BILL ANALYSIS Ó AB 1274 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1274 (Mark Stone) As Amended July 14, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: | 74-2 | (June 1, |SENATE: |29-8 | (August 24, | | | |2015) | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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. AB 1274 Page 2 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 AB 1274 Page 3 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. AB 1274 Page 4 Analysis Prepared by: Michael Jarred / NAT. RES. / (916) 319-2092 FN: 0001319