BILL ANALYSIS Ó ----------------------------------------------------------------- | | | SENATE COMMITTEE ON NATURAL RESOURCES AND WATER | | Senator Fran Pavley, Chair | | 2013-2014 Regular Session | | | ----------------------------------------------------------------- BILL NO: AB 727 HEARING DATE: June 11, 2013 AUTHOR: Stone URGENCY: No VERSION: April 30, 2013 CONSULTANT: Katharine Moore DUAL REFERRAL: No FISCAL: Yes SUBJECT: Public trust lands: dredging: notice and leases. BACKGROUND AND EXISTING LAW The California State Lands Commission (commission) was created by the Legislature in 1938 as an independent body composed of three members - the Lieutenant Governor, State Controller and the Director of Finance. Among other duties, the commission is responsible for managing over 4 million acres of sovereign land acquired by California at statehood. These sovereign lands include the beds of navigable rivers, lakes and streams, and tide and submerged lands. These lands are subject to the common law public trust doctrine which protects the public's right to use California's waterways for commerce, navigation, fishing, boating, natural habitat protection, and other water-oriented activities. Public trust lands are held in trust by the state for the benefit of the people of California. Periodically, however, the Legislature transfers sovereign lands to local government entities for management purposes subject to certain terms and conditions, including the public trust. The state retains oversight authority over public trust lands granted to local governments. Currently there are 85 grants to local governments (grantees). The grantee is a trustee to the lands and the revenues generated from these lands, which are held in trust and may only be used for purposes consistent with the public trust. Examples of granted lands include the Ports of San Francisco, Oakland, and San Diego. Harbors, berths, navigable waterways and other granted tidelands typically must be dredged from time to time in order for trust purposes to be pursued including promotion and accommodation of commerce and navigation. This dredging typically requires 1 multiple approvals and permits from various local, state and federal regulators. In instances where the state has retained the mineral rights of the trust lands, dredging activities require that a lease be entered into with the commission. The commission holds public meetings throughout the year where leases and permits for the use of the state's lands and resources are considered. According to the commission obtaining a lease can take several months and processing costs for the applicant are on the order of $1,500 - $2,000. PROPOSED LAW This bill would eliminate the requirement that local trustees of tide or submerged lands, where mineral rights are reserved, obtain a lease from the commission, if certain conditions are met. Those conditions include providing a written notice to the commission least 120 days prior to the scheduled start of dredging. The notice must include specified information regarding the proposed dredging project. After submitting the written notice, a local trustee or applicant for dredging is not required to enter into a lease for the dredging if all of the following conditions are met: The dredging is maintenance dredging consistent with the proper management of the granted lands. The dredged material is not sold or used for a private benefit. The dredged material is disposed of at an approved onshore or offshore disposal site. Further, the bill would: Require a lease be executed prior to dredging if those specified conditions are not met. Require that the commission notify the local trustee or applicant within 30 days of receiving notification of the proposed dredging that a lease is required. Allow the commission to delegate the authority to determine if a lease is required to its executive officer. Require that any revenues earned from dredging be held or spent consistent with the public trust and any terms specific to the granted lands. The commission is to be notified immediately if undisclosed revenue is obtained and may require a reasonable royalty be paid and a dredging lease executed. Apply to only dredging operations that commence on or after January 1, 2014. ARGUMENTS IN SUPPORT According to the commission, "in an effort to streamline [the 2 dredging] process, eliminate duplicity, preserve tideland trust revenue, and to more efficiently allocate commission staff resources, this bill would eliminate the requirement that dredging on granted public trust lands wherein minerals are reserved requires a lease from the commission, if certain conditions are met." "AB 727 expressly preserves the authority of the commission to require a lease for any dredging on granted lands wherein minerals are reserved if the proposed dredging is inconsistent with the conditions specified in the bill [?] A grantee of public lands has the primary responsibility to administer the trust within the parameters of its granting statute. Except for certain statutory authorizations, the commission is not involved in day-to-day management operations for granted public trust lands. Eliminating the lease requirement for dredging and replacing it with a notification requirement is consistent with this structure and will result in more efficiency for the commission." The California Association of Harbor Masters and Port Captains points out that in order to comply with the public trust requirements, "harbors must maintain a navigable depth which allows for commercial and recreational activity to continue unimpeded, necessitating periodic dredging. This has historically involved applying for and entering into a lease with [the commission]." They continue "AB 727 streamlines the process, allowing for the submission of a Notice and other procedures that protect the rights reserved to the State, but at the same time will result in a cost savings and expedite the process considerably." ARGUMENTS IN OPPOSITION None received COMMENTS Five permits, authorizations and approvals required . According to the commission, Orange County recently applied for an amended dredging lease to increase the amount of material removed. In addition to commission approval, Orange County required permits or approvals from the California Coastal Commission, the Regional Water Quality Control Board, the City of Newport Beach and the US Army Corps of Engineers. 3 SUPPORT State Lands Commission (sponsor) California Association of Harbor Masters and Port Captains, Inc. California Special Districts Association Moss Landing Harbor District OPPOSITION None Received 4