BILL ANALYSIS Ó AB 1274 Page 1 ASSEMBLY THIRD READING AB 1274 (Mark Stone) As Amended April 15, 2015 Majority vote ------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | | | | | | | | | | | |----------------+------+---------------------+---------------------| |Natural |9-0 |Williams, Dahle, | | |Resources | | | | | | | | | | | |Cristina Garcia, | | | | |Hadley, Harper, | | | | |McCarty, Rendon, | | | | |Mark Stone, Wood | | | | | | | |----------------+------+---------------------+---------------------| |Appropriations |17-0 |Gomez, Bigelow, | | | | |Bonta, Calderon, | | | | |Chang, Daly, Eggman, | | | | |Gallagher, | | | | | | | | | | | | | | |Eduardo Garcia, | | | | |Gordon, Holden, | | | | |Jones, Quirk, | | | | |Rendon, Wagner, | | | | |Weber, Wood | | | | | | | AB 1274 Page 2 | | | | | ------------------------------------------------------------------- SUMMARY: This bill allows the State Lands Commission (SLC) to authorize geophysical surveys on state lands. Specifically, this bill: 1)Allows SLC to issue permits to conduct geophysical surveys on state lands, including granted and ungranted tidelands and submerged lands subject to terms and conditions set by SLC to ensure public safety and protect the environment. 2)Prohibits the SLC from requiring a permit for any geophysical survey performed on public trust lands granted by statute to a local trustee if the survey is performed to support dredging. 3)Requires SLC to adopt regulations to aid in the implementation of this bill and address the potential environmental impacts of geophysical surveys performed on state lands. 4)Authorizes SLC to promote compliance with permit requirements by: a) Providing educational outreach. b) Establishing a toll-free number for the public to report permit violators. c) Issuing cease and desist orders to permit violators. AB 1274 Page 3 FISCAL EFFECT: According to the Assembly Appropriations Committee: 1)Potential cost pressures in the hundreds of thousands of dollars for SLC to provide enforcement actions and public education, outreach, and reporting opportunities. 2)Although this bill authorizes, rather than requires SLC to promote compliance, enforcement actions will be necessary to reduce unpermitted surveys on public lands. 3)Unknown, potentially absorbable costs for the SLC to adopt regulations and issue permits. COMMENTS: 1)Background. In 1941, SLC was given permitting authority for geological or geophysical surveys on ungranted tide and submerged lands. This authority was placed into an oil and gas leasing statute because at the time most surveys were geological and intended for oil and gas exploration only. Geophysical surveys today use acoustic-generating or passive equipment for numerous purposes besides oil and gas exploration, which include scientific, engineering, safety, and research. Potential impacts of low-energy geophysical surveys include detrimental effects on wildlife and negative impacts on divers or fishermen. Pursuant to the California Environmental Quality Act, SLC has prepared a Mitigation Negative Declaration to identify and address these concerns. SLC issued seven non-exclusive permits for geophysical survey activities in 2013 and two non-exclusive permits in 2014. AB 1274 Page 4 A 2014 assessment of the low energy geophysical permit program found that numerous unpermitted surveys were being conducted. This unauthorized activity can lead to unfair competitive advantages and unmitigated damage to wildlife and the coastal environment. 2)SLC Authority. SLC currently has authority to issue permits for geological or geophysical surveys on ungranted state lands, located within an oil and gas leasing statute. SLC also has permitting authority for obtaining core samples to provide geological information on lands within its jurisdiction. SLC is authorized to adopt permitting rules and regulations for this activity. This bill may create confusion through duplicative permitting authority. Analysis Prepared by: Michael Jarred / NAT. RES. / (916) 319-2092 FN: 0000776