AB 1448: Coastal resources: California Coastal Sanctuary: tidelands and submerged lands: oil and gas development.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2026-09-29
Current Status:
Passed
(2026-09-29: Chaptered by Secretary of State - Chapter 812, Statutes of 2026.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
What does this bill do?
The bill stops the State Lands Commission and local trustees from approving new oil and gas leases or using state tidelands or submerged‑land infrastructure to support Pacific Outer Continental Shelf leases issued after January 1, 2026, and it bars such leases in areas designated as California marine protected areas or national marine sanctuaries on or after that date. It also requires public notice and a 180‑day wait before approving related renewals, transfers, or changes, and directs decisionmakers to consider environmental and safety impacts, spill history and drilling methods, transport volumes, and proof the operator can pay for cleanup and decommissioning.
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(1)Existing law creates the California Coastal Sanctuary and provides that it includes all state waters subject to tidal influence, except as provided. Existing law authorizes the State Lands Commission to enter into any lease for the extraction of oil or gas from state-owned tidelands and submerged lands in the California Coastal Sanctuary if the commission determines both that oil and gas deposits in the California Coastal Sanctuary are being drained by means of producing wells upon adjacent federal lands and that the lease is in the best interest of the state.
This bill would prohibit the commission from entering into leases for the extraction of oil or gas, as described above, in areas designated as California marine protected areas or national marine sanctuaries, as provided.
(2)Existing law prohibits the commission or a local trustee, as defined, of granted public trust lands from entering into a new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, except as provided. Existing law requires the commission or a local trustee when approving or disapproving a lease renewal, extension, amendment, or modification authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to follow a specified process.
This bill would additionally prohibit leases and oil- and gas-related infrastructure located upon tidelands and submerged lands within state waters from being used to support Pacific Outer Continental Shelf leases issued after January 1, 2026, except as provided. The bill would additionally require the commission or the local trustee, in considering approval or disapproval, to consider additional factors, as specified. By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, or modification, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(1)Existing law creates the California Coastal Sanctuary and provides that it includes all state waters subject to tidal influence, except as provided. Existing law authorizes the State Lands Commission to enter into any lease for the extraction of oil or gas from state-owned tidelands and submerged lands in the California Coastal Sanctuary if the commission determines both that oil and gas deposits in the California Coastal Sanctuary are being drained by means of producing wells upon adjacent federal lands and that the lease is in the best interest of the state.
This bill would prohibit the commission from entering into leases for the extraction of oil or gas, as described above, in areas designated as California marine protected areas or national marine sanctuaries, as provided.
(2)Existing law prohibits the commission or a local trustee, as defined, of granted public trust lands from entering into a new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, except as provided. Existing law requires the commission or a local trustee when approving or disapproving a lease renewal, extension, amendment, or modification authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to follow a specified process.
This bill would additionally prohibit leases and oil- and gas-related infrastructure located upon tidelands and submerged lands within state waters from being used to support Pacific Outer Continental Shelf leases issued after January 1, 2026, except as provided. The bill would additionally require the commission or the local trustee, in considering approval or disapproval, to consider additional factors, as specified. By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, or modification, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(1)Existing law creates the California Coastal Sanctuary and provides that it includes all state waters subject to tidal influence, except as provided. Existing law authorizes the State Lands Commission to enter into any lease for the extraction of oil or gas from state-owned tidelands and submerged lands in the California Coastal Sanctuary if the commission determines both that oil and gas deposits in the California Coastal Sanctuary are being drained by means of producing wells upon adjacent federal lands and that the lease is in the best interest of the state.
This bill would repeal that authorization. The bill would also make conforming changes. prohibit the commission from entering into leases for the extraction of oil or gas, as described above, in areas designated as California marine protected areas or national marine sanctuaries, as provided.
(2)Existing law prohibits the commission or a local trustee, as defined, of granted public trust lands from entering into a new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, except as provided. Existing law requires the commission or a local trustee when approving or disapproving a lease renewal, extension, amendment, or modification authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to follow a specified process.
This bill would additionally prohibit leases and oil- and gas-related infrastructure located upon tidelands and submerged lands within state waters from being used to support Pacific Outer Continental Shelf leases issued after January 1, 2026, except as provided. The bill would specify that the above-described requirement regarding approval or disapproval of a lease renewal, extension, amendment, or modification also applies to a lease assignment. The bill would additionally require the commission or the local trustee, in considering approval or disapproval, to consider additional factors, as specified. By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(1)Existing law creates the California Coastal Sanctuary and provides that it includes all state waters subject to tidal influence, except as provided. Existing law authorizes the State Lands Commission to enter into any lease for the extraction of oil or gas from state-owned tidelands and submerged lands in the California Coastal Sanctuary if the commission determines both that oil and gas deposits in the California Coastal Sanctuary are being drained by means of producing wells upon adjacent federal lands and that the lease is in the best interest of the state.
This bill would repeal that authorization. The bill would also make conforming changes.
Existing(2)Existing law prohibits the State Lands Commission commission or a local trustee, as defined, of granted public trust lands from entering into a new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018. 2018, except as provided. Existing law requires the commission or a local trustee when approving or disapproving a lease renewal, extension, amendment, or modification authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to follow a specified process. Existing law provides that these provisions do not prevent specified activities, including, among others, issuance by the commission of leases pursuant to exceptions applicable to the California Coastal Sanctuary.
This bill would additionally prohibit leases and oil- and gas-related infrastructure located upon tidelands and submerged lands within state waters from being used to support Pacific Outer Continental Shelf leases issued after January 1, 2026, except as provided. The bill would specify that the above-described requirement regarding approval or disapproval of a lease renewal, extension, amendment, or modification also applies to a lease assignment. The bill would additionally require the commission or the local trustee, in considering approval or disapproval, to consider additional factors, as specified. By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, this bill would impose a state-mandated local program.
The California Coastal Act of 1976 requires a person wishing to perform or undertake any development in the coastal zone to obtain a coastal development permit. The act encourages coastal-dependent industrial facilities to locate or expand within existing sites and requires that facilities be permitted reasonable long-term growth, as provided. The act specifies that new or expanded oil and gas development is not to be considered a coastal-dependent industrial facility and is to be permitted only if it is consistent with the act and meets certain requirements, including a requirement that oil produced offshore is to be transported onshore by pipeline using the best achievable technology, as defined, and onshore transport of the oil to processing and refining facilities by pipeline. The act applies the pipeline requirements on new or expanded oil extraction operations, and defines terms for these purposes, including the term expanded oil extraction. The act authorizes the transport of the oil by other modes of transportation if certain conditions are met.This bill would require the onshore transportation of the oil to processing and refining facilities to use the best available technology, as provided. The bill would repeal authorization for the use of alternative modes of transportation. The bill would revise the definition of expanded oil extraction to include reactivation of a facility idled, inactive, or out of service for more than 5 years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies.The act authorizes the repair and maintenance of an existing oil and gas facility to be permitted as a coastal-dependent industrial facility if certain requirements are met.The bill would require a person to obtain a new coastal development permit for the repair, reactivation, and maintenance of an oil and gas facility, including an oil pipeline, that has been idled, inactive, or out of service for 5 years or more.Because the bill would impose additional duties on a local government with a certified local coastal program in processing and reviewing an application for a coastal development permit, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law prohibits the State Lands Commission or a local trustee, as defined, of granted public trust lands from entering into a new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018. Existing law requires the commission or a local trustee when approving or disapproving a lease renewal, extension, amendment, or modification authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to follow a specified process. Existing law provides that these provisions do not prevent specified activities, including, among others, issuance by the commission of leases pursuant to exceptions applicable to the California Coastal Sanctuary.
This bill would specify that the requirement regarding approval or disapproval of a lease renewal, extension, amendment, or modification also applies to a lease assignment. The bill would additionally require the commission or the local trustee, in considering approval or disapproval, to consider additional factors, as specified. By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, this bill would impose a state-mandated local program.
The California Coastal Act of 1976 requires a person wishing to perform or undertake any development in the coastal zone to obtain a coastal development permit. The act encourages coastal-dependent industrial facilities to locate or expand within existing sites and requires that facilities be permitted reasonable long-term growth, as provided. The act specifies that new or expanded oil and gas development is not to be considered a coastal-dependent industrial facility and is to be permitted only if it is consistent with the act and meets certain requirements, including a requirement that oil produced offshore is to be transported onshore by pipeline using the best achievable technology, as defined, and onshore transport of the oil to processing and refining facilities by pipeline. The act applies the pipeline requirements on new or expanded oil extraction operations, and defines terms for these purposes, including the term expanded oil extraction. The act authorizes the transport of the oil by other modes of transportation if certain conditions are met.
This bill would require the onshore transportation of the oil to processing and refining facilities to use the best available technology, as provided. The bill would repeal authorization for the use of alternative modes of transportation. The bill would revise the definition of expanded oil extraction to include reactivation of a facility idled, inactive, or out of service for more than 3 5 years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies.
The act authorizes the repair and maintenance of an existing oil and gas facility to be permitted as a coastal-dependent industrial facility if certain requirements are met.
The bill would require a person to obtain a new coastal development permit for the repair, reactivation, and maintenance of an oil and gas facility facility, including an oil pipeline, that has been idled, inactive, or out of service for 5 years or more.
Because the bill would impose additional duties on a local government with a certified local coastal program in processing and reviewing an application for a coastal development permit, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law prohibits the State Lands Commission or a local trustee, as defined, of granted public trust lands from entering into a new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018. Existing law requires the commission or a local trustee when approving or disapproving a lease renewal, extension, amendment, or modification authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to follow a specified process. Existing law provides that these provisions do not prevent specified activities, including, among others, issuance by the commission of leases pursuant to exceptions applicable to the California Coastal Sanctuary.
This bill would specify that the requirement regarding approval or disapproval of a lease renewal, extension, amendment, or modification also applies to a lease assignment. The bill would additionally require the commission or the local trustee, in considering approval or disapproval, to consider additional factors, as specified. By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, this bill would impose a state-mandated local program.
The California Coastal Act of 1976 requires a person wishing to perform or undertake any development in the coastal zone to obtain a coastal development permit. The act encourages coastal-dependent industrial facilities to locate or expand within existing sites and requires that facilities be permitted reasonable long-term growth, as provided. The act specifies that new or expanded oil and gas development is not to be considered a coastal-dependent industrial facility and is to be permitted only if it is consistent with the act and meets certain requirements, including a requirement that oil produced offshore is to be transported onshore by pipeline using the best achievable technology, as defined, and onshore transport of the oil to processing and refining facilities by pipeline. The act applies the pipeline requirements on new or expanded oil extraction operations, and defines terms for these purposes, including the term expanded oil extraction. The act authorizes the transport of the oil by other modes of transportation if certain conditions are met.
This bill would require the onshore transportation of the oil to processing and refining facilities to use the best available technology, as provided. The bill would repeal authorization for the use of alternative modes of transportation. The bill would revise the definition of expanded oil extraction to include reactivation of a facility idled, inactive, or out of service for more than 3 years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies.
The act authorizes the repair and maintenance of an existing oil and gas facility to be permitted as a coastal-dependent industrial facility if certain requirements are met.
This bill would authorize the reactivation of an existing oil and gas facility to also be permitted as a coastal-dependent industrial facility. TheThe bill would require a person to obtain a new coastal development permit for the repair, reactivation, and maintenance of an oil and gas facility that has been idled, inactive, or out of service for 3 5 years or more.
Because the bill would impose additional duties on a local government with a certified local coastal program in processing and reviewing an application for a coastal development permit, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law prohibits the State Lands Commission or a local trustee, as defined, of granted public trust lands from entering into a new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018. Existing law requires the commission or a local trustee when approving or disapproving a lease renewal, extension, amendment, or modification authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to follow a specified process. Existing law provides that these provisions do not prevent specified activities, including, among others, issuance by the commission of leases pursuant to exceptions applicable to the California Coastal Sanctuary.
This bill would specify that the requirement regarding approval or disapproval of a lease renewal, extension, amendment, or modification also applies to a lease assignment. The bill would additionally require the commission or the local trustee, in considering approval or disapproval, to consider additional factors, as specified. By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, this bill would impose a state-mandated local program.
The California Coastal Act of 1976 requires a person wishing to perform or undertake any development in the coastal zone to obtain a coastal development permit. The act encourages coastal-dependent industrial facilities to locate or expand within existing sites and requires that facilities be permitted reasonable long-term growth, as provided. The act specifies that new or expanded oil and gas development is not to be considered a coastal-dependent industrial facility and is to be permitted only if it is consistent with the act and meets certain requirements, including a requirement that oil produced offshore is to be transported onshore by pipeline using the best achievable technology, as defined, and onshore transport of the oil to processing and refining facilities by pipeline. The act applies the pipeline requirements on new or expanded oil extraction operations, and defines terms for these purposes, including the term expanded oil extraction. The act authorizes the transport of the oil by other modes of transportation if certain conditions are met.
This bill would require the onshore transportation of the oil to processing and refining facilities to use the best available technology, as provided. For interstate hazardous liquid pipelines not under the State Fire Marshals jurisdiction, the bill would require the State Fire Marshal to request approval from the federal Pipeline and Hazardous Materials Safety Administration to obtain interstate certification and, with the approval of that federal agency, would require the State Fire Marshal to ensure those pipelines comply with federal and state laws. The bill would repeal authorization for the use of alternative modes of transportation. The bill would revise the definition of expanded oil extraction to include reactivation of a facility idled, inactive, or out of service for more than 3 years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies.
The act authorizes the repair and maintenance of an existing oil and gas facility to be permitted as a coastal-dependent industrial facility if certain requirements are met.
This bill would authorize the reactivation of an existing oil and gas facility to also be permitted as a coastal-dependent industrial facility. The bill would require a person to obtain a new coastal development permit for the repair, reactivation, and maintenance of an oil and gas facility that has been idled, inactive, or out of service for 3 years or more.
Because the bill would impose additional duties on a local government with a certified local coastal program in processing and reviewing an application for a coastal development permit, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law prohibits the State Lands Commission or a local trustee, as defined, of granted public trust lands from entering into a new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018. Existing law requires the commission or a local trustee when approving or disapproving a lease renewal, extension, amendment, or modification authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to follow a specified process. Existing law provides that these provisions do not prevent specified activities, including, among others, issuance by the commission of leases pursuant to exceptions applicable to the California Coastal Sanctuary.
This bill would apply the above-described prohibition and requirement to any Pacific Outer Continental Shelf lease upon tidelands and submerged lands within state waters. The bill would specify that the requirement regarding approval or disapproval of a lease renewal, extension, amendment, or modification also applies to a lease assignment. The bill would additionally require the commission or the local trustee, in considering approval or disapproval, to consider additional factors, as specified. The bill would require the approval of a lease renewal, extension, amendment, assignment, or modification by not less than 2/3 of all members of the commission or the governing board of the local trustee. By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, this bill would impose a state-mandated local program.
The California Coastal Act of 1976 requires a person wishing to perform or undertake any development in the coastal zone to obtain a coastal development permit. The act encourages coastal-dependent industrial facilities to locate or expand within existing sites and requires that facilities be permitted reasonable long-term growth, as provided. The act specifies that new or expanded oil and gas development is not to be considered a coastal-dependent industrial facility and is to be permitted only if it is consistent with the act and meets certain requirements, including a requirement that oil produced offshore is to be transported onshore by pipeline using the best achievable technology, as defined, and onshore transport of the oil to processing and refining facilities by pipeline. The act applies the pipeline requirements on new or expanded oil extraction operations, and defines terms for these purposes, including the term expanded oil extraction. The act authorizes the transport of the oil by other modes of transportation if certain conditions are met.
This bill would require the onshore transportation of the oil to processing and refining facilities to use the best achievable technology. The available technology, as provided. For interstate hazardous liquid pipelines not under the State Fire Marshals jurisdiction, the bill would require the pipelines used for transporting the oil produced offshore to be certified by the Office of the State Fire Marshal as meeting certain conditions. require the State Fire Marshal to request approval from the federal Pipeline and Hazardous Materials Safety Administration to obtain interstate certification and, with the approval of that federal agency, would require the State Fire Marshal to ensure those pipelines comply with federal and state laws. The bill would repeal authorization for the use of alternative modes of transportation. The bill would revise the definition of expanded oil extraction to include reactivation of a facility idled, inactive, or out of service for more than 3 years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies.
The act authorizes the repair and maintenance of an existing oil and gas facility to be permitted as a coastal-dependent industrial facility if certain requirements are met.
This bill would authorize the reactivation of an existing oil and gas facility to also be permitted as a coastal-dependent industrial facility. The bill would require a person to obtain a new coastal development permit for the repair, reactivation, and maintenance of an oil and gas facility that has been idled, inactive, or out of service for 3 years or more.
Because the bill would impose additional duties on a local government with a certified local coastal program in processing and reviewing an application for a coastal development permit, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law prohibits the State Lands Commission or a local trustee, as defined, of granted public trust lands from entering into a new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018. Existing law requires the commission or a local trustee when approving or disapproving a lease renewal, extension, amendment, or modification authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to follow a specified process. Existing law provides that these provisions do not prevent specified activities, including, among others, issuance by the commission of leases pursuant to exceptions applicable to the California Coastal Sanctuary.
This bill would apply the above-described prohibition and requirement to any Pacific Outer Continental Shelf lease upon tidelands and submerged lands within state waters. The bill would specify that the requirement regarding approval or disapproval of a lease renewal, extension, amendment, or modification also applies to a lease assignment. The bill would additionally require the commission or the local trustee, in considering approval or disapproval, to consider additional factors, as specified. The bill would require the approval of a lease renewal, extension, amendment, assignment, or modification by not less than 2/3 of all members of the commission or the governing board of the local trustee. By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, this bill would impose a state-mandated local program.
The California Coastal Act of 1976 requires a person wishing to perform or undertake any development in the coastal zone to obtain a coastal development permit. The act encourages coastal-dependent industrial facilities to locate or expand within existing sites and requires that facilities be permitted reasonable long-term growth, as provided. The act specifies that new or expanded oil and gas development is not to be considered a coastal-dependent industrial facility and is to be permitted only if it is consistent with the act and meets certain requirements, including a requirement that oil produced offshore is to be transported onshore by pipeline using the best achievable technology, as defined, and onshore transport of the oil to processing and refining facilities by pipeline. The act applies the pipeline requirements on new or expanded oil extraction operations, and defines terms for these purposes, including the term expanded oil extraction. The act authorizes the transport of the oil by other modes of transportation if certain conditions are met.
This bill would require the onshore transportation of the oil to processing and refining facilities to use the best achievable technology. The bill would require the pipelines used for transporting the oil produced offshore to be certified by the Office of the State Fire Marshal as meeting certain conditions. The bill would repeal authorization for the use of alternative modes of transportation. The bill would revise the definition of expanded oil extraction to include reactivation of a facility idled, inactive, or out of service for more than 3 years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies.
The act authorizes the repair and maintenance of an existing oil and gas facility to be permitted as a coastal-dependent industrial facility if certain requirements are met.
This bill would authorize the reactivation of an existing oil and gas facility to also be permitted as a coastal-dependent industrial facility. The bill would require a person to obtain a new coastal development permit for the repair, reactivation, and maintenance of an oil and gas facility that has been idled, inactive, or out of service for 3 years or more.
Because the bill would impose additional duties on a local government with a certified local coastal program in processing and reviewing an application for a coastal development permit, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
(a)The commission may enter into any lease for the extraction of oil or gas from state-owned tide and submerged lands in the California Coastal Sanctuary if the commission 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 interests of the state, except as provided in subdivision (b).
(b)The commission shall not enter into a lease pursuant to subdivision (a) in either of the following areas:
(1)Areas designated as California marine protected areas pursuant to the Marine Life Protection Act (Chapter 10.5 (commencing with Section 2850) of Division 3 of the Fish and Game Code) as of, or after, January 1, 2026.
(2)Areas designated as national marine sanctuaries under the National Marine Sanctuaries Act (16 U.S.C. 1431 et seq.) as of, or after, January 1, 2026.
SEC. 2.Section 6245 of the Public Resources Code is amended to read:6245.(a)Except as provided in subdivision (e), the commission or a local trustee shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters for the purpose of supporting Pacific Outer Continental Shelf leases issued after January 1, 2026, nor shall any leases and oil- and gas-related infrastructure located upon tidelands and submerged lands within state waters be used to support Pacific Outer Continental Shelf leases issued after January 1, 2026.
(b)(1)Upon receipt of an application for a lease renewal, extension, amendment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2026, the commission or local trustee shall provide notice of this application by including it as a separate informational item on the agenda of the commissions or local trustees next duly noticed public meeting. Summary information about the requested lease renewal, extension, amendment, or modification shall be included in the agenda summary.
(2)Notwithstanding the Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code), the commission or local trustee shall take no further action to approve the requested lease renewal, extension, amendment, or modification until 180 days after the notification required in paragraph (1).
(c)Before approving a lease renewal, extension, amendment, or modification for the operation of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2026, the commission or local trustee shall consider, at a minimum, the following:
(1)Whether the lease renewal, extension, amendment, or modification is necessary to protect the marine environment or to ensure human health and safety.
(2)Whether the lease renewal, extension, amendment, or modification provides a benefit to the state beyond additional lease revenues.
(3)Whether the lease renewal, extension, amendment, or modification will impact the volume of oil and gas that may be transported across state waters.
(4)Whether the lease renewal, extension, amendment, or modification may impact public trust resources and values.
(5)Whether the lease renewal, extension, amendment, or modification is for, or connected to, infrastructure that has experienced a reportable incident, such as an oil spill.
(6)Whether the lease renewal, extension, amendment, or modification is related to the use of well stimulation treatments, extended reach drilling and production, horizontal drilling and production, or other unconventional drilling and production techniques for resource extraction.
(7)Whether the operator has provided finalized certificates of financial responsibility obtained from the Office of Spill Prevention and Response and has provided financial assurances required for decommissioning pursuant to subdivision (d) of Section 6829 and other applicable local or state laws.
(d)(1)A lease renewal, extension, amendment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf, shall not be approved at the same duly noticed public meeting at which the lease renewal, extension, amendment, or modification is first presented as an informational item.
(2)The commission or local trustee shall accept public comments at the same meeting at which it votes to approve or disapprove a lease renewal, extension, amendment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf. A lease subject to this section shall be approved by the commission or the governing board of the local trustee.
(e)This section does not prohibit any of the following:
(1)The commission from issuing leases pursuant to Section 6243.
(2)Any activity undertaken to repair 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.
(3)Any activity undertaken to convey oil or natural gas produced from state waters.
(f)The commission may establish regulations for the implementation of this section.
(g)For purposes of this section, the following terms have the following meanings:
(1)Local trustee means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.
(2)Pacific Outer Continental Shelf means all submerged lands lying seaward of California, Hawaii, Oregon, and Washington and outside of the area of lands beneath navigable waters, as set forth by the federal Submerged Lands Act (43 U.S.C. Sec. 1331), and all of which appertain to the United States and are subject to its jurisdiction and control.
(3)State waters has the same meaning as defined in Section 36108.
SEC. 3.Section 6804 of the Public Resources Code is amended to read:6804.(a)A lease or permit issued under this chapter may be assigned, transferred, or sublet as to all or any part of the leased or permitted lands, and as to either a divided or undivided interest therein, or as to any separate and distinct zone or geological horizon or portion thereof, subject to approval by the commission, to any person, association of persons, or corporation, who, at the time of the proposed assignment, transfer, or sublease, possesses the qualifications provided in this chapter. Any assignment, transfer, or sublease shall take effect as of the first day of the month following the approval by the commission and filing with the commission of an executed counterpart thereof, together with any required bond and proof of the qualification, under this act and the rules and regulations of the commission, of the assignee, transferee, or sublessee to take or hold that lease, permit, or interest therein. Unless approved by the commission, no assignment, transfer, or sublease shall be of any effect. Upon approval of any assignment, transfer, or sublease, the assignee, transferee, or sublessee shall be bound by the terms of the lease or permit to the same extent as the assignor, transferor, or sublessor has been, and, except as provided in subdivision (c), shall continue to be, any conditions in the assignment, transfer, or sublease to the contrary notwithstanding. Any assignment or transfer of a separate portion of any lease or permit or of a separate and distinct zone or geological horizon, or a portion thereof, shall segregate the assigned, transferred, or subleased portion thereof from the retained portion thereof, and those segregated leases or permits shall continue in full force and effect for the primary term of the original lease or permit, but, in the case of any lease, for not less than two years after the date of discovery of oil or gas in paying quantities, or commercially valuable deposit of minerals, upon any segregated portion of the lands, zones, or horizons originally subject to that lease, and so long thereafter as oil or gas is produced in paying quantities. Assignments or transfers under this section may also be made with the approval of the commission of parts of leases that are in their extended term because of production, and the segregated lease of any undeveloped lands, zones, or horizons shall continue in full force and effect for two years and so long thereafter as oil, gas, or minerals are produced in paying quantities from the segregated lease lands, zones, or horizons.
(b)(1)In considering whether the approval of an assignment, transfer, or sublease of a lease or permit under subdivision (a) is in the best interest of the state under Section 6005 and will protect the states public trust resources, the commission shall consider, at a minimum, whether a proposed assignee is likely to comply with the terms of the lease or permit for the duration of both the primary term of the original lease or permit and any extended term of the lease because of production, as determined by all of the following factors:
(A)The proposed assignees experience with offshore or onshore oil or gas production or mineral extraction.
(B)Any financial or economic considerations that may affect a proposed assignee and its ability to comply with the terms of a lease or permit, including confirmation that the proposed assignee has submitted to the commission a bond in an amount no less than the estimated cost of decommissioning the assigned facilities pursuant to Section 6829.
(C)Any information concerning the proposed assignees compliance or noncompliance with other contractual obligations to the state or other government agency.
(D)Any record of noncompliance with any other laws or regulations.
(E)The proposed assignees history of accidents, including oil spills.
(F)Whether the proposed assignee has the capability and experience to protect the public trust resources and values of the state, as established in the lease.
(2)For purposes of this section, proposed assignee means the person or entity in whose name the lease or permit will be held after assignment, transfer, or sublease of a lease or permit, or any person or entity that makes managerial decisions for or exercises managerial control over the assignee.
(c)An assignment, transfer, or sublease pursuant to subdivision (a), or a memorandum of the assignment, transfer, or sublease, shall be recorded in the office of the county recorder of the county in which the leased or permitted lands are located.
(d)The assignor, transferor, or sublessor of a lease or permit under subdivision (a) shall remain liable for, and shall not be released or discharged from, obligations under the lease or permit, including requirements under state law to properly plug and abandon all wells, decommission all production facilities and related infrastructure, complete well site restoration and lease restoration, and remediate contamination at well and lease sites, except under either of the following circumstances:
(1)The commission determines that all lease or permit obligations have been fulfilled.
(2)The commission, in its sole discretion, approves the assignors, transferors, or sublessors request for a waiver of liability and release from the lease or permit obligations pursuant to this paragraph. The commission may approve a waiver and release under the following conditions:
(A)The assignor, transferor, or sublessor provides the commission both of the following:
(i)An estimate, by an independent third party approved by the commission, of the costs of fulfilling outstanding lease or permit obligations.
(ii)A security in at least the amount estimated under clause (i), plus an additional 20 percent of that amount, to account for the time value of money and potential cost overruns. The security may be cash, a letter of credit, or a bond. If the assignor, transferor, or sublessor is already maintaining a bond pursuant to Section 6829, the commission shall deduct the amount of the existing bond from the amount of a security necessary to comply with the requirements of this clause.
(B)The commission determines that the waiver and release is in the best interests of the state.
SEC. 4.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)The commission may enter into any lease for the extraction of oil or gas from state-owned tide and submerged lands in the California Coastal Sanctuary if the commission 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 interests of the state, except as provided in subdivision (b).
(b)The commission shall not enter into a lease pursuant to subdivision (a) in either of the following areas:
(1)Areas designated as California marine protected areas pursuant to the Marine Life Protection Act (Chapter 10.5 (commencing with Section 2850) of Division 3 of the Fish and Game Code) as of, or after, January 1, 2026.
(2)Areas designated as national marine sanctuaries under the National Marine Sanctuaries Act (16 U.S.C. 1431 et seq.) as of, or after, January 1, 2026.
SEC. 2.Section 6245 of the Public Resources Code is amended to read:6245.(a)Except as provided in subdivision (e), the commission or a local trustee shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters for the purpose of supporting Pacific Outer Continental Shelf leases issued after January 1, 2026, nor shall any leases and oil- and gas-related infrastructure located upon tidelands and submerged lands within state waters be used to support Pacific Outer Continental Shelf leases issued after January 1, 2026.
(b)(1)Upon receipt of an application for a lease renewal, extension, amendment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2026, the commission or local trustee shall provide notice of this application by including it as a separate informational item on the agenda of the commissions or local trustees next duly noticed public meeting. Summary information about the requested lease renewal, extension, amendment, or modification shall be included in the agenda summary.
(2)Notwithstanding the Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code), the commission or local trustee shall take no further action to approve the requested lease renewal, extension, amendment, or modification until 180 days after the notification required in paragraph (1).
(c)Before approving a lease renewal, extension, amendment, or modification for the operation of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2026, the commission or local trustee shall consider, at a minimum, the following:
(1)Whether the lease renewal, extension, amendment, or modification is necessary to protect the marine environment or to ensure human health and safety.
(2)Whether the lease renewal, extension, amendment, or modification provides a benefit to the state beyond additional lease revenues.
(3)Whether the lease renewal, extension, amendment, or modification will impact the volume of oil and gas that may be transported across state waters.
(4)Whether the lease renewal, extension, amendment, or modification may impact public trust resources and values.
(5)Whether the lease renewal, extension, amendment, or modification is for, or connected to, infrastructure that has experienced a reportable incident, such as an oil spill.
(6)Whether the lease renewal, extension, amendment, or modification is related to the use of well stimulation treatments, extended reach drilling and production, horizontal drilling and production, or other unconventional drilling and production techniques for resource extraction.
(7)Whether the operator has provided finalized certificates of financial responsibility obtained from the Office of Spill Prevention and Response and has provided financial assurances required for decommissioning pursuant to subdivision (d) of Section 6829 and other applicable local or state laws.
(d)(1)A lease renewal, extension, amendment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf, shall not be approved at the same duly noticed public meeting at which the lease renewal, extension, amendment, or modification is first presented as an informational item.
(2)The commission or local trustee shall accept public comments at the same meeting at which it votes to approve or disapprove a lease renewal, extension, amendment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf. A lease subject to this section shall be approved by the commission or the governing board of the local trustee.
(e)This section does not prohibit any of the following:
(1)The commission from issuing leases pursuant to Section 6243.
(2)Any activity undertaken to repair 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.
(3)Any activity undertaken to convey oil or natural gas produced from state waters.
(f)The commission may establish regulations for the implementation of this section.
(g)For purposes of this section, the following terms have the following meanings:
(1)Local trustee means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.
(2)Pacific Outer Continental Shelf means all submerged lands lying seaward of California, Hawaii, Oregon, and Washington and outside of the area of lands beneath navigable waters, as set forth by the federal Submerged Lands Act (43 U.S.C. Sec. 1331), and all of which appertain to the United States and are subject to its jurisdiction and control.
(3)State waters has the same meaning as defined in Section 36108.
SEC. 3.Section 6804 of the Public Resources Code is amended to read:6804.(a)A lease or permit issued under this chapter may be assigned, transferred, or sublet as to all or any part of the leased or permitted lands, and as to either a divided or undivided interest therein, or as to any separate and distinct zone or geological horizon or portion thereof, subject to approval by the commission, to any person, association of persons, or corporation, who, at the time of the proposed assignment, transfer, or sublease, possesses the qualifications provided in this chapter. Any assignment, transfer, or sublease shall take effect as of the first day of the month following the approval by the commission and filing with the commission of an executed counterpart thereof, together with any required bond and proof of the qualification, under this act and the rules and regulations of the commission, of the assignee, transferee, or sublessee to take or hold that lease, permit, or interest therein. Unless approved by the commission, no assignment, transfer, or sublease shall be of any effect. Upon approval of any assignment, transfer, or sublease, the assignee, transferee, or sublessee shall be bound by the terms of the lease or permit to the same extent as the assignor, transferor, or sublessor has been, and, except as provided in subdivision (c), shall continue to be, any conditions in the assignment, transfer, or sublease to the contrary notwithstanding. Any assignment or transfer of a separate portion of any lease or permit or of a separate and distinct zone or geological horizon, or a portion thereof, shall segregate the assigned, transferred, or subleased portion thereof from the retained portion thereof, and those segregated leases or permits shall continue in full force and effect for the primary term of the original lease or permit, but, in the case of any lease, for not less than two years after the date of discovery of oil or gas in paying quantities, or commercially valuable deposit of minerals, upon any segregated portion of the lands, zones, or horizons originally subject to that lease, and so long thereafter as oil or gas is produced in paying quantities. Assignments or transfers under this section may also be made with the approval of the commission of parts of leases that are in their extended term because of production, and the segregated lease of any undeveloped lands, zones, or horizons shall continue in full force and effect for two years and so long thereafter as oil, gas, or minerals are produced in paying quantities from the segregated lease lands, zones, or horizons.
(b)(1)In considering whether the approval of an assignment, transfer, or sublease of a lease or permit under subdivision (a) is in the best interest of the state under Section 6005 and will protect the states public trust resources, the commission shall consider, at a minimum, whether a proposed assignee is likely to comply with the terms of the lease or permit for the duration of both the primary term of the original lease or permit and any extended term of the lease because of production, as determined by all of the following factors:
(A)The proposed assignees experience with offshore or onshore oil or gas production or mineral extraction.
(B)Any financial or economic considerations that may affect a proposed assignee and its ability to comply with the terms of a lease or permit, including confirmation that the proposed assignee has submitted to the commission a bond in an amount no less than the estimated cost of decommissioning the assigned facilities pursuant to Section 6829.
(C)Any information concerning the proposed assignees compliance or noncompliance with other contractual obligations to the state or other government agency.
(D)Any record of noncompliance with any other laws or regulations.
(E)The proposed assignees history of accidents, including oil spills.
(F)Whether the proposed assignee has the capability and experience to protect the public trust resources and values of the state, as established in the lease.
(2)For purposes of this section, proposed assignee means the person or entity in whose name the lease or permit will be held after assignment, transfer, or sublease of a lease or permit, or any person or entity that makes managerial decisions for or exercises managerial control over the assignee.
(c)An assignment, transfer, or sublease pursuant to subdivision (a), or a memorandum of the assignment, transfer, or sublease, shall be recorded in the office of the county recorder of the county in which the leased or permitted lands are located.
(d)The assignor, transferor, or sublessor of a lease or permit under subdivision (a) shall remain liable for, and shall not be released or discharged from, obligations under the lease or permit, including requirements under state law to properly plug and abandon all wells, decommission all production facilities and related infrastructure, complete well site restoration and lease restoration, and remediate contamination at well and lease sites, except under either of the following circumstances:
(1)The commission determines that all lease or permit obligations have been fulfilled.
(2)The commission, in its sole discretion, approves the assignors, transferors, or sublessors request for a waiver of liability and release from the lease or permit obligations pursuant to this paragraph. The commission may approve a waiver and release under the following conditions:
(A)The assignor, transferor, or sublessor provides the commission both of the following:
(i)An estimate, by an independent third party approved by the commission, of the costs of fulfilling outstanding lease or permit obligations.
(ii)A security in at least the amount estimated under clause (i), plus an additional 20 percent of that amount, to account for the time value of money and potential cost overruns. The security may be cash, a letter of credit, or a bond. If the assignor, transferor, or sublessor is already maintaining a bond pursuant to Section 6829, the commission shall deduct the amount of the existing bond from the amount of a security necessary to comply with the requirements of this clause.
(B)The commission determines that the waiver and release is in the best interests of the state.
SEC. 4.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)The commission may enter into any lease for the extraction of oil or gas from state-owned tide and submerged lands in the California Coastal Sanctuary if the commission 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 interests of the state. state, except as provided in subdivision (b).
(b)The commission shall not enter into a lease pursuant to subdivision (a) in either of the following areas:
(1)Areas designated as California marine protected areas pursuant to the Marine Life Protection Act (Chapter 10.5 (commencing with Section 2850) of Division 3 of the Fish and Game Code) as of, or after, January 1, 2026.
(2)Areas designated as national marine sanctuaries under the National Marine Sanctuaries Act (16 U.S.C. 1431 et seq.) as of, or after, January 1, 2026.
SEC. 2.Section 6245 of the Public Resources Code is amended to read:6245.(a)Except as provided in subdivision (f), (e), the commission or a local trustee shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with for the purpose of supporting Pacific Outer Continental Shelf leases issued after January 1, 2018. 2026, nor shall any leases and oil- and gas-related infrastructure located upon tidelands and submerged lands within state waters be used to support Pacific Outer Continental Shelf leases issued after January 1, 2026.
(b)Except as provided in subdivision (f), leases and oil- and gas-related infrastructure located upon tidelands and submerged lands within state waters shall not be used to support Pacific Outer Continental Shelf leases issued after January 1, 2026. (c)(b)(1)Upon receipt of an application for a lease renewal, extension, amendment, assignment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, 2026, the commission or local trustee shall provide notice of this application by including it as a separate informational item on the agenda of the commissions or local trustees next duly noticed public meeting. Summary information about the requested lease renewal, extension, amendment, assignment, or modification shall be included in the agenda summary.
(2)Notwithstanding the Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code), the commission or local trustee shall take no further action to approve the requested lease renewal, extension, amendment, assignment, or modification until 180 days after the notification required in paragraph (1).
(d)(c)Before approving a lease renewal, extension, amendment, assignment, or modification for the operation of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, 2026, the commission or local trustee shall consider, at a minimum, the following:
(1)Whether the lease renewal, extension, amendment, assignment, or modification is necessary to protect the marine environment or to ensure human health and safety.
(2)Whether the lease renewal, extension, amendment, assignment, or modification provides a benefit to the state beyond additional lease revenues.
(3)Whether the lease renewal, extension, amendment, assignment, or modification will impact the volume of oil and gas that may be transported across state waters.
(4)Whether the lease renewal, extension, amendment, assignment, or modification may impact public trust resources and values.
(5)Whether the lease renewal, extension, amendment, assignment, or modification is for, or connected to, infrastructure that has experienced a reportable incident, such as an oil spill.
(6)Whether the lease renewal, extension, amendment, assignment, or modification is related to the use of well stimulation treatments, extended reach drilling and production, horizontal drilling and production, or other unconventional drilling and production techniques for resource extraction.
(7)Whether the operator has provided finalized certificates of financial responsibility obtained from the Office of Spill Prevention and Response and has provided financial assurances required for decommissioning pursuant to subdivision (d) of Section 6829 and other applicable local or state laws.
(e)(d)(1)A lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf, shall not be approved at the same properly duly noticed public meeting at which the lease renewal, extension, amendment, or modification is first presented. presented as an informational item.
(2)The commission or local trustee shall accept public comments at the same meeting at which it votes to approve or disapprove a lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf. A lease subject to this section shall be approved by the commission or the governing board of the local trustee.
(f)(e)This section does not prohibit any of the following:
(1)The commission from issuing leases pursuant to Section 6243.
(2)Any activity undertaken to repair 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.
(3)Any activity undertaken to convey oil or natural gas produced from state waters.
(g)(f)The commission may establish regulations for the implementation of this section.
(h)(g)For the purposes of this section, the following terms have the following meanings:
(1)Local trustee means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.
(2)Pacific Outer Continental Shelf means all submerged lands lying seaward of California, Hawaii, Oregon, and Washington and outside of the area of lands beneath navigable waters, as set forth by the federal Submerged Lands Act (43 U.S.C. Sec. 1331), and all of which appertain to the United States and are subject to its jurisdiction and control.
(3)State waters has the same meaning as defined in Section 36108.
SEC. 3.Section 6804 of the Public Resources Code is amended to read:6804.(a)A lease or permit issued under this chapter may be assigned, transferred, or sublet as to all or any part of the leased or permitted lands, and as to either a divided or undivided interest therein, or as to any separate and distinct zone or geological horizon or portion thereof, subject to approval by the commission, to any person, association of persons, or corporation, who, at the time of the proposed assignment, transfer, or sublease, possesses the qualifications provided in this chapter. Any assignment, transfer, or sublease shall take effect as of the first day of the month following the approval by the commission and filing with the commission of an executed counterpart thereof, together with any required bond and proof of the qualification, under this act and the rules and regulations of the commission, of the assignee, transferee, or sublessee to take or hold that lease, permit, or interest therein. Unless approved by the commission, no assignment, transfer, or sublease shall be of any effect. Upon approval of any assignment, transfer, or sublease, the assignee, transferee, or sublessee shall be bound by the terms of the lease or permit to the same extent as the assignor, transferor, or sublessor has been, and, except as provided in subdivision (c), shall continue to be, any conditions in the assignment, transfer, or sublease to the contrary notwithstanding. Any assignment or transfer of a separate portion of any lease or permit or of a separate and distinct zone or geological horizon, or a portion thereof, shall segregate the assigned, transferred, or subleased portion thereof from the retained portion thereof, and those segregated leases or permits shall continue in full force and effect for the primary term of the original lease or permit, but, in the case of any lease, for not less than two years after the date of discovery of oil or gas in paying quantities, or commercially valuable deposit of minerals, upon any segregated portion of the lands, zones, or horizons originally subject to that lease, and so long thereafter as oil or gas is produced in paying quantities. Assignments or transfers under this section may also be made with the approval of the commission of parts of leases that are in their extended term because of production, and the segregated lease of any undeveloped lands, zones, or horizons shall continue in full force and effect for two years and so long thereafter as oil, gas, or minerals are produced in paying quantities from the segregated lease lands, zones, or horizons.
(b)(1)In considering whether the approval of an assignment, transfer, or sublease of a lease or permit under subdivision (a) is in the best interest of the state under Section 6005, 6005 and will protect the states public trust resources, the commission may consider shall consider, at a minimum, whether a proposed assignee is likely to comply with the terms of the lease or permit for the duration of both the primary term of the original lease or permit and any extended term of the lease because of production, as determined by all of the following factors:
(A)The proposed assignees experience with offshore or onshore oil or gas production or mineral extraction, as applicable. extraction.
(B)Any financial or economic considerations that may affect a proposed assignee and its ability to comply with the terms of a lease or permit. permit, including confirmation that the proposed assignee has submitted to the commission a bond in an amount no less than the estimated cost of decommissioning the assigned facilities pursuant to Section 6829.
(C)Any information concerning the proposed assignees compliance or noncompliance with other contractual obligations to the state or other government agency.
(D)Any record of noncompliance with any other laws or regulations.
(E)The proposed assignees history of accidents, including oil spills.
(F)Whether the proposed assignee has the capability and experience to protect the public trust resources and values of the state, as established in the lease.
(2)For purposes of this section, proposed assignee means the person or entity in whose name the lease or permit will be held after assignment, transfer, or sublease of a lease or permit, or any person or entity that makes managerial decisions for or exercises managerial control over the assignee.
(c)An assignment, transfer, or sublease pursuant to subdivision (a), or a memorandum of the assignment, transfer, or sublease, shall be recorded in the office of the county recorder of the county in which the leased or permitted lands are located.
(d)The assignor, transferor, or sublessor of a lease or permit under subdivision (a) shall remain liable for, and shall not be released or discharged from, obligations under the lease or permit, including requirements under state law to properly plug and abandon all wells, decommission all production facilities and related infrastructure, complete well site restoration and lease restoration, and remediate contamination at well and lease sites, except under either of the following circumstances:
(1)The commission determines that all lease or permit obligations have been fulfilled.
(2)The commission, in its sole discretion, approves the assignors, transferors, or sublessors request for a waiver of liability and release from the lease or permit obligations pursuant to this paragraph. The commission may approve a waiver and release under the following conditions:
(A)The assignor, transferor, or sublessor provides the commission both of the following:
(i)An estimate, by an independent third party approved by the commission, of the costs of fulfilling outstanding lease or permit obligations.
(ii)A security in at least the amount estimated under clause (i), plus an additional 20 percent of that amount, to account for the time value of money and potential cost overruns. The security may be cash, a letter of credit, or a bond. If the assignor, transferor, or sublessor is already maintaining a bond pursuant to Section 6829, the commission shall deduct the amount of the existing bond from the amount of a security necessary to comply with the requirements of this clause.
(B)The commission determines that the waiver and release is in the best interests of the state.
SEC. 4.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)Except as provided in subdivision (e), (f), the commission or a local trustee shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018.
(b)Except as provided in subdivision (f), leases and oil- and gas-related infrastructure located upon tidelands and submerged lands within state waters shall not be used to support Pacific Outer Continental Shelf leases issued after January 1, 2026.
(b)(c)(1)Upon receipt of an application for a lease renewal, extension, amendment, assignment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, the commission or local trustee shall provide notice of this application by including it as a separate informational item on the agenda of the commissions or local trustees next duly noticed public meeting. Summary information about the requested lease renewal, extension, amendment, assignment, or modification shall be included in the agenda summary.
(2)Notwithstanding the Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code), the commission or local trustee shall take no further action to approve the requested lease renewal, extension, amendment, assignment, or modification until 180 days after the notification required in paragraph (1).
(c)(d)Before approving a lease renewal, extension, amendment, assignment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, the commission or local trustee shall consider, at a minimum, the following:
(1)Whether the lease renewal, extension, amendment, assignment, or modification is necessary to protect the marine environment or to ensure human health and safety.
(2)Whether the lease renewal, extension, amendment, assignment, or modification provides a benefit to the state beyond additional lease revenues.
(3)Whether the lease renewal, extension, amendment, assignment, or modification will impact the volume of oil and gas that may be transported across state waters.
(4)Whether the lease renewal, extension, amendment, assignment, or modification may impact public trust resources and values.
(5)Whether the lease renewal, extension, amendment, assignment, or modification is for, or connected to, infrastructure that has experienced a reportable incident, such as an oil spill.
(6)Whether the lease renewal, extension, amendment, assignment, or modification is related to the use of well stimulation treatments, extended reach drilling and production, horizontal drilling and production, or other unconventional drilling and production techniques for resource extraction.
(7)Whether the operator has provided finalized certificates of financial responsibility obtained from the Office of Spill Prevention and Response and has provided financial assurances required for decommissioning pursuant to subdivision (d) of Section 6829 and other applicable local or state laws.
(d)(e)(1)A lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf, shall not be approved at the same properly noticed public meeting at which the lease renewal, extension, amendment, or modification is first presented.
(2)The commission or local trustee shall accept public comments at the same meeting at which it votes to approve or disapprove any a lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf. A lease subject to this section shall be approved by the commission or the governing board of the local trustee.
(e)(f)This section does not prohibit any of the following:
(1)The commission from issuing leases pursuant to Section 6243 or 6244. 6243.
(2)Any activity undertaken to repair 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.
(3)Any activity undertaken to convey oil or natural gas produced from state waters.
(f)(g)The commission may establish regulations for the implementation of this section.
(g)(h)For the purposes of this section, the following terms have the following meanings:
(1)Local trustee means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.
(2)Pacific Outer Continental Shelf means all submerged lands lying seaward of California, Hawaii, Oregon, and Washington and outside of the area of lands beneath navigable waters, as set forth by the federal Submerged Lands Act (43 U.S.C. Sec. 1331), and all of which appertain to the United States and are subject to its jurisdiction and control.
(3)State waters has the same meaning as defined in Section 36108.
SEC. 2.SEC. 3.Section 6804 of the Public Resources Code is amended to read:6804.(a)A lease or permit issued under this chapter may be assigned, transferred, or sublet as to all or any part of the leased or permitted lands, and as to either a divided or undivided interest therein, or as to any separate and distinct zone or geological horizon or portion thereof, subject to approval by the commission, to any person, association of persons, or corporation, who, at the time of the proposed assignment, transfer, or sublease, possesses the qualifications provided in this chapter. Any assignment, transfer, or sublease shall take effect as of the first day of the month following the approval by the commission and filing with the commission of an executed counterpart thereof, together with any required bond and proof of the qualification, under this act and the rules and regulations of the commission, of the assignee, transferee, or sublessee to take or hold that lease, permit, or interest therein. Unless approved by the commission, no assignment, transfer, or sublease shall be of any effect. Upon approval of any assignment, transfer, or sublease, the assignee, transferee, or sublessee shall be bound by the terms of the lease or permit to the same extent as the assignor, transferor, or sublessor has been, and, except as provided in subdivision (c), shall continue to be, any conditions in the assignment, transfer, or sublease to the contrary notwithstanding. Any assignment or transfer of a separate portion of any lease or permit or of a separate and distinct zone or geological horizon, or a portion thereof, shall segregate the assigned, transferred, or subleased portion thereof from the retained portion thereof, and those segregated leases or permits shall continue in full force and effect for the primary term of the original lease or permit, but, in the case of any lease, for not less than two years after the date of discovery of oil or gas in paying quantities, or commercially valuable deposit of minerals, upon any segregated portion of the lands, zones, or horizons originally subject to that lease, and so long thereafter as oil or gas is produced in paying quantities. Assignments or transfers under this section may also be made with the approval of the commission of parts of leases that are in their extended term because of production, and the segregated lease of any undeveloped lands, zones, or horizons shall continue in full force and effect for two years and so long thereafter as oil, gas, or minerals are produced in paying quantities from the segregated lease lands, zones, or horizons.
(b)(1)In considering whether the approval of an assignment, transfer, or sublease of a lease or permit under subdivision (a) is in the best interest of the state under Section 6005, the commission may consider whether a proposed assignee is likely to comply with the terms of the lease or permit for the duration of both the primary term of the original lease or permit and any extended term of the lease because of production, as determined by all of the following factors:
(A)The proposed assignees experience with offshore or onshore oil or gas production or mineral extraction, as applicable.
(B)Any financial or economic considerations that may affect a proposed assignee and its ability to comply with the terms of a lease or permit.
(C)Any information concerning the proposed assignees compliance or noncompliance with other contractual obligations to the state or other government agency.
(D)Any record of noncompliance with any other laws or regulations.
(2)For purposes of this section, proposed assignee means the person or entity in whose name the lease or permit will be held after assignment, transfer, or sublease of a lease or permit, or any person or entity that makes managerial decisions for or exercises managerial control over the assignee.
(c)An assignment, transfer, or sublease pursuant to subdivision (a), or a memorandum of the assignment, transfer, or sublease, shall be recorded in the office of the county recorder of the county in which the leased or permitted lands are located.
(d)The assignor, transferor, or sublessor of a lease or permit under subdivision (a) shall remain liable for, and shall not be released or discharged from, obligations under the lease or permit, including requirements under state law to properly plug and abandon all wells, decommission all production facilities and related infrastructure, complete well site restoration and lease restoration, and remediate contamination at well and lease sites, except under either of the following circumstances:
(1)The commission determines that all lease or permit obligations have been fulfilled.
(2)The commission, in its sole discretion, approves the assignors, transferors, or sublessors request for a waiver of liability and release from the lease or permit obligations pursuant to this paragraph. The commission may approve a waiver and release under the following conditions:
(A)The assignor, transferor, or sublessor provides the commission both of the following:
(i)An estimate, by an independent third party approved by the commission, of the costs of fulfilling outstanding lease or permit obligations.
(ii)A security in at least the amount estimated under clause (i), plus an additional 20 percent of that amount, to account for the time value of money and potential cost overruns. The security may be cash, a letter of credit, or a bond. If the assignor, transferor, or sublessor is already maintaining a bond pursuant to Section 6829, the commission shall deduct the amount of the existing bond from the amount of a security necessary to comply with the requirements of this clause.
(B)The commission determines that the waiver and release is in the best interests of the state.
SEC. 3.Section 30262 of the Public Resources Code is amended to read:30262.(a)New or expanded oil and gas development shall not be considered a coastal-dependent industrial facility for the purposes of Section 30260, and may be permitted only if found to be consistent with all applicable provisions of this division and if all of the following conditions are met:(1)The development is performed safely and consistent with the geologic conditions of the well site.(2)Activities related to that development are consolidated, to the maximum extent feasible and legally permissible, unless consolidation will have adverse environmental consequences and will not significantly reduce the number of producing wells, support facilities, or sites required to produce the reservoir economically and with minimal environmental impacts.(3)The development will not cause or contribute to subsidence hazards unless it is determined that adequate measures will be undertaken to prevent damage from that subsidence.(4)All oilfield brines are reinjected into oil-producing zones unless the Geologic Energy Management Division of the Department of Conservation determines to do so would adversely affect production of the reservoirs and unless injection into other subsurface zones will reduce environmental risks. Exceptions to reinjections will be granted consistent with the California Ocean Plan of the State Water Resources Control Board and where adequate provision is made for the elimination of petroleum odors and water quality problems.(5)(A)All oil produced offshore California shall be transported onshore by pipeline only. The pipelines used to transport this oil shall utilize the best achievable technology to ensure maximum protection of public health and safety and of the integrity and productivity of terrestrial and marine ecosystems.(B)Once oil produced offshore California is onshore, it shall be transported to processing and refining facilities by pipeline that uses the best available technology pursuant to Section 51013.1 of the Government Code.(C)The following guidelines shall be used when applying subparagraphs (A) and (B):(i)Best achievable technology, means the technology that provides the greatest degree of protection taking into consideration both of the following:(I)Processes that are being developed, or could feasibly be developed, anywhere in the world, given overall reasonable expenditures on research and development.(II)Processes that are currently in use anywhere in the world. This clause is not intended to create any conflicting or duplicative regulation of pipelines, including those governing the transportation of oil produced from onshore reserves.(ii)Oil refers to crude oil before it is refined into products, including gasoline, bunker fuel, lubricants, and asphalt. Crude oil that is upgraded in quality through residue reduction or other means shall be transported as provided in subparagraphs (A) and (B).(iii)Subparagraphs (A) and (B) shall apply only to new or expanded oil extraction operations. New extraction operations means production of offshore oil from leases that did not exist or had never produced oil, as of January 1, 2003, or from platforms, drilling islands, subsea completions, or onshore drilling sites, that did not exist as of January 1, 2003. Expanded oil extraction means an increase in the geographic extent of existing leases or units, including lease boundary adjustments, an increase in the number of well heads, reactivation of a facility idled, inactive, or out of service for more than five years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies, on or after January 1, 2003.(6)If a state of emergency is declared by the Governor for an emergency that disrupts the transportation of oil by pipeline, oil may be transported by a waterborne vessel, if authorized by permit, in the same manner as required by emergency permits that are issued pursuant to Section 30624.(7)In addition to all other measures that will maximize the protection of marine habitat and environmental quality, when an offshore well is abandoned, the best achievable technology shall be used.(b)(1)Repair and maintenance of an existing oil and gas facility may be permitted in accordance with Section 30260 only if it does not result in expansion of capacity of the oil and gas facility, and if all applicable conditions of subdivision (a) are met.(2)Repair, reactivation, and maintenance of an oil and gas facility, including an oil pipeline, that has been idled, inactive, or out of service for five years or more shall be considered a new or expanded development requiring a new coastal development permit consistent with this section.(3)Development associated with the repair, reactivation, or maintenance of an oil pipeline that has been idled, inactive, or out of service for five years or more requires a new coastal development permit consistent with this section.(4)The commission or local government with a certified local coastal program shall review and approve, modify, condition, or deny the permit based on the requirements of this section.(c)Where appropriate, monitoring programs to record land surface and near-shore ocean floor movements shall be initiated in locations of new large-scale fluid extraction on land or near shore before operations begin and shall continue until surface conditions have stabilized. Costs of monitoring and mitigation programs shall be borne by liquid and gas extraction operators.(d)This section does not affect the activities of any state agency that is responsible for regulating the extraction, production, or transport of oil and gas.SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.SEC. 4.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)Except as provided in subdivision (e), the commission or a local trustee shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018.
(b)(1)Upon receipt of an application for a lease renewal, extension, amendment, assignment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, the commission or local trustee shall provide notice of this application by including it as a separate informational item on the agenda of the commissions or local trustees next duly noticed public meeting. Summary information about the requested lease renewal, extension, amendment, assignment, or modification shall be included in the agenda summary.
(2)Notwithstanding the Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code), the commission or local trustee shall take no further action to approve the requested lease renewal, extension, amendment, assignment, or modification until 180 days after the notification required in paragraph (1).
(c)Before approving a lease renewal, extension, amendment, assignment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, the commission or local trustee shall consider, at a minimum, the following:
(1)Whether the lease renewal, extension, amendment, assignment, or modification is necessary to protect the marine environment or to ensure human health and safety.
(2)Whether the lease renewal, extension, amendment, assignment, or modification provides a benefit to the state beyond additional lease revenues.
(3)Whether the lease renewal, extension, amendment, assignment, or modification will impact the volume of oil and gas that may be transported across state waters.
(4)Whether the lease renewal, extension, amendment, assignment, or modification may impact public trust resources and values.
(5)Whether the lease renewal, extension, amendment, assignment, or modification is for, or connected to, infrastructure that has experienced a reportable incident, such as an oil spill.
(6)Whether the lease renewal, extension, amendment, assignment, or modification is related to the use of well stimulation treatments, extended reach drilling and production, horizontal drilling and production, or other unconventional drilling and production techniques for resource extraction.
(7)Whether the operator has provided finalized certificates of financial responsibility obtained from the Office of Spill Prevention and Response and has provided financial assurances required for decommissioning pursuant to subdivision (d) of Section 6829 and other applicable local or state laws.
(d)(1)A lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf, shall not be approved at the same properly noticed public meeting at which the lease renewal, extension, amendment, or modification is first presented.
(2)The commission or local trustee shall accept public comments at the same meeting at which it votes to approve or disapprove any lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf. A lease subject to this section shall be approved by the commission or the governing board of the local trustee.
(e)This section does not prohibit any of the following:
(1)The commission from issuing leases pursuant to Section 6243 or 6244.
(2)Any activity undertaken to repair 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.
(3)Any activity undertaken to convey oil or natural gas produced from state waters.
(f)The commission may establish regulations for the implementation of this section.
(g)For the purposes of this section, the following terms have the following meanings:
(1)Local trustee means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.
(2)Pacific Outer Continental Shelf means all submerged lands lying seaward of California, Hawaii, Oregon, and Washington and outside of the area of lands beneath navigable waters, as set forth by the federal Submerged Lands Act (43 U.S.C. Sec. 1331), and all of which appertain to the United States and are subject to its jurisdiction and control.
(3)State waters has the same meaning as defined in Section 36108.
SEC. 2.Section 6804 of the Public Resources Code is amended to read:6804.(a)A lease or permit issued under this chapter may be assigned, transferred, or sublet as to all or any part of the leased or permitted lands, and as to either a divided or undivided interest therein, or as to any separate and distinct zone or geological horizon or portion thereof, subject to approval by the commission, to any person, association of persons, or corporation, who, at the time of the proposed assignment, transfer, or sublease, possesses the qualifications provided in this chapter. Any assignment, transfer, or sublease shall take effect as of the first day of the month following the approval by the commission and filing with the commission of an executed counterpart thereof, together with any required bond and proof of the qualification, under this act and the rules and regulations of the commission, of the assignee, transferee, or sublessee to take or hold that lease, permit, or interest therein. Unless approved by the commission, no assignment, transfer, or sublease shall be of any effect. Upon approval of any assignment, transfer, or sublease, the assignee, transferee, or sublessee shall be bound by the terms of the lease or permit to the same extent as the assignor, transferor, or sublessor has been, and, except as provided in subdivision (c), shall continue to be, any conditions in the assignment, transfer, or sublease to the contrary notwithstanding. Any assignment or transfer of a separate portion of any lease or permit or of a separate and distinct zone or geological horizon, or a portion thereof, shall segregate the assigned, transferred, or subleased portion thereof from the retained portion thereof, and those segregated leases or permits shall continue in full force and effect for the primary term of the original lease or permit, but, in the case of any lease, for not less than two years after the date of discovery of oil or gas in paying quantities, or commercially valuable deposit of minerals, upon any segregated portion of the lands, zones, or horizons originally subject to that lease, and so long thereafter as oil or gas is produced in paying quantities. Assignments or transfers under this section may also be made with the approval of the commission of parts of leases that are in their extended term because of production, and the segregated lease of any undeveloped lands, zones, or horizons shall continue in full force and effect for two years and so long thereafter as oil, gas, or minerals are produced in paying quantities from the segregated lease lands, zones, or horizons.
(b)(1)In considering whether the approval of an assignment, transfer, or sublease of a lease or permit under subdivision (a) is in the best interest of the state under Section 6005, the commission may consider whether a proposed assignee is likely to comply with the terms of the lease or permit for the duration of both the primary term of the original lease or permit and any extended term of the lease because of production, as determined by all of the following factors:
(A)The proposed assignees experience with offshore or onshore oil or gas production or mineral extraction, as applicable.
(B)Any financial or economic considerations that may affect a proposed assignee and its ability to comply with the terms of a lease or permit.
(C)Any information concerning the proposed assignees compliance or noncompliance with other contractual obligations to the state or other government agency.
(D)Any record of noncompliance with any other laws or regulations.
(2)For purposes of this section, proposed assignee means the person or entity in whose name the lease or permit will be held after assignment, transfer, or sublease of a lease or permit, or any person or entity that makes managerial decisions for or exercises managerial control over the assignee.
(c)An assignment, transfer, or sublease pursuant to subdivision (a), or a memorandum of the assignment, transfer, or sublease, shall be recorded in the office of the county recorder of the county in which the leased or permitted lands are located.
(d)The assignor, transferor, or sublessor of a lease or permit under subdivision (a) shall remain liable for, and shall not be released or discharged from, obligations under the lease or permit, including requirements under state law to properly plug and abandon all wells, decommission all production facilities and related infrastructure, complete well site restoration and lease restoration, and remediate contamination at well and lease sites, except under either of the following circumstances:
(1)The commission determines that all lease or permit obligations have been fulfilled.
(2)The commission, in its sole discretion, approves the assignors, transferors, or sublessors request for a waiver of liability and release from the lease or permit obligations pursuant to this paragraph. The commission may approve a waiver and release under the following conditions:
(A)The assignor, transferor, or sublessor provides the commission both of the following:
(i)An estimate, by an independent third party approved by the commission, of the costs of fulfilling outstanding lease or permit obligations.
(ii)A security in at least the amount estimated under clause (i), plus an additional 20 percent of that amount, to account for the time value of money and potential cost overruns. The security may be cash, a letter of credit, or a bond. If the assignor, transferor, or sublessor is already maintaining a bond pursuant to Section 6829, the commission shall deduct the amount of the existing bond from the amount of a security necessary to comply with the requirements of this clause.
(B)The commission determines that the waiver and release is in the best interests of the state.
SEC. 3.Section 30262 of the Public Resources Code is amended to read:30262.(a)New or expanded oil and gas development shall not be considered a coastal-dependent industrial facility for the purposes of Section 30260, and may be permitted only if found to be consistent with all applicable provisions of this division and if all of the following conditions are met:
(1)The development is performed safely and consistent with the geologic conditions of the well site.
(2)Activities related to that development are consolidated, to the maximum extent feasible and legally permissible, unless consolidation will have adverse environmental consequences and will not significantly reduce the number of producing wells, support facilities, or sites required to produce the reservoir economically and with minimal environmental impacts.
(3)The development will not cause or contribute to subsidence hazards unless it is determined that adequate measures will be undertaken to prevent damage from that subsidence.
(4)All oilfield brines are reinjected into oil-producing zones unless the Geologic Energy Management Division of the Department of Conservation determines to do so would adversely affect production of the reservoirs and unless injection into other subsurface zones will reduce environmental risks. Exceptions to reinjections will be granted consistent with the California Ocean Plan of the State Water Resources Control Board and where adequate provision is made for the elimination of petroleum odors and water quality problems.
(5)(A)All oil produced offshore California shall be transported onshore by pipeline only. The pipelines used to transport this oil shall utilize the best achievable technology to ensure maximum protection of public health and safety and of the integrity and productivity of terrestrial and marine ecosystems.
(B)Once oil produced offshore California is onshore, it shall be transported to processing and refining facilities by pipeline that uses the best available technology pursuant to Section 51013.1 of the Government Code.
(C)The following guidelines shall be used when applying subparagraphs (A) and (B):
(i)Best achievable technology, means the technology that provides the greatest degree of protection taking into consideration both of the following:
(I)Processes that are being developed, or could feasibly be developed, anywhere in the world, given overall reasonable expenditures on research and development.
(II)Processes that are currently in use anywhere in the world. This clause is not intended to create any conflicting or duplicative regulation of pipelines, including those governing the transportation of oil produced from onshore reserves.
(ii)Oil refers to crude oil before it is refined into products, including gasoline, bunker fuel, lubricants, and asphalt. Crude oil that is upgraded in quality through residue reduction or other means shall be transported as provided in subparagraphs (A) and (B).
(iii)Subparagraphs (A) and (B) shall apply only to new or expanded oil extraction operations. New extraction operations means production of offshore oil from leases that did not exist or had never produced oil, as of January 1, 2003, or from platforms, drilling islands, subsea completions, or onshore drilling sites, that did not exist as of January 1, 2003. Expanded oil extraction means an increase in the geographic extent of existing leases or units, including lease boundary adjustments, an increase in the number of well heads, reactivation of a facility idled, inactive, or out of service for more than three five years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies, on or after January 1, 2003.
(6)If a state of emergency is declared by the Governor for an emergency that disrupts the transportation of oil by pipeline, oil may be transported by a waterborne vessel, if authorized by permit, in the same manner as required by emergency permits that are issued pursuant to Section 30624.
(7)In addition to all other measures that will maximize the protection of marine habitat and environmental quality, when an offshore well is abandoned, the best achievable technology shall be used.
(b)(1)Repair and maintenance of an existing oil and gas facility may be permitted in accordance with Section 30260 only if it does not result in expansion of capacity of the oil and gas facility, and if all applicable conditions of subdivision (a) are met.
(2)Repair, reactivation, and maintenance of an oil and gas facility facility, including an oil pipeline, that has been idled, inactive, or out of service for five years or more shall be considered a new or expanded development requiring a new coastal development permit consistent with this section.
(3)Development for associated with the repair, reactivation, or maintenance of an oil pipeline that has been idled, inactive, or out of service for five years or more requires a new coastal development permit consistent with this section.
(4)The commission or local government with a certified local coastal program shall review and approve, modify, condition, or deny the permit based on the requirements of this section.
(c)Where appropriate, monitoring programs to record land surface and near-shore ocean floor movements shall be initiated in locations of new large-scale fluid extraction on land or near shore before operations begin and shall continue until surface conditions have stabilized. Costs of monitoring and mitigation programs shall be borne by liquid and gas extraction operators.
(d)This section does not affect the activities of any state agency that is responsible for regulating the extraction, production, or transport of oil and gas.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)Except as provided in subdivision (e), the commission or a local trustee shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018.
(b)(1)Upon receipt of an application for a lease renewal, extension, amendment, assignment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases, leases issued after January 1, 2018, the commission or local trustee shall provide notice of this application by including it as a separate informational item on the agenda of the commissions or local trustees next duly noticed public meeting. Summary information about the requested lease renewal, extension, amendment, assignment, or modification shall be included in the agenda summary.
(2)Notwithstanding the Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code), the commission or local trustee shall take no further action to approve the requested lease renewal, extension, amendment, assignment, or modification until 180 days after the notification required in paragraph (1).
(c)Before approving a lease renewal, extension, amendment, assignment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases, leases issued after January 1, 2018, the commission or local trustee shall consider, at a minimum, the following:
(1)Whether the lease renewal, extension, amendment, assignment, or modification is necessary to protect the marine environment or to ensure human health and safety.
(2)Whether the lease renewal, extension, amendment, assignment, or modification provides a benefit to the state beyond additional lease revenues.
(3)Whether the lease renewal, extension, amendment, assignment, or modification will impact the volume of oil and gas that may be transported across state waters.
(4)Whether the lease renewal, extension, amendment, assignment, or modification may impact public trust resources and values.
(5)Whether the lease renewal, extension, amendment, assignment, or modification is for, or connected to, infrastructure that has experienced a reportable incident, such as an oil spill.
(6)Whether the lease renewal, extension, amendment, assignment, or modification is related to the use of well stimulation treatments, extended reach drilling and production, horizontal drilling and production, or other unconventional drilling and production techniques for resource extraction.
(7)Whether the operator has provided finalized certificates of financial responsibility obtained from the Office of Spill Prevention and Response and has provided financial assurances required for decommissioning pursuant to subdivision (d) of Section 6829 and other applicable local or state laws.
(d)(1)A lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf, shall not be approved at the same properly noticed public meeting at which the lease renewal, extension, amendment, or modification is first presented.
(2)The commission or local trustee shall accept public comments at the same meeting at which it votes to approve or disapprove any lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf. A lease subject to this section shall be approved by the commission or the governing board of the local trustee.
(e)This section does not prohibit any of the following:
(1)The commission from issuing leases pursuant to Section 6243 or 6244.
(2)Any activity undertaken to repair 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.
(3)Any activity undertaken to convey oil or natural gas produced from state waters.
(f)The commission may establish regulations for the implementation of this section.
(g)For the purposes of this section, the following terms have the following meanings:
(1)Local trustee means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.
(2)Pacific Outer Continental Shelf means all submerged lands lying seaward of California, Hawaii, Oregon, and Washington and outside of the area of lands beneath navigable waters, as set forth by the federal Submerged Lands Act (43 U.S.C. Sec. 1331), and all of which appertain to the United States and are subject to its jurisdiction and control.
(3)State waters has the same meaning as defined in Section 36108.
SEC. 2.Section 6804 of the Public Resources Code is amended to read:6804.(a)A lease or permit issued under this chapter may be assigned, transferred, or sublet as to all or any part of the leased or permitted lands, and as to either a divided or undivided interest therein, or as to any separate and distinct zone or geological horizon or portion thereof, subject to approval by the commission, to any person, association of persons, or corporation, who, at the time of the proposed assignment, transfer, or sublease, possesses the qualifications provided in this chapter. Any assignment, transfer, or sublease shall take effect as of the first day of the month following the approval by the commission and filing with the commission of an executed counterpart thereof, together with any required bond and proof of the qualification, under this act and the rules and regulations of the commission, of the assignee, transferee, or sublessee to take or hold that lease, permit, or interest therein. Unless approved by the commission, no assignment, transfer, or sublease shall be of any effect. Upon approval of any assignment, transfer, or sublease, the assignee, transferee, or sublessee shall be bound by the terms of the lease or permit to the same extent as the assignor, transferor, or sublessor has been, and, except as provided in subdivision (c), shall continue to be, any conditions in the assignment, transfer, or sublease to the contrary notwithstanding. Any assignment or transfer of a separate portion of any lease or permit or of a separate and distinct zone or geological horizon, or a portion thereof, shall segregate the assigned, transferred, or subleased portion thereof from the retained portion thereof, and those segregated leases or permits shall continue in full force and effect for the primary term of the original lease or permit, but, in the case of any lease, for not less than two years after the date of discovery of oil or gas in paying quantities, or commercially valuable deposit of minerals, upon any segregated portion of the lands, zones, or horizons originally subject to that lease, and so long thereafter as oil or gas is produced in paying quantities. Assignments or transfers under this section may also be made with the approval of the commission of parts of leases that are in their extended term because of production, and the segregated lease of any undeveloped lands, zones, or horizons shall continue in full force and effect for two years and so long thereafter as oil, gas, or minerals are produced in paying quantities from the segregated lease lands, zones, or horizons.
(b)(1)In considering whether the approval of an assignment, transfer, or sublease of a lease or permit under subdivision (a) is in the best interest of the state under Section 6005, the commission may consider whether a proposed assignee is likely to comply with the terms of the lease or permit for the duration of both the primary term of the original lease or permit and any extended term of the lease because of production, as determined by all of the following factors:
(A)The proposed assignees experience with offshore or onshore oil or gas production or mineral extraction, as applicable.
(B)Any financial or economic considerations that may affect a proposed assignee and its ability to comply with the terms of a lease or permit.
(C)Any information concerning the proposed assignees compliance or noncompliance with other contractual obligations to the state or other government agency.
(D)Any record of noncompliance with any other laws or regulations.
(2)For purposes of this section, proposed assignee means the person or entity in whose name the lease or permit will be held after assignment, transfer, or sublease of a lease or permit, or any person or entity that makes managerial decisions for or exercises managerial control over the assignee.
(c)An assignment, transfer, or sublease pursuant to subdivision (a), or a memorandum of the assignment, transfer, or sublease, shall be recorded in the office of the county recorder of the county in which the leased or permitted lands are located.
(d)The assignor, transferor, or sublessor of a lease or permit under subdivision (a) shall remain liable for, and shall not be released or discharged from, obligations under the lease or permit, including requirements under state law to properly plug and abandon all wells, decommission all production facilities and related infrastructure, complete well site restoration and lease restoration, and remediate contamination at well and lease sites, except under either of the following circumstances:
(1)The commission determines that all lease or permit obligations have been fulfilled.
(2)The commission, in its sole discretion, approves the assignors, transferors, or sublessors request for a waiver of liability and release from the lease or permit obligations pursuant to this paragraph. The commission may approve a waiver and release under the following conditions:
(A)The assignor, transferor, or sublessor provides the commission both of the following:
(i)An estimate, by an independent third party approved by the commission, of the costs of fulfilling outstanding lease or permit obligations.
(ii)A security in at least the amount estimated under clause (i), plus an additional 20 percent of that amount, to account for the time value of money and potential cost overruns. The security may be cash, a letter of credit, or a bond. If the assignor, transferor, or sublessor is already maintaining a bond pursuant to Section 6829, the commission shall deduct the amount of the existing bond from the amount of a security necessary to comply with the requirements of this clause.
(B)The commission determines that the waiver and release is in the best interests of the state.
SEC. 3.Section 30262 of the Public Resources Code is amended to read:30262.(a)New or expanded oil and gas development shall not be considered a coastal-dependent industrial facility for the purposes of Section 30260, and may be permitted only if found to be consistent with all applicable provisions of this division and if all of the following conditions are met:
(1)The development is performed safely and consistent with the geologic conditions of the well site.
(2)Activities related to that development are consolidated, to the maximum extent feasible and legally permissible, unless consolidation will have adverse environmental consequences and will not significantly reduce the number of producing wells, support facilities, or sites required to produce the reservoir economically and with minimal environmental impacts.
(3)The development will not cause or contribute to subsidence hazards unless it is determined that adequate measures will be undertaken to prevent damage from that subsidence.
(4)All oilfield brines are reinjected into oil-producing zones unless the Geologic Energy Management Division of the Department of Conservation determines to do so would adversely affect production of the reservoirs and unless injection into other subsurface zones will reduce environmental risks. Exceptions to reinjections will be granted consistent with the California Ocean Plan of the State Water Resources Control Board and where adequate provision is made for the elimination of petroleum odors and water quality problems.
(5)(A)All oil produced offshore California shall be transported onshore by pipeline only. The pipelines used to transport this oil shall utilize the best achievable technology to ensure maximum protection of public health and safety and of the integrity and productivity of terrestrial and marine ecosystems.
(B)Once oil produced offshore California is onshore, it shall be transported to processing and refining facilities by pipeline that uses the best available technology pursuant to Section 51013.1 of the Government Code.
(C)The following guidelines shall be used when applying subparagraphs (A) and (B):
(i)Best achievable technology, means the technology that provides the greatest degree of protection taking into consideration both of the following:
(I)Processes that are being developed, or could feasibly be developed, anywhere in the world, given overall reasonable expenditures on research and development.
(II)Processes that are currently in use anywhere in the world. This clause is not intended to create any conflicting or duplicative regulation of pipelines, including those governing the transportation of oil produced from onshore reserves.
(ii)Oil refers to crude oil before it is refined into products, including gasoline, bunker fuel, lubricants, and asphalt. Crude oil that is upgraded in quality through residue reduction or other means shall be transported as provided in subparagraphs (A) and (B).
(iii)Subparagraphs (A) and (B) shall apply only to new or expanded oil extraction operations. New extraction operations means production of offshore oil from leases that did not exist or had never produced oil, as of January 1, 2003, or from platforms, drilling islands, subsea completions, or onshore drilling sites, that did not exist as of January 1, 2003. Expanded oil extraction means an increase in the geographic extent of existing leases or units, including lease boundary adjustments, an increase in the number of well heads, reactivation of a facility idled, inactive, or out of service for more than three years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies, on or after January 1, 2003.
(6)If a state of emergency is declared by the Governor for an emergency that disrupts the transportation of oil by pipeline, oil may be transported by a waterborne vessel, if authorized by permit, in the same manner as required by emergency permits that are issued pursuant to Section 30624.
(7)In addition to all other measures that will maximize the protection of marine habitat and environmental quality, when an offshore well is abandoned, the best achievable technology shall be used.
(b)(1)Repair, reactivation, Repair and maintenance of an existing oil and gas facility may be permitted in accordance with Section 30260 only if it does not result in expansion of capacity of the oil and gas facility, and if all applicable conditions of subdivision (a) are met.
(2)Repair, reactivation, and maintenance of an oil and gas facility that has been idled, inactive, or out of service for three five years or more shall be considered a new or expanded development requiring a new coastal development permit consistent with this section.
(3)Development for the repair, reactivation, or maintenance of an oil pipeline that has been idled, inactive, or out of service for three five years or more requires a new coastal development permit consistent with this section.
(4)The commission or local government with a certified local coastal program shall review and approve, modify, condition, or deny the permit based on the requirements of this section.
(c)Where appropriate, monitoring programs to record land surface and near-shore ocean floor movements shall be initiated in locations of new large-scale fluid extraction on land or near shore before operations begin and shall continue until surface conditions have stabilized. Costs of monitoring and mitigation programs shall be borne by liquid and gas extraction operators.
(d)This section does not affect the activities of any state agency that is responsible for regulating the extraction, production, or transport of oil and gas.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)Except as provided in subdivision (e), the commission or a local trustee shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018.
(b)(1)Upon receipt of an application for a lease renewal, extension, amendment, assignment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases, the commission or local trustee shall provide notice of this application by including it as a separate informational item on the agenda of the commissions or local trustees next duly noticed public meeting. Summary information about the requested lease renewal, extension, amendment, assignment, or modification shall be included in the agenda summary.
(2)Notwithstanding the Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code), the commission or local trustee shall take no further action to approve the requested lease renewal, extension, amendment, assignment, or modification until 180 days after the notification required in paragraph (1).
(c)Before approving a lease renewal, extension, amendment, assignment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases, the commission or local trustee shall consider, at a minimum, the following:
(1)Whether the lease renewal, extension, amendment, assignment, or modification is necessary to protect the marine environment or to ensure human health and safety.
(2)Whether the lease renewal, extension, amendment, assignment, or modification provides a benefit to the state beyond additional lease revenues.
(3)Whether the lease renewal, extension, amendment, assignment, or modification will impact the volume of oil and gas that may be transported across state waters.
(4)Whether the lease renewal, extension, amendment, assignment, or modification may impact public trust resources and values.
(5)Whether the lease renewal, extension, amendment, assignment, or modification is for, or connected to, infrastructure that has experienced a reportable incident, such as an oil spill.
(6)Whether the lease renewal, extension, amendment, assignment, or modification is related to the use of well stimulation treatments, extended reach drilling and production, horizontal drilling and production, or other unconventional drilling and production techniques for resource extraction.
(7)Whether the operator has provided finalized certificates of financial responsibility obtained from the Office of Spill Prevention and Response and has provided financial assurances required for decommissioning pursuant to subdivision (d) of Section 6829 and other applicable local or state laws.
(d)(1)A lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf, shall not be approved at the same properly noticed public meeting at which the lease renewal, extension, amendment, or modification is first presented.
(2)The commission or local trustee shall accept public comments at the same meeting at which it votes to approve or disapprove any lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf. A lease subject to this section shall be approved by the commission or the governing board of the local trustee.
(e)This section does not prohibit any of the following:
(1)The commission from issuing leases pursuant to Section 6243 or 6244.
(2)Any activity undertaken to repair 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.
(3)Any activity undertaken to convey oil or natural gas produced from state waters.
(f)The commission may establish regulations for the implementation of this section.
(g)For the purposes of this section, the following terms have the following meanings:
(1)Local trustee means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.
(2)Pacific Outer Continental Shelf means all submerged lands lying seaward of California, Hawaii, Oregon, and Washington and outside of the area of lands beneath navigable waters, as set forth by the federal Submerged Lands Act (43 U.S.C. Sec. 1331), and all of which appertain to the United States and are subject to its jurisdiction and control.
(3)State waters has the same meaning as defined in Section 36108.
SEC. 2.Section 6804 of the Public Resources Code is amended to read:6804.(a)A lease or permit issued under this chapter may be assigned, transferred, or sublet as to all or any part of the leased or permitted lands, and as to either a divided or undivided interest therein, or as to any separate and distinct zone or geological horizon or portion thereof, subject to approval by the commission, to any person, association of persons, or corporation, who, at the time of the proposed assignment, transfer, or sublease, possesses the qualifications provided in this chapter. Any assignment, transfer, or sublease shall take effect as of the first day of the month following the approval by the commission and filing with the commission of an executed counterpart thereof, together with any required bond and proof of the qualification, under this act and the rules and regulations of the commission, of the assignee, transferee, or sublessee to take or hold that lease, permit, or interest therein. Unless approved by the commission, no assignment, transfer, or sublease shall be of any effect. Upon approval of any assignment, transfer, or sublease, the assignee, transferee, or sublessee shall be bound by the terms of the lease or permit to the same extent as the assignor, transferor, or sublessor has been, and, except as provided in subdivision (c), shall continue to be, any conditions in the assignment, transfer, or sublease to the contrary notwithstanding. Any assignment or transfer of a separate portion of any lease or permit or of a separate and distinct zone or geological horizon, or a portion thereof, shall segregate the assigned, transferred, or subleased portion thereof from the retained portion thereof, and those segregated leases or permits shall continue in full force and effect for the primary term of the original lease or permit, but, in the case of any lease, for not less than two years after the date of discovery of oil or gas in paying quantities, or commercially valuable deposit of minerals, upon any segregated portion of the lands, zones, or horizons originally subject to that lease, and so long thereafter as oil or gas is produced in paying quantities. Assignments or transfers under this section may also be made with the approval of the commission of parts of leases that are in their extended term because of production, and the segregated lease of any undeveloped lands, zones, or horizons shall continue in full force and effect for two years and so long thereafter as oil, gas, or minerals are produced in paying quantities from the segregated lease lands, zones, or horizons.
(b)(1)In considering whether the approval of an assignment, transfer, or sublease of a lease or permit under subdivision (a) is in the best interest of the state under Section 6005, the commission may consider whether a proposed assignee is likely to comply with the terms of the lease or permit for the duration of both the primary term of the original lease or permit and any extended term of the lease because of production, as determined by all of the following factors:
(A)The proposed assignees experience with offshore or onshore oil or gas production or mineral extraction, as applicable.
(B)Any financial or economic considerations that may affect a proposed assignee and its ability to comply with the terms of a lease or permit.
(C)Any information concerning the proposed assignees compliance or noncompliance with other contractual obligations to the state or other government agency.
(D)Any record of noncompliance with any other laws or regulations.
(2)For purposes of this section, proposed assignee means the person or entity in whose name the lease or permit will be held after assignment, transfer, or sublease of a lease or permit, or any person or entity that makes managerial decisions for or exercises managerial control over the assignee.
(c)An assignment, transfer, or sublease pursuant to subdivision (a), or a memorandum of the assignment, transfer, or sublease, shall be recorded in the office of the county recorder of the county in which the leased or permitted lands are located.
(d)The assignor, transferor, or sublessor of a lease or permit under subdivision (a) shall remain liable for, and shall not be released or discharged from, obligations under the lease or permit, including requirements under state law to properly plug and abandon all wells, decommission all production facilities and related infrastructure, complete well site restoration and lease restoration, and remediate contamination at well and lease sites, except under either of the following circumstances:
(1)The commission determines that all lease or permit obligations have been fulfilled.
(2)The commission, in its sole discretion, approves the assignors, transferors, or sublessors request for a waiver of liability and release from the lease or permit obligations pursuant to this paragraph. The commission may approve a waiver and release under the following conditions:
(A)The assignor, transferor, or sublessor provides the commission both of the following:
(i)An estimate, by an independent third party approved by the commission, of the costs of fulfilling outstanding lease or permit obligations.
(ii)A security in at least the amount estimated under clause (i), plus an additional 20 percent of that amount, to account for the time value of money and potential cost overruns. The security may be cash, a letter of credit, or a bond. If the assignor, transferor, or sublessor is already maintaining a bond pursuant to Section 6829, the commission shall deduct the amount of the existing bond from the amount of a security necessary to comply with the requirements of this clause.
(B)The commission determines that the waiver and release is in the best interests of the state.
SEC. 3.Section 30262 of the Public Resources Code is amended to read:30262.(a)New or expanded oil and gas development shall not be considered a coastal-dependent industrial facility for the purposes of Section 30260, and may be permitted only if found to be consistent with all applicable provisions of this division and if all of the following conditions are met:
(1)The development is performed safely and consistent with the geologic conditions of the well site.
(2)Activities related to that development are consolidated, to the maximum extent feasible and legally permissible, unless consolidation will have adverse environmental consequences and will not significantly reduce the number of producing wells, support facilities, or sites required to produce the reservoir economically and with minimal environmental impacts.
(3)The development will not cause or contribute to subsidence hazards unless it is determined that adequate measures will be undertaken to prevent damage from that subsidence.
(4)All oilfield brines are reinjected into oil-producing zones unless the Geologic Energy Management Division of the Department of Conservation determines to do so would adversely affect production of the reservoirs and unless injection into other subsurface zones will reduce environmental risks. Exceptions to reinjections will be granted consistent with the California Ocean Plan of the State Water Resources Control Board and where adequate provision is made for the elimination of petroleum odors and water quality problems.
(5)(A)All oil produced offshore California shall be transported onshore by pipeline only. The pipelines used to transport this oil shall utilize the best achievable technology to ensure maximum protection of public health and safety and of the integrity and productivity of terrestrial and marine ecosystems.
(B)Once oil produced offshore California is onshore, it shall be transported to processing and refining facilities by pipeline that uses the best available technology pursuant to Section 51013.1 of the Government Code.
(C)Consistent with Section 51015.1 of the Government Code, and notwithstanding paragraph (1) of subdivision (a) of Section 51010.5 of the Government Code, the State Fire Marshal shall request approval from the federal Pipeline and Hazardous Materials Safety Administration to obtain interstate certification, consistent with Sections 60105 and 60106 of Title 49 of the United States Code, for interstate hazardous liquid pipelines that are not under the State Fire Marshals jurisdiction. With the approval of the federal Pipeline and Hazardous Materials Safety Administration, the State Fire Marshal shall do both of the following:(i)Inspect the pipelines to ensure that they meet the requirements of the federal Hazardous Liquid Pipeline Safety Act of 1979 (42 U.S.C. Sec. 60101 et seq.), and Part 195 (commencing with Section 195.0) of Title 49 of, the Code of Federal Regulations, and Section 51015.1 of the Government Code.(ii)Ensure the pipelines comply with Section 51013.1 of the Government Code.(D)(C)The following guidelines shall be used when applying subparagraphs (A) and (B):
(i)Best achievable technology, means the technology that provides the greatest degree of protection taking into consideration both of the following:
(I)Processes that are being developed, or could feasibly be developed, anywhere in the world, given overall reasonable expenditures on research and development.
(II)Processes that are currently in use anywhere in the world. This clause is not intended to create any conflicting or duplicative regulation of pipelines, including those governing the transportation of oil produced from onshore reserves.
(ii)Oil refers to crude oil before it is refined into products, including gasoline, bunker fuel, lubricants, and asphalt. Crude oil that is upgraded in quality through residue reduction or other means shall be transported as provided in subparagraphs (A) and (B).
(iii)Subparagraphs (A) and (B) shall apply only to new or expanded oil extraction operations. New extraction operations means production of offshore oil from leases that did not exist or had never produced oil, as of January 1, 2003, or from platforms, drilling islands, subsea completions, or onshore drilling sites, that did not exist as of January 1, 2003. Expanded oil extraction means an increase in the geographic extent of existing leases or units, including lease boundary adjustments, an increase in the number of well heads, reactivation of a facility idled, inactive, or out of service for more than three years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies, on or after January 1, 2003.
(6)If a state of emergency is declared by the Governor for an emergency that disrupts the transportation of oil by pipeline, oil may be transported by a waterborne vessel, if authorized by permit, in the same manner as required by emergency permits that are issued pursuant to Section 30624.
(7)In addition to all other measures that will maximize the protection of marine habitat and environmental quality, when an offshore well is abandoned, the best achievable technology shall be used.
(b)(1)Repair, reactivation, and maintenance of an existing oil and gas facility may be permitted in accordance with Section 30260 only if it does not result in expansion of capacity of the oil and gas facility, and if all applicable conditions of subdivision (a) are met.
(2)Repair, reactivation, and maintenance of an oil and gas facility that has been idled, inactive, or out of service for three years or more shall be considered a new or expanded development requiring a new coastal development permit consistent with this section.
(3)Development for the repair, reactivation, or maintenance of an oil pipeline that has been idled, inactive, or out of service for three years or more requires a new coastal development permit consistent with this section.
(4)The commission or local government with a certified local coastal program shall review and approve, modify, condition, or deny the permit based on the requirements of this section.
(c)Where appropriate, monitoring programs to record land surface and near-shore ocean floor movements shall be initiated in locations of new large-scale fluid extraction on land or near shore before operations begin and shall continue until surface conditions have stabilized. Costs of monitoring and mitigation programs shall be borne by liquid and gas extraction operators.
(d)This section does not affect the activities of any state agency that is responsible for regulating the extraction, production, or transport of oil and gas.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)Except as provided in subdivision (e), the commission or a local trustee shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases. leases issued after January 1, 2018.
(b)(1)Upon receipt of an application for a lease renewal, extension, amendment, assignment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases, the commission or local trustee shall provide notice of this application by including it as a separate informational item on the agenda of the commissions or local trustees next duly noticed public meeting. Summary information about the requested lease renewal, extension, amendment, assignment, or modification shall be included in the agenda summary.
(2)Notwithstanding the Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code), the commission or local trustee shall take no further action to approve the requested lease renewal, extension, amendment, assignment, or modification until 180 days after the notification required in paragraph (1).
(c)Before approving a lease renewal, extension, amendment, assignment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases, the commission or local trustee shall consider, at a minimum, the following:
(1)Whether the lease renewal, extension, amendment, assignment, or modification is necessary to protect the marine environment or to ensure human health and safety.
(2)Whether the lease renewal, extension, amendment, assignment, or modification provides a benefit to the state beyond additional lease revenues.
(3)Whether the lease renewal, extension, amendment, assignment, or modification will impact the volume of oil and gas that may be transported across state waters.
(4)Whether the lease renewal, extension, amendment, assignment, or modification may impact public trust resources and values.
(5)Whether the lease renewal, extension, amendment, assignment, or modification is for, or connected to, infrastructure that has experienced a reportable incident, such as an oil spill.
(6)Whether the lease renewal, extension, amendment, assignment, or modification is related to the use of well stimulation treatments, extended reach drilling and production, horizontal drilling and production, or other unconventional drilling and production techniques for resource extraction.
(7)Whether the operator has provided finalized certificates of financial responsibility obtained from the Office of Spill Prevention and Response and has provided financial assurances required for decommissioning pursuant to subdivision (d) of Section 6829 and other applicable local or state laws.
(d)(1)A lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf, shall not be approved at the same properly noticed public meeting at which the lease renewal, extension, amendment, or modification is first presented.
(2)The commission or local trustee shall accept public comments at the same meeting at which it votes to approve or disapprove any lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf. A lease subject to this section shall be approved by not less than two-thirds of all members of the commission or the governing board of the local trustee.
(e)This section does not prohibit any of the following:
(1)The commission from issuing leases pursuant to Section 6243 or 6244.
(2)Any activity undertaken to repair 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.
(3)Any activity undertaken to convey oil or natural gas produced from state waters.
(f)The commission may establish regulations for the implementation of this section.
(g)For the purposes of this section, the following terms have the following meanings:
(1)Local trustee means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.
(2)Pacific Outer Continental Shelf means all submerged lands lying seaward of California, Hawaii, Oregon, and Washington and outside of the area of lands beneath navigable waters, as set forth by the federal Submerged Lands Act (43 U.S.C. Sec. 1331), and all of which appertain to the United States and are subject to its jurisdiction and control.
(3)State waters has the same meaning as defined in Section 36108.
SEC. 2.Section 6804 of the Public Resources Code is amended to read:6804.(a)A lease or permit issued under this chapter may be assigned, transferred, or sublet as to all or any part of the leased or permitted lands, and as to either a divided or undivided interest therein, or as to any separate and distinct zone or geological horizon or portion thereof, subject to approval by the commission, to any person, association of persons, or corporation, who, at the time of the proposed assignment, transfer, or sublease, possesses the qualifications provided in this chapter. Any assignment, transfer, or sublease shall take effect as of the first day of the month following the approval by the commission and filing with the commission of an executed counterpart thereof, together with any required bond and proof of the qualification, under this act and the rules and regulations of the commission, of the assignee, transferee, or sublessee to take or hold that lease, permit, or interest therein. Unless approved by the commission, no assignment, transfer, or sublease shall be of any effect. Upon approval of any assignment, transfer, or sublease, the assignee, transferee, or sublessee shall be bound by the terms of the lease or permit to the same extent as the assignor, transferor, or sublessor has been, and, except as provided in subdivision (c), shall continue to be, any conditions in the assignment, transfer, or sublease to the contrary notwithstanding. Any assignment or transfer of a separate portion of any lease or permit or of a separate and distinct zone or geological horizon, or a portion thereof, shall segregate the assigned, transferred, or subleased portion thereof from the retained portion thereof, and those segregated leases or permits shall continue in full force and effect for the primary term of the original lease or permit, but, in the case of any lease, for not less than two years after the date of discovery of oil or gas in paying quantities, or commercially valuable deposit of minerals, upon any segregated portion of the lands, zones, or horizons originally subject to that lease, and so long thereafter as oil or gas is produced in paying quantities. Assignments or transfers under this section may also be made with the approval of the commission of parts of leases that are in their extended term because of production, and the segregated lease of any undeveloped lands, zones, or horizons shall continue in full force and effect for two years and so long thereafter as oil, gas, or minerals are produced in paying quantities from the segregated lease lands, zones, or horizons.
(b)(1)In considering whether the approval of an assignment, transfer, or sublease of a lease or permit under subdivision (a) is in the best interest of the state under Section 6005, the commission may consider whether a proposed assignee is likely to comply with the terms of the lease or permit for the duration of both the primary term of the original lease or permit and any extended term of the lease because of production, as determined by all of the following factors:
(A)The proposed assignees experience with offshore or onshore oil or gas production or mineral extraction, as applicable.
(B)Any financial or economic considerations that may affect a proposed assignee and its ability to comply with the terms of a lease or permit.
(C)Any information concerning the proposed assignees compliance or noncompliance with other contractual obligations to the state or other government agency.
(D)Any record of noncompliance with any other laws or regulations.
(2)For purposes of this section, proposed assignee means the person or entity in whose name the lease or permit will be held after assignment, transfer, or sublease of a lease or permit, or any person or entity that makes managerial decisions for or exercises managerial control over the assignee.
(c)An assignment, transfer, or sublease pursuant to subdivision (a), or a memorandum of the assignment, transfer, or sublease, shall be recorded in the office of the county recorder of the county in which the leased or permitted lands are located.
(d)The assignor, transferor, or sublessor of a lease or permit under subdivision (a) shall remain liable for, and shall not be released or discharged from, obligations under the lease or permit, including requirements under state law to properly plug and abandon all wells, decommission all production facilities and related infrastructure, complete well site restoration and lease restoration, and remediate contamination at well and lease sites, except under either of the following circumstances:
(1)The commission determines that all lease or permit obligations have been fulfilled.
(2)The commission, in its sole discretion, approves the assignors, transferors, or sublessors request for a waiver of liability and release from the lease or permit obligations pursuant to this paragraph. The commission may approve a waiver and release under the following conditions:
(A)The assignor, transferor, or sublessor provides the commission both of the following:
(i)An estimate, by an independent third party approved by the commission, of the costs of fulfilling outstanding lease or permit obligations.
(ii)A security in at least the amount estimated under clause (i), plus an additional 20 percent of that amount, to account for the time value of money and potential cost overruns. The security may be cash, a letter of credit, or a bond. If the assignor, transferor, or sublessor is already maintaining a bond pursuant to Section 6829, the commission shall deduct the amount of the existing bond from the amount of a security necessary to comply with the requirements of this clause.
(B)The commission determines that the waiver and release is in the best interests of the state.
SEC. 3.Section 30262 of the Public Resources Code is amended to read:30262.(a)New or expanded oil and gas development shall not be considered a coastal-dependent industrial facility for the purposes of Section 30260, and may be permitted only if found to be consistent with all applicable provisions of this division and if all of the following conditions are met:
(1)The development is performed safely and consistent with the geologic conditions of the well site.
(2)Activities related to that development are consolidated, to the maximum extent feasible and legally permissible, unless consolidation will have adverse environmental consequences and will not significantly reduce the number of producing wells, support facilities, or sites required to produce the reservoir economically and with minimal environmental impacts.
(3)The development will not cause or contribute to subsidence hazards unless it is determined that adequate measures will be undertaken to prevent damage from that subsidence.
(4)All oilfield brines are reinjected into oil-producing zones unless the Geologic Energy Management Division of the Department of Conservation determines to do so would adversely affect production of the reservoirs and unless injection into other subsurface zones will reduce environmental risks. Exceptions to reinjections will be granted consistent with the California Ocean Plan of the State Water Resources Control Board and where adequate provision is made for the elimination of petroleum odors and water quality problems.
(5)(A)All oil produced offshore California shall be transported onshore by pipeline only. The pipelines used to transport this oil shall utilize the best achievable technology to ensure maximum protection of public health and safety and of the integrity and productivity of terrestrial and marine ecosystems.
(B)Once oil produced offshore California is onshore, it shall be transported to processing and refining facilities by pipeline that uses the best achievable technology. available technology pursuant to Section 51013.1 of the Government Code.
(C)Whether onshore or offshore, the pipelines shall be certified by the Office of the State Fire Marshal as meeting all of the following conditions:(C)Consistent with Section 51015.1 of the Government Code, and notwithstanding paragraph (1) of subdivision (a) of Section 51010.5 of the Government Code, the State Fire Marshal shall request approval from the federal Pipeline and Hazardous Materials Safety Administration to obtain interstate certification, consistent with Sections 60105 and 60106 of Title 49 of the United States Code, for interstate hazardous liquid pipelines that are not under the State Fire Marshals jurisdiction. With the approval of the federal Pipeline and Hazardous Materials Safety Administration, the State Fire Marshal shall do both of the following:
(i)The Inspect the pipelines to ensure that they meet the requirements of the federal Hazardous Liquid Pipeline Safety Act of 1979 (42 U.S.C. Sec. 60101 et seq.), and Part 195 (commencing with Section 195.0) of Title 49 of, the Federal Code of Federal Regulations, and Chapter 14 (commencing with Section 2000) of Title 19 of the Calfiornia Code of the Code of Federal Regulations. Section 51015.1 of the Government Code.
(ii)The State Fire Marshal has not exempted the pipeline pursuant to subdivision (b) of Section 51011 of the Government Code.(iii)The(ii)Ensure the pipelines comply with Section 51013.1 of the Government Code.
(D)The following guidelines shall be used when applying subparagraphs (A) and (B):
(i)Best achievable technology, means the technology that provides the greatest degree of protection taking into consideration both of the following:
(I)Processes that are being developed, or could feasibly be developed, anywhere in the world, given overall reasonable expenditures on research and development.
(II)Processes that are currently in use anywhere in the world. This clause is not intended to create any conflicting or duplicative regulation of pipelines, including those governing the transportation of oil produced from onshore reserves.
(ii)Oil refers to crude oil before it is refined into products, including gasoline, bunker fuel, lubricants, and asphalt. Crude oil that is upgraded in quality through residue reduction or other means shall be transported as provided in subparagraphs (A) and (B).
(iii)Subparagraphs (A) and (B) shall apply only to new or expanded oil extraction operations. New extraction operations means production of offshore oil from leases that did not exist or had never produced oil, as of January 1, 2003, or from platforms, drilling islands, subsea completions, or onshore drilling sites, that did not exist as of January 1, 2003. Expanded oil extraction means an increase in the geographic extent of existing leases or units, including lease boundary adjustments, an increase in the number of well heads, reactivation of a facility idled, inactive, or out of service for more than three years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies, on or after January 1, 2003.
(6)If a state of emergency is declared by the Governor for an emergency that disrupts the transportation of oil by pipeline, oil may be transported by a waterborne vessel, if authorized by permit, in the same manner as required by emergency permits that are issued pursuant to Section 30624.
(7)In addition to all other measures that will maximize the protection of marine habitat and environmental quality, when an offshore well is abandoned, the best achievable technology shall be used.
(b)(1)Repair, reactivation, and maintenance of an existing oil and gas facility may be permitted in accordance with Section 30260 only if it does not result in expansion of capacity of the oil and gas facility, and if all applicable conditions of subdivision (a) are met.
(2)Repair, reactivation, and maintenance of an oil and gas facility that has been idled, inactive, or out of service for three years or more shall be considered a new or expanded development requiring a new coastal development permit consistent with this section.
(3)Development for the repair, reactivation, or maintenance of an oil pipeline that has been idled, inactive, or out of service for three years or more requires a new coastal development permit consistent with this section.
(4)The commission or local government with a certified local coastal program shall review and approve, modify, condition, or deny the permit based on the requirements of this section.
(c)Where appropriate, monitoring programs to record land surface and near-shore ocean floor movements shall be initiated in locations of new large-scale fluid extraction on land or near shore before operations begin and shall continue until surface conditions have stabilized. Costs of monitoring and mitigation programs shall be borne by liquid and gas extraction operators.
(d)This section does not affect the activities of any state agency that is responsible for regulating the extraction, production, or transport of oil and gas.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)Except as provided in subdivision (e), the commission or a local trustee shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018. leases.
(b)(1)Upon receipt of an application for a lease renewal, extension, amendment, assignment, or modification to authorize new construction of for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, leases, the commission or local trustee shall provide notice of this application by including it as a separate informational item on the agenda of the commissions or local trustees next duly noticed public meeting. Summary information about the requested lease renewal, extension, amendment, assignment, or modification shall be included in the agenda summary.
(2)Notwithstanding the Permit Streamlining Act (Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code), the commission or local trustee shall take no further action to approve the requested lease renewal, extension, amendment, assignment, or modification until 180 days after the notification required in paragraph (1).
(c)Prior to Before approving any a lease renewal, extension, amendment, assignment, or modification to authorize new construction of for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, leases, the commission or local trustee shall consider, at a minimum, the following:
(1)Whether the lease renewal, extension, amendment, assignment, or modification is necessary to protect the marine environment or to ensure human health and safety.
(2)Whether the lease renewal, extension, amendment, assignment, or modification provides a benefit to the state beyond additional lease revenues.
(3)Whether the lease renewal, extension, amendment, assignment, or modification will impact the volume of oil and gas that may be transported across state waters.
(4)Whether the lease renewal, extension, amendment, assignment, or modification may impact public trust resources and values.
(5)Whether the lease renewal, extension, amendment, assignment, or modification is for, or connected to, infrastructure that has experienced a reportable incident, such as an oil spill.
(6)Whether the lease renewal, extension, amendment, assignment, or modification is related to the use of well stimulation treatments, extended reach drilling and production, horizontal drilling and production, or other unconventional drilling and production techniques for resource extraction.
(7)Whether the operator has provided finalized certificates of financial responsibility obtained from the Office of Spill Prevention and Response and has provided financial assurances required for decommissioning pursuant to subdivision (d) of Section 6829 and other applicable local or state laws.
(d)(1)Any A lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf, shall not be approved at the same properly noticed public meeting at which the lease renewal, extension, amendment, or modification is first presented.
(2)The commission or local trustee shall accept public comments at the same meeting at which it votes to approve or disapprove any lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters. Any waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf. A lease subject to this section shall be approved by a vote not less than two-thirds of all members of the commission or the governing board of the local trustee.
(e)Nothing in this This section shall does not prohibit any of the following:
(1)The commission from issuing leases pursuant to Section 6243 or 6244.
(2)Any activity undertaken to repair 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.
(3)Any activity undertaken to convey oil or natural gas produced from state waters.
(f)The commission may establish regulations for the implementation of this section.
(g)For the purposes of this section, the following terms have the following meanings:
(1)Local trustee means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.
(2)Pacific Outer Continental Shelf means all submerged lands lying seaward of California, Hawaii, Oregon, and Washington and outside of the area of lands beneath navigable waters, as set forth by the federal Submerged Lands Act (43 U.S.C. Sec. 1331), and all of which appertain to the United States and are subject to its jurisdiction and control.
(3)State waters has the same meaning as defined in Section 36108.
SEC. 2.Section 6804 of the Public Resources Code is amended to read:6804.(a)A lease or permit issued under this chapter may be assigned, transferred, or sublet as to all or any part of the leased or permitted lands, and as to either a divided or undivided interest therein, or as to any separate and distinct zone or geological horizon or portion thereof, subject to approval by the commission, to any person, association of persons, or corporation, who, at the time of the proposed assignment, transfer, or sublease, possesses the qualifications provided in this chapter. Any assignment, transfer, or sublease shall take effect as of the first day of the month following the approval by the commission and filing with the commission of an executed counterpart thereof, together with any required bond and proof of the qualification, under this act and the rules and regulations of the commission, of the assignee, transferee, or sublessee to take or hold that lease, permit, or interest therein. Unless approved by the commission, no assignment, transfer, or sublease shall be of any effect. Upon approval of any assignment, transfer, or sublease, the assignee, transferee, or sublessee shall be bound by the terms of the lease or permit to the same extent as the assignor, transferor, or sublessor has been, and, except as provided in subdivision (c), shall continue to be, any conditions in the assignment, transfer, or sublease to the contrary notwithstanding. Any assignment or transfer of a separate portion of any lease or permit or of a separate and distinct zone or geological horizon, or a portion thereof, shall segregate the assigned, transferred, or subleased portion thereof from the retained portion thereof, and those segregated leases or permits shall continue in full force and effect for the primary term of the original lease or permit, but, in the case of any lease, for not less than two years after the date of discovery of oil or gas in paying quantities, or commercially valuable deposit of minerals, upon any segregated portion of the lands, zones, or horizons originally subject to that lease, and so long thereafter as oil or gas is produced in paying quantities. Assignments or transfers under this section may also be made with the approval of the commission of parts of leases that are in their extended term because of production, and the segregated lease of any undeveloped lands, zones, or horizons shall continue in full force and effect for two years and so long thereafter as oil, gas, or minerals are produced in paying quantities from the segregated lease lands, zones, or horizons.
(b)(1)In considering whether the approval of an assignment, transfer, or sublease of a lease or permit under subdivision (a), (a) is in the best interest of the state under Section 6005, the commission may consider whether a proposed assignee is likely to comply with the terms of the lease or permit for the duration of both the primary term of the original lease or permit and any extended term of the lease because of production, as determined by all of the following factors:
(A)The proposed assignees experience with offshore or onshore oil or gas production or mineral extraction, as applicable.
(B)Any financial or economic considerations that may affect a proposed assignee and its ability to comply with the terms of a lease or permit.
(C)Any information concerning the proposed assignees compliance or noncompliance with other contractual obligations to the state or other government agency.
(D)Any record of noncompliance with any other laws or regulations.
(2)For purposes of this section, proposed assignee means the person or entity in whose name the lease or permit will be held after assignment, transfer, or sublease of a lease or permit, or any person or entity that makes managerial decisions for or exercises managerial control over the assignee.
(c)An assignment, transfer, or sublease pursuant to subdivision (a), or a memorandum of the assignment, transfer, or sublease, shall be recorded in the office of the county recorder of the county in which the leased or permitted lands are located.
(d)The assignor, transferor, or sublessor of a lease or permit under subdivision (a) shall remain liable for, and shall not be released or discharged from, obligations under the lease or permit, including requirements under state law to properly plug and abandon all wells, decommission all production facilities and related infrastructure, complete well site restoration and lease restoration, and remediate contamination at well and lease sites, except under either of the following circumstances:
(1)The commission determines that all lease or permit obligations have been fulfilled.
(2)The commission, in its sole discretion, approves the assignors, transferors, or sublessors request for a waiver of liability and release from the lease or permit obligations pursuant to this paragraph. The commission may approve a waiver and release under the following conditions:
(A)The assignor, transferor, or sublessor provides the commission both of the following:
(i)An estimate, by an independent third party approved by the commission, of the costs of fulfilling outstanding lease or permit obligations.
(ii)A security in at least the amount estimated under clause (i), plus an additional 20 percent of that amount, to account for the time value of money and potential cost overruns. The security may be cash, a letter of credit, or a bond. If the assignor, transferor, or sublessor is already maintaining a bond pursuant to Section 6829, the commission shall deduct the amount of the existing bond from the amount of a security necessary to comply with the requirements of this clause.
(B)The commission determines that the waiver and release is in the best interests of the state.
SEC. 3.Section 30262 of the Public Resources Code is amended to read:30262.(a)New or expanded oil and gas development shall not be considered a coastal-dependent industrial facility for the purposes of Section 30260, and may be permitted only if found to be consistent with all applicable provisions of this division and if all of the following conditions are met:
(1)The development is performed safely and consistent with the geologic conditions of the well site.
(2)Activities related to that development are consolidated, to the maximum extent feasible and legally permissible, unless consolidation will have adverse environmental consequences and will not significantly reduce the number of producing wells, support facilities, or sites required to produce the reservoir economically and with minimal environmental impacts.
(3)The development will not cause or contribute to subsidence hazards unless it is determined that adequate measures will be undertaken to prevent damage from that subsidence.
(4)All oilfield brines are reinjected into oil-producing zones unless the Geologic Energy Management Division of the Department of Conservation determines to do so would adversely affect production of the reservoirs and unless injection into other subsurface zones will reduce environmental risks. Exceptions to reinjections will be granted consistent with the California Ocean Plan of the State Water Resources Control Board and where adequate provision is made for the elimination of petroleum odors and water quality problems.
(5)(A)All oil produced offshore California shall be transported onshore by pipeline only. The pipelines used to transport this oil shall utilize the best achievable technology to ensure maximum protection of public health and safety and of the integrity and productivity of terrestrial and marine ecosystems.
(B)Once oil produced offshore California is onshore, it shall be transported to processing and refining facilities by pipeline. pipeline that uses the best achievable technology.
(C)Whether onshore or offshore, the pipelines shall be certified by the Office of the State Fire Marshal as meeting all of the following conditions:
(i)The pipelines meet the requirements of the federal Hazardous Liquid Pipeline Safety Act of 1979 (42 U.S.C. Sec. 60101 et seq.), and Part 195 (commencing with Section 195.0) of Title 49 of, the Federal Code of Regulations, and Chapter 14 (commencing with Section 2000) of Title 19 of the Calfiornia Code of the Code of Federal Regulations.
(ii)The State Fire Marshal has not exempted the pipeline pursuant to subdivision (b) of Section 51011 of the Government Code.
(iii)The pipelines comply with Section 51013.1 of the Government Code.
(C)(D)The following guidelines shall be used when applying subparagraphs (A) and (B):
(i)Best achievable technology, means the technology that provides the greatest degree of protection taking into consideration both of the following:
(I)Processes that are being developed, or could feasibly be developed, anywhere in the world, given overall reasonable expenditures on research and development.
(II)Processes that are currently in use anywhere in the world. This clause is not intended to create any conflicting or duplicative regulation of pipelines, including those governing the transportation of oil produced from onshore reserves.
(ii)Oil refers to crude oil before it is refined into products, including gasoline, bunker fuel, lubricants, and asphalt. Crude oil that is upgraded in quality through residue reduction or other means shall be transported as provided in subparagraphs (A) and (B).
(iii)Subparagraphs (A) and (B) shall apply only to new or expanded oil extraction operations. New extraction operations means production of offshore oil from leases that did not exist or had never produced oil, as of January 1, 2003, or from platforms, drilling islands, subsea completions, or onshore drilling sites, that did not exist as of January 1, 2003. Expanded oil extraction means an increase in the geographic extent of existing leases or units, including lease boundary adjustments, or an increase in the number of well heads, heads, reactivation of a facility idled, inactive, or out of service for more than three years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies, on or after January 1, 2003.
(iv)For new or expanded oil extraction operations subject to clause (iii), if the crude oil is so highly viscous that pipelining is determined to be an infeasible mode of transportation, or where there is no feasible access to a pipeline, shipment of crude oil may be permitted over land by other modes of transportation, including trains or trucks, which meet all applicable rules and regulations, excluding any waterborne mode of transport.(6)If a state of emergency is declared by the Governor for an emergency that disrupts the transportation of oil by pipeline, oil may be transported by a waterborne vessel, if authorized by permit, in the same manner as required by emergency permits that are issued pursuant to Section 30624.
(7)In addition to all other measures that will maximize the protection of marine habitat and environmental quality, when an offshore well is abandoned, the best achievable technology shall be used.
(b)Repair (1)Repair, reactivation, and maintenance of an existing oil and gas facility may be permitted in accordance with Section 30260 only if it does not result in expansion of capacity of the oil and gas facility, and if all applicable conditions of subdivision (a) are met.
(2)Repair, reactivation, and maintenance of an oil and gas facility that has been idled, inactive, or out of service for three years or more shall be considered a new or expanded development requiring a new coastal development permit consistent with this section.
(3)Development for the repair, reactivation, or maintenance of an oil pipeline that has been idled, inactive, or out of service for three years or more requires a new coastal development permit consistent with this section.
(4)The commission or local government with a certified local coastal program shall review and approve, modify, condition, or deny the permit based on the requirements of this section.
(c)Where appropriate, monitoring programs to record land surface and near-shore ocean floor movements shall be initiated in locations of new large-scale fluid extraction on land or near shore before operations begin and shall continue until surface conditions have stabilized. Costs of monitoring and mitigation programs shall be borne by liquid and gas extraction operators.
(d)Nothing in this This section shall does not affect the activities of any state agency that is responsible for regulating the extraction, production, or transport of oil and gas.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
|
Date
|
Status
|
|---|---|
| Sep 29, 2026 | Chaptered by Secretary of State - Chapter 812, Statutes of 2026. |
| Sep 29, 2026 | Approved by the Governor. |
| Sep 4, 2026 | Enrolled and presented to the Governor at 4 p.m. |
| Aug 27, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 46. Noes 18.). |
| Aug 27, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 46. Noes 18. Page 6753.). |
| Aug 27, 2026 | In Assembly. Concurrence in Senate amendments pending. |
| Aug 26, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 29. Noes 10.). |
| Aug 5, 2026 | Read second time. Ordered to third reading. |
| Aug 4, 2026 | Read third time and amended. Ordered to second reading. |
| Jun 17, 2026 | Read second time. Ordered to third reading. |
| Jun 16, 2026 | Withdrawn from committee. |
| Jun 16, 2026 | Ordered to second reading. |
| Jun 9, 2026 | From committee: Pursuant to Senate Rule 29.10(b) that the measure be re-referred to Com. on APPR. pursuant to Joint Rule 10.5. (Ayes 5. Noes 2.) (June 9). |
| May 13, 2026 | Re-referred to Com. on N.R. & W. |
| Apr 30, 2026 | Re-referred to Com. on RLS. pursuant to Senate Rule 29.10(b). |
| Apr 29, 2026 | Read second time. Ordered to third reading. |
| Apr 28, 2026 | Read second time and amended. Ordered returned to second reading. |
| Apr 28, 2026 | Ordered to second reading. |
| Apr 28, 2026 | From inactive file. |
| Sep 12, 2025 | Ordered to inactive file at the request of Senator Limón. |
| Sep 8, 2025 | Read second time. Ordered to third reading. |
| Sep 5, 2025 | Read third time and amended. Ordered to second reading. |
| Sep 2, 2025 | Read second time. Ordered to third reading. |
| Aug 29, 2025 | Read second time and amended. Ordered returned to second reading. |
| Aug 29, 2025 | From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (August 29). |
| Aug 18, 2025 | In committee: Referred to suspense file. |
| Jul 10, 2025 | Withdrawn from committee. |
| Jul 10, 2025 | Re-referred to Com. on APPR. |
| Jul 9, 2025 | From committee: Do pass and re-refer to Com. on G.O. (Ayes 4. Noes 3.) (July 8). Re-referred to Com. on G.O. |
| Jun 25, 2025 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on N.R. & W. |
| Jun 18, 2025 | Referred to Coms. on N.R. & W. and G.O. |
| Jun 5, 2025 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jun 4, 2025 | Read third time. Passed. Ordered to the Senate. (Ayes 42. Noes 26. Page 2063.) |
| May 27, 2025 | Read second time. Ordered to third reading. |
| May 23, 2025 | From committee: Do pass. (Ayes 11. Noes 3.) (May 23). |
| May 14, 2025 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| May 1, 2025 | Re-referred to Com. on APPR. |
| Apr 30, 2025 | Read second time and amended. |
| Apr 29, 2025 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 4.) (April 28). |
| Mar 13, 2025 | Referred to Com. on NAT. RES. |
| Feb 24, 2025 | Read first time. |
| Feb 22, 2025 | From printer. May be heard in committee March 24. |
| Feb 21, 2025 | Introduced. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 27, 2026 | AB 1448 Hart Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 26, 2026 | Assembly 3rd Reading AB1448 Hart et al. By Blakespear | Senate Floor |
Passed |
|
| Jun 9, 2026 | Pursuant to Senate Rule 29.10, that the measure be re-referred to the Committee on Appropriations pursuant to Joint Rule 10.5 | Senate Standing Committee on Natural Resources and Water |
Passed |
|
| Aug 29, 2025 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 18, 2025 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 8, 2025 | Do pass, but first be re-referred to the Committee on [Governmental Organization] | Senate Standing Committee on Natural Resources and Water |
Passed |
|
| Jun 4, 2025 | AB 1448 Hart Assembly Third Reading | Assembly Floor |
Passed |
|
| May 23, 2025 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 28, 2025 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Natural Resources |
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.
|
Organization
|
Position
|
Date
|
|---|---|---|
| 350 Bay Area Action | ** Support | |
| 350 Hawaii | ** Support | |
| 350 Humboldt | ** Support | |
| 350 Sacramento | ** Support | |
| 350 Santa Barbara | ** Support | |
| 417 Poplar, LLC | ** Support | |
| 7th Generation Advisors | ** Support | |
| Alliance of Nurses for a Healthy Environment | ** Support | |
| Amazon Watch | ** Support | |
| Amy Jeske Homes, Inc. | ** Support | |
| Animals are Sentient Beings, INC. | ** Support | |
| Azul | ** Support | |
| Ballona Wetlands Institute | ** Support | |
| Ban SUP (Single Use Plastics) | ** Support | |
| Between the Waters | ** Support | |
| Bixby Residential | ** Support | |
| Border Grill Restaurants and Truck | ** Support | |
| Burea, Inc. | ** Support | |
| Business Alliance for Protecting the Pacific Coast | ** Support | |
| California Coastal Protection Network | ** Support | |
| California Coastkeeper Alliance | ** Support | |
| California Democratic Party | ** Support | |
| California Environmental Voters | ** Support | |
| California Independent Petroleum Association | ** Against | |
| California Land Watch | ** Support | |
| California Legislative Central Coast Caucus | ** Support | |
| California Marine Sanctuary Foundation | ** Support | |
| California Nurses for Environmental Health and Justice | ** Support | |
| California Outdoor Recreation Partnership | ** Support | |
| Center For Biological Diversity | ** Support | |
| Center For Environmental Health | ** Support | |
| Center on Race, Poverty, and the Environment | ** Support | |
| Central Coast Climate Justice Network | ** Support | |
| Central Valley Business Federation | ** Against | |
| Cerca Cultivation | ** Support | |
| Charlie Hong Kong | ** Support | |
| Citizens Planning Association | ** Support | |
| City and County of San Francisco | ** Support | |
| City of Encinitas | ** Support | |
| City of Goleta | ** Support | |
| City of Santa Barbara | ** Support | |
| Clean Water Action | ** Support | |
| cleanearth4kids.org | ** Support | |
| Climate Action California | ** Support | |
| Climate First: Replacing Oil and Gas | ** Support | |
| Climate Hawks Vote | ** Support | |
| Climate Health Now Action Fund | ** Support | |
| Climate Reality Project, San Diego | ** Support | |
| Clue-SB Environmental Justice Group | ** Support | |
| Coastal Band of the Chumash Nation | ** Support | |
| Coastal Lands Action Network | ** Support | |
| Contra Costa MoveOn | ** Support | |
| County of Marin | ** Support | |
| County of San Mateo | ** Support | |
| County of Santa Barbara | ** Support | |
| Dana Wharf Sportfishing And Whale Watching | ** Support | |
| Dayenu: A Jewish Call to Climate Action | ** Support | |
| DCOR, LLC | ** Against | |
| Defend Ballona Wetlands | ** Support | |
| Defenders Of Wildlife | ** Support | |
| E2 | ** Support | |
| Earthwell Refill | ** Support | |
| Elected Officials to Protect America | ** Support | |
| Elected Officials to Protect America Code Blue | ** Support | |
| Environmental Action Committee of West Marin | ** Support | |
| Environmental Center of San Diego | ** Support | |
| Environmental Defense Center | ** Support | |
| Environmental Law Club at UCSB | ** Support | |
| Environmental Protection Information Center | ** Support | |
| Environmental Protection Information Center (EPIC) | ** Support | |
| EOPA Code Blue | ** Support | |
| Families Advocating for Chemical and Tech Safety (FACTS) | ** Support | |
| Field + Form | ** Support | |
| Fish On | ** Support | |
| Food & Water Watch | ** Support | |
| Friends Committee On Legislation Of California | ** Support | |
| Friends Of The Earth | ** Support | |
| FutureSwell | ** Support | |
| Get Oil Out! | ** Support | |
| Governor Newsom | ** Against | |
| Green Policy Initiative | ** Support | |
| GreenLatinos | ** Support | |
| Greenpeace Usa | ** Support | |
| Groundzero | ** Support | |
| Heal The Bay | ** Support | |
| Heal the Ocean | ** Support | |
| Hubble Daily Architecture + Design | ** Support | |
| Humboldt Waterkeeper | ** Support | |
| IEEP | ** Against | |
| Indivisible CA Green Team | ** Support | |
| Indivisible Santa Cruz County, Environmental Issues Team | ** Support | |
| International Marine Mammal Project of Earth Island Institute | ** Support | |
| International Marine Mammal Project, Earth Island Institute | ** Support | |
| Kern Citizens of Energy | ** Against | |
| Kern County Economic Development Corporation | ** Against | |
| Kern County Taxpayers Association | ** Against | |
| Long Beach Alliance for Clean Energy | ** Support | |
| Long Beach Area Chamber of Commerce | ** Against | |
| Los Angeles County Business Federation | ** Against | |
| Los Angeles Waterkeeper | ** Support | |
| Los Padres ForestWatch | ** Support | |
| Mako Strategies | ** Support | |
| Media Alliance | ** Support | |
| Mercury Press, Inc. | ** Support | |
| Midsomman, LLC | ** Support | |
| Modo Yoga San Diego | ** Support | |
| Monterey Bay Aquarium | ** Support | |
| Monterey Waterkeeper | ** Support | |
| My Zero Waste Store | ** Support | |
| Nassau Hiking & Outdoor Club | ** Support | |
| Natural Resources Defense Council | ** Support | |
| North American Climate Conservation and Environment (NACCE) | ** Support | |
| Ocean Conservation Research | ** Support | |
| Oceana | ** Support | |
| Oil and Gas Action Network | ** Support | |
| Orange County Coastkeeper | ** Support | |
| Pacific Catch | ** Support | |
| Pacific Coast Hidaway, LLC | ** Support | |
| Paddle for Peace | ** Support | |
| Page Events | ** Support | |
| Patagonia | ** Support | |
| Pesticide Action and Agroecology Network | ** Support | |
| Physicians for Social Responsibility, Los Angeles | ** Support | |
| Physicians for Social Responsibility, San Francisco Bay Chapter | ** Support | |
| Progressive Democrats Of America | ** Support | |
| Progressives for Climate | ** Support | |
| Project Kolika | ** Support | |
| Protect Ballona Wetlands | ** Support | |
| PuraVida Surf Shop, Inc. | ** Support | |
| Quabajai Coastal Chumash Keeper of the Western Gate | ** Support | |
| Quabajai Coastal Chumash Keepers of the Western Gate | ** Support | |
| Resources Renewal Institute | ** Support | |
| Root Utility Netwwork | ** Support | |
| Sable Offshore Corp | ** Against | |
| Sable Offshore Corporation | ** Against | |
| Sacred Places Institute for Indigenous Peoples | ** Support | |
| SAGE Monterey | ** Against | |
| Salt + Noelle | ** Support | |
| San Diego 350 | ** Support | |
| San Diego Coastkeeper | ** Support | |
| San Francisco Baykeeper | ** Support | |
| Santa Barbara Channelkeeper | ** Support | |
| Santa Barbara County Action Network | ** Support | |
| Santa Barbara Sportfishing | ** Support | |
| Santa Cruz Waves | ** Support | |
| Santa Maria Valley Chamber | ** Against | |
| Save Our Shores | ** Support | |
| SBCTAC | ** Against | |
| sea forager | ** Support | |
| Sereia | ** Support | |
| Sierra Club California | ** Support | |
| Sierra Club, Santa Barbara Group | ** Support | |
| Sierra Club, Santa Lucia Chapter (San Luis Obispo County) | ** Support | |
| Sisters of Mercy of the Americas in California | ** Support | |
| SLO COLAB | ** Against | |
| SoCal 350 Climate Action | ** Support | |
| Society of Fearless Grandmothers - Santa Barbara | ** Support | |
| Society of Fearless Grandmothers of Santa Barbara | ** Support | |
| Soichi Sushi | ** Support | |
| Solano County Democratic Central Committee | ** Support | |
| South County Chamber | ** Against | |
| St. Joseph Justice Center | ** Support | |
| Stardust Sportfishing | ** Support | |
| State Building and Construction Trades Council of California | ** Against | |
| Sunflower Alliance | ** Support | |
| Surfrider Foundation | ** Support | |
| Surfrider Foundation – Isla Vista Club | ** Support | |
| Surfrider Foundation, Santa Barbara Chapter | ** Support | |
| Sustainable Rossmoor | ** Support | |
| The Climate Center | ** Support | |
| The Fund for Santa Barbara | ** Support | |
| The Green Room | ** Support | |
| The Refill Shoppe | ** Support | |
| Third ACT SoCal | ** Support | |
| Transformative Wealth Management | ** Support | |
| Tri-County Chamber Alliance | ** Against | |
| Turtle Island Restoration Network | ** Support | |
| UCSB Environmental Affairs Board | ** Support | |
| UCSB Environmental Law Club | ** Support | |
| United Nations Association – California | ** Support | |
| VC Taxpayers Association | ** Against | |
| Ventura Coastkeeper | ** Support | |
| Vote Solar | ** Support | |
| West Coast Paddle Sports | ** Support | |
| Western States Petroleum Associat | ** Against | |
| Western States Petroleum Association | ** Against | |
| Wild Beacon Consulting | ** Support | |
| Wildcoast | ** Support | |
| Wishoyo Chumash Foundation | ** Support | |
| Wishtoyo Chumash Foundation | ** Support | |
| Zero Hour | ** Support |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 1448
Author:(Hart)
As Amended Ver:August 4, 2026
Majority vote
SUMMARY
Modifies existing requirements for the transfer, assignment or modification of leases for oil and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf (OCS) leases; prohibits leases and oil- and gas-related infrastructure located upon tidelands and submerged lands from being used to support Pacific OCS leases issued after January 1, 2026; and limits the exception authorizing new oil- and gas-leasing on state tide and submerged lands within the California Coastal Sanctuary if state oil deposits are being drained from producing wells on federal lands to those areas not in the state's marine protected areas or national marine sanctuaries, as provided.
Senate Amendments
- Strike all amendments to Public Resources Code 30262.
- Prohibit the State Lands Commission (SLC) from entering into any lease for the extraction of oil or gas from state-owned tide and submerged lands in the California Coastal Sanctuary in areas designated as California marine protected areas pursuant to the Marine Life Protection Act as of, or after, January 1, 2026, or areas designated as national marine sanctuaries under the National Marine Sanctuaries Act as of, or after, January 1, 2026.
- Prohibit any leases and oil- and gas-related infrastructure located upon tidelands and submerged lands within state waters be used to support Pacific OCS leases issued after January 1, 2026.
- Require SLC to consider additional explicit factors when determining whether to approve a proposed lease assignment, renewal, modification, or amendment.
- Require, if the Commission on State Mandates determines that this bill contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made.
COMMENTS
The current Trump Administration has reversed a January 2025 drilling ban in the outer continental shelf (OCS) part of a new 11th National OCS Oil and Gas Leasing program (National OCS Leasing Program). All of the Pacific coast, including six potential sales off the coast of California, has been proposed for inclusion. In addition, citing time constraints, the US Bureau of Ocean Engineering Management has announced it is not preparing an environmental impact statement (EIS) for the 2026 – 2031 National OCS Leasing Program, unlike those that had been prepared previously for earlier 5-year programs, and is not intending to provide the public an opportunity to comment on a draft programmatic EIS specific to offshore California leasing.
Similar to previous recent attempts to reopen federal OCS oil and gas leasing offshore California, there is considerable opposition. The commission recently approved a resolution in opposition and Governor Newsom has stated his Administration's opposition.
According to the Author
AB 1448 aims to enhance the California SLC's authority to protect designated lands from the expansion of oil- and gas- related infrastructure.
Arguments in Support
In a joint sign-on letter, the Center for Biological Diversity and the Environmental Defense Center write, "AB1448 will safeguard our coast against federal attempts to unlawfully open federal waters to new oil leasing off California. The Trump Administration has pledged to drill everywhere and will undoubtedly seek to expand Pacific offshore drilling. Current gaps in state law leave untoward paths for federal oil expansion through existing infrastructure in state waters. AB1448 takes a firm stand against efforts to expand drilling off our coast, to protect against associated risks to California interests.
Moreover, AB1448 addresses the need to prevent aging infrastructure from expanded or prolonged use when it should be retired. Offshore oil infrastructure has outlived its lifespan and presents significant risks. This bill requires strict environmental considerations for the reactivation of oil projects that have been shut down. Recent oil spills off our coast are stark reminders of the need to decommission — not restart — antiquated infrastructure."
Arguments in Opposition
The State Building and Construction Trades Council of California write, "On the heels of several recent policy decisions that have led to the announced closures of two additional refineries in California, this bill seeks to cut off yet another source of domestic crude oil for our in-state refineries. Simply put, California and every Californian cannot afford this bill or policies like it, making it increasingly difficult and prohibitively expensive to operate refineries in-state."
FISCAL COMMENTS
According to the Senate Appropriations Committee to a previous version of the bill:
- Potential loss in annual rental revenue of an unknown amount, potentially in excess of $150,000, from offshore oil- and gas-related infrastructure leases to the extent the SLC or a local trustee denies one or more applications for a lease renewal, extension, amendment, assignment, or modification, as a result of the bill's requirements and conditions (General Fund). SLC collected approximately $949,000 in rental revenue from its approximately one dozen pipeline right-of-way leases in fiscal year 2023-24.
- By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, and by imposing additional duties on a local government with a certified LCP in processing and reviewing an application for a CDP, this bill imposes a state-mandated local program. These costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates (General Fund).
VOTES:
ASM NATURAL RESOURCES: 10-4-0
YES: Bryan, Connolly, Garcia, Haney, Kalra, Muratsuchi, Pellerin, Schultz, Wicks, Zbur
NO: Alanis, Ellis, Flora, Hoover
ASM APPROPRIATIONS: 11-3-1
YES: Wicks, Arambula, Calderon, Caloza, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache
NO: Dixon, Ta, Tangipa
ABS, ABST OR NV: Sanchez
ASSEMBLY FLOOR: 42-26-11
YES: Addis, Ahrens, Arambula, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Connolly, Elhawary, Fong, Gabriel, Garcia, Mark González, Haney, Harabedian, Hart, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Ortega, Papan, Pellerin, Celeste Rodriguez, Rogers, Schiavo, Schultz, Sharp-Collins, Solache, Stefani, Ward, Wicks, Zbur, Rivas
NO: Alanis, Ávila Farías, Bains, Carrillo, Castillo, Chen, DeMaio, Dixon, Ellis, Flora, Gallagher, Gipson, Jeff Gonzalez, Hadwick, Hoover, Lackey, Macedo, Patterson, Ransom, Michelle Rodriguez, Blanca Rubio, Sanchez, Soria, Ta, Tangipa, Wallis
ABS, ABST OR NV: Aguiar-Curry, Alvarez, Davies, Nguyen, Pacheco, Patel, Petrie-Norris, Quirk-Silva, Ramos, Valencia, Wilson
UPDATED
VERSION: August 4, 2026
CONSULTANT: Paige Brokaw / NAT. RES. / (916) 319-2092 FN: 0004169
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 1448 |
THIRD READING
Bill No: AB 1448
Author: Hart (D), et al.
Amended: 8/4/26 in Senate
Vote: 21
SENATE NATURAL RES. & WATER COMMITTEE: 4-3, 7/8/25
AYES: Limón, Allen, Laird, Stern
NOES: Seyarto, Grove, Hurtado
SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/29/25
AYES: Caballero, Cabaldon, Grayson, Richardson, Wahab
NOES: Seyarto, Dahle
SENATE NATURAL RES. & WATER COMMITTEE: 5-2, 6/9/26
AYES: Becker, Allen, Cabaldon, Laird, Reyes
NOES: Seyarto, Grove
ASSEMBLY FLOOR: 42-26, 6/4/25 - See last page for vote
SUBJECT: Coastal resources: California Coastal Sanctuary: tidelands and submerged lands: oil and gas development
SOURCE: Center for Biological Diversity
Environmental Defense Center
Oceana
DIGEST:
This bill modifies existing requirements for the transfer, assignment or modification of leases for oil and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases; prohibits leases and oil- and gas-related infrastructure located upon tidelands and submerged lands from being used to support Pacific Outer Continental Shelf leases issued after January 1, 2026; requires the State Lands Commission to consider additional explicit factors when determining whether to approve a proposed lease assignment, renewal, modification, or amendment; and limits the exception authorizing new oil- and gas-leasing on state tide and submerged lands within the California Coastal Sanctuary if state oil deposits are being drained from producing wells on federal lands to those areas not in the state’s marine protected areas or national marine sanctuaries, as provided.
Senate Floor Amendments of 8/4/26 reinstate the existing exception to the prohibition on the State Lands Commission’s issuance of new oil and gas leases on state tide and submerged lands when state oil deposits are being drained from producing wells upon adjacent federal lands and limit the exception to areas not in state marine protected areas or national marine sanctuaries; update references to federal Pacific Outer Continental Shelf leases issued after January 1, 2018 to January 1, 2026; provide additional explicit criteria for the State Lands Commission to consider when determining whether to approve the assignment of an existing oil and gas and mineral lease; and make additional conforming and technical changes.
ANALYSIS: Existing law:
- Establishes the California Coastal Sanctuary via the California Coastal Sanctuary Act of 1994. (California Coastal Sanctuary Act, Public Resources Code (PRC) §§6240 et seq.)
- Defines the California Coastal Sanctuary to include all state waters subject to tidal influence except those with a lease for the extraction of oil or gas in effect on January 1, 1995, unless the lease reverts to the state after January 1, 1995, and any state waters east of the Carquinez bridges on Interstate 80. (PRC §6242)
- Prohibits any state agency or officer to enter into any new lease for the extraction of oil or gas from the California Coastal Sanctuary unless certain limited conditions are met. (PRC §6243)
- Authorizes the State Lands Commission to enter into any lease for the extraction of oil or gas from state-owned tide and submerged lands in the California Coastal Sanctuary if the State Lands Commission 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 interests of the state. (PRC §6244)
- Defines, pursuant to the federal Outer Continental Shelf Lands Act, the outer continental shelf (OCS) as all submerged lands lying between the seaward extent of the state jurisdiction and the seaward extent of federal jurisdiction. (43 United States Code §§1331 et seq.)
- Provides the State Lands Commission with exclusive jurisdiction over all ungranted tidelands and submerged lands owned by the state which have been or may be acquired by the state, as provided. (PRC §6301)
- Prohibits the State Lands Commission or a local trustee from entering into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with OCS leases issued after January 1, 2018, with limited exceptions. (PRC §6245)
- Requires the State Lands Commission or local trustee, prior to approving any lease renewal, extension, amendment, or modification to authorize new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific OCS leases issued after January 1, 2018, to consider whether the lease renewal, extension, amendment, or modification is necessary to protect the marine environment or to ensure human health and safety; and other factors, as provided. (PRC §6245)
- Authorizes the State Lands Commission, in considering whether the approval of an assignment, transfer, or sublease of a lease or permit, to consider whether a proposed assignee is likely to comply with the terms of the lease or permit, as provided. (PRC §6804)
This bill:
- Limits the provision in the California Coastal Sanctuary Act that authorizes the State Lands Commission to enter into a lease for the extraction of oil or gas from state-owned tide and submerged lands if the State Lands Commission determines that those oil and gas deposits are being drained by producing wells upon adjacent federal lands and the lease is in the best interests of the state to those areas not in state marine protected areas or national marine sanctuaries.
- Prohibits the use of leases and oil- and gas-related infrastructure located upon tidelands and submerged lands within state waters to be used to support Pacific OCS leases issued after January 1, 2026, except as provided.
- Requires the State Lands Commission or local trustee before approving a lease renewal, extension, amendment, or modification for the operation of oil- and gas-related infrastructure on tide and submerged lands within state waters associated with Pacific OCS leases issued after January 1, 2026 to consider additional explicit factors, such as whether the lease renewal, extension, amendment or modification may impact public trust resources and values, among others, as provided.
- Specifies that an increase in the volume of oil and gas conveyed across state waters for the purposes of a lease renewal, extension, amendment, or modification includes by commencing, increasing, intensifying, or restarting production from the Pacific OCS, as provided.
- Requires the State Lands Commission to consider whether the approval of an assignment, transfer, or sublease of an oil and gas and mineral lease or sublease is in the best interests of the state and will protect the state’s public trust resources. Requires, instead of authorizes, the State Lands Commission to consider whether a proposed assignee is likely to comply with the terms of the lease or permit, as provided, including the following additional criteria:
- The proposed assignee’s history of accidents, including oil spills.
- Whether the proposed assignee has the capability and experience to protect the public trust resources and values of the state, as specified.
- Confirmation that the proposed assignee has submitted a bond to the State Lands Commission in an amount no less than the cost of decommissioning the assigned facilities, as provided.
- Makes various technical and conforming changes, and requires reimbursement to a local agency or school district if the Commission on State Mandates determines that this bill contains costs mandated by the state, as specified.
Comments
With the exception of the State Building and Construction Trades Council, the opposition is to earlier versions of this bill.
[NOTE: See the Senate Natural Resources and Water Committee analysis for additional information.]
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee to a previous version of the bill:
- Potential loss in annual rental revenue of an unknown amount, potentially in excess of $150,000, from offshore oil- and gas-related infrastructure leases to the extent the State Lands Commission (SLC) or a local trustee denies one or more applications for a lease renewal, extension, amendment, assignment, or modification, as a result of the bill’s requirements and conditions (General Fund). SLC collected approximately $949,000 in rental revenue from its approximately one dozen pipeline right-of-way leases in fiscal year 2023-24.
- By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, and by imposing additional duties on a local government with a certified LCP in processing and reviewing an application for a CDP, this bill imposes a state-mandated local program. These costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates (General Fund).
SUPPORT: (Verified 7/31/26)
Center for Biological Diversity (co-source)
Environmental Defense Center (co-source)
Oceana (co-source)
7th Generation Advisors
350 Bay Area Action
350 Hawaii
350 Humboldt
350 Sacramento
350 Santa Barbara
417 Poplar, LLC
Alliance of Nurses for a Healthy Environment
Amazon Watch
Amy Jeske Homes, Inc.
Animals Are Sentient Beings, Inc.
Azul
Ban SUP (Single Use Plastics)
Between the Waters
Bixby Residential
Border Grill Restaurants and Truck
Burea, Inc.
Business Alliance for Protecting the Pacific Coast
California Coastal Protection Network
California Coastkeeper Alliance
California Environmental Voters
California Land Watch
California Legislative Central Coast Caucus
California Marine Sanctuary Foundation
California Nurses for Environmental Health and Justice
California Outdoor Recreation Partnership
Center for Environmental Health
Center on Race, Poverty, and the Environment
Central Coast Climate Justice Network
Cerca Cultivation
Charlie Hong Kong
Citizens Planning Association
City and County of San Francisco
City of Encinitas
City of Goleta
City of Santa Barbara
CleanEarth4Kids.org
Clean Water Action
Climate Action California
Climate First: Replacing Oil and Gas
Climate Hawks Vote
Climate Health Now Action Fund
Climate Reality Project, San Diego
CLUE-SB Environmental Justice Group
Coastal Band of the Chumash Nation
Contra Costa MoveOn
County of Marin
County of San Mateo
County of Santa Barbara
Dana Wharf Sportfishing and Whale Watching
Dayenu: A Jewish Call to Climate Action
Defenders of Wildlife
E2
Earthwell Refill
Elected Officials to Protect America Code Blue
Environmental Law Club at UCSB
Environmental Action Committee of West Marin
Environmental Center of San Diego
Environmental Protection Information Center (EPIC)
EOPA Code Blue
Families Advocating for Chemical and Tech Safety (FACTS)
Field + Form
Fish On
Food & Water Watch
Friends Committee on Legislation of California
Friends of the Earth
FutureSwell
Get Oil Out!
Greenpeace USA
GreenLatinos
Green Policy Initiative
Groundzero
Heal the Bay
Heal the Ocean
Hubble Daily Architecture + Design
Humboldt Waterkeeper
Indivisible CA Green Team
Indivisible Santa Cruz County, Environmental Issues Team
International Marine Mammal Project, Earth Island Institute
Long Beach Alliance for Clean Energy
Los Angeles Waterkeeper
Los Padres ForestWatch
Mako Strategies
Media Alliance
Mercury Press, Inc.
Midsomman, LLC
Modo Yoga San Diego
Monterey Bay Aquarium
Monterey Waterkeeper
My Zero Waste Store
Nassau Hiking & Outdoor Club
Natural Resources Defense Council
North American Climate Conservation and Environment (NACCE)
Ocean Conservation Research
Oil and Gas Action Network
Orange County Coastkeeper
Pacific Catch
Pacific Coast Hidaway, LLC
Paddle for Peace
Page Events
Patagonia
Pesticide Action and Agroecology Network
Physicians for Social Responsibility, Los Angeles
Physicians for Social Responsibility, San Francisco Bay Chapter
Progressives for Climate
Project Kolika
Protect Ballona Wetlands
PuraVida Surf Shop, Inc.
Quabajai Coastal Chumash Keeper of the Western Gate
Resources Renewal Institute
Root Utility Netwwork
Sacred Places Institute for Indigenous Peoples
St. Joseph Justice Center
Salt + Noelle
San Diego 350
San Diego Coastkeeper
San Francisco Baykeeper
Santa Barbara Channelkeeper
Santa Barbara County Action Network
Santa Barbara Sportfishing
Santa Cruz Waves
Save Our Shores
Sea Forager
Sereia
Sierra Club California
Sierra Club, Santa Barbara Group
Sierra Club, Santa Lucia Chapter (San Luis Obispo County)
Sisters of Mercy of the Americas in California
SoCal 350 Climate Action
Society of Fearless Grandmothers of Santa Barbara
Soichi Sushi
Solano County Democratic Central Committee
Stardust Sportfishing
Sunflower Alliance
Surfrider Foundation
Surfrider Foundation – Isla Vista Club
Surfrider Foundation, Santa Barbara Chapter
Sustainable Rossmoor
The Climate Center
The Fund for Santa Barbara
The Green Room
The Refill Shoppe
Third Act SoCal
Transformative Wealth Management
Turtle Island Restoration Network
UCSB Environmental Affairs Board
United Nations Association – California
Ventura Coastkeeper
Vote Solar
West Coast Paddle Sports
Wild Beacon Consulting
Wishtoyo Chumash Foundation
Zero Hour
OPPOSITION: (Verified 7/31/26)
Central Valley Business Federation
IEEP
Kern Citizens of Energy
Kern County Economic Development Corporation
Kern County Taxpayers Association
Long Beach Area Chamber of Commerce
Los Angeles County Business Federation
Sable Offshore Corporation
SAGE Monterey
Santa Maria Valley Chamber
SBCTAC
SLO COLAB
South County Chamber
State Building and Construction Trades Council
Tri-County Chamber Alliance
VC Taxpayers Association
ARGUMENTS IN SUPPORT: According to the author, “AB 1448 aims to enhance the California State Lands Commission’s authority to protect designated lands from the expansion of oil- and gas- related infrastructure.”
In a joint sign-on letter, the Center for Biological Diversity and the Environmental Defense Center write, “AB1448 will safeguard our coast against federal attempts to unlawfully open federal waters to new oil leasing off California. The Trump Administration has pledged to drill everywhere and will undoubtedly seek to expand Pacific offshore drilling. Current gaps in state law leave untoward paths for federal oil expansion through existing infrastructure in state waters. AB1448 takes a firm stand against efforts to expand drilling off our coast, to protect against associated risks to California interests.
Moreover, AB1448 addresses the need to prevent aging infrastructure from expanded or prolonged use when it should be retired. Offshore oil infrastructure has outlived its lifespan and presents significant risks. This bill requires strict environmental considerations for the reactivation of oil projects that have been shut down. Recent oil spills off our coast are stark reminders of the need to decommission — not restart — antiquated infrastructure.”
ARGUMENTS IN OPPOSITION: Writing in opposition, the State Building and Construction Trades Council states, “On the heels of several recent policy decisions that have led to the announced closures of two additional refineries in California, this bill seeks to cut off yet another source of domestic crude oil for our in-state refineries. Simply put, California and every Californian cannot afford this bill or policies like it, making it increasingly difficult and prohibitively expensive to operate refineries in-state.”
“Californians are already struggling with an ever-increasing cost of living. Every additional refinery closure will lead to thousands of job losses and millions of dollars in revenue lost from essential state programs, result in a sharp increase in costs for every Californians. The Legislature has prioritized moving policies that lower consumer costs, diminish costs to the state, and keep California refineries viable until they are no longer needed., This bill, which carries legal liability in the billions, is antithetical to those goals.”
ASSEMBLY FLOOR: 42-26, 6/4/25
AYES: Addis, Ahrens, Arambula, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Connolly, Elhawary, Fong, Gabriel, Garcia, Mark González, Haney, Harabedian, Hart, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Ortega, Papan, Pellerin, Celeste Rodriguez, Rogers, Schiavo, Schultz, Sharp-Collins, Solache, Stefani, Ward, Wicks, Zbur, Rivas
NOES: Alanis, Ávila Farías, Bains, Carrillo, Castillo, Chen, DeMaio, Dixon, Ellis, Flora, Gallagher, Gipson, Jeff Gonzalez, Hadwick, Hoover, Lackey, Macedo, Patterson, Ransom, Michelle Rodriguez, Blanca Rubio, Sanchez, Soria, Ta, Tangipa, Wallis
NO VOTE RECORDED: Aguiar-Curry, Alvarez, Davies, Nguyen, Pacheco, Patel, Petrie-Norris, Quirk-Silva, Ramos, Valencia, Wilson
Prepared by: Katharine Moore / N.R. & W. / (916) 651-4116
8/5/26 16:20:52
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 1448 |
THIRD READING
Bill No: AB 1448
Author: Hart (D), et al.
Amended: 4/28/26 in Senate
Vote: 21
SENATE NATURAL RES. & WATER COMMITTEE: 4-3, 7/8/25
AYES: Limón, Allen, Laird, Stern
NOES: Seyarto, Grove, Hurtado
SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/29/25
AYES: Caballero, Cabaldon, Grayson, Richardson, Wahab
NOES: Seyarto, Dahle
SENATE NATURAL RES. & WATER COMMITTEE: 5-2, 6/9/26
AYES: Becker, Allen, Cabaldon, Laird, Reyes
NOES: Seyarto, Grove
ASSEMBLY FLOOR: 42-26, 6/4/25 - See last page for vote
SUBJECT: Coastal resources: California Coastal Sanctuary: tidelands and submerged lands: oil and gas development
SOURCE: Center for Biological Diversity
Environmental Defense Center
Oceana
DIGEST:
This bill expands upon existing requirements for the transfer or modification of leases for oil and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases to include lease assignments; prohibits leases and oil- and gas-related infrastructure located upon tidelands and submerged lands from being used to support Pacific Outer Continental Shelf leases issued after January 1, 2026; and removes the exception authorizing new oil- and gas-leasing in state waters within the California Coastal Sanctuary if state oil deposits are being drained from wells on federal lands, as provided.
ANALYSIS:
Existing law:
- Establishes the California Coastal Sanctuary via the California Coastal Sanctuary Act of 1994. (California Coastal Sanctuary Act, Public Resources Code (PRC) §§6240 et seq.)
- Defines the California Coastal Sanctuary to include all state waters subject to tidal influence except those with a lease for the extraction of oil or gas in effect on January 1, 1995, unless the lease reverts to the state after January 1, 1995, and any state waters east of the Carquinez bridges on Interstate 80. (PRC §6242)
- Prohibits any state agency or officer to enter into any new lease for the extraction of oil or gas from the California Coastal Sanctuary unless certain limited conditions are met. (PRC §6243)
- Authorizes the State Lands Commission to enter into any lease for the extraction of oil or gas from state-owned tide and submerged lands in the California Coastal Sanctuary if the State Lands Commission 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 interests of the state. (PRC §6244)
- Defines, pursuant to the federal Outer Continental Shelf Lands Act, the outer continental shelf (OCS) as all submerged lands lying between the seaward extent of the state jurisdiction and the seaward extent of federal jurisdiction. (43 United States Code §§1331 et seq.)
- Provides the State Lands Commission with exclusive jurisdiction over all ungranted tidelands and submerged lands owned by the state which have been or may be acquired by the state, as provided. (PRC §6301)
- Prohibits the State Lands Commission or a local trustee from entering into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with OCS leases issued after January 1, 2018, with limited exceptions. (PRC §6245)
- Requires the State Lands Commission or local trustee, prior to approving any lease renewal, extension, amendment, or modification to authorize new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific OCS leases issued after January 1, 2018, to consider whether the lease renewal, extension, amendment, or modification is necessary to protect the marine environment or to ensure human health and safety; and other factors, as provided. (PRC §6245)
- Authorizes the State Lands Commission, in considering whether the approval of an assignment, transfer, or sublease of a lease or permit, to consider whether a proposed assignee is likely to comply with the terms of the lease or permit, as provided. (PRC §6804)
This bill:
- Deletes from the California Coastal Sanctuary Act the provision that authorizes the State Lands Commission to enter into a lease for the extraction of oil or gas from state-owned tide and submerged lands if the State Lands Commission determines that those oil and gas deposits are being drained by producing wells upon adjacent federal lands and the lease is in the best interests of the state.
- Prohibits the use of leases and oil- and gas-related infrastructure located upon tidelands and submerged lands within state waters to be used to support Pacific Outer Continental Shelf leases issued after January 1, 2026, except as provided.
- Adds an application for a lease assignment for oil and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to existing State Lands Commission or local trustee public notice requirements, as provided.
- Removes the requirement that the application is to authorize only new construction of oil and gas-related infrastructure.
- Requires the State Lands Commission or local trustee to take no further action to approve the requested lease assignment until 180 days after public notification, as provided.
- Adds lease assignment to the existing process the State Lands Commission or local trustee undertake before approving a lease renewal, extension, amendment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with OCS leases issued after January 1, 2018. Removes the requirement that the application is to authorize new construction of oil and gas-related infrastructure. Requires the State Lands Commission or local trustee to additionally consider various factors, such as, whether the lease renewal, extension, amendment, assignment, or modification may impact public trust resources and values, among other factors.
- Prohibits the approval of a lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific OCS at the same properly noticed public meeting it is first presented at. Requires the State Lands Commission or local trustee to accept public comments.at the meeting it votes to approve or disapprove the lease assignment.
- Requires that the approval of an assignment, transfer, or sublease of a lease or permit is in the best interest of the state, as provided.
- Makes various technical changes, and requires reimbursement to a local agency or school district if the Commission on State Mandates determines that this bill contains costs mandated by the state, as specified.
Comments
With the exception of the State Building and Construction Trades Council, the opposition is to earlier versions of this bill.
[NOTE: See the Senate Natural Resources and Water Committee analysis for additional information.]
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee to a previous version of the bill:
- Potential loss in annual rental revenue of an unknown amount, potentially in excess of $150,000, from offshore oil- and gas-related infrastructure leases to the extent the State Lands Commission (SLC) or a local trustee denies one or more applications for a lease renewal, extension, amendment, assignment, or modification, as a result of the bill’s requirements and conditions (General Fund). SLC collected approximately $949,000 in rental revenue from its approximately one dozen pipeline right-of-way leases in fiscal year 2023-24.
- By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, and by imposing additional duties on a local government with a certified LCP in processing and reviewing an application for a CDP, this bill imposes a state-mandated local program. These costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates (General Fund).
SUPPORT: (Verified 6/16/26)
Center for Biological Diversity (co-sponsor)
Environmental Defense Center (co-sponsor)
Oceana (co-sponsor)
7th Generation Advisors
350 Bay Area Action
350 Hawaii
350 Humboldt
350 Sacramento
350 Santa Barbara
417 Poplar, LLC
Alliance of Nurses for a Healthy Environment
Amazon Watch
Amy Jeske Homes, Inc.
Animals Are Sentient Beings, Inc.
Azul
Ban SUP (Single Use Plastics)
Between the Waters
Bixby Residential
Border Grill Restaurants and Truck
Burea, Inc.
Business Alliance for Protecting the Pacific Coast
California Coastal Protection Network
California Coastkeeper Alliance
California Environmental Voters
California Land Watch
California Legislative Central Coast Caucus
California Marine Sanctuary Foundation
California Nurses for Environmental Health and Justice
California Outdoor Recreation Partnership
Center for Environmental Health
Center on Race, Poverty, and the Environment
Central Coast Climate Justice Network
Cerca Cultivation
Charlie Hong Kong
Citizens Planning Association
City of Goleta
City of Santa Barbara
CleanEarth4Kids.org
Clean Water Action
Climate Action California
Climate First: Replacing Oil and Gas
Climate Hawks Vote
Climate Health Now Action Fund
Climate Reality Project, San Diego
CLUE-SB Environmental Justice Group
Coastal Band of the Chumash Nation
Contra Costa MoveOn
County of Santa Barbara
Dana Wharf Sportfishing and Whale Watching
Dayenu: A Jewish Call to Climate Action
Defenders of Wildlife
E2
Earthwell Refill
Elected Officials to Protect America Code Blue
Environmental Law Club at UCSB
Environmental Action Committee of West Marin
Environmental Center of San Diego
Environmental Protection Information Center (EPIC)
EOPA Code Blue
Families Advocating for Chemical and Tech Safety (FACTS)
Field + Form
Fish On
Food & Water Watch
Friends Committee on Legislation of California
Friends of the Earth
FutureSwell
Get Oil Out!
Greenpeace USA
GreenLatinos
Green Policy Initiative
Groundzero
Heal the Bay
Heal the Ocean
Hubble Daily Architecture + Design
Humboldt Waterkeeper
Indivisible CA Green Team
Indivisible Santa Cruz County, Environmental Issues Team
International Marine Mammal Project, Earth Island Institute
Long Beach Alliance for Clean Energy
Los Angeles Waterkeeper
Los Padres ForestWatch
Mako Strategies
Media Alliance
Mercury Press, Inc.
Midsomman, LLC
Modo Yoga San Diego
Monterey Bay Aquarium
Monterey Waterkeeper
My Zero Waste Store
Nassau Hiking & Outdoor Club
Natural Resources Defense Council
North American Climate Conservation and Environment (NACCE)
Ocean Conservation Research
Oil and Gas Action Network
Orange County Coastkeeper
Pacific Catch
Pacific Coast Hidaway, LLC
Paddle for Peace
Page Events
Patagonia
Pesticide Action and Agroecology Network
Physicians for Social Responsibility, Los Angeles
Physicians for Social Responsibility, San Francisco Bay Chapter
Progressives for Climate
Project Kolika
Protect Ballona Wetlands
PuraVida Surf Shop, Inc.
Quabajai Coastal Chumash Keeper of the Western Gate
Resources Renewal Institute
Root Utility Netwwork
Sacred Places Institute for Indigenous Peoples
Salt + Noelle
San Diego 350
San Diego Coastkeeper
San Francisco Baykeeper
Santa Barbara Channelkeeper
Santa Barbara County Action Network
Santa Barbara Sportfishing
Santa Cruz Waves
Save Our Shores
Sea Forager
Sereia
Sierra Club California
Sierra Club, Santa Barbara Group
Sierra Club, Santa Lucia Chapter (San Luis Obispo County)
Sisters of Mercy of the Americas in California
SoCal 350 Climate Action
Society of Fearless Grandmothers of Santa Barbara
Soichi Sushi
Solano County Democratic Central Committee
Stardust Sportfishing
Sunflower Alliance
Surfrider Foundation
Surfrider Foundation – Isla Vista Club
Surfrider Foundation, Santa Barbara Chapter
Sustainable Rossmoor
The Climate Center
The Fund for Santa Barbara
The Green Room
The Refill Shoppe
Third Act SoCal
Transformative Wealth Management
Turtle Island Restoration Network
UCSB Environmental Affairs Board
United Nations Association – California
Ventura Coastkeeper
Vote Solar
West Coast Paddle Sports
Wild Beacon Consulting
Wishtoyo Chumash Foundation
Zero Hour
OPPOSITION: (Verified 6/16/26)
Central Valley Business Federation
IEEP
Kern Citizens of Energy
Kern County Economic Development Corporation
Kern County Taxpayers Association
Long Beach Area Chamber of Commerce
Los Angeles County Business Federation
Sable Offshore Corporation
SAGE Monterey
Santa Maria Valley Chamber
SBCTAC
SLO COLAB
South County Chamber
State Building and Construction Trades Council
Tri-County Chamber Alliance
VC Taxpayers Association
ARGUMENTS IN SUPPORT: According to the author, “AB 1448 aims to enhance the California State Lands Commission’s authority to protect designated lands from the expansion of oil- and gas- related infrastructure.”
In a joint sign-on letter, the Center for Biological Diversity and the Environmental Defense Center write, “AB1448 will safeguard our coast against federal attempts to unlawfully open federal waters to new oil leasing off California. The Trump Administration has pledged to drill everywhere and will undoubtedly seek to expand Pacific offshore drilling. Current gaps in state law leave untoward paths for federal oil expansion through existing infrastructure in state waters. AB1448 takes a firm stand against efforts to expand drilling off our coast, to protect against associated risks to California interests.
Moreover, AB1448 addresses the need to prevent aging infrastructure from expanded or prolonged use when it should be retired. Offshore oil infrastructure has outlived its lifespan and presents significant risks. This bill requires strict environmental considerations for the reactivation of oil projects that have been shut down. Recent oil spills off our coast are stark reminders of the need to decommission — not restart — antiquated infrastructure.”
ARGUMENTS IN OPPOSITION: Writing in opposition, the State Building and Construction Trades Council states, “On the heels of several recent policy decisions that have led to the announced closures of two additional refineries in California, this bill seeks to cut off yet another source of domestic crude oil for our in-state refineries. Simply put, California and every Californian cannot afford this bill or policies like it, making it increasingly difficult and prohibitively expensive to operate refineries in-state.”
“Californians are already struggling with an ever-increasing cost of living. Every additional refinery closure will lead to thousands of job losses and millions of dollars in revenue lost from essential state programs, result in a sharp increase in costs for every Californians. The Legislature has prioritized moving policies that lower consumer costs, diminish costs to the state, and keep California refineries viable until they are no longer needed., This bill, which carries legal liability in the billions, is antithetical to those goals.”
ASSEMBLY FLOOR: 42-26, 6/4/25
AYES: Addis, Ahrens, Arambula, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Connolly, Elhawary, Fong, Gabriel, Garcia, Mark González, Haney, Harabedian, Hart, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Ortega, Papan, Pellerin, Celeste Rodriguez, Rogers, Schiavo, Schultz, Sharp-Collins, Solache, Stefani, Ward, Wicks, Zbur, Rivas
NOES: Alanis, Ávila Farías, Bains, Carrillo, Castillo, Chen, DeMaio, Dixon, Ellis, Flora, Gallagher, Gipson, Jeff Gonzalez, Hadwick, Hoover, Lackey, Macedo, Patterson, Ransom, Michelle Rodriguez, Blanca Rubio, Sanchez, Soria, Ta, Tangipa, Wallis
NO VOTE RECORDED: Aguiar-Curry, Alvarez, Davies, Nguyen, Pacheco, Patel, Petrie-Norris, Quirk-Silva, Ramos, Valencia, Wilson
Prepared by: Katharine Moore / N.R. & W. / (916) 651-4116
6/17/26 16:28:16
**** END ****
SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
Senator Josh Becker, Chair
2025 - 2026 Regular
Bill No: AB Hearing Date: June 9, 2026
Author: | |||
Version: | Amended | ||
Urgency: | Fiscal: | ||
Consultant: | |||
Subject: Coastal resources: California Coastal Sanctuary: tidelands and submerged lands: oil and gas development
SUMMARY
This bill would expand upon existing requirements for the transfer or modification of leases for oil and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases to include lease assignments, prohibit leases and oil- and gas-related infrastructure located upon tidelands and submerged lands from being used to support Pacific Outer Continental Shelf leases issued after January 1, 2026, and remove the exception authorizing new oil- and gas-leasing in state waters within the California Coastal Sanctuary if state oil deposits are being drained from wells on federal lands, as provided.
BACKGROUND AND EXISTING LAW
California’s coastal economy.
Over 150 million visitors annually enjoy California’s coastline. According to Oceana, nearly 600,000 jobs and over $42 billion in GDP rely on clean beaches and a healthy ocean. According to a 2024 report by the National Oceanic and Atmospheric Administration, coastal tourism and recreation produced 47% of GDP and 67% of the employment of California’s marine economy. In comparison, mineral resources offshore, produced only 5% of GDP and 1% of employment.
Oil and gas production in California.
According to the US Energy Information Administration, California ranked 8th in oil production among the 50 states at about 113 million barrels[1] in 2024. That year, the majority of the state’s oil production is from onshore fields in Kern County, and an estimated 4 – 5%[2] (about 5 million barrels) was produced in fields offshore Los Angeles and Orange Counties within the state’s jurisdiction. Associated gas is produced with the oil from many fields, and there is gas production alone from some fields, particularly farther north in the state.
In addition, oil and gas are produced from federal Outer Continental Shelf (OCS) waters offshore California. In general, state waters extend out 3 miles from the state’s coastline, and federal waters are beyond that. The figure on page 2 shows federal OCS offshore production from 1968 through 2022[3]. Note that production peaked in the mid-1990s and has been falling since. Production decreased notably following the major 2015 Refugio Beach oil spill of 140,000 gallons offshore Gaviota due to a corroded pipeline that the federal government recently ordered to return to service despite the pipeline not meeting previously-agreed upon safety requirements, lack of state and local permitting, court injunctions against re-start without notice and other conditions being met, and other litigation, among other numerous issues. Note additionally that in 2021 the major oil spill of approximately 25,000 gallons off of Huntington Beach from a pipeline in federal waters further decreased federal OCS production to about 2.7 million barrels per year.
Offshore oil and gas production in state and federal waters
According to the State Lands Commission (commission), the Legislature, beginning in 1921 and repeatedly since, has passed laws that exclude offshore areas of the state from oil and gas leasing.
According to the commission, it issued over fifty offshore oil and gas leases between 1938 and 1968. In general, lease terms provide for the leases to remain in effect so long as oil and gas production continues in paying or commercial quantities. When production ceases, a lease should be quitclaimed back to the commission once the infrastructure has been removed and the lease terms satisfied.
In January 1969 – only 2 years after federal OCS leasing began, a blowout occurred on a well drilled from one of the platforms in federal waters off of Santa Barbara which resulted in a spill of approximately 3 – 4 million gallons of crude oil. This spill oiled two hundred square miles of ocean and thirty-five miles of state coastline, and killed thousands of animals. The commission has not issued any new oil and gas leases since. The 1969 Santa Barbara oil spill was the largest in the nation until the Deepwater Horizon spill in the Gulf of Mexico in 2010.
Existing law establishes the commission in the California Natural Resources Agency. The commission has exclusive jurisdiction over ungranted tidelands and submerged lands owned by the state. The commission has had exclusive jurisdiction over the leasing of offshore state lands for oil and gas production since 1938. The commission also issues right-of-way leases for pipelines necessary to support offshore OCS oil and gas infrastructure, and onshore oil and gas infrastructure located in tidelands may also require a commission lease. The powers of the commission as to the leasing or granting of rights or privileges to lands owned by the state may also be conferred upon a local trustee of granted public trust lands to which those lands have been granted.
Existing law establishes the California Coastal Sanctuary Act of 1994 (California Coastal Sanctuary Act)(Public Resources Code (PRC) §§6240 et seq.) which extended the then-California coastal sanctuary and removed the authority of the commission to issue new oil and gas leases for unleased tide and submerged lands underlying the Pacific Ocean with limited exceptions – in the event of an energy supply emergency resulting in certain government actions, as specified, and if a state oil and gas reservoir is being drained from federal waters. Legislative findings state 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.” (PRC §6241)
There is at least one oil field under both state and federal waters. Tranquillon Ridge is located off Vandenberg Space Base. In the last two decades there have been at least a few attempts to produce that oil using new oil drilling techniques from the state or federal side. These attempts have all generated opposition, and none have ultimately succeeded.
Existing law establishes the federal Outer Continental Shelf Lands Act (OCSLA) (43 U.S.C. §§1331 et seq.) defines the OCS as all submerged lands lying between the seaward extent of the state jurisdiction and the seaward extent of federal jurisdiction.
The OCSLA declares, among other things, that it is the national 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.
There are 30 existing active oil and gas leases under the OCSLA in federal waters offshore California. The leases cover approximately 153,000 acres and include 23 oil and gas platforms and hundreds of miles of pipeline. Of the 23 platforms, 20 are used for oil and gas production, one is used for processing, and two (Gail and Grace) are beginning the process of decommissioning. All 23 of the platforms are located off southern California (primarily offshore Santa Barbara, but also Ventura, Los Angeles, and Orange Counties).
The U.S. Department of Interior (DOI) is required to prepare, periodically revise, and maintain an oil and gas leasing program that consists of a schedule or proposed lease sales indicating, as precisely as possible, the size, timing, and location of leasing activity that DOI determines will best meet national energy needs for the five-year period following its approval or re-approval.
Priority leasing considerations are provided 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.
The federal government imposed a moratorium on new leases in federal waters off of California in 1984. In 1990, President George H. W. Bush prevented leases from being issued in federal OCS waters offshore California and other states for 10 years under the OCSLA. President Bill Clinton extended this freeze through 2012. President George W. Bush, however, terminated the freeze in 2008, but no new leases were subsequently issued. President Barack Obama instituted a moratorium on new leases under the OCSLA from December 2016 through 2022.
However, in January 2018, the Trump Administration announced plans to reopen the then-current federal leasing plan and specifically included all of the California OCS in its initial proposal. Then-DOI Secretary Zinke stated in testimony before the U.S. Senate that he doubted that oil and gas exploration would occur in the Pacific region.
The potential reopening of federal OCS oil and gas leasing off the coast in the first Trump Administration generated considerable immediate resistance in California. Numerous state entities and elected officials, including state legislators, opposed the proposed leasing. The Legislature passed two bills to restrict the commission’s ability to approve new or modify existing state tidelands leases to support new federal OCS leases (SB 834 (Jackson, Chapter 309, Statutes of 2018) and AB 1775 (Muratsuchi, Chapter 310, Statutes of 2018)).
Many factors were cited in opposing renewed oil and gas operations offshore in the federal OCS. These include identified flaws in the process currently being following by federal authorities, insignificant benefit of increased OCS oil and gas production to the state, significant risks to the coastal economy (including to tourism, recreation, and fisheries, among other things), significant risks to the environment (including marine protected areas), and scenic and other values, lack of apparent industry interest, changes to the energy markets, and climate change, among other things.
The efforts during the first Trump Administration to return to offshore federal OCS leasing off California waters eventually failed. The subsequent Biden Administration removed offshore California and the rest of the Pacific coast from future federal OCS oil and gas leasing permanently in January 2025 citing the need to protect the region from the risk of oil spills that would do little to meet the nation’s energy needs. The 2024 – 2029 federal OCS oil and gas leasing program developed during the Biden Administration focused new oil and gas leasing in the Gulf of Mexico only.
The second Trump Administration has moved to reverse the January 2025 drilling ban as part of a new 11th National OCS Oil and Gas Leasing program (National OCS Leasing Program). All of the Pacific coast, including six potential sales off the coast of California, has been proposed for inclusion. In addition, citing time constraints, the US Bureau of Ocean Engineering Management (BOEM) has announced it is not preparing an environmental impact statement (EIS) for the 2026 – 2031 National OCS Leasing Program, unlike those that had been prepared previously for earlier 5-year programs, and is not intending to provide the public an opportunity to comment on a draft programmatic EIS specific to offshore California leasing[4].
Similar to previous recent attempts to reopen federal OCS oil and gas leasing offshore California, there is considerable opposition. The commission recently approved a resolution in opposition and Governor Newsom has stated his Administration’s opposition.
Existing law:
- Establishes the California Coastal Sanctuary via the California Coastal Sanctuary Act. (PRC §§6240 et seq.)
- Defines the California Coastal Sanctuary to include all state waters subject to tidal influence except those with a lease for the extraction of oil or gas in effect on January 1, 1995, unless the lease reverts to the state after January 1, 1995, and any state waters east of the Carquinez bridges on Interstate 80. (PRC §6242)
- Prohibits any state agency or officer from entering into any new lease for the extraction of oil or gas from the California Coastal Sanctuary unless certain limited conditions are met. (PRC §6243)
- Authorizes the commission to enter into any lease for the extraction of oil or gas from state-owner tide and submerged lands in the California Coastal Sanctuary if commission 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 interests of the state. (PRC §6244)
- Establishes the commission in the California Natural Resources Agency. (PRC §6101)
- Defines, pursuant to the federal OCSLA, the OCS as all submerged lands lying between the seaward extent of the state jurisdiction and the seaward extent of federal jurisdiction. (43 United States Code §§1331 et seq.)
- Provides the commission with exclusive jurisdiction over all ungranted tidelands and submerged lands owned by the state which have been or may be acquired by the state, as provided. All jurisdiction and authority remaining in the state as to tidelands and submerged lands as to which grants have been or may be made is vested in the commission. (PRC §6301)
- Prohibits the commission or a local trustee from entering into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with OCS leases issued after January 1, 2018, with limited exceptions. (PRC §6245)
- Requires the commission or local trustee, prior to approving any lease renewal, extension, amendment, or modification to authorize new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific OCS leases issued after January 1, 2018, to consider whether the lease renewal, extension, amendment, or modification is necessary to protect the marine environment or to ensure human health and safety; and other factors, as provided. (PRC §6245)
- Authorizes the commission, in considering whether the approval of an assignment, transfer, or sublease of a lease or permit, to consider whether a proposed assignee is likely to comply with the terms of the lease or permit, as provided. (PRC §6804)
PROPOSED LAW
This bill would:
- Delete from the California Coastal Sanctuary Act the provision that authorizes the commission to enter into a lease for the extraction of oil or gas from state-owned tide and submerged lands if the commission determines that those oil and gas deposits are being drained by producing wells upon adjacent federal lands and the lease is in the best interests of the state.
- Prohibit the use of leases and oil- and gas-related infrastructure located upon tidelands and submerged lands within state waters to be used to support Pacific OCS leases issued after January 1, 2026, except as provided.
- Add an application for a lease assignment for oil and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific OCS leases issued after January 1, 2018, to existing commission or local trustee public notice requirements, as provided.
- Remove the requirement that the application is to authorize only new construction of oil and gas-related infrastructure.
- Require the commission or local trustee to take no further action to approve the requested lease assignment until 180 days after public notification, as provided.
- Add lease assignment to the existing process the commission or local trustee undertake before approving a lease renewal, extension, amendment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific OCS leases issued after January 1, 2018. Remove the requirement that the application is to authorize new construction of oil and gas-related infrastructure. Require the commission or local trustee to additionally consider, at a minimum:
- Whether the lease renewal, extension, amendment, assignment, or modification may impact public trust resources and values.
- Whether the lease renewal, extension, amendment, assignment, or modification is for, or connected to, infrastructure that has experienced a reportable incident, such as an oil spill.
- Whether the lease renewal, extension, amendment, assignment, or modification is related to the use of well stimulation treatments, extended reach drilling and production, horizontal drilling and production, or other unconventional drilling and production techniques for resource extraction.
- Whether the operator has provided finalized certificates of financial responsibility obtained from the Office of Spill Prevention and Response and has provided financial assurances required for decommissioning, as specified.
- Prohibit the approval of a lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific OCS at the same properly noticed public meeting it is first presented at. Require the commission or local trustee to accept public comments.at the meeting it votes to approve or disapprove the lease assignment.
- Require that the approval of an assignment, transfer, or sublease of a lease or permit is in the best interest of the state, as provided.
- Make various technical changes, and require reimbursement to a local agency or school district if the Commission on State Mandates determines that this bill contains costs mandated by the state, as specified.
ARGUMENTS IN SUPPORT
According to the author, “Despite the hard-learned lessons from devastating oil spills, threats to our coast continue. Assembly Bill 1448 will protect our precious coast by strengthening environmental protections and safety requirements for offshore drilling activities. The bill prohibits the use of existing infrastructure to support new federal offshore development, closes a gap in the existing ban on offshore drilling in state waters, and requires the State Lands Commission to consider additional environmental and safety factors when renewing leases or allowing transfers. AB 1448 ensures that our marine resources and coastal communities are protected against efforts to expand offshore oil drilling. We must do everything we can to protect our coast.”
E2 adds “[AB 1448] strengthens transparency, improves accountability, and protects the coastal economy from risks that businesses cannot afford. […] A clean coast is not only an environmental priority, it is our economic engine.”
ARGUMENTS IN OPPOSITION
Writing in opposition, the State Building and Construction Trades Council states, “On the heels of several recent policy decisions that have led to the announced closures of two additional refineries in California, this bill seeks to cut off yet another source of domestic crude oil for our in-state refineries. Simply put, California and every Californian cannot afford this bill or policies like it, making it increasingly difficult and prohibitively expensive to operate refineries in-state.”
“Californians are already struggling with an ever-increasing cost of living. Every additional refinery closure will lead to thousands of job losses and millions of dollars in revenue lost from essential state programs, result in a sharp increase in costs for every Californians. The Legislature has prioritized moving policies that lower consumer costs, diminish costs to the state, and keep California refineries viable until they are no longer needed., This bill, which carries legal liability in the billions, is antithetical to those goals.”
COMMENTS
Rule 29.10b. This bill was substantially amended on the Senate floor and returned to this Committee for rehearing under Senate Rule 29.10b. Under that rule, the Committee cannot amend the bill, but can make recommendations for amendments to the author.
Federal offshore oil proposal may threaten military readiness. According to a May 22, 2026 report in the Washington Post, the initially proposed offshore oil leasing areas by the Trump Administration overlap with critical US military training and operations areas off both the California and Gulf of Mexico coasts. The final proposals have not yet been released.
BOEM taking steps to rescind additional offshore bonding requirements. In February 2024, the US Government Accountability Office released a report that found that the DOI needed to improve offshore OCS decommissioning enforcement and mitigate related risks. It found that the DOI held only about $3.5 billion in bonds against about $40 - $70 billion of potential decommissioning costs. BOEM recently announced that the additional bonding requirements imposed following the study would be rescinded.
Fracking in federal waters offshore California. In March 2026, BOEM issued a Notice of Intent to prepare an EIS for a proposed update to the Santa Clara Unit development and production plan, which would include the use of hydraulic fracturing of 16 existing wells at Platform Gilda (offshore Ventura County). Onshore and offshore in state waters fracking of oil and gas wells is illegal in California. At least one previous EIS for an offshore California OCS lease was found by a court to treat fracking inadequately.
Sable Offshore. On March 13, 2026, President Trump signed an Executive Order delegating authority to the Secretary of the US Department of Energy to invoke the Defense Production Act in the event of an energy emergency, among other provisions. Secretary Wright subsequently ordered the Santa Ynez Unit offshore California to restart production, including using the pipeline that was the source of the 2015 Refugio Beach oil spill. The ability to restart production by Sable Offshore was already the subject of litigation between multiple state and federal entities, environmental advocates, and Sable Offshore. Subsequently to Secretary Wright’s actions, the California Department of Parks and Recreation (State Parks) rejected Sable Offshore’s application to use pipeline placed through Gaviota State Park and ordered Sable Offshore to “immediately remove” the pipeline. On March 16, 2026, the commission voted to join litigation against the Executive Order and to consider taking action to terminate its leases that Sable Offshore operates under. On March 19, 2026, the California Coastal Commission wrote a letter to Sable Offshore stating that it needed a coastal development permit to re-start the pipeline and that its actions to re-start the pipeline were likely in violation of two separate court injunctions.
In late May, a federal judge rejected State Parks’ request for a preliminary injunction.
According to news reports, Sable Offshore plans to produce up to 50,000 barrels of oil per day.
A Note on the Letters. As noted above, this bill was substantially amended – but not gut-and-amended – on the Senate floor, and the bill’s general intent remains largely unchanged from previous versions. In view of this, support and opposition were retained from previous bill versions. While virtually all of the listed supporters have reaffirmed their support with recent letters, only the State Building and Construction Trades Council has reaffirmed its opposition.
Recent related legislation
SJR 12 (Laird, 2026) would declare the Legislature’s strong and unequivocal opposition to the proposed leasing of federal lands offshore California for oil and gas development given the risks to coastal resources, recreation and economy, and the Legislature’s commitment to take action to maintain the existing prohibition on new federal leasing; and request the BOEM hold public meetings in the state in advance of any proposed leasing to receive input and prepare an appropriate environmental document for the proposed leasing, among other provisions. (This resolution is pending hearing before the Assembly Natural Resources Committee.)
SB 542 (Limón, 2025) would prohibit the restart of an existing oil pipeline that has not been in use for five or more years from being restarted without a hydro test in order to reduce the risk of an oil spill upon returning to service, among other provisions. (This bill is on the inactive file on the Assembly floor.)
SB 237 (Grayson, Chapter 118, Statutes of 2025), among other provisions, requires the Office of Oil Spill Prevention and Response to update its requirements for facilities, including pipelines, updates oil pipeline requirements, and clarifies the California Coastal Commission’s authority over oil development in the coastal zone.
SJR 12 (Min, Chapter 174, Resolutions of 2024) urges the President of the United States and the United States Congress to modify bankruptcy rules to provide, in the event of liquidation and termination of oil and gas leases under the United States Bankruptcy Code, that priority is given to plug and abandonment and restoration obligations, to protect the environment, over all secured creditor claims.
SB 559 (Min, 2023) would have required the commission to terminate its leases that authorize oil and gas production in state waters if voluntary relinquishment cannot be negotiated, including the payment of fair compensation, as provided. (This bill was held on the Senate Appropriations Committee suspense file.)
SB 1030 (Limón, 2022) would have revised provisions of the Elder California Pipeline Safety Act of 1981 by removing an exemption from the definition of "pipeline," authorizing the State Fire Marshal to require the operator of a pipeline to maintain records, make reports, and provide information, as specified, and would have authorized the State Fire Marshal to disclose certain records, as provided, among other provisions. (This bill was placed on the inactive file on the Assembly floor.)
SB 704 (Min, Chapter 292, Statutes of 2023) removes oil and gas production from the coastal industrial use override provisions in the California Coastal Act.
SB 953 (Min, 2022) would have required the commission to terminate its leases that authorize oil and gas production in state waters if voluntary relinquishment could not be negotiated, including the payment of fair compensation, as specified. (This bill was held on the Senate Appropriations Committee suspense file.)
AB 585 (Limón, Chapter 123, Statutes of 2019) authorizes the commission, when considering the approval of an assignment, transfer, or sublet of an oil and gas lease, to consider whether a proposed assignee is likely to comply with the provisions of the assigned, transferred, or sublet lease for the duration of the lease term, among other requirements.
SB 834 (Jackson, Chapter 309, Statutes of 2018) bars the commission from issuing new leases or amending or renewing existing leases to facilitate oil or gas exploration, development, and production for new leases in federal waters.
AB 1775 (Muratsuchi, Chapter 310, Statutes of 2018) bars the commission from issuing new leases or amending or renewing existing leases to facilitate oil or gas exploration, development, and production for new leases in federal waters.
SB 788 (McGuire, 2015) would have removed the drainage exception – if federal leases are draining a state-owned oil and gas pool – to the California Coastal Sanctuary Act so the commission could no longer issue new leases in that instance. (This bill was held on the Assembly Appropriations Committee suspense file.)
SUGGESTED AMENDMENTS: none
SUPPORT
Center for Biological Diversity (co-sponsor)
Environmental Defense Center (co-sponsor)
Oceana (co-sponsor)
7th Generation Advisors
350 Bay Area Action
350 Hawaii
350 Humboldt
350 Sacramento
350 Santa Barbara
417 Poplar, LLC
Alliance of Nurses for a Healthy Environment
Amazon Watch
Amy Jeske Homes, Inc.
Animals Are Sentient Beings, Inc.
Azul
Ban SUP (Single Use Plastics)
Between the Waters
Bixby Residential
Border Grill Restaurants and Truck
Burea, Inc.
Business Alliance for Protecting the Pacific Coast
California Coastal Protection Network
California Coastkeeper Alliance
California Environmental Voters
California Land Watch
California Legislative Central Coast Caucus
California Marine Sanctuary Foundation
California Nurses for Environmental Health and Justice
California Outdoor Recreation Partnership
Center for Environmental Health
Center on Race, Poverty, and the Environment
Cerca Cultivation
Charlie Hong Kong
Citizens Planning Association
City of Goleta
CleanEarth4Kids.org
Clean Water Action
Climate Action California
Climate First: Replacing Oil and Gas
Climate Hawks Vote
Climate Health Now Action Fund
Climate Reality Project, San Diego
Central Coast Climate Justice Network
CLUE-SB Environmental Justice Group
Coastal Band of the Chumash Nation
Contra Costa MoveOn
Dana Wharf Sportfishing and Whale Watching
Dayenu: A Jewish Call to Climate Action
Defenders of Wildlife
E2
Earthwell Refill
Elected Officials to Protect America Code Blue
Environmental Law Club at UCSB
Environmental Action Committee of West Marin
Environmental Center of San Diego
Environmental Protection Information Center (EPIC)
EOPA Code Blue
Families Advocating for Chemical and Tech Safety (FACTS)
Field + Form
Fish On
Food & Water Watch
Friends Committee on Legislation of California
Friends of the Earth
FutureSwell
Get Oil Out!
Greenpeace USA
GreenLatinos
Green Policy Initiative
Groundzero
Heal the Bay
Heal the Ocean
Hubble Daily Architecture + Design
Humboldt Waterkeeper
Indivisible CA Green Team
Indivisible Santa Cruz County, Environmental Issues Team
International Marine Mammal Project, Earth Island Institute
Long Beach Alliance for Clean Energy
Los Angeles Waterkeeper
Los Padres ForestWatch
Mako Strategies
Media Alliance
Mercury Press, Inc.
Midsomman, LLC
Modo Yoga San Diego
Monterey Bay Aquarium
Monterey Waterkeeper
My Zero Waste Store
Nassau Hiking & Outdoor Club
Natural Resources Defense Council
North American Climate Conservation and Environment (NACCE)
Ocean Conservation Research
Oil and Gas Action Network
Orange County Coastkeeper
Pacific Catch
Pacific Coast Hidaway, LLC
Paddle for Peace
Page Events
Patagonia
Pesticide Action and Agroecology Network
Physicians for Social Responsibility, Los Angeles
Physicians for Social Responsibility, San Francisco Bay Chapter
Progressives for Climate
Project Kolika
Protect Ballona Wetlands
PuraVida Surf Shop, Inc.
Quabajai Coastal Chumash Keeper of the Western Gate
Resources Renewal Institute
Root Utility Netwwork
Sacred Places Institute for Indigenous Peoples
Salt + Noelle
San Diego 350
San Diego Coastkeeper
San Francisco Baykeeper
Santa Barbara Channelkeeper
Santa Barbara County Action Network
Santa Barbara Sportfishing
Santa Cruz Waves
Save Our Shores
Sea Forager
Sereia
Sierra Club California
Sierra Club, Santa Barbara Group
Sierra Club, Santa Lucia Chapter (San Luis Obispo County)
Sisters of Mercy of the Americas in California
SoCal 350 Climate Action
Society of Fearless Grandmothers of Santa Barbara
Soichi Sushi
Solano County Democratic Central Committee
Stardust Sportfishing
Sunflower Alliance
Surfrider Foundation
Surfrider Foundation – Isla Vista Club
Surfrider Foundation, Santa Barbara Chapter
Sustainable Rossmoor
The Climate Center
The Fund for Santa Barbara
The Green Room
The Refill Shoppe
Third Act SoCal
Transformative Wealth Management
Turtle Island Restoration Network
UCSB Environmental Affairs Board
United Nations Association – California
Ventura Coastkeeper
Vote Solar
West Coast Paddle Sports
Wild Beacon Consulting
Wishtoyo Chumash Foundation
Zero Hour
Hundreds of individuals
OPPOSITION
Central Valley Business Federation
IEEP
Kern Citizens of Energy
Kern County Economic Development Corporation
Kern County Taxpayers Association
Long Beach Area Chamber of Commerce
Los Angeles County Business Federation
Sable Offshore Corporation
SAGE Monterey
Santa Maria Valley Chamber
SBCTAC
SLO COLAB
South County Chamber
State Building and Construction Trades Council
Tri-County Chamber Alliance
VC Taxpayers Association
-- END --
Oil production data from Geologic Energy Management Division within the Department of Conservation (CalGEM). ↑
Given the limitations of the public version of WellSTAR and late CalGEM summary reports, the fraction of offshore state production for 2024 was estimated from known 2022 and 2023 data. ↑
Data from CalGEM and the US Bureau of Ocean Energy Management (BOEM). 2022 is the most recent year with verifiable data available. ↑
BOEM recently announced a Notice of Intent to prepare the programmatic EIS (PEIS). Due to cited time limitations, BOEM announced that the comment period for both the NOI and the PEIS would be combined. ↑
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 1448 |
THIRD READING
Bill No: AB 1448
Author: Hart (D), et al.
Amended: 4/28/26 in Senate
Vote: 21
SENATE NATURAL RES. & WATER COMMITTEE: 4-3, 7/8/25
AYES: Limón, Allen, Laird, Stern
NOES: Seyarto, Grove, Hurtado
SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/29/25
AYES: Caballero, Cabaldon, Grayson, Richardson, Wahab
NOES: Seyarto, Dahle
ASSEMBLY FLOOR: 42-26, 6/4/25 - See last page for vote
SUBJECT: Coastal resources: California Coastal Sanctuary: tidelands and submerged lands: oil and gas development
SOURCE: Center for Biological Diversity
Environmental Defense Center
DIGEST:
This bill expands upon existing requirements for the transfer or modification of leases for oil and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases to include lease assignments, prohibits leases and oil- and gas-related infrastructure located upon tidelands and submerged lands from being used to support Pacific Outer Continental Shelf leases issued after January 1, 2026, and removes the exception authorizing new oil- and gas-leasing in state waters within the California Coastal Sanctuary if state oil deposits are being drained from wells on federal lands, as provided.
Senate Floor Amendments of 4/28/26 remove all provisions within the California Coastal Act of 1976, add the prohibition on leases and oil- and gas-related infrastructure located upon tidelands and submerged lands from being used to support Pacific Outer Continental Shelf leases issued after January 1, 2026, and remove the exception authorizing new oil- and gas-leasing in state waters within the California Coastal Sanctuary if state oil deposits are being drained from wells on federal lands, and make other related and conforming changes, including requiring reimbursement for state mandated costs, as provided.
ANALYSIS:
Existing law:
- Establishes the California Coastal Sanctuary via the California Coastal Sanctuary Act of 1994. (California Coastal Sanctuary Act, Public Resources Code (PRC) §§6240 et seq.)
- Defines the California Coastal Sanctuary to include all state waters subject to tidal influence except those with a lease for the extraction of oil or gas in effect on January 1, 1995, unless the lease reverts to the state after January 1, 1995, and any state waters east of the Carquinez bridges on Interstate 80. (PRC §6242)
- Prohibits any state agency or officer to enter into any new lease for the extraction of oil or gas from the California Coastal Sanctuary unless certain limited conditions are met. (PRC §6243)
- Authorizes the State Lands Commission to enter into any lease for the extraction of oil or gas from state-owner tide and submerged lands in the California Coastal Sanctuary if the State Lands Commission 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 interests of the state. (PRC §6244)
- Establishes the State Lands Commission in the California Natural Resources Agency. (PRC §6101)
- Defines, pursuant to the federal Outer Continental Shelf Lands Act, the outer continental shelf (OCS) as all submerged lands lying between the seaward extent of the state jurisdiction and the seaward extent of federal jurisdiction. (43 United States Code §§1331 et seq.)
- Provides the State Lands Commission with exclusive jurisdiction over all ungranted tidelands and submerged lands owned by the state which have been or may be acquired by the state, as provided. All jurisdiction and authority remaining in the state as to tidelands and submerged lands as to which grants have been or may be made is vested in the State Lands Commission. (PRC §6301)
- Prohibits the State Lands Commission or a local trustee from entering into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with OCS leases issued after January 1, 2018, with limited exceptions. (PRC §6245)
- Requires the State Lands Commission or local trustee, prior to approving any lease renewal, extension, amendment, or modification to authorize new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to consider whether the lease renewal, extension, amendment, or modification is necessary to protect the marine environment or to ensure human health and safety; and other factors, as provided. (PRC §6245)
- Authorizes the State Lands Commission, in considering whether the approval of an assignment, transfer, or sublease of a lease or permit, to consider whether a proposed assignee is likely to comply with the terms of the lease or permit, as provided. (PRC §6804)
This bill:
- Deletes from the California Coastal Sanctuary Act the provision that authorizes the State Lands Commission to enter into a lease for the extraction of oil or gas from state-owned tide and submerged lands if the State Lands Commission determines that those oil and gas deposits are being drained by producing wells upon adjacent federal lands and the lease is in the best interests of the state.
- Prohibits the use of leases and oil- and gas-related infrastructure located upon tidelands and submerged lands within state waters to be used to support Pacific Outer Continental Shelf leases issued after January 1, 2026, except as provided.
- Adds an application for a lease assignment for oil and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to existing State Lands Commission or local trustee public notice requirements, as provided.
- Removes the requirement that the application is to authorize only new construction of oil and gas-related infrastructure.
- Requires the State Lands Commission or local trustee to take no further action to approve the requested lease assignment until 180 days after public notification, as provided.
- Adds lease assignment to the existing process the State Lands Commission or local trustee undertake before approving a lease renewal, extension, amendment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018. Removes the requirement that the application is to authorize new construction of oil and gas-related infrastructure. Requires the State Lands Commission or local trustee to additionally consider, at a minimum:
- Whether the lease renewal, extension, amendment, assignment, or modification may impact public trust resources and values.
- Whether the lease renewal, extension, amendment, assignment, or modification is for, or connected to, infrastructure that has experienced a reportable incident, such as an oil spill.
- Whether the lease renewal, extension, amendment, assignment, or modification is related to the use of well stimulation treatments, extended reach drilling and production, horizontal drilling and production, or other unconventional drilling and production techniques for resource extraction.
- Whether the operator has provided finalized certificates of financial responsibility obtained from OSPR and has provided financial assurances required for decommissioning, as specified.
- Prohibits the approval of a lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf at the same properly noticed public meeting it is first presented at. Requires the State Lands Commission or local trustee to accept public comments.at the meeting it votes to approve or disapprove the lease assignment.
- Requires that the approval of an assignment, transfer, or sublease of a lease or permit is in the best interest of the state, as provided.
- Makes various technical changes, and requires reimbursement to a local agency or school district if the Commission on State Mandates determines that this bill contains costs mandated by the state, as specified.
Comments
The letters in support and opposition to this bill were submitted for a previous version of this bill.
[NOTE: See the Senate Natural Resources and Water Committee analysis for additional information.]
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee to a previous version of the bill:
- Potential loss in annual rental revenue of an unknown amount, potentially in excess of $150,000, from offshore oil- and gas-related infrastructure leases to the extent the State Lands Commission (SLC) or a local trustee denies one or more applications for a lease renewal, extension, amendment, assignment, or modification, as a result of the bill’s requirements and conditions (General Fund). SLC collected approximately $949,000 in rental revenue from its approximately one dozen pipeline right-of-way leases in fiscal year 2023-24.
- By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, and by imposing additional duties on a local government with a certified LCP in processing and reviewing an application for a CDP, this bill imposes a state-mandated local program. These costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates (General Fund).
Center for Biological Diversity (co-source)
Environmental Defense Center (co-source)
7th Generation Advisors
350 Bay Area Action
350 Humboldt
350 Santa Barbara
Azul
Ballona Wetlands Institute
Ban SUP (Single Use Plastics)
Business Alliance for Protecting the Pacific Coast
California Coastal Protection Network
California Democratic Party
California Environmental Voters
California Legislative Central Coast Caucus
Center on Race, Poverty, and the Environment
Central Coast Climate Justice Network
Citizens Planning Association
City of Goleta
CleanEarth4Kids.org
Clean Water Action
Climate Action California
Climate First: Replacing Oil and Gas
Climate Hawks Vote
Climate Reality Project, San Diego
CLUE-SB Environmental Justice Group
Coastal Band of the Chumash Nation
Coastal Lands Action Network
Defend Ballona Wetlands
Defenders of Wildlife
Elected Officials to Protect America Code Blue
Environmental Law Club at UCSB
Environmental Action Committee of West Marin
Food & Water Watch
Friends Committee on Legislation of California
Friends of the Earth
Get Oil Out!
Green Policy Initiative
Indivisible CA Green Team
International Marine Mammal Project, Earth Island Institute
Los Padres ForestWatch
Monterey Bay Aquarium
Natural Resources Defense Council
Ocean Conservation Research
Oceana
Oil and Gas Action Network
Patagonia
Pesticide Action and Agroecology Network
Physicians for Social Responsibility, San Francisco Bay Chapter
Progressive Democrats of America
Quabajai Coastal Chumash Keeper of the Western Gate
Sacred Places Institute for Indigenous Peoples
San Diego 350
San Francisco Baykeeper
Santa Barbara Channelkeeper
Santa Barbara County Action Network
Save Our Shores
Sierra Club California
Sierra Club, Santa Barbara Group
Sierra Club, Santa Lucia Chapter (San Luis Obispo County)
SoCal 350 Climate Action
Society of Fearless Grandmothers of Santa Barbara
Solano County Democratic Central Committee
Sunflower Alliance
Surfrider Foundation
Surfrider Foundation, Santa Barbara Chapter
Surfrider Foundation, San Luis Obispo
The Climate Center
UCSB Environmental Affairs Board
Ventura Coastkeeper
Vote Solar
WILDCOAST
Wishtoyo Chumash Foundation
OPPOSITION: (Verified 4/28/26)
California Independent Petroleum Association
Central Valley Business Federation
IEEP
Kern Citizens of Energy
Kern County Economic Development Corporation
Kern County Taxpayers Association
Long Beach Area Chamber of Commerce
Los Angeles County Business Federation
Sable Offshore Corporation
SAGE Monterey
Santa Maria Valley Chamber
SBCTAC
SLO COLAB
South County Chamber
State Building and Construction Trades Council of California
Tri-County Chamber Alliance
VC Taxpayers Association
Western States Petroleum Associat
ARGUMENTS IN SUPPORT: According to the author, “AB 1448 aims to enhance the California State Lands Commission’s authority to protect designated lands from the expansion of oil- and gas- related infrastructure.”
In a joint sign-on letter, the Center for Biological Diversity and the Environmental Defense Center write, “AB1448 will safeguard our coast against federal attempts to unlawfully open federal waters to new oil leasing off California. The Trump Administration has pledged to drill everywhere and will undoubtedly seek to expand Pacific offshore drilling. Current gaps in state law leave untoward paths for federal oil expansion through existing infrastructure in state waters. AB1448 takes a firm stand against efforts to expand drilling off our coast, to protect against associated risks to California interests.
Moreover, AB1448 addresses the need to prevent aging infrastructure from expanded or prolonged use when it should be retired. Offshore oil infrastructure has outlived its lifespan and presents significant risks. This bill requires strict environmental considerations for the reactivation of oil projects that have been shut down. Recent oil spills off our coast are stark reminders of the need to decommission — not restart — antiquated infrastructure.
ARGUMENTS IN OPPOSITION: The Western States Petroleum Association (WSPA) in a joint sign-on letter writes, “We believe that AB 1448 would significantly expand regulatory barriers on offshore oil and gas operations, particularly within state waters associated with Pacific Outer Continental Shelf (OCS) leases. While we support reasonable environmental safeguards, this bill overreaches by broadening the scope of activities requiring new approvals, introducing operational uncertainty, and discouraging investment in California’s existing offshore infrastructure.”
WSPA continues that “A major concern is the bill’s extension to lease assignments,” and additionally expresses concern over the broader definition of “expanded oil and gas development,” and the fiscal implications of the potential loss of revenues to the state and local jurisdictions from offshore oil and gas production, among other concerns.”
The State Building and Construction Trades Council cites concerns that “this bill seeks to cut off yet another source of domestic crude oil to our in-state refineries,” and argue that this bill makes “it increasingly difficult and prohibitively expensive to operate refineries in-state.”
ASSEMBLY FLOOR: 42-26, 6/4/25
AYES: Addis, Ahrens, Arambula, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Connolly, Elhawary, Fong, Gabriel, Garcia, Mark González, Haney, Harabedian, Hart, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Ortega, Papan, Pellerin, Celeste Rodriguez, Rogers, Schiavo, Schultz, Sharp-Collins, Solache, Stefani, Ward, Wicks, Zbur, Rivas
NOES: Alanis, Ávila Farías, Bains, Carrillo, Castillo, Chen, DeMaio, Dixon, Ellis, Flora, Gallagher, Gipson, Jeff Gonzalez, Hadwick, Hoover, Lackey, Macedo, Patterson, Ransom, Michelle Rodriguez, Blanca Rubio, Sanchez, Soria, Ta, Tangipa, Wallis
NO VOTE RECORDED: Aguiar-Curry, Alvarez, Davies, Nguyen, Pacheco, Patel, Petrie-Norris, Quirk-Silva, Ramos, Valencia, Wilson
Prepared by: Katharine Moore / N.R. & W. / (916) 651-4116
4/29/26 16:22:11
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 1448 |
THIRD READING
Bill No: AB 1448
Author: Hart (D), et al.
Amended: 9/5/25 in Senate
Vote: 21
SENATE NATURAL RES. & WATER COMMITTEE: 4-3, 7/8/25
AYES: Limón, Allen, Laird, Stern
NOES: Seyarto, Grove, Hurtado
SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/29/25
AYES: Caballero, Cabaldon, Grayson, Richardson, Wahab
NOES: Seyarto, Dahle
ASSEMBLY FLOOR: 42-26, 6/4/25 - See last page for vote
SUBJECT: Coastal resources: oil and gas development
SOURCE: Center for Biological Diversity
Environmental Defense Center
DIGEST:
This bill expands upon existing requirements for the transfer or modification of leases for oil and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases to include lease assignments, and requires a new coastal development permit (CDP) be obtained for the repair, reactivation, or maintenance of an oil pipeline or oil and gas facility that has been idled, inactive, or out of service for five or more years, as provided, among other provisions.
Senate Floor Amendments of 9/5/25 clarify the definition of “expanded oil extraction,” and “facility” and make a technical change.
ANALYSIS:
Existing law:
- Establishes the California Coastal Commission (Coastal Commission), pursuant to the California Coastal Act of 1976 (Coastal Act)(Public Resources Code (PRC) §§30000 et seq.), and the State Lands Commission in the California Natural Resources Agency. (Public Resources Code (PRC) §30300, §6101)
- Defines, pursuant to the federal Outer Continental Shelf Lands Act, the outer continental shelf (OCS) as all submerged lands lying between the seaward extent of the state jurisdiction and the seaward extent of federal jurisdiction. (43 United States Code §§1331 et seq.)
- Provides the State Lands Commission with exclusive jurisdiction over all ungranted tidelands and submerged lands owned by the state which have been or may be acquired by the state, as provided. All jurisdiction and authority remaining in the state as to tidelands and submerged lands as to which grants have been or may be made is vested in the State Lands Commission. (PRC §6301)
- Prohibits the State Lands Commission or a local trustee from entering into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with OCS leases issued after January 1, 2018, with limited exceptions. (PRC §6245)
- Requires the State Lands Commission or local trustee, prior to approving any lease renewal, extension, amendment, or modification to authorize new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to consider whether the lease renewal, extension, amendment, or modification is necessary to protect the marine environment or to ensure human health and safety; and other factors, as provided. (PRC §6245)
- Authorizes the State Lands Commission, in considering whether the approval of an assignment, transfer, or sublease of a lease or permit, to consider whether a proposed assignee is likely to comply with the terms of the lease or permit, as provided. (PRC §6804)
- Prohibits new or expanded oil and gas development from being considered a coastal-dependent industrial facility, and may be permitted only if found to be consistent with all applicable provisions and if all of the specified following conditions are met. (PRC §30262)
- Requires all oil produced offshore California to be transported onshore by pipeline only. Requires the pipelines used to transport this oil to use the best achievable technology to ensure maximum protection of public health and safety and of the integrity and productivity of terrestrial and marine ecosystems. (PRC §30262 (a)(5)(A))
This bill:
- Adds an application for a lease assignment for oil and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to existing State Lands Commission or local trustee public notice requirements, as provided.
- Removes the requirement that the application is to authorize only new construction of oil and gas-related infrastructure.
- Requires the State Lands Commission or local trustee to take no further action to approve the requested lease assignment until 180 days after public notification, as provided.
- Adds lease assignment to the existing process the State Lands Commission or local trustee undertake before approving a lease renewal, extension, amendment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018. Removes the requirement that the application is to authorize new construction of oil and gas-related infrastructure. Requires the State Lands Commission or local trustee to additionally consider, at a minimum:
- Whether the lease renewal, extension, amendment, assignment, or modification may impact public trust resources and values.
- Whether the lease renewal, extension, amendment, assignment, or modification is for, or connected to, infrastructure that has experienced a reportable incident, such as an oil spill.
- Whether the lease renewal, extension, amendment, assignment, or modification is related to the use of well stimulation treatments, extended reach drilling and production, horizontal drilling and production, or other unconventional drilling and production techniques for resource extraction.
- Whether the operator has provided finalized certificates of financial responsibility obtained from OSPR and has provided financial assurances required for decommissioning, as specified.
- Prohibits the approval of a lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf at the same properly noticed public meeting it is first presented at. Requires the State Lands Commission or local trustee to accept public comments.at the meeting it votes to approve or disapprove the lease assignment. Requires that the approval of an assignment, transfer, or sublease of a lease or permit is in the best interest of the state, as provided.
- Clarifies in the Coastal Act that oil onshore is transported by pipeline that uses the best available technology, as specified. Expands the Coastal Act definition of “expanded oil extraction” to include the reactivation of a facility idled, inactive, or out of service for more than five years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies, as provided. Prohibits the transport of oil over land by other methods, as provided.
- Clarifies in the Coastal Act that the repair, reactivation, and maintenance of an oil and gas facility that has been idled, inactive, or out of service for five years or more is considered a new or expanded development requiring a new CDP. Clarifies in the Coastal Act that development associated with the repair, reactivation, or maintenance of an oil pipeline that has been idled, inactive, or out of service for five years or more requires a new CDP, as provided.
- Requires the Coastal Commission or local government with a certified local coastal program to review and approve, modify, condition, or deny the CDP, as provided.
- Makes various technical changes, and provides that no reimbursement is required to a local agency or school district, except in specified circumstances.
[NOTE: See the Senate Natural Resources and Water Committee analysis for additional information.]
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee:
- Potential loss in annual rental revenue of an unknown amount, potentially in excess of $150,000, from offshore oil- and gas-related infrastructure leases to the extent the State Lands Commission (SLC) or a local trustee denies one or more applications for a lease renewal, extension, amendment, assignment, or modification, as a result of the bill’s requirements and conditions (General Fund). SLC collected approximately $949,000 in rental revenue from its approximately one dozen pipeline right-of-way leases in fiscal year 2023-24.
- By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, and by imposing additional duties on a local government with a certified LCP in processing and reviewing an application for a CDP, this bill imposes a state-mandated local program. These costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates (General Fund).
SUPPORT: (Verified 8/29/25)
Center for Biological Diversity (co-source)
Environmental Defense Center (co-source)
7th Generation Advisors
350 Bay Area Action
350 Humboldt
350 Santa Barbara
Azul
Ballona Wetlands Institute
Ban SUP (Single Use Plastics)
Business Alliance for Protecting the Pacific Coast
California Coastal Protection Network
California Environmental Voters
California Legislative Central Coast Caucus
Center on Race, Poverty, and the Environment
Central Coast Climate Justice Network
Citizens Planning Association
City of Goleta
CleanEarth4Kids.org
Clean Water Action
Climate Action California
Climate First: Replacing Oil and Gas
Climate Hawks Vote
Climate Reality Project, San Diego
CLUE-SB Environmental Justice Group
Coastal Band of the Chumash Nation
Coastal Lands Action Network
Defend Ballona Wetlands
Defenders of Wildlife
Elected Officials to Protect America Code Blue
Environmental Law Club at UCSB
Environmental Action Committee of West Marin
Food & Water Watch
Friends Committee on Legislation of California
Friends of the Earth
Get Oil Out!
Green Policy Initiative
Indivisible CA Green Team
International Marine Mammal Project, Earth Island Institute
Los Padres ForestWatch
Monterey Bay Aquarium
Natural Resources Defense Council
Ocean Conservation Research
Oceana
Oil and Gas Action Network
Patagonia
Pesticide Action and Agroecology Network
Physicians for Social Responsibility, San Francisco Bay Chapter
Progressive Democrats of America
Quabajai Coastal Chumash Keeper of the Western Gate
Sacred Places Institute for Indigenous Peoples
San Diego 350
San Francisco Baykeeper
Santa Barbara Channelkeeper
Santa Barbara County Action Network
Save Our Shores
Sierra Club California
Sierra Club, Santa Barbara Group
Sierra Club, Santa Lucia Chapter (San Luis Obispo County)
SoCal 350 Climate Action
Society of Fearless Grandmothers of Santa Barbara
Solano County Democratic Central Committee
Sunflower Alliance
Surfrider Foundation
Surfrider Foundation, Santa Barbara Chapter
Surfrider Foundation, San Luis Obispo
The Climate Center
UCSB Environmental Affairs Board
Ventura Coastkeeper
Vote Solar
WILDCOAST
Wishtoyo Chumash Foundation
OPPOSITION: (Verified 8/29/25)
California Independent Petroleum Association
Central Valley Business Federation
DCOR, LLC
IEEP
Kern Citizens of Energy
Kern County Economic Development Corporation
Kern County Taxpayers Association
Long Beach Area Chamber of Commerce
Los Angeles County Business Federation
Sable Offshore Corporation
SAGE Monterey
Santa Maria Valley Chamber
SBCTAC
SLO COLAB
South County Chamber
State Building and Construction Trades Council of California
Tri-County Chamber Alliance
VC Taxpayers Association
Western States Petroleum Association
ARGUMENTS IN SUPPORT: According to the author, “AB 1448 aims to enhance the California State Lands Commission’s authority to protect designated lands from the expansion of oil- and gas- related infrastructure. This bill requires additional environmental and safety factors to be considered by the Commission before making any changes to existing leases […].”
“Furthermore, AB 1448 does not create new permitting requirements under the Coastal Act- the Coastal Commission has been regulating oil and gas development for 50 years. The bill simply confirms and clarifies which regulatory pathway applies to a previously idled oil and gas facility, including pipelines, under the Coastal Act.”
“Until 2023, the Coastal Commission authorized a wide variety of oil and gas-related development. Under PRC Section 30260, the Commission could make special allowances to allow coastal-dependent industrial uses (including offshore oil and gas facilities and pipelines) to go forward.”
“In 2023, SB 704 (Min, Ch. 292, Stats. 2023) amended PRC Section 30262 to require all new or expanded oil and gas development to fully comply with all Chapter 3 policies of the Coastal Act, while still allowing for some types of repair and maintenance to be considered under the more lenient PRC Section 30260.
However, SB 704 did not consider which regulatory pathway would apply to repair, maintenance or reactivation of previously idled oil and gas facilities. AB 1448 clarifies that question by specifying that the repair, maintenance, and restart of an idled oil and gas facility, including pipelines, and all associated development activities require a coastal development permit consistent with PRC Section 30262, as opposed to PRC Section 30260. AB 1448 builds on the policy established in SB 704 by eliminating confusion about what regulatory standards apply to the permitting of idled oil and gas facilities in the coastal zone.”
ARGUMENTS IN OPPOSITION: The Western States Petroleum Association (WSPA) in a joint sign-on letter writes, “We believe that AB 1448 would significantly expand regulatory barriers on offshore oil and gas operations, particularly within state waters associated with Pacific Outer Continental Shelf (OCS) leases. While we support reasonable environmental safeguards, this bill overreaches by broadening the scope of activities requiring new approvals, introducing operational uncertainty, and discouraging investment in California’s existing offshore infrastructure.”
WSPA continues that “A major concern is the bill’s extension to lease assignments,” and additionally expresses concern over the broader definition of “expanded oil and gas development,” and the fiscal implications of the potential loss of revenues to the state and local jurisdictions from offshore oil and gas production, among other concerns.”
The State Building and Construction Trades Council cites concerns that “this bill seeks to cut off yet another source of domestic crude oil to our in-state refineries,” and argue that this bill makes “it increasingly difficult and prohibitively expensive to operate refineries in-state.”
ASSEMBLY FLOOR: 42-26, 6/4/25
AYES: Addis, Ahrens, Arambula, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Connolly, Elhawary, Fong, Gabriel, Garcia, Mark González, Haney, Harabedian, Hart, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Ortega, Papan, Pellerin, Celeste Rodriguez, Rogers, Schiavo, Schultz, Sharp-Collins, Solache, Stefani, Ward, Wicks, Zbur, Rivas
NOES: Alanis, Ávila Farías, Bains, Carrillo, Castillo, Chen, DeMaio, Dixon, Ellis, Flora, Gallagher, Gipson, Jeff Gonzalez, Hadwick, Hoover, Lackey, Macedo, Patterson, Ransom, Michelle Rodriguez, Blanca Rubio, Sanchez, Soria, Ta, Tangipa, Wallis
NO VOTE RECORDED: Aguiar-Curry, Alvarez, Davies, Nguyen, Pacheco, Patel, Petrie-Norris, Quirk-Silva, Ramos, Valencia, Wilson
Prepared by: Katharine Moore / N.R. & W. / (916) 651-4116
9/8/25 21:44:05
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 1448 |
THIRD READING
Bill No: AB 1448
Author: Hart (D), et al.
Amended: 8/29/25 in Senate
Vote: 21
SENATE NATURAL RES. & WATER COMMITTEE: 4-3, 7/8/25
AYES: Limón, Allen, Laird, Stern
NOES: Seyarto, Grove, Hurtado
SENATE APPROPRIATIONS COMMITTEE: 5-2, 8/29/25
AYES: Caballero, Cabaldon, Grayson, Richardson, Wahab
NOES: Seyarto, Dahle
ASSEMBLY FLOOR: 42-26, 6/4/25 - See last page for vote
SUBJECT: Coastal resources: oil and gas development
SOURCE: Center for Biological Diversity
Environmental Defense Center
DIGEST:
This bill expands upon existing requirements for the transfer or modification of leases for oil and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases to include lease assignments, and requires a new coastal development permit (CDP) be obtained for the repair, reactivation, or maintenance of an oil pipeline or oil and gas facility that has been idled, inactive, or out of service for five or more years, as provided, among other provisions.
ANALYSIS:
Existing law:
- Establishes the California Coastal Commission (Coastal Commission), pursuant to the California Coastal Act of 1976 (Coastal Act)(Public Resources Code (PRC) §§30000 et seq.), and the State Lands Commission in the California Natural Resources Agency. (PRC §30300, §6101)
- Defines, pursuant to the federal Outer Continental Shelf Lands Act, the outer continental shelf (OCS) as all submerged lands lying between the seaward extent of the state jurisdiction and the seaward extent of federal jurisdiction. (43 United States Code §§1331 et seq.)
- Provides the State Lands Commission with exclusive jurisdiction over all ungranted tidelands and submerged lands owned by the state, and of the beds of navigable rivers, streams, lakes, bays, estuaries, inlets, and straits, including tidelands and submerged lands or any interest therein, whether within or beyond the boundaries of the state as established by law, which have been or may be acquired by the state, as provided. All jurisdiction and authority remaining in the state as to tidelands and submerged lands as to which grants have been or may be made is vested in the State Lands Commission. (PRC §6301)
- Prohibits the State Lands Commission or a local trustee from entering into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with OCS leases issued after January 1, 2018, with limited exceptions. (PRC §6245)
- Requires the State Lands Commission or local trustee, prior to approving any lease renewal, extension, amendment, or modification to authorize new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to consider whether the lease renewal, extension, amendment, or modification is necessary to protect the marine environment or to ensure human health and safety; whether the lease renewal, extension, amendment, or modification provides a benefit to the state beyond additional lease revenues; and, whether the lease renewal, extension, amendment, or modification will impact the volume of oil and gas that may be transported across state waters. (PRC §6245)
- Authorizes the State Lands Commission, in considering whether the approval of an assignment, transfer, or sublease of a lease or permit, to consider whether a proposed assignee is likely to comply with the terms of the lease or permit for the duration of both the primary term of the original lease or permit and any extended term of the lease because of production, as determined by specified factors. (PRC §6804)
- Prohibits new or expanded oil and gas development from being considered a coastal-dependent industrial facility, and may be permitted only if found to be consistent with all applicable provisions and if all of the specified following conditions are met. (PRC §30262)
- Requires all oil produced offshore California to be transported onshore by pipeline only. Requires the pipelines used to transport this oil to use the best achievable technology to ensure maximum protection of public health and safety and of the integrity and productivity of terrestrial and marine ecosystems. (PRC §30262 (a)(5)(A))
- Defines “expanded oil extraction” as an increase in the geographic extent of existing leases or units, including lease boundary adjustments, or an increase in the number of well heads, on or after January 1, 2003. (PRC §30262 (a)(5)(C)(iii))
- Authorizes repair and maintenance of an existing oil and gas facility to be permitted only if it does not result in expansion of capacity of the oil and gas facility, and if certain conditions are met. (PRC §30262)
This bill:
- Adds an application for a lease assignment for oil and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to existing State Lands Commission or local trustee public notice requirements, as provided.
- Removes the requirement that the application is to authorize only new construction of oil and gas-related infrastructure.
- Requires the State Lands Commission or local trustee to take no further action to approve the requested lease assignment until 180 days after public notification, as provided.
- Adds lease assignment to the existing process the State Lands Commission or local trustee undertake before approving a lease renewal, extension, amendment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018. Removes the requirement that the application is to authorize new construction of oil and gas-related infrastructure. Requires the State Lands Commission or local trustee to additionally consider, at a minimum:
- Whether the lease renewal, extension, amendment, assignment, or modification may impact public trust resources and values.
- Whether the lease renewal, extension, amendment, assignment, or modification is for, or connected to, infrastructure that has experienced a reportable incident, such as an oil spill.
- Whether the lease renewal, extension, amendment, assignment, or modification is related to the use of well stimulation treatments, extended reach drilling and production, horizontal drilling and production, or other unconventional drilling and production techniques for resource extraction.
- Whether the operator has provided finalized certificates of financial responsibility obtained from OSPR and has provided financial assurances required for decommissioning, as specified.
- Prohibits the approval of a lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf at the same properly noticed public meeting it is first presented at. Requires the State Lands Commission or local trustee to accept public comments.at the meeting it votes to approve or disapprove the lease assignment.
- Requires that the approval of an assignment, transfer, or sublease of a lease or permit is in the best interest of the state, as provided.
- Clarifies in the Coastal Act that oil onshore is transported by pipeline that uses the best available technology, as specified.
- Expands the Coastal Act definition of “expanded oil extraction” to include the reactivation of a facility idled, inactive, or out of service for more than three years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies, as provided. Prohibits the transport of oil over land by other methods, as provided.
- Clarifies in the Coastal Act that the repair, reactivation, and maintenance of an oil and gas facility that has been idled, inactive, or out of service for five years or more is considered a new or expanded development requiring a new CDP.
- Clarifies in the Coastal Act that development for the repair, reactivation, or maintenance of an oil pipeline that has been idled, inactive, or out of service for five years or more requires a new CDP, as provided.
- Requires the Coastal Commission or local government with a certified local coastal program to review and approve, modify, condition, or deny the CDP, as provided.
- Makes various technical changes, and provides that no reimbursement is required to a local agency or school district, except in specified circumstances.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee:
- Potential loss in annual rental revenue of an unknown amount, potentially in excess of $150,000, from offshore oil- and gas-related infrastructure leases to the extent the State Lands Commission (SLC) or a local trustee denies one or more applications for a lease renewal, extension, amendment, assignment, or modification, as a result of the bill’s requirements and conditions (General Fund). SLC collected approximately $949,000 in rental revenue from its approximately one dozen pipeline right-of-way leases in fiscal year 2023-24.
- By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, and by imposing additional duties on a local government with a certified LCP in processing and reviewing an application for a CDP, this bill imposes a state-mandated local program. These costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates (General Fund).
SUPPORT: (Verified 8/29/25)
Center for Biological Diversity (co-sponsor)
Environmental Defense Center (co-sponsor)
7th Generation Advisors
350 Bay Area Action
350 Humboldt
350 Santa Barbara
Azul
Ballona Wetlands Institute
Ban SUP (Single Use Plastics)
Business Alliance for Protecting the Pacific Coast
California Coastal Protection Network
California Environmental Voters
California Legislative Central Coast Caucus
Center on Race, Poverty, and the Environment
Central Coast Climate Justice Network
Citizens Planning Association
City of Goleta
CleanEarth4Kids.org
Clean Water Action
Climate Action California
Climate First: Replacing Oil and Gas
Climate Hawks Vote
Climate Reality Project, San Diego
CLUE-SB Environmental Justice Group
Coastal Band of the Chumash Nation
Coastal Lands Action Network
Defend Ballona Wetlands
Defenders of Wildlife
Elected Officials to Protect America Code Blue
Environmental Law Club at UCSB
Environmental Action Committee of West Marin
Food & Water Watch
Friends Committee on Legislation of California
Friends of the Earth
Get Oil Out!
Green Policy Initiative
Indivisible CA Green Team
International Marine Mammal Project, Earth Island Institute
Los Padres ForestWatch
Monterey Bay Aquarium
Natural Resources Defense Council
Ocean Conservation Research
Oceana
Oil and Gas Action Network
Patagonia
Pesticide Action and Agroecology Network
Physicians for Social Responsibility, San Francisco Bay Chapter
Progressive Democrats of America
Quabajai Coastal Chumash Keeper of the Western Gate
Sacred Places Institute for Indigenous Peoples
San Diego 350
San Francisco Baykeeper
Santa Barbara Channelkeeper
Santa Barbara County Action Network
Save Our Shores
Sierra Club California
Sierra Club, Santa Barbara Group
Sierra Club, Santa Lucia Chapter (San Luis Obispo County)
SoCal 350 Climate Action
Society of Fearless Grandmothers of Santa Barbara
Solano County Democratic Central Committee
Sunflower Alliance
Surfrider Foundation
Surfrider Foundation, Santa Barbara Chapter
Surfrider Foundation, San Luis Obispo
The Climate Center
UCSB Environmental Affairs Board
Ventura Coastkeeper
Vote Solar
WILDCOAST
Wishtoyo Chumash Foundation
OPPOSITION: (Verified 8/29/25)
California Independent Petroleum Association
Central Valley Business Federation
DCOR, LLC
IEEP
Kern Citizens of Energy
Kern County Economic Development Corporation
Kern County Taxpayers Association
Long Beach Area Chamber of Commerce
Los Angeles County Business Federation
Sable Offshore Corporation
SAGE Monterey
Santa Maria Valley Chamber
SBCTAC
SLO COLAB
South County Chamber
State Building and Construction Trades Council of California
Tri-County Chamber Alliance
VC Taxpayers Association
Western States Petroleum Association
ARGUMENTS IN SUPPORT: According to the author, “Despite the hard-learned lessons from devastating oil spills, threats to our coast continue. Assembly Bill 1448 will protect our precious coast by strengthening environmental protections, public oversight, and safety requirements for offshore drilling activities. The bill places stricter conditions on lease renewals, extensions, amendments, assignments, and modifications. AB 1448 ensures that our marine resources and coastal communities are protected against efforts to restart outdated and unsafe pipelines. We must do everything we can to protect our coast.”
Environmental Defense Center in a joint sign-on letter writes, “AB 1448 will safeguard our coast against federal attempts to unlawfully open federal waters to new oil leasing off California. The Trump Administration has pledged to drill everywhere and will undoubtedly seek to expand Pacific offshore drilling. Current gaps in state law leave untoward paths for federal oil expansion through existing infrastructure in state waters. AB 1448 takes a firm stand against efforts to expand drilling off our coast, to protect against associated risks to California interests.”
ARGUMENTS IN OPPOSITION: The Western States Petroleum Association (WSPA) in a joint sign-on letter writes, “We believe that AB 1448 would significantly expand regulatory barriers on offshore oil and gas operations, particularly within state waters associated with Pacific Outer Continental Shelf (OCS) leases. While we support reasonable environmental safeguards, this bill overreaches by broadening the scope of activities requiring new approvals, introducing operational uncertainty, and discouraging investment in California’s existing offshore infrastructure.”
WSPA continues that “A major concern is the bill’s extension to lease assignments,” and additionally expresses concern over the broader definition of “expanded oil and gas development,” and the fiscal implications of the potential loss of revenues to the state and local jurisdictions from offshore oil and gas production, among other concerns.
The State Building and Construction Trades Council cites concerns that “this bill seeks to cut off yet another source of domestic crude oil to our in-state refineries,” and argue that this bill makes “it increasingly difficult and prohibitively expensive to operate refineries in-state.”
ASSEMBLY FLOOR: 42-26, 6/4/25
AYES: Addis, Ahrens, Arambula, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Connolly, Elhawary, Fong, Gabriel, Garcia, Mark González, Haney, Harabedian, Hart, Irwin, Jackson, Kalra, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Ortega, Papan, Pellerin, Celeste Rodriguez, Rogers, Schiavo, Schultz, Sharp-Collins, Solache, Stefani, Ward, Wicks, Zbur, Rivas
NOES: Alanis, Ávila Farías, Bains, Carrillo, Castillo, Chen, DeMaio, Dixon, Ellis, Flora, Gallagher, Gipson, Jeff Gonzalez, Hadwick, Hoover, Lackey, Macedo, Patterson, Ransom, Michelle Rodriguez, Blanca Rubio, Sanchez, Soria, Ta, Tangipa, Wallis
NO VOTE RECORDED: Aguiar-Curry, Alvarez, Davies, Nguyen, Pacheco, Patel, Petrie-Norris, Quirk-Silva, Ramos, Valencia, Wilson
Prepared by: Katharine Moore / N.R. & W. / (916) 651-4116
9/2/25 18:22:36
**** END ****
SENATE COMMITTEE ON
Senator Anna Caballero, Chair
2025 - 2026 Regular Session
AB 1448 (Hart) - Coastal resources: oil and gas development
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
This bill would expand upon existing requirements for the transfer or modification of leases for oil and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases to include lease assignments, as provided, among other provisions.
*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on August 29, 2025
Fiscal Impact:
- Potential loss in annual rental revenue of an unknown amount, potentially in excess of $150,000, from offshore oil- and gas-related infrastructure leases to the extent the State Lands Commission (SLC) or a local trustee denies one or more applications for a lease renewal, extension, amendment, assignment, or modification, as a result of the bill’s requirements and conditions (General Fund). SLC collected approximately $949,000 in rental revenue from its approximately one dozen pipeline right-of-way leases in fiscal year 2023-24.
- By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, and by imposing additional duties on a local government with a certified LCP in processing and reviewing an application for a CDP, this bill imposes a state-mandated local program. These costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates (General Fund).
Author Amendments:
These amendments would strike authorization for the reactivation of an existing oil and gas facility to also be permitted as a coastal-dependent industrial facility. They would also require a coastal development permit for a facility that has been idled, inactive, or out of service for 5 years or more, instead of 3 years.
-- END --
SENATE COMMITTEE ON
Senator Anna Caballero, Chair
2025 - 2026 Regular Session
AB 1448 (Hart) - Coastal resources: oil and gas development
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
This bill would expand upon existing requirements for the transfer or modification of leases for oil and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases to include lease assignments, as provided, among other provisions.
Fiscal Impact:
- Potential loss in annual rental revenue of an unknown amount, potentially in excess of $150,000, from offshore oil- and gas-related infrastructure leases to the extent the State Lands Commission (SLC) or a local trustee denies one or more applications for a lease renewal, extension, amendment, assignment, or modification, as a result of the bill’s requirements and conditions (General Fund). SLC collected approximately $949,000 in rental revenue from its approximately one dozen pipeline right-of-way leases in fiscal year 2023-24.
- By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, and by imposing additional duties on a local government with a certified LCP in processing and reviewing an application for a CDP, this bill imposes a state-mandated local program. These costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates (General Fund).
Background:
Over 150 million visitors annually enjoy California’s coastline. According to Oceana, nearly 600,000 jobs and over $42 billion in GDP rely on clean beaches and a healthy ocean. According to a 2024 report by the National Oceanic and Atmospheric Administration, coastal tourism and recreation produced 47% of GDP and 67% of the employment of California’s marine economy. In comparison, mineral resources offshore, produced only 5% of GDP and 1% of employment.
The 2015 Refugio Beach oil spill and its consequences. On May 19, 2015, a pipeline then owned by Houston-based Plains All American Pipeline (Plains) ruptured spilling over 140,000 gallons of heavy crude oil along the Gaviota coast at Refugio Beach in Santa Barbara County of which over 100,000 gallons reached coastal waters. The release was from a 10.6 mile long, 24-inch diameter pipeline (Line 901).
The main oil spill stretched over 9 miles of California coastline and tar balls associated with the spill were found, as far south as Los Angeles County. Shoreline and beaches were affected by the spill and nesting areas for protected species were also affected. Hundreds of birds and mammals, in addition to a large number of marine invertebrates, were known to be impacted by the spill. Although some of the birds and mammals were released following treatment, most died from their exposure to oil. A 23 mile by 6 mile area was closed to fishing for over one month and beaches were closed, including over the Memorial Day weekend, resulting in economic losses.
A subsequent investigation by the federal Pipeline and Hazardous Materials Safety Administration for this then-interstate pipeline found that the direct cause of the leak was external corrosion on the pipeline. Corrosion in the pipeline had been indirectly tested two weeks before the spill and the in-line inspection tool failed to accurately determine the degree of corrosion in the line. Discrepancies between the tool’s inferred measurement and actual corrosion were as much as 40% in the location of the failure.
While in-line inspection tools are useful to inferring pipeline integrity, the failure to detect serious corrosion prior to the Refugio spill highlights the limitations of indirect measurements of pipeline integrity. A direct assessment of pipeline integrity – such as a hydro test – provides a clear unequivocal measure of pipeline integrity, although more intensive in time and expense to conduct.
Sable Offshore Corporation purchase of pipelines and offshore and onshore oil production infrastructure. Both lines 901 and 903 were ordered to be shut down following the 2015 Refugio Beach spill leak. The lines start on the Gaviota coast and are located in Santa Barbara, San Luis Obispo, and Kern Counties. Production on Platform Holly in state waters and from offshore federal leases [the Santa Ynez Unit (SYU) – Platforms Hondo, Harmony, and Heritage] ceased as a result. Without a method to transport its oil to shore, Venoco, the operator of Platform Holly, subsequently sought bankruptcy protection. Plains originally sought to replace the pipe in Lines 901 and 903 and returns the pipelines to service once the replacement was completed. Plains ultimately dropped this effort and sold lines 901 and 903 to Exxon in 2022. Exxon entered into an agreement to sell the pipelines and other oil production infrastructure to Sable Offshore Corporation (Sable), and the sale was finalized in early 2024. The pipelines were re-classified as intrastate pipelines as part of settlement of litigation, and had been renamed CA-324 and CA-325. Sable is seeking to restart oil production in the SYU (in federal waters) and restart CA-324 and CA-325. Sable is not replacing the pipe, but rather making any necessary repairs to the pipeline.
Since Sable became owner of the pipelines, multiple state agencies have determined that it has conducted unauthorized repairs and other work on the pipelines. Sable’s efforts to comply with regulatory requests appears to vary by regulator.
March 13, 2025 Town Hall. As part of its effort to receive approval to restart CA-324 and CA-325, Sable sought a waiver of the requirement to have cathodic protection on the pipelines from the State Fire Marshal (intrastate pipelines are under the jurisdiction of the State Fire Marshal). Cathodic protection is a standard method to help protect against corrosion. In December 2024, the State Fire Marshal approved the waiver, and conditioned it upon compliance with other requirements. This action resulted in significant community concern.
On March 13, 2025, a town hall was convened by Senator Limón and Assembly Member Hart to inform the local community about the status of Sable’s efforts to restart the pipelines and featured presentations from multiple state regulators led by the Secretary of the California Natural Resources Agency, Wade Crowfoot. In addition, representatives of the California Coastal Commission, the State Lands Commission, the Department of Fish and Wildlife, Office of Spill Prevention and Response, the State Fire Marshal, the Department of Conservation, the Department of Parks and Recreation (State Parks), and the State Water Resources Control Board were present. As noted above, Sable does not appear to have been consistently cooperative with state regulators.
Sovereign Lands and the Public Trust Doctrine. California acquired title to all tidelands, submerged lands, and the beds of all inland navigable waters within its borders as an incident of its sovereignty when it was admitted to the Union on September 9, 1850. The state owns these tidelands and submerged lands – sovereign lands – as a trustee for, and the public holds an easement over these lands for, statewide public purposes. These public rights are expressed in federal law, California’s Act of Admission, the California Constitution, court opinions, and state statutes.
The common law public trust doctrine has traditionally defined these public trust uses as water-related commerce, navigation, and fishing. However, California courts have recognized that public trust uses are “sufficiently flexible to encompass changing needs” (Marks v. Whitney, 6 Cal.3d at p. 259). As a result, California courts have also recognized bathing, swimming, boating, and other recreational purposes, as well as preservation of these lands in their natural state for scenic, scientific study, open space, and habitat values, as public trust uses. Recognized public trust uses must benefit all people of the state – in other words, they have statewide benefit.
Proposed Law:
This bill would expand upon existing requirements for the transfer or modification of leases for oil and gas-related infrastructure upon tidelands and submerged lands within state water associated with Pacific Outer Continental Shelf leases to include lease assignments, as provided, among other provisions.
Specifically, this bill would:
- Add an application for a lease assignment for oil and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases, to existing State Lands Commission or local trustee public notice requirements, as provided.
- Remove the requirements that the Pacific Outer Continental Shelf lease be issued after January 1, 2018, and that the application is to authorize only new construction of oil and gas-related infrastructure.
- Require the State Lands Commission or local trustee to take no further action to approve the requested lease assignment until 180 days after public notification, as provided.
- Add lease assignment to the existing process the State Lands Commission or local trustee undertake before approving a lease renewal, extension, amendment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases. Remove the requirements that the Pacific Outer Continental Shelf lease be issued after January 1, 2018, and that the application is to authorize new construction of oil and gas-related infrastructure. Require the State Lands Commission or local trustee to additionally consider, at a minimum:
- Whether the lease renewal, extension, amendment, assignment, or modification may impact public trust resources and values.
- Whether the lease renewal, extension, amendment, assignment, or modification is for, or connected to, infrastructure that has experienced a reportable incident, such as an oil spill.
- Whether the lease renewal, extension, amendment, assignment, or modification is related to the use of well stimulation treatments, extended reach drilling and production, horizontal drilling and production, or other unconventional drilling and production techniques for resource extraction.
- Whether the operator has provided finalized certificates of financial responsibility obtained from OSPR and has provided financial assurances required for decommissioning, as specified.
- Prohibit the approval of a lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific Outer Continental Shelf at the same properly noticed public meeting it is first presented at. Require the State Lands Commission or local trustee to accept public comments.at the meeting it votes to approve or disapprove the lease assignment.
- Require that the approval of an assignment, transfer, or sublease of a lease or permit is in the best interest of the state, as provided.
- Clarify in the Coastal Act that oil onshore is transported by pipeline that uses the best available technology, as provided.
- Expand in the Coastal Act the definition of “expanded oil extraction” to include the reactivation of a facility idled, inactive, or out of service for more than three years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies, as provided. Prohibit the transport of oil over land by other methods, as provided.
- Provide in the Coastal Act that reactivation of an existing oil and gas facility may be approved only if it does not result in an expansion of capacity of the oil and gas field.
- Clarify in the Coastal Act that the repair, reactivation, and maintenance of an oil and gas facility that has been idled, inactive, or out of service for three years or more is considered a new or expanded development requiring a new CDP.
- Clarify in the Coastal Act that development for the repair, reactivation, or maintenance of an oil pipeline that has been idled, inactive, or out of service for three years or more requires a new CDP, as provided.
- Require the Coastal Commission or local government with a certificated LDP to review and approve, modify, condition, or deny the permit, as provided.
- Provide that no reimbursement is required to a local agency or school district.
Related Legislation:
SB 542 (Limon, 2025) would prohibit the restart of an existing oil pipeline that has not been in use for five or more years from being restarted without a hydro test in order to reduce the risk of an oil spill upon returning to service, among other provisions.
SJR 12 (Min, Chapter 174, Resolutions of 2024) urges the President of the United States and the United States Congress to modify bankruptcy rules to provide, in the event of liquidation and termination of oil and gas leases under the United States Bankruptcy Code, that priority is given to plug and abandonment and restoration obligations, to protect the environment, over all secured creditor claims.
SB 559 (Min, 2023) would have required the State Lands Commission to terminate its leases that authorize oil and gas production in state waters if voluntary relinquishment cannot be negotiated, including the payment of fair compensation, as provided. (This bill was held on the Senate Appropriations Committee suspense file.)
SB 1030 (Limón, 2022) would have revised provisions of the Elder California Pipeline Safety Act of 1981 by removing an exemption from the definition of "pipeline," authorizing the State Fire Marshal to require the operator of a pipeline to maintain records, make reports, and provide information, as specified, and would have authorized the State Fire Marshal to disclose certain records, as provided, among other provisions. (This bill was placed on the inactive file on the Assembly floor.)
SB 704 (Min, Chapter 292, Statutes of 2023) removes oil and gas production from the coastal industrial use override provisions in the Coastal Act.
SB 953 (Min, 2022) would have required the State Lands Commission to terminate its leases that authorize oil and gas production in state waters if voluntary relinquishment could not be negotiated, including the payment of fair compensation, as specified. (This bill was held on the Senate Appropriations Committee suspense file.)
AB 585 (Limón, Chapter 123, Statutes of 2019) authorizes the State Lands Commission, when considering the approval of an assignment, transfer, or sublet of an oil and gas lease, to consider whether a proposed assignee is likely to comply with the provisions of the assigned, transferred, or sublet lease for the duration of the lease term, among other requirements.
SB 834 (Jackson, Chapter 309, Statutes of 2018) bars the State Lands Commission from issuing new leases or amending or renewing existing leases to facilitate oil or gas exploration, development, and production for new leases in federal waters.
AB 1775 (Muratsuchi, Chapter 310, Statutes of 2018) bars the State Lands Commission from issuing new leases or amending or renewing existing leases to facilitate oil or gas exploration, development, and production for new leases in federal waters.
SB 788 (McGuire, 2015) would have removed the drainage exception – if federal leases are draining a state-owned oil and gas pool – to the California Marine Sanctuary Act so the State Lands Commission could no longer issue new leases in that instance. (This bill was held on the Assembly Appropriations Committee suspense file.)
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 1448
Author:(Hart)
As Amended Ver:April 30, 2025
Majority vote
SUMMARY
Expands existing prohibition on offshore oil drilling to further prohibit the use of existing oil infrastructure to expand federal oil production.
Major Provisions
- Requires the State Lands Commission (SLC) or a local trustee, before approving a lease renewal, extension, amendment, assignment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific OCS leases, to make additional considerations, including whether the lease renewal, extension, amendment, assignment, or modification is for, or connected to, infrastructure that has experienced a reportable incident, such as an oil spill.
- Prohibits a lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific offshore continental shelf (OCS), from being approved at the same properly noticed public meeting at which the lease renewal, extension, amendment, or modification is first presented.
- Requires, once oil produced offshore California is onshore, offshore oil be transported to processing and refining facilities by a pipeline that uses the best achievable technology. Requires the State Fire Marshal (SFM) to request approval from the federal Pipeline and Hazardous Materials Safety Administration (PHMSA) to obtain interstate certification, as specified, for interstate hazardous liquid pipelines that are not under the SFM′s jurisdiction. Requires SFM, with the approval of the federal PHMSA, to: (a) inspect the pipelines to ensure they meet the requirements of the federal Hazardous Liquid Pipeline Safety Act of 1979, as specified, and (b) ensure the pipelines comply with specified pipeline safety requirements.
- Expands the definition of ″expanded oil extraction″ to mean an increase in the geographic extent of existing leases or units, including reactivation of a facility idled, inactive, or out of service for more than three years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies, on or after January 1, 2003.
- Deletes a provision in current law that allows for the shipment of certain types of crude oil over land. Provides that the reactivation of an existing oil and gas facility be permitted only if it does not result in the expansion of the oil and gas facility′s capacity, and if applicable conditions are met.
- Provides that repair, reactivation, and maintenance of an oil and gas facility that has been idled, inactive, or out of service for three years or more shall be considered a new or expanded development requiring a new coastal development permit (CDP). Requires development for the repair, reactivation, or maintenance of an oil pipeline that has been idled, inactive, or out of service for three years or more to obtain a new CDP. Requires the California Coastal Commission (Commission) or a local government with a certified local coastal program (LCP) to review and approve, modify, condition, or deny the permit based on specified requirements.
COMMENTS
SLC has had exclusive jurisdiction over the leasing of offshore state lands for oil and gas production since 1938 and also issues right-of-way leases for pipelines necessary to support offshore oil and gas infrastructure. SLC has not granted any new leases for offshore drilling within its jurisdiction – out to the three nautical miles limit – since 1969, although existing operations, such as at Platform Holly on the Ellwood field and Rincon Island on theRincon field, have been allowed to continue.
Current law prohibits SLC or a local trustee from entering into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with OCS leases issued after January 1, 2018. Exceptions to this prohibition include an order from the President of the United States for distribution of the Strategic Petroleum Reserve, or if it is in the best interest of the state.
Sable Offshore Corporation (Sable) has partially restarte the Santa Ynez Unit oil and gas operation off the Coast of Santa Barbara County. The Santa Ynez Unit includes three offshore platforms in federal waters connected to shore by offshore pipelines, onshore pipelines, the Ellwood Pier, mooring buoys, and the Las Flores Canyon Processing Facility. The onshore pipelines include pipelines identified as CA-324 and CA-325 (previously known as Lines 901 and 903), which were responsible for the 2015 Refugio oil spill. Sable gained approval from the Santa Barbara County Planning Commission on October 30, 2024, to transfer the ownership and permits of Pipelines CA-324, CA-325A and CA 325B (collectively known as the Santa Ynez Unit) from Exxon Mobil (a current lease holder) to Sable. Just this month, Sable commenced extracting oil from one of three long-shuttered platforms, Harmony, which is now extracting oil at a rate of about 6,000 barrels a day from six wells. That oil is being sent to the onshore Las Flores Canyon processing facility, and will be stored there until full operations can restart.
For the pipeline to completely restart, Sable would have to receive county permits for the onshore processing facilities and the pipeline, a waiver from the SFM, permits for repair work on the pipeline′s valves from the Commission and a decommissioning bond posted to the California Geologic Energy Management Division.
In February, PHMSA approved the waiver, which requires Sable to comply with more than 60 conditions, including this pipeline be hydrostatically tested using a ″spike″ hydrostatic test prior to putting the pipeline into operation, and the pipeline be inspected with ultrasonic thickness wall measurement and ultrasonic shear wave crack detection in-line inspection tools capable of assessing seam integrity and detecting corrosion, deformation, and cracking-type anomalies within seven days of achieving initial steady state operation of the pipeline. Thereafter, the pipeline must be reassessed at least every year.
While the bill is not specific to Sable – it applies statewide, Sable is the only entity currently trying to revitalize existing platforms for oil production. According to Sable, more than 20 existing platforms, operated by a variety of companies, using pipelines with leases through state tidelands would be affected when they come up for routine extensions, amendments, or transfers; thus, the bill would have impacts farther reaching than Sable.
According to the Author
Assembly Bill 1448 is a crucial step towards safeguarding California′s iconic coastline and ensuring a sustainable future for our communities. By placing restrictions on oil extraction activities off the coast, the bill prohibits the California State Lands Commission from approving new leases that would expand the construction of oil- and gas-related infrastructure, as well as making revisions to existing leases. In addition, the bill takes proactive measures to protect our environment by requiring that all pipelines used to transport oil be certified by the Office of the State Fire Marshal. This certification ensures that the highest safety standards are met, significantly reducing the risk of oil spills that could devastate our oceans and coastal ecosystems. Through these critical provisions, Assembly Bill 1448 empowers us to protect and preserve our cherished coastlines for generations to come, striking a balance between environmental preservation and responsible energy practices.
Arguments in Support
Environmental organizations in support of the bill argue that ″the Trump Administration has pledged to drill everywhere and will undoubtedly seek to expand Pacific offshore drilling. Current gaps in state law leave untoward paths for federal oil expansion through existing infrastructure in state waters. AB 1448 takes a firm stand against efforts to expand drilling off our coast, to protect against associated risks to California interests.″
Arguments in Opposition
Sable writes in response to the bill that, ″AB 1448 would impact existing facilities with long-held leases and rights that are currently operating or working to reopen through an established and robust multi-agency regulatory framework. Functionally, AB 1448 is designed to do one thing - prevent the repair and restart of critical oil production facilities both offshore and onshore in Santa Barbara County. Halting this planned restart of Sable′s Santa Ynez Unit and Las Flores Pipeline System would have serious implications for the region and California at large.″
FISCAL COMMENTS
According to the Assembly Appropriations Committee, this bill could result in the potential loss in annual rental revenue of an unknown amount, potentially in excess of $150,000, from offshore oil- and gas-related infrastructure leases to the extent SLC or a local trustee denies one or more applications for a lease renewal, extension, amendment, assignment, or modification, as a result of the bill′s requirements and conditions (General Fund). SLC collected approximately $949,000 in rental revenue from its approximately one dozen pipeline right-of-way leases in fiscal year 2023-24.
SLC, SFM, and the Commission report minor and absorbable implementation costs (various funds).
By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, and imposing additional duties on a local government with a certified LCP in processing and reviewing an application for a CDP, this bill imposes a state-mandated local program. These costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates (General Fund).
VOTES
ASM NATURAL RESOURCES: 10-4-0
YES: Bryan, Connolly, Garcia, Haney, Kalra, Muratsuchi, Pellerin, Schultz, Wicks, Zbur
NO: Alanis, Ellis, Flora, Hoover
ASM APPROPRIATIONS: 11-3-1
YES: Wicks, Arambula, Calderon, Caloza, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache
NO: Dixon, Ta, Tangipa
ABS, ABST OR NV: Sanchez
UPDATED
VERSION: April 30, 2025
CONSULTANT: Paige Brokaw / NAT. RES. / (916) 319-2092 FN: 0000547
Date of Hearing: May 14, 2025
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 1448
Author:(Hart) – As Amended Ver:April 30, 2025
Policy Committee: | Natural Resources | Vote: | 10 - 4 |
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Urgency: No State Mandated Local Program: Yes Reimbursable: Yes
SUMMARY:
This bill, among other things, requires the State Lands Commission (SLC) or a local trustee to consider additional factors before approving a lease renewal, extension, amendment, assignment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf (OCS) leases.
Specifically, this bill, among other things:
- Specifies that provisions regarding approval or disapproval of a lease renewal, extension, amendment, or modification for oil- and gas-related infrastructure also applies to a lease “assignment”.
- Requires SLC or a local trustee, before approving a lease renewal, extension, amendment, assignment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific OCS leases, to additionally consider (a) whether the operator has provided finalized certificates of financial responsibility obtained from the Office of Spill Prevention and Response and has provided financial assurances required for decommissioning, and (b) whether the lease renewal, extension, amendment, assignment, or modification (i) may impact public trust resources and values, (ii) is for, or connected to, infrastructure that has experienced a reportable incident, such as an oil spill, and (iii) is related to the use of well stimulation treatments, extended reach drilling and production, horizontal drilling and production, or other unconventional drilling and production techniques for resource extraction.
- Prohibits a lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific OCS, from being approved at the same properly noticed public meeting at which the lease renewal, extension, amendment, or modification is first presented.
- Requires SLC to consider whether approval of an assignment, transfer, or sublease of a lease or permit is in the best interest of the state when considering whether a proposed assignee is likely to comply with the terms of the lease or permit for the duration of both the primary term of the original lease or permit and any extended term of the lease because of production, as specified.
- Requires, once oil produced offshore California is onshore, offshore oil be transported to processing and refining facilities by a pipeline that uses the best achievable technology. Requires the State Fire Marshal (SFM) to request approval from the federal Pipeline and Hazardous Materials Safety Administration (PHMSA) to obtain interstate certification, as specified, for interstate hazardous liquid pipelines that are not under the SFM’s jurisdiction. Requires SFM, with the approval of the federal PHMSA, to: (a) inspect the pipelines to ensure they meet the requirements of the federal Hazardous Liquid Pipeline Safety Act of 1979, as specified, and (b) ensure the pipelines comply with specified pipeline safety requirements.
- Expands the definition of “expanded oil extraction” to mean an increase in the geographic extent of existing leases or units, including reactivation of a facility idled, inactive, or out of service for more than three years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies, on or after January 1, 2003.
- Deletes a provision in current law that allows for the shipment of certain types of crude oil over land. Provides that the reactivation of an existing oil and gas facility be permitted only if it does not result in the expansion of the oil and gas facility’s capacity, and if applicable conditions are met.
- Provides that repair, reactivation, and maintenance of an oil and gas facility that has been idled, inactive, or out of service for three years or more shall be considered a new or expanded development requiring a new coastal development permit (CDP). Requires development for the repair, reactivation, or maintenance of an oil pipeline that has been idled, inactive, or out of service for three years or more to obtain a new CDP. Requires the California Coastal Commission (CCC) or a local government with a certified local coastal program (LCP) to review and approve, modify, condition, or deny the permit based on specified requirements.
FISCAL EFFECT:
1) Potential loss in annual rental revenue of an unknown amount, potentially in excess of $150,000, from offshore oil- and gas-related infrastructure leases to the extent SLC or a local trustee denies one or more applications for a lease renewal, extension, amendment, assignment, or modification, as a result of the bill’s requirements and conditions (General Fund). SLC collected approximately $949,000 in rental revenue from its approximately one dozen pipeline right-of-way leases in fiscal year 2023-24.
2) SLC, SFM, and CCC report minor and absorbable implementation costs (various funds).
3) By (a) imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, and (b) imposing additional duties on a local government with a certified LCP in processing and reviewing an application for a CDP, this bill imposes a state-mandated local program. These costs are potentially reimbursable by the state, subject to a determination by the Commission on State Mandates (General Fund).
COMMENTS:
1) Background. SLC has had exclusive jurisdiction over the leasing of offshore state lands for oil and gas production since 1938 and also issues right-of-way leases for pipelines necessary to support offshore oil and gas infrastructure. SLC has not granted any new leases for offshore drilling within its jurisdiction – out to the three nautical miles limit – since 1969, although existing operations, such as at Platform Holly on the Ellwood field and Rincon Island on the Rincon field, have been allowed to continue.
According to SLC, today, the state has three active crude oil or petroleum extraction platforms off its coast in state waters and there are eight active platforms in federal waters. These platforms are connected to the shore via undersea pipelines that transport crude oil from the offshore platforms to onshore facilities that process the oil for sale. Current law prohibits, with certain exceptions, SLC or a local trustee from entering into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with OCS leases issued after January 1, 2018.
Sable Offshore Corporation (Sable) is attempting to restart the Santa Ynez Unit oil and gas operation off the coast of Santa Barbara County. For more information about the regulatory landscape and the status of Sable’s efforts to restart the pipeline, please see the Assembly Natural Resources Committee’s analysis of this bill. This bill makes several changes to state entities’ governing statutes that have jurisdiction over offshore oil drilling. While the bill is not specific to Sable – it applies statewide – Sable is the only entity currently trying to revitalize existing platforms for oil production. According to Sable, more than 20 existing platforms, operated by a variety of companies, using pipelines with leases through state tidelands would be affected when they come up for routine extensions, amendments, or transfers; thus, the bill would have impacts farther reaching than Sable.
2) Support and Opposition. Writing in support, a large coalition of environmental organizations contends the federal administration has “pledged to drill everywhere and will undoubtedly seek to expand Pacific offshore drilling. Current gaps in state law leave untoward paths for federal oil expansion through existing infrastructure in state waters.” The coalition argues the bill helps guard against oil spills by “ensuring that existing oil platforms and pipelines in state waters cannot be repurposed to expand federal drilling.” Finally, the coalition argues the bill requires strict environmental considerations “for the reactivation of oil projects that have been shut down. Recent oil spills off our coast are stark reminders of the need to decommission — not restart — antiquated infrastructure.”
Writing in opposition, Sable contends this bill is punitive and will impact facilities with long-held leases and rights “that are currently operating or working to reopen through an established and robust multi-agency regulatory framework.” The company argues, “Functionally, AB 1448 is designed to do one thing – prevent the repair and restart of critical oil production facilities both offshore and onshore in Santa Barbara County.” Sable contends restarting its Santa Ynez Unit will “put the state on track to replace one to two million barrels of foreign oil per month with a locally produced supply” and that this bill will result in significant lost tax revenue, job losses, and higher gas prices.
Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081
Date of Hearing: April 28, 2025
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Isaac G. Bryan, Chair
ABPCA Bill Id:AB 1448 (
Author:Hart) – As Introduced Ver:February 21, 2025
SUBJECT: Coastal resources: oil and gas development
SUMMARY: Expands existing prohibition on offshore oil drilling to further prohibit the use of existing oil infrastructure to expand federal oil production.
EXISTING LAW:
- Pursuant to the federal Outer Continental Shelf Lands Act, defines the outer continental shelf (OCS) as all submerged lands lying between the seaward extent of the state jurisdiction and the seaward extent of federal jurisdiction. (43 United States Code 1331 et seq.)
- Defines “Pacific Outer Continental Shelf” as all submerged lands lying seaward of California, Hawaii, Oregon, and Washington and outside of the area of lands beneath navigable waters, as set forth by the federal Submerged Lands Act, and all of which appertain to the United States and are subject to its jurisdiction and control. (Public Resources Code (PRC) 6245)
- Prohibits the State Lands Commission (SLC) or a local trustee from entering into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with OCS leases issued after January 1, 2018, with limited exceptions. (PRC 6245)
- Requires SLC or local trustee, prior to approving any lease renewal, extension, amendment, or modification to authorize new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific OCS leases issued after January 1, 2018, to consider whether the lease renewal, extension, amendment, or modification is necessary to protect the marine environment or to ensure human health and safety; whether the lease renewal, extension, amendment, or modification provides a benefit to the state beyond additional lease revenues; and, whether the lease renewal, extension, amendment, or modification will impact the volume of oil and gas that may be transported across state waters. (PRC 6245)
- Authorizes SLC, in considering whether the approval of an assignment, transfer, or sublease of a lease or permit, to consider whether a proposed assignee is likely to comply with the terms of the lease or permit for the duration of both the primary term of the original lease or permit and any extended term of the lease because of production, as determined by specified factors. (PRC 6804)
- Prohibits new or expanded oil and gas development from being considered a coastal-dependent industrial facility, and may be permitted only if found to be consistent with all applicable provisions and if all of the specified following conditions are met. (PRC 30262)
- Requires all oil produced offshore California to be transported onshore by pipeline only. Requires the pipelines used to transport this oil to use the best achievable technology to ensure maximum protection of public health and safety and of the integrity and productivity of terrestrial and marine ecosystems. (PRC 30262 (a)(5)(A))
- Defines “expanded oil extraction” as an increase in the geographic extent of existing leases or units, including lease boundary adjustments, or an increase in the number of well heads, , on or after January 1, 2003. (PRC 30262 (a)(5)(C)(iii))
- Authorizes repair and maintenance of an existing oil and gas facility to be permitted only if it does not result in expansion of capacity of the oil and gas facility, and if all applicable conditions are met. (PRC 30262 (b))
- Pursuant to the Elder California Pipeline Safety Act of 1981:
- Requires the State Fire Marshal (SFM) to adopt hazardous liquid pipeline safety regulations in compliance with the federal law relating to hazardous liquid pipeline safety, including, but not limited to, compliance orders, penalties, and inspection and maintenance provisions. (Government Code (GC) 51011)
- Requires each pipeline operator to file with the SFM an inspection, maintenance, improvement, or replacement assessment for older pipelines built before January 1, 1960, and any pipeline installed on or after January 1, 1960, for which regular internal inspections cannot be conducted, or which shows diminished integrity due to corrosion or inadequate cathodic protection. (GC 51012.4)
- Requires every newly constructed pipeline, existing pipeline, or part of a pipeline system that has been relocated or replaced, and every pipeline that transports a hazardous liquid substance or highly volatile liquid substance, to be tested in accordance with federal regulations and every pipeline more than 10 years of age and not provided with effective cathodic protection to be hydrostatically tested every three years, except for those on the State Fire Marshal's list of higher risk pipelines, which shall be hydrostatically tested annually. (GC 51013.5)
- Requires the SFM, or an officer or employee authorized by the SFM, to annually inspect all intrastate pipelines and operators of intrastate pipelines under the jurisdiction of the SFM to ensure compliance with applicable laws and regulations. Prohibits, for portions of interstate pipelines that are not under the jurisdiction of the SFM, the SFM from becoming an inspection agent for those pipelines unless all regulatory and enforcement authority over those pipelines is transferred to the SFM from the federal Pipeline and Hazardous Materials Safety Administration (PHMSA). (GC 51015.1)
- Pursuant to Governor Newsom’s direction, requires the State Air Resources Board to evaluate how to phase out oil extraction by 2045 through the climate change scoping plan, the state’s comprehensive, multi-year regulatory and programmatic plan to achieve required reductions in greenhouse gas (GHG) emissions. (Executive Order N-79-20)
THIS BILL:
- Requires SLC or a local trustee, before approving a lease renewal, extension, amendment, assignment, or modification for oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific OCS leases, to additionally consider the following:
- Whether the lease renewal, extension, amendment, assignment, or modification may impact public trust resources and values.
- Whether the lease renewal, extension, amendment, assignment, or modification is for, or connected to, infrastructure that has experienced a reportable incident, such as an oil spill.
- Whether the lease renewal, extension, amendment, assignment, or modification is related to the use of well stimulation treatments, extended reach drilling and production, horizontal drilling and production, or other unconventional drilling and production techniques for resource extraction.
- Whether the operator has provided finalized certificates of financial responsibility obtained from the Office of Spill Prevention and Response and has provided financial assurances required for decommissioning.
- Prohibits a lease renewal, extension, amendment, assignment, or modification that will increase the volume of oil and gas conveyed across state waters, including by commencing, increasing, intensifying, or restarting production from the Pacific OCS, from being approved at the same properly noticed public meeting at which the lease renewal, extension, amendment, or modification is first presented.
- Provides that a lease shall be approved by not less than two-thirds of all members of SLC or the governing board of the local trustee.
- Requires SLC to consider whether approval of an assignment, transfer, or sublease of a lease or permit is in the best interest of the state when considering whether a proposed assignee is likely to comply with the terms of the lease or permit for the duration of both the primary term of the original lease or permit and any extended term of the lease because of production.
- Requires, once oil produced offshore California is onshore, it shall be transported to processing and refining facilities by pipeline that uses the best achievable technology.
- Requires, whether onshore or offshore, the pipelines to be certified by the SFM as meeting all of the following conditions:
- The pipeline meets the requirements of the federal Hazardous Liquid Pipeline Safety Act of 1979 (42 U.S.C. Sec. 60101 et seq.), Part 195 (commencing with Section 195.0) of Title 49 of, the Federal Code of Regulations, and Chapter 14 (commencing with Section 2000) of Title 19 of the California Code of Regulations.
- The State Fire Marshal has not exempted the pipeline because the SFM determined that the risk to public safety is slight and the probability of injury or damage remote.
- The pipeline complies with requirement that any new or replacement pipeline near environmentally and ecologically sensitive areas in the coastal zone shall use best available technology, including, but not limited to, the installation of leak detection technology, automatic shutoff systems, or remote controlled sectionalized block valves, or any combination of these technologies, based on a risk analysis conducted by the operator, to reduce the amount of oil released in an oil spill to protect state waters and wildlife.
- Redefines “expanded oil extraction” as an increase in the geographic extent of existing leases or units, including lease boundary adjustments, or an increase in the number of well heads, reactivation of a facility idled, inactive, or out of service for more than three years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies, on or after January 1, 2003.
- Deletes provision allowing new or expanded oil extraction operations, if the crude oil is so highly viscous that pipelining is determined to be an infeasible mode of transportation, or where there is no feasible access to a pipeline, shipment of crude oil to be permitted over land by other modes of transportation, including trains or trucks, which meet all applicable rules and regulations, excluding any waterborne mode of transport.
- Authorizes reactivation of an existing oil and gas facility to be permitted only if it does not result in expansion of capacity of the oil and gas facility, and if all applicable conditions are met.
- Provides that repair, reactivation, and maintenance of an oil and gas facility that has been idled, inactive, or out of service for three years or more shall be considered a new or expanded development requiring a new coastal development permit (CDP).
- Requires development for the repair, reactivation, or maintenance of an oil pipeline that has been idled, inactive, or out of service for three years or more to obtain a new CDP.
- Requires the California Coastal Commission (Commission) or a local government with a certified local coastal program to review and approve, modify, condition, or deny the permit based on specified requirements.
- Provides that no reimbursement is required by this bill pursuant to Section 6 of Article XIII B of the California Constitution.
FISCAL EFFECT: Unknown
COMMENTS:
- Author’s statement:
Assembly Bill 1448 is a crucial step towards safeguarding California’s iconic coastline and ensuring a sustainable future for our communities. By placing restrictions on oil extraction activities off the coast, the bill prohibits the California State Lands Commission from approving new leases that would expand the construction of oil- and gas-related infrastructure, as well as making revisions to existing leases. In addition, the bill takes proactive measures to protect our environment by requiring that all pipelines used to transport oil be certified by the Office of the State Fire Marshal. This certification ensures that the highest safety standards are met, significantly reducing the risk of oil spills that could devastate our oceans and coastal ecosystems. Through these critical provisions, Assembly Bill 1448 empowers us to protect and preserve our cherished coastlines for generations to come, striking a balance between environmental preservation and responsible energy practices.
- Offshore oil production. California’s lands and offshore waters have hosted significant crude oil extraction for more than a century. In the Pacific OCS, 23 oil and gas production facilities have been installed in federal waters off the coast of California; twenty-two of these facilities produce oil and gas, and one is a processing facility. Six companies are operating offshore oil and gas facilities in the region. The federal Bureau of Ocean Energy Management’s (BOEM) 2023 Field & Reservoir Reserve Estimates Report estimates that more than 1.3 billion barrels of oil have been cumulatively produced off the coast of California. Since the mid-1980s, however, crude oil extraction has declined each year largely due to decreasing levels of easily accessible crude oil. BOEM’s 2021 Assessment of Oil and Gas Resources: Assessment of the Pacific Outer Continental Shelf Region estimated undiscovered, technically and economically recoverable oil and natural gas resources outside of known oil and gas fields on the Pacific OCS. The total resource endowment (original recoverable reserves and undiscovered resources) of the Pacific OCS is estimated to be 11.82 billion barrels of oil and 18.36 trillion cubic feet of gas.
- History of oil spills. In June 1968, 2,000 gallons of crude oil spilled from Phillips' Platform Hogan, and in November, a local ballot referendum was successful in preventing the construction of an onshore oil facility at Carpentaria. Just six months later, in January 1969, the Santa Barbara oil spill in the Santa Barbara Channel ended up being the largest oil spill in United States waters at the time. It remains the largest oil spill to have occurred in the waters off California. The source of the spill was a blow-out on Union Oil's Platform A, and spilled an estimated 80,000 to 100,000 barrels of crude oil spilled, which polluted the coastline from Goleta to Ventura as well as the northern shores of the four northern Channel Islands. The spill had a significant impact on marine life in the Channel, killing an estimated 3,500 sea birds, as well as marine animals such as dolphins, elephant seals, and sea lions. The public outrage from the spill resulted in numerous pieces of environmental legislation within the next several years that forms the legal and regulatory framework for the modern environmental movement in the U.S.
On May 19, 2015, a hazardous liquid pipeline known as the Line 901 pipeline owned and operated by Plains Pipeline failed and spilled more than 140,000 gallons of oil, known as the Refugio oil spill. The corroded pipeline that caused the spill closed indefinitely, resulting in financial impacts to the county estimated as high as $74 million as it and a related pipeline remained out of service for three years. The cost of the cleanup was estimated by the company to be $96 million with overall expenses including expected legal claims and potential settlements to be around $257 million.
Plains represents that, following the Refugio incident and pursuant to PHMSA, it performed a comprehensive review of its Emergency Response Plan and Training Program, and revised and updated its Response Plan for Onshore Oil Pipelines for Line 901 and Line 903. As part of the revision, Plains identified the locations of culverts along the pipelines’ rights-of-way and provided containment and recovery techniques for responding to spills that may occur near those culverts.
- State moratorium on offshore oil drilling. SLC has had exclusive jurisdiction over the leasing of offshore state lands for oil and gas production since 1938 and also issues right-of-way leases for pipelines necessary to support offshore oil and gas infrastructure. SLC has not granted any new leases for offshore drilling within its jurisdiction – out to the three nautical miles limit – since 1969, although existing operations, such as at Platform Holly on the Ellwood field and Rincon Island on the Rincon field, have been allowed to continue. A proposal to slant drill into the state-controlled zone from an existing platform outside of it, on the Tranquillon Ridge, was rejected in 2009 by the SLC by a 2–1 vote.
According to SLC, today, the state has three active crude oil/petroleum extraction platforms off its coast in state waters and there are eight active platforms in federal waters. These platforms are connected to the shore via undersea pipelines that transport crude oil from the offshore platforms to onshore facilities that process the oil for sale.
Current law prohibits SLC or a local trustee from entering into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with OCS leases issued after January 1, 2018. Exceptions to this prohibition include an order from the President of the United States for distribution of the Strategic Petroleum Reserve, or if it is in the best interest of the state.
- Federal laws. Production from existing leases has been allowed almost without break since the 1969 spill, as well as new drilling from existing platforms within lease boundaries. In 1976, leases were sold off the Orange County coast, resulting in the construction of Platforms Edith, Elly, Ellen, and Eureka; in 1979, Platforms Harvest and Hermosa were constructed in federal waters near Point Arguello, and in 1981, the oil fields in that area were further developed with the sale of another pair of leases which now contain platforms Hidalgo and Irene. No new leases have been granted in the OCS since 1981.
In 1981 Congress enacted a moratorium on new offshore oil leasing, with exceptions in the Gulf of Mexico and parts of offshore Alaska, which remained in effect until 2008 when Congress did not renew it. Even though there was a moratorium on new leases, Exxon installed Platforms Harmony and Heritage in the Santa Barbara Channel in 1989, in more than 1,000 feet of water, completing development of their Santa Ynez Unit (which includes the Hondo and Pescado Oil Fields). Several federal leases remain undeveloped, including the Gato Canyon Unit southwest of Goleta.
On January 6 of this year, President Biden blocked drilling for oil in more than 625 million acres of U.S. ocean — the entire East Coast and West Coast, the eastern Gulf of Mexico, and a portion of the Bering Sea. President Biden's action prohibits new leases in the identified regions; it does not affect any existing leases. All together, the swathes of ocean set aside in this action include more than a third of the offshore U.S. oil and gas that is likely economical to extract. Courts found that the OCS Lands Act allows a president to protect waters indefinitely, and doesn't include any provision for removing that protection.
- Sable pipeline. Sable Offshore Corporation (Sable) is attempting to restart the Santa Ynez Unit oil and gas operation off the coast of Santa Barbara County. The Santa Ynez Unit includes three offshore platforms in federal waters connected to shore by offshore pipelines, onshore pipelines, the Ellwood Pier, mooring buoys, and the Las Flores Canyon Processing Facility. The onshore pipelines include pipelines identified as CA-324 and CA-325 (previously known as Lines 901 and 903), which were responsible for the 2015 Refugio oil spill.
Sable gained approval from the Santa Barbara County Planning Commission on October 30, 2024, to transfer the ownership and permits of Pipelines CA-324, CA-325A and CA 325B (collectively known as the Santa Ynez Unit) from Exxon Mobil (a current lease holder) to Sable.
For the pipeline to restart, Sable would have to receive county permits for the onshore processing facilities and the pipeline, a waiver from the SFM, permits for repair work on the pipeline’s valves from the Commission and a decommissioning bond posted to the California Geologic Energy Management Division.
In February, PHMSA approved the waiver, which requires Sable to comply with more than 60 conditions, including this pipeline be hydrostatically tested using a “spike” hydrostatic test prior to putting the pipeline into operation, and the pipeline be inspected with ultrasonic thickness wall measurement and ultrasonic shear wave crack detection in-line inspection tools capable of assessing seam integrity and detecting corrosion, deformation, and cracking-type anomalies within seven days of achieving initial steady state operation of the pipeline. Thereafter, the pipeline must be reassessed at least every year.
The Department of Fish and Wildlife (DFW) issued a Notice of Violation to Sable for work conducted on state lands that violated the Fish and Game Code, and requested that Sable discontinue any work on the Carrizo Plain Ecological Reserve and contact DFW to discuss remedial measures at the impacted sites by December 20, 2024. DFW is continuing its investigation and may refer this matter to the local district attorneys or the Office of the Attorney General.
The Commission issued a cease-and-desist order and required Sable to file an application for a CDP before the pipeline can resume any construction activity, let alone operations. Sable has completed nearly all the work, with the exception of the work they need to do in Gaviota State Park and the Santa Barbara Conservancy property.
While the bill is not specific to Sable – it applies statewide, Sable is the only entity currently trying to revitalize existing platforms for oil production. According to Sable, more than 20 existing platforms, operated by a variety of companies, using pipelines with leases through state tidelands would be affected when they come up for routine extensions, amendments, or transfers; thus, the bill would have impacts farther reaching than Sable.
- This bill. AB 1448 makes several changes to state entity’s governing statutes that have jurisdiction over offshore oil drilling:
- Expands the existing prohibition on new oil and gas leases to any Pacific OCS lease upon tidelands and submerged lands within state waters;
- Specifies that the requirement regarding approval or disapproval of a lease renewal, extension, amendment, or modification also applies to a lease assignment;
- Requires the onshore transportation of oil to processing and refining facilities to use the best achievable technology;
- Revises the definition of “expanded oil extraction” to include reactivation of a facility idled, inactive, or out of service for more than 3 years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies; and,
- Requires a pipeline used for transporting the oil produced offshore to be certified by the SFM as meeting PHMSA requirements and state laws and regulations.
Environmental organizations in support of the bill argue that “the Trump Administration has pledged to drill everywhere and will undoubtedly seek to expand Pacific offshore drilling. Current gaps in state law leave untoward paths for federal oil expansion through existing infrastructure in state waters. AB 1448 takes a firm stand against efforts to expand drilling off our coast, to protect against associated risks to California interests.”
Sable writes in response to the bill that, “AB 1448 would impact existing facilities with long-held leases and rights that are currently operating or working to reopen through an established and robust multi-agency regulatory framework. Functionally, AB 1448 is designed to do one thing - prevent the repair and restart of critical oil production facilities both offshore and onshore in Santa Barbara County. Halting this planned restart of Sable’s Santa Ynez Unit and Las Flores Pipeline System would have serious implications for the region and California at large.”
- Committee amendments. The committee may wish to amend the bill to make the following changes:
- Maintain a date in PRC 6245 (a) and update it to January 1, 2025.
- Delete the 2/3 vote requirement in PRC 6245 (d)(2).
- Amend PRC 30262 to require the SFM to request authority from PHMSA to obtain interstate certification for interstate hazardous liquid pipelines not under its jurisdiction.
- Strike condition related to the SFM exempting a pipeline pursuant to GC 51011.
REGISTERED SUPPORT / OPPOSITION:
Support
Center for Biological Diversity (sponsor)
Environmental Defense Center (sponsor) 350 Bay Area Action
350 Santa Barbara
7th Generation Advisors
Azul
Ban Sup (single Use Plastic)
Business Alliance for Protecting the Pacific Coast
California Coastal Protection Network
California Environmental Voters
Central Coast Climate Justice Network
Citizens Planning Association
Clean Water Action
Climate Action California
Climate First: Replacing Oil & Gas
Climate Hawks Vote
Climate Reality Project San Diego
Clue-SB Environmental Justice Group
Coastal Band of the Chumash Nation
Defenders of Wildlife
Elected Officials to Protect America
Environmental Action Committee of West Marin
Food & Water Watch
Friends Committee on Legislation of California
Friends of the Earth
Get Oil Out!
Los Padres Forestwatch
Monterey Bay Aquarium
Natural Resources Defense Council
Ocean Conservation Research
Oceana
Oil & Gas Action Network
Patagonia
Pesticide Action & Agroecology Network
Sacred Places Institute for Indigenous Peoples
San Francisco Bay Physicians for Social Responsibility
San Francisco Baykeeper
Santa Barbara Channelkeeper
Santa Barbara County Action Network
Santa Lucia Chapter of the Sierra Club
Sierra Club California
Sierra Club Santa Barbara Group
Society of Fearless Grandmothers - Santa Barbara
Surfrider Foundation
Surfrider Foundaton, Santa Barbara Chapter
UCSB Environmental Affairs Board
UCSB Environmental Law Club
Vote Solar
Wishtoyo Chumash Foundation
Opposition
California Independent Petroleum Association
Sable Offshore Corp
Western States Petroleum Association
Analysis Prepared by: Paige Brokaw / NAT. RES. /
Discussed in Hearing
Assembly Floor
Senate Floor
Senate Standing Committee on Natural Resources and Water
Senate Standing Committee on Appropriations
Senate Standing Committee on Natural Resources and Water
Assembly Floor
Assembly Standing Committee on Natural Resources
Bill Author
Bill Co-Author(s):