BILL ANALYSIS
SB 571
Page 1
Date of Hearing: July 8, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
SB 571 (Maldonado) - As Amended: June 28, 2009
Policy Committee: Natural
ResourcesVote:9-0
Urgency: No State Mandated Local Program:
No Reimbursable: No
SUMMARY
This bill authorizes the State Oil and Gas Supervisor to deny
proposed geothermal well operations until an operator complies
with an order, pays a civil penalty, or remedies a violation.
FISCAL EFFECT
Negligible state costs, if any.
COMMENTS
1)Rationale . The author notes that the state regulates
geothermal well drilling to ensure public and environmental
health and safety. According to the author, current law
allows a geothermal well operator who is out of compliance
with applicable rules and regulations to nonetheless expand
operations, thereby increasing opportunities for noncompliance
while continuing to ignore their legal obligations associated
with current operations. The author contends this bill will
help prevent expansion of noncompliant geothermal well
operations.
2)Background . California is the largest generator of electricity
from geothermal resources. In 2006, nearly five percent of
the state's electricity was generated from geothermal
resources. Between 2006 and 2008, the number of well permits
issued by the Department of Conservation (DOC) increased 221%.
There are more than 800 geothermal wells in the state.
The DOC's Division of Oil, Gas and Geothermal Resources
(DOGGR) oversees the drilling, operation, maintenance and
abandonment of oil, gas, and geothermal wells. An owner or
SB 571
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operator of any well is required to obtain approval from the
DOGGR Supervisor prior to commencing the drilling. The
Supervisor may deny proposed oil and gas well drilling
operations if an operator fails to comply with an order, pay a
civil penalty or other fee, or remedy a violation. The
Supervisor may order a well inspected, abandoned or redrilled
if the well is hazardous or idle-deserted. Any person who
violates geothermal resources management regulations may be
subject to a $5,000 fine. However, existing law does not
prohibit the operator of a geothermal well that is out of
compliance with geothermal well regulations or who has failed
to pay related fine from expanding geothermal well operations.
3)Related Legislation . AB 2581 (Maldonado, Chapter 737,
Statutes of 2000) authorized the DOGGR Supervisor to deny a
permit to the operator of an oil well who has outstanding
civil penalties for violation of oil well regulations.
Analysis Prepared by : Jay Dickenson / APPR. / (916) 319-2081