BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1274


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1274 (Mark Stone)


          As Amended  July 14, 2015


          Majority vote


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          |ASSEMBLY:  | 74-2 | (June 1,      |SENATE: |29-8  | (August 24,     |
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          Original Committee Reference:  NAT. RES.


          SUMMARY:  Authorizes the State Lands Commission (Commission) to  
          issue permits for geophysical surveys on state lands under its  
          jurisdiction and promulgate regulations to do so.  Specifically,  
          this bill:


          1)Allows the Commission to permit geophysical surveys on state  
            lands under its jurisdiction, as specified, to ensure public  
            safety and protect the environment.


          2)Directs the Commission to adopt regulations governing the  
            permitting of geophysical surveys.


          3)Excludes surveys for dredging for navigation channels,  
            anchorages or berthing areas, as specified, from permitting  
            requirements.








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          4)Provides direction to the Commission on promoting compliance  
            with permit requirements; including outreach, reporting  
            facilitation and specific enforcement.


          5)Makes relevant and supporting legislative findings.


          The Senate amendments clarify exclusion of dredging for  
          navigation channels, anchorages or berthing areas from permit  
          requirements.  Specify state lands subject to the permit include  
          only state lands under the Commission's jurisdiction, including  
          granted and ungranted tidelands and submerged lands and the beds  
          of the navigable waterways.


          EXISTING LAW:  


          1)The Commission currently has authority to issue permits for  
            geological or geophysical surveys on ungranted state lands,  
            which is currently located within an oil and gas leasing  
            statute.


          2)The Commission currently has permitting authority for  
            obtaining core samples to obtain geological information on  
            lands within its jurisdiction, and has discretion in adopting  
            permitting rules and regulations for this activity.


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.


          COMMENTS: 


          1)Background.  In 1941, the Commission was given permitting  
            authority for geological or geophysical surveys on ungranted  








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            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, the Commission has prepared a  
            Mitigation Negative Declaration to identify and address these  
            concerns.  The Commission issued seven non-exclusive permits  
            for geophysical survey activities in 2013 and two  
            non-exclusive permits in 2014.  


            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)Purpose of this bill.  According to the Commission, the  
            purpose of this bill is to address compliance concerns by  
            requiring implementing regulations and to better reflect  
            current survey practices by separating geophysical permitting  
            authority from the oil and gas statute.  The Commission states  
            that the added statutory language will provide clarity and  
            make the permitting authority more apparent to operators,  
            which will help address compliance concerns.
            Geophysical survey compliance issues will also be addressed by  
            expanding permitting authority to include legislatively  
            granted public trust lands.  Permits for geophysical surveys  
            on these lands are currently not required, and it is uncertain  
            as to how many surveys are being conducted on granted public  
            trust lands.  Over 80 local municipalities have been  
            legislatively granted management responsibilities for  
            sovereign public trust lands, and the Commission maintains  
            residual and review authority for these granted lands.









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          Analysis Prepared by:                                             
                          Michael Jarred / NAT. RES. / (916) 319-2092  FN:  
          0001319