BILL ANALYSIS Ó
AB 1501
Page 1
Date of Hearing: April 27, 2015
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Das Williams, Chair
AB 1501
(Rendon) - As Amended April 21, 2015
SUBJECT: Well stimulation treatments: emissions
SUMMARY: Requires air districts to establish an emission
standard for methane from well stimulation treatments and other
petroleum extraction facilities. Requires the emission standard
to include a permit requirement and consideration of the effect
production facilities have on adjacent vulnerable populations.
Requires the Air Resources Board (ARB) or a local air district
to install monitoring stations near any approved well
stimulation site and other petroleum extraction facilities to
monitor for 12 different chemicals.
EXISTING LAW:
1)Requires the Department of Conservation's Division of Oil,
Gas, and Geothermal Resources (DOGGR) to regulate oil and gas
wells, tanks, and facilities attendant to oil and gas
production.
2)Establishes, pursuant to SB 4 (Pavley, Chapter 313, Statutes
of 2013), a comprehensive, multi-agency regulatory program for
oil and gas well stimulation treatments (e.g., hydraulic
fracturing, acid matrix stimulation). Establishes DOGGR as
AB 1501
Page 2
the lead agency for the multi-agency regulatory program.
3)Requires, on or before January 1, 2015, the Secretary of the
Natural Resources Agency to conduct and complete an
independent scientific study on well stimulation treatments,
including, but not limited to, hydraulic fracturing and acid
well stimulation treatments.
4)Requires the scientific study to evaluate the hazards and
risks and potential hazards and risks that well stimulation
treatments pose to natural resources and public, occupational,
and environmental health and safety, including potential
degradation of air quality.
5)Requires, on or before January 1, 2015, DOGGR, in consultation
with the Department of Toxic Substances Control, ARB, the
State Water Resources Control Board (SWRCB), the Department of
Resources Recycling and Recovery, and any local air districts
and regional water quality control boards in areas where well
stimulation treatments, including acid well stimulation
treatments and hydraulic fracturing treatments, may occur, to
adopt rules and regulations specific to well stimulation
treatments.
6)Provides ARB with the primary responsibility for the control
of vehicular air pollution, and air pollution control and air
quality management districts with the primary responsibility
for the control of air pollution from all sources other than
vehicular sources.
7)Requires the Public Utilities Commission (PUC) to open a
proceeding to adopt rules and procedures that minimize methane
leaks from PUC-regulated gas pipeline facilities, with the
goal of reducing Greenhouse Gas (GHG) emissions.
AB 1501
Page 3
THIS BILL:
1)Requires air districts to establish an emission standard for
methane from well stimulation treatment and other petroleum
extraction facilities.
2)Requires air districts to issue permits or another regulatory
document to an owner or operator to enforce the emission
standard created pursuant to this bill.
3)Specifies that the emission standard shall include
requirements on the owner or operator to monitor the well
stimulation treatment for methane leaks.
4)Requires air districts, when adopting the emission standard,
to consider the effects of production facilities on adjacent
vulnerable populations, including but not limited, to
school-age children and the elderly.
5)Requires ARB or local air districts to install monitoring
stations near any approved well stimulation site and other
petroleum extraction facilities to monitor for 12 specified
chemicals.
FISCAL EFFECT: Unknown
COMMENTS:
1)Author's statement.
AB 1501
Page 4
Oil and gas extraction activities, including fracking
activities, emit air pollutants. This problem has been
identified from a number of sources - a recent Clean
Water Action report and developing DOGGR regulations.
But the problem does not appear to be receiving the
urgent attention it needs. The fracking regulations,
for example, just suggest that the extraction
operation obtain a permit if the local air district
requires one. The Southern California Air Quality
Management District (AQMD) does some monitoring of
fracking, but neither AQMD nor other air districts set
emissions standards or require permits for oil and gas
extraction. DOGGR and the air districts are doing
little to address this problem.
2)Methane regulation. Methane is a potent contributor to
climate change that produces 34 times the warming impact than
the same amount of carbon dioxide. As stated above, DOGGR's
regulation requires compliance with all applicable
requirements by ARB or a local air district. ARB is in the
initial stages of drafting regulations to control methane at
new and existing oil and natural gas facilities. These
statewide standards will apply to all of California's air
districts and will encompass well stimulation, while achieving
co-benefits that protect public health from toxic emissions
from well stimulation or other sector sources. AB 1501 would
inform that process by requiring the standard to meet certain
criteria. This is similar to SB 1371 (Leno), Chapter 525,
Statutes of 2014, which put requirements on the PUC for
reducing methane emissions from the natural gas industry. SB
1371 is currently being implemented at the PUC. On March 18,
2015, the PUC released a staff report that identifies best
practices and new technologies in natural gas leak detection.
3)Schools and oil production. In November of 2014, a nonprofit
environmental organization called FracTracker reported that
more than 350,000 California children go to schools within a
AB 1501
Page 5
mile of an oil or gas well. They also stated that the top 11
school districts with the most wells are in the San Joaquin
Valley, with 10 of those in Kern County. In Kern County, the
Taft High School District has more than 33,000 wells in their
jurisdiction, and Kern Union High School District has more
than 19,000 wells in their jurisdiction. The report stated
that students attending school within 1 mile of oil and gas
wells are predominantly non-white (79.6%), and 60.3% are
Hispanic. In response to the report the Western States
Petroleum Association stated, "Hydraulic fracturing and other
well stimulation techniques are of little to no concern to
public health." AB 1501 requires the new emission standard to
consider the effects of production facilities on adjacent
vulnerable populations, including but not limited to
school-age children and the elderly.
4)Related legislation.
SB 454 (Allen) prohibits DOGGR from submitting a proposal for an
aquifer exemption to the U.S. Environmental Protection Agency
(U.S. EPA) unless DOGGR and SWRCB concur in writing that the
aquifer meets specified conditions. This bill is awaiting a
hearing in the Senate Natural Resources and Water Committee on
April 28.
SB 545 (Jackson) revises and updates DOGGR's authority and
permitting practices and reforms the handling of confidential
wells. This bill is awaiting a hearing in the Senate Natural
Resources and Water Committee on April 28.
SB 248 (Pavley) requires DOGGR to review and update its
regulations, data management practices, and enhance required
AB 1501
Page 6
reporting. This bill is awaiting a hearing in the Senate
Appropriations Committee.
AB 1490 (Rendon) prohibits well stimulation, and in some cases,
wastewater disposal in areas that are seismically active or have
recently had an earthquake. This bill will also be heard by this
committee on April 27.
AB 1420 (Salas) requires a local health officer, if notified of
a leak in a pipeline regulated by DOGGR, to direct the
responsible party to test soil, air, and water and based on the
test results make an assessment of the risk to the public. If
the leak poses a risk to the public, requires the local health
officer to notify residents affected by the leak of the threat
and provide assistance to the public. This bill will also be
heard by this committee on April 27.
AB 356 (Williams) requires, prior to submitting a proposal to
exempt an aquifer to U.S. EPA, that DOGGR hold a public hearing
and gain concurrence from SWRCB on the proposal. This bill also
requires groundwater monitoring plans for underground injection
projects as part of an application for approval of the project
or for the annual review of the project. This bill will also be
heard by this committee on April 27.
REGISTERED SUPPORT / OPPOSITION:
Support
Association of Irritated Residents
AB 1501
Page 7
California Communities Against Toxics
California League of Conservation Voters
Center on Race, Poverty & The Environment
Citizens Coalition for a Safe Community
Clean Water Action
Clean Water and Air Matter
Coalition for Clean Air
Earthworks
Environmental Working Group
Environment California
Fresnans Against Fracking
Mainstreet Moms
National Parks Conservation Association
AB 1501
Page 8
Save the Sespe
Sierra Club California
Opposition
California Independent Petroleum Association
Western States Petroleum Association
Analysis Prepared by:Michael Jarred / NAT. RES. / (916) 319-2092