SB 1259: Refineries: decommissioning and remediation: cost estimates.

Existing law establishes the State Water Resources Control Board in the California Environmental Protection Agency (CalEPA) and the California regional water quality control boards which prescribe waste discharge requirements in accordance with the Federal Water Pollution Control Act and the Porter-Cologne Water Quality Control Act.

Existing law, the Petroleum Industry Information Reporting Act of 1980, requires refiners, as defined, to report monthly to the State Energy Resources Conservation and Development Commission (Energy Commission), for each of their refineries, specified information, and requires that any confidential information pertinent to the responsibilities of the Energy Commission, as provided, which is obtained by another state agency be available to the Energy Commission and be treated in a confidential manner.

This bill would require, no later than December 31, 2028, every refiner, as defined for purposes of the bill, to submit to CalEPA a retirement plan setting forth information concerning decommissioning and site remediation for every refinery it owns, operates, or controls, as provided. The bill would require the CalEPA, no later than 6 months following the submission of the retirement plan, to review the retirement plan for completeness and reasonableness and to make a determination as to whether the retirement plan complies with the requirements imposed by the bill. The bill would require CalEPA, if it determines that the retirement plan complies with the bills requirements, to make the retirement plan available on CalEPAs internet website for public comments for not less than 45 days. The bill would authorize CalEPA to require further revisions to the retirement plan after the public comment period, as provided, before it is deemed final. The bill would require CalEPA, after CalEPA has determined that no further revisions are necessary, to promptly post the final retirement plan on its internet website.

This bill would require a refiner who who, on or after January 1, 2026, gives notice of intent to permanently shut down, shut down to reconfigure, or sell a refinery in a transaction that may result in a refinery shutting down or reconfiguring, as provided, to submit either the required retirement plan, or, if a final retirement plan has been released, an update of the retirement plan within a specified timeframe, as provided. The bill would require, on or before December 31, 2027, CalEPA to publicly provide an overview of the methods, costs, and timelines associated with soil and groundwater remediation that have been employed at refineries that have undergone decommissioning and remediation and to update the overview, as provided.

This bill would make information filed pursuant to the above-described provisions confidential information, as provided.

The bill would require a refiner to file the final retirement plan concurrently with the Energy Commission and the Division of Occupational Safety and Health. The bill would authorize CalEPA, the Energy Commission, and the Division of Occupational Safety and Health to share the information with the Legislature, a state or local any governmental agency, or a local government, including an air pollution control district or an air quality management district, only if the Legislature, the state or local governmental agency, or the local government that receives the information agrees to maintain the confidentiality of the information. The bill would further require any information that is, or may be, accessible by the public, as provided, by CalEPA, the Department of Toxic Substances Control, a certified unified program agency, or a local government, to be made publicly available even if that information is also contained in the retirement plan.

This bill would require, on or before December 31, 2027, CalEPA, in coordination with the Energy Commission, to compile a survey of existing local, state, and federal statutory and regulatory requirements applicable to refiners concerning decommissioning, closure, financial assurance, and site remediation obligations, as provided, for a specified purpose.

This bill would require CalEPA, no later than one year after the retirement plans are deemed final, to publish publicly on CalEPAs internet website a report assessing the total decommissioning and remediation liabilities for refineries in the state, and identify opportunities for greater transparency prior to the closure notice, as provided.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.