Pilotage Tariffs in California

Division 5, Chapter 6, Article 1 of the California Harbors and Navigation Code deals with pilotage tariff determination and procedures for pilots in Monterey Bay and the Bays of San Francisco, San Pablo, and Suisun. Article 1 concerns the establishment of pilotage tariff.

Section 1250 requires the board to adopt and publish a pilotage tariff that establishes fair, just, reasonable, and sufficient rates for the provision of a safe, competent, reliable, and efficient pilotage service.

Section 1251 requires the adopted pilotage tariff to be determined by a formula whereby a revenue requirement is equal to the sum of pilot costs and expenses, plus the product of target net income per pilot and the number of pilots. In determining target net income per pilot, all six specified factors must be considered.

In determining the number of pilots, four specified factors must be considered. In determining pilot costs and expenses, seven specified factors are to be considered. The following terms are defined: “number of pilots,” “pilot costs and expenses,” and “target net income per pilot.”

Section 1252 provides that the adopted pilotage tariff may include as part of the tariff for pilotage services the reasonable costs for the setting of tariff rates under this chapter of the Office of Administrative Hearings.

Section 1253 specifies that a petition that is submitted on the basis of a notice of intent to petition filed less than 18 months after the effective date of a pilotage tariff is untimely.

Section 1254 states that the pilotage rates imposed are subject to adjustment. Also, the pilotage rates imposed must remain in effect and be deemed pilotage tariffs set pursuant to this chapter until the rates are adjusted pursuant to this chapter.