BILL NUMBER: AB 2503 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 20, 2010
AMENDED IN SENATE AUGUST 17, 2010
AMENDED IN SENATE AUGUST 10, 2010
AMENDED IN SENATE JUNE 21, 2010
AMENDED IN ASSEMBLY MAY 28, 2010
AMENDED IN ASSEMBLY APRIL 20, 2010
AMENDED IN ASSEMBLY APRIL 5, 2010
INTRODUCED BY Assembly Member John A. Perez
FEBRUARY 19, 2010
An act to add Chapter 5.5 (commencing with Section 6600) to Part 1
of Division 6 of the Fish and Game Code, and to add Division 37
(commencing with Section 71500) to the Public Resources Code,
relating to ocean resources.
LEGISLATIVE COUNSEL'S DIGEST
AB 2503, as amended, John A. Perez. Ocean resources: marine
resources and preservation.
Existing law establishes a California Artificial Reef Program,
administered by the Department of Fish and Game, to include the
placement of artificial reefs, as defined, in state waters and a
prescribed study of existing successful reefs and new reefs to
determine design criteria.
This bill would enact the California Marine Resources Legacy Act
to establish a program to allow partial removal of offshore oil
structures, administered by the department. The act would authorize
the department to conditionally approve the partial removal of
offshore oil structures, if specified criteria are satisfied,
including a finding that the alternative of partial removal provides
a net environmental benefit and substantial cost savings compared to
the alternative of full removal of these structures. The act would
require the Ocean Protection Council, for purposes of determining
whether partial removal provides a net environmental benefit, to
establish specified criteria, to consult with the department, the
California Coastal Commission, the State Lands Commission, the
California Ocean Service Trust, and other responsible agencies as to
those criteria, and would require that partial removal comply with
the California Environmental Quality Act. The act would require the
State Lands Commission to determine the cost savings of partial
removal, and would require the owner or operator
applicant , upon conditional approval for conversion, to
apportion a percentage of the cost-savings funds in accordance with a
prescribed schedule to the California Endowment for Marine
Preservation, the county immediately adjacent to the location of the
facility, the Fish and Game Preservation Fund,
the Coastal Act Services Fund, and the General Fund. The act would
prohibit the department from taking title to a decommissioned
offshore oil structure in open coastal waters unless prescribed
requirements are met. The bill would require the State Coastal
Conservancy, upon the department's final approval of the first
application to create and update, as specified, an advisory spending
plan for cost savings deposited in the endowment. The conservancy
would be required to submit a copy of the spending plan and all
updates to the Legislature, and the Board of Directors of the
California Endowment for Marine Preservation.
The bill would establish the California Endowment for Marine
Preservation, subject to the Nonprofit Public Benefit Corporation
Law, in order to create a permanent source of funding for projects
and programs that will conserve, protect, restore, and enhance the
open coastal and marine resources of the state. The endowment would
be governed by a board of directors, with membership and duties
prescribed by the bill.
The bill would require the endowment to coordinate its activities
with the Department of Fish and Game, the California Coastal
Commission, the San Francisco Bay Conservation and Development
Commission, the State Lands Commission, and appropriate federal
agencies. The bill would require the endowment to allocate 10% of any
funds received pursuant to the act to qualified state agencies
within 24 months of receipt of the funds.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 5.5 (commencing with Section 6600) is added to
Part 1 of Division 6 of the Fish and Game Code, to read:
CHAPTER 5.5. CALIFORNIA MARINE RESOURCES LEGACY ACT
Article 1. General Provisions
6600. This act shall be known, and may be cited, as the
California Marine Resources Legacy Act.
6601. The Legislature finds and declares all of the following:
(a) California's extraordinary marine biological diversity is a
vital asset to the state and nation. The diversity of species and
ecosystems found in the ocean waters off the state is important to
public health and well-being, ecological health, and ocean-dependent
economic activities.
(b) Although the state maintains various programs to protect,
restore, and enhance California's marine resources, the effect of
these programs is limited by inadequate and unstable funding.
(c) There is an existing permitting process for decommissioning
and fully removing offshore oil platforms or production facilities.
Owners and operators are currently responsible for the full cost of
decommissioning and remediating those facilities.
(d) According to the United States Department of the Interior, the
23 oil and gas platforms in federal waters off the California coast
are expected to reach the end of their useful production lifetimes
and be decommissioned between 2015 and 2030.
(e) The California Ocean Science Trust in its June 2010 study,
titled "Evaluating Alternatives for Decommissioning California's
Offshore Oil and Gas Platforms: A Technical Analysis to Inform State
Policy," analyzed a number of decommissioning alternatives to full
rig removal and determined that the most likely alternative is to
remove the upper portion of the rig and leave the remainder of the
structure in place.
(f) The California Ocean Science Trust report and other studies
indicate that the partial removal option can result in a net benefit
to the marine environment and substantial cost savings compared to
full removal of an oil platform or production facility.
(g) Provided that partial removal of an oil rig would result in a
net benefit to the marine environment compared to full removal, it is
in the interest of the state that a portion of the cost savings that
result from partial removal should be shared with the citizens of
this state to protect and enhance the state's marine resources.
(h) It is also in the interest of the state that any program to
allow partial removal of oil platforms meet all of the following
criteria:
(1) Partial removal shall result in a net benefit to the marine
environment compared to full removal.
(2) The determination of whether partial removal would result in a
net benefit to the marine environment should be made only after
scientific study and evaluation.
(3) Because the location and depth of an oil platform, as well as
other ecological factors, create a unique environment, each oil
platform shall be subject to scientific study and evaluation before
partial removal is allowed.
(4) The costs of the scientific study and evaluation should be
borne by the owner or operator of the oil platform for which
partial removal is being considered applicant .
6602. For purposes of this chapter, the following terms have the
following meanings:
(a) "Applicant" means the owner or operator of an offshore oil
structure in state or federal waters or another party responsible for
decommissioning an offshore oil structure in state or federal waters
who applies pursuant to this chapter to carry out partial removal of
the structure.
(a)
(b) "Commission" means the State Lands Commission.
(b)
(c) "Conservancy" means the State Coastal Conservancy.
(c)
(d) "Cost savings" means the difference between the
estimated cost to the owner or operator of an oil platform
applicant of complete removal of an oil platform
as required by state and federal leases and the estimated costs to
the owner or operator applicant of
partial removal of the oil platform pursuant to this chapter.
(d)
(e) "Council" means the Ocean Protection Council.
(e)
(f) "Endowment" means the California Endowment for
Marine Preservation established in Division 37 (commencing with
Section 71500) of the Public Resources Code.
(f)
(g) "Exclusive economic zone (EEZ)" means the zone as
measured from the mean high tide line seaward to 200 nautical miles,
as set forth in Presidential Proclamation 5030 of March 10, 1983, in
which the United States proclaimed jurisdiction over the resources of
the ocean within 200 miles of the coastline.
(g)
(h) "National Fishing Enhancement Act of 1984" means
Title II of Public Law 98-623.
(h)
(i) "Offshore oil structure" means platforms, piers,
and artificial islands located seaward of mean lower low water, used
for oil and gas exploration, development, production, processing, or
storage.
(i)
(j) "Oil" means any kind of petroleum, liquid
hydrocarbons, natural gas, or petroleum products or any fraction or
residues therefrom.
(j)
(k) "Open coastal marine resources" means those marine
resources that use open coastal waters as their habitat.
(k)
(l) "Open coastal waters" means the area composed of
the submerged lands of the state that are below the mean lower low
water, extending seaward to the boundaries of the exclusive economic
zone.
(l)
(m) "Partial removal" means an alternative to full
removal of an offshore oil structure, in compliance with all
requirements of this chapter.
(m)
(n) "State waters" means waters within the seaward
boundary of the state as identified in Section 2 of Article III of
the California Constitution.
6603. (a) This chapter establishes a program through which an
owner or operator of an offshore oil structure
applicant may voluntarily apply to the department to carry
out partial removal of the structure.
(b) The program established pursuant to this chapter shall be
deemed consistent with, and part of, the California Artificial Reef
Program pursuant to Article 2 (commencing with Section 6420) of
Chapter 5 for purposes of compliance with federal law including the
National Fishing Enhancement Act of 1984.
(c) Except as specified in Section 6604, the department shall
serve as the primary authority for carrying out the program,
including review and approval of applications to partially remove an
offshore oil structure in state or federal waters and
management and operation of decommissioned offshore oil structures
in state or federal waters approved pursuant to this
chapter.
(d) Final approval of an application shall not be granted until
the owner or operator applicant
complies with all requirements of the chapter, including the payment
of all costs to the state to review and approve the proposed project
as required by subdivision (b) of Section 6612 and the transmittal of
the required portion of cost savings to the endowment and other
parties as required by Section 6618.
(e) The department may obtain funds for the planning, development,
maintenance, and operation of an offshore oil structure transferred
to the department pursuant to this chapter and may accept gifts,
subventions, grants, rebates, reimbursements, and
subsidies from any lawful source.
(f) The department may adopt regulations to implement this
chapter.
6604. (a) A proposed project to partially remove an offshore oil
structure pursuant to this chapter is a project as defined in
subdivision (c) of Section 21065 of the Public Resources Code and is
therefore subject to the California Environmental Quality Act
(Division 13 (commencing with Section 21000) of the Public Resources
Code) and shall be reviewed pursuant to the time limits established
in Section 21100.2 of the Public Resources Code.
(b) The commission Natural Resources
Agency shall serve as the lead agency for the environmental
review of any project proposed pursuant to this chapter.
6605. (a) Nothing in this chapter is intended, and it shall not
be construed, to limit or affect the authority or duties of any state
or local agency, including, but not limited to, the commission, the
council, and the California Coastal Commission.
(b) Nothing in this chapter shall be construed to do any of the
following:
(1) Relieve the applicant or prior owner or operator of
an offshore oil structure from any continuing liability under any of
the following, if the liability is associated with seepage or
release of oil from an offshore oil structure that was decommissioned
pursuant to an order of, or any action taken by, and in accordance
with, any applicable rule or regulation of, any federal or state
agency:
(A) Any state statute or regulation regarding liability for the
spilling of oil.
(B) The federal Oil Pollution Act of 1990 (33 U.S.C. Sec. 2701 et
seq.).
(C) Any other provision of law.
(2) Establish any new liability on the part of the state.
(3) Require any agency with jurisdiction to approve the partial
removal of an offshore oil structure.
(4) Promote, encourage, or facilitate offshore oil exploration,
development, and production within California's open coastal waters.
(5) Require the United States Department of the Interior or the
commission to modify, amend, or alter an existing oil and gas lease
to approve partial removal of an offshore oil structure.
(6) Alter any existing law or applicable rule or regulation of any
federal or state agency that establishes liability for damages
arising with respect to artificial reefs or reef materials,
including, but not limited to, components of decommissioned oil
structures.
(7) Alter any existing law or policy that protects natural reefs.
(8) Approve any particular method of abandonment.
(c) Any partial removal of an offshore oil structure pursuant to
this chapter shall not be used or counted as mitigation for any
environmental impacts or natural resource damages.
Article 2. Partial Removal of Offshore Oil Structures
6610. (a) An owner or operator , or other party responsible
for decommissioning, of an offshore oil structure may apply to
the department for approval to partially remove the structure
pursuant to the requirements of this chapter.
(b) The department shall design and make available to potential
applicants an application process that will facilitate review of the
application by the department in a timely manner, consistent with
Section 6604.
(c) Upon receipt of an application pursuant to this section, the
department shall transmit a copy of the application to the council,
the commission, and the endowment, which shall constitute notice to
these agencies.
6611. (a) The application for partial removal shall include, at a
minimum, all of the following:
(1) The applicant's plan and schedule for partial removal of the
offshore oil structure, including removal of any portion of the
structure as appropriate to maintain navigational safety.
(2) A determination of the estimated cost of partial removal and
the estimated cost of full removal.
(3) A determination of the environmental impacts and benefits
to the marine environment from partial removal and full
removal of the structure.
(4) Identification of all permits, leases, and approvals required
by any governmental agency, including a permit issued by the United
States Army Corps of Engineers if required for offshore
oil structures located in federal waters , and a
lease issued by the commission if the proposed project involves state
tidelands and submerged lands, and a proposed schedule for the
applicant or the state to receive those permits, leases,
and approvals.
(b) The department may require the applicant to submit a
management plan for the structure following partial removal,
including maintenance in a manner consistent with navigational
safety, enforcement, and monitoring.
(c) The information submitted pursuant to subdivisions (a) and (b)
shall be used by the department for advisory purposes only. Final
determinations regarding the partial removal and management of the
offshore oil structure, net benefit to the marine environment from
partial removal, and cost savings from partial removal shall be made
solely by the department, council, and commission, as specified in
this chapter, based on their independent review and judgment.
6612. (a) Upon receipt of an application to partially remove an
offshore oil structure pursuant to this chapter, the department shall
determine whether the application is complete and includes all
information needed by the department.
(b) (1) Upon a determination that the application is complete, the
applicant shall demonstrate to the satisfaction of the
department that it provide surety bonds executed by an
admitted surety insurer, irrevocable letters of credit, trust funds,
or other forms of financial assurances, determined by the
department to be available and adequate, to ensure that the
applicant will provide sufficient funds to the department,
council, commission, and conservancy to carry out all required
activities pursuant to this article, including all of the following:
(A) Environmental review of the proposed project pursuant to
Section 6604.
(B) A determination of net environmental benefit pursuant to
Section 6613.
(C) A determination of cost savings pursuant to Section 6614.
(D) Preparation of a management plan for the structure pursuant to
Section 6615.
(E) Implementation of the management plan and ongoing maintenance
of the structure after the department takes title pursuant to Section
6620.
(F) Development of an advisory spending plan pursuant to Section
6621.
(G) Other activities undertaken to meet the requirements of this
article, including the costs of reviewing applications for
completeness, reviewing, approving, and permitting the proposed
project, which includes the costs of determining whether the project
meets the requirements of all applicable laws and regulations and the
costs of environmental assessment and review.
(2) The department shall consult with the council, commission, and
conservancy in determining appropriate funding for activities to be
carried out by those agencies.
(3) The funds provided pursuant to paragraph (1) shall not be
considered in the calculation of cost savings pursuant to Section
6614 or the apportionment of cost savings pursuant to Section 6618.
(c) The first person to file an application on and after January
1, 2011, to partially remove an offshore oil structure pursuant to
this chapter , under this chapter shall pay, in
addition to all costs identified under subdivision (b), the startup
costs incurred by the department or the commission to implement this
chapter, including the costs to develop and adopt regulations
pursuant to this chapter. This payment of startup costs shall be
reimbursed by the department as provided in paragraph (3) of
subdivision (c) of Section 6618.
(d) As soon as feasible after reaching the agreement pursuant to
subdivision (b), the lead agency shall begin the environmental review
of the proposed project as required pursuant to Section 6604.
6613. (a) The council shall determine whether the partial removal
of an offshore oil structure pursuant to this chapter provides a net
benefit to the marine environment compared to the full removal of
the structure.
(b) As a necessary prerequisite to determining net environmental
benefit as required in subdivision (a), the council shall, upon
receipt of its initial application from the department pursuant to
Section 6610, establish appropriate criteria for evaluating the net
environmental benefit of full removal and partial removal of offshore
oil structures.
(1) The criteria shall include, but are not limited to, the depth
of the partially removed structure in relation to its value as
habitat and the location of the structure, including its proximity to
other reefs, both natural and artificial.
(2) The criteria shall not include any consideration of the funds
to be generated by the partial removal of the structure.
(3) In determining the criteria, the council shall consult with
appropriate entities, including, but not limited to, the department,
the commission, the California Coastal Commission, and the California
Ocean Science Trust.
(4) The council shall establish the criteria in time to use them
in making its initial determination of net environmental benefit
pursuant to this section.
(c) Upon certification of environmental documents pursuant to the
California Environmental Quality Act, the council shall, based on the
criteria developed pursuant to subdivision (b) and other relevant
information, determine whether partial removal of the structure would
provide a net benefit to the marine environment compared to full
removal of the structure. In making the determination, the council
shall, at a minimum, take into account the following:
(1) The contribution of the proposed structure to protection and
productivity of fish and other marine life.
(2) Any adverse impacts to biological resources or water quality,
or any other marine environmental impacts, from the full removal of
the facility that would be avoided by partial removal as proposed in
the application.
(3) Any adverse impacts to biological resources or water quality,
or any other marine environmental impacts, from partial removal of
the structure as proposed in the application.
(4) Any benefits to the marine environment that would result from
the full removal of the structure or from partial removal as proposed
in the application.
(5) Any identified management requirements and restrictions of the
partially removed structure, including, but not limited to,
restrictions on fishing or other activities at the site.
(d) Benefits resulting from the contribution of cost savings to
the endowment shall not be considered in the determination of net
environmental benefit.
(e) The council may contract or enter into a memorandum of
understanding with any other appropriate governmental or
nongovernmental entity to assist in its determination of net
environmental benefit.
(f) The determination made pursuant to this section and submitted
to the department by the council shall constitute the final
determination and may shall not be
revised except by the council.
(g) The council shall take all feasible steps to complete its
determination in a timely manner that accommodates the department's
schedule for consideration of the application.
6614. (a) Upon certification of the appropriate environmental
documents by the lead agency, the commission shall determine, or
cause to be determined, the cost savings that will result from the
partial removal of an offshore oil structure as proposed in the
application compared to full removal of the structure.
(b) The commission shall ensure that any cost savings are
accurately and reasonably calculated. The commission may contract or
enter into a memorandum of understanding with any other appropriate
governmental agency or other party, including an independent expert,
to ensure that cost savings are accurately and reasonably calculated.
(c) The commission shall consider any estimates of cost savings
made by any governmental agency, including, but not limited to, the
Internal Revenue Service, the Franchise Tax Board, and the United
States Department of the Interior. The commission shall include in
its determination a written explanation, which shall be available to
the public, of the differences, and the reasons for the differences,
between the commission's determination of cost savings and any other
estimates of cost savings the commission considered.
(d) The applicant shall provide all necessary documentation, as
determined by the commission, to allow the commission to calculate
the amount of cost savings. Failure to provide information requested
by the commission in a timely manner may result in rejection of the
application.
(e) The determination made pursuant to this section and submitted
to the department by the commission shall constitute the final
determination and may shall not be
revised except by the commission.
(f) The commission shall take all feasible steps to complete its
determination in a timely manner that accommodates the department's
schedule for consideration of the application.
6615. Prior to granting conditional approval of an application
for partial removal of an offshore oil structure, the department
shall do all of the following:
(a) Prepare a plan to manage the offshore oil structure after its
partial removal. The plan shall include measures to manage fishery
and marine life resources at and around the structure in a manner
that will ensure that the net benefits to the marine environment
identified pursuant to Section 6613 are maintained or enhanced.
Management Consistent with state and federal
law, management measures may include a buffer zone in which
fishing or removal of marine life is restricted or prohibited.
(b) Provide an opportunity for public comment on the application
pursuant to the California Environmental Quality Act.
(c) Hold a public hearing in the county nearest to the location of
the offshore oil structure that is the subject of the application.
6616. The department may grant conditional approval of an
application for partial removal of an offshore oil structure only if
all of the following criteria are satisfied:
(a) The partial removal of the offshore oil structure and the
planning, development, maintenance, and operation of the structure
would be consistent with all applicable state, federal, and
international laws, including, but not limited to, all of the
following:
(1) The federal Magnuson-Stevens Fishery Conservation and
Management Act (16 U.S.C. Sec. 1801 et seq.).
(2) The federal National Fishing Enhancement Act of 1984 (33
U.S.C. Sec. 2101 et seq.).
(3) The federal Coastal Zone Management Act (16 U.S.C. Sec. 1451
et seq.).
(4) The California Coastal Management Program.
(5) The Marine Life Management Act (Part 1.7 (commencing with
Section 7050)).
(6) The Marine Life Protection Act (Chapter 10.5 (commencing with
Section 2850) of Division 3).
(7) State and federal water quality laws.
(8) Navigational safety laws.
(b) The partial removal of the offshore oil structure provides a
net benefit to the marine environment compared to full removal of the
structure, as determined pursuant to Section 6613.
(c) The cost savings that would result from the conversion of the
offshore oil platform or production facility have been determined
pursuant to Section 6614.
(d) The owner or operator of the offshore oil structure
applicant has provided sufficient funds
pursuant to the agreement required in consistent with
subdivision (b) of Section 6612.
(e) The department and the applicant have entered into a
contractual agreement whereby the applicant will provide sufficient
funds for overall management of the structure by the department,
including, but not limited to, ongoing management, operations,
maintenance, monitoring, and enforcement as these relate to the
structure.
(f) The department has entered into an indemnification agreement
with the owner or operator of the structure
applicant that indemnifies the state and the department
, to the extent permitted by law, against any and all liability
that may result, including, but not limited to, active negligence,
and including defending the state and the department
against any claims against the state for any actions the state
undertakes pursuant to this article. The agreement may be in the
form of an insurance policy, cash settlement, or other mechanism as
determined by the department. In adopting indemnification
requirements for the agreement, the department shall ensure that the
state can defend itself against any liability claims against the
state for any actions the state undertakes pursuant to this article
and pay any resulting judgments. The department shall consult with
and, as necessary, use the resources of the office of the Attorney
General in preparing and entering into the indemnification agreement.
(g) The owner or operator of the structure
applicant has applied for and received all required permits,
leases, and approvals issued by any governmental agency, including,
but not limited to, a lease issued by the commission if the proposed
project involves state tidelands and submerged lands. For structures
located in federal waters, all of the following requirements shall be
met:
(1) The department and the owner or operator of the structure
reach an agreement providing for the department to take title to the
platform or facility as provided in Section 6620.
(2) The department acquires the permit issued by the United States
Army Corps of Engineers.
(3) The partial removal of the structure is approved by the Bureau
of Ocean Energy Management, Regulation and Enforcement of the United
States Department of the Interior.
6617. Upon a finding that all the requirements of Sections 6615
and 6616 have been met, the department shall grant conditional
approval to an application for partial removal of an offshore oil
structure.
6618. (a) The cost savings from the partial removal of an
offshore oil structure, as determined pursuant to Section 6614, shall
be apportioned and transmitted as described in this section.
(b) Upon receipt of conditional approval pursuant to Section 6617,
the owner or operator of the structure shall apportion and directly
transmit a portion of the total amount of the cost savings to the
entities in subdivision (c) as follows:
(1) Fifty-five percent, if transmitted before January 1, 2017.
(2) Sixty-five percent, if transmitted on or after January 1,
2017, and before January 1, 2023.
(3) Eighty percent, if transmitted on or after January 1, 2023.
(c) Of the total amount of the cost savings to be transmitted
pursuant to subdivision (b), the owner or operator of the
structure applicant shall directly transmit the
following amounts to the following entities:
(1) Eighty-five percent shall be deposited into the California
Endowment for Marine Preservation established pursuant to Division 37
(commencing with Section 71500) of the Public Resources Code.
(2) Three percent shall be deposited
with the board of supervisors of the county immediately adjacent to
the location of the facility prior to its decommissioning. The amount
paid to the county shall be managed pursuant to the provisions of
paragraph (1) of subdivision (d) of Section 6817 of the Public
Resources Code.
(3)
(2) Ten percent shall be deposited into the General
Fund.
(3) Two percent shall be deposited into the Fish and Game
Preservation Fund for expenditure, upon appropriation by the
Legislature, by the department to pay any costs imposed by this
chapter that are not otherwise provided for pursuant to subdivision
(b) of Section 6612 and subdivision (e) of Section 6616. Any moneys
remaining in the Fish and Game Preservation Fund, after providing for
these costs, shall be used, upon appropriation by the Legislature,
first to reimburse the payment of the startup costs described in
subdivision (c) of Section 6612, and thereafter to conserve, protect,
restore, and enhance the coastal and marine resources of the state
consistent with the mission of the department.
(4) Two percent shall be deposited into the Coastal Act Services
Fund, established pursuant to Section 30620.1 of the Public Resources
Code, and shall be allocated to support state agency work involving
research, planning, and regulatory review associated with the
application and enforcement of coastal management policies in state
and federal waters pursuant to state and federal quasi-judicial
authority over offshore oil and gas development.
(5) One percent shall be deposited with the board of supervisors
of the county immediately adjacent to the location of the facility
prior to its decommissioning. The amount paid to the county shall be
managed pursuant to paragraph (1) of subdivision (d) of Section 6817
of the Public Resources Code.
6619. Upon a determination by the department that the full amount
of cost savings has been transmitted pursuant to Section 6618, the
department shall grant final approval of the application for partial
removal of an offshore oil structure.
6620. The department shall not take title to a decommissioned
offshore oil structure in open coastal waters or take responsibility
for management of the structure pursuant to this article until
decommissioning and partial removal of the structure have been
completed and both of the following requirements are met:
(a) The partial removal of the structure has been granted final
approval by the department.
(b) The state is indemnified, as required in subdivision (f) of
Section 6616, from any liability that may result from approving the
partial removal of an offshore oil structure or any liability that
may result from the ownership of the structure.
6621. Upon the department's final approval of the first
application for partial removal of an offshore oil structure pursuant
to Section 6619, the conservancy shall create an advisory spending
plan for cost savings deposited in the endowment, to provide the
Board of Directors of the California Endowment for Marine
Preservation with guidance on spending those funds. The conservancy
shall update the spending plan no less than once every five years,
except the conservancy shall also update the spending plan when each
additional application for partial removal is approved. The
conservancy shall submit a copy of the spending plan and all updates
to the plan to the Legislature, in accordance with Section 9795 of
the Government Code, and to the Board of Directors of the California
Endowment for Marine Preservation.
SEC. 2. Division 37 (commencing with Section 71500) is added to
the Public Resources Code, to read:
DIVISION 37. CALIFORNIA ENDOWMENT FOR MARINE PRESERVATION
CHAPTER 1. FINDINGS AND DECLARATIONS
71500. (a) The Legislature hereby finds and declares all of the
following:
(1) The Pacific Ocean and its rich marine living resources are of
great environmental, economic, aesthetic, recreational, educational,
scientific, social, cultural, and historic importance to the people
of California.
(2) California's marine living resources depend on a healthy
marine environment, which comprises open coastal waters as well as
coastal estuaries, wetlands, rivers and streams, and lands within the
coastal zone.
(3) Overfishing, coastal pollution, and other unsustainable marine
activities have damaged marine fisheries, habitats, and ecosystems.
Programs are needed to conserve, protect, restore, and enhance the
marine resources of the state and to improve the environmental
sustainability of marine-related activities and encourage those
activities that are environmentally sustainable. These programs
should be focused on, and coordinated with, efforts to reduce
overfishing and coastal pollution and to support sustainable marine
activities and improve the sustainability of all marine activities.
(4) The State of California recognizes the need to formulate its
coastal and ocean resource management policies based on the best
readily available scientific information and should utilize
the University of California, the California State University, other
institutions of higher learning, and marine science research
institutions to the extent feasible to assist it in achieving that
goal.
(5) The California Ocean Resources Management Act of 1990 is
designed to ensure that the state's ocean resources are managed,
conserved, and enhanced in a comprehensive and coordinated manner.
The California Ocean Protection Act furthered that mission by
establishing the Ocean Protection Council, whose duties include
coordination of state activities to protect coastal waters and ocean
ecosystems, establishment of a science advisory team of distinguished
scientists from a range of disciplines related to coastal and ocean
resources, and contracting with the California Ocean Science Trust
and other academic and nonprofit organizations to carry out
scientific and educational activities consistent with that act.
(6) The ability of the state to carry out the mission of the
California Ocean Protection Act is constrained by the availability of
funds appropriated in the state budget.
(7) It is in the interest of the people of the state to establish
an endowment, which would be independent of the state's budget
process and would impose no cost on the General Fund of the state, to
provide a stable and ongoing source of funding in perpetuity to
conserve, protect, restore, and enhance the marine resources of the
state in a manner that is consistent with the California Ocean
Protection Act.
CHAPTER 2. DEFINITIONS
71520. Unless the context requires otherwise, the following
definitions govern the construction of this division:
(a) "Board" or "endowment board" means the Board of Directors of
the California Endowment for Marine Preservation.
(b) "Endowment" means the California Endowment for Marine
Preservation.
(c) "Exclusive economic zone (EEZ)" means the zone as measured
from the mean high tide line seaward to 200 nautical miles as set
forth in the Presidential Proclamation 5030 of March 10, 1983, in
which the United States proclaimed jurisdiction over the resources of
the ocean within 200 miles of the coastline.
(d) "Nonprofit organization" means any nonprofit corporation
qualified to do business in California, and qualified under Section
501(c)(3) of the Internal Revenue Code.
(e) "Open coastal marine resource" means those marine resources
that use open coastal waters as their habitat.
(f) "Open coastal waters" means the area composed of the submerged
lands of the state that are below the mean lower low water extending
seaward to the boundaries of the exclusive economic zone.
CHAPTER 3. ESTABLISHMENT AND GOVERNANCE
71530. The California Endowment for Marine Preservation is hereby
established. The endowment is subject to this division and to the
Nonprofit Public Benefit Corporation Law (Part 2 (commencing with
Section 5110) of Division 2 of Title 1 of the Corporations Code). If
there is a conflict between this division and the Nonprofit Public
Benefit Corporation Law, this division shall prevail.
71531. The endowment is governed by the Board of Directors of the
California Endowment for Marine Preservation, consisting of the
following members:
(a) The Secretary of the Natural Resources Agency.
(b) The Secretary for Environmental Protection.
(c) One member of the public appointed by the Governor.
(d) One member, appointed by the Speaker of the Assembly, who
shall be an expert in marine fisheries from the University of
California, the California State University, or other accredited
university.
(e) One member, appointed by the Senate Committee on Rules, who
shall be from a nonprofit public interest organization with an
emphasis on marine conservation or sustainable consumptive
recreational activities.
71532. The term of office of each member of the board appointed
pursuant to subdivisions (c) to (e), inclusive, of Section 71531 is
six years. However, the term of office for the first board member
appointed pursuant to subdivision (c) of Section 71531 is three
years.
71533. Any vacancy on the board shall be filled by the appointing
authority for the remainder of the unexpired term.
71534. (a) The board shall conduct its initial meeting as soon as
possible after incorporation.
(b) The board shall meet as often as required, but at least twice
per year.
(c) Members of the board shall attend at least 50 percent of all
duly convened meetings of the board in a calendar year. A member who
fails to attend at least 50 percent of all duly convened meetings of
the board in a calendar year forfeits membership on the board. The
vacancy shall be filled pursuant to Section 71533.
(d) Members of the board shall receive no salary but members
appointed pursuant to subdivisions (c) to (e), inclusive, of Section
71531 shall be paid one hundred dollars ($100) per day for each
meeting and shall be reimbursed for all necessary travel expenses.
(e) The Ocean Protection Council shall provide staff services that
the endowment board needs to carry out its duties pursuant to this
division.
CHAPTER 5. POWERS AND DUTIES
71550. (a) The members of the board first appointed shall serve
as incorporators of the endowment and shall take whatever actions are
necessary to establish the endowment pursuant to the Nonprofit
Public Benefit Corporation Law (Part 2 (commencing with Section 5110)
of Division 2 of Title 1 of the Corporations Code) once a majority
of the board is appointed.
(b) It is the intent of the Legislature that the endowment not be
incorporated until the endowment board has received its initial
notice of application from the Department of Fish and Game, pursuant
to Section 6610 of the Fish and Game Code.
71551. The California Endowment for Marine Preservation shall
receive funds generated pursuant to the California Marine Resources
Legacy Act (Article 2 (commencing with Section 6420) of Chapter 5 of
Part 1 of Division 6 of the Fish and Game Code).
71552. (a) The purpose of the endowment is to create a permanent
source of funding for projects and programs that will conserve,
protect, restore, and enhance the coastal and marine resources of the
state, with an emphasis on open coastal marine resources, and that
will improve the sustainability of marine activities and encourage
and support environmentally sustainable marine activities. To achieve
this objective, the endowment board may award grants to public
agencies and nonprofit organizations to support any or all of the
following activities:
(1) Applied research, including, but not limited to, monitoring
and data collection in support of projects to conserve, protect,
restore, and enhance the open coastal marine resources of the state.
In so doing, the board shall take maximum advantage of the scientific
research expertise available from the University of California, the
California State University, other institutions of higher learning,
and marine science research institutions with expertise in marine
resource issues. No more than 10 percent of funds awarded by the
endowment in any fiscal year shall be awarded for research.
(2) Projects in open coastal waters that enhance environmentally
sustainable marine activities.
(3) Projects in open coastal waters to enhance the habitat for
open coastal marine life , including, but not limited to, the
identification, monitoring, and protection of important ecological
areas .
(4) Enforcement programs that protect, conserve, and enhance
natural resources and marine habitat in and adjacent to open coastal
waters, including regulating the take of open coastal marine species
and monitoring of open coastal marine species and habitat with an
emphasis on innovative approaches.
(5) Programs to aid in the establishment of sustainable fishing
levels and , including, but not limited to,
ecosystem-based management of forage species, and programs to
reduce or prevent habitat damage in open coastal waters.
(6) Programs to monitor catch and bycatch and to reduce bycatch in
fisheries managed by the State of California and by the United
States.
(7) Programs, projects, and activities that are directly related
to the conservation, protection, restoration, and enhancement of
coastal and marine resources of the state, with an emphasis on open
coastal marine resources, and that are authorized by either paragraph
(2) of subdivision (b) of Section 35650 or by Section 75060.
(b) Funds provided by the endowment are not intended, and shall
not be used, to supplant funding provided through the annual budget
process to support existing obligations and activities related to
coastal and marine resources.
(c) The endowment board may also do all of the following:
(1) Obtain grants from, and contract with, individuals and with
private, local, state, and federal agencies, organizations, and
institutions.
(2) Contract with, or make grants to, conservation and educational
organizations; marine institutes; aquariums and museums;
institutions of higher education; and local, state, and federal
agencies to carry out the purposes of this chapter.
(3) Loan funds to local, state, and federal agencies,
organizations, and institutions to carry out the purposes of this
chapter.
(d) The endowment shall create a business plan for a five-year
period. The endowment shall update the plan annually.
(e) On or before February 1 each year following incorporation, the
endowment shall submit a report for the preceding fiscal year to the
Governor and to the appropriate fiscal and policy committees of the
Legislature. The report shall include all of the following:
(1) The updated business plan created pursuant to subdivision (c).
(2) A comprehensive and detailed report of the endowment's
operations, activities, financial condition, and accomplishments
under this section.
(3) A listing of each recipient of a grant from the endowment and
the purposes and amount of that grant.
(4) A listing of any loan that the endowment has received and the
plan for repaying the loan.
(5) A report of each independent audit required pursuant to
subdivision (e) of Section 71560.
71553. Members of the board and appropriate staff shall be
available to testify before appropriate committees of the
Legislature.
71554. The endowment shall not contribute to, or otherwise
support, any political party, candidate for elective public office,
or ballot measure.
71555. The endowment may hire employees and may obtain legal
counsel. No employee of the endowment is an employee of the State of
California. No employee of the endowment is subject to Chapter 10.3
(commencing with Section 3512) of, or Chapter 10.5 (commencing with
Section 3525) of, Division 4 of Title 1 of the Government Code.
Employees of the endowment have the right to representation
consistent with the federal National Labor Relations Act (29 U.S.C.
Sec. 151 et seq.).
71556. The endowment shall coordinate its activities with the
Department of Fish and Game, the California Coastal Commission, the
San Francisco Bay Conservation and Development Commission, the State
Lands Commission, and appropriate federal agencies, including the
National Marine Fisheries Service and the Minerals Management Service
of the United States Department of the Interior. Nothing in this
division limits the authority and responsibility of any of these
agencies.
CHAPTER 6. FINANCIAL TRANSACTIONS AND AUDITS
71560. (a) The endowment may receive charitable contributions or
any sources of income that may be lawfully received, including loans
from the state.
(b) The endowment shall administer any funds it receives in
accordance with this division.
(c) (1) Except as provided in paragraph (2), the endowment shall
invest and manage any funds it receives so that the investments shall
provide a source of income in perpetuity and the principal amount
consisting of charitable contributions and donations, including cost
savings donated pursuant to Section 6427.3 of the Fish and Game Code,
shall not be spent. Any returns on investments made by the endowment
are the only funds that shall be available for expenditure by the
endowment.
(2) Ten percent of any funds received by the endowment pursuant to
Section 6427.3 of the Fish and Game Code in a calendar year shall be
allocated by the endowment board, pursuant to Section 71552, as
grants for projects or programs consistent with the purpose of this
chapter within 24 months of receipt of the funds. The majority of
these funds shall be granted to state agencies engaged in coastal and
ocean protection.
(d) The endowment shall invest and manage any funds it receives in
accordance with the Nonprofit Public Benefit Corporation Law (Part 2
(commencing with Section 5110) of Division 2 of Title 1 of the
Corporations Code).
(e) The accounts of the endowment shall be audited annually in
accordance with generally accepted auditing standards by independent
certified public accountants.
(f) The financial transactions of the endowment for any fiscal
year may be audited by the Bureau of State Audits.
(g) Each recipient of assistance by grant, contract, or loan
pursuant to this division shall keep records reasonably necessary to
disclose fully the amount of the assistance, the disposition of the
assistance, the total cost of the project or undertaking in
connection with which the assistance is given or used, the amount and
nature of that portion of the cost of the project or undertaking
supplied by other sources, and other records that will facilitate an
effective audit. Each recipient of a fixed price contract awarded
pursuant to competitive bidding procedures is exempt from the
requirements of this subdivision.
(h) The endowment, or its authorized representative, and the
Bureau of State Audits shall have access to any records necessary for
the purpose of auditing and examining all funds received or expended
by the recipients of assistance.
71561. The endowment funds shall be administered and managed in
accordance with all of the following:
(a) Reasonably prudent investor standards that will give the fund
the capacity to achieve reasonable rates of return on investment
similar to those of other prudent investors for long-term
investments.
(b) Use of generally accepted accounting practices, and
expenditure and investing procedures.
(c) Investment policies that are consistent with the Uniform
Prudent Investor Act (Article 2.5 (commencing with Section 16045) of
Chapter 1 of Part 4 of Division 9 of the Probate Code), and with the
Uniform Management of Institutional Funds Act (Part 7 (commencing
with Section 18501) of Division 9 of the Probate Code), as
applicable.
71562. Funds held by the endowment shall revert to the state or
to another public agency or nonprofit organization approved by the
state if the endowment does any of the following:
(a) Ceases operations.
(b) Is dissolved.
(c) Becomes bankrupt or insolvent.
(d) Fails to perform its fiduciary duties.
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