Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 649

Introduced by Assembly Member Nazarian

February 21, 2013

An act to begin delete amend Section 2779 of end delete begin insert add Sections 3017 and 3203.5 to end insert the Public Resources Code, relating to begin delete mining end delete begin insert oil and gas end insert .

LEGISLATIVE COUNSEL’S DIGEST

AB 649, as amended, Nazarian. begin delete Surface mining: reclamation plans. end delete begin insert Oil and gas: hydraulic fracturing. end insert

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(1) Under existing law, the Division of Oil, Gas, and Geothermal Resources in the Department of Conservation regulates the drilling, operation, maintenance, and abandonment of oil and gas wells in the state. The State Oil and Gas Supervisor supervises the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities related to oil and gas production within an oil and gas field regarding safety and environmental damage. Existing law requires an operator of a well, before commencing the work of drilling the well, to obtain approval from the State Oil and Gas Supervisor or a district deputy. Violation of these provisions is a misdemeanor.

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This bill would define “hydraulic fracturing” in oil and gas operations and would prohibit hydraulic fracturing, as well as the use of clean freshwater for purposes of hydraulic fracturing, on any oil or gas well, if the well is located ____ miles from an aquifer, until the completion of a report, as specified, and a determination is made that hydraulic fracturing can be conducted without a risk to the public health, welfare, environment, or the economy of the state. The bill would also express the intent of the Legislature to, among other things, protect the public health and welfare, natural and environmental resources and economic interest of the state.

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(2) Existing law establishes the Natural Resources Agency consisting of various entities, departments, and boards. Existing law also establishes the California Environmental Protection Agency consisting of various entities, departments, and boards.

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This bill would require the Secretary of the Natural Resources Agency and the Secretary for Environmental Protection to (A) convene an advisory committee, by July 1, 2014, to develop a report relating to hydraulic fracturing, as specified; (B) to complete the report on or before January 1, 2018, and provide a copy to the Governor and the Legislature on or before that date; and (C) to make a determination, as specified, not later than January 1, 2019, as to whether and under what conditions hydraulic fracturing is permitted within the state.

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This bill would prohibit hydraulic fracturing, as well as the use of freshwater for there purposes, as specified, the violation of which would be a misdemeanor. By creating a new crime, the bill would impose a state-mandated local program.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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The Surface Mining and Reclamation Act of 1975 prohibits a person, with exceptions, from conducting surface mining operations unless, among other things, a reclamation plan is submitted to and approved by the lead agency for the operation. The act requires when one surface mining operator succeeds to the interest of another in an incomplete surface mining operation by sale, assignment, transfer, conveyance, exchange, or other means, the successor is bound by the approved reclamation plan and the act.

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This bill would make technical, nonsubstantive changes to that law.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

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SECTION 1.  

Section 2779 of the Public Resources Code is
amended to read:

2779.  

If one operator succeeds to the interest of another in an
incomplete surface mining operation by sale, assignment, transfer,
conveyance, exchange, or other means, the successor shall be
bound by the approved reclamation plan and this chapter.

end delete

begin insert

begin insert SECTION 1. end insert   

end insert begin insert

The Legislature finds and declares all of the
following:

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(a) It is the intent of the Legislature in enacting this act to
protect the public health and welfare, natural and environmental
resources, and the economic value of private and public property
in the state.

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(b) The Legislature recognizes that hydraulic fracturing poses
serious threats to California’s air, water, climate, environment,
wildlife, and public health.

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(c) The Legislature further recognizes that hydraulic fracturing
is currently occurring in California without monitoring or
regulation, and almost completely undisclosed to the people of the
state.

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(d) Although some potential impacts from hydraulic fracturing
are currently under investigation by federal agencies, other states,
and academic and research institutions, no independent and
scientific investigations are being undertaken or have been
completed in California to examine the risks to the state’s unique
geologic, geographic, atmospheric, and environmental conditions
and resources.

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(e) There is scarce independent information, investigation, and
analysis regarding the tools and mechanisms available to assess
the actual and potential risks of hydraulic fracturing and to protect
the public health and welfare, and the environmental resources
from these impacts.

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(f) The Legislature recognizes the immediate need to protect
against, and prepare for, the emergencies and impacts related to
hydraulic fracturing as well as the related activities that could
range from small localized events to far-reaching disasters with
complex consequences that could require the involvement and
coordination among many agencies. Mechanisms to ensure
funding, coordination, and equipment for response to these impacts
are urgently needed to be identified and adopted.

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begin insert

begin insert SEC. 2. end insert   

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begin insert Section 3017 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

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begin insert 3017. end insert   

“Hydraulic fracturing” means the injection of fluids or
gases into an underground geologic formation with the intention
to cause or enhance fractures in the formation, in order to cause
or enhance the production of oil or gas from a well. Alternate
terms include, but are not limited to, “fracking,” “hydrofracking,”
and “hydrofracturing.”

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begin insert SEC. 3. end insert   

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begin insert Section 3203.5 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

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begin insert 3203.5. end insert   

Neither hydraulic fracturing nor the use of clean
freshwater for hydraulic fracturing purposes is permitted on any
oil or gas well if the well is located ____ miles from an aquifer,
until all of the following requirements are met:

(a) (1) By July 1, 2014, the Secretary of the Natural Resources
Agency and the Secretary of the California Environmental
Protection Agency, shall convene an advisory committee to develop
a report, based on the best scientific information available, relating
to hydraulic fracturing. The advisory committee shall include of
one representative from each of the following:

(A) The California Environmental Protection Agency.

(B) The Natural Resources Agency.

(C) The State Department of Public Health.

(D) An environmental justice organization.

(E) The agriculture industry.

(F) The oil and gas industry.

(G) An academic researcher with experience in hydraulic
fracturing issues.

(H) A water agency.

(2) The advisory committee shall address specific issues related
to hydraulic fracturing in the report, which shall include, but is
not limited to, all of the following:

(A) A description of hydraulic fracturing, and other enhanced
oil and gas recovery techniques.

(B) All potential health and environmental impacts related to
hydraulic fracturing, including, but not limited to, all of the
following:

(i) The handling and disposition of produced water or
wastewater.

(ii) Contamination of groundwater or surface water.

(iii) The supply and sources of water used in hydraulic
fracturing and its impact on the state, regional, and local water
supply.

(iv) The use, handling, and accidental spill of chemicals used
in hydraulic fracturing.

(v) Impacts on endangered species and their habitat.

(C) All potential economic impacts of increased hydraulic
fracturing operations and other enhanced oil and gas recovery
methods in the state.

(D) All potential effects on communities most likely to be
negatively affected by the impacts of hydraulic fracturing.

(E) A review of the regulations affecting hydraulic fracturing
and an analysis of whether these are adequate to address the issues
identified in this report.

(F) Recommendations for emergency planning and mechanisms
necessary to ensure adequate and fully funded responses to
emergencies related to hydraulic fracturing operations.

(G) Recommendations for regulatory and statutory changes
needed to address the issues covered in the report.

(b) A draft of the final report shall be made available for public
comment for a period of no less than 120 days.

(c) The final report shall be completed on or before January 1,
2018, and a copy shall be provided to the Governor and the
Legislature by the Secretary of the Natural Resources Agency and
the Secretary of the California Environmental Protection Agency
on or before that date.

(d) Upon completion of the report, the Secretary of the Natural
Resources Agency and Secretary of the California Environmental
Protection Agency shall make a determination not later than
January 1, 2019, as to whether and under what conditions,
hydraulic fracturing is permitted within the state. The
determination shall be made only after measures are in place to
ensure that any activities related to hydraulic fracturing do not
pose a risk to the public health, welfare, environment, or the
economy of the state.

(e) This section shall not be interpreted to impair or infringe
on any vested right to conduct hydraulic fracturing operations.

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begin insert SEC. 4. end insert   

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No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

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