Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1323

Introduced by Assembly Member Mitchell

February 22, 2013

An act begin delete relating to environmental quality. end delete begin insert to add Sections 3017 and 3203.5 to the Public Resources Code, relating to oil and gas. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1323, as amended, Mitchell. begin delete California Environmental Quality Act: environmental impact reports: wind energy. 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 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 and 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, 2016, 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, 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 California Environmental Quality Act requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect.

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This bill would state the intent of the Legislature to enact legislation that would reduce the time and expense associated with the environmental review of qualifying wind energy projects without affecting the required environmental studies and required mitigation of those studies.

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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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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 with scarce 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 risks and impacts 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 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   

end insert

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   

Hydraulic fracturing is prohibited until all of the
following requirements are met:

(a) (1) By July 1, 2014, the Secretary of the Natural Resources
Agency and the Secretary for Environmental Protection 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 two
representatives from each of the following:

(A) The California Environmental Protection Agency.

(B) The Natural Resources Agency.

(C) The State Department of Public Health.

(D) Environmental justice organizations.

(E) The agriculture industry.

(F) The oil and gas industry.

(G) Two academic researchers with experience in hydraulic
fracturing issues.

(H) Water agencies.

(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) Air quality impacts, including, but not limited to, particulate
and volatile organic compound and methane releases.

(v) Impacts on climate change and emissions of greenhouse
gases, including the goals set in the California Global Warming
Solutions Act of 2006 (Division 25.5 (commencing with Section
38500) of the Health and Safety Code).

(vi) The potential for migration of gases and fluids through
geologic formations.

(vii) The potential for generating seismic activity, both as a
result of increased hydraulic fracturing and the disposal of
produced wastewater into underground injection wells.

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

(ix) 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) Prior to finalizing the report, the Secretary of the Natural
Resources Agency and the Secretary for Environmental Protection
shall seek independent peer review by persons of the scientific and
academic community commonly acknowledged to be experts on
the subjects under consideration and possessing the knowledge
and expertise to critique the scientific validity of the report.

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

(d) The final report shall be completed on or before January 1,
2016, and a copy shall be provided to the Governor and the
Legislature by the Secretary of the Natural Resources Agency and
the Secretary for Environmental Protection on or before that date.

(e) Upon completion of the report, the Secretary of the Natural
Resources Agency and the Secretary for Environmental Protection
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 and
welfare, environment, or economy of the state.

(f) 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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SECTION 1.  

It is the intent of the Legislature to enact
legislation that would reduce the time and expense associated with
the environmental review of qualifying wind energy projects
without affecting the required environmental studies and required
mitigation of those studies.

end delete