Senate Bill No. 900

Introduced by Senator Jackson

(Principal coauthor: Assembly Member Williams)

January 21, 2016

An act to amend Section 6217 of, and to add Section 6212 to, the Public Resources Code, relating to state lands.

LEGISLATIVE COUNSEL’S DIGEST

SB 900, as introduced, Jackson. State lands: coastal hazard removal and remediation program.

(1) Existing law establishes the State Lands Commission in the Natural Resources Agency and prescribes the functions and duties of the commission. Under existing law, the commission has jurisdiction over various state lands, including coastal lands.

This bill would require, upon appropriation of moneys by the Legislature, the commission to administer a coastal hazard removal and remediation program, as specified. The bill would authorize the commission to seek and accept on behalf of the state any gift, bequest, devise, or donation whenever the gift and the terms and conditions thereof will aid in actions undertaken to administer that program. The bill would authorize the commission to seek to abandon, in cooperation with the Division of Oil, Gas, and Geothermal Resources, legacy oil and gas wells that present a hazard to the public health and safety and the environment. The bill would require the commission to annually report to the Legislature the activities and accomplishments of the program.

(2) Existing law, with specified exceptions, generally requires the State Lands Commission, on and after July 1, 2006, to deposit all revenue, money, and remittances, derived from mineral extraction leases on state tide and submerged lands, including tideland oil revenue, into the General Fund, to be available upon appropriation by the Legislature for specified purposes. Existing law establishes the Land Bank Fund, a continuously appropriated fund, from which the commission may expend moneys for management and improvement of real property held by the commission, as trustee, to provide open space, habitat for plants and animals, and public access.

This bill would require that, for the 2017-18 fiscal year, out of those funds deposited into the General Fund by the commission, the sum of $2,000,000 be transferred to the Land Bank Fund and be available, upon appropriation in the annual Budget Act, for the purpose of implementing the coastal hazard and remediation program. The bill would require that, commencing with the 2018-19 fiscal year and each fiscal year thereafter, an amount sufficient to bring the unencumbered balance of the Land Bank Fund available for the purpose of implementing the program to $2,000,000 be transferred to that fund and be available, upon an appropriation in the annual Budget Act, for the purpose of implementing the program.

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

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

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) Scattered along the California coastline are the remnants of
many old, manmade structures including abandoned oil and gas
wells, groins, jetties, piers, pilings, and seawalls.

(b) These remnants, which are often covered and uncovered by
tides, are the legacy of the rapid commercial development along
the coastline that began just before the turn of the 20th century.

(c) Most legacy wells were abandoned in the early 1900s when
there was little or no oversight of the abandonment activities, so
the level of demolition and removal, if any, varied from well to
well. Some legacy wells, therefore, may seep oil into the surf zone
impacting swimmers, surfers, and other recreational users, and
causing environmental degradation.

(d) The State Lands Commission has primary jurisdiction over
sovereign lands that are held in trust for statewide public purposes,
including, commerce, navigation, fishing, recreation, and open
space and habitat preservation.

(e) The State Lands Commission has long recognized the serious
and ongoing health concerns and safety hazards posed by coastal
hazards and legacy wells.

(f) There is a critical need for adequate funding to conduct an
in-depth inventory of coastal hazards, including legacy oil and gas
wells and related infrastructure, along the California coastline. An
assessment of the entitlement of lands and the engineering
requirements and related funding needs for removal of coastal
hazards is necessary to begin considering how to remove coastal
hazards and remediate legacy wells.

(g) Provided adequate funding, the State Lands Commission
can inventory coastal hazards, legacy wells and other oil and gas
related hazards along the California coastline, including
determining specific GPS locations, assessing entitlement
requirements, preparing preliminary engineering requirements and
removal cost estimates for each hazard, and removing and
remediating hazards that are a significant risk to public health and
safety and the environment. Adequate funding will also enable the
State Lands Commission to survey and monitor oil seepage in state
waters under its jurisdiction and on tidelands, and to request studies
to determine oil seepage locations, rates, environmental impacts,
and mitigation measures.

SEC. 2.  

Section 6212 is added to the Public Resources Code,
to read:

6212.  

(a) Upon appropriation of moneys by the Legislature
for the purposes of this section, the commission shall administer
a coastal hazard removal and remediation program to do all of the
following:

(1) Remove coastal hazards from lands under its jurisdiction.

(2) Conduct an in-depth inventory of the legacy oil and gas
wells and other coastal hazards along the California coastline.

(3) Survey and monitor oil seepage in state waters and tidelands
under its jurisdiction and request studies to determine oil seepage
locations, rates, environmental impacts, and possible mitigation
measures.

(b) Notwithstanding Section 11005 of the Government Code
and any other law requiring approval by a state officer of gifts,
bequests, devises, or donations, the commission may seek and
accept on behalf of the state any gift, bequest, devise, or donation
whenever the gift and the terms and conditions thereof will aid in
actions undertaken pursuant to subdivision (a).

(c) In cooperation with the Division of Oil, Gas, and Geothermal
Resources, the commission may seek to abandon legacy oil and
gas wells that present a hazard to the public health and safety and
the environment.

(d) The commission shall annually report to the Legislature the
activities and accomplishments of the program. The commission
may include this information in the annual report it submits
pursuant to Section 8618.

(e) For purposes of this section the following definitions apply:

(1) “Coastal hazards,” include, but are not limited to, manmade
structures, including piers, jetties, groins, seawalls, and facilities
associated with past oil extraction operations, that pose a hazard
to the public health and safety. Coastal hazards may include wood
or steel piles or piling, sheet metal pilings, H piles and H beams,
well casings, well caissons, railroad irons, cables, angle bars, pipes,
pipelines, rip rap, and wood beams and structures.

(2) “Legacy oil and gas wells” are oil and gas wells that were
drilled in the surf zone or just offshore before the enactment of the
State Tidelands Act of 1921.

SEC. 3.  

Section 6217 of the Public Resources Code is amended
to read:

6217.  

begin delete (a) end delete begin delete   end delete With the exception of revenue derived from state
school lands and from sources described in Sections 6217.6,
6301.5, 6301.6, 6855, and Sections 8551 to 8558, inclusive, and
Section 6404 (insofar as the proceeds are from property that has
been distributed or escheated to the state in connection with
unclaimed estates of deceased persons), the commission shall
deposit all revenue, money, and remittances received by the
commission under this division, and under Chapter 138 of the
Statutes of 1964, First Extraordinary Session, in the General Fund.
Out of those funds deposited in the General Fund, sufficient
moneys shall be made available each fiscal year for the following
purposes:

begin delete

(1)

end delete

begin insert (a) end insert  Payment of refunds, authorized by the commission, out of
appropriations made for that purpose.

begin delete

(2)

end delete

begin insert (b) end insert  Payment of expenditures of the commission as provided in
the annual Budget Act.

begin delete

(3)

end delete

begin insert (c) end insert  Payments to cities and counties of the amounts specified in
Section 6817 for the purposes specified in that section, out of
appropriations made for that purpose.

begin delete

(4)

end delete

begin insert (d) end insert  Payments to cities and counties of the amounts agreed to
pursuant to Section 6875, out of appropriations made for that
purpose.

begin insert

(e) (1) For the 2017-18 fiscal year, the sum of two million
dollars ($2,000,000) shall be transferred to the Land Bank Fund
and, notwithstanding Section 8610, shall be available, upon
appropriation in the annual Budget Act, for the purpose of
implementing the commission’s coastal hazard and remediation
program provided in Section 6212.

end insert begin insert

(2) Commencing with the 2018-19 fiscal year, and each fiscal
year thereafter, an amount sufficient to bring the unencumbered
balance of the Land Bank Fund available for the purpose of
implementing the commission’s coastal hazard and remediation
program provided in Section 6212 to two million ($2,000,000)
shall be transferred to the Land Bank Fund and, notwithstanding
Section 8610, shall be available, upon appropriation in the annual
Budget Act, for the purpose of implementing the commission’s
coastal hazard and remediation program provided in Section 6212.

end insert begin delete

(b) This section shall become operative on July 1, 2006.

end delete