BILL ANALYSIS Ó AB 1882 Page 1 Date of Hearing: April 20, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 1882 (Williams) - As Introduced February 11, 2016 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|6 - 2 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires the State Water Resources Control Board (SWRCB), or the appropriate regional water quality control board (RWQCB) to review and concur with any Underground Injection Control (UIC) project subject to review or approval. This bill AB 1882 Page 2 allows SWRCB, or the appropriate RWQCB to propose additional requirements for a project, including groundwater monitoring. FISCAL EFFECT: 1)Increased expenditure authority and ongoing costs of $2.1 million for SWRCB to fund 15 positons (Oil, Gas, and Geothermal Administrative Fund) to ensure existing UIC projects are operating in conformance with the federal Safe Drinking Water Act and state laws and regulations. According to SWRCB, the extensive technical review will include somewhere in the vicinity of 30,000 wells to determine if each injection project is protective of current and future beneficial uses of groundwater. These project-by-project reviews are technically complex and may require between 30 to 60 hours each. The reviews may include evaluating the Division of Oil, Gas and Geothermal Resources' (DOGGR) assessment as well as verifying the injection project is protective of water quality in the area. 2)Minor absorbable DOGGR costs. COMMENTS: 1)Purpose. Last year's resources budget trailer bill (SB 83) requires the Secretary for Environmental Protection (CalEPA) and the Secretary of the Natural Resources Agency (NRA) to appoint an independent review panel to evaluate DOGGR's administration of the UIC Program and consider whether it would be beneficial to transfer the program to SWRCB. This evaluation is required to be completed on or before January 1, AB 1882 Page 3 2018. The joint project review in this bill is consistent with the review process outlined in SB 83. However, this bill is an alternative approach to transferring the UIC program to SWRCB. 2)Background. In 1974, the Safe Drinking Water Act gave the US EPA the authority and responsibility to control underground injection to protect underground drinking water sources. In 1982, a primacy agreement was signed that allowed DOGGR to implement the US EPA's UIC program for oil and gas wells in California. In 2014, it was discovered that there were two versions of this agreement, one allowing exemptions for 11 aquifers with high water quality and another denying those exemptions and requiring all existing injection wells into those aquifers be phased out over 18 months. DOGGR's UIC permitting decisions have been based on the assumption that these exemptions were granted for the 11 aquifers in question. The discovery of the two different versions of agreement led to numerous federal and state responses and legislative directives. Currently, the SWRCB is reviewing and commenting on UIC projects. It has requested more data on some projects and has AB 1882 Page 4 indicated it will work with DOGGR to incorporate groundwater monitoring in others. However, it is unclear whether this will be a permanent arrangement or until US EPA's concerns with the program have been addressed. This bill codifies the agreement. 3)Support and Opposition. This bill is supported by numerous water agencies, public health and environmental groups, and local governments to ensure groundwater safety. The Western States Petroleum Association (WSPA), California Independent Petroleum Association (CIPA), California Chamber of Commerce (CalChamber), and California Manufacturers and Technology Association oppose this bill claiming it will create a confusing and duplicative underground injection permit process that will only lead to time-consuming and costly legal challenges without providing any additional environmental and groundwater protections beyond those already provided under existing law. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081 AB 1882 Page 5