AB 1323, as amended, Mitchell. 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 Supervisorbegin 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 thebegin delete State Oil and Gas Supervisorend deletebegin insert
supervisorend 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 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.begin insert A violation of this prohibition would be a misdemeanor. By creating a new crime, this bill would impose a state-mandated local program.end insert 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, 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.
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.
end deleteThe 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:
The Legislature finds and declares all of the
2following:
3(a) It is the intent of the Legislature in enacting this act to protect
4the public health and welfare, natural and environmental resources,
5and the economic value of private and public property in the state.
6(b) The Legislature recognizes that hydraulic fracturing poses
7serious threats to California’s air, water, climate, environment,
8wildlife, and public health.
9(c) The Legislature further recognizes that hydraulic fracturing
10is currently occurring in California
with scarce monitoring or
P3 1regulation, and almost completely undisclosed to the people of the
2state.
3(d) Although some potential impacts from hydraulic fracturing
4are currently under investigation by federal agencies, other states,
5and academic and research institutions, no independent and
6scientific investigations are being undertaken or have been
7completed in California to examine the risks to the state’s unique
8geologic, geographic, atmospheric, and environmental conditions
9and resources.
10(e) There is scarce independent information, investigation, and
11analysis regarding the tools and mechanisms available to assess
12the risks and impacts of hydraulic fracturing and to protect the
13public health and welfare, and the environmental resources from
14these impacts.
15(f) The Legislature recognizes the immediate need to protect
16against, and prepare for, the emergencies and impacts related to
17hydraulic fracturing as well as the related activities that could range
18from small localized events to far-reaching disasters with complex
19consequences that could require the involvement and coordination
20among many agencies. Mechanisms to ensure funding,
21coordination, and equipment for response to these impacts are
22urgently needed to be identified and adopted.
Section 3017 is added to the Public Resources Code,
24to read:
“Hydraulic fracturing” means the injection of fluids or
26gases into an underground geologic formation with the intention
27to cause or enhance fractures in the formation, in order to cause
28or enhance the production of oil or gas from a well. Alternate terms
29include, but are not limited to, “fracking,” “hydrofracking,” and
30“hydrofracturing.”
Section 3203.5 is added to the Public Resources Code,
32to read:
Hydraulic fracturing is prohibited until all of the
34following requirements are met:
35(a) (1) By July 1, 2014, the Secretary of the Natural Resources
36Agency and the Secretary for Environmental Protection shall
37convene an advisory committee to develop a report, based on the
38best scientific information available, relating to hydraulic
39fracturing. The advisory committee shall include two
40representatives from each of the following:
P4 1(A) The California Environmental Protection Agency.
2(B) The Natural Resources Agency.
3(C) The State Department of Public Health.
4(D) Environmental justice organizations.
5(E) The agriculture industry.
6(F) The oil and gas industry.
7(G) Two academic researchers with experience in hydraulic
8fracturing issues.
9(H) Water agencies.
10(2) The advisory committee shall address specific issues related
11to hydraulic fracturing in the report, which shall include, but is not
12limited to, all of the following:
13(A) A description of hydraulic fracturing, and other enhanced
14oil
and gas recovery techniques.
15(B) All potential health and environmental impacts related to
16hydraulic fracturing, including, but not limited to, all of the
17following:
18(i) The handling and disposition of produced water or
19wastewater.
20(ii) Contamination of groundwater or surface water.
21(iii) The supply and sources of water used in hydraulic fracturing
22and its impact on the state, regional, and local water supply.
23(iv) Air quality impacts, including, but not limited to, particulate
24and volatile organic compound and methane releases.
25(v) Impacts on climate change and emissions of greenhouse
26gases, including the goals set in the California Global Warming
27Solutions Act of 2006 (Division 25.5 (commencing with Section
2838500) of the Health and Safety Code).
29(vi) The potential for migration of gases and fluids through
30geologic formations.
31(vii) The potential for generating seismic activity, both as a
32result of increased hydraulic fracturing and the disposal of produced
33wastewater into underground injection wells.
34(viii) The use, handling, and accidental spill of chemicals used
35in hydraulic fracturing.
36(ix) Impacts on endangered species and their habitat.
37(C) All potential economic impacts of increased hydraulic
38fracturing operations and other enhanced oil and gas recovery
39methods in the state.
P5 1(D) All potential effects on communities most likely to be
2negatively affected by the impacts of hydraulic fracturing.
3(E) A review of the regulations affecting hydraulic fracturing
4and an analysis of whether these are adequate to address the issues
5identified in this report.
6(F) Recommendations for emergency planning and mechanisms
7necessary to ensure adequate and fully funded responses to
8emergencies related to hydraulic fracturing operations.
9(G) Recommendations for regulatory and statutory changes
10needed to address the issues covered in the report.
11(3) The advisory committee shall develop the report in the
12context of current and foreseeable hydraulic fracturing operations
13in the state, such as potential operations in the Monterey shale
14and northern California gas reservoirs.
15(b) Prior to finalizing the report, the Secretary of the Natural
16Resources Agency and the Secretary for Environmental Protection
17shall seek independent peer review by persons of the scientific and
18academic community commonly acknowledged to be experts on
19the subjects under consideration and possessing the knowledge
20and expertise to critique the scientific validity of the
report.
21(c) A draft of the final report shall be made available for public
22comment for a period of no less than 120 days.
23(d) The final report shall be completed on or before January 1,
242016, and a copy shall be provided to the Governor and the
25Legislature by the Secretary of the Natural Resources Agency and
26the Secretary for Environmental Protection on or before that date.
27(e) Upon completion of the report, the Secretary of the Natural
28Resources Agency and the Secretary for Environmental Protection
29shall make a determination not later than January 1, 2019, as to
30whether, and under what conditions, hydraulic fracturing is
31permitted within the state. The determination shall be made only
32after measures are in place to
ensure that any activities related to
33hydraulic fracturing do not pose a risk to the public health and
34welfare, environment, or economy of the state.
35(f) This section shall not be interpreted to impair or infringe on
36any vested right to conduct hydraulic fracturing operations.
No reimbursement is required by this act pursuant to
38Section 6 of Article XIII B of the California Constitution because
39the only costs that may be incurred by a local agency or school
40district will be incurred because this act creates a new crime or
P6 1infraction, eliminates a crime or infraction, or changes the penalty
2for a crime or infraction, within the meaning of Section 17556 of
3the Government Code, or changes the definition of a crime within
4the meaning of Section 6 of Article XIII B of the California
5Constitution.
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