Amended in Senate March 19, 2015

Senate BillNo. 233


Introduced by Senator Hertzberg

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(Coauthor: Assembly Member Rendon)

end insert

February 13, 2015


An act to amendbegin delete Section 5993 of the Fish and Game Code, relating to fish and wildlife.end deletebegin insert Sections 6603, 6604, 6610, 6611, 6612, 6613, 6614, 6615, 6616, and 6618 of the Fish and Game Code, relating to ocean resources.end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 233, as amended, Hertzberg. begin deleteConduits and screens: fish screen monitoring. end deletebegin insertMarine resources and preservation.end insert

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(1) The California Marine Resources Legacy Act establishes a program, administered by the Department of Fish and Wildlife, to allow partial removal of offshore oil structures. The act authorizes the department to approve the partial removal of offshore oil structures, if specified criteria are satisfied. The act requires an applicant, upon conditional approval for removal, to apportion a percentage of the cost-savings funds in accordance with a prescribed schedule to specified entities and funds. The act defines “cost savings” to mean the difference between the estimated cost to the applicant of complete removal of an oil platform, as required by state and federal leases, and the estimated costs to the applicant of partial removal of the oil platform pursuant to the act, and specifically provides for the inclusion of certain costs in cost savings.

end insert
begin insert

The bill would require an applicant, upon conditional approval for partial removal of an offshore oil structure, to transmit a portion of the cost savings to the department, instead of to the specified entities and funds. The bill would require the department to apportion those cost-savings funds received from the applicant in accordance with a prescribed schedule based on the date the application was submitted to the department. The bill would authorize the applicant to withdraw the application at any time before final approval and would require the department to return specified funds submitted to process the application that have not been expended as of the date of receipt of the notification of withdrawal.

end insert
begin insert

(2) Existing law requires the Natural Resources Agency to serve as the lead agency for the environmental review under the California Environmental Quality Act (CEQA) of a proposed project to partially remove an offshore oil structure pursuant to the California Marine Resources Legacy Act. Upon certification of environmental documents pursuant to CEQA, the California Marine Resources Legacy Act requires the State Lands Commission to determine the cost savings of partial removal compared to full removal of the structure and requires the Ocean Protection Council to determine whether partial removal provides a net environmental benefit to the marine environment compared to the full removal of the structure.

end insert
begin insert

This bill would instead require the department to serve as the lead agency for the environmental review under CEQA, to determine the cost savings of partial removal compared to full removal of the structure, and to determine whether partial removal provides a net environmental benefit to the marine environment compared to the full removal of the structure.

end insert
begin insert

The bill would require the department, in determining whether partial removal of the structure would provide a net benefit to the marine environment compared to full removal of the structure, to take certain adverse impacts to air quality and greenhouse gas emissions into account and to consult with the State Air Resources Board and the Ocean Protection Council, among other entities.

end insert
begin delete

Existing law regulates the construction and installation of any screen installed on conduits used in producing, generating, transmitting, delivering, or furnishing electricity for light, heat, or power and conduits with a maximum flow capacity over 250 cubic feet per second of water to prevent fish from passing through the conduit. Existing law requires, before the installation of any screen, the Department of Fish and Wildlife and the owner to enter into an agreement that defines the method of determining the cost of maintenance, repairs, operation, and keeping the screen free of debris.

end delete
begin delete

This bill would additionally require the agreement to define the method of determining the cost of monitoring the screen’s performance.

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Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 6603 of the end insertbegin insertFish and Game Codeend insertbegin insert is
2amended to read:end insert

3

6603.  

(a) This chapter establishes a program through which
4an applicant may voluntarily apply to the department to carry out
5partial removal of the structure.

6(b) The program established pursuant to this chapter shall be
7deemed consistent with, and part of, the California Artificial Reef
8Program pursuant to Article 2 (commencing with Section 6420)
9of Chapter 5 for purposes of compliance with federal law including
10the National Fishing Enhancement Act of 1984.

11(c) begin deleteExcept as specified in Section 6604, the end deletebegin insertThe end insertdepartment
12 shall serve as the primary authority for carrying out the program,
13including review and approval of applications to partially remove
14an offshore oil structure in state or federal waters and management
15and operation of decommissioned offshore oil structures in state
16or federal waters approved pursuant to this chapter.

17(d) Final approval of an application shall not be granted until
18the applicant complies with all requirements of the chapter,
19including the payment of all costs to the state to review and approve
20the proposed project as required by subdivision (b) of Section 6612
21and the transmittal of the required portion of cost savings to the
22endowment and other parties as required by Section 6618.

23(e) The department may obtain funds for the planning,
24development, maintenance, and operation of an offshore oil
25structure transferred to the department pursuant to this chapter and
26may accept gifts, subventions, grants, rebates, reimbursements,
27and subsidies from any lawful source.

28(f) The department may adopt regulations to implement this
29chapter.

30begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 6604 of the end insertbegin insertFish and Game Codeend insertbegin insert is amended
31to read:end insert

32

6604.  

(a) A proposed project to partially remove an offshore
33oil structure pursuant to this chapter is a project as defined in
P4    1 subdivision (c) of Section 21065 of the Public Resources Code
2and is therefore subject to the California Environmental Quality
3Act (Division 13 (commencing with Section 21000) of the Public
4Resources Code) and shall be reviewed pursuant to the time limits
5established in Section 21100.2 of the Public Resources Code.

6(b) Thebegin delete Natural Resources Agencyend deletebegin insert departmentend insert shall serve as
7the lead agency for the environmental review of any project
8proposed pursuant to this chapter.

9begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 6610 of the end insertbegin insertFish and Game Codeend insertbegin insert is amended
10to read:end insert

11

6610.  

(a) An owner or operator, or other party responsible for
12decommissioning, of an offshore oil structure may apply to the
13department for approval to partially remove the structure pursuant
14to the requirements of this chapter.

15(b) The department shall design and make available to potential
16applicants an application process that will facilitate review of the
17application by the department in a timely manner, consistent with
18Section 6604.

19(c) Upon receipt of an application pursuant to this section, the
20department shall transmit a copy of the application to the begin delete council,
21the commission, and the endowment, which shall constitute notice
22to these agencies.end delete
begin insert endowment.end insert

23begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 6611 of the end insertbegin insertFish and Game Codeend insertbegin insert is amended
24to read:end insert

25

6611.  

(a) The application for partial removal shall include, at
26a minimum, all of the following:

27(1) The applicant’s plan and schedule for partial removal of the
28offshore oil structure, including removal of any portion of the
29structure as appropriate to maintain navigational safety.

30(2) A determination of the estimated cost of partial removal and
31the estimated cost of full removal.

32(3) A determination of the environmental impacts and benefits
33to the marine environment from partial removal and full removal
34of the structure.

35(4) Identification of all permits, leases, and approvals required
36by any governmental agency, including a permit issued by the
37United States Army Corps of Engineers if required for offshore
38oil structures, and a lease issued by the commission if the proposed
39project involves state tidelands and submerged lands, and a
P5    1proposed schedule for the applicant or the state to receive those
2permits, leases, and approvals.

3(b) The department may require the applicant to submit a
4management plan for the structure following partial removal,
5including maintenance in a manner consistent with navigational
6safety, enforcement, and monitoring.

7(c) The information submitted pursuant to subdivisions (a) and
8(b) shall be used by the department for advisory purposes only.
9Final determinations regarding the partial removal and management
10of the offshore oil structure, net benefit to the marine environment
11from partial removal, and cost savings from partial removal shall
12be made solely by the department,begin delete council, and commission,end delete as
13specified in this chapter, based onbegin delete theirend deletebegin insert itsend insert independent review and
14judgment.

15begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 6612 of the end insertbegin insertFish and Game Codeend insertbegin insert is amended
16to read:end insert

17

6612.  

(a) Upon receipt of an application to partially remove
18an offshore oil structure pursuant to this chapter, the department
19shall determine whether the application is complete and includes
20all information needed by the department.

21(b) (1) Upon a determination that the application is complete,
22the applicant shall provide surety bonds executed by an admitted
23surety insurer, irrevocable letters of credit, trust funds, or other
24forms of financial assurances, determined by the department to be
25available and adequate, to ensure that the applicant will provide
26sufficient funds to thebegin delete department, council, commission,end delete
27begin insert departmentend insert and conservancy to carry out all required activities
28pursuant to this article, including all of the following:

29(A) Environmental review of the proposed project pursuant to
30Section 6604.

31(B) A determination of net environmental benefit pursuant to
32Section 6613.

33(C) A determination of cost savings pursuant to Section 6614.

34(D) Preparation of a management plan for the structure pursuant
35to Section 6615.

36(E) Implementation of the management plan and ongoing
37maintenance of the structure after the department takes title
38pursuant to Section 6620.

39(F) Development of an advisory spending plan pursuant to
40Section 6621.

P6    1(G) Other activities undertaken to meet the requirements of this
2article, including the costs of reviewing applications for
3completeness, and reviewing, approving, and permitting the
4proposed project, which includes the costs of determining whether
5the project meets the requirements of all applicable laws and
6regulations and the costs of environmental assessment and review.

7(2) The department shall consult with thebegin delete council, commission,
8andend delete
conservancy in determining appropriate funding for activities
9to be carried out bybegin delete those agencies.end deletebegin insert the conservancy.end insert

10(3) The funds provided pursuant to paragraph (1) shall not be
11considered in the calculation of cost savings pursuant to Section
126614 or the apportionment of cost savings pursuant to Section
136618.

14(c) The first person to file an application on and after January
151, 2011, to partially remove an offshore oil structure pursuant to
16this chapter, shall pay, in addition to all costs identified under
17subdivision (b), the startup costs incurred by the departmentbegin delete or the
18commissionend delete
to implement this chapter, including the costs to
19develop and adopt regulations pursuant to this chapter. This
20payment of startup costs shall be reimbursed by the department as
21provided in paragraph (3) of subdivision (c) of Section 6618.

22(d) As soon as feasible afterbegin delete reaching the agreementend deletebegin insert the
23applicant provides financial assurancesend insert
pursuant to subdivision
24(b), thebegin delete lead agencyend deletebegin insert departmentend insert shall begin the environmental
25review of the proposed project as required pursuant to Section
266604.

begin insert

27(e) The applicant may withdraw the application at any time
28before final approval. Upon notification that the applicant has
29withdrawn the application, the department shall return to the
30applicant any funds provided under subdivisions (b) and (c) that
31have not been expended as of the date of receipt of notification of
32withdrawal.

end insert
33begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 6613 of the end insertbegin insertFish and Game Codeend insertbegin insert is amended
34to read:end insert

35

6613.  

(a) Thebegin delete councilend deletebegin insert departmentend insert shall determine whether the
36partial removal of an offshore oil structure pursuant to this chapter
37provides a net benefit to the marine environment compared to the
38full removal of the structure.

39(b) As a necessary prerequisite to determining net environmental
40benefit as required in subdivision (a), thebegin delete councilend deletebegin insert departmentend insert shall,
P7    1upon receipt of its initial applicationbegin delete from the departmentend delete pursuant
2to Section 6610, establish appropriate criteria for evaluating the
3net environmental benefit of full removal and partial removal of
4offshore oil structures.

5(1) The criteria shall include, but are not limited to, the depth
6of the partially removed structure in relation to its value as habitat
7and the location of the structure, including its proximity to other
8reefs, both natural and artificial.

9(2) The criteria shall not include any consideration of the funds
10to be generated by the partial removal of the structure.

11(3) In determining the criteria, thebegin delete councilend deletebegin insert departmentend insert shall
12consult with appropriate entities, including, but not limited to, the
13begin delete department,end deletebegin insert council,end insert the commission,begin insert the State Air Resources
14Board,end insert
the California Coastal Commission, and the California
15Ocean Science Trust.

16(4) Thebegin delete councilend deletebegin insert departmentend insert shall establish the criteria in time
17to use them in making its initial determination of net environmental
18benefit pursuant to this section.

19(c) Upon certification of environmental documents pursuant to
20the California Environmental Quality Act, thebegin delete councilend deletebegin insert departmentend insert
21 shall, based on the criteria developed pursuant to subdivision (b)
22and other relevant information, determine whether partial removal
23of the structure would provide a net benefit to the marine
24environment compared to full removal of the structure. In making
25the determination, thebegin delete councilend deletebegin insert departmentend insert shall, at a minimum,
26take into account the following:

27(1) The contribution of the proposed structure to protection and
28productivity of fish and other marine life.

29(2) Any adverse impacts to biological resources or water quality,
30begin insert air quality or greenhouse gas emissions,end insert or any other marine
31environmental impacts, from the full removal of the facility that
32would be avoided by partial removal as proposed in the application.

33(3) Any adverse impacts to biological resources or water quality,
34begin insert air quality or greenhouse gas emissions,end insert or any other marine
35environmental impacts, from partial removal of the structure as
36proposed in the application.

37(4) Any benefits to the marine environment that would result
38from the full removal of the structure or from partial removal as
39proposed in the application.

P8    1(5) Any identified management requirements and restrictions
2of the partially removed structure, including, but not limited to,
3restrictions on fishing or other activities at the site.

4(d) Benefits resulting from the contribution of cost savings to
5the endowment shall not be considered in the determination of net
6environmental benefit.

7(e) Thebegin delete councilend deletebegin insert departmentend insert may contract or enter into a
8memorandum of understanding with any other appropriate
9governmental or nongovernmental entity to assist in its
10determination of net environmental benefit.

11(f) The determination made pursuant to this sectionbegin delete and
12submitted to the department by the councilend delete
shall constitute the
13final determination and shall not be revised except by thebegin delete council.end delete
14begin insert department.end insert

begin delete

15(g) The council shall take all feasible steps to complete its
16determination in a timely manner that accommodates the
17department’s schedule for consideration of the application.

end delete
18begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 6614 of the end insertbegin insertFish and Game Codeend insertbegin insert is amended
19to read:end insert

20

6614.  

(a) Upon certification of the appropriate environmental
21begin delete documents by the lead agency, the commissionend deletebegin insert documents, the
22departmentend insert
shall determine, or cause to be determined, the cost
23savings that will result from the partial removal of an offshore oil
24structure as proposed in the application compared to full removal
25of the structure.

26(b) Thebegin delete commissionend deletebegin insert departmentend insert shall ensure that any cost
27savings are accurately and reasonably calculated. Thebegin delete commissionend delete
28begin insert departmentend insert may contract or enter into a memorandum of
29understanding with any other appropriate governmental agency or
30other party, including an independent expert, to ensure that cost
31savings are accurately and reasonably calculated.

32(c) Thebegin delete commissionend deletebegin insert departmentend insert shall consider any estimates of
33cost savings made by any governmental agency, including, but not
34limited to, the Internal Revenue Service, the Franchise Tax Board,
35 and the United States Department of the Interior. Thebegin delete commissionend delete
36begin insert departmentend insert shall include in its determination a written explanation,
37which shall be available to the public, of the differences, and the
38reasons for the differences, between thebegin delete commission’send deletebegin insert department’send insert
39 determination of cost savings and any other estimates of cost
40savings thebegin delete commissionend deletebegin insert departmentend insert considered.

P9    1(d) The applicant shall provide all necessary documentation, as
2determined by thebegin delete commission,end deletebegin insert department,end insert to allow the
3begin delete commissionend deletebegin insert departmentend insert to calculate the amount of cost savings.
4Failure to provide information requested by thebegin delete commissionend delete
5begin insert departmentend insert in a timely manner may result in rejection of the
6application.

7(e) The determination made pursuant to this sectionbegin delete and
8submitted to the department by the commissionend delete
shall constitute
9the final determination and shall not be revised except by the
10begin delete commission.end deletebegin insert department.end insert

begin delete

11(f) The commission shall take all feasible steps to complete its
12determination in a timely manner that accommodates the
13department’s schedule for consideration of the application.

end delete
14begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 6615 of the end insertbegin insertFish and Game Codeend insertbegin insert is amended
15to read:end insert

16

6615.  

Prior to granting conditional approval of an application
17for partial removal of an offshore oil structure, the department
18shall do all of the following:

19(a) Prepare a plan to manage the offshore oil structure after its
20partial removal. The plan shall include measures to manage fishery
21and marine life resources at and around the structure in a manner
22that will ensure that the net benefits to the marine environment
23identified pursuant to Section 6613 are maintained or enhanced.
24Consistent with state and federal law, management measures may
25include a buffer zone in which fishing or removal of marine life
26is restricted or prohibited.

27(b) Provide an opportunity for public comment on the
28begin delete applicationend deletebegin insert environmental documentend insert pursuant to the California
29Environmental Quality Act.

30(c) Hold a public hearingbegin insert for comment on the environmental
31document pursuant to the California Environmental Quality Actend insert

32 in the county nearest to the location of the offshore oil structure
33that is the subject of the application.

34begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 6616 of the end insertbegin insertFish and Game Codeend insertbegin insert is amended
35to read:end insert

36

6616.  

The department may grant conditional approval of an
37application for partial removal of an offshore oil structure only if
38all of the following criteria are satisfied:

39(a) The partial removal of the offshore oil structure and the
40planning, development, maintenance, and operation of the structure
P10   1would be consistent with all applicable state, federal, and
2international laws, including, but not limited to, all of the
3following:

4(1) The federal Magnuson-Stevens Fishery Conservation and
5Management Act (16 U.S.C. Sec. 1801 et seq.).

6(2) The federal National Fishing Enhancement Act of 1984 (33
7U.S.C. Sec. 2101 et seq.).

8(3) The federal Coastal Zone Management Act (16 U.S.C. Sec.
91451 et seq.).

10(4) The California Coastal Management Program.

11(5) The Marine Life Management Act (Part 1.7 (commencing
12with Section 7050)).

13(6) The Marine Life Protection Act (Chapter 10.5 (commencing
14with Section 2850) of Division 3).

15(7) State and federal water quality laws.

16(8) Navigational safety laws.

17(b) The partial removal of the offshore oil structure provides a
18net benefit to the marine environment compared to full removal
19of the structure, as determined pursuant to Section 6613.

20(c) The cost savings that would result from the conversion of
21the offshore oil platform or production facility have been
22determined pursuant to Section 6614.

23(d) The applicant has provided sufficient funds consistent with
24subdivision (b) of Section 6612.

25(e) The department and the applicant have entered into a
26contractual agreement whereby the applicant will provide sufficient
27funds for overall management of the structure by the department,
28including, but not limited to, ongoing management, operations,
29maintenance, monitoring, and enforcement as these relate to the
30structure.

31(f) The department has entered into an indemnification
32agreement with the applicant that indemnifies the state and the
33department, to the extent permitted by law, against any and all
34 liability that may result, including, but not limited to, active
35negligence, and including defending the state and the department
36against any claims against the state for any actions the state
37undertakes pursuant to this article. The agreement may be in the
38form of an insurance policy, cash settlement, or other mechanism
39as determined by the department. In adopting indemnification
40requirements for the agreement, the department shall ensure that
P11   1the state can defend itself against any liability claims against the
2state for any actions the state undertakes pursuant to this article
3and pay any resulting judgments. The department shall consult
4with and, as necessary, use the resources of the office of the
5Attorney General in preparing and entering into the indemnification
6agreement.

7(g) The applicant has applied for and received all required
8permits, leases, and approvals issued by any governmental agency,
9including, but not limited to, a lease issued by the commission if
10the proposed project involves state tidelands and submerged lands.
11For structures located in federal waters, all of the following
12requirements shall be met:

13(1) The department and the owner or operator of the structure
14reach an agreement providing for the department to take title to
15the platform or facility as provided in Section 6620.

16(2) The department acquires the permit issued by the United
17States Army Corps of Engineers.

18(3) The partial removal of the structure is approved by the
19Bureau ofbegin delete Ocean Energy Management, Regulation andend deletebegin insert Safety and
20Environmentalend insert
Enforcement of the United States Department of
21the Interior.

22begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 6618 of the end insertbegin insertFish and Game Codeend insertbegin insert is amended
23to read:end insert

24

6618.  

(a) The cost savings from the partial removal of an
25offshore oil structure, as determined pursuant to Section 6614,
26shall be apportioned and transmitted as described in this section.

27(b) Upon receipt of conditional approval pursuant to Section
286617, thebegin delete owner or operator of the structureend deletebegin insert applicantend insert shall
29apportion and directly transmit a portion of the total amount of the
30cost savings to thebegin delete entities in subdivision (c)end deletebegin insert departmentend insert as follows:

31(1) Fifty-five percent, ifbegin delete transmittedend deletebegin insert the application was
32submittedend insert
before January 1,begin delete 2017.end deletebegin insert 2023.end insert

33(2) Sixty-five percent, ifbegin delete transmittedend deletebegin insert the application was
34submittedend insert
on or after January 1,begin delete 2017,end deletebegin insert 2023,end insert and before January
351,begin delete 2023.end deletebegin insert 2028.end insert

36(3) Eighty percent, ifbegin delete transmittedend deletebegin insert the application was submittedend insert
37 on or after January 1,begin delete 2023.end deletebegin insert 2028.end insert

38(c) Of the total amount of the cost savings to be transmitted
39pursuant to subdivision (b), thebegin delete applicantend deletebegin insert departmentend insert shall directly
40transmit the following amounts to the following entities:

P12   1(1) Eighty-five percent shall be deposited into the California
2Endowment for Marine Preservation established pursuant to
3Division 37 (commencing with Section 71500) of the Public
4Resources Code.

5(2) Ten percent shall be deposited into the General Fund.

6(3) Two percent shall be deposited into the Fish and Game
7Preservation Fund for expenditure, upon appropriation by the
8Legislature, by the department to pay any costs imposed by this
9chapter that are not otherwise provided for pursuant to subdivision
10(b) of Section 6612 and subdivision (e) of Section 6616. Any
11moneys remaining in the Fish and Game Preservation Fund, after
12providing for these costs, shall be used, upon appropriation by the
13 Legislature, first to reimburse the payment of the startup costs
14described in subdivision (c) of Section 6612, and thereafter to
15conserve, protect, restore, and enhance the coastal and marine
16resources of the state consistent with the mission of the department.

17(4) Two percent shall be deposited into the Coastal Act Services
18Fund, established pursuant to Section 30620.1 of the Public
19Resources Code, and shall be allocated to support state agency
20work involving research, planning, and regulatory review
21associated with the application and enforcement of coastal
22management policies in state and federal waters pursuant to state
23and federal quasi-judicial authority over offshore oil and gas
24development.

25(5) One percent shall be deposited with the board of supervisors
26of the county immediately adjacent to the location of the facility
27prior to its decommissioning. The amount paid to the county shall
28be managed pursuant to paragraph (1) of subdivision (d) of Section
296817 of the Public Resources Code.

begin delete
30

SECTION 1.  

Section 5993 of the Fish and Game Code is
31amended to read:

32

5993.  

Before the installation of any screen under the provisions
33of this article, the department and the owner shall enter into an
34agreement defining the method of determining the cost of
35monitoring screen performance, maintenance, repairs, operation,
36and keeping the screen free of debris, which agreement shall
37provide that, in the event either the department or the owner objects
P13   1to the cost, the matter shall be referred to the Director of General
2Services for his or her final and conclusive decision.

end delete


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