SB 188: State lands: leasing: oil and gas.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2017-07-13
Existing law vests exclusive jurisdiction over ungranted tidelands and submerged lands owned by the state to the State Lands Commission. Existing law confers the powers of the commission as to leasing or granting of rights or privileges to lands owned by the state upon a local trustee of granted public trust lands to which those lands have been granted. Existing law authorizes the California Coastal Commission commission to let leases for the extraction of oil and gas from coastal tidelands or submerged lands in state waters and beds of navigable rivers and lakes within the state in accordance with specified provisions of law.
Existing law, notwithstanding those provisions or any other provision of law, prohibits a state agency or state officer from entering into any new lease for the extraction of oil or gas from the California Coastal Sanctuary, which includes certain state waters subject to tidal influence, unless either (1) the President of the United States has found a severe energy supply interruption and has ordered distribution of the Strategic Petroleum Reserve, the Governor finds that the energy resources of the sanctuary will contribute significantly to the alleviation of that interruption, and the Legislature subsequently acts to amend the law to allow the extraction, or (2) the commission determines that the oil or gas deposits are being drained by means of producing wells upon adjacent federal lands and the lease is in the best interest of the state.
This bill would prohibit the commission and the local trustees of granted public trust lands from entering into any new lease or other conveyance or from entering into any lease renewal, extension, or modification that authorizes a lessee to engage in new or additional exploration, development, or production of oil or natural gas upon lands owned by the state and under the jurisdiction of the commission that are located seaward of the ordinary high water mark for tidal waterways and the ordinary low water mark for navigable nontidal waterways that would result in the increase of oil or natural gas production from federal waters. The bill would apply the exceptions applicable to the California Coastal Sanctuary to these provisions. The bill would authorize the commission to establish guidelines for the implementation of these provisions.
Existing law vests exclusive jurisdiction over ungranted tidelands and submerged lands owned by the state to the State Lands Commission. Existing law confers the powers of the commission as to leasing or granting of rights or privileges to lands owned by the state upon a local trustee of granted public trust lands to which those lands have been granted. Existing law authorizes the California Coastal Commission to let leases for the extraction of oil and gas from coastal tidelands or submerged lands in state waters and beds of navigable rivers and lakes within the state in accordance with specified provisions of law.
Existing law, notwithstanding those provisions or any other provision of law, prohibits a state agency or state officer from entering into any new lease for the extraction of oil or gas from the California Coastal Sanctuary, which includes certain state waters subject to tidal influence, unless either (1) the President of the United States has found a severe energy supply interruption and has ordered distribution of the Strategic Petroleum Reserve, the Governor finds that the energy resources of the sanctuary will contribute significantly to the alleviation of that interruption, and the Legislature subsequently acts to amend the law to allow the extraction, or (2) the commission determines that the oil or gas deposits are being drained by means of producing wells upon adjacent federal lands and the lease is in the best interest of the state.
This bill would prohibit the commission and the local trustees of granted public trust lands from entering into any new lease or other conveyance that authorizes the exploration for, or the development and production of, oil and natural gas upon those lands. The bill would prohibit the commission and the local trustees of granted public trust lands or from entering into any lease renewal, extension, or modification that authorizes a lessee to engage in new or additional exploration, development, or production of oil and natural gas. or natural gas upon lands owned by the state and under the jurisdiction of the commission that are located seaward of the ordinary high water mark for tidal waterways and the ordinary low water mark for navigable nontidal waterways that would result in the increase of oil or natural gas production from federal waters. The bill would apply the exceptions applicable to the California Coastal Sanctuary to these provisions.
Existing law vests exclusive jurisdiction over ungranted tidelands and submerged lands owned by the state to the State Lands Commission. Existing law confers the powers of the commission as to leasing or granting of rights or privileges to lands owned by the state upon a local trustee of granted public trust lands to which those lands have been granted.
This bill would prohibit the commission and the local trustees of granted public trust lands from entering into any new lease or other conveyance that authorizes the exploration for, or the development and production of, oil and natural gas upon those lands. The bill would prohibit the commission and the local trustees of granted public trust lands from entering into any lease renewal, extension, or modification that authorizes a lessee to engage in new or additional exploration, development, or production of oil and natural gas.
Existing law vests exclusive jurisdiction over ungranted tidelands and submerged lands owned by the state to the State Lands Commission. Existing law confers the powers of the commission as to leasing or granting of rights or privileges to lands owned by the state upon a local trustee of granted public trust lands to which those lands have been granted.
This bill would prohibit the commission and the local trustees of granted public trust lands from entering into any new lease or other conveyance that authorizes the exploration for, or the development and production of, oil and natural gas upon those lands. The bill would prohibit the commission and the local trustees of granted public trust lands from entering into any lease renewal, extension, or modification that authorizes a lessee to engage in new or additional exploration, development, or production of oil and natural gas.
Existing law ratifies, approves, and sets forth the provisions of the Emergency Management Assistance Compact, an interstate agreement that provides for mutual assistance between states responding to emergencies and disasters. The compact becomes inoperative on March 1, 2018, and as of January 1, 2019, is repealed.This bill instead would make the compact inoperative on March 1, 2023, and repeal it on January 1, 2024.Existing law ratifies, approves, and sets forth the provisions of the Emergency Management Assistance Compact, an interstate agreement that provides for mutual assistance between states responding to emergencies and disasters. The compact becomes inoperative on March 1, 2018, and as of January 1, 2019, is repealed.
This bill instead would make the compact inoperative on March 1, 2023, and repeal it on January 1, 2024.
(a)Except as provided in subdivision (c), the commission shall not enter into any new lease or other conveyance that authorizes the exploration for, or the development and production of, oil or natural gas upon lands owned by the state and under the jurisdiction of the commission that are located seaward of the ordinary high water mark for tidal waterways and the ordinary low water mark for navigable nontidal waterways that would result in the increase of oil or natural gas production from federal waters.
(b)Except as provided in subdivision (c), the commission shall not enter into any lease renewal, extension, or modification that authorizes a lessee to engage in new or additional exploration, development, or production of oil or natural gas upon lands owned by the state and under the jurisdiction of the commission that are located seaward of the ordinary high water mark for tidal waterways and the ordinary low water mark for navigable nontidal waterways that would result in the increase of oil or natural gas production from federal waters.
(c)Subdivisions (a) and (b) shall not apply if either of the following occur:
(1)The President of the United States has found a severe energy supply interruption and has ordered distribution of the Strategic Petroleum Reserve pursuant to Section 6241(d) of Title 42 of the United States Code, the Governor finds that the energy resources subject to subdivision (a) or (b) will contribute significantly to the alleviation of that interruption, and the Legislature subsequently acts to amend this chapter to allow for the leasing or other conveyance or the lease renewal, extension, or modification, as applicable.
(2)The commission determines that oil or gas deposits subject to a lease impacted by subdivision (a) or (b) are being drained by means of producing wells upon adjacent federal lands and the lease or other conveyance, as applicable, is in the best interests of the state.
(d)The commission may establish guidelines for the implementation of this section.
(d)(e)For the purposes of this section, the following terms have the following meanings:
(1)Commission means the State Lands Commission or a local trustee of granted public trust lands, as defined pursuant to Section 6306.
(2)Development means those activities taking place following the discovery of oil and natural gas, including geophysical activity, drilling, platform construction, pipeline construction, and operation of all onshore support facilities that are performed for the purpose of ultimately producing the resources discovered.
(3)Exploration means the process of searching for oil and natural gas, including any drilling, whether on or off known geological structures, including the drilling of a well in which a discovery of oil or natural gas is made and the drilling of any additional delineation well after the discovery that is needed to delineate any reservoir and to enable a lessee to determine whether to proceed with the development and production.
(4)Federal waters means those waters and submerged lands lying seaward to the state waters of California that appertain to the United States and are subject to Californias federal jurisdiction and control, as set forth by the Submerged Lands Act (43 U.S.C. Sec. 1311). control.
(5)(A)New or additional exploration, development, or production of oil or natural gas includes any activity undertaken to increase the capacity of any pipeline or other infrastructure used to convey oil or natural gas from federal waters.
(B)New or additional exploration, development, or production of oil or natural gas does not include either of the following:
(i)Any activity undertaken to repair, replace, or maintain any pipeline or other infrastructure used to convey oil or natural gas or any other activity necessary to ensure the safe operation of infrastructure used in the exploration, development, or production of oil or natural gas.
(ii)Any activity undertaken to convey oil or natural gas produced from state waters.
(6)Production means those activities that take place after the successful completion of any means for the removal of oil and natural gas, including that removal, field operations, transfer of resources to shore, operation monitoring, maintenance, and work-over drilling. Producing means undertaking those activities.
(7)State waters means the zone in which the United States has released to adjacent coastal states title, ownership, and the right to manage natural resources, as defined pursuant to Section 36108.
(a)Except as provided in subdivision (c), the commission shall not enter into any new lease or other conveyance that authorizes the exploration for, or the development and production of, oil or natural gas upon lands owned by the state and under the jurisdiction of the commission that are located seaward of the ordinary high water mark for tidal waterways and the ordinary low water mark for navigable nontidal waterways that would result in the increase of oil or natural gas production from federal waters.
(b)Except as provided in subdivision (c), the commission shall not enter into any lease renewal, extension, or modification that authorizes a lessee to engage in new or additional exploration, development, or production of oil or natural gas upon lands owned by the state and under the jurisdiction of the commission that are located seaward of the ordinary high water mark for tidal waterways and the ordinary low water mark for navigable nontidal waterways that would result in the increase of oil or natural gas production from federal waters.
(c)Subdivisions (a) and (b) shall not apply if either of the following occur:
(1)The President of the United States has found a severe energy supply interruption and has ordered distribution of the Strategic Petroleum Reserve pursuant to Section 6241(d) of Title 42 of the United States Code, the Governor finds that the energy resources subject to subdivision (a) or (b) will contribute significantly to the alleviation of that interruption, and the Legislature subsequently acts to amend this chapter to allow for the leasing or other conveyance or the lease renewal, extension, or modification, as applicable.
(2)The commission determines that oil or gas deposits subject to a lease impacted by subdivision (a) or (b) are being drained by means of producing wells upon adjacent federal lands and the lease or other conveyance, as applicable, is in the best interests of the state.
(d)For the purposes of this section, the following terms have the following meanings:
(1)Commission means the State Lands Commission or a local trustee of granted public trust lands, as defined pursuant to Section 6306.
(2)Development means those activities taking place following the discovery of oil and natural gas, including geophysical activity, drilling, platform construction, pipeline construction, and operation of all onshore support facilities that are performed for the purpose of ultimately producing the resources discovered.
(3)Exploration means the process of searching for oil and natural gas, including any drilling, whether on or off known geological structures, including the drilling of a well in which a discovery of oil or natural gas is made and the drilling of any additional delineation well after the discovery that is needed to delineate any reservoir and to enable a lessee to determine whether to proceed with the development and production.
(4)Federal waters means those waters and submerged lands lying seaward to the state waters of California that appertain to the United States and are subject to Californias jurisdiction and control, as set forth by the Submerged Lands Act (43 U.S.C. Sec. 1311).
(5)(A)New or additional exploration, development, or production of oil or natural gas includes any activity undertaken to increase the capacity of any pipeline or other infrastructure used to convey oil or natural gas from federal waters.
(B)New or additional exploration, development, or production of oil or natural gas does not include either of the following:
(i)Any activity undertaken to repair, replace, or maintain any pipeline or other infrastructure used to convey oil or natural gas or any other activity necessary to ensure the safe operation of infrastructure used in the exploration, development, or production of oil or natural gas.
(ii)Any activity undertaken to convey oil or natural gas produced from state waters.
(6)Production means those activities that take place after the successful completion of any means for the removal of oil and natural gas, including that removal, field operations, transfer of resources to shore, operation monitoring, maintenance, and work-over drilling. Producing means undertaking those activities.
(7)State waters means the zone in which the United States has released to adjacent coastal states title, ownership, and the right to manage natural resources, as defined pursuant to Section 36108.
SECTION 1.Section 6501.4 is added to the Public Resources Code, to read:6501.4.(a)For the purposes of this section, the following provisions apply:(1)Commission means the State Lands Commission or a local trustee of granted public trust lands, as defined pursuant to Section 6306.(2)Development means those activities taking place following the discovery of oil and natural gas, including geophysical activity, drilling, platform construction, pipeline construction, and operation of all onshore support facilities that are performed for the purpose of ultimately producing the resources discovered.(3)Exploration means the process of searching for oil and natural gas, including any drilling, whether on or off known geological structures, including the drilling of a well in which a discovery of oil or natural gas is made and the drilling of any additional delineation well after the discovery that is needed to delineate any reservoir and to enable a lessee to determine whether to proceed with the development and production.(4)(A)New or additional exploration, development, or production of oil or natural gas includes any activity undertaken to increase the capacity of any pipeline or other infrastructure used to convey oil or natural gas.(B) New or additional exploration, development, or production of oil or natural gas does not include any activity undertaken to repair, replace, or maintain any pipeline or other infrastructure used to convey oil or natural gas or any other activity necessary to ensure the safe operation of infrastructure used in the exploration, development, or production of oil or natural gas.(5)Production means those activities that take place after the successful completion of any means for the removal of oil and natural gas, including that removal, field operations, transfer of resources to shore, operation monitoring, maintenance, and work-over drilling. Producing means undertaking those activities.(b)The commission shall not enter into any new lease or other conveyance that authorizes the exploration for, or the development and production of, oil or natural gas upon lands owned by the state and under the jurisdiction of the commission that are located seaward of the ordinary high water mark for tidal waterways and the ordinary low water mark for navigable nontidal waterways.(c)The commission shall not enter into any lease renewal, extension, or modification that authorizes a lessee to engage in new or additional exploration, development, or production of oil or natural gas upon lands owned by the state and under the jurisdiction of the commission that are located seaward of the ordinary high water mark for tidal waterways and the ordinary low water mark for navigable nontidal waterways.(a)For the purposes of this section, the following definitions provisions apply:
(1)Commission means the State Lands Commission or a local trustee of granted public trust lands, as defined pursuant to Section 6306.
(2)Development means those activities taking place following the discovery of oil and natural gas, including geophysical activity, drilling, platform construction, pipeline construction, and operation of all onshore support facilities that are performed for the purpose of ultimately producing the resources discovered.
(3)Exploration means the process of searching for oil and natural gas, including any drilling, whether on or off known geological structures, including the drilling of a well in which a discovery of oil or natural gas is made and the drilling of any additional delineation well after the discovery that is needed to delineate any reservoir and to enable a lessee to determine whether to proceed with the development and production.
(4)(A)New or additional exploration, development, or production of oil or natural gas includes any activity undertaken to increase the capacity of any pipeline or other infrastructure used to convey oil or natural gas.
(B) New or additional exploration, development, or production of oil or natural gas does not include any activity undertaken to repair, replace, or maintain any pipeline or other infrastructure used to convey oil or natural gas or any other activity necessary to ensure the safe operation of infrastructure used in the exploration, development, or production of oil or natural gas.
(5)Production means those activities that take place after the successful completion of any means for the removal of oil and natural gas, including that removal, field operations, transfer of resources to shore, operation monitoring, maintenance, and work-over drilling. Producing means undertaking those activities.
(b)The commission shall not enter into any new lease or other conveyance that authorizes the exploration for, or the development and production of, oil or natural gas upon lands owned by the state and under the jurisdiction of the commission that are located seaward of the ordinary high water mark for tidal waterways and the ordinary low water mark for navigable nontidal waterways.
(c)The commission shall not enter into any lease renewal, extension, or modification that authorizes a lessee to engage in new or additional exploration, development, or production of oil or natural gas upon lands owned by the state and under the jurisdiction of the commission that are located seaward of the ordinary high water mark for tidal waterways and the ordinary low water mark for navigable nontidal waterways.
(a)For purposes of this section, the following definitions apply:
(1)Commission means the State Lands Commission or a local trustee of granted public trust lands, as defined pursuant to Section 6306.
(2)Development means those activities taking place following the discovery of oil and natural gas, including geophysical activity, drilling, platform construction, pipeline construction, and operation of all onshore support facilities that are performed for the purpose of ultimately producing the resources discovered.
(3)Exploration means the process of searching for oil and natural gas, including any drilling, whether on or off known geological structures, including the drilling of a well in which a discovery of oil or natural gas is made and the drilling of any additional delineation well after the discovery that is needed to delineate any reservoir and to enable a lessee to determine whether to proceed with the development and production.
(4)(A)New or additional exploration, development, or production of oil or natural gas includes any activity undertaken to increase the capacity of any pipeline or other infrastructure used to convey oil or natural gas.
(B) New or additional exploration, development, or production of oil or natural gas does not include any activity undertaken to repair, replace, or maintain any pipeline or other infrastructure used to convey oil or natural gas or any other activity necessary to ensure the safe operation of infrastructure used in the exploration, development, or production of oil or natural gas.
(5)Production means those activities that take place after the successful completion of any means for the removal of oil and natural gas, including that removal, field operations, transfer of resources to shore, operation monitoring, maintenance, and work-over drilling. Producing means undertaking those activities.
(b)The commission shall not enter into any new lease or other conveyance that authorizes the exploration for, or the development and production of, oil or natural gas upon lands owned by the state and under the jurisdiction of the commission that are located seaward of the ordinary high water mark for tidal waterways and the ordinary low water mark for navigable nontidal waterways.
(c)The commission shall not enter into any lease renewal, extension, or modification that authorizes a lessee to engage in new or additional exploration, development, or production of oil or natural gas upon lands owned by the state and under the jurisdiction of the commission that are located seaward of the ordinary high water mark for tidal waterways and the ordinary low water mark for navigable nontidal waterways.
SECTION 1.Section 179.9 of the Government Code is amended to read:179.9.This article shall become inoperative on March 1, 2023, and, as of January 1, 2024, is repealed.This article shall become inoperative on March 1, 2018, 2023, and, as of January 1, 2019, 2024, is repealed.
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Date
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Status
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|---|---|
| Sep 1, 2017 | September 1 hearing: Held in committee and under submission. |
| Aug 23, 2017 | August 23 set for first hearing. Placed on suspense file. |
| Jul 13, 2017 | Read second time and amended. Re-referred to Com. on APPR. |
| Jul 12, 2017 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 3.) (July 10). |
| Jul 3, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on NAT. RES. |
| Jun 8, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on NAT. RES. |
| May 18, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on NAT. RES. |
| May 18, 2017 | Referred to Com. on NAT. RES. |
| Apr 6, 2017 | In Assembly. Read first time. Held at Desk. |
| Apr 6, 2017 | Read third time. Passed. (Ayes 39. Noes 0. Page 643.) Ordered to the Assembly. |
| Apr 4, 2017 | Read second time. Ordered to consent calendar. |
| Apr 3, 2017 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8 and ordered to consent calendar. |
| Mar 24, 2017 | Set for hearing April 3. |
| Mar 14, 2017 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 11. Noes 0. Page 362.) (March 14). Re-referred to Com. on APPR. |
| Feb 23, 2017 | Set for hearing March 14. |
| Feb 2, 2017 | Referred to Com. on G.O. |
| Jan 26, 2017 | From printer. May be acted upon on or after February 25. |
| Jan 25, 2017 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
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Date
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Description
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Location
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Votes
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| Jul 10, 2017 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Natural Resources |
Passed |
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| Apr 6, 2017 | Consent Calendar 2nd SB188 Jackson | Senate Floor |
Passed |
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| Mar 14, 2017 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Governmental Organization |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
|
|---|---|---|
| 350 Bay Area | ** Support | Jul 7, 2017 |
| American Red Cross | ** Support | Apr 5, 2017 |
| Azul | ** Support | Jul 7, 2017 |
| California Chamber Of Commerce | ** Against | Jul 7, 2017 |
| California Coastal Protection Network | ** Support | Jul 7, 2017 |
| California Coastkeeper Alliance | ** Support | Jul 7, 2017 |
| California Independent Petroleum Association | ** Against | Jul 7, 2017 |
| California League Of Conservation Voters | ** Support | Jul 7, 2017 |
| California Manufacturers & Technology Association | ** Against | Jul 7, 2017 |
| California Releaf | ** Support | Jul 7, 2017 |
| California State Association Of Counties | ** Support | Apr 5, 2017 |
| Carpinteria Valley Association | ** Support | Jul 7, 2017 |
| Citizens Planning Association | ** Support | Jul 7, 2017 |
| Clean Water Action | ** Support | Jul 7, 2017 |
| Community Environmental Council | ** Support | Jul 7, 2017 |
| Defenders Of Wildlife | ** Support | Jul 7, 2017 |
| Environment California | ** Support | Jul 7, 2017 |
| Environmental Defense Center | * Support | Jul 10, 2017 |
| Food and Water Watch | ** Support | Jul 7, 2017 |
| Fossil Free California | ** Support | Jul 7, 2017 |
| Friends of Harbors, Beaches and Parks | ** Support | Jul 7, 2017 |
| Friends Of The Earth | ** Support | Jul 7, 2017 |
| friends of the ellwood coast | ** Support | Jul 7, 2017 |
| hands across the sand | ** Support | Jul 7, 2017 |
| Heal The Bay | ** Support | Jul 7, 2017 |
| kuya'mu park association | ** Support | Jul 7, 2017 |
| League Of California Cities | ** Support | Apr 5, 2017 |
| League Of Women Voters Of California | ** Support | Jul 7, 2017 |
| Natural Resources Defense Council | ** Support | Jul 7, 2017 |
| Ocean Conservation Research | ** Support | Jul 7, 2017 |
| Pacific Coast Federation Of Fishermen'S Associations | ** Support | Jul 7, 2017 |
| Pacific Environment | ** Support | Jul 7, 2017 |
| Rural County Representatives of California | ** Support | Apr 5, 2017 |
| Santa Barbara County Action Network | ** Support | Jul 7, 2017 |
| Seventh Generation Advisors | ** Support | Jul 7, 2017 |
| Sierra Club California | ** Support | Jul 7, 2017 |
| Surfrider Foundation | ** Support | Jul 7, 2017 |
| the ocean foundation | ** Support | Jul 7, 2017 |
| Western Alliance for Nature | ** Support | Jul 7, 2017 |
| Western States Petroleum Association | ** Against | Jul 7, 2017 |
| Wholly H20 | ** Support | Jul 7, 2017 |
| Wishtoyo Chumash Foundation | ** Support | Jul 7, 2017 |
Date of Hearing: August 23, 2017
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
SBPCA Bill Id:SB 188
Author:(Jackson) – As Amended Ver:July 13, 2017
Policy Committee: | Natural Resources | Vote: | 7 - 3 |
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill prohibits the State Lands Commission (SLC) or local trustees from entering into any lease or other conveyance that would result in increased oil or natural gas production from federal waters. This bill also prohibits SLC or local trustees from entering into any lease renewal, extension, or modification that authorizes a lessee to engage in activities that would result in increased oil or natural gas production from federal waters.
FISCAL EFFECT:
According to SLC:
1) GF revenue losses of millions of dollars resulting from lost compensation from right-of-way lease revenue and early termination of existing oil and natural gas leases.
2) Increased ongoing annual costs of several hundreds of thousands of dollars to review and analyze oil and natural gas volume in pipelines and to make a determination about whether a proposed lease renewal, extension or modification involves an increase in oil or natural gas exploration, production or development in federal waters (GF or special fund).
3) Potential costs associated with increased risks of litigation by lessees and entities seeking to condemn state lands in lieu of requesting a right-of-way lease, or suing SLC for lost property rights or lost profits.
COMMENTS:
- Purpose. Currently, SLC and local trustees have 19 right-of-way leases to allow pipelines that transport oil and natural gas produced in federal waters across state waters. Once onshore the oil or gas can be processed and transported to a refinery to be turned into transportation fuels. If new oil and gas leases are issued by the federal government, the product would need to be transported for processing, refinement, and to market.
This bill prohibits SLC from issuing a new right-of-way lease or renewing an existing lease if that action will result in the increase of oil or natural gas production from federal waters.
According to the author, “Offshore oil development leads to the industrialization of the shoreline, visually degrading coastal areas, creating land use conflicts, and posing potentially life-threatening public safety risks. This bill protects one of the world’s largest economic engines by ensuring that we do not reverse course on 30 years of bipartisan agreement that has kept California’s coast off limits to oil and gas exploration.”
2) Background. The California Coastal Sanctuary includes all state waters subject to tidal influence west of the Carquinez Bridge, except oil or gas leases in effect on January 1, 1995, unless the lease is deeded or otherwise reverts to the state after that date. Existing law generally prohibits a state agency or state officer from entering into any new lease for the extraction of oil or gas from the Sanctuary. However, SLC may enter into a lease for the extraction of oil or gas from state-owned tide and submerged lands in the Sanctuary if SLC determines that those oil or gas deposits are being drained by wells from adjacent federal lands and the lease is in the best interest of the state.
Since 2001, SLC adopted several resolutions opposing the resumption or expansion of federal offshore oil and gas lease sales in the outer continental shelf (OCS). The foundation for each resolution was the same: that the danger of an oil spill like the 1969 Santa Barbara oil spill was too high and that oil development and potential spills would adversely affect fishing, tourism, and environmental, recreational, economic, scenic, and other values. The resolutions are also based on and expressive of the state’s policy and practice of not issuing new offshore leases. The Obama administration prohibited offshore drilling in the Pacific OCS until 2022. However, on April 28, 2017, President Trump issued Executive Order 13795 that included direction to Secretary of the Interior to revise the Obama administration prohibition of no new leases in the Pacific OCS. This revision is currently in process and could result in new leases being offered off the California coast.
This bill is will make it more difficult and costly to transport oil should offshore drilling resume in the federal waters off the California coast.
Analysis Prepared by: Jennifer Galehouse / APPR. / (916) 319-2081
Date of Hearing: July 10, 2017
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Cristina Garcia, Chair
SBPCA Bill Id:SB 188
Author:(Jackson) – As Amended Ver:July 3, 2017
SENATE VOTE: Not relevant
SUBJECT: State lands: leasing: oil and gas
SUMMARY: Prohibits the State Lands Commission (SLC) or local trustees from entering into any lease or other conveyance that would result in increased oil or natural gas production from federal waters. Prohibits SLC or local trustees from entering into any lease renewal, extension, or modification that authorizes a lessee to engage in activities that would result in increased oil or natural gas production from federal waters.
EXISTING LAW:
- Requires the SLC to be the steward and manager of the state's public trust lands. SLC has direct administrative control over the state's public trust lands and oversight authority over public trust lands granted by the Legislature to local governments.
- Grants, in trust, public trust lands to over 80 local public agencies (local trustees) to be managed for the benefit of all the people of the state and pursuant to the Public Trust Doctrine and terms of the applicable granting statutes.
- Authorizes lands owned by the state and under the jurisdiction of SLC to be leased by SLC for purposes such grazing leases and leases for commercial, industrial, and recreational purposes.
- Pursuant to the California Coastal Sanctuary Act (CCSA):
- Makes findings and declarations that offshore oil and gas production in certain areas of state waters poses an unacceptably high risk of damage and disruption to the marine environment of the state. (State waters generally extend out three nautical miles from the shore.)
- Establishes the California Coastal Sanctuary (Sanctuary), which includes all state waters subject to tidal influence west of the Carquinez Bridge, except oil or gas leases in effect on January 1, 1995, unless the lease is deeded or otherwise reverts to the state after that date.
- Generally prohibits a state agency or state officer from entering into any new lease for the extraction of oil or gas from the Sanctuary.
- Authorizes SLC to enter into any lease for the extraction of oil or gas from state-owned tide and submerged lands in the Sanctuary if SLC determines that those oil or gas deposits are being drained by means of producing wells upon adjacent federal lands and the lease is in the best interest of the state.
- Authorizes SLC to adjust the boundaries of an existing offshore oil and gas lease to encompass all of an oil and gas field partially contained in the lease.
- Makes findings and declarations that offshore oil and gas production in certain areas of state waters poses an unacceptably high risk of damage and disruption to the marine environment of the state. (State waters generally extend out three nautical miles from the shore.)
- Pursuant to the federal Outer Continental Shelf Lands Act (OCS Lands Act),
- Defines the ‘‘Outer Continental Shelf’’ (OCS) as all submerged lands lying between the seaward extent of the states' jurisdiction and the seaward extent of federal jurisdiction.
- Declares, among other things, that it is the U.S. policy that the OCS is a vital national resource reserve held by the federal government for the public, which should be made available for expeditious and orderly development, subject to environmental safeguards, in a manner that is consistent with the maintenance of competition and other national needs.
- Requires the Department of the Interior (Interior) to prepare, periodically revise, and maintain an oil and gas leasing program that consists of a schedule of proposed lease sales indicating, as precisely as possible, the size, timing, and location of leasing activity that the Interior determines will best meet national energy needs for the five-year period following its approval or reapproval. Gives priority leasing consideration to areas where the combination of previous experience; local, state, and national laws and policies; and expressions of industry interest indicate that potential leasing and development activities could be expected to proceed in an orderly manner.
- Defines the ‘‘Outer Continental Shelf’’ (OCS) as all submerged lands lying between the seaward extent of the states' jurisdiction and the seaward extent of federal jurisdiction.
THIS BILL:
- Defines “development” to mean those activities taking place following the discovery of oil and natural gas, including geophysical activity, drilling, platform construction, pipeline construction, and operation of all onshore support facilities that are performed for the purpose of ultimately producing the resources discovered.
- Defines “exploration” to mean the process of searching for oil and natural gas, including any drilling, whether on or off known geological structures, including the drilling of a well in which a discovery of oil or natural gas is made and the drilling of any additional delineation well after the discovery that is needed to delineate any reservoir and enable a lessee to determine whether to proceed with the development and production.
- Defines “new or additional exploration, development, or production of oil or natural gas” to include any activity undertaken to increase the capacity of any pipeline or other infrastructure used to convey oil or natural gas. Specifies that “new or additional exploration, development, or production of oil or natural gas” does not include any activity undertaken to repair, replace, or maintain any pipeline or other infrastructure used to convey oil or natural gas or any other activity necessary to ensure the safe operation of infrastructure used in the exploration, development, or production of oil or natural gas.
- Defines “production” to mean those activities that take place after the successful completion of any means for the removal of oil and natural gas, including that removal, field operations, transfer of resources to shore, operation monitoring, maintenance, and work-over drilling.
- Defines “federal waters” to mean those waters and submerged lands lying seaward to the state waters of California that appertain to the United States and are subject to California’s jurisdiction and control.
- Prohibits SLC or local trustees from entering into any lease or other conveyance that authorizes the exploration for, or the development and production of, oil or natural gas upon lands owned by the state and under the jurisdiction of SLC that are located seaward of the ordinary high water mark for tidal waterways and the ordinary low water mark for navigable nontidal waterways that would result in the increase of oil or natural gas production from federal waters.
- Prohibits SLC or local trustees from entering into any lease renewal, extension, or modification that authorizes a lessee to engage in new or additional exploration, development, or production of oil or natural gas upon lands owned by the state and under the jurisdiction of SLC that are located seaward of the ordinary high water mark for tidal waterways and the ordinary low water mark for navigable nontidal waterways that would result in the increase of oil or natural gas production from federal waters.
- Allows SLC to issue leases or conveyances if the Governor finds there is a severe energy supply interruption or if SLC determines that oil or gas deposits are being drained by means of producing wells upon adjacent federal lands and it is in the best interests of the state to issue the lease or conveyance.
FISCAL EFFECT: Unknown
COMMENTS:
- Author’s statement:
Additional offshore oil and gas development in California poses a serious risk of oil spills and would degrade the quality of our air and water and adversely impact our marine resources, including threatened and endangered species such as blue and humpback whales. Offshore oil development leads to the industrialization of the shoreline, visually degrading coastal areas, creating land use conflicts, and posing potentially life-threatening public safety risks.
Expanded offshore oil and gas production also directly threatens the health of California’s ocean-based economy, which produces approximately $44.5 billion in [Gross Domestic Product] GDP each year, and employs almost half a million people in the state. According to the National Oceanic and Atmospheric Administration, California’s coastal regions generated $662 billion in wages and $1.7 trillion in GDP in 2012. In fact, the coastal counties of California alone generate a GDP that is only exceeded by 11 countries.
This bill protects one of the world’s largest economic engines by ensuring that we do not reverse course on 30 years of bipartisan agreement that has kept California’s coast off limits to oil and gas exploration.
- Offshore Oil. Since 1938, SLC has had jurisdiction over the leasing of oil and gas from offshore state lands. Between 1938 and 1968, over 50 offshore oil and gas leases were issued by SLC. In a manner common to most oil and gas leases, the leases that SLC issued were either devoid of a fixed end date or were subsequently amended to remove an end date. The lease terms typically provide that the leases last as long as oil and gas is being produced in paying or commercial quantities. Once production ceases, the leases are to be quitclaimed back to SLC.
Two August 1968 leases, one to Continental Oil Company and the other to Standard Oil Company, were the last new offshore oil and gas leases that SLC entered into prior to the January 1969 Santa Barbara oil spill. The spill was the result of a well drilling blow-out at an offshore platform located in the federal OCS off the coast of Santa Barbara County. The cause was inadequate protective wellpipe casing. The event lasted 11 days and spilled between 80,000 and 100,000 barrels of crude oil. Two hundred square miles of ocean and 35 miles of California coastline were oiled and thousands of animals were killed.
At its February 1969 meeting, SLC deferred the acceptance of outstanding bids for new leases and subsequently deferred deadlines for additional drilling from existing leases. Since then, the SLC has not entered into any new offshore oil and gas leases. In 1994, the CCSA removed all state lands underlying the Pacific Ocean from SLC’s oil and gas general leasing authority. The CCSA contains two limited exceptions that allow SLC to approve new offshore oil and gas production in state waters. One exception is if SLC determines that state oil or gas deposits are being drained by means of producing wells upon adjacent federal lands and a new oil and gas lease is in the best interests of the state. The other exception allows SLC to adjust the boundaries of an existing offshore oil and gas lease to encompass all of an oil and gas field partially contained in the lease.
Since 2001, SLC adopted several resolutions opposing the resumption or expansion of federal offshore oil and gas lease sales in the OCS. The foundation for each resolution was the same: that the danger of an oil spill like the 1969 Santa Barbara oil spill was too high and that oil development and potential spills would adversely affect fishing, tourism, and environmental, recreational, economic, scenic, and other values. The resolutions are also based on and expressive of the state’s policy and practice of not issuing new offshore leases. The Obama administration prohibited offshore drilling in the Pacific OCS until 2022. However, on April 28, 2017, President Trump issued Executive Order 13795 that included direction to Secretary of the Interior to revise the Obama administration prohibition of no new leases in the Pacific OCS. This revision is currently in process and could result in new leases being offered off the California coast.
- Right-of-ways. Currently, SLC and local trustees have 19 right-of-way leases to allow pipelines that transport oil and natural gas produced in federal waters across state waters. Once onshore the oil or gas can be processed and transported to a refinery to be turned into transportation fuels. If new oil and gas leases are issued by the federal government, the product would need to be transported for processing, refinement, and to market. This bill prohibits SLC from issuing a new right-of-way lease or renewing an existing lease if that action will result in the increase of oil or natural gas production from federal waters. Many of the current leases have expiration dates, and these dates extend all the way to 2031. Existing pipelines that have a valid lease and spare capacity may still be able to transport increased oil or natural gas production from federal waters. In addition, oil or natural gas could be barged to shore. However, that would add significantly to the cost of production. Finally, the federal government could condemn the necessary land to construct the pipeline. That action would likely be lengthy and costly as well. While this bill would not cut off every avenue to increase oil and gas production, it would provide significant roadblocks, which may deter potential lease holders if the Pacific OCS is opened for new leases.
The SLC may need to develop new lease and lease renewal conditions and additional monitoring requirements to implement this bill. However, this additional time and resources may be justified to avoid another large oil spill such as the 1969 Santa Barbara oil spill or the more recent 2015 Refugio Oil Spill.
- Amendments. The author and committee may wish to consider an amendment to the bill, which clarifies that federal waters are not subject to California’s jurisdiction and control. In addition, the author and committee may wish to consider amending the bill to authorize SLC to develop guidelines to implement the new requirements of this bill.
REGISTERED SUPPORT / OPPOSITION:
Support
350 Bay Area
Azul
California Coastal Protection Network
California Coastkeeper Alliance
California League of Conservation Voters
California ReLeaf
Carpinteria Valley Association
Citizens Planning Association
Clean Water Action
Community Environmental Council
Defenders of Wildlife
Environmental Defense Center
Environment California
Food and Water Watch
Fossil Free California
Friends of the Earth
Friends of Harbors, Beaches and Parks
Friends of the Ellwood Coast
Hands Across the Sand
Heal the Bay
Kuya’mu Park Association
League of Women Voters of California
Natural Resources Defense Council
Ocean Conservation Research
Pacific Coast Federation of Fishermen’s Associations
Pacific Environment
Santa Barbara County Action Network
Seventh Generation Advisors
Sierra Club California
Surfrider Foundation
The Ocean Foundation
Western Alliance for Nature
Wholly H20
Wishtoyo Chumash Foundation
Opposition
California Chamber of Commerce
California Independent Petroleum Association
California Manufacturers & Technology Association
Western States Petroleum Association
Analysis Prepared by: Michael Jarred / NAT. RES. /
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
CONSENT
Bill No: SB 188
:
SENATE GOVERNMENTAL ORG. COMMITTEE: 11-0, 3/14/17
AYES: Glazer, Bradford, Cannella, Dodd, Galgiani, Hill, Hueso, Lara, Mendoza, Portantino, Vidak
NO VOTE RECORDED: Berryhill, Gaines
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
DIGEST: This bill extends the date on which the state’s ratification and approval of the Emergency Management Assistance Compact (EMAC) become inoperative from March 1, 2018, to March 1, 2023, and also extends the repeal date thereof from January 1, 2019, to January 1, 2024.
ANALYSIS:
Existing law:
- Ratifies, approves, and sets forth the provisions of EMAC, an interstate agreement that provides for mutual assistance between states responding to emergencies and disasters. The EMAC becomes inoperative on March 1, 2018, and as of January 1, 2019, is repealed.
- Provides that the state shall indemnify and make whole any officer or employee resident of California, or his or her heirs, injured or killed in another state when rendering aid pursuant to EMAC, as if the act or acts occurred in California, less any recovery obtained under the tort laws of the host state.
- Provides that local government or special district personnel who are officially deployed under the provisions of EMAC pursuant to an assignment of the Governor’s Office of Emergency Services shall be defended by the Attorney General or other legal counsel provided by the state, and shall be indemnified subject to the same conditions and limitations applicable to state employees.
- Specifies that the State of California shall not deploy any personnel “to render aid” to a party state for conditions resulting from a labor controversy.
This bill extends the date on which the state’s ratification and approval of the EMAC become inoperative from March 1, 2018, to March 1, 2023, and also extends the repeal date thereof from January 1, 2019, to January 1, 2024.
Background
Purpose of the bill. According to the author, “the legally established EMAC process allows for the expeditious sharing of emergency resources between the states. If California’s EMAC provision is allowed to sunset, there would be no established process beyond ad hoc state-to-state agreements that would allow California to receive or provide assistance should another large-scale event occur, and would place California in the unfortunate position of being the only state in the country without EMAC. Continuation of EMAC will allow uninterrupted sharing of emergency response personnel and resources between California and the rest of the country.”
EMAC in action. In 2005, California sent a wide assortment of emergency personnel to New Orleans, Louisiana and Biloxi, Mississippi to assist with response and recovery from Hurricane Katrina. This included law enforcement officers from the California Highway Patrol, personnel to help staff the State Operations Centers, fire personnel and equipment, various aircraft, care and shelter workers, building inspectors, California National Guard troops, and various medical teams.
When southern California experienced catastrophic wildfires in 2007, the state requested EMAC assistance and a total of 43 states sent aid to California. Over 27,000 out-of-state firefighters were deployed to California to help with firefighting and fire prevention efforts. This is the largest and most significant instance of California receiving aid through EMAC. Without EMAC aid, California would not have been able to fight the large firestorm effectively. In 2013, California also received firefighting resources and emergency assistance from numerous states during the Rim fire near Yosemite.
Related/Prior Legislation
SB 1417 (Jackson, Chapter 227, Statutes of 2014) extended the date on which the state’s ratification and approval of EMAC become inoperative from March 1, 2015, to March 1, 2018, and also extends the repeal date thereof from January 1, 2016, to January 1, 2019.
AB 1420 (Committee on Governmental Organization, Chapter 413, Statutes of 2011) extended the date for the state’s ratification and approval of EMAC become inoperative from March 1, 2012, to March 1, 2015, and also extends the repeal date thereof from January 1, 2012, until January 1, 2016.
AB 823 (Nava, Chapter 233, Statutes of 2005) ratified, approved, and set forth the provisions of EMAC. Also, among other things, required the state to indemnify and make whole any officer or employee who is a resident of California, or his or her heirs, if the officer or employee is injured or killed in another state when rendering aid pursuant to the compact.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
American Red Cross
California State Association of Counties
League of California Cities
Rural County Representatives of California
None received
ARGUMENTS IN SUPPORT: The League of California Cities argues that, “in light of the recent rash of rainstorms that have rocked California, causing flooding in various parts of the state and manifesting a threat to the Oroville dam, this legislation is a prudent component of California’s disaster response planning.”
4/5/17 15:48:49
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Steven Glazer
Chair
2017 - 2018 Regular
Bill No: SB Hearing Date: 3/14/2017
Author: | Jackson | ||
Version: | Introduced | ||
Urgency: | Fiscal: | ||
Consultant: | |||
SUBJECT:
DIGEST: This bill extends the date on which the state’s ratification and approval of the Emergency Management Assistance Compact (EMAC) become inoperative from March 1, 2018, to March 1, 2023, and also extends the repeal date thereof from January 1, 2019, to January 1, 2024.
ANALYSIS:
Existing law:
- Ratifies, approves, and sets forth the provisions of EMAC, an interstate agreement that provides for mutual assistance between states responding to emergencies and disasters. The EMAC becomes inoperative on March 1, 2018, and as of January 1, 2019, is repealed.
- Provides that the state shall indemnify and make whole any officer or employee resident of California, or his or her heirs, injured or killed in another state when rendering aid pursuant to EMAC, as if the act or acts occurred in California, less any recovery obtained under the tort laws of the host state.
- Provides that local government or special district personnel who are officially deployed under the provisions of EMAC pursuant to an assignment of the Governor’s Office of Emergency Services shall be defended by the Attorney General or other legal counsel provided by the state, and shall be indemnified subject to the same conditions and limitations applicable to state employees.
- Specifies that the State of California shall not deploy any personnel “to render aid” to a party state for conditions resulting from a labor controversy.
This bill extends the date on which the state’s ratification and approval of the EMAC become inoperative from March 1, 2018, to March 1, 2023, and also extends the repeal date thereof from January 1, 2019, to January 1, 2024.
Background
Purpose of the bill. According to the author, “the legally established EMAC process allows for the expeditious sharing of emergency resources between the states. If California’s EMAC provision is allowed to sunset, there would be no established process beyond ad hoc state-to-state agreements that would allow California to receive or provide assistance should another large-scale event occur, and would place California in the unfortunate position of being the only state in the country without EMAC. Continuation of EMAC will allow uninterrupted sharing of emergency response personnel and resources between California and the rest of the country.”
History of EMAC. In the 1970s, California played a major role in creating the Interstate Civil Defense and Disaster Compact (ICDDC), which was eventually adopted by nearly all other states and ratified by U.S. Congress. The compact enabled states to share emergency management resources during disasters and encouraged the coordination of emergency preparedness activities between states. In 1992, a group of southern states initiated a project to update the ICDDC. That project resulted in EMAC.
EMAC was established in 1996 and was the first national disaster relief compact since the ICDDC to be ratified by the U.S. Congress. Since ratification and signing into law in 1996, 50 states, the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands have enacted legislation to become EMAC members. EMAC is administered by the National Emergency Management Association, which is a professional nonprofit association of, and for, state emergency management directors.
EMAC offers assistance during governor-declared states of emergency through a responsive, straightforward system that allows states to send personnel, equipment, and commodities to help disaster relief efforts in other states.
Each year, California sends resources, such as firefighting equipment, rescue aircraft, search teams, emergency managers, and other specialized personnel and equipment, to assist other states during disasters. Similarly, California has received emergency assistance from other states over the years when facing disasters such as earthquakes and firestorms. The EMAC mutual aid system has worked successfully and has benefitted both California and other states in numerous situations.
EMAC in action. In 2005, California sent a wide assortment of emergency personnel to New Orleans, Louisiana and Biloxi, Mississippi to assist with response and recovery from Hurricane Katrina. This included law enforcement officers from the California Highway Patrol, personnel to help staff the State Operations Centers, fire personnel and equipment, various aircraft, care and shelter workers, building inspectors, California National Guard troops, and various medical teams.
When southern California experienced catastrophic wildfires in 2007, the state requested EMAC assistance and a total of 43 states sent aid to California. Over 27,000 out-of-state firefighters were deployed to California to help with firefighting and fire prevention efforts. This is the largest and most significant instance of California receiving aid through EMAC. Without EMAC aid, California would not have been able to fight the large firestorm effectively. In 2013, California also received firefighting resources and emergency assistance from numerous states during the Rim fire near Yosemite.
Prior/Related Legislation
SB 1417 (Jackson, Chapter 227, Statutes of 2014) extended the date on which the state’s ratification and approval of EMAC become inoperative from March 1, 2015, to March 1, 2018, and also extends the repeal date thereof from January 1, 2016, to January 1, 2019.
AB 1420 (Committee on Governmental Organization, Chapter 413, Statutes of 2011) extended the date for the state’s ratification and approval of EMAC become inoperative from March 1, 2012, to March 1, 2015, and also extends the repeal date thereof from January 1, 2012, until January 1, 2016.
AB 823 (Nava, Chapter 233, Statutes of 2005) ratified, approved, and set forth the provisions of EMAC. Also, among other things, required the state to indemnify and make whole any officer or employee who is a resident of California, or his or her heirs, if the officer or employee is injured or killed in another state when rendering aid pursuant to the compact.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT:
California State Association of Counties
League of California Cities
Rural County Representatives of California
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: The League of California Cities argues that, “in light of the recent rash of rainstorms that have rocked California, causing flooding in various parts of the state and manifesting a threat to the Oroville dam, this legislation is a prudent component of California’s disaster response planning.”
Discussed in Hearing
Assembly Standing Committee on Appropriations
Assembly Standing Committee on Natural Resources
Bill Author
Bill Co-Author(s):