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