Section § 43025

Explanation

This section explains that the California Legislature aims to update how penalties are handled for breaking fuel regulations. The goal is to make sure that the state has the right tools to enforce the law effectively and fairly. However, the Legislature does not intend to change the way penalty settlements are done compared to the past. The penalties are meant to provide a flexible and efficient way for state authorities to manage violations.

It is the intent of the Legislature in the enactment of this chapter to update the penalty provisions for violations of fuel regulations to ensure that the appropriate tools are available to effectively and fairly enforce state law. In enacting this chapter, it is not the intent of the Legislature to modify penalty settlements beyond historic levels. The civil and administrative penalty provisions in this chapter are designed to give the state board an effective, efficient, and flexible tool to fairly enforce all violations.

Section § 43026

Explanation

This law outlines the responsibilities and penalties related to motor vehicle fuel distributors. If you produce or sell motor vehicle fuel, annually, you need to inform the state of your main business address where you keep records. In return, the state sends you a compliance certificate good for one year. You must keep detailed records of all fuel transactions for two years at the reported addresses. If you don't comply with these record-keeping or reporting requirements, you could face daily fines.

Additionally, transportation of fuel should only be done for distributors with current compliance certificates. Transporters and retailers can face hefty fines if they knowingly work with noncompliant distributors or sell non-regulation fuel, especially after a cease and desist order. Lastly, the state board will publish and share a list of compliant fuel distributors every year.

(a)CA Health & Safety Code § 43026(a)  For purposes of this section, “motor vehicle fuel distributor” means any person who (1) refines, blends, or otherwise produces motor vehicle fuel, or (2) with an ownership interest in the fuel, transports or causes the transport of motor vehicle fuel at any point between a production or import facility and a retail outlet, or sells, offers for sale, or supplies motor vehicle fuel to motor vehicle fuel retailers.
(b)CA Health & Safety Code § 43026(b)  Any motor vehicle fuel distributor who conducts business within the state shall, annually on January 1, inform the state board in writing of the distributor’s principal place of business, which shall be a physical address and not a post office box, and any other place of business at which distributor records are maintained or refining activities are conducted.
(c)CA Health & Safety Code § 43026(c)  The state board shall supply each complying motor vehicle fuel distributor with a certificate of compliance with this section not later than June 30. The certificate shall be effective from July 1 of the year of issuance through June 30 of the following year.
(d)CA Health & Safety Code § 43026(d)  All motor vehicle fuel distributors shall maintain complete records of each purchase, delivery, or supply of motor vehicle fuel for a period of not less than two years in the physical locations reported pursuant to subdivision (b) and shall not move the records to another physical location without notifying the state board of the new location. A complete record for each delivery shall consist of not less than a copy, or the information contained therein, of the bills of lading from the refinery or bulk terminal from which the fuel is received, the delivery ticket or receipt showing the location of the fuel at the time of sale, and the invoice showing the purchaser of the fuel. All those records may be kept in physical or electronic format and are subject to inspection and duplication by the state board.
(e)CA Health & Safety Code § 43026(e)  Any motor vehicle fuel distributor who intentionally fails to comply with subdivision (b) or (d) is liable for a civil penalty not to exceed one thousand dollars ($1,000) for each day of noncompliance.
(f)CA Health & Safety Code § 43026(f)  No person shall knowingly transport motor vehicle fuel for any motor vehicle fuel distributor who is not in possession of a current certificate of compliance as described in subdivision (c). Any person who transports, or provides vehicles to transport, motor vehicle fuel for a noncomplying distributor is liable for a civil penalty not exceeding ten thousand dollars ($10,000) per day. However, any person who transports, or provides vehicles to transport, motor vehicle fuel for a distributor who is in possession of a current certificate of compliance shall not be liable for any penalties under this subdivision unless that person has specific knowledge of noncompliance.
(g)CA Health & Safety Code § 43026(g)  Any retailer who knowingly sells or supplies motor vehicle fuel which was delivered to the retailer by, or on behalf of, a noncomplying motor vehicle fuel distributor is liable for a civil penalty not to exceed ten thousand dollars ($10,000) for each transaction.
(h)CA Health & Safety Code § 43026(h)  Any retailer who sells motor vehicle fuel that does not comply with regulations of the state board, after both oral and written notice to cease and desist have been delivered to the owner, manager, or attendant on duty at the retailer facility, and upon failure to comply with that notice, is subject to the issuance of a cease and desist order by the state board and a penalty of ten thousand dollars ($10,000) for each day of noncompliance with the cease and desist order.
(i)CA Health & Safety Code § 43026(i)  The state board shall annually compile and publish a complete listing of all certified motor vehicle fuel distributors, and shall mail a copy to every licensed transporter of petroleum products.

Section § 43027

Explanation

In California, violating fuel standards and requirements can lead to significant penalties depending on the nature of the violation. If someone willfully and intentionally breaks these rules, they could be fined up to $250,000, plus any extra money they made from the noncomplying fuel. Careless negligence can result in a penalty of up to $50,000. Simply violating the rules without willful intent might incur a penalty up to $35,000. Lastly, entering false information in required documents or failing to maintain them properly can result in a penalty up to $25,000. The severity of the penalty can be influenced by the intent and circumstances of the violation.

The following civil penalties apply to the following acts not included within Section 43026:
(a)CA Health & Safety Code § 43027(a)  Any person who willfully and intentionally violates any provision of this part, or any rule, regulation, permit, variance, or order of the state board, pertaining to fuel requirements and standards, is liable for a civil penalty of not more than two hundred fifty thousand dollars ($250,000), and the prosecuting agency shall include a claim for an additional penalty in the amount of any economic gain that otherwise would not have been realized from the sale of the fuel determined to be in noncompliance.
(b)CA Health & Safety Code § 43027(b)  Any person who negligently violates any provision of this part, or any rule, regulation, permit, variance, or order of the state board, pertaining to fuel requirements and standards, exclusive of the documentation requirements specified in subdivision (d), is liable for a civil penalty of not more than fifty thousand dollars ($50,000).
(c)CA Health & Safety Code § 43027(c)  Any person who violates any provision of this part, or any rule, regulation, permit, variance, or order of the state board, pertaining to fuel requirements and standards, exclusive of the documentation requirements specified in subdivision (d), is strictly liable for a civil penalty of not more than thirty-five thousand dollars ($35,000).
(d)CA Health & Safety Code § 43027(d)  Any person who enters false information in, or fails to keep, any document required to be kept pursuant to any provision of this part, or any rule, regulation, permit, variance, or order of the state board, pertaining to fuel requirements and standards, is strictly liable for a civil penalty of not more than twenty-five thousand dollars ($25,000). In determining the amount of the penalty to be assessed under this subdivision, the court, or in reaching any settlement, the Attorney General or the state board, shall take into consideration, in addition to subdivision (b) of Section 43031, the specific circumstances and intent of the defendant in making the false entry or in failing to keep the document.

Section § 43028

Explanation

This law allows the state board to impose fines directly for breaking rules related to fuel requirements and standards instead of going through the courts. These fines can't be more than $25,000 for each day of violation or $300,000 total. However, the board can also negotiate settlements that might exceed these limits, but it can't use certain parts of the Business and Professions Code to do so.

As an alternative to any civil penalties prescribed under this part, the state board may impose administrative civil penalties for a violation of this part, or any rule, regulation, permit, variance, or order of the state board, pertaining to fuel requirements and standards, if the state board has adopted rules and regulations specifying procedures for the imposition and amounts of those penalties. No administrative civil penalty levied pursuant to this section shall exceed twenty-five thousand dollars ($25,000) for each day on which there is a violation or three hundred thousand dollars ($300,000) in total. However, nothing in this section restricts the authority of the state board to negotiate mutual settlements under any other penalty provision of law which exceed twenty-five thousand dollars ($25,000) for each day on which there is a violation or three hundred thousand dollars ($300,000) in total, except that the state board shall not rely on any provision of the Business and Professions Code.

Section § 43029

Explanation

This law states that if there's a legal action related to gasoline or diesel fuel violations, the prosecuting agency must add an extra penalty aimed at eliminating economic gains from breaking the rules. For gasoline violations, the penalty is $9,100 per ton of increased emissions from noncompliant fuel. For diesel violations, the penalty is $5,200 per ton of increased emissions.

These penalties account for the increased pollution from the unlawful manufacture, distribution, and sale of fuels that do not meet state standards. To keep these penalties relevant, they'll be adjusted each year based on economic indicators and assessed by the state board. The methods for calculating emissions will also be reviewed and updated as needed.

In an action to recover civil penalties pursuant to subdivisions (b) and (c) of Section 43027, a proceeding to assess administrative civil penalties pursuant to Section 43028, or a criminal prosecution pursuant to Section 43020, the prosecuting agency shall include a claim for an additional penalty designed to eliminate the economic benefits from noncompliance against any person who violates any provision of this part, or any rule, regulation, permit, variance, or order of the state board pertaining to fuel requirements or standards as follows:
(a)CA Health & Safety Code § 43029(a)  For violations of gasoline requirements, the amount of the penalty shall equal the product of the number of tons of incremental increased vehicular emissions resulting from the manufacture, distribution, and sale of the specified volume of noncompliant fuel and nine thousand one hundred dollars ($9,100) per ton, which is the maximum calculated cost-effectiveness for California Phase 2 Reformulated Gasoline.
(b)CA Health & Safety Code § 43029(b)  For violations of diesel fuel requirements, the amount of the penalty shall equal the product of the number of tons of incremental increased vehicular emissions resulting from the manufacture, distribution, and sale of the specified volume of noncompliant fuel and five thousand two hundred dollars ($5,200) per ton, which is the maximum calculated cost-effectiveness for California low sulfur, low aromatics diesel fuel.
(c)CA Health & Safety Code § 43029(c)  To ensure that the penalties under subdivisions (a) and (b) continue to adequately reflect the goals of this section, the following shall occur annually:
(1)CA Health & Safety Code § 43029(c)(1)  The cost-effectiveness values set forth in subdivisions (a) and (b) shall be adjusted to reflect the change in the annual average nationwide producers price index of industrial commodities, less fuels and related products and power, published by the United States Bureau of Labor Statistics, averaged over the previous 5 years.
(2)CA Health & Safety Code § 43029(c)(2)  The methodologies used to calculate the excess emissions from noncompliant fuels shall be reviewed by the state board and updated as necessary.

Section § 43030

Explanation

This law explains how penalties are counted for certain violations related to pollution. For any violation mentioned, every day that it happens counts as its own offense. If the offense is found through monthly production records, each day in the month where the violation occurs is a separate violation.

Additionally, if civil or administrative penalties are recovered, it prevents further prosecution for the same offense. If a violation gets referred to a prosecuting attorney, any civil or administrative cases about that offense must be dropped when a criminal complaint is filed.

(a)CA Health & Safety Code § 43030(a)  For the penalties prescribed in Sections 43027 and 43028, each day during any portion of which a violation occurs is a separate offense.
(b)CA Health & Safety Code § 43030(b)  In applying penalties under Section 43027 or 43028 for violations based solely upon the state board’s review of monthly production records, each day within a month for which a violation occurs is a separate violation.
(c)CA Health & Safety Code § 43030(c)  The recovery of civil or administrative civil penalties pursuant to this chapter precludes prosecution pursuant to Section 43020 for the same offense. When the executive officer refers a violation to a prosecuting attorney, the filing of a criminal complaint is grounds requiring the dismissal of any civil action or administrative proceedings brought pursuant to this chapter for the same offense.

Section § 43031

Explanation

This California law outlines how civil penalties for violations are assessed and recovered. Legal actions can be taken either through court or administrative hearings. When deciding the penalty amount, officials must consider various factors: the harm caused to public health and safety, how persistent and severe the violation is, the offender's history of past violations, any preventive measures taken, the efforts and challenges involved in complying, the offender's cooperation during investigations, and the size of a business if applicable.

(a)CA Health & Safety Code § 43031(a)  The civil or administrative civil penalties prescribed in this chapter shall be assessed and recovered either in a civil action brought in the name of the people of the State of California by the Attorney General or by the state board, or in administrative hearings established pursuant to regulations adopted by the state board.
(b)CA Health & Safety Code § 43031(b)  In determining the amount assessed, the court, the Attorney General, or the state board, in reaching any settlement, shall take into consideration all relevant circumstances, including, but not limited to, all of the following:
(1)CA Health & Safety Code § 43031(b)(1)  The extent of harm to public health, safety, and welfare caused by the violation.
(2)CA Health & Safety Code § 43031(b)(2)  The nature and persistence of the violation, including the magnitude of the excess emissions.
(3)CA Health & Safety Code § 43031(b)(3)  The compliance history of the defendant, including the frequency of past violations.
(4)CA Health & Safety Code § 43031(b)(4)  The preventive efforts taken by the defendant, including the record of maintenance and any program to ensure compliance.
(5)CA Health & Safety Code § 43031(b)(5)  The innovative nature and the magnitude of the effort required to comply, and the accuracy, reproducibility, and repeatability of the available test methods.
(6)CA Health & Safety Code § 43031(b)(6)  The efforts to attain, or provide for, compliance.
(7)CA Health & Safety Code § 43031(b)(7)  The cooperation of the defendant during the course of the investigation and any action taken by the defendant, including the nature, extent, and time of response of any action taken to mitigate the violation.
(8)CA Health & Safety Code § 43031(b)(8)  For a person who owns a single retail service station, the size of the business.

Section § 43031.5

Explanation

This law states that any penalties collected by the state board for issues related to air pollution are to be placed in a special fund known as the Air Pollution Control Fund. The money from this fund can only be used by the state board for purposes like cleaning up the environment, addressing contamination, or investing in technology to prevent pollution.

The revenues from penalties recovered by the state board pursuant to this chapter shall be deposited in the Air Pollution Control Fund and shall only be expended by the state board for environmental cleanup, abatement, or pollution prevention technology.