not limited to arrival by vessel, rail, pipeline, or motor vehicle;
     (ii) By mode of departure from the facility, including but not limited to departure by vessel, rail, pipeline, or motor vehicle; and
     (c) The route taken by any oil that arrived at the facility by railcar.
     (2) Beginning November 1, 2014, the owner or operator of each facility must submit the information required pursuant to subsection (1) of this section by February 1st, May 1st, August 1st, and November 1st of each year and each quarterly submission must include the information in subsection (1) of this section for each week of the quarter covered by the submission. The department may develop a reporting form and guidance for the submission of the information in subsection (1) of this section by facility owners or operators. To the extent feasible, the department must integrate the reporting form with other forms used by facilities to submit information to the department, including forms used to submit the information required by RCW 88.46.165.
     (3)(a) Prior to making any confidential information submitted pursuant to this section available on its web site, the department must aggregate the submitted information to the extent necessary to ensure confidentiality if public disclosure of the specific information or data would result in an unfair competitive disadvantage to the owner or operator submitting the information.
     (b) The department may not make publicly available specific information about the volume of oil or the number of vessels or railcars that arrive at or depart from individual facilities. Instead, information about facility-specific arrivals and departures of oil must be aggregated prior to disclosure in order to prevent unfair competitive disadvantage to the owner or operator submitting the information.

NEW SECTION.  Sec. 4   A new section is added to chapter 90.56 RCW to read as follows:
     (1) The department must provide to the relevant policy and fiscal committees of the senate and house of representatives:
     (a) A review of all state and federal geographic response plans as needed in contingency plans required under RCW 90.56.210 and 88.46.060 by December 31, 2014; and
     (b) Annual updates, beginning December 31, 2015, and ending December 31, 2021, as required under RCW 43.01.036, as to the progress made in completing state and federal geographic response plans as needed in contingency plans required under RCW 90.56.060, 90.56.210, and 88.46.060.
     (2) The department must contract, if practicable, with eligible independent third parties to ensure completion by December 1, 2016, of at least fifty percent of the geographic response plans as needed in contingency plans required under RCW 90.56.210 and 88.46.060 for the state.

NEW SECTION.  Sec. 5   (1) Washington State University shall consult with the department of ecology and the emergency management division of the military department to conduct a study regarding the state's capacity to respond to and recover from accidents involving railcars transporting oil. In conducting this study, Washington State University shall consider the potential near-term increase in the volume of oil being transported via rail through Washington as a result of proposed new or expanded oil refining and storage facilities. Washington State University shall seek the input of relevant stakeholders and other state agencies in carrying out this study.
     (2) The study required under subsection (1) of this section must:
     (a) Examine the current and projected prevalence of oil transportation by railcar through Washington communities;
     (b) Make a preliminary identification of the communities at the greatest risk of an accident involving oil transportation by railcar;
     (c) Examine, generally, the extent to which state and local emergency plans, oil spill contingency plans developed pursuant to chapter 90.56 RCW, and geographic response plans address this threat;
     (d) Examine the roles and responsibilities of federal, state, local, and tribal entities in preparing for emergencies or oil spills;
     (e) Determine whether adequate resources are available to respond to and recover from such an accident in a timely and effective manner; and
     (f) Address the potential impacts to transportation networks and other critical infrastructure from an accident involving oil transported by railcar.
     (3) Washington State University shall report its findings from the study to the appropriate committees of the legislature by December 1, 2014.
     (4) This section expires June 30, 2015.

NEW SECTION.  Sec. 6   The department of ecology and the utilities and transportation commission shall jointly hold a symposium on emergency prevention and response activities for bulk crude oil transported in the Pacific Northwest region. The department and the commission must invite state representatives from the Pacific Northwest economic region authorized under chapter 43.147 RCW and representatives from interested tribes and local governments. The symposium must include invitations to representatives from neighboring states, provinces, territories, and countries in the region. The symposium must at a minimum address:
     (1) Cooperative emergency prevention and response activities between the shared international and state borders;
     (2) Expected risks posed by increased transport of Canadian crude oil throughout the Pacific Northwest region within the next three to five years;
     (3) Changes in methods for transporting crude oil and associated risks;
     (4) Identification of responsible agencies and corresponding activities that can be taken to address expected risks; and
     (5) Consideration of new or emerging technologies to make transport safer.

NEW SECTION.  Sec. 7   The department of ecology shall provide an analysis of the safety of transporting bulk crude oil on the waters of the state.
     (1) The analysis must include:
     (a) The capacity to address risks posed by increased waterborne traffic shipping crude oil in bulk as freight;
     (b) Weaknesses or gaps in bulk crude oil spill prevention and response programs, including identification of incomplete or weak programs, with a focus on Grays Harbor and the Columbia river;
     (c) An assessment of the costs and benefits of adopting tug escort requirements for oil laden tankers on the waters of Grays Harbor and the lower Columbia river, and of modifying the tug escort requirements for oil laden tankers on Puget Sound;
     (d) Barge and tug operations within the state related to the movement of bulk crude oil; and
     (e) A status report on the federal, state, and local waterborne bulk crude oil spill prevention and preparedness.
     (2) The department of ecology must provide the analysis to the relevant policy and fiscal committees of the senate and house of representatives by December 31, 2014. The analysis must also include a status report on waterborne bulk crude oil spill prevention and preparedness and recommendations for strengthening crude oil spill prevention and preparedness specifically in Grays Harbor and the Columbia river.

NEW SECTION.  Sec. 8   A new section is added to chapter 90.56 RCW to read as follows:
     (1) The department must provide grants to emergency responders to assist with oil spill response and firefighting equipment and resources needed to meet the requirements of this act.
     (2) In developing the guidelines for prioritizing applications for grant awards, the department must consult with communities located along or near the routes of waterborne and rail shipping of bulk crude oil, emergency responder agencies, representatives from the oil and rail industries, and businesses that receive shipments of bulk crude oil.
     (a) In reviewing an application the department must evaluate the funding request, the need for additional funding, and the extent the applicant is able to coordinate with other response agencies having equipment and resources in the area.
     (b) Funding must be prioritized for applicants from areas where liquid bulk crude oil is transferred from one mode of transportation to another.
     (c) Grants must be coordinated to maximize currently existing equipment and resources that have been put in place by first responders and industry.

Sec. 9   RCW 82.23B.010 and 1992 c 73 s 6 are each amended to read as follows:
     ((Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.)) The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Barrel" means a unit of measurement of volume equal to forty-two United States gallons of crude oil or petroleum product.
     (2) "Bulk oil terminal" means a facility of any kind, other than a waterborne vessel, that is used for transferring crude oil to or from a rail tank car.
     (3) "Crude oil" means any naturally occurring liquid hydrocarbons at atmospheric temperature and pressure coming from the earth, including condensate and natural gasoline.
     (((3))) (4) "Department" means the department of revenue.
     (((4))) (5) "Marine terminal" means a facility of any kind, other than a waterborne vessel, that is used for transferring crude oil or petroleum products to or from a waterborne vessel or barge.
     (((5))) (6) "Navigable waters" means those waters of the state and their adjoining shorelines that are subject to the ebb and flow of the tide, including the Columbia and Snake rivers.
     (((6))) (7) "Person" has the meaning provided in RCW 82.04.030.
     (((7))) (8) "Petroleum product" means any liquid hydrocarbons at atmospheric temperature and pressure that are the product of the fractionation, distillation, or other refining or processing of crude oil, and that are used as, useable as, or may be refined as a fuel or fuel blendstock, including but not limited to, gasoline, diesel fuel, aviation fuel, bunker fuel, and fuels containing a blend of alcohol and petroleum.
     (((8))) (9) "Tank car" means a railcar, the body of which consists of a tank for transporting liquids.
     (10) "Taxpayer" means the person owning crude oil or petroleum products immediately after receipt of the same into the storage tanks of a marine or bulk oil terminal in this state from a waterborne vessel or barge and who is liable for the taxes imposed by this chapter.
     (((9))) (11) "Waterborne vessel or barge" means any ship, barge, or other watercraft capable of travelling on the navigable waters of this state and capable of transporting any crude oil or petroleum product in quantities of ten thousand gallons or more for purposes other than providing fuel for its motor or engine.

Sec. 10   RCW 82.23B.020 and 2006 c 256 s 2 are each amended to read as follows:
     (1) An oil spill response tax is imposed on the privilege of receiving: (a) Crude oil or petroleum products at a marine terminal within this state from a waterborne vessel or barge operating on the navigable waters of this state; and (b) crude oil at a bulk oil terminal within this state from a rail tank car. The tax imposed in this section is levied upon the owner of the crude oil or petroleum products immediately after receipt of the same into the storage tanks of a marine or bulk terminal from a rail tank car or waterborne vessel or barge at the rate of one cent per barrel of crude oil or petroleum product received.
     (2) In addition to the tax imposed in subsection (1) of this section, an oil spill administration tax is imposed on the privilege of receiving: (a) Crude oil or petroleum products at a marine terminal within this state from a waterborne vessel or barge operating on the navigable waters of this state; and (b) crude oil at a bulk oil terminal within this state from a rail tank car. The tax imposed in this section is levied upon the owner of the crude oil or petroleum products immediately after receipt of the same into the storage tanks of a marine or bulk oil terminal from a rail tank car or waterborne vessel or barge at the rate of four cents per barrel of crude oil or petroleum product.
     (3) The taxes imposed by this chapter ((shall)) must be collected by the marine or bulk oil terminal operator from the taxpayer. If any person charged with collecting the taxes fails to bill the taxpayer for the taxes, or in the alternative has not notified the taxpayer in writing of the ((imposition of the)) taxes imposed, or having collected the taxes, fails to pay them to the department in the manner prescribed by this chapter, whether such failure is the result of the person's own acts or the result of acts or conditions beyond the person's control, he or she ((shall)), nevertheless, ((be)) is personally liable to the state for the amount of the taxes. Payment of the taxes by the owner to a marine or bulk oil terminal operator ((shall)) must relieve the owner from further liability for the taxes.
     (4) Taxes collected under this chapter ((shall)) must be held in trust until paid to the department. Any person collecting the taxes who appropriates or converts the taxes collected ((shall be)) is guilty of a gross misdemeanor if the money required to be collected is not available for payment on the date payment is due. The taxes required by this chapter to be collected ((shall)) must be stated separately from other charges made by the marine or bulk oil terminal operator in any invoice or other statement of account provided to the taxpayer.
     (5) If a taxpayer fails to pay the taxes imposed by this chapter to the person charged with collection of the taxes and the person charged with collection fails to pay the taxes to the department, the department may, in its discretion, proceed directly against the taxpayer for collection of the taxes.
     (6) The taxes ((shall be)) are due from the marine or bulk oil terminal operator, along with reports and returns on forms prescribed by the department, within twenty-five days after the end of the month in which the taxable activity occurs.
     (7) The amount of taxes, until paid by the taxpayer to the marine or bulk oil terminal operator or to the department, ((shall)) constitute a debt from the taxpayer to the marine or bulk oil terminal operator. Any person required to collect the taxes under this chapter who, with intent to violate the provisions of this chapter, fails or refuses to do so as required and any taxpayer who refuses to pay any taxes due under this chapter((, shall be)) is guilty of a misdemeanor as provided in chapter 9A.20 RCW.
     (8) Upon prior approval of the department, the taxpayer may pay the taxes imposed by this chapter directly to the department. The department ((shall)) must give its approval for direct payment under this section whenever it appears, in the department's judgment, that direct payment will enhance the administration of the taxes imposed under this chapter. The department ((shall)) must provide by rule for the issuance of a direct payment certificate to any taxpayer qualifying for direct payment of the taxes. Good faith acceptance of a direct payment certificate by a terminal operator ((shall)) must relieve the marine or bulk oil terminal operator from any liability for the collection or payment of the taxes imposed under this chapter.
     (9) All receipts from the tax imposed in subsection (1) of this section ((shall)) must be deposited into the state oil spill response account. All receipts from the tax imposed in subsection (2) of this section shall be deposited into the oil spill prevention account.
     (10) Within forty-five days after the end of each calendar quarter, the office of financial management ((shall)) must determine the balance of the oil spill response account as of the last day of that calendar quarter. Balance determinations by the office of financial management under this section are final and ((shall)) may not be used to challenge the validity of any tax imposed under this chapter. The office of financial management ((shall)) must promptly notify the departments of revenue and ecology of the account balance once a determination is made. For each subsequent calendar quarter, the tax imposed by subsection (1) of this section shall be imposed during the entire calendar quarter unless:
     (a) Tax was imposed under subsection (1) of this section during the immediately preceding calendar quarter, and the most recent quarterly balance is more than nine million dollars; or
     (b) Tax was not imposed under subsection (1) of this section during the immediately preceding calendar quarter, and the most recent quarterly balance is more than eight million dollars.

Sec. 11   RCW 82.23B.030 and 1992 c 73 s 9 are each amended to read as follows:
     The taxes imposed under this chapter ((shall)) only apply to the first receipt of crude oil or petroleum products at a marine or bulk oil terminal in this state and not to the later transporting and subsequent receipt of the same oil or petroleum product, whether in the form originally received at a marine or bulk oil terminal in this state or after refining or other processing.

Sec. 12   RCW 82.23B.040 and 1992 c 73 s 10 are each amended to read as follows:
     Credit ((shall)) must be allowed against the taxes imposed under this chapter for any crude oil or petroleum products received at a marine or bulk oil terminal and subsequently exported from or sold for export from the state.