Pilotage Rates in California

Division 5, Chapter 5 of the California Harbors and Navigation Code deals with pilotage rates for pilots in Monterey Bay and the Bays of San Francisco, San Pablo, and Suisun.

Section 1190 provides that every vessel spoken inward or outward bound must pay the specified rate of bar pilotage through the Golden Gate and into or out of the Bays of San Francisco, San Pablo, and Suisun. The rate specified must apply only to a pilotage that passes through the Golden Gate to or from the high seas to or from a berth within an area bounded by the Union Pacific Railroad Bridge to the north and Hunter’s Point to the south.

Section 1190.1 states that every vessel that uses a pilot under this division while navigating the waters of Monterey Bay must pay the rate provided by Section 1190.

Section 1190.3 requires an additional surcharge imposed per each movement of a vessel using pilot services as is necessary and authorized by the board to recover the costs of the pilot associated with a catastrophic event. This surcharge is identified as a catastrophic event surcharge on the invoice of the pilot and separately accounted.

Section 1191 includes legislative findings and declarations about adopting a schedule of pilotage rates providing fair and reasonable return to pilots engaged in ship movements or special operations for those movements or operations that are not specified.

Section 1191.1 provides that a vessel using pilots for ship movements or special operations that do not constitute bar pilotage are required to pay the pilotage rates established in this section.

Section 1192 states that, if a vessel that is subject to the payment of pilotage enters any port of Monterey Bay and the Bays of San Francisco, San Pablo, or Suisun solely by reason of being in distress or requiring care, it is required to pay one-half the full pilotage rates.

Section 1193 specifies that only the two specified noncommercial vessels that use pilotage services are exempt from the pilotage fees and surcharges, except for the board operations surcharge.

Section 1194 requires an incremental rate of additional mills per high gross registered ton as is necessary and authorized by the board to recover the pilots’ costs of obtaining new pilot boats. The board may adjust the amount of the surcharge established pursuant to this subdivision as necessary to efficiently administer the pilot boat surcharge.

Net proceeds from the sale of existing pilot boats are used to reduce the debt on the new pilot boats. The board requires a final determination of all accounting of all necessary and authorized costs upon the delivery of a new pilot boat and compare to the funding preliminarily determined to be necessary and authorized by the board to recover the pilots’ costs.

Section 1194.1 states that the moneys charged and collected each month from the pilot boat surcharge is to be paid to the Board of Pilot Commissioners’ Special Fund and credited to the Pilot Boat Surcharge Account. The moneys are to be used only to fund the pilot boat costs of obtaining new pilot boats and of funding design and engineering modifications for the purposes of extending the service life of existing pilot boats.

Section 1195 requires there to be a surcharge in an amount established by the board for each movement of a vessel using pilot services for each pilot trainee who is enrolled in the pilot trainee training program established by the board. The moneys charged and collected each month from the pilot trainee surcharge is to be paid to the board. The moneys are to be used only to fund the pilot trainee training program in the manner established by the board.

Section 1195.1 states that the moneys charged and collected each month from the pilot trainee surcharge must be paid to the Board of Pilot Commissioners’ Special Fund and the moneys paid are used only to fund the pilot trainee training program.

Section 1195.3 requires expenses of the pilot trainee program to include all costs incurred by the board in the operation and administration of the pilot trainee training program and all costs resulting from any contracts entered into for the purchase or lease of goods and services required by the board.

Section 1196 requires there to be a surcharge in an amount established by the board for each movement of a vessel using pilot services for the pilot continuing education program established by the board. The moneys charged and collected each month from the pilot continuing education program surcharge must be paid to the board. The moneys are used only to fund the pilot continuing education program in the manner established by the board.

Section 1196.1 states that the moneys charged and collected each month from the pilot continuing education surcharge are paid to the Board of Pilot Commissioners’ Special Fund and are used only to fund the pilot continuing education program.

Section 1196.3 requires pilot continuing education expenses to include all costs incurred by the board in the operation and administration of the pilot continuing education program and all costs resulting from any contracts entered into for the purchase or lease of goods and services required by the board.

Section 1196.4 provides that the costs resulting from the provision of continuing education for currently licensed pilots regarding instruction in the proper utilization of portable pilot unit equipment and software are generally considered pilot continuing education expenses.

Section 1196.5 requires the board to contract with an independent entity to conduct a study of the effects of work and rest periods on psychological ability and safety for pilots. The board has to promulgate regulations for pilots establishing requirements for adequate rest periods intended to prevent pilot fatigue.

Section 1198 provides that the rates and charges for pilotage services do not include the cost of primary marine insurance from liability arising from negligence or errors in judgment in connection with the provision of pilotage service by pilots, organizations of pilots, or their officers or employees.

A pilot who holds a state license for the Bays of San Francisco, San Pablo, and Suisun is required to arrange to have available, upon advance written notice, trip insurance, with coverage limits of $36 million, naming as insureds the pilot, any organization of pilots to which the pilot belongs, and their officers and employees, and insuring the named insureds against any civil claim, demand, suit, or action by whomsoever asserted, arising out of, or relating to, directly or indirectly, acts or omissions of the insureds in connection with the provision of pilotage service, except willful misconduct.

Every vessel, owner, operator, or demise or bareboat charterer hiring a pilot with a state license for the Bays of San Francisco, San Pablo, and Suisun is required to either defend, indemnify, and hold harmless pilots, or alternatively, notify pilots of an intent to pay for trip insurance.

Section 1199 requires there to be temporary transit fees imposed as is necessary and authorized by this section. The temporary transit fee for all vessels moved across the bar except for vessels calling at San Francisco Piers 27 and 35 is $1,000.