Mendocino County Municipal Code Ch. 5.63 Outer Continental Shelf Impact Mitigation and Emergency Response Trust Fund

The Auditor of the County shall establish a separate interest-bearing trust fund entitled "Outer Continental Shelf Impact Mitigation and Emergency Response Trust Fund."

(Ord. No. 3642, adopted 1987.)

Funds deposited in the Outer Continental Shelf Impact Mitigation and Emergency Response Trust Fund (hereafter "Trust Fund") shall be used exclusively as reserves for future expenditures and claims related to projects or elements in the approved County program for expenditure of grant funds allocated to the County under the Coastal Resources and Energy Assistance Program Report, legitimate offshore oil and gas-related emergency responses, and other expenditures and claims approved by the Secretary of Environmental Affairs for the State.

(A) USE IN COASTAL RESOURCES AND ENERGY ASSISTANCE PROGRAM. Trust funds may be used to supplement funds allocated to any project or element of a project described in the County's Final Program Report and incorporated into the grant agreement entered into between the Secretary of Environmental Affairs and the County. Approval by the Secretary of Environmental Affairs must be received prior to the expenditure out of or transfer from the Trust Fund, of any funds exceeding ten percent (10%) of the scheduled budget of the recipient program element or project.

B. USE IN OFFSHORE OIL AND GAS-RELATED EMERGENCY RESPONSES. Trust funds may be used by the County or an authorized agent to respond to an emergency arising from an accident or situation that endangers, or threatens to endanger the safety of life, property, and natural environment. County action must be in response to an emergency that is related to the exploration, extraction, transportation, storage, processing, or refining of any oil or gas in Federal or State waters off the coast of California. The County shall report any such expenditure with the next semiannual Progress and Financial Report for the Secretary of Environmental Affairs' review and approval.

The County shall attempt to reclaim any and all legitimate costs incurred in responding to such emergencies from the responsible parties. All reimbursements for costs incurred by the County in response to such emergencies shall be paid back into the Trust Fund.

C. OTHER USES APPROVED BY THE SECRETARY OF ENVIRONMENTAL AFFAIRS. Trust funds may be used to offset legitimate expenses incurred by the County in exercising its responsibilities to plan, assess, mitigate, permit, monitor, enforce or to provide public services and facilities related to offshore energy development that are consistent with the State's Coastal Management Program, but are not specifically described in the County's Coastal Resources and Energy Assistance Program Report. Any and all expenditures of trust funds for these purposes must receive prior authorization from the Secretary of Environmental Affairs. The County shall submit a request for expenditure of trust funds with a proposed work scope and a detailed line-itemized budget to the Secretary of Environmental Affairs in writing prior to the commitment of trust funds for any of the above activities that are not included in subsections (A) or (B) of this Section. All submissions of expenditure requests will be in accordance with the conditions described in the Program Amendments in the Standard Grant Conditions (see attachment B on file in the office of the Clerk of the Board).

The fiscal requirements for expenditure of the grant funds described in the Standard Conditions in the grant agreement shall apply to the expenditure of funds out of the Trust Fund described in subsections (A), (B) and (C) of this Section.

(Ord. No. 3642, adopted 1987.)

The Coastal Resources and Energy Assistance Act (Public Resources Code Sections 35000, et seq.) authorizes the allocation of Nine Hundred Thirty-six Thousand Dollars ($936,000) in block grant funds for Mendocino County. From such allocation, the County shall place in the Trust Fund such total amount as shall be fixed by the Secretary of Environmental Affairs. In addition to the foregoing fixed amount placed in the Trust Fund, any fine, reimbursement, or assessment made of person(s), or a corporation in conformance with established State or local regulations for emergency responses performed by the County, may be added to the Trust Fund.

(Ord. No. 3642, adopted 1987.)

The balance of the Trust Fund shall be determined by the Board of Supervisors. The Auditor of the County is hereby authorized to accrue the interest to the fund balance or to transfer all interest on the fund balance to an account determined by the Board of Supervisors.

(Ord. No. 3642, adopted 1987.)

No payment or withdrawal from the fund balance shall be made except by specific authorization from the County Administrative Officer for the purposes set forth in Section 5.63.020 of this Chapter.

(Ord. No. 3642, adopted 1987.)

The County shall submit a report on the Trust Fund condition, including expenditures, revenues, and balance, for the Secretary of Environmental Affairs' review and approval. This report shall be on a semiannual basis on April 30th and October 31st each year the Trust Fund is in existence.

(Ord. No. 3642, adopted 1987.)

The Trust Fund shall be in effect for five (5) years from the date of inception. Any extension to this effective life of the Trust Fund will require authorization by the Secretary of Environmental Affairs. On dissolution of the Trust Fund before five (5) years, all unexpended funds shall revert to the State or shall be allocated to activities related to offshore energy development. The County shall submit a request for extension or a proposal for expenditure of the balance, with a detailed work scope and line item budget to the Secretary of Environmental Affairs for approval within sixty (60) days after the dissolution of the Trust Fund. The Secretary of Environmental Affairs shall respond to the proposal within thirty (30) days. All submissions of expenditure requests will be in accordance with the conditions described in the Program Amendments in the Standard Grant Conditions (see attachment B on file in the office of the Clerk of the Board).

(Ord. No. 3642, adopted 1987.)