SB 588: Marine resources and preservation.

(1)Existing law establishes the California Artificial Reef Program, administered by the Department of Fish and Wildlife, 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.

The California Marine Resources Legacy Act (act) establishes a program, administered by the department, to allow partial removal of offshore oil structures. The act authorizes the department to approve the partial removal of offshore oil structures, if specified conditions are satisfied. These conditions include the provision of financial assurances by the applicant to the department to ensure that the applicant will provide sufficient funds to cover the cost of review of the project and the management and maintenance of the structure after the department takes title to the structure, a finding by the Ocean Protection Council that the partial removal of the structure provides a net benefit to the marine environment compared to full removal, a calculation of the cost savings by the State Lands Commission of partial removal of the structure compared to full removal, a contractual agreement between the applicant and the department that provides sufficient funds for overall management of the structure by the department, an indemnification agreement between the applicant and the department, and the apportionment and transmittal by the applicant of a percentage of the cost savings funds in accordance with a prescribed schedule to specified entities and funds, including the California Endowment for Marine Preservation. The act requires the first person to file an application to partially remove an offshore oil structure to pay, in addition to the costs relating to review of the project and management and maintenance of the structure, the startup costs incurred by the department or the State Lands Commission to implement the act and provides for the reimbursement of startup costs from certain funds received by the department from the apportionment of cost savings.

This bill would revise and recast the California Marine Resources Legacy Act to establish a similar program to allow, 2 years after the payment of startup costs, a prospective transferor, as defined, to offer and the department to accept title to an artificial reef converted from a decommissioned oil and gas platform for incorporation into the California Artificial Reef Program if similar conditions to those described above are met, except if the platform is required to be fully removed by conditions in a lease issued by the State Lands Commission. As part of the implementation of the program, the bill would require the department to revise the Artificial Reef Plan prepared pursuant to the California Artificial Reef Program. The bill would not require the first transferor to pay the startup costs and would instead authorize funding sufficient to fully fund program startup costs for the state, as determined by the department, to be provided to the department for deposit in the Special Deposit Fund, a continuously appropriated fund. The bill would make those funds deposited into the Special Deposit Fund available to the department, the Ocean Protection Council, the State Lands Commission, and the California Coastal Commission for startup costs, thereby making an appropriation.

This bill would require a transferor to apportion and transmit a portion of the cost savings to the department or the endowment, as specified, instead of to the specified entities and funds. The bill would require the department or the endowment, as applicable, to apportion those cost savings funds in accordance with the prescribed schedule to the specified entities and funds upon final, nonappealable judicial decisions upholding the departments acceptance of title and all permits and approvals required for the partial removal of the platform or the running of the statutes of limitations applicable to all the permits and approvals, whichever is later. The bill would not require the person who deposited the startup funds in the Special Deposit Fund to be reimbursed for providing those funds but would require the person to identify one proposed transfer of a platform in which 55% of the total amount of the cost savings would be apportioned to the department for apportionment to the specified funds and entities. The bill would authorize a prospective transferor to withdraw its offer at any time before transfer of title becomes effective and would require the department to return funds submitted for review of the offer and certain other funds that have not been expended or committed as of the date of receipt of the notification of withdrawal. The bill would require the department or endowment, as applicable, to promptly return the cost savings to the transferor if the partial removal of the platform is not permitted by a court or governmental agency and the transferor is required to carry out full removal of the platform.

(2)The act requires that partial removal comply with the California Environmental Quality Act (CEQA) and requires the Natural Resources Agency to serve as the lead agency for the environmental review under CEQA of a proposed project to partially remove an offshore oil structure. The act requires the Ocean Protection Council, for purposes of determining whether partial removal provides a net environmental benefit, to establish specified criteria and to consult with the department, the California Coastal Commission, the State Lands Commission, the California Ocean Service Science Trust, and other appropriate entities as to those criteria.

This bill would instead require the State Lands Commission to serve as the lead agency for the environmental review under CEQA and would require that partial removal of a platform comply with CEQA if the platform or any of its components, including pipelines, cables, or other accessory structures, are located in state waters, as defined.

The bill would define net environmental benefit for purposes of the act and would delete the requirement for the council to establish criteria for purposes of making the net environmental benefit determination. The bill would require the council, in determining whether partial removal of the platform would provide a net benefit to the marine environment compared to full removal of the platform, to also consider adverse impacts to air quality and greenhouse gas emissions that would result from full removal compared to partial removal of the platform, in consultation with the State Air Resources Board, consistent with any guidance or information submitted by the local air districts.

(3)The act requires the State Coastal Conservancy, upon the departments final approval of the first application, to create and update, as specified, an advisory spending plan for cost savings deposited in the California Endowment for Marine Preservation. The act requires the conservancy to submit a copy of the spending plan and all updates to the Legislature and the Board of Directors of the California Endowment for Marine Preservation.

This bill would delete these requirements.