Amended in Assembly May 8, 2013

Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 649

Introduced by Assembly Member Nazarian

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(Coauthor: Assembly Member Stone)

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February 21, 2013

An act to add Sections 3017 and 3203.5 to the Public Resources Code, relating to oil and gas.

LEGISLATIVE COUNSEL’S DIGEST

AB 649, as amended, Nazarian. Oil and gas: hydraulic fracturing.

(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 begin insert , referred to as the supervisor, end insert 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 begin delete State Oil and Gas Supervisor end delete begin insert supervisor end insert or a district deputy. Violation of these provisions is a misdemeanor.

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 begin delete ____ miles end delete begin insert within 4,000 feet from a home, public building, school, surface waters, underground source of drinking water, or any other sensitive human or environmental resource in the state end insert 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.

(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.

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.

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

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.

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

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

SECTION 1.  

The Legislature finds and declares all of the
following:

(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.

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

(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.

(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.

(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.

(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.

SEC. 2.  

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

3017.  

“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.”

SEC. 3.  

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

3203.5.  

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 begin delete ____ miles from an aquifer, end delete
begin insert within 4,000 feet from a home, public building, school, surface
waters, underground source of drinking water as defined under
the regulations in Part 144 (commencing with Section 144.3) of
Title 40 of the Code of Federal Regulations, or any other sensitive
human or environmental resource in the state, end insert 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.

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(H) Scientific and technical justification for appropriate setbacks
of hydraulic fracturing operations from sensitive human and
environmental resources in the state.

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(3) The advisory committee shall develop the report in the
context of current and foreseeable hydraulic fracturing operations
in the state, such as potential operations in the Monterey shale
and northern California gas reservoirs.

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(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 begin delete is end delete begin insert in any new or existing well shall be end insert
permitted begin insert anywhere end insert 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.

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

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(e) This section shall not be interpreted to preclude a local
government from establishing additional protective setbacks related
to hydraulic fracturing operations.

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SEC. 4.  

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.