Amended in Assembly April 21, 2014

Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 2711

Introduced by Assembly Member Muratsuchi

February 21, 2014

begin delete An act to add Section 25525.5 to the Public Resources Code, relating to energy. end delete begin insert An act relating to oil and gas, and making an appropriation therefor. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2711, as amended, Muratsuchi. begin delete Energy: thermal powerplants: certification: sea level rise. end delete begin insert Oil and gas: loan to City of Hermosa Beach. end insert

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Existing law requires the State Lands Commission to deposit in the General Fund all revenues, moneys, and remittances received by the commission, with certain exceptions. Existing law requires that the moneys be used for specified purposes, including refunds, commission expenses, and specified payments to cities and counties.

end insert begin insert

This bill would appropriate $17,500,000 from the General Fund, from certain oil and gas revenues deposited by the commission, to the Controller for a loan to the City of Hermosa Beach, to be made if the city is obligated to make payment pursuant to a specified settlement agreement. The bill would require the State Board of Equalization, if the city fails to make any payment on the loan when due and upon the order of the Controller, to deduct the amount of the payment from the sales and use taxes to be paid to the city. The bill would also require the Controller to deposit moneys received in repayment of the loan into the State Coastal Conservancy Fund to be used, upon appropriation, by the State Coastal Conservancy for expenses related to the conservancy’s Climate Ready Program.

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Existing law vests the State Energy Resources Conservation and Development Commission with the exclusive jurisdiction to certify sites for thermal powerplants with a generation capacity of 50 or more megawatts and related facilities. Existing law requires the commission to make certain findings before issuing a certification for the site.

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This bill would require the commission to consider, during the certification process, the effects of sea level rise in the context of protecting the proposed site and related facility from damage caused by sea level rise.

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Vote:  begin delete majority end delete begin insert ²⁄₃ end insert . Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee: yes. State-mandated local program: no.

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

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begin insert SECTION 1. end insert   

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(a) The sum of seventeen million five hundred
thousand dollars ($17,500,000) is hereby appropriated from the
General Fund, from the oil and dry gas revenues paid to the state
during the 2014-15 fiscal year and deposited in the General Fund
pursuant to Section 6217 of the Public Resources Code, to the
Controller for purposes of this act. The Controller shall, upon
agreement with the City of Hermosa Beach, loan that sum, or a
portion thereof, to the city if the city is obligated to make payment
pursuant to Section IV.4.6.c of “The Settlement Agreement and
Release” entered into on March 2, 2012, between Macpherson
Oil Company, Windward Associates, E&B Natural Resources
Management Corporation, and the City of Hermosa Beach.

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(b) A loan to the City of Hermosa Beach pursuant to subdivision
(a) shall be subject to the following terms:

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(1) The city shall annually pay to the Controller, prior to June
30 of each year, not less than five hundred thousand dollars
($500,000) until the loan is paid in full.

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(2) If the City of Hermosa Beach fails to make any payment
when due pursuant to paragraph (1) for any reason, the State
Board of Equalization, upon the order of the Controller, shall
deduct the amount of that payment from the sales and use taxes to
be paid to the city thereafter pursuant to Section 7204 of the
Revenue and Taxation Code and shall pay the amount so deducted
to the Controller.

end insert begin insert

(c) The Controller shall deposit all payments received pursuant
to subdivision (b) into the State Coastal Conservancy Fund to be
used, upon appropriation, by the State Coastal Conservancy for
expenses related to the conservancy’s Climate Ready Program,
authorized pursuant to Section 31113 of the Public Resources
Code.

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SECTION 1.  

Section 25525.5 is added to the Public Resources
Code, to read:

25525.5.  

In the issuance of a certification pursuant to this
chapter, the commission shall consider the effects of sea level rise
in the context of protecting the proposed site and related facility
from potential damage caused by sea level rise, such as storm
surges and flooding. In assessing the sea level rise, the commission
may rely on floodplain maps published by the Department of Water
Resources.

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