BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SB 900|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                UNFINISHED BUSINESS 


          Bill No:  SB 900
          Author:   Jackson (D), et al.
          Amended:  8/19/16  
          Vote:     21 

           SENATE NATURAL RES. & WATER COMMITTEE:  8-1, 3/29/16
           AYES:  Pavley, Allen, Hertzberg, Hueso, Jackson, Monning,  
            Vidak, Wolk
           NOES:  Stone

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/27/16
           AYES:  Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

           SENATE FLOOR:  32-5, 6/1/16
           AYES:  Allen, Bates, Beall, Berryhill, Block, Cannella, De  
            León, Galgiani, Glazer, Hall, Hancock, Hernandez, Hertzberg,  
            Hill, Hueso, Huff, Jackson, Lara, Leno, Leyva, Liu, McGuire,  
            Mendoza, Mitchell, Monning, Nguyen, Pan, Pavley, Roth, Vidak,  
            Wieckowski, Wolk
           NOES:  Anderson, Gaines, Moorlach, Morrell, Stone
           NO VOTE RECORDED:  Fuller, Nielsen, Runner

           ASSEMBLY FLOOR:  76-2, 8/24/16 - See last page for vote

           SUBJECT:   State lands:  coastal hazard removal and remediation  
                     program


          SOURCE:    California State Controller Betty Yee


          DIGEST:  This bill establishes a coastal hazard remediation  
          program at the State Lands Commission (SLC).










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          Assembly Amendments reduce from $2 million to $500,000 the  
          annual amount transferred from the Land Bank Fund to the SLC,  
          and requires the SLC to prioritize its actions pursuant to this  
          bill based on available resources. 


          ANALYSIS:   Existing law establishes the SLC  pursuant to Public  
          Resources Code Section 6101 et seq., as an independent  
          commission comprised of the Lieutenant Governor, the State  
          Controller, and the Director of Finance. It was established in  
          1938. The SLC manages the state's 4 million acres of tidelands  
          and submerged lands and the beds of navigable rivers, streams,  
          lakes, bays, estuaries, inlets, and straits. In the marine  
          context, the SLC has broad authority over sovereign lands  
          including rivers and sloughs, lakes, tidelands, and submerged  
          lands. It also manages energy and mineral resource development  
          through leases, has an oil spill prevention program at marine  
          oil terminals and offshore platforms, and has an invasive  
          species prevention program from large ocean-going vessels. 


          This bill: 


          1)Requires SLC, within two years of an appropriation of funds,  
            to administer the program to do the following: 


             a)   Complete an in-depth inventory of legacy (i.e.,  
               abandoned) oil and gas wells and other coastal hazards  
               along the California coastline and determine high-priority  
               hazards and legacy oil and gas wells to remediate; 


             b)   Survey, study, and monitor oil seepage in state waters  
               and tidelands under its jurisdiction to determine oil  
               seepage locations, rates, and environmental impacts; and,


             c)   Begin the process of remediating improperly abandoned  
               legacy oil and gas wells that have a high risk of leaking  
               oil and, with any remaining funds, remove other identified  








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               coastal hazards.  


          2)Authorizes SLC to seek and accept gifts, bequests, devises, or  
            donations to fund the program. 


          3)Authorizes SLC, in cooperation with the Division of Oil, Gas,  
            and Geothermal Resources (DOGGR), to seek to abandon (properly  
            close) legacy oil and gas wells that present a hazard to  
            public health and safety and the environment.  


          4)Requires SLC to annually report to the Legislature the  
            activities and accomplishments of the program.  


          5)Requires SLC to prioritize its actions undertaken pursuant to  
            this bill based on available resources. 


          6)Defines the following terms: 


             a)   "Coastal hazard" includes, but is not limited to, legacy  
               oil and gas wells and human-made structures, including  
               piers, jetties, groins, seawalls, and facilities associated  
               with past oil extraction and other commercial operations,  
               that pose a hazard to the public heath and safety; and, 


             b)   "Legacy oil and gas well" as a well drilled near shore,  
               before current abandonment standards, where there is little  
               or no information on the well's abandonment procedure and  
               there is no viable company with the responsibility to  
               reabandon the well, should it start leaking or pose a   
               threat to the environment or the public health and safety.   



          7)Transfers $500,000 from the Land Bank Fund annually to the SLC  
            for the implementation of the program.  








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          8)States legislative findings regarding legacy oil and gas wells  
            and their impacts.  

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          According to the Assembly Appropriations Committee, the  
          redirection of $500,000 from the GF to the Land Bank Fund in FY  
          2017-18 and up to $500,000 per year thereafter to ensure the  
          unencumbered funds in the Land Bank Fund are available to the  
          SLC for program implementation. One-time SLC cost of  
          approximately $100,000 to complete the in-depth inventory of  
          legacy wells from the Land Bank Fund. Annual SLC costs of  
          approximately $50,000 to survey and monitor oil seepage and  
          annual SLC costs of approximately $200,000 to remove coastal  
          hazards also from the Land Bank Fund.   Unknown costs to the  
          Land Bank Fund to plug and abandon legacy wells, potentially in  
          the $1 million per well range if the well is in the tidal zone.   
          DOGGR costs are absorbable


          SUPPORT:   (Verified8/17/16)


          California State Controller Betty Yee (source) 
          Azul 
          Black Surfers Collective 
          California Coastkeeper Alliance
          California Coastal Protection Network 
          California League of Conservation Voters 
          California State Lands Commission 
          Center for Biological Diversity 
          Clean Water Action 
          Committee for Green Foothills
          Defenders of Wildlife 
          Endangered Habitats League
          Environment California 
          Environmental Defense Center 
          Environmental Working Group 








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          Get Oil Out! 
          GREENSPACE 
          Cambria Land Trust 
          Heal the Ocean 
          League of Women Voters of California 
          Natural Resources Defense Council 
          Santa Barbara Channelkeeper 
          Santa Barbara County 
          Santa Barbara Women's Political Committee 
          Save the Bay 
          Sierra Club California 
          Smith River Alliance 
          Surfrider Foundation 
          The Ocean Foundation 
          The Otter Project 
          Trust for Public Land 
          WILDCOAST


          OPPOSITION:   (Verified8/17/16)


          None received


          ARGUMENTS IN SUPPORT:   California State Controller Betty Yee is  
          the sponsor of the bill. Along with the other supporters, she is  
          quite concerned by the fact that the SLC estimates that there  
          are approximately 200 "legacy" oil wells in California, the  
          majority of which are in Santa Barbara County near Summerland  
          and Ellwood beaches and along the Central Coast. Controller Yee  
          is joined by in support by the SLC, the County of Santa Barbara,  
          and Supervisor Salud Carbajal. 

          The SLC, Controller Yee, and many of the other supporters are  
          also actively in support of the in-depth study of coastal  
          hazards, the removal of other coastal hazards unrelated to oil  
          and gas production, and the monitoring of "natural seepage." 

          The SLC pointed out that drilling activity on tidelands occurred  
          before the process was regulated and that there was little if  
          any oversight of abandoned activities. Also, early coastal  








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          protective structures, such as seawalls and groins, have  
          deteriorated and are now public safety hazards. In both cases,  
          because there are no identifiable responsible parties, the State  
          of California is responsible for removing and remediating these  
          hazards. 

          The SLC argues that it has a good track record of removing and  
          remediating coastal hazards when funding is provided. 

          Sierra Club California states that while the visual  
          infrastructure of old oil operations has been removed, many of  
          these wells were not properly capped, causing fresh oil to foul  
          the ocean and beaches on a regular basis. Additionally, it notes  
          that the Refugio oil spill in 2015 highlighted the state's lack  
          of reliable data on the amount of natural oil seepage in state  
          waters which underscores the importance of the study and  
          monitoring provision regarding natural seepage that is in the  
          bill. 

          Many of these same points are also made by the other nonprofit  
          conservation groups that are in support, including Heal the  
          Ocean, the Environmental Defense Center, Get Oil Out!, and the  
          Santa Barbara Channelkeeper. 



           ASSEMBLY FLOOR:  76-2, 8/24/16
           AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,  
            Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,  
            Cooper, Dababneh, Dahle, Dodd, Eggman, Frazier, Beth Gaines,  
            Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,  
            Gomez, Gonzalez, Gray, Hadley, Roger Hernández, Holden, Irwin,  
            Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk,  
            Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark  
            Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams,  
            Wood, Rendon
           NOES: Grove, Harper
           NO VOTE RECORDED: Daly, Gordon









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          Prepared by:William Craven / N.R. & W. / (916) 651-4116
          8/25/16 17:34:49


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