Amended in Assembly August 17, 2016

Amended in Senate May 31, 2016

Amended in Senate March 9, 2016

Senate BillNo. 900


Introduced by Senator Jackson

(Principal coauthor: Assembly Member Williams)

(Coauthor: Senator Pavley)

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 amended, 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, upon appropriation of moneys by the Legislature, require the commission to, within 2 years, 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, as defined, 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 ofbegin delete $2,000,000end deletebegin insert $500,000end insert 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 removal 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 tobegin delete $2,000,000end deletebegin insert $500,000end insert 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:

P2    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) Scattered along the California coastline are the remnants of
4many old, human-made structures including abandoned oil and
5gas wells, groins, jetties, piers, pilings, and seawalls.

6(b) These remnants, often covered and uncovered by tides, are
7the legacy of the rapid commercial development along the coastline
8that began just before the turn of the 20th century.

9(c) Most legacy oil and gas wells were abandoned in the early
101900s when there was little or no oversight of the abandonment
11and removal, if any, varied from well to well. Some legacy oil and
12gas wells, therefore, may seep oil into the surf zone impacting
P3    1swimmers, surfers, and other recreational users, and causing
2environmental degradation.

3(d) The State Lands Commission has primary jurisdiction over
4sovereign lands along the California coastline that are held in trust
5for statewide public purposes, including, commerce, navigation,
6fishing, recreation, and open space and habitat preservation.

7(e) The State Lands Commission has long recognized the serious
8and perennial health concerns and safety hazards that coastal
9hazards and legacy oil and gas wells pose.

10(f) There is a critical need for adequate funding to inventory
11coastal hazards, including legacy oil and gas wells and related
12infrastructure, along the California coastline in order to begin
13determining how to remove coastal hazards and to identify and
14remediate leaking legacy oil and gas wells.

15(g) With adequate funding, the State Lands Commission can
16inventory coastal hazards, legacy oil and gas wells and other oil
17and gas related hazards along the California coastline, including
18determining GPS locations, assessing entitlement requirements,
19preparing preliminary engineering requirements and removal cost
20estimates for each hazard, and removing and remediating hazards
21that are a significant risk to public health and safety and the
22environment. Adequate funding will also enable the State Lands
23Commission to survey and monitor oil seepage in state waters
24under its jurisdiction and on tidelands, and to request studies to
25determine oil seepage locations, rates, environmental impacts, and
26mitigation measures.

27

SEC. 2.  

Section 6212 is added to the Public Resources Code,
28to read:

29

6212.  

(a) Upon appropriation of moneys by the Legislature
30for the purposes of this section, the commission shall, within two
31years, administer a coastal hazard removal and remediation
32program to do all of the following:

33(1) Complete an in-depth inventory of legacy oil and gas wells
34and other coastal hazards along the California coastline, including
35conducting field surveys and determining high-priority hazards
36and legacy oil and gas wells to remediate.

37(2) Survey, study, and monitor oil seepage in state waters and
38tidelands under its jurisdiction to determine oil seepage locations,
39rates, and environmental impacts. The study information can
40facilitate possible mitigation measures.

P4    1(3) Begin the process of remediating improperly abandoned
2legacy oil and gas wells that have a high risk of leaking oil and,
3with any remaining funds, remove other identified coastal hazards.

4(b) Notwithstanding Section 11005 of the Government Code
5and any other law requiring approval by a state officer of gifts,
6bequests, devises, or donations, the commission may seek and
7accept on behalf of the state any gift, bequest, devise, or donation
8whenever the gift and the terms and conditions thereof will aid in
9actions undertaken pursuant to subdivision (a).

10(c) In cooperation with the Division of Oil, Gas, and Geothermal
11Resources, the commission may seek to abandon legacy oil and
12gas wells that present a hazard to the public health and safety and
13the environment.

14(d) The commission shall annually report to the Legislature the
15activities and accomplishments of the program. The commission
16may include this information in the annual report it submits
17pursuant to Section 8618.

begin insert

18
(e) The commission shall prioritize it activities under this section
19based on available resources.

end insert
begin delete

20(e)

end delete

21begin insert(f)end insert For purposes of this section the following definitions apply:

22(1) “Coastal hazards,” include, but are not limited to, legacy oil
23and gas wells and human-made structures, including piers, jetties,
24 groins, seawalls, and facilities associated with past oil extraction
25and other commercial operations, that pose a hazard to the public
26health and safety. Coastal hazards may include wood or steel piles
27or piling, sheet metal pilings, H piles and H beams, well casings,
28well caissons, railroad irons, cables, angle bars, pipes, pipelines,
29rip rap, and wood beams and structures.

30(2) “Legacy oil and gas wells” are wells drilled near shore,
31before current abandonment standards, where there is little or no
32information on the well’s abandonment procedure and there is no
33viable company with the responsibility to reabandon the well
34should it start leaking or pose a threat to the environment or the
35public health and safety.

36

SEC. 3.  

Section 6217 of the Public Resources Code is amended
37to read:

38

6217.  

With the exception of revenue derived from state school
39lands and from sources described in Sections 6217.6, 6301.5,
406301.6, 6855, and Sections 8551 to 8558, inclusive, and Section
P5    16404 (insofar as the proceeds are from property that has been
2distributed or escheated to the state in connection with unclaimed
3estates of deceased persons), the commission shall deposit all
4revenue, money, and remittances received by the commission
5under this division, and under Chapter 138 of the Statutes of 1964,
6First Extraordinary Session, in the General Fund. Out of those
7funds deposited in the General Fund, sufficient moneys shall be
8made available each fiscal year for the following purposes:

9(a) Payment of refunds, authorized by the commission, out of
10appropriations made for that purpose.

11(b) Payment of expenditures of the commission as provided in
12the annual Budget Act.

13(c) Payments to cities and counties of the amounts specified in
14Section 6817 for the purposes specified in that section, out of
15appropriations made for that purpose.

16(d) Payments to cities and counties of the amounts agreed to
17pursuant to Section 6875, out of appropriations made for that
18purpose.

19(e) (1) For the 2017-18 fiscal year, the sum ofbegin delete two millionend deletebegin insert five
20hundred thousandend insert
dollarsbegin delete ($2,000,000)end deletebegin insert ($500,000)end insert shall be
21transferred to the Land Bank Fund and, notwithstanding Section
228610, shall be available, upon appropriation in the annual Budget
23Act, for the purpose of implementing the commission’s coastal
24hazard removal and remediation program provided in Section
256212.

26(2) Commencing with the 2018-19 fiscal year, and each fiscal
27year thereafter, an amount sufficient to bring the unencumbered
28balance of the Land Bank Fund available for the purpose of
29implementing the commission’s coastal hazard removal and
30remediation program provided in Section 6212 tobegin delete two millionend deletebegin insert five
31hundred thousandend insert
dollarsbegin delete ($2,000,000)end deletebegin insert ($500,000)end insert shall be
32transferred to the Land Bank Fund and, notwithstanding Section
338610, shall be available, upon appropriation in the annual Budget
34Act, for the purpose of implementing the commission’s coastal
35hazard removal and remediation program provided in Section
366212.



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