Existing law establishes the Geologic Energy Management Division in the Department of Conservation, under the direction of the State Oil and Gas Supervisor, who is required to supervise the drilling, operation, maintenance, and abandonment of oil and gas wells, as provided.

This bill would expressly state that the Governor shall appoint the supervisor and make the appointment of the supervisor subject to confirmation by the Senate.

Existing law establishes the Geologic Energy Management Division in the Department of Conservation, under the direction of the State Oil and Gas Supervisor, who is required to supervise the drilling, operation, maintenance, and abandonment of oil and gas wells, as provided. Existing law divides the state into districts and requires the supervisor to appoint one chief deputy and at least one district deputy for each of the districts, and to prescribe their duties. Existing law requires a district deputy in each district, designated by the supervisor, to collect all necessary information regarding the oil and gas wells in the district for specified purposes, and to perform other duties, as described.

Existing law establishes the Geologic Energy Management Division in the Department of Conservation, under the direction of the State Oil and Gas Supervisor, who is required to supervise the drilling, operation, maintenance, and abandonment of oil and gas wells, as provided. Existing law divides the state into districts and requires the supervisor to appoint one chief deputy and at least one district deputy for each of the districts, and to prescribe their duties. Existing law requires a district deputy in each district, designated by the supervisor, to collect all necessary information regarding the oil and gas wells in the district for specified purposes, and to perform other duties, as described.

This bill would make nonsubstantive changes to the latter provision.

 VETO  

Bill No: SB 275

Author: Grove (R)

Amended: 3/16/23

Vote: 27

SENATE NATURAL RES. & WATER COMMITTEE: 10-0, 4/18/23

AYES: Min, Seyarto, Allen, Becker, Dahle, Eggman, Gonzalez, Grove, Laird, Limón

NO VOTE RECORDED: Hurtado

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SENATE FLOOR: 37-0, 5/4/23 (Consent)

AYES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Grove, Hurtado, Jones, Laird, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

NO VOTE RECORDED: Blakespear, Gonzalez, Limón

ASSEMBLY FLOOR: 78-0, 6/27/23 (Consent) - See last page for vote

SUBJECT: State Oil and Gas Supervisor: Senate confirmation

SOURCE: Author

DIGEST:

This bill makes the appointment of the State Oil and Gas Supervisor, the leader of the Geologic Energy Management Division in the Department of Conservation, subject to confirmation by the Senate.

ANALYSIS:

Existing law:

1. Establishes the Natural Resources and other agencies within state government, requires an agency secretary to be the executive officer of each agency, and requires the agency secretary to hold the head of each department, office, or other unit responsible for management control over the administrative, fiscal, and program performance of his or her department, office, or other unit. (Government Code (GOV) §12800, §12801)
2. Requires an agency secretary to be appointed by and hold office at the pleasure of the Governor, subject to confirmation by the Senate. (GOV §12801)
3. Establishes the Department of Conservation within the Natural Resources Agency, establishes that the Director of Conservation (director) is the executive officer in charge of the Department of Conservation, requires the director to be appointed by and hold office at the pleasure of the Governor, subject to confirmation by the Senate. (Public Resources Code (PRC) §601)
4. Establishes Geologic Energy Management Division (CalGEM) within the Department of Conservation under the direction of the State Oil and Gas Supervisor (supervisor). Provides the director, and the supervisor with the approval of the director, with all powers which may be necessary to carry out the purposes of the state’s oil and gas conservation laws. (PRC §3013)
5. Requires the supervisor to so supervise the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities attendant to oil and gas production, so as to prevent, as far as possible, damage to life, health, property, and natural resources, among other requirements, as provided. (PRC §3106)

This bill makes the appointment of the supervisor subject to confirmation by the Senate.

Background

The California Climate Crisis Act declares state policy to achieve net zero greenhouse gas emissions no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter, and requires the Air Resources Board to update the scoping plan for greenhouse gas emissions reductions to identify and recommend measures to achieve those policy goals, as specified. (AB 1279, Muratsuchi, Chapter 336, Statutes of 2022) In 2021, California was the top producer of electricity from solar, geothermal, and biomass energy according to the US Energy Information Administration.

California is a major oil and gas producing state. According to the US Energy Information Administration, the state was 7th (2021) and 15th (2021) for oil and marketed natural gas production, respectively, among the 50 states. Production of oil in the state, including state waters, was about 123M barrels in 2022, and continues to decline from the 1985 peak.

There are approximately 128,300 active, new, and idle oil and gas wells in the state (2022 data) and related production facilities located in over 180 oil and gas fields. Many of the state’s oil and gas fields have been in production for several decades, and the oil requires more effort – and thus is more expensive - to produce. Oil exploration and production in California started in the 19th century.

California uses more petroleum products than are produced in the state. About 60% of the oil used in California’s refineries is imported from other states and foreign countries. Exports of refined products from the state’s refineries, however, have increased in recent years.

CalGEM is California’s oil and gas production regulator. According to Fiscal Year 2023/2024 budget documents, CalGEM personnel are about half of the authorized personnel at the Department of Conservation (341.9 authorized positions of 688.9 total). Within the Department of Conservation, only the Director of Conservation is subject to confirmation by the Senate.

According to materials obtained from the Office of Governor Newsom, many appointed positions do not require Senate confirmation. In general, members of boards appointed by the Governor – such as the State Water Resources Control Board, the regional water boards, and the Seismic Safety Commission – are subject to Senate confirmation, but not all are. Similarly, the appointed leadership positions at an agency subject to Senate confirmation vary. In some instances, but not all, deputy agency directors and other appointed personnel below the secretary or director level require Senate confirmation. Senate confirmation of gubernatorial appointees is one of the legislative oversight mechanisms over any administration. According to materials provided by the author, over one hundred appointees were confirmed by the Senate annually in recent years.

In the California Natural Resources Agency (CNRA), for example, the Director of the Department of Parks and Recreation (State Parks), and the Director of the Division of Boating and Waterways within State Parks are both appointed by the Governor and subject to Senate confirmation. At one time, the Division of Boating and Waterways was a separate department within CNRA that was subsequently moved to division status within State Parks. In the Department of Corrections and Rehabilitation, at least 13 subordinates of the Secretary require Senate confirmation, including the undersecretary.

Comments

CalGEM is the largest division within the Department of Conservation.

As noted above, CalGEM personnel make up about half of the Department of Conservation. Should any division leader within the Department of Conservation be subject to Senate confirmation, the supervisor would be the most likely candidate.

Of the 22 acting or permanent supervisors since 1915 when the position was formally established, over 1/3 (eight) have served since 2009. Of these eight, three, including the current one, have acting status, and at least two were fired. Turnover in the position appears to be comparatively high, and it is unknown if or how Senate confirmation would impact the interest of candidates in the position. While the author states that approximately 1,400 notices of intent for well drilling or re-drilling are delayed at CalGEM, the acting supervisor has the existing authority to approve or deny these notices.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 8/7/23)

California Independent Petroleum Association

Fresno County Board of Supervisors

Greater Tehachapi Chamber of Commerce

Kern Citizens for Energy

Kern County Hispanic Chamber of Commerce

Mayor of the City of Taft, Dave Noerr

San Joaquin Refining Company

Trio Petroleum, LLC

Tulare Chamber of Commerce

White Wolf Land Service

OPPOSITION: (Verified 8/7/23)

None received

ARGUMENTS IN SUPPORT: According to the author, “The California State Senate confirms well over a hundred appointees of the Governor each year. The appointments process gives legislators and the public a chance to understand the Administration’s priorities for a given position. As CalGem’s responsibilities have grown, it makes sense to include the Oil and Gas Supervisor in the number of Governor appointments subject to Senate confirmation.”

GOVERNOR'S VETO MESSAGE:

This bill would require appointment of the State Oil and Gas Supervisor to be subject to Senate confirmation. I share the Legislature's desire for appointments to be made effectively and transparently, especially when considering California's ambitious and time-sensitive clean energy and carbon neutrality goals.

However, an appointee to this position already undergoes an extensive and exhaustive identification, evaluation, and selection process, a process that ensures the appointee is experienced and fully capable of carrying out our shared policy objectives of protecting public health, safety, and the environment. Additionally, this position falls under the direction and oversight of the Director of Conservation, a gubernatorial appointee that is subject to Senate confirmation.

For these reasons, I am returning this bill without my signature.

ASSEMBLY FLOOR: 78-0, 6/27/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert

Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wood, Rendon

NO VOTE RECORDED: Wilson, Zbur

Prepared by: Katharine Moore / N.R. & W. / (916) 651-4116

8/7/23 13:32:21

**** END ****

Date of Hearing: June 21, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

SBPCA Bill Id:SB 275

Author:(Grove) – As Amended Ver:March 16, 2023

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill requires the Geologic Energy Management Division’s (CalGEM) State Oil and Gas Supervisor (Supervisor) to be appointed by the Governor and subject to confirmation by the Senate.

FISCAL EFFECT:

Negligible state costs.

COMMENTS:

1) Purpose. According to the author:

The California State Senate confirms [more than] a hundred appointees of the Governor each year. The appointments process gives legislators and the public a chance to understand the Administration’s priorities for a given position. As CalGEMs responsibilities have grown, it makes sense to include the Oil and Gas Supervisor in the number of Governor appointments subject to Senate confirmation.

2) Background. CalGEM, housed in the Department of Conservation (DOC), is the state’s oil and gas production regulator. CalGEM regulates the drilling, operation, and permanent closure of oil, gas, and geothermal wells, and its jurisdiction includes more than 242,000 wells, including nearly 101,300 defined as active or idle oil producers. DOC is led by the Director of Conservation, and CalGEM is led by the Supervisor. Within DOC, only the Director of Conservation is subject to Senate confirmation. The Supervisor is an appointed employee who serves at the pleasure of the Governor.

According to the Office of Governor Newsom’s Statutory Index of Positions 2023, there are approximately 4,000 gubernatorial appointments, most of which do not require Senate confirmation. Senate confirmation is required for around 700 of those appointments. Over the last few years, the Senate Rules Committee has confirmed roughly between 150 to 180 appointees annually.

Senate confirmation of gubernatorial appointees is one of the legislative oversight mechanisms over the executive branch. According to the Assembly Natural Resources Committee analysis of this bill, of the 43 entities that make up the California Natural Resources Agency, only 34 have gubernatorial appointments and, of those, only 21 require Senate confirmation.

This bill requires the Supervisor to be appointed by the Governor and confirmed by the Senate. There have been 22 CalGEM Supervisors since 1915 when the position was formally established. Of those, eight have served since 2009, three were never permanently appointed and served as “acting” supervisors only, and at least two were fired.

Among other organizations in support, the Fresno Board of Supervisors states:

The Geologic Energy Management Division (CalGem) is a large division within the Department of Conservation and oversees a significant sector of the economy. The Division’s responsibilities have been growing with recently passed legislation…It makes sense for the Oil and Gas Supervisor to be approved by the Senate appointments process as this will give legislators and the public an opportunity to discuss the Division’s priorities.

Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081

Date of Hearing: June 12, 2023

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Luz Rivas, Chair

SBPCA Bill Id:SB 275

Author:(Grove) – As Amended Ver:March 16, 2023

SENATE VOTE: 37-0

SUBJECT: State Oil and Gas Supervisor: Senate confirmation

SUMMARY: Requires the Geologic Energy Management Division’s (CalGEM) State Oil and Gas Supervisor (Supervisor) to be appointed by the Governor and subject to confirmation by the Senate. 

EXISTING LAW:

1. Requires an agency secretary to be appointed by and hold office at the pleasure of the Governor, subject to confirmation by the Senate. (Government Code 12801)
2. Establishes the Department of Conservation (DOC) to be conducted under the control of an executive officer known as the Director of Conservation, who is appointed by the Governor and subject to confirmation by the Senate. (Public Resources Code (PRC) 601)
3. Requires CalGEM to be in charge of a chief, known as the Supervisor. (PRC 690)
4. Provides the director, and the Supervisor with the approval of the director, with all powers which may be necessary to carry out the purposes of the state’s oil and gas conservation laws. (PRC 3013)

FISCAL EFFECT: According to the Senate Appropriations Committee, enactment of this bill would result in negligible costs to the state.

COMMENTS:

1. CalGEM. CalGEM is responsible for protecting public health, safety, and the environment in its oversight of the oil, natural gas, and geothermal industries, while working to help California achieve its climate change and clean energy goals. CalGEM regulates the drilling, operation, and permanent closure of energy resource wells, and its jurisdiction currently includes more than 242,000 wells, including nearly 101,300 defined as active or idle oil producers.

The supervisor is an appointed employee who serves at the pleasure of the governor and is not listed on the index of Governor appointees because the appointment is not statutorily required. There are various other appointments not specified by statute.

Of the 22 acting or permanent supervisors since 1915 when the position was formally established, more than 1/3 (eight) have served since 2009. Of these eight, three, including the current one, have acting status, and at least two were fired.

1. Appointments. According to the Office of Governor Newsom’s Statutory Index of Positions 2023, there are approximately 4,000 gubernatorial appointments, most of which do not require Senate confirmation. Senate confirmation is required for around 700 of those appointments, or ~18%. Over the last few years, the Senate Rules Committee has confirmed about 150-180 appointees annually.

In general, members of boards appointed by the Governor – such as the State Water Resources Control Board, the regional water boards, and the Seismic Safety Commission – are subject to Senate confirmation, but not all are. Similarly, the appointed leadership positions at an agency subject to Senate confirmation vary. In some instances, deputy agency directors and other appointed personnel below the secretary or director level require Senate confirmation.

Senate confirmation of gubernatorial appointees is one of the legislative oversight mechanisms over the executive branch. In the California Natural Resources Agency (NRA), there are 43 entities (departments, commissions, boards, conservancies, councils, and museums), but not all require an appointment (only 34 do), and not all appointments require Senate confirmation (only 21 do). For example, the director of the Department of Parks and Recreation (State Parks) and the director of the Division of Boating and Waterways within State Parks are both appointed by the Governor and subject to Senate confirmation. Likewise, the director the Department of Fish & Wildlife (DFW) and the Administrator for the Office of Oil Spill Prevention and Response within DFW are both appointed by the Governor and subject to Senate confirmation.

Within the DOC, only the director is subject to confirmation by the Senate. SB 275 would further require the Supervisor under the DOC director to be appointed by the Governor and confirmed by the Senate.

1. Author’s statement:

The California State Senate confirms [more than] a hundred appointees of the Governor each year. The appointments process gives legislators and the public a chance to understand the Administration’s priorities for a given position. As CalGEMs responsibilities have grown, it makes sense to include the Oil and Gas Supervisor in the number of Governor appointments subject to Senate confirmation.

REGISTERED SUPPORT / OPPOSITION:

Support

California Independent Petroleum Association
City of Taft
County of Fresno
Greater Tehachapi Chamber of Commerce
Kern Citizens for Energy
Kern County Hispanic Chamber of Commerce
San Joaquin Refining Co.
San Joaquin Valley Chapter of The American Petroleum Industry
Tulare Chamber of Commerce

Opposition

None on file

Analysis Prepared by: Paige Brokaw / NAT. RES. /

 CONSENT  

Bill No: SB 275

Author: Grove (R)

Amended: 3/16/23

Vote: 21

SENATE NATURAL RES. & WATER COMMITTEE: 10-0, 4/18/23

AYES: Min, Seyarto, Allen, Becker, Dahle, Eggman, Gonzalez, Grove, Laird, Limón

NO VOTE RECORDED: Hurtado

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

SUBJECT: State Oil and Gas Supervisor: Senate confirmation

SOURCE: Author

DIGEST:

This bill makes the appointment of the State Oil and Gas Supervisor, the leader of the Geologic Energy Management Division in the Department of Conservation, subject to confirmation by the Senate.

ANALYSIS:

Existing law:

1. Establishes the Natural Resources and other agencies within state government, requires an agency secretary to be the executive officer of each agency, and requires the agency secretary to hold the head of each department, office, or other unit responsible for management control over the administrative, fiscal, and program performance of his or her department, office, or other unit. (Government Code (GOV) §12800, §12801)
2. Requires an agency secretary to be appointed by and hold office at the pleasure of the Governor, subject to confirmation by the Senate. (GOV §12801)
3. Establishes the Department of Conservation within the Natural Resources Agency, establishes that the Director of Conservation (director) is the executive officer in charge of the Department of Conservation, requires the director to be appointed by and hold office at the pleasure of the Governor, subject to confirmation by the Senate. (Public Resources Code (PRC) §601)
4. Establishes Geologic Energy Management Division (CalGEM) within the Department of Conservation under the direction of the State Oil and Gas Supervisor (supervisor). Provides the director, and the supervisor with the approval of the director, with all powers which may be necessary to carry out the purposes of the state’s oil and gas conservation laws. (PRC §3013)
5. Requires the supervisor to so supervise the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities attendant to oil and gas production, so as to prevent, as far as possible, damage to life, health, property, and natural resources, among other requirements, as provided. (PRC §3106)

This bill makes the appointment of the supervisor subject to confirmation by the Senate.

Background

The California Climate Crisis Act declares state policy to achieve net zero greenhouse gas emissions no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter, and requires the Air Resources Board to update the scoping plan for greenhouse gas emissions reductions to identify and recommend measures to achieve those policy goals, as specified. (AB 1279, Muratsuchi, Chapter 336, Statutes of 2022) In 2021, California was the top producer of electricity from solar, geothermal, and biomass energy according to the US Energy Information Administration.

California is a major oil and gas producing state. According to the US Energy Information Administration, the state was 7th (2021) and 15th (2021) for oil and marketed natural gas production, respectively, among the 50 states. Production of oil in the state, including state waters, was about 123M barrels in 2022, and continues to decline from the 1985 peak.

There are approximately 128,300 active, new, and idle oil and gas wells in the state (2022 data) and related production facilities located in over 180 oil and gas fields. Many of the state’s oil and gas fields have been in production for several decades, and the oil requires more effort – and thus is more expensive - to produce. Oil exploration and production in California started in the 19th century.

California uses more petroleum products than are produced in the state. About 60% of the oil used in California’s refineries is imported from other states and foreign countries. Exports of refined products from the state’s refineries, however, have increased in recent years.

CalGEM is California’s oil and gas production regulator. According to Fiscal Year 2023/2024 budget documents, CalGEM personnel are about half of the authorized personnel at the Department of Conservation (341.9 authorized positions of 688.9 total). Within the Department of Conservation, only the Director of Conservation is subject to confirmation by the Senate.

According to materials obtained from the Office of Governor Newsom, many appointed positions do not require Senate confirmation. In general, members of boards appointed by the Governor – such as the State Water Resources Control Board, the regional water boards, and the Seismic Safety Commission – are subject to Senate confirmation, but not all are. Similarly, the appointed leadership positions at an agency subject to Senate confirmation vary. In some instances, but not all, deputy agency directors and other appointed personnel below the secretary or director level require Senate confirmation. Senate confirmation of gubernatorial appointees is one of the legislative oversight mechanisms over any administration. According to materials provided by the author, over one hundred appointees were confirmed by the Senate annually in recent years.

In the California Natural Resources Agency (CNRA), for example, the Director of the Department of Parks and Recreation (State Parks), and the Director of the Division of Boating and Waterways within State Parks are both appointed by the Governor and subject to Senate confirmation. At one time, the Division of Boating and Waterways was a separate department within CNRA that was subsequently moved to division status within State Parks. In the Department of Corrections and Rehabilitation, at least 13 subordinates of the Secretary require Senate confirmation, including the undersecretary.

Comments

CalGEM is the largest division within the Department of Conservation.

As noted above, CalGEM personnel make up about half of the Department of Conservation. Should any division leader within the Department of Conservation be subject to Senate confirmation, the supervisor would be the most likely candidate.

Of the 22 acting or permanent supervisors since 1915 when the position was formally established, over 1/3 (eight) have served since 2009. Of these eight, three, including the current one, have acting status, and at least two were fired. Turnover in the position appears to be comparatively high, and it is unknown if or how Senate confirmation would impact the interest of candidates in the position. While the author states that approximately 1,400 notices of intent for well drilling or re-drilling are delayed at CalGEM, the acting supervisor has the existing authority to approve or deny these notices.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 5/2/23)

California Independent Petroleum Association

Fresno County Board of Supervisors

Greater Tehachapi Chamber of Commerce

Kern Citizens for Energy

Kern County Hispanic Chamber of Commerce

Mayor of the City of Taft, Dave Noerr

San Joaquin Refining Company

Trio Petroleum, LLC

Tulare Chamber of Commerce

White Wolf Land Service

OPPOSITION: (Verified 5/2/23)

None received

ARGUMENTS IN SUPPORT: According to the author, “The California State Senate confirms well over a hundred appointees of the Governor each year. The appointments process gives legislators and the public a chance to understand the Administration’s priorities for a given position. As CalGem’s responsibilities have grown, it makes sense to include the Oil and Gas Supervisor in the number of Governor appointments subject to Senate confirmation.”

Prepared by: Katharine Moore / N.R. & W. / (916) 651-4116

5/3/23 15:07:38

**** END ****

SENATE COMMITTEE ON NATURAL RESOURCES AND WATER

Senator Dave Min, Chair

2023 - 2024 Regular

Bill No: SB 275 Hearing Date: April 18, 2023

Subject: State Oil and Gas Supervisor: Senate confirmation

BACKGROUND AND EXISTING LAW

The California Climate Crisis Act declares state policy to achieve net zero greenhouse gas emissions no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter, and requires the Air Resources Board to update the scoping plan for greenhouse gas emissions reductions to identify and recommend measures to achieve those policy goals, as specified. (AB 1279 (Muratsuchi), Chapter 336, Statutes of 2022) In 2021, California was the top producer of electricity from solar, geothermal, and biomass energy according to the US Energy Information Administration.

California is a major oil and gas producing state. According to the US Energy Information Administration, the state was 7^th (2021) and 15^th (2021) for oil and marketed natural gas production, respectively, among the 50 states. Production of oil in the state, including state waters, was about 123M barrels in 2022, and continues to decline from the 1985 peak.

There are approximately 128,300 active, new, and idle oil and gas wells in the state (2022 data) and related production facilities located in over 180 oil and gas fields. Many of the state’s oil and gas fields have been in production for several decades, and the oil requires more effort – and thus is more expensive - to produce. Oil exploration and production in California started in the 19^th century.

California uses more petroleum products than are produced in the state. About 60% of the oil used in California’s refineries is imported from other states and foreign countries. Exports of refined products from the state’s refineries, however, have increased in recent years.

California’s oil and gas production regulator is the Geologic Energy Management Division (CalGEM) in the Department of Conservation. According to Fiscal Year 2023/2024 budget documents, CalGEM personnel are about half of the authorized personnel at the Department of Conservation (341.9 authorized positions of 688.9 total). The Department of Conservation is led by the Director of Conservation, and CalGEM is led by the State Oil and Gas Supervisor. Within the Department of Conservation, only the Director of Conservation is subject to confirmation by the Senate.

According to materials obtained from the Office of Governor Newsom, many appointed positions do not require Senate confirmation. In general, members of boards appointed by the Governor – such as the State Water Resources Control Board, the regional water boards, and the Seismic Safety Commission – are subject to Senate confirmation, but not all are. Similarly, the appointed leadership positions at an agency subject to Senate confirmation vary. In some instances, but not all, deputy agency directors and other appointed personnel below the secretary or director level require Senate confirmation. Senate confirmation of gubernatorial appointees is one of the legislative oversight mechanisms over any administration. According to materials provided by the author, over one hundred appointees were confirmed by the Senate annually in recent years.

In the California Natural Resources Agency (CNRA), for example, the Director of the Department of Parks and Recreation (State Parks), and the Director of the Division of Boating and Waterways within State Parks are both appointed by the Governor and subject to Senate confirmation. At one time, the Division of Boating and Waterways was a separate department within CNRA that was subsequently moved to division status within State Parks. In the Department of Corrections and Rehabilitation, at least 13 subordinates of the Secretary require Senate confirmation, including the undersecretary.

Existing law:

1. Establishes the Natural Resources and other agencies within state government, requires an agency secretary to be the executive officer of each agency, and requires the agency secretary to hold the head of each department, office, or other unit responsible for management control over the administrative, fiscal, and program performance of his or her department, office, or other unit. (Government Code (GOV) §12800, §12801)
2. Requires an agency secretary to be appointed by and hold office at the pleasure of the Governor, subject to confirmation by the Senate. (GOV §12801)
3. Establishes the Department of Conservation within the Natural Resources Agency, establishes that the Director of Conservation (director) is the executive officer in charge of the Department of Conservation, requires the director to be appointed by and hold office at the pleasure of the Governor, subject to confirmation by the Senate. (Public Resources Code (PRC) §601)
4. Establishes CalGEM within the Department of Conservation under the direction of the State Oil and Gas Supervisor (supervisor). Provides the director, and the supervisor with the approval of the director, with all powers which may be necessary to carry out the purposes of the state’s oil and gas conservation laws. (PRC §3013)
5. Requires the supervisor to so supervise the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities attendant to oil and gas production, so as to prevent, as far as possible, damage to life, health, property, and natural resources, among other requirements, as provided. (PRC §3106)

PROPOSED LAW

This bill would make the appointment of the supervisor subject to confirmation by the Senate.

ARGUMENTS IN SUPPORT

According to the author, “The California State Senate confirms well over a hundred appointees of the Governor each year. The appointments process gives legislators and the public a chance to understand the Administration’s priorities for a given position. As CalGem’s responsibilities have grown, it makes sense to include the Oil and Gas Supervisor in the number of Governor appointments subject to Senate confirmation.”

ARGUMENTS IN OPPOSITION

None received

COMMENTS

CalGEM is the largest division within the Department of Conservation.

As noted above, CalGEM personnel make up about half of the Department of Conservation. Should any division leader within the Department be subject to Senate confirmation, the supervisor would be the most likely candidate. Of the leaders of the various divisions within the Department of Conservation, the supervisor has, at least in the last decade or so, enjoyed the highest public profile. This may well remain so, given the likely changes in the oil and gas production industry as the state seeks to reach its decarbonization goals by 2045.

Of the 22 acting or permanent supervisors since 1915 when the position was formally established, over 1/3 (eight) have served since 2009. Of these eight, three, including the current one, have acting status, and at least two were fired. Turnover in the position appears to be comparatively high, and it is unknown if or how Senate confirmation would impact the interest of candidates in the position. While the author states that approximately 1,400 notices of intent for well drilling or re-drilling are delayed at CalGEM, the acting supervisor has the existing authority to approve or deny these notices.

SUGGESTED AMENDMENTS: none

SUPPORT

Fresno County Board of Supervisors

Greater Tehachapi Chamber of Commerce

Kern Citizens for Energy

The Honorable Dave Noerr, Mayor, City of Taft

Trio Petroleum, LLC

Several individuals

OPPOSITION

None Received

-- END --