BILL NUMBER: AB 2503 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 28, 2010
AMENDED IN ASSEMBLY APRIL 20, 2010
AMENDED IN ASSEMBLY APRIL 5, 2010
INTRODUCED BY Assembly Member John A. Perez
FEBRUARY 19, 2010
An act to repeal Section 6429.5 of, and to repeal and add Article
2 (commencing with Section 6420) of Chapter 5 of Part 1 of Division 6
of, the Fish and Game Code, and to add Division 37 (commencing with
Section 71500) to the Public Resources Code, relating to ocean
resources.
LEGISLATIVE COUNSEL'S DIGEST
AB 2503, as amended, John A. Perez. Ocean resources: artificial
reefs.
Existing law establishes a California Artificial Reef Program,
administered by the Department of Fish and Game, to include the
placement of artificial reefs, as defined, in state waters and a
prescribed study of existing successful reefs and new reefs to
determine design criteria.
This bill would repeal those provisions and, instead, would enact
the California Marine Life Legacy Act to establish a program of
artificial reef research and development, administered by the
department. The act would authorize the department to approve the
conversion of an offshore oil platform or production facility into an
artificial reef, if specified criteria are satisfied, including a
finding that the alternative of converting the decommissioned
offshore oil platform or production facility into an artificial reef
provides a net benefit to the environment compared to the alternative
of removing the facilities from the marine environment
. The act would require the department, for purposes of
determining whether such a conversion provides a net
environmental benefit, to determine criteria for biological
evaluation of an oil platform or production facility for use as an
artificial reef and to consult with and advise the California Coastal
Commission, the State Lands Commission, and other responsible
agencies as to those criteria. The act would require the department
to determine the cost savings of a conversion, and would require the
owner or operator, when all applicable permits and approvals
are granted upon conditional approval for
conversion, to apportion a percentage of the cost savings funds in
accordance with a prescribed schedule to the California Endowment for
Marine Preservation and the county immediately adjacent to the
location of the facility. The act would authorize the department to
take title to a decommissioned offshore oil platform or production
facility in either state or federal open
coastal waters if a prescribed
agreement is reached requirements are met . The
act, until January 1, 2014, would establish an accelerated
existing platform decommissioning program with
alternate provisions for the conversion of certain
existing oil platforms or production facilities ,
including into artificial reefs, which would include
exped ited review and an alternate apportionment
schedule.
The bill would establish the California Endowment for Marine
Preservation, subject to the Nonprofit Public Benefit Corporation
Law, in order to create a permanent source of funding for projects
that will conserve, protect, restore, and enhance the open coastal
marine resources of the state. The endowment would be governed by a
board of directors, with membership and duties prescribed by the
bill.
The bill would require the endowment to coordinate its activities
with the Department of Fish and Game, the California Coastal
Commission, the San Francisco Bay Conservation and Development
Commission, the State Lands Commission, and appropriate federal
agencies.
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. It is the intent of the Legislature
that the process for evaluating the proposed conversion of
decommissioned offshore oil platforms and facilities into artificial
reefs take into account the findings and recommendations of the study
being coordinated by the California Ocean Science Trust, with
support from the California Ocean Protection Council and others,
entitled "Study to Provide Information Related to Oil and Gas
Platform Decommissioning Alternatives in California," which is due to
be released in June 2010.
SECTION 1. SEC. 2. Article 2
(commencing with Section 6420) of Chapter 5 of Part 1 of Division 6
of the Fish and Game Code is repealed.
SEC. 2. SEC. 3. Article 2
(commencing with Section 6420) is added to Chapter 5 of Part 1 of
Division 6 of the Fish and Game Code, to read:
Article 2. California Marine Life Legacy Act
6420. The Legislature finds and declares all of the following:
(a) This act shall be known, and may be cited, as the California
Marine Life Legacy Act.
(b) California's extraordinary marine biological diversity is a
vital asset to the state and nation. The diversity of species and
ecosystems found in the ocean waters off the state is important to
public health and well-being, ecological health, and ocean-dependent
industries.
(c) A program of artificial reef research and development,
including reef design, placement, and monitoring, is in the public
interest and can best be accomplished under the administration of the
department with the cooperation and assistance of the University of
California, the California State University, the California Ocean
Science Trust, other established, appropriate academic institutions,
and other organizations with demonstrated expertise in the field.
(d) This state is currently implementing a system of marine
protected areas in order to protect habitat and ecosystems, conserve
biological diversity, provide a sanctuary for fish and other sea
life, enhance recreational and educational opportunities, and provide
a reference point against which scientists can measure changes
elsewhere in the marine environment, and may help rebuild depleted
fisheries.
(e) Efforts to enhance marine diversity through the placement of
artificial reefs need to be investigated.
(f) A state artificial reef research and construction program
under the administration of the department is necessary to coordinate
ongoing studies and construction of artificial reefs in waters of
the state.
(g) It is important to provide adequate funding to meet
legislatively imposed mandates.
6421. For purposes of this article, the following terms have the
following meanings:
(a) "Artificial reef" means manmade or natural objects
intentionally placed or allowed to remain in place in selected areas
of the marine environment to duplicate those conditions that induce
production of fish and invertebrates on natural reefs and rough
bottoms, support additional biomass, enhance biodiversity and that
stimulate the growth of kelp or other midwater plant life that
creates natural habitat for those species.
(b) "Cost savings" are the difference between the estimated cost
to the operator or owner of complete removal of an offshore oil
platform or production facility and the costs incurred by the
operator or owner of converting a platform or facility into an
artificial reef.
(c) "Endowment" means the California Endowment for Marine
Preservation established in Division 37 (commencing with Section
71500) of the Public Resources Code.
(d) "National Fishing Enhancement Act of 1984" means Title II of
Public Law 98-623.
(e) "Offshore oil platform or production facility" means
platforms, piers, and artificial islands located seaward of mean
lower low water, used for oil and gas exploration, development,
production, processing, or storage.
(f) "Oil" means any kind of petroleum, liquid hydrocarbons,
natural gas, or petroleum products or any fraction or residues
therefrom.
(g) "Open coastal marine resource" means those marine resources
that use open coastal waters as their habitat.
(h) "Open coastal waters" means the area composed of the submerged
lands of the state that are below the mean lower low water extending
seaward to the boundaries of the Exclusive Economic Zone.
(i) "Production" means increases in the biomass of a species or
number of species.
(j) "Program" means the California Artificial Reef Program
administered pursuant to this article.
(k) "Reef materials" include only materials allowed under the
National Artificial Reef Plan, adopted under the National Fishing
Enhancement Act of 1984 for construction of artificial reefs.
(l) "State waters" means waters within the seaward boundary of the
state as identified in Section 2 of Article III of the California
Constitution.
6422. The department shall administer the program.
6423. The program shall include all of the following elements:
(a) The placement of artificial reefs, including, but not limited
to, decommissioned offshore oil platforms allowed to remain in place
as artificial reefs in state and federal waters.
(b) A study of existing successful reefs and all new reefs placed
by the program to determine the design criteria needed to construct
artificial reefs capable of increasing marine biomass and
biodiversity in state and federal waters.
(c) A determination of the requirements for reef siting and
placement.
(d) Consideration of modification and use of existing marine
structures in both state and federal waters as artificial reefs.
6424. The amount allocated for the administration of the program
in any fiscal year shall not exceed the amount authorized by
applicable state and federal policy guidelines.
6426. The Legislature hereby finds and declares all of the
following:
(a) There is an existing permitting process for decommissioning of
offshore oil platforms or production facilities.
(b) Decommissioning of the offshore oil platforms or production
facilities has already occurred and as part of the permitting process
there was some consideration given to converting platforms or
facilities into artificial reefs.
(c) The operator or owner of offshore oil platforms or production
facilities could save a considerable sum of money if the
decommissioned offshore oil platform or production facility is
allowed by permitting local, state, and federal agencies to remain in
place and be converted into an artificial reef.
(d) The savings that result from that conversion should be shared
with the citizens of this state.
(e) A mechanism is needed to ensure that if local, state, and
federal agencies allow the conversion of an offshore oil platform or
production facility to an artificial reef, the citizens of this state
would share in the savings and those shared funds would be used to
benefit the open coastal marine resources that lie offshore of this
state.
(f) Offshore oil platforms may function as artificial reefs and
provide habitat for many species, including threatened and endangered
species.
6426.1. The department shall serve as the primary authority for
managing and operating artificial reefs created from offshore oil
platforms or production facilities. The department may obtain funds
for the planning, development, maintenance, and operation of those
artificial reefs and may accept gifts, subventions, grants, rebates,
and subsidies from any lawful source. The department may adopt
regulations to implement this article.
6427. The department may This article
establishes a program through which an owner or operator
of an offshore oil platform or production facility may voluntarily
choose to create an artificial reef from the offshore oil platform or
production facility if the requirements of this article and other
applicable legal requirements are met. The department may
conditionally approve the conversion of an offshore oil
platform or production facility into an artificial reef only if the
following criteria are satisfied:
(a) The artificial reef will be consistent with the
Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C.
Sec. 1801 et seq.) and the National Fishing Enhancement Act of 1984.
(a) The conversion of the offshore oil platform or production
facility into an artificial reef, and the planning, development,
maintenance, and operation of that platform or facility as an
artificial reef, would be consistent with all applicable state,
federal, and international laws, including, but not limited to, all
of the following:
(1) Magnuson-Stevens Fishery Conservation and Management Act (16
U.S.C. Sec. 1801 et seq.).
(2) The National Fishing Enhancement Act of 1984.
(3) The California Coastal Management Program.
(4) The Marine Life Management Act of 1998 (Chapter 1052 of the
Statutes of 1998).
(5) The Marine Life Protection Act (Chapter 10.5 (commencing with
Section 2850) of Division 3).
(6) State and federal water quality laws.
(7) Navigational safety laws.
(b) The alternative of converting the decommissioned offshore oil
platform or production facility into an artificial reef provides a
net benefit to the environment compared to the alternative of
removing the facilities from the marine environment. The
determination of net environmental benefit shall take into account
the contribution of the artificial reef to protection and
productivity of fish and other marine life, any adverse impacts to
biological resources, water quality, air quality, or any other
offshore or onshore environmental impacts from the full removal of
the facility that would be avoided by conversion to an artificial
reef, and any adverse impacts to biological resources, water quality,
air quality, or any other offshore or onshore environmental impacts
from the decommissioning and conversion of the facility or from
allowing the facility to remain in place as an artificial reef.
(c) The artificial reef will be consistent with state and federal
water quality laws.
(d) The artificial reef will be maintained in a manner consistent
with navigational safety and all applicable state, federal, and
international laws.
(e) The artificial reef is consistent with the California Coastal
Management Program, the Marine Life Management Act of 1998 (Chapter
1052 of the Statutes of 1998), the Marine Life Protection Act
(Chapter 10.5 (commencing with Section 2850) of Division 3), and
applicable federal law. , as determined
pursuant to Section 6428.1.
(c) The cost savings that would result from the conversion of the
offshore oil platform or production facility into an artificial reef
have been determined pursuant to Section 6429.
(f)
(d) The owner or operator of the offshore oil platform
or production facility provides sufficient funds to the department
for the purposes of conducting department to
make the determinations required in this section and Section 6427.5,
including, but not limited to, all of the following:
(1) An evaluation , including any necessary research,
of the platform or facility to determine the benefits of the
artificial reef sites to biotic productivity , including any
necessary research .
(2) A determination pursuant to Section 6428.1 whether the
conversion of the offshore oil platform or production facility into
an artificial reef provides a net benefit to the environment compared
to the alternative of removing the facilities from the environment.
(3) A determination pursuant to Section 6429 of the cost savings
of the proposed conversion of the offshore oil platform or production
facility into an artificial reef.
(2) Activities that meet the requirements of this subdivision,
(4) Other activities undertaken to meet
the requirements of this section and Section 6427.5, including
the costs of reviewing, approving, and permitting the proposed
projects, which includes the costs of determining whether the project
meets the requirements of all applicable laws and regulations and
the costs of environmental assessment and review.
(3)
(5) Overall management of the reef, including
enforcement, research, and monitoring, and long-term management,
operations, and maintenance.
(4) Ensuring that the
(e) The owner or operator of the
oil platform or production facility indemnifies the state against any
and all liability that may result, including defending the state
against any claims against the department for any actions the
department undertakes pursuant to this article. In adopting
indemnification requirements under this article, the department
may consider a variety of mechanisms, including an agreement to
indemnify the state, an insurance policy, a cash settlement, or any
other mechanism that ensures that the state can defend itself against
any liability claims against the department for any actions the
department undertakes pursuant to this article and pay any resulting
judgments.
(g)
(f) The owner or operator of the offshore oil platform
or production facility applies for, and receives, all required
permits and approvals issued by any governmental agency, including,
but not limited to, the permit issued by the United States Army Corps
of Engineers if the department does not take title to the platform
or facility as provided in Section 6427.5.
(h)
(g) For oil platforms or production facilities located
in federal waters , the all of the following
requirements are met:
(1) The department and the owner
or operator of the platform or facility reach an agreement providing
for the department to take title to the platform or facility as
provided in Section 6427.5, the 6427.5.
(2) The department acquires the
permit issued by the United States Army Corps of Engineers,
and Engineers.
(3) The conversion to an
artificial reef is approved by the United States Minerals Management
Service.
6427.1. (a) Upon receipt of conditional approval of the
conversion of an offshore oil platform or production facility into an
artificial reef pursuant to Section 6427, the owner or operator of
the platform or facility shall apportion and directly transmit an
amount equaling 50 percent of the cost savings, as determined by the
department pursuant to Section 6429, to the following in the
following amounts:
(1) Ninety percent shall be deposited into the California
Endowment for Marine Preservation established pursuant to Division 37
(commencing with Section 71500) of the Public Resources Code.
(2) Ten percent shall be deposited with the board of supervisors
of the county immediately adjacent to the location of the facility
prior to its decommissioning. The amount paid to the county shall be
managed pursuant to the provisions of paragraph (1) of subdivision
(d) of Section 6817 of the Public Resources Code.
(b) The department shall not grant final approval of the
conversion of an offshore oil platform or production facility into an
artificial reef until all requirements of subdivision (a) are met.
(c) Moneys deposited pursuant to this section shall be held in
trust for the purposes described in this section.
6427.5. The department may take title to a decommissioned
offshore oil platform or production facility in either state
or federal waters if an agreement is reached that will ensure that
the cost savings identified are deposited according to Section
6429.3, the requirements of this article are met, the owner or
operator has received all applicable government permits and
approvals, the artificial reef conversion operation is completed or
the agreement between the department and the owner or operator
provides for completion of the conversion by the owner or operator
subsequent to the transfer of title, and the state is indemnified
from any liability open coastal waters only if both of
the following requirements are met:
(a) The conversion of the oil platform or production facility has
been approved by the department pursuant to Sections 6427 and 6427.1.
(b) The state is indemnified, as
required in subdivision (e) of Section 6427, from any liability
that may result from approving the conversion of an offshore oil
platform or production facility to an artificial reef or any
liability that may result from the ownership of the reef.
6428. The Legislature hereby finds and declares all of the
following:
(a) The conversion of offshore oil platforms or production
facilities should not be done until there has been a thorough
scientific study and evaluation.
(b) The costs of such a study should be borne by the operators of
offshore oil platforms or production facilities.
(c) Each offshore oil platform or production facility creates a
unique environment because of its location, depth, and other
ecological factors.
(d) Because of significant variations, those scientific studies
and evaluations should be done for each offshore oil platform or
production facility for which an application for the use of the oil
platform or production facility as an artificial reef has been made
to the department.
6428.1. The department, for purposes of determining
whether any conversion of an (a)
The department shall determine whether the conversion of a specified
oil platform or production facility for use as an artificial
reef provides a net benefit to the marine
environment compared to the alternative of removing the
facilities from the marine environment, shall oil
platform or production facility.
(b) In making the determination pursuant to subdivision (a), the
department shall take into account the contribution of the proposed
artificial reef to protection and productivity of fish and other
marine life, any adverse impacts to biological resources, water
quality, air quality, or any other offshore or onshore environmental
impacts from the full removal of the facility that would be avoided
by conversion to an artificial reef, and any adverse impacts to
biological resources, water quality, air quality, or any other
offshore or onshore environmental impacts from the decommissioning
and conversion of the facility into an artificial reef.
(c) (1) The
department shall determine criteria for biological evaluation
of an oil platform or production facility for use as an artificial
reef and shall consult with and advise the California Coastal
Commission, the State Lands Commission, and other responsible
agencies as to that criteria. The criteria shall include, but are not
limited to, the depth of the artificial reef in relation to its
value as habitat and the location of the artificial reef in relation
to other reefs, both natural and artificial. The criteria shall not
include any consideration of the funds to be generated by the
conversion to an artificial reef. The
(2) The department shall commence
developing that criteria the criteria
required by this subdivision upon receiving an application for
the use of the oil platform or production facility as an artificial
reef. The department's determination of that criteria is a necessary
part of any consideration of an application and the costs of
determining that criteria shall be borne by the applicant or
applicants , as required in subdivision (d) of Section 6427
.
6429. (a) Prior to the approval of a conversion of an
offshore oil platform or production facility into an artificial reef
pursuant to Section 6427, the department shall determine, or cause to
be determined, the cost savings that will result from the
conversion.
(b) The department shall ensure that any
cost savings are accurately and reasonably calculated. The department
may contract or enter into a memorandum of understanding with any
other appropriate governmental agency or other party, including an
independent expert, to ensure that cost savings are accurately and
reasonably calculated.
(b)
(c) The department shall use and
consider any estimates of cost savings made by any governmental
agency, including, but not limited to, the Internal Revenue Service,
the Franchise Tax Board, the Minerals Management Service of the
United States Department of the Interior, and the State Lands
Commission. If the department disagrees with the estimate
used made by any other agency, the department
shall prepare a public report. That public report shall
explain report that explains any discrepancies
and differences between those estimates and provide
provides the basis for the department's finding
that other estimates are less reliable and the department's use of a
different cost savings estimate.
6429.1. The oil platform or production facility owner or operator
at any time prior to transfer of title to the state, at its sole
discretion, shall have the right to cease participation in the
artificial reef conversion and pursue full decommissioning, subject
to reimbursement to the state of the reasonable costs and expenses
incurred by the state.
6429.2. (a) Nothing in this article is intended, and it
shall not be construed, to limit or affect the authority or duties of
any state or local agency, including, but not limited to, t
he State Lands Commission and the California Coastal Commission.
(b) Nothing in this article shall be
construed to do any of the following:
(1) Relieve the prior owner or operator of an offshore oil
platform or production facility from any continuing liability under
any of the following if the liability is associated with seepage or
release of oil from an offshore oil platform or production facility
that was decommissioned pursuant to an order of, or any action taken
by, and in accordance with, any applicable rule or regulation of, any
federal or state agency:
(A) Any state statute or regulation regarding liability for the
spilling of oil.
(B) The federal Oil Pollution Act of 1990 (33 U.S.C. Sec. 2701 et
seq.).
(C) Any other provision of law.
(2) Establish any new liability on the part of the state.
(3) Require any agency with jurisdiction to approve the artificial
reef conversion, in whole or in part, of an offshore oil platform or
production facility.
(4) Promote, encourage, or facilitate offshore oil exploration,
development, and production within California's open coastal waters.
(5) Require the United States Department of the Interior's
Minerals Management Service or the State Lands Commission to modify,
amend, or alter an existing oil and gas lease to approve conversion
of an offshore oil platform or production facility.
(6) Alter any existing law or applicable rule or regulation of any
federal or state agency that establishes liability for damages
arising with respect to artificial reefs or reef materials,
including, but not limited to, components of decommissioned oil
facilities.
(7) Alter any existing law or policy that protects natural reefs.
(8) Alter or limit the authority or duties of any state or local
agency, including, but not limited to, the State Lands Commission and
the California Coastal Commission.
(9)
(8) Approve any particular method of abandonment.
(b)
(c) Any conversion of an offshore oil platform or
production facility for use as an artificial reef shall not be used
or counted as mitigation for any environmental impacts or natural
resource damages.
6429.3. (a) When all applicable local, state, and federal permits
and approvals are granted to allow any offshore oil platform or
production facility to be converted into an artificial reef, 50
percent of the cost savings to the owner or operator from converting
the platform or facility into an artificial reef, rather than
removing the facility, shall be apportioned by the owner or operator
to the entities described in subdivision (d).
(b) This section establishes a voluntary program through which an
individual owner or operator of one or more offshore oil platforms or
production facilities may choose to participate in a program to
create an artificial reef from the platform or facility with the
assent of all local, state, or federal agencies with permitting and
approval jurisdiction. However, the owner or operator of a
decommissioned offshore oil platform or production facility shall
apportion the portion of the savings calculated pursuant to
subdivision (a) to the entities described in subdivision (d) if a
platform or production facility is converted into an artificial reef
in open coastal waters.
(c) This section does not apply to an offshore oil platform or
production facility if the majority of the costs of removal of the
platform or facility will be paid by the federal government, the
State of California, or a grantee of state tide and submerged lands.
(d) The funds described in subdivision (a) shall be apportioned as
follows:
(1) Ninety percent shall be deposited into the California
Endowment for Marine Preservation. The endowment may expend that
money for the purposes of Division 37 (commencing with Section 71500)
of the Public Resources Code.
(2) Ten percent shall be deposited by the owner or operator with
the board of supervisors of the county immediately adjacent to the
location of the facility prior to its
decommissioning. The county shall use those funds
for projects within coastal lands and waters. As used in this
paragraph, "coastal lands and waters" means those areas composed of
those tide and submerged lands of the state that are waterward of the
mean high tide line and extending seaward to the boundaries of the
Exclusive Economic Zone and those areas landward of the mean high
tide line that are also within the coastal zone, as defined and
described pursuant to Section 30103 of the Public Resources Code. The
projects shall otherwise meet the requirements of Section 71552 of
the Public Resources Code.
(e) The Legislature finds and declares that the purposes set forth
in subdivision (d) are special fund purposes.
6429.4. Nothing in this article is intended, and it shall not be
construed, to limit or affect the authority or duties of any state or
local agency, including, but not limited to, the State Lands
Commission and the California Coastal Commission. Nothing in this
division is intended, and it shall not be construed, to be an
approval of any particular method of abandonment.
6429.5. (a) Notwithstanding any other provision of this article,
the Accelerated Existing Platform Decommissioning Program is hereby
established.
(b) For purposes of this section, "accelerated program" means the
Accelerated Existing Platform Decommissioning Program as established
by this section.
(c) A proposed project to convert an oil platform or production
facility for use as an artificial reef pursuant to the accelerated
program shall be subject to expedited review pursuant to the
California Environmental Quality Act (Division 13 (commencing with
Section 21000) of the Public Resources Code). If the department
commences review of a proposed project pursuant to the accelerated
program, but fails to complete review and make a final determination
within the time periods set forth in paragraph (1) of subdivision (a)
of Section 21100.2 of the Public Resources Code as provided in
subdivision (e), the application shall be considered by the
department as provided in Sections 6427 and 6427.5 and the applicant
shall be required to make applicable payments as provided in Section
6429.3, but shall not be required to make the accelerated program
payments provided in subdivisions (h) and (i).
(d) The owner or operator of an offshore oil platform or
production facility may apply to enroll the facility in the
accelerated program by submitting to the department an application
that meets all of the requirements of Sections 6427 and 6427.5, if
the owner or operator has applied for, but need not have received,
all applicable permits and approvals issued by federal, state, and
local government agencies, and contains the following:
(1) A reefing plan for decommissioning and converting the facility
to use as an artificial reef, including removal of any portion
thereof as appropriate to maintain navigational safety.
(2) A management plan for management of the artificial reef,
including maintenance in a manner consistent with navigational safety
and enforcement and monitoring, and, if applicable, a buffer zone in
which fishing or removal of marine life may be limited or
prohibited.
(3) A proposed determination of the net environmental benefit of
conversion of the facility to an artificial reef, compared to the
alternative of removing the facility from the marine environment. The
determination of net environmental benefit shall take into account
the contribution of the artificial reef to protection and
productivity of fish and other marine life, any adverse impacts to
biological resources, water quality, air quality, or any other
offshore or onshore environmental impacts from the full removal of
the facility that would be avoided by conversion to an artificial
reef, and any adverse impacts to biological resources, water quality,
air quality, or any other offshore or onshore environmental impacts
from the decommissioning and conversion of the facility or from
allowing the facility to remain in place as an artificial reef.
(4) A proposed calculation of the cost savings as defined in
subdivision (b) of Section 6421.
(e) Within the time periods set forth in paragraph (1) of
subdivision (a) of Section 21100.2 of the Public Resources Code after
receipt of an application that meets the requirements of subdivision
(d), the department shall complete review of the proposed artificial
reef conversion pursuant to the California Environmental Quality Act
(Division 13 (commencing with Section 21000) of the Public Resources
Code) and shall make a final determination whether the proposed
project meets all of the requirements of this section and of Sections
6427 and 6427.5, if the owner or operator has applied for, but need
not have received, all applicable permits and approvals issued by
federal, state, and local government agencies, and demonstrates a net
environmental benefit of conversion of the facility to an artificial
reef, taking into account the factors in paragraph (3) of
subdivision (d).
(f) Prior to making a final determination as provided in
subdivision (e), the department shall consult with all responsible
agencies and trustee agencies, as defined in Sections 21069 and 21070
of the Public Resources Code, shall provide opportunity for public
comment and shall hold a public hearing.
(g) Upon making a final determination as provided in subdivision
(e), the department shall determine the cost savings as provided in
Section 6429.
(h) If the department makes a final determination that the
proposed project meets all of the requirements of this section and of
Sections 6427 and 6427.5, and demonstrates a net environmental
benefit of conversion of the facility to an artificial reef, the
department and the applicant may enter into an agreement which shall
enroll the facility in the accelerated program, require the applicant
to perform the decommissioning and conversion of the facility in
accordance with the reefing plan, and require the department to take
title to the artificial reef and, following completion of the
decommissioning and conversion of the facility, responsibility for
implementation of the management plan. Upon the execution of that
agreement by the department and the applicant, the applicant shall
pay the equivalent of 50 percent of the cost savings apportioned to
the California Endowment for Marine Preservation pursuant to Section
6429.3, as determined by the department, to the department for
deposit into the General Fund.
(i) Upon completion of the decommissioning and conversion of the
facility to an artificial reef, and upon the transfer of title to the
artificial reef to the department, the applicant shall deposit the
balance of the cost savings apportioned to the California Endowment
for Marine Preservation pursuant to Section 6429.3 into the
California Endowment for Marine Preservation. The endowment board may
expend that money for the purposes of Division 37 (commencing with
Section 71500) of the Public Resources Code.
(j) Within 15 years of the deposit of 50 percent of the cost
savings apportioned to the California Endowment for Marine
Preservation in the General Fund as provided in subdivision (h), the
state shall deposit 80 percent of that sum into the California
Endowment for Marine Preservation, and shall pay 20 percent of that
sum to the board of supervisors of the county immediately adjacent to
the location of the facility prior to its decommissioning.
(k) If the department and the state enter into an agreement and
the applicant pays funds to the department for deposit into the
General Fund pursuant to subdivision (h), and that agreement or any
required federal, state, or local permit or approval is challenged in
court and found to be invalid or unenforceable for any reason, or is
rejected, rescinded, or withdrawn for any reason, the state shall
return those funds to the applicant within 90 days and the
application shall be considered by the department as provided in
Sections 6427 and 6427.5.
(l) The applicant shall provide sufficient funds to the department
for the cost of enrolling the facility in the accelerated program,
as determined by the department, including the costs of reviewing and
approving the application and determining whether the proposed
project meets the requirements of this section and all applicable
laws.
(m) This section shall remain in effect only until January 1,
2014, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2014, deletes or extends
that date.
6429.5. (a) The Accelerated Platform Decommissioning Program is
hereby established as an expedited program for meeting the
requirements for approval of the conversion of an offshore oil
platform or production facility into an artificial reef pursuant to
this article. For purposes of this section, "accelerated program"
means the Accelerated Platform Decommissioning Program as established
by this section.
(b) (1) A proposed project to convert an offshore oil platform or
production facility into an artificial reef pursuant to the
accelerated program is a project as defined in subdivision (c) of
Section 21065 of the Public Resources Code and is therefore subject
to the California Environmental Quality Act (Division 13 (commencing
with Section 21000) of the Public Resources Code) and qualifies for
expedited review pursuant to Section 21100.2 of the Public Resources
Code.
(2) Upon receipt of an application for expedited review pursuant
to this section, the department shall review the application and make
a determination within the time periods set forth in paragraph (1)
of subdivision (a) of Section 21100.2 of the Public Resources Code
whether the proposed project meets all of the requirements of this
section and this article for conversion into an artificial reef.
(3) Prior to making a final determination as provided in paragraph
(2), the department shall do all of the following:
(A) Consult with all responsible agencies and trustee agencies, as
defined in Sections 21069 and 21070 of the Public Resources Code.
(B) Provide opportunity for public comment and hold a public
hearing.
(C) Determine the cost savings as provided in Section 6429.
(c) The owner or operator of an offshore oil platform or
production facility may apply to enroll the facility in the
accelerated program. In addition to meeting the other requirements of
this article, the owner or operator of an offshore oil platform that
chooses to apply as part of the accelerated program shall meet
application requirements to be designed by the department to receive
information needed to facilitate review of the application within an
accelerated timeline. In order to facilitate an accelerated review,
the department may require the applicant to include any or all of the
following in the application:
(1) A reefing plan for converting the oil platform or production
facility into an artificial reef, including removal of any portion of
the platform or facility as appropriate to maintain navigational
safety.
(2) A management plan for the artificial reef, including
maintenance in a manner consistent with navigational safety and
enforcement and monitoring, and, if applicable, a buffer zone in
which fishing or removal of marine life may be limited or prohibited.
(3) A proposed determination of the net environmental benefit of
conversion of the facility into an artificial reef, compared to the
alternative of removing the facility. The proposed determination of
net environmental benefit shall be based on criteria established by
the department pursuant to Section 6428.1.
(4) A proposed determination of the cost savings. The proposed
determination shall be consistent with the requirements of Section
6429.
(d) The information submitted pursuant to paragraphs (1) to (4),
inclusive, of subdivision (c) shall be used by the department for
advisory purposes only. Final determinations regarding a reefing
plan, a management plan, net environmental benefit of the proposed
conversion, cost savings resulting from the conversion, and all other
determinations shall be made solely by the department based on its
independent review and judgment.
(e) If the department fails to make a final determination within
the time periods set forth in paragraph (1) of subdivision (a) of
Section 21100.2 of the Public Resources Code, the department shall
remove the application from the accelerated program and the
application shall be considered by the department on a nonaccelerated
schedule. The applicant shall be required to make applicable
payments as provided in Section 6427.1, in lieu of payments as
required in subdivision (g).
(f) If the department makes a final determination that the
proposed project meets all of the requirements of this section and
this article, the department and the applicant may enter into an
agreement which shall enroll the facility in the accelerated program
and require the applicant to perform the decommissioning and
conversion of the facility in accordance with a reefing plan approved
by the department. The department shall not take title to the
artificial reef or take responsibility for implementation of the
management plan until decommissioning and conversion of the reef have
been completed and all the conditions of Section 6427.5 have been
met.
(g) Upon execution of an agreement by the department and the
applicant pursuant to subdivision (f), the applicant shall apportion
and directly transmit 50 percent of the cost savings, as determined
pursuant to Section 6429, to the following in the following amounts:
(1) Eighty-five percent shall be deposited into the California
Endowment for Marine Preservation established pursuant to Division 37
(commencing with Section 71500) of the Public Resources Code.
(2) Five percent shall be deposited with the board of supervisors
of the county immediately adjacent to the location of the facility
prior to its decommissioning. The amount paid to the county shall be
managed pursuant to the provisions of paragraph (1) of subdivision
(d) of Section 6817 of the Public Resources Code.
(3) Ten percent shall be deposited into the General Fund.
(h) If the department and the applicant enter into an agreement
and the applicant pays funds to the department for deposit into the
General Fund pursuant to subdivision (g), and that agreement or any
required federal, state, or local permit or approval is challenged in
court and found to be invalid or unenforceable for any reason, or is
rejected, rescinded, or withdrawn for any reason, the state shall
return those funds to the applicant within 90 days and the
application shall be considered by the department on a nonaccelerated
schedule.
(i) The applicant shall provide sufficient funds to the department
for the cost of enrolling the facility in the accelerated program,
as determined by the department, including the costs of reviewing and
approving the application and determining whether the proposed
project meets the requirements of this section, this article, and all
other applicable laws.
(j) This section shall remain in effect only until January 1,
2014, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2014, deletes or extends
that date.
SEC. 3. SEC. 4. Division 37
(commencing with Section 71500) is added to the Public Resources
Code, to read:
DIVISION 37. CALIFORNIA ENDOWMENT FOR MARINE PRESERVATION
CHAPTER 1. FINDINGS AND DECLARATIONS
71500. (a) The Legislature hereby finds and declares all of the
following:
(1) The Pacific Ocean and its rich marine living resources are of
great environmental, economic, aesthetic, recreational, educational,
scientific, social, cultural, and historic importance to the people
of California.
(2) Programs to conserve, protect, restore, and enhance the marine
fishery resources of the state are needed because of past
overfishing and damage to marine habitats and their ecosystems. These
programs should be coordinated with efforts to reduce overfishing
and damage to marine habitats and their ecosystems.
(3) A program that will speed up the decommissioning of offshore
oil platforms will enhance the environmental, aesthetic, and
recreational features of the coastal environment. Any offshore oil
platforms that are nearing possible retirement should be removed as
quickly as possible to improve the aesthetic character of the areas
of the California coast that have been adversely impacted by offshore
oil activities.
(4) The State of California recognizes the need to formulate its
environmental and resource management policies based on the best
available scientific information and should utilize the University of
California, the California State University, other institutions of
higher learning, and marine science research institutions to the
fullest extent possible to assist it in achieving that goal.
CHAPTER 2. DEFINITIONS
71520. Unless the context requires otherwise, the following
definitions govern the construction of this division:
(a) "Artificial reef" means manmade or natural objects
intentionally placed or allowed to remain in place in selected areas
of the marine environment to duplicate those conditions that induce
production of fish and invertebrates on natural reefs and rough
bottoms, support additional biomass, enhance biodiversity, and
stimulate the growth of kelp or other midwater plant life that
creates natural habitat for those species.
(b) "Board" or "endowment board" means the Board of Directors of
the California Endowment for Marine Preservation.
(c) "Cost savings" are the difference between the estimated cost
to the operator or owner of complete removal of an offshore oil
platform or production facility and the costs incurred by the
operator or owner of converting a platform or facility into an
artificial reef.
(d) "Endowment" means the California Endowment for Marine
Preservation.
(e) "National Fishing Enhancement Act of 1984" means Title II of
Public Law 98-623.
(f) "Offshore oil platform or production facility" means
platforms, piers, and artificial islands located seaward of mean
lower low water, used for oil and gas exploration, development,
production, processing, or storage.
(g) "Oil" means any kind of petroleum, liquid hydrocarbons,
natural gas, or petroleum products or any fraction or residues
therefrom.
(h) "Open coastal marine resource" means those marine resources
that use open coastal waters as their habitat.
(i) "Open coastal waters" means the area composed of the submerged
lands of the state that are below the mean lower low water extending
seaward to the boundaries of the Exclusive Economic Zone.
(j) "Reef materials" includes only materials allowed under the
National Artificial Reef Plan, adopted under the National Fishing
Enhancement Act of 1984 for construction of artificial reefs.
(k) "State waters" means waters within the seaward boundary of the
state as identified in Section 2 of Article III of the California
Constitution.
CHAPTER 3. ESTABLISHMENT
71530. The California Endowment for Marine Preservation is hereby
established. The endowment is subject to this division and to the
Nonprofit Public Benefit Corporation Law (Part 2 (commencing with
Section 5110) of Division 2 of Title 1 of the Corporations Code). If
there is a conflict between this division and the Nonprofit Public
Benefit Corporation Law, this division shall prevail.
71531. (a) Nothing in this division is intended, and it
shall not be construed, to limit or affect the authority
or duties of any state or local agency, including, but not limited
to, the State Lands Commission and the California Coastal Commission.
(b) Nothing in this division shall be
construed to do any of the following:
(1) Relieve the prior owner or operator of an oil facility from
any continuing liability under any of the following, if the liability
is associated with seepage or release of oil from an oil facility
that was decommissioned pursuant to an order of, or any action taken
by, and in accordance with, any applicable rule or regulation of any
federal or state agency:
(A) Any state statute or regulation regarding liability for the
spilling of oil.
(B) The federal Oil Pollution Act of 1990 (33 U.S.C. Sec. 2701 et
seq.).
(C) Any other provision of law.
(2) Establish any new liability on the part of the state.
(3) Require, authorize, or in any way encourage any agency with
jurisdiction to approve the reefing, in whole or in part, of an oil
platform.
(4) Promote, encourage, or facilitate offshore oil exploration,
development, and production within California's open coastal waters.
(5) Require the United States Department of the Interior's
Minerals Management Service or the State Lands Commission to modify,
amend, or alter an existing oil and gas lease to approve the reefing
of an oil platform in place.
(6) Alter any existing law that establishes liability for damages
arising with respect to artificial reefs or reef materials,
including, but not limited to, components of decommissioned oil
facilities.
(7) Alter any existing law or policy that protects or otherwise
favors natural reefs.
(8) Alter or limit the authority or responsibility of the
California Coastal Commission, the San Francisco Bay Conservation and
Development Commission, the State Lands Commission, the National
Marine Fisheries Service, or the Minerals Management Service of the
United States Department of the Interior.
(9)
(8) Promote or encourage any particular method of
decommissioning.
(b) Further, any
(c) Any decommissioning of an
offshore oil platform or production facility for use as an artificial
reef shall not be used or counted as mitigation for any
environmental impacts or natural resources damages.
CHAPTER 4. BOARD OF DIRECTORS
71540. The endowment is governed by the Board of Directors of the
California Endowment for Marine Preservation. The board consists of
nine members appointed by the Governor as follows:
(a) One member who shall be an expert in marine science from the
University of California, the California State University, or other
accredited university.
(b) One member who shall be an expert in marine fisheries from the
University of California, the California State University, or other
accredited university.
(c) One member who shall be from a nonprofit, public interest
organization with emphasis on marine conservation.
(d) One member who shall be from a nonprofit public interest
organization with an emphasis on marine conservation and sustainable
consumptive recreational activities.
(e) One member who shall be from a nonprofit public interest
organization with an emphasis on marine conservation and sustainable
nonconsumptive recreational activities.
(f) The Secretary of the Natural Resources Agency, or his or her
designee, who shall also serve as chairperson.
(g) One person who is serving as an elected local government
official for a local governmental agency with jurisdiction over, or
directly adjacent to, open coastal waters containing oil platforms or
production facilities.
(h) Two representatives of the public.
71541. The term of office of each member of the board is six
years. However, the term of office for the first board member
appointed pursuant to subdivisions (a), (b), and (c) of Section 71540
is two years. The term of office for the first board members
appointed pursuant to subdivisions (f) and (g) of Section 71540 is
four years.
71542. Any vacancy on the board shall be filled by the Governor
by appointment for the unexpired term.
71543. (a) The board shall conduct its initial meeting as soon as
possible after incorporation.
(b) The board shall meet as often as required, but at least twice
per year.
(c) Members of the board shall attend at least 50 percent of all
duly convened meetings of the board in a calendar year. A member who
fails to attend at least 50 percent of all duly convened meetings of
the board in a calendar year forfeits membership on the board. The
vacancy shall be filled pursuant to Section 71542.
(d) Members of the board shall receive no salary but
shall be paid one hundred dollars ($100) per day for each meeting and
shall be reimbursed for all necessary travel expenses.
CHAPTER 5. POWERS AND DUTIES
71550. The members of the board first appointed shall serve as
incorporators of the endowment and shall take whatever actions are
necessary to establish the endowment pursuant to the Nonprofit Public
Benefit Corporation Law (Part 2 (commencing with Section 5110) of
Division 2 of Title 1 of the Corporations Code) once a majority of
the board is appointed.
71551. It is the intent of the Legislature that the endowment not
be incorporated until funds are made available pursuant to the
California Marine Legacy Act (Article 2 (commencing with Section
6420) of Chapter 5 of Part 1 of Division 6 of the Fish and Game
Code).
71552. (a) The purpose of the endowment is to create a permanent
source of funding for projects that will conserve, protect, restore,
and enhance the open coastal marine resources of the state. To
achieve this objective, the endowment board may allocate funding to
do any or all of the following:
(1) Support applied research into open coastal marine fisheries,
marine habitat, or other related research in support of projects to
conserve, protect, restore, and enhance the open coastal marine
resources of the state. In so doing, the board shall endeavor to take
maximum advantage of the scientific research expertise available
from the University of California, the California State University,
other institutions of higher learning, and marine science research
institutions with expertise in marine resource issues. Funding for
research projects shall not exceed 10 percent of the overall funding
in any fiscal year.
(2) Support projects in open coastal waters that enhance
environmentally sustainable marine activities.
(3) Support projects in open coastal waters to enhance the habitat
for open coastal marine life.
(4) Support programs in open coastal waters that lead to
enforcement of laws regulating the take of open coastal marine
species, the protection of habitat, and the protection and monitoring
of open coastal marine species and habitat with an emphasis on
innovative approaches.
(5) Support programs to aid in the establishment of safe fishing
levels and reduce or prevent habitat damage in open coastal waters.
(6) Support programs to monitor catch and bycatch and to reduce
bycatch in fisheries managed by the State of California and by the
United States.
(b) The endowment board may also do all of the following:
(1) Obtain grants from, and contract with, individuals and with
private, local, state, and federal agencies, organizations, and
institutions.
(2) Contract with, or make grants to, conservation and educational
organizations; marine institutes; aquariums and museums;
institutions of higher education; and local, state, and federal
agencies.
(3) Loan funds to private, local, state, and federal agencies,
organizations, and institutions.
(c) The endowment shall create a business plan for a five-year
period. The endowment shall update the plan annually.
(d) On or before February 1 each year, the endowment shall submit
a report to the appropriate fiscal and policy committees of the
Legislature for the preceding fiscal year. The report shall include
all of the following:
(1) The updated business plan created pursuant to subdivision (c).
(2) A comprehensive and detailed report of the endowment's
operations, activities, financial condition, and accomplishments
under this section.
(3) A listing of each recipient of a grant from the endowment and
the purposes and amount of that grant.
(4) A listing of any loan that the endowment has received and the
plan for repaying the loan.
(5) A report of each independent audit required pursuant to
subdivision (e) of Section 71560.
71553. Members of the board and appropriate staff shall be
available to testify before appropriate committees of the
Legislature.
71554. The endowment shall not contribute to, or otherwise
support, any political party, candidate for elective public office,
or ballot measure.
71555. The endowment may hire employees and may obtain legal
counsel. No employee of the endowment is an employee of the State of
California. No employee of the endowment is subject to Chapter 10.3
(commencing with Section 3512) of, or Chapter 10.5 (commencing with
Section 3525) of, Division 4 of Title 1 of the Government Code.
Employees of the endowment have the right to representation
consistent with the federal National Labor Relations Act (29 U.S.C.
Sec. 151 et seq.).
71556. The endowment shall coordinate its activities with the
Department of Fish and Game, the California Coastal Commission, the
San Francisco Bay Conservation and Development Commission, the State
Lands Commission, and appropriate federal agencies, including the
National Marine Fisheries Service and the Minerals Management Service
of the United States Department of the Interior. Nothing in this
division limits the authority and responsibility of any of these
agencies.
CHAPTER 6. FINANCIAL TRANSACTIONS AND AUDITS
71560. (a) The endowment may receive charitable contributions or
any sources of income that may be lawfully received, including loans
from the state.
(b) The endowment shall administer any funds it receives in
accordance with this division.
(c) The endowment shall invest and manage any funds it receives so
that the investments shall provide a source of income in perpetuity
and the principal amount consisting of charitable contributions and
donations, including cost savings donated pursuant to
Section 6429.3 Sections 6427.1 and 6429.5 of the
Fish and Game Code, shall not be spent. Any returns on investments
made by the endowment are the only funds that shall be available for
expenditure by the endowment.
(d) The endowment shall invest and manage any funds it receives in
accordance with the Nonprofit Public Benefit Corporation Law (Part 2
(commencing with Section 5110) of Division 2 of Title 1 of the
Corporations Code).
(e) The accounts of the endowment shall be audited annually in
accordance with generally accepted auditing standards by independent
certified public accountants.
(f) The financial transactions of the endowment for any fiscal
year may be audited by the Bureau of State Audits. A report of each
audit completed pursuant to this subdivision shall be made to the
Legislature and the Governor.
(g) Each recipient of assistance by grant, contract, or loan
pursuant to this division shall keep records reasonably necessary to
disclose fully the amount of the assistance, the disposition of the
assistance, the total cost of the project or undertaking in
connection with which the assistance is given or used, the amount and
nature of that portion of the cost of the project or undertaking
supplied by other sources, and other records that will facilitate an
effective audit. Each recipient of a fixed price contract awarded
pursuant to competitive bidding procedures is exempt from the
requirements of this subdivision.
(h) The endowment, or its authorized representative, and the
Bureau of State Audits shall have access to any records necessary for
the purpose of auditing and examining all funds received or expended
by the recipients of assistance.
71561. The endowment funds shall be administered and managed in
accordance with all of the following:
(a) Reasonably prudent investor standards that will give the fund
the capacity to achieve reasonable rates of return on investment
similar to those of other prudent investors for long-term
investments.
(b) Use of generally accepted accounting practices, and
expenditure and investing procedures.
(c) Investment policies that are consistent with the Uniform
Prudent Investor Act (Article 2.5 (commencing with Section 16045) of
Chapter 1 of Part 4 of Division 9 of the Probate Code), and with the
Uniform Management of Institutional Funds Act (Part 7 (commencing
with Section 18501) of Division 9 of the Probate Code), as
applicable.
71562. Funds held by the endowment shall revert to the state or
to another public agency or nonprofit organization approved by the
state if the endowment does any of the following:
(a) Ceases operations.
(b) Is dissolved.
(c) Becomes bankrupt or insolvent.
(d) Fails to perform its fiduciary duties.
CHAPTER 7. MISCELLANEOUS
71565. Nothing in this division is intended, nor shall it be
construed, to limit or affect the authority or duties of any state or
local agency, including, but not limited to, the State Lands
Commission, the California Coastal Commission, and the Department of
Fish and Game. Nothing in this division is intended, nor shall it be
construed, as an approval of any particular method of abandonment.
It is the intent of the Legislature that the process for
evaluating the proposed conversion of decommissioned oil platforms
and facilities into artificial reefs shall take into account the
findings and recommendations of the study being coordinated by the
California Ocean Science Trust, with support from the California
Ocean Protection Council and others, entitled "Study to Provide
Information Related to Oil and Gas Platform Decommissioning
Alternatives in California," which is due to be released in June
2010.
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