Assembly Standing Committee on Natural Resources

And we need one more person for a quorum. There she is. Madam Secretary, can we establish a quorum?

[Roll Call]

Thank you, Madam Secretary. Can we call the roll on the consent calendar? zero, we have a motion by Flora, a second and third by Ms. Pellerin and Bauer-Kahan.

Item number one, SB 1158. The motion is do pass to appropriations. Item number four, SB 1395. The motion is do pass to appropriations. [Roll Call]

We'll leave it open for Mr. Wood, but it has the votes to get out. Senator Monique Limon, if you are available, you are the only bill on our agenda still. SB 1304. You may also send your talking points to Assemblymember Friedman. She stays ready. Senator, it's good to see you. You may begin whenever you're ready.

Thank you so much.

Take the motion after the presentation.

Great. So we have a motion and a second. Thank you, members. First, I want to thank the committee staff and the committee for their work on this bill, and I'd like to accept the suggested amendments. I commit to continuing to work with the committee and agencies to ensure the environmental review provisions are thorough and practical.

SB 1304 establishes requirements for state approval of an aquifer exemption proposal of oil and gas operations by requiring the state water resources to control and control board to conduct at least one decision making public hearing, providing the public an additional opportunity to speak on an exemption proposal from CalGEM.

And prior to sending to the US EPA, I have with me Matt Campa from the Environmental Defense Center and Linda Escalante with the Natural Resources Defense Council to speak in support of the bill.

In whatever order you want.

Good afternoon, Assembly Members Chair Bryan. My name is Matthew Campa. I'm an attorney with the Environmental Defense Center here today on behalf of Sierra Club California, Santa Barbara County Action Network, and all Californians that depend on unpolluted groundwater for their lives and livelihoods.

Through our involvement in the Cat Canyon Aquifer exemption process, which proposes 700 new oil wells to inject toxic waste through an aquifer that provides drinking water for 150,000 Californians, we learned that the existing law and procedures are inadequate to protect the public's vital drinking, domestic and agricultural water supplies.

Under the existing framework, there is no mechanism for public participation, no public hearing, and no required analysis of potential impacts before the state submits a proposal to EPA. The lack of transparency and informed decision making threatens frontline Californians that already face severe risks and inequities in regards to access to clean drinking water.

SB 1304 remedies these concerns by creating a discretionary decision for the State Water Resource Control Board to ensure consistency with existing state and federal law. The bill protects frontline communities from additional cumulative threats by prohibiting aquifer exemptions in areas identified as at risk for groundwater and drinking water pollution in Calanviral screen.

Calenviral screen incorporates data from the State Water Resource Control Board's water database, but also includes critical demographic and population characteristics that are necessary to ensure environmental justice is achieved. The state's recent conduit analysis in Cat Canyon confirms the threat. Of the 488 wells analyzed, 291, approximately 60% were identified as potential conduits.

This is just one oil field in one location. Similar analyses are occurring throughout the state. SB 1304 will provide a robust public review process and protect important groundwater sources for local communities that truly have no other option. Groundwater is a critical resource both for our economy and public health.

This isn't a situation where we should wait for a catastrophe to happen before acting. Thank you for your time and consideration, and please vote yes on SB 1304.

Incredible timing.

And good afternoon, Chair Bryan and members. I am Linda Escalante with NRDC. I first thank Senator Limon for her great leadership on this matter. Actually, this is a bit personal to me because I don't know if you guys remember former Senator Tom Hayden, but this is as a former protege of him.

His I can say that it's near and dear to my heart to be here, and I'm proud to do this. Oil companies often seek exemptions from the state and the US EPA to inject toxic wastewater produced in the oil production process through aquifers that are used for drinking water, agriculture, or other beneficial uses.

In theory, the wastewater is injected back into the ground through layers of sedimentary rock and into rock formations considered impermeable, where toxic fluids can now migrate vertically or horizontally. In reality, injecting this waste can pose a potential conduit path for the pollution to migrate into aquifers used for drinking water.

Research demonstrates this concern in multiple oil fields in the Southern California, from cat Cannon oil field in Santa Barbara county to Posto Creek oil Field in Kern. county.

This study has determined nuance, permeability of geologic formations, uncertain flow paths, well integrity issues, and unpredictable faults as factors that can cause fluid migration and potentially cause serious harm to the public.

The information gathered through public demonstrates a need for more rigorous public environmental review that is missing in the current process of exempting an aquifer for injection by the California Geologic Energy Management Division and the State Water Resources Control Board.

SB 1304 establishes requirements for consideration of an aquifer exemption for an undergrad injection well by ensuring an environmental review of a proposal is completed by the State Water Board, including public hearing regarding the proposal where a determination is made pursuant to CEQA and state aquifer assumption law prior to referral to the US CPA.

Requiring a higher level State of review and an in depth environmental analysis and public process ensures local communities and vulnerable populations are protected. Thank you. Respectfully asked for an aye vote.

Thank you so much. Any persons here in the hearing room who would like to register their support for this measure? Don't worry, Drew. Got you.

Melissa Romero, California Environmental Voters, in support.

Do we have any opposition to this measure.

Mr. Chair and members, Paul Deiro representing Western States Petroleum Association. I do apologize for ruining the consent mood that we had, but we have had a very good meeting with the author staff on this. We have a couple of fundamental issues.

So when we drill a well a mile down, what normally comes up is 90% brackish salinity water and 10% hydrocarbons. So when we go through an aquifer exemption process, it is not only CalGEM and the waterboard and it's a multi year process, it's federal EPA ultimately giving the approval to the aquifer exemption.

The aquifer exemption process does one thing. It determines whether the water mixed with the hydrocarbons has a potential public use drinking water, ag water. Can it be treated? If it does have a potential use as determined by the Water Board and CalGEM, you move on. If it does not, you are granted an aquifer exemption.

And the second process is we have to then get a permit for an underground injection well which is approved by the Water Board and CalGEM. During that process, cequa is included in the review. So you have one process that determines whether the water can be usable.

You have another process where it looks at the integrity of the well, the well traveling through potential groundwater and the well traveling all the way down into the hydrocarbon zone. Fundamentally different. One last point is there is one section in the bill, section one, number four, which prohibits the injection of fluids underground.

We believe that it is written so broad that it can impact ag waste manufacturers, wastewater, and even the injection of carbon, prohibiting future carbon capture sequestration projects. That is an issue that is fundamental. But for all of those reasons, and I appreciate the extra time we opposed the bill and ask for a no vote.

Thank you, sir. Any other persons in the hearing room who would like to register their opposition to this bill?

Chair and members Dean Talley with the California Manufacturers and Technology Association. Opposed unless amended , in aligning with our comments from WISPA. Thank you.

Thank you. And I'll turn it back to committee members. Any questions? Comments, concerns from members of the committee? Senator, would you like to close?

I respectfully ask for an aye vote.

We have a motion by Bauer-Kahan and second by Ms. Friedman. This bill is due pass record from the chair. Madam Secretary, can we call the roll.

Item number two, SB 1304? The motion is due pass as amended to appropriations. [Roll Call]

Bill is out.

Thank you, Madam Secretary.

Madam Secretary, can we open the roll for absent members?

[Roll Call]

This concludes today's Natural Resource Committee hearing.