(a) The adopted pilotage tariff shall 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.

(b) In determining target net income per pilot, all of the following factors shall be considered:

(1) The professional skills and experience required of a state-licensed pilot and the difficulty, risk, and lifestyle commitment of providing piloting services, as well as associated activities in support of the pilotage operation.

(2) Evidence of compensation for comparable maritime professions, including individuals in other state-regulated pilotage associations, at a minimum considering evidence of the compensation and benefits.

(3) Evidence of the economic and market conditions existing both locally and within the region of any pilotage association used for the purpose of comparison.

(4) Consumer price index and employment cost index.

(5) Individual amounts paid to pilots since the last rate order, or as directed.

(6) Any other factor deemed relevant to the determination of target net income per pilot.

(c) In determining the number of pilots, all of the following factors shall be considered:

(1) The number of licensed pilots determined by a hearing pursuant to Sections 1170.1 and 1170.2.

(2) The number of licensed pilots at the time of the rate hearing.

(3) Any projected changes in the number of licensed pilots.

(4) Any other factor deemed relevant to the determination of the number of pilots.

(d) In determining pilot costs and expenses, all of the following factors shall be considered:

(1) All costs of providing pilotage service.

(2) Any projected changes in the cost of providing pilotage service.

(3) The amount of activity, including number of vessels, size of vessels by gross registered tonnage, length, and draft.

(4) Any recent or projected changes in the amount of vessel activity.

(5) Producer price index and employment cost index.

(6) Total gross and net revenue since the last rate order, including sources of revenue by tariff category.

(7) Any other factor deemed relevant to the cost of the provision of pilotage service.

(e) For purposes of this section, the following definitions apply:

(1) “Number of pilots” means the number of pilots to be used in the formula to determine the revenue requirement.

(2) “Pilot costs and expenses” means all costs and expenses incurred by all pilots collectively in the provision of all pilotage services to be used in the formula to determine the revenue requirement.

(3) “Target net income per pilot” means an individual pilot’s income, including compensation and benefits, to be used in the formula to determine the revenue requirement.

(Added by Stats. 2022, Ch. 769, Sec. 16. (AB 2056) Effective September 29, 2022.)