Senate Standing Committee on Natural Resources and Water
- Josh Becker
Legislator
AB 2215. Calderon has been pulled by the author from today's agenda. 10 bills are proposed for consent. Bills will be heard in file order. If necessary, we'll recess for lunch and reconvene in the same room in the afternoon. I'm gonna go present myself over in appropriations and come right back. So I'm gonna turn the gavel over to our vice Chair.
- Kelly Seyarto
Legislator
Alright. Did he already go over this? Okay. So we're gonna try to be in file order, but we're also going to, take advantage of people that come in out of file order and are the only authors here, which we apparently have that situation right now. So Mister Hart, if you would like to come up.
- Kelly Seyarto
Legislator
That way you don't have to nervously look at the door and hope that your colleagues don't come strolling in. Mister Hart, you are are, presenting AB 2461. Correct? That is correct. Alright. Thank you. You may begin when you're ready.
- Gregg Hart
Legislator
Thank you so much for the opportunity to be here on time and and first step. Thank you Mister Vice Chair and the committee staff for their work on this bill. I'll be accepting the committee amendment. I'm pleased to present AB 2461, a bill to clarify oil and gas bonding requirements in California to ensure that companies, not taxpayers, are paying the full cost of properly plugging wells and decommissioning facilities.
- Gregg Hart
Legislator
California has tens of thousands of aging and inactive oil wells that eventually need to be plugged.
- Gregg Hart
Legislator
According to the Carbon Tracker Initiative, California's onshore oil production decommissioning and site remediation liabilities could total as much as $21 billion. Existing law, AB 1167, passed in 2023 already requires operators acquiring wells or facilities to provide financial assurance sufficient to cover plugging, abandonment, and other costs. When operators go bankrupt or otherwise face financial trouble, taxpayers are often left on the hook to properly plug wells and decommission facilities.
- Gregg Hart
Legislator
Over the last two years, multiple acquisitions through all stock deals by California Resources Corporation were determined by CalGEM to not trigger these financial assurance requirements. In 2024, CRC acquired Air Energy, one of the California's largest oil producers.
- Gregg Hart
Legislator
In December 2025, CRC also announced the acquisition of Berry Corporation for $717 million, including the assumption of Berry's debt. Both transactions were structured as all stock deals, meaning control of the companies transferred without a traditional asset sale. So CRC was determined to not have to meet financial assurance requirements designed for this exact type of ownership change. That bill, AB 1167, was designed and intended by the legislature to prevent operators from shifting closure costs to financially unstable operators in exactly these types of circumstances.
- Gregg Hart
Legislator
AB 2461 strengthens accountability by clarifying that even in the case of these all stock transactions or corporate restructuring, existing financial requirements already approved by this legislature still apply.
- Gregg Hart
Legislator
This bill will also strengthen financial assurance by eliminating the carve out for certain higher producing wells. This legislation strengthens California's oil and gas bonding requirements to ensure that companies, not taxpayers, are paying the full cost to properly plugging wells and decommissioning facilities. Speaking in support of the bill today is Victoria Rome, Director of California Government Affairs with the Natural Resources Defense Council, and Pasha Madhavi, Associate Professor and Acting Chair of Political Science at UC Santa Barbara.
- Kelly Seyarto
Legislator
I will thank you both both for being here this morning. And if you could limit your comments to two minutes each, that would be appreciated. We have a lot of bills on the agenda today.
- Victoria Rome
Person
Absolutely. Thank you. Good morning, Mister Chair and members. I'm Victoria Rome with NRDC, one of the cosponsors of AB 2461. The state and taxpayers face a projected $21 billion liability, if oil companies don't meet their obligations to clean up their oil wells.
- Victoria Rome
Person
Assemblymember Wendy Carrillo from 2023, AB 1167, sought to address that risk, which is heightened when wells are transferred from one owner to another. That law was written to apply to acquiring the right to operate a well by any means, including, and I quote, "By purchase, transfer, assignment, conveyance, exchange, or other disposition." The long standing definition of the right to operate a well is equally broad and includes anyone who has the right to control a well or production facility.
- Victoria Rome
Person
In NRDC's view, CalGEM should have applied AB 1167 to the CRC era, acquisition, and their failure to do so is putting California's taxpayers and communities at real risk. Following a similar merger with Berry, CRC now owns nearly half of the idle wells in California.
- Victoria Rome
Person
As a result, there is very limited financial assurance for the well closure liability that CRC now holds. AB 2461 is an important clarification to that original law. We urge your aye vote. Thank you.
- Paasha Mahdavi
Person
Good morning, Mister Chair. My name is Paasha Mahdavi. I'm an Associate Professor of Energy Politics at UC Santa Barbara. My research for the past twenty years has focused on oil and gas policy, including as an adviser for oil producing governments here in California and around the world. I'm here today to testify in support of AB 2461.
- Paasha Mahdavi
Person
The cleanup of oil wells that are no longer producing is a critical issue here in California, where over 30,000 oil and gas wells sit idle, and roughly 18,000 of the 54,000 active wells are marginal producers, those that extract 15 or fewer barrels per day. That will soon require remediation. Time and time again, companies have transferred these unproductive assets to operators that lack the financial capacity to cover a well's end of life cleanup cost.
- Paasha Mahdavi
Person
Research has shown that greater accountability for well cleanup provides clear benefits for communities across the state, improved air and water quality, increased property values, improved agricultural productivity, not to mention the sizable climate benefits of remediation. But how to pay for cleanup?
- Paasha Mahdavi
Person
So far, the answer has been the taxpayer. My own research finds overwhelming bipartisan public support for companies, not the state, to increasingly foot the bill. 68.9% of residents in oil producing communities in Kern County, LA County, and Ventura County say that oil and gas companies should pay the costs of well plugging and restoration. 2461 strengthens requirements on well decommissioning to ensure full financial assurance from oil companies when transferring ownership.
- Paasha Mahdavi
Person
And in general, this bill imposes the same level of accountability on the oil industry that every other industry from chemical manufacturers to steel mills to cell tower operators must face.
- Paasha Mahdavi
Person
When your asset is no longer generating value, you clean up after your mess. You cannot just pawn it off to someone else who can't afford the cleanup costs. I respectfully ask for the committee for your aye vote on 2461.
- Kelly Seyarto
Legislator
And thank you both of you for adhering to the two minute rule. That's awesome. You're able to get all your testimony in under two minutes. A good rule for others to follow. At this time, we'll take people that would like to support this measure come up to the microphone. State your name. Yeah. Turn turn around, Mister Hart. You can see how close it was to you not presenting first.
- Christina Scaringe
Person
Good morning. Christina Scaringe for the Center for Biological Diversity, proud cosponsor. I'm also registering support for the Center on Race, Poverty, and the Environment, Union of Concerned Scientists, Food and Water Watch, Clean Water Action, Consumer Watchdog, Physicians for Social Responsibility Los Angeles, Baykeeper San Francisco Bay, and I don't know if Mitch is here, California Federation of Teachers. Thanks.
- Katie Valenzuela
Person
Good morning. Katie Valenzuela, on behalf of Communities for a Better Environment, and support. Thank you.
- Marsha Lieberson
Person
Good morning. I'm a little shorter. My name is Marsha Lieberson from Walnut Creek. The organization said support 2461 and therefore oppose AB 2716, are 350 Bay Area Action, Protect Monterey County, 350 Humboldt County, 350 San Diego, 350 South Bay, covers Los Angeles, 350 Southland, Ventura County in Riverside, and Legislative Alliance, and lastly, Climate Health Now.
- Josefina Barrantes
Person
Good morning. Josefina Barrantes in support from EPIC: Environmental Protection Information Center.
- Mercedes Macias
Person
Hi, everyone. Mercedes Macias, Sierra Club California and Center for Biological Diversity, in support.
- Mark Fenstermaker
Person
Good morning, Mister Vice Chair, members. Mark Fenstermaker for Earthjustice, in support.
- Vanessa Flores
Person
Vanessa Flores, on behalf of Clean and Healthy California, in support.
- Marissa Hagerman
Person
Good morning, Vice Chair and members. Marissa Hagerman, Trattenprice Price Consulting, registering support for California Environmental Voters. Thank you.
- Ruth McDonald
Person
Good morning. Doctor Ruth McDonald with Climate Action California, Volunteer, in support. Thank you.
- Jim Lindburg
Person
Jim Lindburg, Friends Committee on Legislation of California, in support.
- Karen Lang
Person
Good morning. Karen Lang, on behalf of the City of Goleta, in support.
- Kelly Seyarto
Legislator
Alright. Anybody else? Going once, twice, sold. Alright. At this time, do we have any, speakers in opposition to this as as lead opposition witness?
- Ben Turner
Person
I'm gonna be neutral, if we can testify on on that regard, if you don't mind.
- Ben Turner
Person
Yeah. I'll be lead neutral. I can standing is fine. Thank you. My name is Ben Turner.
- Ben Turner
Person
I represent Signal Hill Petroleum. I work for Axiom Advisors. We are to quote Daniel Barad from the Union of Concerned Scientists in the SB 237 dialogue last year, "We are aggressively neutral to this bill." When the Governor signed AB 1167, he noted that there could be significant unintended consequences that could result in increased risk of desertion due to the bonding restrictions in this bill, as reflected in the committee analysis.
- Ben Turner
Person
There have been a significant reduction in transfers that reflect a freeze in assets, for oil and gas, operators that have reduced the value of their business properties, reduced access to capital and, in fact, increased the risk of desertion.
- Ben Turner
Person
This bill, however, it consistent with, you know, actually a bunch of members from Santa Barbara, AB 1960 by Nava, AB 2729 by, Das Williams, AB 1057 from Limon, and AB 1866 by Assemblymember Hart. It's a long chain of bills that have strengthened bonding and transfer requirements to reduce the risk of idle wells. So, this bill in conjunction with AB 2716, which you'll hear later today, will tighten the bonding requirements for transfers.
- Ben Turner
Person
It will close the corporate loophole that was left by AB 1167 and combined with the two, AB 2716, will provide a feasible compliance pathway that will unfreeze the market and enable operators to consolidate in this difficult regulatory environment and reduce the risk of desertion. So, thank you.
- Kelly Seyarto
Legislator
That almost sounded like the third person for the proponents. I'm grateful. I got tricked. Anyway alright.
- Kelly Seyarto
Legislator
Is there anybody that is a lead opposition for this issue? If not, anybody who would like to come up and express their opposition for this bill? If not, we'll bring it back to the dais. Senator Laird.
- John Laird
Legislator
Thank you, Mister Chair. I floor managed 1167, and and it was hard. I think we got it out of the Senate with the exact number of votes. And yet, it made a clear statement and I think what this bill does is at least address one unintended consequence that came from that bill and tightens up a loophole.
- John Laird
Legislator
I am disappointed that it is linked with the other bill because I might have some problems with the other bill when it comes by and yet I don't want this bill to suffer because I think this bill is the right direction.
- John Laird
Legislator
And it really, the statement that was made by the legislature and the Governor when that bill was passed and signed is that people have to take responsibility and obligations. We have, at some point, I don't know where it is now, but when I sort of had oil and gas in my portfolio, there were an unbelievable number of orphan wells with regard to the bonding requirement.
- John Laird
Legislator
And if we don't surround the extraction with that, then it's the taxpayers that are the bonder, and that was really trying to get to a point that there was responsibility. So, am I wrong or did a quorum just walk in?
- John Laird
Legislator
And so, at the appropriate time, I'm happy to move this bill. Thanks to the author for bringing - I'm sorry. I was in a - I don't see anybody else here. I was in a thirteen and a half hour hearing that ended I got home after 11:00 last night, and it started at 09:30. So, I'm still trying to figure out where I am.
- John Laird
Legislator
Well, the thing that happened that you just got around is when we started at 09:30, I said, I predict we have a quorum at 04:00, and we got the quorum at 03:51. So, thank God we're quorumed up here. I'll be ready to move the bill at the appropriate time.
- Kelly Seyarto
Legislator
Alright. Thank you very much. So, you know, the the cleanup of these orphan wells and and wells that are not producing is a is a big deal. And I think our goal is and has been to how do we get these cleaned up so they can, you know, we can move on to other uses for that land and and do it in an efficient and and effective way.
- Kelly Seyarto
Legislator
And I think the speaker that came up that was was semi-neutral, pointed out one of the issues is when we pass legislation, we have these unintended consequences that wind up pushing us in a different direction than what we wanted to go in.
- Kelly Seyarto
Legislator
In other words, slowing down the process. With this particular solution, how does that not slow it down even more? Because if I'm one of these corporates that could take over the well and handle it appropriately, but we have these additional costs for the corporation and and what's their incentive to do that? And so these wells wind up staying with with the with the people that have no means to do that. They don't have a buyer, and they just wind up being abandoned wells.
- Kelly Seyarto
Legislator
And and when there's abandoned wells, we're the ones that get to to be on the hook anyway.
- Kelly Seyarto
Legislator
So, how do we how do we balance that out with trying to incentivize the market so it goes to the people that can actually remediate wells the correct way versus freezing that market out. Because I think the initial foray into this resulted in a slowdown of that those transfers. And that's my concern about it is; okay, is this not going to do the same thing on a bigger scale? Are we gonna create more disincentive to take those over? Or what's gonna happen here?
- Gregg Hart
Legislator
Well, I'll start with the 40,000 foot answer and then perhaps, Professor Mahdavi can answer more. The problem the the reality is that the obligation financially remains with the company that has the oil wells and that doesn't this, doesn't change that. There is an allegation that there are more orphan wells as a result of the situation now. The data is inconclusive about that. In fact, it may indicate the opposite.
- Gregg Hart
Legislator
There are people who are making the point that there are fewer transfers. That may be the case. I think that indicates that there's a problem. And the point of the bill is to very clearly say, if you cause a problem, it's your responsibility to clean it up. And so, that fundamentally is the purpose of the bill.
- Gregg Hart
Legislator
It was the purpose of the previous bill, and it's important to maintain that principle and to and to make clear that that's the law in California. If you make a mess, you're gonna be responsible for it. Right.
- Paasha Mahdavi
Person
Okay. I would just concur with that assessment, Mister Chair, that, you know, it it there are indeed fewer transfers. The data does show that, but it has not increased the number of orphaning of wells. And I think applying these kinds of standards does prevent orphaning to begin with and ensures that the proper companies are getting, these wells that can in fact pay for remediation and restoration, which is the other key piece to make that land more productive again.
- Kelly Seyarto
Legislator
Alright. Thank you. And now there's two speakers that would have been ahead of you. So, it's your lucky day, sir.
- Christopher Cabaldon
Legislator
Thank you. I'm supportive of, actually, both bills for some of the reasons that the neutral witness mentioned and also because I want this bill to become law. And so I'm intending to vote for it.
- Christopher Cabaldon
Legislator
I'm gonna be contingent on making sure that we advance the other bill, as well without a sunset in it so that we're keeping faith with that agreement, mostly because I think we need both paths, but also because this path is the more important one to me and I want to make sure that we're doing everything that we can to assure that it is successful in both making it to the governor and getting signed. So, thank you for sticking on this issue.
- Christopher Cabaldon
Legislator
I represent the Brentwood Oil And Gas field, which is the largest one, the farthest north substantial oil field in the state, and we've had all these problems in every way possible, including ownership issues and transfers and transfers that should have happened.
- Christopher Cabaldon
Legislator
And so, we definitely need strong action in every pathway that we can to accomplish the transition and also to protect the taxpayers from footing the bill for irresponsible practices that been part of our legacy. So, thanks, Mister Chair.
- Josh Becker
Legislator
Thank you. I'd like to thank you the author for your leadership on this issue and making effort to follow-up to address known concerns with the existing law. The oil field issue in our state, like other states, is a potential billion dollar issue for state taxpayers. We have to ensure that we take every step to protect our state taxpayers from paying for the oil industry to clean up after a cell phone industry should do so. I am an aye vote with today's amendments.
- Josh Becker
Legislator
Wait. So we it should do we have a motion? Motion from Senator Laird? Okay.
- Josh Becker
Legislator
3-1; that bill is on call. Your others are on consent. Have a good rest of your day. Okay. We're gonna go in a follow order. We do seem to have Assemblymember Ramos.
- John Laird
Legislator
And Mister Chair? While - Mister Chair, while Mister Ramos is moving to the seat, I would move the 10 items on the consent agenda.
- Josh Becker
Legislator
Excellent. We have a motion on the consent calendar. Can you please call, let's please call the roll on the consent calendar.
- Josh Becker
Legislator
Alright. 4-0 on the consent counter. That'll stay on call. Excellent. Senator Ramos, thank you for being here.
- James Ramos
Legislator
Well, thank you, so much, Mister Chair and, and Senators. I want to begin by accepting the committee amendments and and thank the committee for working with us, through this important issue. AB53 authorizes the Wildlife Conservation Board to provide tribes with access to grants and loans through the California riparian habitat conservation program and the inland wetlands conservation program. The bill also declares a legislature's intent to create a process that would facilitate the return of ancestral lands to federally recognized tribes.
- James Ramos
Legislator
California has made a clear commitment to rebuilding its relationship with tribal nations.
- James Ramos
Legislator
When the governor issued a formal apology for the state's historic harms and launched the Truth in Healing Council, he emphasized that tribal partnerships must be central to how we protect and manage our natural resources. Tribes have been stewards of these lands for centuries from time immemorial, long before California was a state, yet administrative barriers have too often prevented tribes from participating fully in conservation projects.
- James Ramos
Legislator
There are also those who question whether tribes have the capacity to share this responsibility and fully participate in such habitat restoration programs. Tribes already operate fishery programs, lead forest restoration efforts, and collaborate with the state through co management and co governance agreements to protect ecosystems across California. What tribes lack is not capacity.
- James Ramos
Legislator
It is access, access to the lands that have historically been cared for by California's first people. That is why AB53 focuses on removing those barriers and creating a path for tribes to engage in the conservation work offered through these programs. Additionally, this bill will also be seeking to facilitate land return to tribes, an issue that has long been plagued by administrative barriers.
- James Ramos
Legislator
In order for tribes to truly become partners in the state's efforts, we must ensure tribes have a direct pathway to restore and be stewards of the lands that they call their own. AB53 is about letting tribes continue to care for the lands that they have protected for generations, leveraging traditional knowledge traditional knowledge now that is being welcomed by the state of California.
- James Ramos
Legislator
Although committee amendments strike out current language on the land return, we appreciate the willingness to continue to work together on these issues to continue moving forward. Joining me today to speak on the importance of this bill is council member Scott Quinn from the Karuk tribal government and Melody Meyer, conservation attorney for the Environmental Protection Information Center.
- Scott Quinn
Person
Alright. Councilor. Hey, Keith. Good morning. My name is Scott Quinn, and I serve on the Karuk Tribal Council, and we're proud to sponsor AB53.
- Scott Quinn
Person
The Karuk tribe is one of the largest federally recognized tribes in California with ancestral homelands extending throughout the Klamath River Basin. Since time immemorial, Karuk people have stewarded the forests, rivers, fish, and wildlife of our Aboriginal territory through cultural practices and traditional ecological knowledge that sustain both ecological and cultural health. Stewardship is not a new concept for tribes. It is a responsibility we have carried for thousands of years.
- Scott Quinn
Person
AB53 recognizes the important roles that tribes continue to play in conservation and resource stewardship and provides meaningful opportunities for tribes to participate more fully in California's conservation programs.
- Scott Quinn
Person
And I understand that there's been been some questions about whether transferring conservation lands could somehow weaken the protections that already exist on those properties, and I wanna be clear that that's not what we're seeking here. We support maintaining the conservation purposes of these lands if existing conservation easements, mitigation requirements, grant conditions, or other legal restrictions apply to a property. We are prepared to honor those obligations. Our goal is not to remove protections.
- Scott Quinn
Person
It is to bring our knowledge and stewardship practices and our long term commitment to caring for these landscapes.
- Scott Quinn
Person
Research consistently reflects that we know to be true that indigenous people are the best stewards of biodiversity lands and waters. In fact, a recent systematic review by the University of British Columbia documented that indigenous managed lands equal to or outperform government designated protected areas in preserving forest cover, mitigating wildfire risks, and sustaining animal and plant populations. The Karuk tribe has demonstrated what tribal stewardship can accomplish. The Karuk tribe has long been a leader in advocating cultural fire and ecosystem restoration throughout the Klamath Basin and beyond.
- Scott Quinn
Person
Traditional indigenous burning and other stewardship practices reduce hazardous fuel accumulations, promote habitat diversity, improve forest health, and increase resilience to climate change and severe wildfire.
- Scott Quinn
Person
Those efforts benefit everyone, not just tribal communities, but all Californians. California faces enormous conservation challenges, catastrophic wildfire, biodiversity loss, and declining salmon populations. We need every capable partner at the table. Tribes have the experience, the commitment, and the deep connection to these lands to help meet those challenges.
- Scott Quinn
Person
AB53 partnership, recognizes tribes as trusted conservation partners and provides additional tools to help us fulfill the shared responsibility to protect California's natural heritage. On behalf of the Karuk tribe, I respectfully ask for your a vote on AB53.
- Melodie Meyer
Person
Good morning, Chair and Members of the Committee. My name is Melodie Meyer. I'm the conservation attorney for the Environmental Protection Information Center. We're a North Information Center. We're a North Coast environmental nonprofit engaged in the conservation advocacy since 1977, and we are proud to support AB53 and thank Assembly member Ramos for his leadership.
- Melodie Meyer
Person
As an environmental nonprofit, EPIC fiercely advocates for the conservation benefits of tribal stewardship in all its forms. We need not relitigate those benefits here as the California Natural Resources Agency has already recognized tribal stewardship as an official pathway to conserving 30% of California's lands and waters by 2030, and has set a goal of bringing 7,500,000 acres of land under tribal stewardship.
- Melodie Meyer
Person
EPIC regularly seeks partnerships, with tribes on conservation and land protection efforts, and we champion land back initiatives precisely because we understand the huge benefits that tribal stewardship has on conservation. The state of California perpetuated genocide against its indigenous peoples carried out by formal policies and laws, including forced removal. The genocidal effort ultimately failed, but the harm, in particular, severed connection to land continues to reverberate across generations.
- Melodie Meyer
Person
Tribal nations are sovereigns, but that sovereignty remains unrealized because there are so many barriers that prevent California from returning what was taken. Removing those barriers is the only meaningful way to account for that loss.
- Melodie Meyer
Person
I ask you to sit with the humility that it takes for tribal nations to compromise at all, to accept restrictions and caveats on their own sovereignty, And I ask you to acknowledge what an extraordinary insult it is to be told that you cannot be trusted to steward lands by organizations that have directly benefited from stolen land. This bill places tribes on equal footing with non profits and state and local agencies.
- Melodie Meyer
Person
For opposition to suggest that tribes would not conserve lands acquired under this bill in perpetuity is both paternalistic and a fundamental misunderstanding of traditional ecological knowledge.
- Melodie Meyer
Person
Where federal trust land questions arise, the state has existing pathways set forth in federal law to work with the tribes and Federal Government to ensure that state conservation protection laws are carried over. EPIC is proud to support this bill as an environmental nonprofit, and we respectfully ask for your aye vote. Thank you.
- Josh Becker
Legislator
Thank you. Do you have others in support? Others who'd like to register their support?
- Alex Loomer
Person
Alex Loomer on behalf of the Emeril Law Foundation in strong support. Thank you.
- Charles Wright
Person
Charles Wright on behalf of the Yahavia Thomas, Samuel Well Nation, and Santinez of Chumash Indians in support.
- Christina Scaringe
Person
Christina Scaringe for the Center for Biological Diversity in support.
- Cesar Gonzales
Person
Cesar Gonzales with the California Rural Indian Health Board, in support. Thank you.
- Buffy Campbell
Person
Buffy Campbell, executive director of the Intertribal Sinking Wilderness Council, in support.
- Josh Becker
Legislator
Okay. Anyone in opposition? Do we have anyone in opposition? Please come forward. Is that okay if you yeah.
- Chris Howard
Person
Good morning. My name is Chris Howard. I'm a Del Norte County supervisor, also having worked with fairly recognized tribes for for over thirty years as both an employee and as a wildlife and fisheries biologist. Donar County values the cultural, historical, and governmental relations that California Native American tribes maintain with their ancestral lands. The county has long standing government to government relations with local tribal governments, including the Tallahawadini Nation, Elk Valley Rancheria, and the Yurok Tribe.
- Chris Howard
Person
I support the portions of AB53 that expand tribal eligibility for grants and loans under the California riparian habitat conservation program. However, two provisions raise concern about long term land management, public accountability, and the ability of local governments and the public to understand and weigh in on decisions affecting lands in their jurisdictions. Many of California's parks, wildlife areas, and other conservation lands were purchased through bond funds approved by voters who wanted these lands protected.
- Chris Howard
Person
They are held in trust for the public, including the taxpayers who funded them and the communities who rely on them to access nature. I greatly appreciate the committee's work to resolve the major concerns presented in Section four of the bill.
- Chris Howard
Person
Thank you for these changes. However, a few practical questions remain. What transaction costs and ongoing maintenance costs would transfer involve, and who would bear them?
- Chris Howard
Person
Thank you for these changes. However, a few practical questions remain. What transaction costs and ongoing maintenance costs would transfer involve, and who would bear them?
- Unidentified Speaker 029
What happens to the payment in lieu of taxes, including those currently owed to counties? The bill allows to sell, exchange, and transfer property and fee without requiring a record of easement to preserve the land as wildlife habitat in perpetuity.
- Unidentified Speaker 029
Because of tribal sovereignty and federal law, a federally recognized tribe is not like other public or private entities. The bill does not address how the state would retain jurisdiction over the land once it is taken into federal trust, or how contracting with sovereign tribal governments would differ from contracting with other entities. These important questions
- Unidentified Speaker 029
I respectfully ask the committee to consider amendments before moving the bill forward. A limited waiver of sovereign immunity as a condition of receiving the public lands, continued state environmental enforcement jurisdiction, and resolution to contract disputes in state courts.
- Jake Schultz
Person
Thank you. Good morning, Chair and committee members. My name is Jake Schultz, and I'm here on behalf of the Endangered Habitats League. To begin, I'd like to note that we're an in betweener. While we are not formally opposed to AB 53, EHL would like to express concerns regarding the intent to allow California to transfer some state land own lands to federally recognized tribes.
- Jake Schultz
Person
The Endangered Habitats League is generally very supportive of land return programs and of efforts to include our tribal partners in grants and other conservation activities. In fact, when we initially saw the amendments to this bill, we found no immediate issues. It was during a very recent and more in-depth review of the technical process, pine land transfer, that we identified some potential points of hesitation.
- Jake Schultz
Person
We appreciate the authors and the committee's work in compromising to remove the land transfer language from Section four for now, which may have led to unintended consequences for existing conservation protections, contractual obligations, and state oversight. California spent decades and billions of dollars in bond funds to build a network of protected conservation lands, and we believe the state has a continuing obligation as a public trustee of those resources.
- Jake Schultz
Person
The remaining intent language outlined in the committee analysis signals that a formal transfer process is still in the works. Getting that process right warrants a full and transparent legislative review. We respectfully request that to the extent section four is revisited, the development of the land transfer framework to be taken up next year to allow for appropriate safeguards that honor both the state's conservation obligations and the legitimate interests of our partners. Thank you.
- Peter Ansell
Person
Good morning, Chair members. Peter Ansell, California Farm Bureau. Like the last witness, we are not formally opposed to the bill. We've submitted a letter of concern that are primarily aligned with the comments, of the previous two witnesses. We understand the importance of the bill.
- Peter Ansell
Person
We appreciate the committee's analysis recognizing our concerns. We wanna take a look and see what's being accepted and what's being proposed to turn into a two year bill, and we'll continue to engage. We've reached out to the author's office, haven't connected with staff, but we'll make that effort again and hopefully continue that conversation as the bill moves.
- Josh Becker
Legislator
Okay. Thank you. Great. Taking it back to the committee, Senator Laird.
- John Laird
Legislator
A few semi connected comments. And the first one is is that I wanna salute the author. He is without peer in the legislature and in the public sector for trying to reverse the injustices that have existed for, time immemorial, and, bill after bill does that.
- John Laird
Legislator
And we, have worked I know that that it's very interesting because when I negotiated with the North Coast tribes on marine protected areas, I was worried because if a tribe could demonstrate a historic take for subsistence or ceremonial purposes, they could actually go in the conservation zones of marine protected areas and have a take.
- John Laird
Legislator
And I was worried when that was negotiated because a key to it was you had to demonstrate the historic pattern of of ceremonial purposes or subsistence and was very surprised by the tribes who basically said, we've been waiting for you to ask.
- John Laird
Legislator
We have this information, and we have had it forever, and we've been waiting to show it to demonstrate what it is. And and so for the 28 tribes that were recognized on the North Coast, they acquired those rights, when it came to marine protected areas, and there have been negotiations about co management and and taking it forward to the next step.
- John Laird
Legislator
And when I visited the Dixie Fire, which was roughly a million acres in Northeast California, we met with tribal people that showed that some of the pre work they had done had significantly impacted or or worked against the heat of the fire when it was at its its top. So it's demonstrated that the historic practices that you mentioned work and need to be incorporated. We had a bill that was similar, and I've lost track.
- John Laird
Legislator
I would guess it was about three years ago, and it was Assemblymember Gallagher. And this committee, actually put a requirement on his bill that if there was a conservation easement, the conservation easement transferred in a binding way, along with the land transfer. And I think that's the intent, of the amendments here, and it's not questioning the stewardship or the ability of stewardship.
- John Laird
Legislator
But if we have spent hundreds of millions of dollars of taxpayer money to protect land, then the protection they bought should transfer with the land. And I think the net effect of the amendments is to reinforce that.
- John Laird
Legislator
And while I get from one of the witnesses that maybe they don't think it's as strong as it should be, I think that's our question between now and when it gets to the governor, is just making sure that we know that the protections are there that would transfer an appropriate way that they would stick. And so I think the amendment that sort of moves in that direction gets us to a very good place.
- John Laird
Legislator
And and I really appreciate it because it is just in the last few decades, there's developing capacity for the tribes. There's trying to increase assets, and everything isn't always unity when the Klamath Dam removal was going on. A majority of tribes were in favor of that process, but there was one tribe that actually was opposed.
- John Laird
Legislator
And so I recognized that everything isn't uniform in this. So I think this, bill addresses a long standing injustice. I think the amendments make it work. And at the appropriate time, I would be willing to move the bill. Thank you.
- Josh Becker
Legislator
Well, thank you. I wanna thank you too for bringing this bill forward and for all of your work. Earlier in this session, we moved forward a water rights bill that you had championed for many years and take very seriously all these issues that you're bringing forward to right the right the wrongs from the past. And, yeah, so I think in particular, this one is showing that federally recognized tribes are eligible for wildlife conservation board grants and Department of Fish and Wildlife contracts is very important.
- Josh Becker
Legislator
We appreciate you taking the amendments and will allow us to continue to work on a faster public process.
- Josh Becker
Legislator
I think that's why everyone's interested in a faster public process for land return. It's important that we get that right, albeit, an aye vote on the bill today. Would you like to close?
- James Ramos
Legislator
Well, thank you, so much, chairman and and senators for your comments. And it's true. We've reached a point here in the state of California with the current administration, the governor, with a formal apology that set in in place in motion, opportunities, for California's first people to, start to acquire land but have a stronger voice. It wasn't so long ago that those that were practicing traditional fire burns to maintain, the plants and and livelihood of that were were arrested for arson and and charged.
- James Ramos
Legislator
Now that very practice that was frowned upon where where criminal charges were put towards members that still carry that on on their on their background is now being accepted by natural resources, as a adequate way to preserve the state of California.
- James Ramos
Legislator
I believe that this bill puts in motion that respect for California's first people and also that knowledge that was overlooked that now should be in the policies in the state of California. I ask for your aye vote.
- Josh Becker
Legislator
Excellent. We have a motion from Senator Laird. Do you wanna read the motion and call the roll?
- Committee Secretary
File item one, AB 53 Ramos. The motion is do passed as amended to appropriations. Senators Becker? Aye. Becker, aye.
- Josh Becker
Legislator
Alright. Assemblymember Rogers, the member of Hadwick go first. Wow. Okay. And they and and they say that they say bipartisanship is dead, but not here in the in the California legislature.
- Heather Hadwick
Legislator
Thank you, Mister Chair and members. I would first like to thank the Chair and the committee staff for working collaboratively on this critical issue. I'm very grateful for your consideration of this bill to address the dangerous situation in Lake Tahoe in my district. Lake Tahoe is a beautiful international destination sitting on the West shore of the lake. Emerald Bay is famous for its brilliant blue green water panoramic vistas and rugged mountain backdrop.
- Heather Hadwick
Legislator
It is widely considered one of the most photographed locations in the world. Every year, millions of travelers from every nation in California visit the Lake Tahoe Basin. Growing visitation and limited roadway capacity have increased safety risks and environmental impacts along with state highways in the Lake Tahoe Basin. State Route 89 is a two lane, 55 miles an hour highway that runs north to south on the West side of lake and provides access to Emerald Bay.
- Heather Hadwick
Legislator
Along this highway, many people park illegally on the highway shoulder under rockfall areas and teetering over ridges.
- Heather Hadwick
Legislator
This results in both shoulders being clogged, pedestrians walking on the highway, crossing the highway, and traffic congestion. A 2025 safety review for the Emerald Bay Corridor documented 759 wrong way drivers and recorded over a forty day period and more than 20,500 pedestrians crossing the highway with no crosswalks or pedestrian facilities. AB 2679 advances a safety framework that addresses these dangerous conditions.
- Heather Hadwick
Legislator
This bill allows the California Department of Transportation to work with Tahoe Regional Plating Agency, the Tahoe Transportation District, and El Dorado Placer Counties to improve parking management and public access improvements, such as developing public parking, transit, pedestrian pathways, trash cans, and restrooms. I accept the Senate Transportation Committee's amendments, which is reflected in the committee's analysis, and the committee amendment clarifies a variety of provisions as intended to address the concerns of the sole opposition on the to the bill.
- Heather Hadwick
Legislator
And I respectfully ask for your aye vote. Today, I am joined by El Dorado County supervisor, Brooke Lane, and Devin Middlebrook representing Tahoe Regional Planning Agency.
- Unidentified Speaker 033
morning, Chair and members. I represent South Lake Tahoe, the Highway 50 And 89 corridors through Emerald Bay and as far north as Tahoma. As Assembly member Hadwick just stated, this is a very dangerous corridor. In 2024, 15 agencies and partners gathered around one table to tackle the Emerald Bay corridor issues. Caltrans was present, including law enforcement, transit providers, government officials, and several planning agencies.
- Unidentified Speaker 033
And the question was simple. Is there a problem at Emerald Bay? And the answer by 45 professionals in the room was yes. Year one was a success. We took a thousand cars off the road, and roughly 5,000 cars off the road, and roughly 5,000 cars off the road.
- Unidentified Speaker 033
And practice. Gives Caltrans the authority to partner with local agencies to manage parking, implement traffic calming, and develop the transit connections and pedestrian pathways our recreation areas urgently need. Plus, it pays for itself by authorizing public Plus, it pays for itself by authorizing public parking fees be reinvested back into the project. I urge the committee's support of AB 2679. Thank you for your time.
- Unidentified Speaker 034
Thank you. Thank you. Good morning, Chair, committee members, and staff. My name is Devin Middlebrook with the Tahoe Regional Planning Agency or TRPA. We were formed through a bi state compact between, California and Nevada in 1969, and TRPA is charged with protecting Lake Tahoe.
- Unidentified Speaker 034
We are happy to serve as the sponsor of this bill with Assemblymember Hadwick. AB 2679 was written to help us address the transportation access and environmental challenges at Tahoe. The intent is to create a framework to designate safety zones along our highway corridors and implement actions to reduce dangerous parking and develop better public parking, transit stops, and bicycle and pedestrian infrastructure in the right of way to access Tahoe's public lands. AB 2679 also supports regional consistency.
- Unidentified Speaker 034
This law created a similar framework on the Nevada side of the lake. We are asking California for legislation to provide consistency, around the region. While aspects of this bill, what this bill proposes are allowed under existing law, AB 2679 addresses the unique aspects of the Tahoe Basin and focus specifically on recreation access to public land and environmental impacts to our lake clarity. We are actively engaged with CalSTA, Caltrans, California State Park staff on the support and legislation.
- Unidentified Speaker 034
Thank you for your support in protecting Lake Tahoe for all Californians to enjoy today and for generations to come.
- Steve Wallach
Person
Good good morning. Steve Wallach on behalf of the California Tahoe Alliance in support.
- Steve Frisch
Person
Good morning. Steve Frisch on behalf of Sierra Business Council in support.
- Josh Becker
Legislator
Great. Anyone in opposition? Seeing none. Anyone on the Senator Laird?
- John Laird
Legislator
Yes. Inevitably. I wanna salute you for bringing the bill, and I know after we successfully had the bi state negotiations to update the general plan, we had a working group on transportation from both sides. And it was difficult because they're just different requirements on Nevada and California's side, and it was trying to figure out how to harmonize them and get people out of the cars. And and we had some success, and it was with shuttles and other things that were going on.
- John Laird
Legislator
And I'm as a former resident of Emerald Bay, I'm sorry Senator Feinstein isn't still alive because she would be making sure this happened without a bill. And so I just wanna salute you for being willing to weigh it in. And there was one issue that that was constantly being grappled with, which is some of the transportation funding is based on the population.
- John Laird
Legislator
And yet there are few places, Tahoe, Mammoth, Monterey Peninsula, where there's so many more residents at the time of tourism and the formulas the federal formulas now appropriately recognize that, but the state formulas don't totally. So, I think this is really a good direction.
- John Laird
Legislator
And if Senator Grove doesn't wanna move this bill at the appropriate time, I will.
- Shannon Grove
Legislator
I'd like to thank the thank you, Mister Chair, and thank the former Chair of Natural Resources for interrupting my, first call when you went that way first. But, anyways, I'd like to thank you for bringing the bill forward. It's a good district bill. And I was just in Tahoe a couple of weeks ago and on that Emerald Corridor and the Emerald Bay Corridor. And the problem is is that you do see people walking down the middle of the streets blocking traffic, cars in very dangerous situations.
- Shannon Grove
Legislator
And so for you to bring this bill forward and the collaboration and the work you put together to bring all parties to the table and the discussions that were made So it's a very thoughtful bill, and I would move the bill if my good colleague, the former Chair of Natural Resources, would allow me to.
- Josh Becker
Legislator
Okay. Well, yeah, I saw the note there was 759 wrong way drivers, including the and the 25,000 plus pedestrians crossing with no crosswalks. Very dangerous as you mentioned. We have a motion from the great center for Bakersfield. Would you like to close?
- Heather Hadwick
Legislator
Yeah. Thank you for considering this bill. I'm gonna come back to you on that formula and fix that in my tenure, hopefully, and just wanna thank you guys for the consideration and ask for an aye vote when appropriate.
- Josh Becker
Legislator
Okay. I just do wanna confirm because we are taking amendments from the transportation committee. Amendments that you are accepting.
- Josh Becker
Legislator
Okay. So we have a a motion from Senator Grove to pass as amended to appropriations. Please call the roll.
- Josh Becker
Legislator
Three d zero. On call. Alright. Now we see Assembly member Rogers proves that chivalry and bipartisanship is is not dead.
- Chris Rogers
Legislator
Yes. So appreciate it, Chair. AB1666, we will be accepting the committee's amendment. As our state further adapts to a changing climate, as well as, the wildfires that we have seen, we need to do something different with our forests, and particularly with the byproduct of managing those forests. The Air Resources Board estimates that there's 14,500,000 dry tons that'll be produced of biomass if we are to achieve those goals.
- Chris Rogers
Legislator
That's on top of the 10,000,000 that currently exists in other types of industries, such as Vineyards and crops and orchards. AB 1666 would create a biomass innovation hub to focus on non combustible uses for that byproduct, to both better steward our land as well as address some of these threats that we see. With me to talk about the bill are Sam Uden, who's the cofounder of Net Zero California, and Steve Frisch, who's the president of the Sierra Business Council.
- Sam Uden
Person
Thank you, Chair and members. My name is Sam Uden. I'm with Net Zero California, and we're proud to sponsor AB 1666, which would establish one or more biomass innovation parks and support a sustainable wood waste bioeconomy in the state. California is facing a wood waste crisis where millions of tons of forest and agricultural biomass are being piled and burned or left to decay every year causing significant carbon and air pollution.
- Sam Uden
Person
In response, the state has established a goal to expand a sustainable bioeconomy that takes this wood waste and converts it by non combustion technologies into low carbon products such as mass timber, clean hydrogen, biomethane, and carbon removal.
- Sam Uden
Person
This goal is clearly identified in multiple state plans including the AirBoard's 2022 scoping plan, the recent SB 254 report on how to manage wildfire risk and cost, each of the Sierra Nevada, North Coast, Central Valley, and Kern County Jobs First plans, and the recently published California Wildfire Task Force's draft action plan.
- Sam Uden
Person
ABC six sixty six simply aims to implement the state's existing goals on wood biomass with incentives and targeted reforms, including establishing biomass innovation parks with available Prop four funding, as well as addressing key barriers to project development, including related to feedstock contracting, demand side incentives, and others. The state has really struggled to make progress on wood biomass issues to the point where local governments have considered strategies such as exporting forest slash from the Port Of Stockton to burning coal fired power plants in The UK.
- Sam Uden
Person
This points to the scale of the problem and the public safety threat that would push communities to even consider this as an option, underscoring the fact that we can't ignore this issue any longer. I wanna thank the Assembly member and this committee for their amendments, and we respectfully request your aye vote.
- Steve Frisch
Person
Thank you. Go ahead. Thank you, Chair and members of the committee. My name is Steve Frisch. I'm the president of the Sierra Business Council, and our organization also works as the small business development center for Northeastern California and the economic development district for the Central Sierra Nevada region.
- Steve Frisch
Person
In addition to the environmental reasons to be supporting AB 1666, we wanted to highlight some of the economic rationale behind the bill. By investing in wood waste utilization, innovation parks, we create economic uses for wood waste and reduce the cost of forest and vegetation management treatments by moving waste management from a cost to a profit side of of the ledger on individual projects. This stretches our very limited California wildfire resilience funding further and gives us the ability to treat more acreage.
- Steve Frisch
Person
In addition, we can leverage federal and private matching funds to develop biomass innovation parks. As a matter of fact, the USDA just announced a $115,200,000 in wood utilization loans nationwide.
- Steve Frisch
Person
$62,000,000 of that came to California. We worked on two of those projects developing the loan applications. One, a $25,000,000 loan for a non combustion gasification facility in Calaveras County, and another an $18,500,000 loan for a small diameter timber mill and cross laminated timber manufacturing facility in Eastern Nevada County. These projects unlocked more than $50,000,000 in private capital, in order to advance the projects.
- Steve Frisch
Person
And this represents a great opportunity for California funding to match federal funding to achieve our forest management objectives and to unlock private capital to help achieve our state goals.
- Steve Frisch
Person
Finally, we think this is a great example of how economic development and environmental improvement can work hand in hand in the rural regions of our state to create jobs, to create new industries, and to achieve our forest management goals. We respectfully ask for your aye vote.
- Chris Rogers
Legislator
Chair members, John Wenger here on behalf of the RNG Coalition in support.
- Paul Yoder
Person
Mister Chair, members, Paul Yoder in support on behalf of the Placer County Board of Supervisors. Thank you.
- Michael Jarrett
Person
Michael Jarrett with The Nature Conservancy in support. Thank you.
- Jake Schultz
Person
Jake Schultz on behalf of East Bay Regional Park District in support. Thank you.
- Josh Becker
Legislator
Opposition. Do we have opposition? Opposition no. Seeing none. Take it back to the committee.
- John Laird
Legislator
Senator Laird. I wanted to address one thing because there was opposition listed in the analysis, and it framed it in a way that I don't think is the the frame of the issue because it basically said it only promotes processes that don't offer climate benefits and and then represented that it was a an array of harms.
- John Laird
Legislator
And I think that's not the right way to look at it because the issue here is is I know I never understood, during the drought in, early part of the last decade, there are always these precise numbers of the number of trees that had died. At one point, it was something like a 129,000,000 trees. I kept thinking, who knows that?
- John Laird
Legislator
Who who who can figure that out? But when there are that many dead trees, they are going to deteriorate in place. So there will be bad climate benefits from that deterioration. So the question is is if that's happening either way, can it happen in a way that produces electricity and tries to have more efficient processes that that can capture the electricity with less greenhouse gases going in the air. And so that's why I think this bill is a good direction.
- John Laird
Legislator
And this is never a standalone issue. I mentioned earlier visiting the Dixie fire, and I can't remember who it was. The Sierra Institute or somebody had done biomass on the edge of Greenville or not far out of there, and they did it where they felt like the the stuff that was given off was the equivalent of a few wood burning stoves as opposed to the traditional large industrial way of burning and releasing things in the atmosphere.
- John Laird
Legislator
And I know that that's the accompanying challenge is always making sure we are looking for those more efficient processes to deal with biomass, but that's the choice. So I look forward, to supporting the bill.
- Josh Becker
Legislator
Well, thank you. Yeah. When I was chairing budget, sub two, and, wildfires are always an issue, there and thought about all the solutions we were working on and and developed my own eight point plan, but one of them was biomass. You have to figure out how to deal with it and that you do so in a innovative way by supporting, innovations in this area. And anecdotally, we hear about, these innovations and coming up with a comprehensive way to support things is really important.
- Chris Rogers
Legislator
Yeah. I I think just echoing the comments. I think anytime we talk about creating a circular economy that involves natural resources, and this might be a primer for our next bill as a discussion point, There's always going to be concern about whether the tail wags the dog or the dog wags the tail.
- Chris Rogers
Legislator
And how do you put in sufficient safeguards to make sure that you're both creating that economic incentive to deal with what is a real problem without then making sure that that's driving the natural resources side of the equation and and how we choose when and how to extract these resources. I think that this bill has sufficient safeguards and really strikes that balance, particularly to meet some of the other state's goals, like around wildfire resilience and vegetation management.
- Josh Becker
Legislator
Okay. Motion from Senator Grove is do passed as amended to appropriations. Please call the roll.
- Committee Secretary
Becker, aye. Sarato, Allen, Cobaltin, Grove, Grove, aye, Laird. Laird, aye, Stern.
- Chris Rogers
Legislator
So first and foremost, I wanna just start off by expressing gratitude to Edith for all of the work on the bill. An incredibly thorough analysis, I was joking with my wife last night that the bill had to pass to conserve the trees that we killed in creating the analysis, but it was really well done. And I just really wanna thank you for taking so much time with our team on the bill. Recycle here. So Of course.
- Chris Rogers
Legislator
You know, there, there's a a quote that I frequently heard when I was first running for office that is oftentimes attributed to our former congressman for the area, Doug Bosco, and that's that everybody on the North Coast loves redwood trees. Some like them vertical, some like them horizontal. And, certainly, my region is not new to discussions about what the proper forest management practices should be of our forests. This bill is very much narrower than some of those discussions that were had.
- Chris Rogers
Legislator
This bill focuses just on the demonstration state forest system.
- Chris Rogers
Legislator
There are 14 demonstration state forests in the state. The largest by far, about half of the system, is the Jackson Demonstration State Forest, which is in Mendocino County. And despite such robust discussions and at times violence in our community related to this discussion, the forest laws have not really not caught up over the last eighty years since they were introduced to where California wants to go.
- Chris Rogers
Legislator
And specifically, when we talk about what we know now related to climate change and biodiversity and wildfire and vegetation management, it's time for us to update those practices. And so that's what this bill does.
- Chris Rogers
Legislator
It will update our forest practices to better reflect our climate resiliency goals, governor Newsom's 30 by 30 goals. And it also codifies some of the good work that CAL FIRE has been doing in tribal co management and moving in that direction that you had the discussion on your first bill or second bill with, with Assemblymember Ramos about how do we make sure that we are including the folks who have stewarded the land, for a millennia in the discussions about forest management.
- Chris Rogers
Legislator
To be very clear, this bill does not prevent timber harvest. It just makes sure that the maximum sustained production piece, which is the driving factor in current law, is, not the focus That we utilize our public lands for the other public benefits, recreation, research, carbon sequestration, biodiversity, and there's extraction and taking that happens in accordance with those principles, and will still continue to happen. But will help to rebuild that trust with the public and with the agencies as they do that work.
- Chris Rogers
Legislator
It's notable that in the analysis, as you're working through the, the support and opposition, I kinda laughed when I saw it just lists over 1,700 people as individuals in support, which I think tells you just how important this is to folks who care about these forests and wanna see these forests not left alone entirely, but actually actively managed in a way that makes our community safer, that makes our our climate better. It could help and assist in things like, stream restoration, fish management as well.
- Chris Rogers
Legislator
With that, I will turn it over to our witnesses. We have Melody Meyer, who you already met, who's the conservation attorney for the Environmental Protection Information Center. And, Buffy Campbell, who's the executive director for the Intertribal Cinqueote Wilderness Council.
- Buffy Campbell
Person
The founder of the Intertribal Cinque Wilderness Council, Priscilla Hunter, once said, our view of sustainable forest is a forest that sustains our culture, our values, and our way of life, not one that is managed in order to cut trees for profit. This bill is a step towards reparations for the removal of native people from our homelands. We know the trees and all the living souls in and around these trees.
- Buffy Campbell
Person
And by knowing who we care for and what they need, it's crucial and critical for restoring biodiversity. Successful stewardship means respecting what the land has given to us, and in gratitude, we take only what is gifted.
- Buffy Campbell
Person
We are ready to reconnect traditional ecological knowledge to the land using cultural fire, as well as bringing modern forest management to these areas, including regulated harvesting, habitat restoration, and our view of sustainable resource management. With tribal stewardship, the results are wildfire resilience and healthy ecosystems. Both preservation and conservation are essential for protection of the environment. Focusing on preservation at cultural sensitive sites and conservation and other areas will lead the way for healthy forests, which benefits everyone.
- Buffy Campbell
Person
We also acknowledge that CAL FIRE has taken steps to include tribes at JDSF.
- Buffy Campbell
Person
However, there is no statewide framework that guides how sovereign relationships work at demonstration forests. This bill provides clarity and codifies the state's policies of tribal stewardship, which includes a goal set by the California NRA to tribally steward 7,500,000 acres of California lands and waters. Modernizing state forest is overdue and is going to take time, but AB 2494 is a great start.
- Buffy Campbell
Person
Tribal people are already at the forefront of protecting our ancestral lands and waterways, and we are the perfect partners to guide this transition. Thank you all for your support.
- Melodie Meyer
Person
Good morning, Chair and Members of the Committee. Melodie Meyer, conservation attorney for the Environmental Protection Information Center, and we are proud to sponsor this bill. EPIC is a North Coast environmental nonprofit that has been engaged in protection advocacy of forests since 1977. The movement to change the commercial logging mandate for demonstration state forest has been underway for nearly twenty years. With AB 2494, we are closer than ever to a path forward.
- Melodie Meyer
Person
This bill will prioritize public trust values legislature has already adopted, including goals to conserve biodiversity, increase wildfire resilience, store carbon, increase tribal stewardship, and promote outdoor access. The bill will also rejuvenate rural economies by encouraging a shift towards restoration forestry and ecotourism. By allowing CAL FIRE to draw from the timber regulation and forest restoration fund as needed, rather than rely solely on timber sales, we are stabilizing CAL FIRE's capacity to steward these forests.
- Melodie Meyer
Person
Some opponents have mischaracterized demonstration forests as a shining example of climate forward forestry that needs no improvement, but the history of public engagement with the largest demonstrations forest tells a different story. Lingering concerns include weakened forest management plans, inadequate tribal engagement, and delayed species recovery.
- Melodie Meyer
Person
Meanwhile, a 2023 USGS study documented widespread tree loss across California driven by wildfire and climate stress. Growing older, bigger trees and restoring ecosystems at a landscape scale is the most meaningful path to fighting climate change in our forest. However, this approach isn't achievable under the current commercial logging mandate. While we are aware that some want sustained yield logging to be included in the definition of management, including sustained yield as a management priority would narrow the scope of what can be demonstrated on these forests.
- Melodie Meyer
Person
We've also taken many amendments to make sure it is clear that logging is not prohibited on these forests.
- Melodie Meyer
Person
In fact, active management is required for under the bill for wildfire resilience and biodiversity conservation. EPIC is proud to support this legislation, and we are deeply grateful for the hard work that this committee has put into the bill. We respectfully ask for your aye vote. Thank you.
- Karen Lang
Person
Good morning, Mister Chair, Members. Karen Lang on behalf of the Mendocino and Humboldt County boards of supervisors in support.
- Christina Scurridge
Person
Good morning. Christina Scurridge with the Center for Biological Diversity in strong support.
- Doug Houston
Person
Morning, Chair and Members. Doug Houston representing California Outdoor Recreation Partnership who are in support.
- Josefina Barrantes
Person
Josefina Barrantes, giving support on behalf of, with permission, the following organizations: Clean Water Action, Clean Earth for Kids, Environmental Action Committee of West Marin, California Institute for Biodiversity, Council for Biodiversity, Council of Mexican Federations in North America, Forest Working Group of the Grassroots Institute of Mendocino County, and the Friends of Harbors, Beaches, and Parks in support. And on behalf of over 1,700 individual supporters for AB2494.
- Alex Loomer
Person
Thank you. Alex Loomer on behalf of the following entities, Resource Renewal Institute, Trout Unlimited, California Trout, the California Native Plant Society, California Environmental Voters, and the Mendocino Fire Protection District, all in support. Thank you.
- Unidentified Speaker
This is an essential step that's so well articulated by the three people here before you. I, I fully endorse this as an incredibly first step to make a change in mandate, for Forrest River. Thank you.
- Ruth McDonald
Person
Good morning. Ruth McDonald with Climate Action California in support. Thank you.
- Zoe Jonek
Person
Zoe Jonek, on behalf of 350 Bay Area Action in support with thanks for the amendments to explicitly include nonfederally recognized tribes.
- Jim Lindberg
Person
Good morning. Jim Lindberg, Friends Committee on Legislation of California in support. Thank you.
- Tara Thornton
Person
Hi. Tara Thornton on behalf of Freedom Angels and Protect Tahoe in support.
- Sarah Bisbing
Person
Chair Becker, Committee and Staff, thank you for this opportunity. I'm Sarah Bisbing. I'm a forest science researcher studying forest resiliency at three of our demonstrate forests. I testify with my opinions and not those of my institution. I'm concerned about the changes that AB2494 makes to the management framework of the demo forests.
- Sarah Bisbing
Person
I'm also concerned that Jackson targeted legislation will disrupt critical wildfire and climate change mitigation across the state of California. The bill was written for management at Jackson but impacts all 14 forests. The demo forests are not intended to be parks nor protected areas, but instead for conducting long term applied research on adaptive and sustainable management and for testing new techniques to meet diverse forest stewardship objectives. Of the 33,000,000 acres of California forest land, the demo forests are at 85,000 acres.
- Sarah Bisbing
Person
I appreciate the work to modify the bill, but remain concerned about the impact it will have on research. Experimentation on climate mitigation, designed by my lab and others at Berkeley and elsewhere, are being targeted by the bill's sponsors, even though it tests the proposed acceptable forest management detailed in the bill. Experimenting with techniques to maintain forests requires us to cut some trees. Moreover, prioritizing durable on-site carbon storage can conflict with managing for climate resilience. I respectfully offer that public outreach has not been broad based.
- Sarah Bisbing
Person
Due to a lack of open conversation during the development of this bill, it does not explore the rationale behind research nor the breadth of opinions to meet proposed targets. The language is ambiguous and will impact our ability to inform stewardship. The bill also piles in the loss of federal forest research and funding and further limits our ability to learn in California and beyond. It appears rooted in historical debates rather than reflecting how climate change is impacting forests across California.
- Sarah Bisbing
Person
I respectfully ask that you not further impede our ability to do good work on the ground in wildfire and climate change mitigation in the forests of California.
- Matt Dias
Person
Good morning, Chair Becker, Members of the Committee. My name is Matt Dias. I'm the president of Cal Forests. And I wanna first start I agree wholeheartedly that the bill analysis, conducted by staff here was well executed, does a great job of not only outlining the bill, but also some of the concerns. I think CalForce and other members of the coalition that are standing in opposition less amended would like to see to make the bill better.
- Matt Dias
Person
We agree with several key provisions that are in the bill. Tribal co management on JDSF as well as the other state force across across the demonstration state force system seems like a very rational outcome. Elevation of some of the benefits, public benefits as it relates to recreation, research, and other elements also should be elevated on public lands. But that should not be conducted at the cost of sustainable forestry.
- Matt Dias
Person
I would like to just state, like, right off the get go, the bills, findings, and declarations clearly state that is the intent of the legislature to recognize that the sustained management of the demonstration state force is a key piece as it relates to the needs of the public for wood products.
- Matt Dias
Person
And the bill analysis in and of itself states that the that the demonstration state force condition, which is exemplary in nature, has been achieved through sustained management over the course of now seven decades in some cases. So with that said, I think that there needs to be some really modest revisions at this point that would allow folks that are in this opposition state or oppose unless amended to be integrated to the bill that would pull us off very simply.
- Matt Dias
Person
I have I can address those issues if you like. I will cease there, and I appreciate the consideration on only the committee. And, again, the really well, conducted analysis by staff.
- Paul Yoder
Person
Mister Chair, Members, Paul Yoder on behalf of the counties of Shasta, Placer, Madera, and Tulare all in opposition. I wanna thank the author for meeting personally with our clients. Appreciate that very much. Sequoias in Eastern Tulare County.
- Peter Ansel
Person
Morning, Chair, Members. Peter Ansel, California Farm Bureau. Align our position with CALIFORIS and with Miss Bizbing who did an excellent job explaining the importance of a balanced approach to on-site and removed carbon storage.
- Staci Heaton
Person
Good morning. Staci Heaton with the Rural County Representatives of California representing 40 rural counties statewide. We remain opposed unless amended and aligned with the two lead opposition witnesses. Thank you.
- Brian White
Person
Good morning, Mister Chair, Members. Brian White on behalf of the California Licensed Forces Association, respectfully in opposition.
- John Anderson
Person
John Anderson with the Humboldt and Mendocino Redwood companies in opposition.
- Josh Becker
Legislator
Alright. We'll take it back to the Committee. Any comments? Senator Laird?
- John Laird
Legislator
I well, I have some comments, but ask the author to maybe address CalForce said that some additional amendments, like what the nature of the discussions are and whether you think you can address the issues they raised.
- Chris Rogers
Legislator
No. I, I really appreciate that, Senator. And I think, as you know, we've been very open that we are happy to consider amendments from folks, particularly on the technical aspects of the bill to make sure that we get it right. If we continue to be open to that, we'll be open to that all the way through this process.
- Chris Rogers
Legislator
The hang up for many of the folks that have wanted to propose amendments is around that question about sustained yield and whether or not that would undermine the overall purpose of the bill, which is to allow for the environmental considerations to drive the priorities within the forests.
- Chris Rogers
Legislator
And the question about sustainable doesn't mean necessarily sustainable forest, but sustainable economic, interest coming from the, the forest.
- Chris Rogers
Legislator
We're we're happy to continue to talk to folks, but that's been the big hang up is going back to my previous comment about the tail wagging the dog or the dog wagging the tail, we wanna make sure that you are able to do timber harvest plans that are in accordance with these principles that we've outlined around biodiversity, carbon sequestration, conservation, research, recreation, that it it is not taking trees for the sustainable, to show the sustainability of the economics of it, but rather recognizing that this is public land.
- Chris Rogers
Legislator
And I will say, one of the, the comments triggered for me, let's talk about the scope of this as well, because the demonstration forests are less than 1% of the total yield that comes from the state in terms of timber.
- Chris Rogers
Legislator
And we recognize the demonstration aspects of these forests and the importance that that plays, which is why, and I'll I'll quote from the analysis, authorized research on the demonstration state forest that inform forest management strategies, science based decision making, biodiversity, durable on-site carbon storage or sequestration, habitat, water or soil quality, watershed health, tribal stewardship, or other goals that further a healthy and resilient ecosystem, and that timber harvests, in furtherance of research, demonstration of management strategies available to non industrial landowners, and applying proven techniques or testing novel or emerging management approaches is all still allowed in this bill.
- Chris Rogers
Legislator
So there was a a comment about how this would prevent people from being able to do additional research or to test out new new attempts of forestry. That is not the case.
- John Laird
Legislator
Well, the if you read some of the opposition letters, it seems that there's a view that this will have substantial impacts outside the demonstration for us. Could you speak to that?
- Chris Rogers
Legislator
Yeah. I think it gets to that that last part is that there are individual landowners that do benefit substantially from the research techniques or the proven techniques that occur in the Demonstration State Forest. I think that that's what we are trying to recognize here in this piece of the bill. Then you look at the cascading impact of that, which is for many of these communities, they do have an economy that has been based on the extraction of timber.
- Chris Rogers
Legislator
And you do have small sawmills that are concerned about the impact that they could have if they have some contracts with these timber harvest plants that are coming for the demonstrate force.
- Chris Rogers
Legislator
We also tried to recognize that by asking Cal Fire to create a local preference program for small or local sawmills in recognition of that concern that folks had as well.
- John Laird
Legislator
I'm still trying to understand it. I mean, I have this interesting thing where three county supervisors in my home county wrote letters with a position, two in opposition, one in support. And there's a long time sustainable, timber company, Big Creek, and they seem to think they will be affected by this bill. And that's what I'm still trying to understand. How would they be affected?
- Chris Rogers
Legislator
So from my perspective, right now, you have a demonstration state forest system that is maintained off of the sale of timber. So the amount of work that is done in it is leads to the amount of work that can be done in it because that's what sustains it. What we were trying to do is we all agree that a well managed forest is better for California. And so by changing the guiding principles, we can have other goals that are just as important to us.
- Chris Rogers
Legislator
And in fact, when we first started talking about this, the fact that maximum maximum sustained production was the goal with everything else that's nice to have.
- Chris Rogers
Legislator
We wanted to elevate those nice to haves to you must have. And we were looking at more funding structures for it to be able to do more types of work. So going back to the funds.
- John Laird
Legislator
I'm still not sure I'm getting this because let's just say in your district, Mendocino and Humboldt Redwoods, that before the current ownership, they would harvest for three shifts a day in Fort Bragg, and that was clearly way above sustainability. And then they moved to more toward one shift, which is really sustainable. And it's like, how does this bill affect that? I don't understand.
- Chris Rogers
Legislator
And I was getting to that. So we have a local scientist who did an independent analysis that actually shows that within the principles of this bill, if you have proper funding for projects, you could actually see more board feet, but a better managed forest. More board feet, more work. It actually I think it quoted about 300 additional jobs that could be created in my district alone. If you allow for the continued timber harvest and don't just make it reliant on timber sales to fund that work.
- Chris Rogers
Legislator
I think we can all agree that the benefits of the forest, outpaced just the production of wood products, that is a important part. But when we talk about conservation and vegetation management, those are things we're spending money on anyway, so we can elevate that.
- Josh Becker
Legislator
what the question Senator Linner is asking is this bill's focused on demonstration for us. We're getting concerned for folks outside the demonstration for us. How and I think
- Chris Rogers
Legislator
I well, I think it the part mentioned about research and techniques is the part that we hear the most about from folks that the demonstration force provide them with demonstrations and techniques, trying new techniques that they can use on other lands. This bill does not apply to private land. This bill does not apply to private timberland or individual owner timberland, just the publicly owned land.
- Chris Rogers
Legislator
But that's what we hear the con the concern of the drop off from folks in private areas is that the research that is being done or the techniques that are being demonstrated on the public land, informs better management practices for them on the private land. We think that we've captured that
- John Laird
Legislator
But it does not extend a requirement to them Correct. To do anything on Correct.
- John Laird
Legislator
But but I was trying to get at that because I think that's their question. And, you know, you have it used to be that that timber companies were just totally into extraction at the maximum level. And now there are those that are more sustainable, and I'm trying to make sure that those that are more sustainable are not impacted in a negative way by this bill.
- Chris Rogers
Legislator
Yes. And I apologize. I, I was not sure where you're going with that. But as I said at the beginning, this thing
- John Laird
Legislator
trying to get you to speak to them because they're opposed to what they think your bill does, and you're telling me that's not what your bill does. And so I am trying to get clarity.
- Chris Rogers
Legislator
I, I appreciate that. And some of them are opposed. You'll notice that some of the largest private timber industry folks are not on this bill because they recognize that this is only the public lands and us saying that the public gets a say in the management of their owned land.
- John Laird
Legislator
But the sustainable ones Yes. Seem to be opposed, which sort of implies that the sustainable ones are threatened by something in your bill.
- John Laird
Legislator
I know you understand, but you're telling me clearly that's not the case. Right? Okay. Good.
- John Laird
Legislator
Yes. And then the one last thing is is having the SoCal demonstration forced in my district and close to it, been there a ton of times. I know that only as late as this last weekend, some of the nonprofit people there have submitted amendments to you, and that's really short. That's not anything that you could really do in time for this hearing, but will you continue to work with them?
- Chris Rogers
Legislator
Yeah. Yeah. As recently as 5PM last night. We we are still, as I said, willing to work with folks, especially on the technical aspects of it. I've been really honest with people about what the intent of the bill is, and that's to change the frameworks that the focus driving the management are these other environmental principles, not the economics.
- Chris Rogers
Legislator
And so long as we don't undermine that intent with the amendments that are being given, then we are absolutely
- John Laird
Legislator
You see, I know that there is is a view of the people around the Soquel demonstration force that this bill was really crafted around the Jackson demonstration force, and why are we being dragged into this? I think that is is the reason for some of the local opposition. And so I, I, I just hope that this hearing isn't the end of the conversations, and that will continue to be addressed.
- John Laird
Legislator
And I know that that it seems like there have been some places where it has been proposed to narrow it to Jackson, but the very committees you're going in front of say, don't do that. Do it statewide.
- John Laird
Legislator
And yet, some of the other force are reacting in in that way. So when I first heard you were doing this bill, I said you were crazy, just because this has been such a historic issue with such strong opinions. And, and so I'm willing to move it along, but I really want you to address these stakeholders. Because if, in fact, they're not affected, you ought to be able to engage with them in a way that that they move.
- John Laird
Legislator
And I know that the worst thing in our business is when you take an amendment that says this bill doesn't do what you think it does, and you litter the code with those kind of sections.
- John Laird
Legislator
You don't wanna do that. And yet at the same time, if it doesn't do what their fears are, there has to be an explicit way to demonstrate that and, and make sure that that they get that your bill isn't gonna get there. Anyway, I, I've driven this into the ground, but I appreciate the exchange.
- Josh Becker
Legislator
Well, thank you for taking on a a difficult, issue. The analysis is is rife with references to the high wire act and such, which is fun. But, yeah, I have a lot of faith in the author, and we believe this bill does take even steps towards modernizing the demonstration state forest system to reflect the state's values around biodiversity, public access, and climate change adaptation.
- Josh Becker
Legislator
We do encourage you to include our committee on the bill in discussions as the you move forward and appreciate all the collaboration, productive conversations that have happened to get here. Encourage you as discussed with the former natural resources Chair to continue engage with stakeholders going forward.
- Chris Rogers
Legislator
Yeah. No. Just I really I appreciate again all of the work that the committee has done. I appreciate that I am helping to present and argue a bill in front of senators who have been dealing with this issue for decades. And I will just say that this is really a a community driven bill, and I appreciate everybody who has come forward, folks who came up, to testify in Sacramento, folks who continue to offer amendments.
- Chris Rogers
Legislator
We wanna make sure that we get this right. And we wanna make sure that our forests are actively managed in a way that has multiple benefits for our community and for our state. With that, I respectfully ask for an aye vote.
- Josh Becker
Legislator
Okay. Do we have a motion? I vote. Alright. We have a motion, Senator Laird.
- Josh Becker
Legislator
That's two zero. We'll stay on call. Thank you to your witnesses as well. Thank you, Assemblymember Rogers. Alright.
- Diane Papan
Legislator
Neither of which involve trees. Although I do love the topic. I really do.
- Josh Becker
Legislator
Well, always good to have the Chair of Water, parks, and wildlife
- Diane Papan
Legislator
Well, good morning, Mister Chair. I I'm delighted to be with you to present two bills. I will start with the two two three four, which deals with geothermal. That's the first one, I guess. Wait.
- Diane Papan
Legislator
One's file 13 and the other, I don't know what it is. Okay. Alrighty. So, I'm here to present AB 2234. I'd like to first open by thanking the committee and the Chair for, their diligence on this important issue, and I'm happy to accept the committee one of my favorite topics.
- Diane Papan
Legislator
So it just modernizes the statutory definition of geothermal exploratory projects to reflect that we have some advanced technologies as it relates to geothermal exploration. So my office has been working diligently with the opposition stakeholders over the last week, and we have reached an agreement on the language that will be acceptable. So the goal of AB 2234 is simple. Let's expand geothermal energy and the definition of these exploratory geothermals so that we can signal to developers California is ready for exploration.
- Diane Papan
Legislator
With that, I will turn it over to Kate Brandenburg on behalf of Sonoma Clean Power.
- Unidentified Speaker 046
Thank you very much. Thank you. And, before we get started, I'd like to say go team USA. But as Assemblywoman Pappan stated, you know, this modernizes the definition of geothermal exploratory geothermal. And we feel if California is going to meet the climate goals, we need to look at the future and and figure out how are we going to get clean energy while maintaining the system of reliability and that is affordable for rate payers.
- Unidentified Speaker 046
So we believe AB 2234 will do just that, and we appreciate all the help that, the consultants have helped with the language. Thank you.
- Josh Becker
Legislator
Okay. Governor and you are accepting the committee amendments? Oh, yes. Excellent. Others in support?
- Unidentified Speaker 005
Good morning, Chair, backer, and members. John Kendrick on behalf of the California Chamber of Commerce in support.
- Unidentified Speaker 039
Michael Jarrett with The Nature Conservancy in support. Thank you.
- Josh Becker
Legislator
Opposition. Any opposition? Weiner? Shane Levine on behalf of the Northern California Power Agency. Appreciate the author, the sponsors in the committee.
- Josh Becker
Legislator
We did resolve our differences. We are removing our opposition and now neutral. Thank you. Appreciate it. Love to hear it.
- Josh Becker
Legislator
We have a motion. Our clerk is out for the moment. We'll be back very shortly. Hold on a second. We'll take a quick moment here.
- Josh Becker
Legislator
We move on to your next bill and then we'll take a motion, shortly. Great. Move on to, two Pleasure of
- Diane Papan
Legislator
Yes. So, so this bill is about recharging our ground water, And when we have too much water, how can we make recharging our groundwater happen really fast? And, so part of what you have to do when we have these big deluges of water, right, we don't have as much from our alpine snowpack anymore. We're getting much more water and the ability to recharge through atmospheric rivers and whatnot.
- Diane Papan
Legislator
So the point of this bill is is how can we act quickly to get water diverted should we need to, and how do we determine and in order to do that, you need to determine what excess water is.
- Diane Papan
Legislator
And it is a very important determination to all those that might have water rights along a particular waterway. So what this bill does is it says the California Council of Science and Technology will be doing watershed wide water availability analyses to make that determination of what is excess water when we have it.
- Diane Papan
Legislator
And it's really the bill is about using the best and the brightest that we have here in California to make those determinations and hopefully relieve some of the folks that are applying for permits to take water from a certain location, take some of the burden off them. We held an informational hearing and they all said, you know, they each have to spend for their permit about $2,530,000 dollars to do these assessments to make that quick judgment to get excess water when it comes.
- Diane Papan
Legislator
Let's get our best and our brightest, make the determination, and relative to various permit app, applicants, they can use that as a source. They say, well, this excess water determination was made by the best and the brightest, so allow us to take the water when it comes, recharge our our groundwater. And as we all know, recharging groundwater is terribly important, not just because things are sinking, but it's also a way that we can store water should we need it when it comes.
- Diane Papan
Legislator
So, the you know, we've got a lot of ambitious goals here as it relates to recharging groundwater, and I think this bill is just one way to make it easier for those folks that are trying to get water and rainwater when it comes.
- Josh Becker
Legislator
You have others in support. Others who would like to weigh in in support. Anyone in opposition?
- Paul Reeve
Person
Good morning, Mister Chair. Paul Reeve with Reeve Government Relations on behalf of the Valley Ag Water Coalition, which represents farm water suppliers throughout the San Joaquin Valley. The coalition members appreciate the motivation and the intent of the author on this bill. This is a very challenging part of the law to deal with in real time and real life, But we do have a number of concerns with the bill.
- Paul Reeve
Person
First, there's no requirement in the bill that the State Water Resources Control Board will take notice of the results of the study.
- Paul Reeve
Person
So if we don't require the State Board to to concur with the water supply availability assessment in the study, then then what is the purpose? And the goal of the bill is probably not achieved. Second, the State Water Resources Control has a duty to consider the impact on public trust resources.
- Paul Reeve
Person
This bill only recognizes the water rights and water quality permits that are in in regulations, but as as we all know, the terms and conditions in a water rights permit, some of them approved thirty, forty, even sixty years ago, probably predate a lot of the public trust requirements in the Clean Water Act and then the California Endangered Species Act and and subsequent enactment. So the bill leaves that out.
- Paul Reeve
Person
That could be a concern also that the state board would have. Finally, there's no funding in the bill. There's no funding in the current budget to support the study that this bill would encourage, I suppose, the department to undertake. The author mentioned the 20 to $30,000 that this cost. That's true.
- Paul Reeve
Person
That's but that's just the fee that the state board requires when you make an application. The water supply assessments are costing upwards of $50,000 complete with no guarantee that that expenditure is going to result in even a temporary permit being granted by the board. So, again, applaud the author, like her intent, but we think the bill falls short of that and we'll request a no vote.
- John Laird
Legislator
None there. All the members? I have a question because it seems like there's this catch 22 when in the opposition, which is on one level, they don't want this to be prescriptive out of the study. On another level, they say, well, we don't support this because it's not prescriptive. And so I'm trying to understand, whether or not this bill is prescriptive.
- John Laird
Legislator
I mean, if a study comes out of this, are there requirements that people take actions based on the study?
- Diane Papan
Legislator
No. They can the purpose of the bill is is that you don't have to go hire your own expert. And the DWR may accept your own expert's output study. They may accept this independent one. There's no guarantee that they're going to accept whomever is submitting a study.
- Diane Papan
Legislator
But what we heard was that was an expensive part of the process. So what we were hoping was to get a neutral and then have permittees or people seeking permits to be able to go to that neutral instead of spending their own resources. And and and their own resources on their own study could be looked at with that they may be less objective. We just don't know by DWS.
- John Laird
Legislator
And excuse me. And the amendment that you took basically says this bill doesn't get in a way of the regulatory authority of one agency. So so it it specifies that in a way that it's clear. Okay.
- Diane Papan
Legislator
Basically, we're gonna create a resource that people can tap into to determine that excess water, and it makes us presumably more nimble along the way.
- John Laird
Legislator
And are you continuing discussions? Do you think there's a chance that that you can move them off of the opposition?
- John Laird
Legislator
I was gonna say it's I read the facial expressions as ambivalence.
- Diane Papan
Legislator
Well, you know, the the purpose of the bill really is to promote neutrality in so many ways. So it's it's difficult to say, here's your neutrality. And by the way, well, we're not comfortable with neutrality. I I don't know if I can help that goal.
- John Laird
Legislator
It's not unlike the previous bill where the question was is to take amendments that say this bill doesn't do what you think it does, and then you clutter up the the statutes with that. So I take your comments at face value that this provides more information but does not specifically guide the regulatory process.
- Josh Becker
Legislator
With that, I will be recommending I've this is a, obviously, critical issue and getting the best advice you say that we have, the California Council on Science and Technology involved is a wise way to do it. Would you like to close?
- Diane Papan
Legislator
Miss Buckley, your question, I vote, and thank you for the discussion.
- Josh Becker
Legislator
Okay. We'll first take a motion. Do we have a motion on this bill? No. Senator Laird moves.
- Josh Becker
Legislator
So this would be a motion on file 14, do pass as amended to appropriations. Please call the roll.
- Unidentified Speaker 020
Senators Becker? Aye. Becker, aye. Searto, Allen, Cabaldon, Grove, Laird? Aye.
- Josh Becker
Legislator
That's two to zero on call. Now we'll take a motion. We have a motion from Senator Laird on file item 13, AB 2234. That is also do passes amended to appropriations. Please call the roll.
- Unidentified Speaker 020
Senators Becker? Aye. Becker, aye. Searto, Allen, Cabaldon, Grove, senate Laird. Laird, aye, Stern.
- Josh Becker
Legislator
Assemblymember Ellis, you have two bills. Welcome to our committee. Okay. We are you gonna do two four one zero first?
- Stan Ellis
Legislator
Okay. Yeah. Thank you, Mister Chair and senators. I wanna thank the committee for the hard work on this bill, and we'll be taking, committee amendments. It's evident to everyone that just how critical our wildfires are to the state, the issues are with wildfires.
- Stan Ellis
Legislator
In January 25, California experienced some of the most destructive wildfires in the state history. Fires are now considered among the most costly natural disasters in US history. Recognizing the urgent need, to to reduce wildfire risk, the governor issued an emergency proclamation in March 2025 that suspended CEQA, the Coastal Act, and other regulatory requirements for fuels reduction projects. Since then, over 400 wildfire safety projects have been approved statewide with some projects being approved as little as in thirty days.
- Stan Ellis
Legislator
While this proclamation has been highly effective, in accelerating critical prevention work, it expired on May 1.
- Stan Ellis
Legislator
To continue reducing the risk of the next catastrophic wildfire, it's essential that we maintain certainty for this necessary fuels reduction projects. Twenty four ten will exempt fuel reduction projects to remove non native species, 12 inches or less in diameter, or common species, eight inches or less in diameter with very high fire hazard severity zones and higher fire threat districts from CEQA requirements for three years.
- Stan Ellis
Legislator
This target exemption will help the state tackle extremely flammable species such as junipers in rural parts of the state and eucalyptus in more urban areas that fuel major wildfires. By removing these barriers, AB 2410 will accelerate critical wildfire prevention work, reduce cost and delays for local and state agencies, and better protect our most vulnerable communities from catastrophic wildfires. I respectfully ask for your aye vote.
- Stan Ellis
Legislator
I don't have anyone. I my witness could not testify today. So respectfully ask for your aye vote.
- Leila Romero
Person
Leila Romero on behalf of the League of California Cities in strong support. Thank you.
- Stacy Heaton
Person
Stacy Heaton with the Rural County representatives of California, representing 40 rural counties statewide. My colleague apologizes. He was supposed to be here to testify in support on the bill. But this, bill fills some really important gaps in current CEQA exemptions and include safeguards from the governor's, executive order, and, we support the bill today. Thank you.
- Caitlin Leventhal
Person
Good morning. Caitlin Leventhal with the California State Association of Counties, also in support. Thank you.
- Josh Becker
Legislator
Thank you. Opposition. Do we have a lead opposition? We do. Go ahead.
- Jakob Evans
Person
Good afternoon, Mister Chair and member. Jacob Evans with Sierra California here on behalf of over half a million members and supporters in California in opposition to AB 2410. We appreciate the work of the committee and thank the author for accepting amendments to remove the coal stock exemptions that were included in the bill. Sierra Club, California remains opposed due to the CEQA exemption for the specified projects remaining in the bill.
- Jakob Evans
Person
While narrow, the CEQA exemption remaining in the bill still hinges environmental protections for its qualifying projects on compliance with the governor's state environmental protection plan.
- Jakob Evans
Person
The guidelines in Thisblan are weak and largely optional. For example, known sensitive habitat must be avoided but there's no server requirement to identify the habitat. An riparian logging and heavy equipment operations on steep slopes must be avoided once it's quote not feasible to do so, Leaving little protection for the risk these operations can create. The legislature haSBrovided many sequence options for wildfire mitigation projects including those in SB 131 which was passed just last year.
- Jakob Evans
Person
Further attempting fuel reduction projects without having an opportunity to examine the impacts of these newly legislative sequo assumptions could lead to unintended consequences for environment and public health.
- Jakob Evans
Person
Sierra California and our members are eager for action from the state to secure more wildfire resilient future, but remain concerned that a sequo exemption of these projects unnecessarily jeopardizes ecosystems by removing harm mitigation and public engagement requirements. Rear Genova. Thank you.
- Tara Thornton
Person
Hello. Tara Thornton, Freedom Angels. We are opposed and less amendment amended. I'm gonna speak specifically to conventional herbicides. Our request is to remove conventional herbicides from the CEQA exemption.
- Tara Thornton
Person
We are while support in big support of urgent and ongoing prioritization of wildfire and fuels mitigation in our state. We think it's a priority. We think it's wildly partisan, but so is the issue of conventional herbicides, and Californians want less, not more. We are not looking to ban anything with this request. We are just saying if you want to streamline your fuels reduction project, that you have to use every other prescriptive method except for conventional herbicides.
- Tara Thornton
Person
If you want to use conventional herbicides, then stay in the CEQA process that's governed that process and application for years or decades. And we now understand that there is a very clear difference between the existing pesticide regulations that would stay with this bill. That's local, state, and federal pesticide regulations that govern application certification, label use, reporting, and, and things like that. But CEQA is a very different set of issues that are addressed. One, it requires an alternative analysis process.
- Tara Thornton
Person
It gives, public input and public recourse, as well as things like cumulative impact and and site specific review, but our our we feel that this is a very simple amendment to take that meets the needs of, you know, it's dancing, wildfire, and fuels reductions, while also not prioritizing because streamlining is prioritizing and it is a policy choice to incentivize the use of more conventional herbicides as opposed to switching the incentive to saying if you want the fast track bonus, then you get to use every other prescriptive tool.
- Tara Thornton
Person
We think it's a win for everybody. We can meet the intent of the author and what the direction Californians would like to see. And I'm happy to discuss levels of pesticide or herbicide use if that is helpful to anyone. Thanks.
- Josh Becker
Legislator
Thank you. We'll take it back to committee. We are on filing 15. Any thoughts from the committee? Senator Laird?
- John Laird
Legislator
Thank you, Mister Chair. The bill that is in print sort of goes at some work that the Chair has done and Senator Stern has done. And at some point, I would love for you to speak to that. I have you as the owner of something that this affects. I appreciate the amendments with regard to the Coastal Act because I think speaking for myself, but I know that it gets reflected by the committee as well.
- John Laird
Legislator
We are not thrilled about exemptions to the Coastal Act, and I really appreciate the amendments, taking that out. The one question I sorta had, and I don't know if anybody can answer it, is there were a number of environmental groups in opposition, and I had expected to hear that the amendments would move a few of them to neutral, but nobody stood up and said that. Does anybody know what the whether the amendments have moved some of the opposition to neutral?
- Stan Ellis
Legislator
Yes. Absolutely. To the person that spoke on herbicides, we're we're more than open to to that. We do know that a lot of areas that you can may try to mechanically remove, but we are certainly open to amendments on this bill.
- John Laird
Legislator
Okay. I would just encourage you to continue those conversations, and I'll keep looking at that to see if there's progress. Thank you, Mister Chair.
- Josh Becker
Legislator
Okay. Yeah. I I appreciate this effort. I know that it's been very important for the administration and our our Chair of our current Chair of natural resources around these projects.
- Josh Becker
Legislator
Speaking to this, you know, Senator Stern is the lead on the other bill, and I know he's been having a lot of similar kinds of discussions around this because I know that our, again, our current national resources Chair feels that, our not Chair, the current national resources agency head, believes there's very positive, story here around, safeguards in place, but still streamlining.
- Josh Becker
Legislator
And so with that, with your appreciate your commitment here, the amendments. Again, you know, do fill this regulatory gap for fuel reduction projects that are exclusively moving small diameter flammable species with a reporting requirement and a sunset. The legislature can evaluate the success of this exemption and make adjustments as necessary. So we appreciate you taking those investments, amendments and having the discussions going forward. And I think, you know, as I mentioned, Senator Stern is engaged in some some similar discussions as well.
- Josh Becker
Legislator
So I know this is all, you know, relatively new, and there being some important discussions, I think, over the break. With that, I'm happy to support the bill. Would you like to close?
- Stan Ellis
Legislator
Yes. I I I was in natural resources yesterday, last year, and I supported Senator Cern's, commitment and, sure, I'm positive with this bill, and I support him 100%. And this kinda coaligns with that. So, anyway, I respectfully ask for your aye vote.
- Josh Becker
Legislator
We let's see. Do we have a motion? Senator Cabaldon moves the bill. A do pass as amended to appropriations. Please call the roll.
- Committee Secretary
Senators Becker. Aye. Becker, aye. Searto. Aye. Allen. Cabaldon. Aye. Cabaldon Aye. Grove. Laird. Laird Aye. Stern.
- Stan Ellis
Legislator
Okay. So, again, thank you, Mister Chair and members. I wanna thank the committee for working with me on this bill and with accepting the amendments. I am proud to present twenty seven eleven, which is an essential measure that will bring clarity to California's drilling permit process. California is facing a serious energy crisis.
- Stan Ellis
Legislator
In state production of oil and gas has declined drastically, and the state is now down to six refineries from once operating more than 40. All the while, demand for fuel in the state has remained substantial. As a result, California has dramatically increased dependence on foreign crude supplies. Many of these source countries such as Russia, Iraq, Saudi Arabia, and Brazil operate under far weaker and nonexistent environmental safety and labor standards for those in as compared to those in California.
- Stan Ellis
Legislator
This increasing reliance on foreign imports has put the state at a heightened risk of shortages, price spikes, and supply vulnerabilities.
- Stan Ellis
Legislator
If we want to protect working families from these potential consequences, we must have robust domestic production. Unfortunately, loopholes in the current drilling permit process have allowed approval times for notices of intention to drill balloon from just days to many months or even years. These excessive delays are stifling production at the very moment that we need it the most. AB 27 is a reasonable measure that will restore predictability and efficiency to the permitting process.
- Stan Ellis
Legislator
The bill will require CalGEM to make a completeness determination of notice of intention within ten working days of the receipt of a notice and provide a list of missing or deficient items if a if a notice is deemed incomplete.
- Stan Ellis
Legislator
If a notice is deemed complete, CalGEM would be required to approve or deny a notice of intention within thirty working days of date of the determination of the completeness. And in the event of a denial, include a rationale why the notice was denied. This bill, very importantly, does not weaken environmental review whatsoever. This bill is clerical and basically in speeds up the timeline to get a permit issued. Anyway, so it'll restore predictability and efficiency in the permitting process.
- Stan Ellis
Legislator
With that, I respectfully ask your vote. And here with me to test testify is Ted Cordova with E and B Natural Resources. Go ahead.
- Ted Cordova
Person
Thank you. Good morning, Chair and members. My name is Ted Cordova, and I'm here on behalf of E and B Natural Resources in strong support of AB 22711. First, I'd like to thank Assembly member Stan Ellis for his leadership and for working with stakeholders to advance a bill that brings greater transparency and accountability to California's well permitting process. As the author said, AB 2711 does not reduce environmental protections or limit CalGems authority to conduct thorough technical and safety reviews.
- Ted Cordova
Person
Instead, it promotes a permitting process that is predictable and timely. We appreciate the bill's focus on providing an improved permitting process while maintaining California's rigorous environmental review standards. AB 2711 is a practical step toward a more efficient regulatory process, and we respectfully ask for your aye vote. Thank you.
- Sean Wallentine
Person
Sean Wallentine from the California Independent Petroleum Association, in support of the bill. Thank you, sir.
- Unidentified Speaker 026
Paul Yoder on behalf of the Kern County Board of Supervisors in strong support. Thanks.
- Jacob Lopez
Person
Hello. Jacob Lopez here with Holmes Western Oil Corporation in support.
- Josh Becker
Legislator
How about opposition? Do we have opposition lead opposition witness? Yeah. Please come forward. You could sit at the table or
- Juan Flores
Person
Hello, Chair, Baker and Senate natural resource committee members. I'm Juan Flores. I'm the organizing director for the Center on Race, Poverty, and the Environment. For the past fifteen years, I've had the honor to work alongside Kern County working families to help uplift their voices and concerns around the environmental and health impacts as a result of the oil and gas industry. For many of these families, these impacts are not abstract.
- Juan Flores
Person
They live next to active oil wells and continue to experience higher rates of asthma, respiratory illnesses, headaches, nosebleeds, and other health concerns associated with prolonged exposures to air pollution from oil and gas operations. Today, I'm here to express my deep concern and opposition to AB 2711.
- Juan Flores
Person
This bill will expand an automatic approval of a notice of intent to drill if the Department of Conservation's geologic energy management division, the state oil and gas regulator, has not already approved or denied a notice of intent within thirty working days from the date of receipt. This bill is yet another giveaway to the oil industry even as companies are making record profits and price gouging consumers at the pump.
- Juan Flores
Person
Our communities are at a further disadvantage after the state of California eliminated future environmental review under the California Environmental Quality Act for thousands of new wells in Kern County.
- Juan Flores
Person
What needs to be clarified is that the approvals of a notice of intent to drill are not merely administrative actions, but require consideration of issues such as compliance with setbacks from sensitive receptors, geologic safety, and other environmental impacts. Automatic approvals can can improperly rush this important review process and limit Cal James' discretion over permit decisions, creating risks to public health, safety, and the environment.
- Juan Flores
Person
We oppose, AB 2711 because its passage would mean that our disadvantaged and pollution burden communities will continue to avert the financial and health cost of the oil and gas industries industry's record profits. In conclusion, it is my it is important to protect Call GM's ability to appropriately review notice of intents in line with its statutory directive to manage oil and gas development so as to prevent, as far as possible, damage to life and health.
- Marie Liu
Person
Good morning, Marie Lu, on behalf of the Central California Environmental Justice Network. We're opposed to to this bill, unfortunately, because we think it's inconsistent with CalGEM's mission, which is to regulate California's oil, gas, and geothermal industries with a focus on public health, safety, and environmental protection. In comparison, we believe this bill is emphasizing SWEED. Even if we believe that, you know, we're trying to focus on timeliness, we're concerned that this bill actually doesn't achieve the doesn't fix the problem, stated.
- Marie Liu
Person
For example, in Kern County, where we have, where we have had historically problems with delays on environmental review, since the passage of two thirty seven last year, just this year, there has been three hundred three hundred and thirty nine permits NOIs requested in in in Kern County.
- Unidentified Speaker 057
95% of them are being approved within thirty days. This is not, Kern County is not unique. As stated in the committee's analysis, last year, there were, a mere 26 n o NOIs, requested. 25 of them were approved. So we're concerned that this bill, even if it's, even if it if this bill passes, it's not actually improving time, for a vast majority of permits.
- Marie Liu
Person
Where it will have an impact is on the edge cases, The cases where CalGEM does need additional time. And for example, this is particularly important dealing with checking compliance with setback requirements. And especially in high growth areas like in in the city of Bakersfield, CalGEM does not necessarily have the most up to date maps, and they are forced sometimes to rely on Google Maps to check compliance with setback requirements, which can be up to two years old.
- Marie Liu
Person
And so we're in a situation where concerned about this bill will force Kelchem either to, speed their review or force or force a denial on a permit, which leads to more litigation. So for these reasons, we, unfortunately, are opposed to this bill.
- Katie Valenzuela
Person
Katie Valenzuela on behalf of Communities for a Better Environment in opposition. Thank you.
- Vanessa Flores
Person
Vanessa Flores on behalf of Clean and Healthy California in opposition. Thanks.
- Mark Fenstermaker
Person
Good morning, Mister Chair. Mark Fenstermaker for Earthjustice, opposed.
- Christina Scurridge
Person
Good morning. Christina Scurinj with the Center for Biological Diversity, opposed.
- Jason Feiffel
Person
Jason Feiffel here voicing opposition from Physicians for Social Responsibility Los Angeles and Climate First replacing oil and gas. Thank you.
- Mercedes Macias
Person
Mercedes Mesilla, Sierra Club, California and Kern County native in opposition.
- Josh Becker
Legislator
Alright. Thank you all. I'm coming back to Deis. Would you any questions, comments? Well, Senator Laird then.
- John Laird
Legislator
First, your opening comments about other countries and and their lesser environmental standards. You're channeling Senator Grove. She's not in the room. There was a speech she's given in this room many times. So if she walks in, tell her the speech has already been given.
- John Laird
Legislator
sir. I think that there was this problem in Kern County, and then it got resolved with with regard to sort of a CEQA suit. And it in many ways, I suspect this bill was originally to get at that, but that does not exist in the same way. And if I were to socialize this bill, it sort of takes an oil friendly process and makes it slightly more oil friendly even though there was an issue that has been resolved there.
- John Laird
Legislator
And so on some levels, I I'm not sure what the need is for this bill at this point.
- John Laird
Legislator
And I would ask you that after that matter's been resolved, why do you think this bill is still needed?
- Stan Ellis
Legislator
That's a great question. First of all, there's a ten year sunset on bill two thirty seven that was passed last year. And then also, it still does not it still does not speed up the permit application process. Simply, we we we ask for look, ten days is the is the is it complete. Thirty days, give us a yes or no.
- Stan Ellis
Legislator
I'll I'll explain. The and I'll explain a little bit to the opposition. One is that there have been three thirty nine permits pulled with the previous year in twenty twenty five, seventeen. So out of these 339 permits, an average of thirty, forty barrels a day gives you about a thousand barrels a day of production. To Shannon Grove's point, we're importing a million barrels a day.
- Stan Ellis
Legislator
So we need to speed up our process. But but and then and and to the opposition's point on setback eleven thirty seven, eleven thirty seven is really a site review of from sensitive receptors scepters. It's 700 acres. Boom. Done.
- Stan Ellis
Legislator
It's not like it takes months of research and time. Time is of the essence. We need to get back to producing. Otherwise, our pipelines are gonna be empty. Our refineries are gonna shut down.
- Stan Ellis
Legislator
And I would like to elaborate kind of towards Shannon Grove's point.
- Stan Ellis
Legislator
Yes, sir. So so we're bringing in this million barrels a day, and these ships that are have normally aspirated internal combustion engines are burning number six fuel oil, which isn't environmentally friendly. They're putting out what are called poly nuclear aromatics, benzene, Phenethracene, benzopyrene. And they're actually regulated hazardous by the EPA. When they get 10 miles out, they'd kick over to low sulfur diesel so they don't look like they're dirty.
- Stan Ellis
Legislator
We the reason I'm adamant about this is we need to increase in state production, and we need to speed up the permit process. That simple. So thank you very much.
- John Laird
Legislator
Okay. And and Mister Chair, in a comment, I'm just genuinely torn on this bill, mostly because I don't think it does much at this point. So in a way, maybe I should be supporting it. But if it doesn't do much, why are we doing the bill? And I think that's the tough choice that is in front of the committee.
- Christopher Cabaldon
Legislator
Yes. Just to follow-up on the same stream. So the lead opposition witness notice gave us information about sort of where we're at currently in terms of applications submitted, how quickly they're disposed of, and it does seem awfully compelling that the vast, vast majority are already within the boundaries of the bill. And so I'm wondering if you could respond directly to that set of data that she was sharing with us.
- Leo Dale
Person
Thank you. Through the Chair. Thanks for the question. The I really appreciate the work that the the legislature has done with in regards to Kern County, and it's definitely, a better permitting system. But, it's limited to Kern County, and there's production all over the state of California and other regions.
- Leo Dale
Person
And so this bill isn't trying to speed up Kern County or, really speed up, the process. In fact, it actually, it gives CalGen more time than it currently has. You still have to go through all your environmental and technical reviews. That hasn't changed. This isn't rubber stamping permits at all.
- Leo Dale
Person
It's just giving everybody some predictability on about if you're done with your checklist, CalGEM needs to respond, provide you with a criteria of what what still needs to be done, and then and then you you you correct that. And so, in other parts, we're we're not seeing, predictable timelines, outside of Kern County. And so I think this this bill, improves the permitting process throughout the state of California for the state.
- Christopher Cabaldon
Legislator
with your with your permission, just ask the opposition witness if this the data that you're sharing is only for Kern?
- Marie Liu
Person
The data that I was sharing was for Kern County, where we have the majority of, where we have the majority of NOIs. But looking outside of Kern County, just looking at last year's data, where you had, you know, I'm sorry, 25 out of all but one NOI approved, and and the analysis points out it was an average of five months. If the goal is to, I so even outside of Kern County, we don't see timing as an issue.
- Marie Liu
Person
We also think that current law does this bill is not actually an increase in current law. In current law, CalGEM has ten days to recognize that a NOI has been received.
- Marie Liu
Person
If they do that recognition, there is no there is not a time limit on how long they need to, take to review. This bill puts a ten day restriction on the information on on determining whether the application is complete and then adds a thirty day time limit on consideration of the complete information. So it's still it is more restrictive than existing law.
- Christopher Cabaldon
Legislator
Alright. If I can ask one other one other question to the opposition. So the, I mean, I think part of the center line of the case that you've made is that you're worried that CalGEM would then feel pressured or feel no alternative other than to approve.
- Christopher Cabaldon
Legislator
And given mission and the statutory controls and the other things that are in the amendments, just to reinforce it one more time, is it possible that the bias would actually operate in the opposite direction and that we'd see more denials as CalGEM is like, well, we cannot fulfill our statutory mandate in within thirty days, so we're just gonna deny. Is that isn't that just as possible?
- Marie Liu
Person
Yes. No. Actually, our our concern is that CalGEM will be pressured to actually deny more. And if they're if they're denying, then they're subject to litigation from from the industry on inappropriate denial. And so I think this is a situation in in many cases, at the very least, you wanna sit you know, there may be a legitimate reason that the industry and CalGEM agree there there needs to be a pause.
- Marie Liu
Person
There there needs to be additional information. There's initial analysis out there. There's no leeway for that. And so under that circumstances where CalGEM's like, it's not appropriate to approve, we should deny just because we don't have the information or we don't have the time that's necessary, and then they will likely get sued. And we're we're very and that's what we've seen happen with fracking permits.
- Marie Liu
Person
And so that's that's why we're concerned this is an unnecessary given that, so many permits are approved on a quick basis, it's unclear why we even need to put this restrictive time frame on there compared to what we have with current law.
- Christopher Cabaldon
Legislator
Appreciate both the the witness and the opposition. Thank you, Mister Chair.
- Shannon Grove
Legislator
Thank you, Mister Chair. When you say there's a lot of permits that are approved on a quick basis, I represent that area with the top three produce food producing counties in the world, top energy producing county in the world, and you get nothing in a good time line from the state government on a quick basis.
- Shannon Grove
Legislator
And I appreciate the author bringing it forward, continuing to defend our oil industry, which does provide a com California compliant, product that we oversee the process, and it's way better than importing that from foreign countries that are hostile to us. And I appreciate my good colleague, the former Chair from Natural Resources, saying that you were channeling me earlier. He brought that to my attention.
- Shannon Grove
Legislator
And I'll move the bill if appropriate if it has not been moved yet.
- Josh Becker
Legislator
It's not been moved yet. So well, I wanna thank you for working with the committee staff and myself to address some of the concerns raised by opposition. I continue to be concerned about some of the the opposition appoints. I do tend to agree with Senator Laird that this will probably won't move the needle too much either way.
- Josh Becker
Legislator
And at the end of the day, we feel that requiring a regulator to adhere to a timeline in making a decision whether to approve or deny a permit when the regulator has all the information they need to make the decision is reasonable.
- Josh Becker
Legislator
It's important to remember that the permit to drill a well is the last step in the process of approval or denial when all the other permits have been obtained. So I appreciate you taking the amendments, and do you agree to keep working with the opposition on a couple of these last points? Well, we appreciate that. With that, I vote with the amendments. We have a motion.
- Josh Becker
Legislator
Okay. We have a motion from Senator Grove. The motion is do passes amended to appropriations. Please call the roll.
- Josh Becker
Legislator
Okay. 51, that's on call. Thank you. Alright. Assemblymember Wicks, thank you for joining to present the bill.
- Josh Becker
Legislator
Okay. 51, that's on call. Thank you. Alright. Assemblymember Wicks, thank you for joining to present the bill.
- Josh Becker
Legislator
Thanks for all the work you've done on the bill. I'm gonna pass it over momentarily to our vice Chair while I just run to the rest of my video.
- Buffy Wicks
Legislator
Okay. Great. And this I think it should be relatively quick. It has no registered opposition. I'm just I'm just, you know, always have these little bills, non controversial.
- Buffy Wicks
Legislator
Mister Chair, members, I like to begin with thanking the Chair and the staff for their work with my office and stakeholders on a number of proposed amendments that are outlined in the committee's analysis. I am happy to accept all of them. AB 2,051 directs the Natural Resources Agency to convene a coastal resilience permitting working group, who will meet to develop a road map for projects proposed along California's coast and in the San Francisco Bay.
- Buffy Wicks
Legislator
Today, a project sponsor on the coast may need to secure more than a dozen separate permits from state, federal, and local agencies. The process is beset by redundant and inconsistent application requirements, no aligned review timelines, sequential rather than concurrent permit processes, no single agency to coordinate or resolve conflicts, and a chronic staffing vacancies in departments that require highly specialized expertise.
- Buffy Wicks
Legislator
Attempting to cut green tape is not a brand new idea, and recent administration, including under governor Gavin Newsom, have sought to move faster with less bureaucracy to adapt to the realities of climate change. However, the challenge challenges here remain massive. Decades worth of well meaning processes are overlaid on top of one another, and it is still too expensive and time consuming to move with the speed and cost efficiency our coastline will need to adapt to sea level rise and an altered climate.
- Buffy Wicks
Legislator
AB 2051 does not change the existing permitting requirements or weaken any environmental protections. An advisory group mandated in the bill is specifically charged to ensure that streamlining efforts do not weaken protections for fish and wildlife habitat, tribal cultural resources, or public access.
- Buffy Wicks
Legislator
With this bill, we can hopefully set California in a path that will lead to actionable recommendations that improve permit issuance timelines, align mitigation requirements, accelerate permitting, and assess how to create and and retain essential permitting staff. With me here to testify is Adrian Covert with the Bay Area Council and Kristen Zorman of the Port Of Redwood City.
- Adrian Covert
Person
Alright. Thank you, Chair and members of the committee, for the opportunity to testify today. My name is Adrian Covert with the Bay Area Council representing the 370 largest employers in the Bay Area and a proud cosponsor of AB 2051. Earlier this year during the king tides, we saw major flooding again, with roads underwater.
- Adrian Covert
Person
Communities reminded once again that flooding, storm surges, and sea level rise are not future problems, but current realities in the Bay Area as they are in other coastal regions around the state.
- Adrian Covert
Person
We know what the solutions are, living shorelines, restored wetlands, and, levees and seawalls were necessary. But too often, the biggest obstacle is not determining what the engineering solution is, but funding and permitting that solution. The Assembly select committee on permitting reform chaired by Assembly member Wicks, last year helped highlight many of the processes that are leading to delayed projects and unnecessary added costs on all sorts of infrastructure projects. This legislation represents a natural and timely next step in that process.
- Adrian Covert
Person
Through the select committee process, many specific permitting challenges and potential reforms were identified, from completeness determination time lines to unified permitting portals.
- Adrian Covert
Person
But rather than attempting to impose a one size fits all solution for the from the legislature, this bill entrusts our state and regional agencies to work together with stakeholders to identify coordination and process improvements needed to deliver projects more efficiently and, just as importantly, to identify the staffing and resources needed, for those permitting agencies and reforms to succeed in achieving these goals. And when public projects are delayed by inefficient permitting processes, time and taxpayer dollars are wasted, and our impact is lessened.
- Adrian Covert
Person
And when private projects face uncertainty and delay, investment moves elsewhere, and we need that investment on the shoreline. The cost of adaptation are high, but the costs of failing to adapt are far higher. So with this, I respectfully ask for your aye vote.
- Christine Zortman
Person
Good afternoon or good morning, Assembly members, and excuse me, Senate Senate Committee members. My name is Christine Zortman and I am the executive director at the Port Of Redwood City as well as a board member for Bay Planning Coalition. The Port Of Redwood City is integral to the Bay Area as we are building out Silicon Valley as well as the South San Francisco Bay, importing the raw construction materials to build, the region as well as doing a lot of recycling for the region.
- Christine Zortman
Person
We are always looking for opportunities to improve our environmental stewardship. Like all ports, our port is an economic engine for our community in the broader South San Francisco region, managing high value critical public infrastructure supporting the economy, public access, our local environment, and climate resiliency.
- Christine Zortman
Person
Port projects often deliver multiple public benefits simultaneously. We like to say that we wanna live harmoniously, industry, recreation, the environment, and the public. Our flora and fauna together. While existing permitting is thorough, it is often a fragmented process across multiple agencies with reviews occurring sequentially rather than in coordination, resulting in delays that effectuate construction costs rising as well as prolonged community flood risks rising and postponing environmental and public access benefits.
- Christine Zortman
Person
In, 2022, I was delighted to visit a project in the Sam San Diego Bay, which was a nature based living shoreline project along their bay.
- Christine Zortman
Person
And I thought if that has already met success criteria, it is something that we should be able to do at our port. Three years later, when we wanted to implement a small pilot project at our port, We spent three years going through that with the regulators because it was something that they didn't believe that they needed to reach out to their counterparts in Southern California to discuss the success criteria of that project. We are breaking ground this month on that project.
- Christine Zortman
Person
However, the goal is that we wanted to meet the success criteria for this pilot project so that our board of port commissioners could start to establish policy decisions for nature based shoreline solutions where applicable. AB 2051 does not weaken our environmental protections.
- Christine Zortman
Person
Okay. So I do respectfully ask that you vote for aye in support of twenty fifty one. Thank you, Senator.
- Unidentified Speaker 015
Mark E. Seager with the County of Los Angeles in support. Thank you.
- Unidentified Speaker 026
Mister Chair and members, Paul Yoder on behalf of the San Mateo City and County Association of Governments, City and County of San Francisco, San Francisco Ferry, County of, Marin, all in support. Thank you.
- Christine Zortman
Person
Chair and members, Moira Topp here on behalf of both the Orange County Transportation Authority as well as San Diego Mayor Todd Gloria, both in support.
- Unidentified Speaker 025
Catherine Charles on behalf of the Bay Planning Coalition is a proud co sponsor in support.
- Unidentified Speaker 027
Jay Schultz on behalf of the East Bay Regional Park District in support. Thank you.
- Unidentified Speaker 047
Caitlin Leventhal on behalf of the California State Association of Counties in support. Thank you.
- Unidentified Speaker 051
Marissa Rodriguez with the Planning and Conservation League, Save the Bay Save the Bay, SPUR, and California Coastal Protection Network in support, if amended, to, prioritize nature based solutions. Thank you.
- Unidentified Speaker 013
Hello. Keeley Morris on behalf of the San Francisco Public Utilities Commission in support.
- Unidentified Speaker 016
Mister chairman, good afternoon all to see at the Port Of Los Angeles and Former Cali, PA secretary Terry Tammenon in strong support. Thank you.
- Kelly Seyarto
Legislator
So I'll be supporting your bill because this is you could take all these problems that are outlined here that we're trying to address here and put any agency in California at the top. They all have this problem, and I'm glad that people are starting to recognize that because they become obstruction agencies not work with and address in a responsible way agencies. And it's costing us a fortune.
- Kelly Seyarto
Legislator
And it's making projects that should have, you know, cost a million dollars, 5,000,000 by the time you get down to it, and then all the little damage that happens in between. So, you know, I'm I'm applaud your effort at at trying to do this for this one one part, But, I I hope we can keep this in mind when we're dealing with all the other parts of this system that we have created in California because it's affecting everything.
- Kelly Seyarto
Legislator
And and while this is, you know, a lot of lot of people on the coast are affected by this, a lot of us are affected by all the other agencies doing exactly exactly the same thing. So, anyway, happy to support you, Bill.
- Christopher Cabaldon
Legislator
Thanks, Mr. Sherriff, now that you've already previewed the outcome. I'm very excited to see this bill.
- Christopher Cabaldon
Legislator
And I mean, you know this is a challenging problem if this Assembly member has a bill creating a working group as opposed to just going right at the answer and it is, but it is fundamental and I actually am coming from local government where almost all processes lead up to one place And so a city council, you'll get a report from your fire department, hey, we want this we want this mitigation, and then the sewer department says, oh, that mitigation would, like, make it impossible for us to, you know, to widen the pipe, and then the parks department's got another thing, whatever.
- Christopher Cabaldon
Legislator
But it all flows to one place where you there's somebody to say, you know what, that one's not such a great one and maybe if we did your your second best one, we would get the best one over here, like how do we bring this together?
- Christopher Cabaldon
Legislator
And so it's it's not so much the agencies are out of control or they're doing the wrong thing. They're doing exactly what we told them to do, which is you are your charge is just no more turbidity in the water, period. Like, that's all you do and and, like, maximize on that. And that's not that that's not state agency fault. It's just the way we're organized.
- Christopher Cabaldon
Legislator
And so, you know, this to me, this is inspired probably not in reality, but inspired by President Obama's sustainable communities initiative, which is really, like, how do we how optimize for environmental protection, for public health and everything else by making sure that agencies are able to see each other and to align their mitigations, like not just collaborative group working groups, but align their actual requirements mitigation so that they can sometimes see that the very best Ocean Protection Council objective is if they just switch from the best one to the second best one that it would allow the water quality standards and the Coastal Commission standards and everything else to get mitigated appropriately.
- Christopher Cabaldon
Legislator
And so we need this is a I'm hopeful because these agencies already do have a record of at least communicating if not even if not always collaborating that this is going to be a template for how state government can get better at being able to make those end of the line decisions about what the right trade offs and the right balances and how to, in that balance, find even better environmental outcomes.
- Christopher Cabaldon
Legislator
And so very much support the bill, appreciate the author's attention to how we're gonna get there, but this is very urgent, and and necessary work and look forward to supporting it if the Chair says, he does as well.
- John Laird
Legislator
Yes. Yes. I'm obligated to agree with Senator Kibelman. But just we have had a series of of bills or laws that lead up to this. And and in Senate bill 1 by Senator Atkins, which is roughly five years ago now, set up collaboratives and money to deal with sea level rise planning.
- John Laird
Legislator
And I did February in '20, I think, 2024. And it basically says that BCDC and the Coastal Commission should each do, as part of the upgrades of their individual plans, sea level rise, and have it incorporated in. And so it it sort of focuses everything on that, but it doesn't work unless there's some sort of streamlining for some of the, projects that come out of that.
- John Laird
Legislator
And I know I spoke at a conference where somebody stood up and said, how is the state gonna pay for all this? And I sort of said, well, you don't have it right.
- John Laird
Legislator
It's like the state is not the only agency that will be dealing with sea level rise. It'll be local. It'll be private. Hopefully, at some point again, it'll be federal. And because that's the only way we're gonna be able to afford some of the things that that we have to do, and it's so important.
- John Laird
Legislator
I'm glad that people hear from the bay because it's so important to include the bay in this and and what is going on in different places. So I look forward to supporting the bill.
- Josh Becker
Legislator
Excellent. Well, my district is doubly impacted with both Open Coastline and and the and the bay to the east. And this is an issue. We're fortunate in San Mateo County. I have one shoreline.
- Josh Becker
Legislator
It's an example of a agency that was Kinda set up that's doing some of this coordination, but I certainly believe that we need, more coordination so we can get this, get all this whole process streamlined. I have an eye recommendation. Would you like to close?
- Buffy Wicks
Legislator
Thank you, Mister Chair for that. Thank you for the comments from everyone. Thank you for evoking my former, boss, president Obama, who, of course, I'm always inspired by. And also this work was also inspired by the select committee on, permitting reform, which I had last year, which really looked at, you know, resiliency, but also housing, transportation, basically anything we wanna do in the state.
- Buffy Wicks
Legislator
I think we have needs for permitting reform, because we just need government to work well for people and serve our needs, and I think this will help get us in the right direction there.
- Josh Becker
Legislator
Alright. Do a motion Senator Cabaldon. The motion is to pass as amended, and you confirm you're accepting the Yes. Amendments. Do you pass as amended to appropriations?
- Josh Becker
Legislator
You would join us. While we're doing that, I want to take a moment to thank our committee staff here. We've had a lot of very important difficult bills this year, and I wanna just take a moment while we get ready for, I believe, our last bill here today to thank our committee staff for all their work.
- Josh Becker
Legislator
So hopefully, we'll have a chance for a little formal applause at the end, but I just wanted to get that in now while we're all a lot of people are here.
- Marie Alvarado-Gil
Legislator
Go ahead. Thank you. Thank you, Mister Chair and members. I'm pleased to present AB 2716. I will start by accepting all of the committee's proposed and updated amendments and thank the Chair and his staff for their work on this bill.
- Marie Alvarado-Gil
Legislator
AB 2716 delivers the cleanup legislation that the governor called for when he signed AB 1167 in 02/2023. This is signing messaging is cautioned in increasing the financial assurances requirements for oil well transfers could cause more operators to to desert their wells. According to the committee's analysis, CalGEM processed an average of 3,500 wells per year. Since the passage of AB 1167, there has been fewer than five completed well transfers. As a result, there has been no decrease to the state's liability.
- Marie Alvarado-Gil
Legislator
AB 2716 strikes the right balance, giving oil and gas well operators a reasonable alternative and financial assurances that reducing the occurrence of orphaned wells and protecting California's environment and public health. Testifying with me today is Rock Zierman with the half on behalf of the bill sponsor and the California Independent Petroleum Association and Ben Turner representing the Signal Hill Petroleum.
- Rock Zierman
Person
Yeah. Rock Zierman with CIPA. Thank you to the Chair and and committee staff for working with us very hard on this bill. I just wanted to make a couple of short points. One is just to remind the committee that in California law, companies cannot remove themselves from the chain of title.
- Rock Zierman
Person
And so if a company sells assets, they are still responsible for the P and A-ing of those wells if the purchaser, were to disappear. So that's a protection that exists in in law. And the reason why it's been so dry out there as far as assets transferring is because under the current law, companies are essentially being asked to pay twice.
- Rock Zierman
Person
They have to put up cash to buy the the wells, put up cash for the future P and A-ing of those wells, and then actually p and a out of cash and with the hopes of getting reimbursed from CalGEM after they're completely out of business. And for that reason, that's what's dried up all of these transactions and not allowed healthier companies to transact assets from weaker companies.
- Ben Turner
Person
Good morning. I think it's still morning. Ben Turner from Axiom Advisors on behalf of the Signal Hill Petroleum Company. Signal Hill is a small and gas operator in Signal Hill that also does real estate and commercial development, including affordable housing. Signal Hill supports this bill because it provides the technical cleanup as the Assembly member mentioned to, AB 1167 with appropriate additional safeguards.
- Ben Turner
Person
So I I provided you all with, three different documents. One was the Department of Finance analysis, of, AB 1167 when it passed, which anticipated the problems that we have seen. The second document was the signing statement from Governor Newsom that also foreshadowed issues and suggested the legislature work with them to address those issues. And the final document is from the Board of Equalizations to counties talking about how the bill resulted in a diminution of the value of oil and gas assets.
- Ben Turner
Person
So this bill, now it basically just says in addition to increasing bonding obligations on on, operators, it says that only solvent, financially healthy oil and gas operators with idle well management plans can buy wells.
- Unidentified Speaker 055
So if you are a unhealthy operator with difficulty financing your operations, you will not be able to buy wells under this under this bill. So it gives you the original intent of AB 1167 by providing additional significant safeguards. So with that, I ask for your aye vote.
- John Laird
Legislator
Mister Chair and members, Paul Dierro representing the Western States Petroleum Association in Stuart.
- Christina Scaringe
Person
Good morning. Christina Scaringe with the Center for Biological Diversity opposing AB 2716, which would circumvent and make AB 1167 and AB 2461 irrelevant. The legislature passed AB 1167 for one clear reason, to protect taxpayers by requiring that buyers of oil wells secure full financial assurance so cleanup liabilities aren't offloaded to the public. Research shows that well transfers are increasingly high risk. Low value wells are more likely to be transferred and less likely to be promptly plugged.
- Christina Scaringe
Person
Industries claim it can sell high producing wells to pay for cleanup doesn't hold up to scrutiny. After four decades of production decline, there aren't enough left to pay the bill. When large companies buy many low producing wells, it's a red flag, not a solution. Without full financial assurance, there's absolutely no guarantee they'll cover the billions in cleanup we face. Industry claims AB 1167 froze the market.
- Christina Scaringe
Person
That's just not true. And an unchecked market for dangerous risky wells threatens our safety and our futures and our finances. The public has already borne hundreds of millions to clean up wells industry left behind. Current bonds cover less than 1% of actual costs. Using public funds to plug wells is unsustainable and unfair.
- Christina Scaringe
Person
Californians can't afford it. This is the industry's responsibility, but this this bill makes it easier for companies to escape accountability. The bill opens sweeping loopholes the industry will exploit. Self insurance, corporate guarantees, vague claims of solid finances won't protect taxpayers when a company goes bust. Cleanup costs are systemically underestimated, and financial reporting obscures those liabilities.
- Christina Scaringe
Person
AB 1167 purposefully excluded these mechanisms because they were worthless when the coal industry's biggest players went bankrupt and dumped billions in liabilities on taxpayers. It is inexcusable to repeat this mistake by weakening the law just as companies are exiting the market, exposing Californians to an entirely foreseeable multibillion dollar fiscal risk and ongoing health and climate harms. We urge you no vote.
- Paasha Mahdavi
Person
Good morning. My name is Paasha Mahdavi. I am an Associate Professor of Energy Politics at UC Santa Barbara. My research and advising for the past twenty years is focused on oil and gas policy here in California and around the world. I'm here in opposition to 2716.
- Paasha Mahdavi
Person
This bill would gut crucial requirements for the transfer of oil and gas wells at a moment when protections against damages from deserted oil and gas wells need to be strengthened, not watered down. More than 2.7 million Californians live in proximity to a well. Failure to properly decommission these wells when they reach the end of their economic life would be detrimental to these communities as scores of research studies have shown the benefits of decommissioning in what's called a restoration economy.
- Paasha Mahdavi
Person
If passed, 2716 will foster a roadblock for remediation, providing a hazard for farmers and urban dwellers alike. AB 2716 exempts operators from full bonding requirements if they get much lower additional bonding, no matter how small the incremental increase.
- Paasha Mahdavi
Person
The bill also removes bonding requirements and instead allows riskier financial instruments like self insurance and guarantees. My research team directly surveyed people in California living in proximity to oil and gas wells to gauge what the public in oil communities thinks. We found that 68.9% of residents want oil companies to pay for well cleanup, including 61.1% in Kern and 73% in Los Angeles Counties, and 91% support well plug in when presented as a job creation program for impacted oil workers.
- Paasha Mahdavi
Person
On a final note, there is no market failure here that necessitates weakening of existing regulation. AB 1167 has not frozen the market for well transfers.
- Paasha Mahdavi
Person
These are still happening, but with added protections that have resulted in millions more in reliable bonding, notably an 11% increase in the value of bonds in 2025 compared to 2024. Financial assurance requirements for transfers are not unusual. And with those points in mind, I respectfully ask the committee to vote nay.
- Zoe Jonick
Person
Zoe Jonick on behalf of 350 Bay Area Action as well as Protect Monterey County, 350 South Bay Los Angeles, 350 Humboldt County, San Diego 350 and Climate Health Now in opposition.
- Vanessa Flores
Person
Vanessa Flores on behalf of Clean and Healthy California in opposition.
- Jim Lindbergh
Person
Jim Lindbergh, Friends Committee on Legislation of California opposed. Thank you.
- Jason Pfeifle
Person
Jason Pfeifle here voicing opposition on behalf of Center on Race, Poverty, Environment, California Environmental Justice Alliance, Food and Water Watch, Clean Water Action, Physicians for Social Responsibility Los Angeles, San Francisco Baykeeper, Stand LA, and Climate First: Replacing Oil & Gas. Thank you.
- Ruth McDonald
Person
Ruth McDonald with Climate Action California in opposition. Thank you.
- Paul Yoder
Person
Mister Chair members, Paul Yoder. I'm sorry I didn't get up here sooner. Kern County is a support if amended position on this bill. I thank the author. We've been working with her office to try to limit what would otherwise be the local cost exposure from the bill and look forward to working with them more on that.
- Josh Becker
Legislator
Okay. Okay. We're gonna take it back to the committee. Senator Stern?
- Henry Stern
Legislator
Yeah. Thank you, Mister Chair. Very tough tough topic, and, yeah, it's a complicated puzzle. It was interesting to me. I wanted to appreciate in the the opposition's testimony that the goal here around making sure that we don't get stuck with the bill on wells, that get left behind and that we have the financial assurance to deal with this risk, I think that's, that's gotta remain sort of our North Star.
- Henry Stern
Legislator
In LA, it's easier said than done. We can try to zone we've been working on zoning, planning, both countywide, citywide, amortization schedules. The fact is that because of a flaw in the law from back in '94, when then, I think it was Senator Jim Costa exempted all title and like, all responsibility for wells owned before a certain date. So in other words, oil majors got out of their liabilities in this state and put it all on the independence forevermore.
- Henry Stern
Legislator
And and so, therefore, when we're looking at what the transition actually looks like, bankruptcy is a is a real risk, and it's a it's not something it's a it's a very expensive solution. And so, you know, what I'm interested in in this bill is just the the guts of the financials. So the the question was raised about self insurance and sort of the flaws or the the the criticisms of that.
- Henry Stern
Legislator
Can can you just can the author or or witnesses, whoever wants to talk about it, just get into that a little bit more? What what what confidence should we have that that without this sort of double bonding requirement, if you will, not just for your own, but for the what you're saying is that you've served bond for the next one too.
- Henry Stern
Legislator
Given the criticism, just do you have a response on that? You know, just yeah. If you may.
- Unidentified Speaker 008
So if you just look at how it works today, companies are responsible for their own assets. If they disappear, you go back in the chain of title. We've had operators receive multimillion dollar bills from CalGEM for the plugging and banding of orphan wells. In addition to that, we are we have about a $100,000,000 orphan well funds from various sources.
- Unidentified Speaker 008
Most of the funds come from industry fees, and CalGEM has the power at any time to increase the assessment that we pay to cover any discrepancy, any hole in their plugging of of orphan and idle wells.
- Unidentified Speaker 008
Does not touch that discretion. Right. So that that's the paradigm that exists, is not affected by this bill.
- Unidentified Speaker 008
What this bill pertains to is inside that construct of people taking care of their own assets is you're gonna have an influx of well capitalized companies purchasing wells for the purpose of bringing them their production up, right, which is the goal of the state right now and creating revenue that they are then obligated because they have to have an idle well management plan, and they have to have additional assurance under 1057, they're gonna utilize that increased revenue to P and A their own assets.
- Unidentified Speaker 008
And so there have been no transactions in the past two years.
- Henry Stern
Legislator
Are they required to do that by law, or do you just think they will?
- Unidentified Speaker 008
They are required by law to have, to have an idle well management plan. They're required to have bonding. And as you know, this bill is increasing the maximum bonding from 30 million to $80 million. That's another aspect of this bill that's happening, that is changing.
- Unidentified Speaker 008
So they are required under law to have those compliance mechanisms.
- Henry Stern
Legislator
Last question, and then I'll just coming back to the opposition then, can you just what are the the what are the central concerns about the idle well management plan being the sort of hook here? They're saying you you you guys you all agree that that's still the sort of precondition, but is it that you don't think that's gonna be sufficient that that doesn't have enough teeth? I'm I'm just curious on on.
- Unidentified Speaker
Well, there's so much to respond to what he just said, but I'll stick with the idle well management plan for now. They can cancel their idle well management plan and just pay fees. Right? And there is a, you know, a mixed result of compliance with that. However, the important thing is the market is not what they're describing.
- Unidentified Speaker
It is not well resourced operators buying. What we're seeing in the market. It's not well resourced operators buying from.
- Unidentified Speaker
It's the flip of that. It's offloading liabilities. These companies have a fiduciary duty to their shareholders to clear their balance sheets, And that's what we saw with Occidental and CRC. They're offloading their liabilities. And that's that's what we're seeing.
- Unidentified Speaker
And that's why research shows that every transfer now increases the risk to California. And that count that risk is near term, so that's another thing in the bill. There's a five year delay on on these and these are caps. CalGEM can't go over those caps.
- Henry Stern
Legislator
But do you but do you all disagree like, her point about the idle well management piece, can you just pay your way out of this bill with the fees, or would that actually deny you access to this this framework?
- Unidentified Speaker 017
So the the bill does it it basically says, if you don't have additional security under the, Limon program with the that has a a new cap of 80,000,000 instead of, 30,000,000 and an idle well management plan, then you can't buy a buy a well. So so if and then and then if you.
- Henry Stern
Legislator
Can you cancel that plan as they're saying? Does that then is that?
- Henry Stern
Legislator
That was that was thank you, Mister, for that clarification. Sorry to cut you all off. I don't wanna belabor the committee. No worries. That was my main concern.
- Henry Stern
Legislator
It's that, you know okay. Those are and you're. Sorry, are you accepting those amendments?
- Henry Stern
Legislator
Let's just say to be continued to further this conversation today. I'll be making a high vote today.
- John Laird
Legislator
Thank you, Mister Chair. We had the first half of the discussion under the Hart bill earlier in the hearing, and I mentioned floor managing the Carrillo bill, and the real goal was to cut off state exposure for the orphan wells, which really was rather broad and and really was the state did not have the resources to deal with it. And there were a couple of provisions here. And I think this might be what Senator Stern was starting to get at.
- John Laird
Legislator
But the Carrillo bill, it actually didn't allow self insurance so that that liability didn't go to the state, and this bill seems to allow self insurance in certain cases.
- John Laird
Legislator
And there was a Limon bill that dealt with additional financial surety, that was required in it. It seems like that might be a little weakened by this. And so my question would be, how are the provisions of this bill not returning us to some of the liability that we had on on abandoned or orphaned wells that we had before the Carrillo bill and the Limon bill. Right.
- Unidentified Speaker 008
So the provisions of this bill require, number one, to be compliant with AB 1057, the loan bill on additional assurance. So that's not something that was in around when the Carrillo bill was passed. And it also requires obligations to have and be compliant with the idle well management plan. And so those are some provisions that exist now that didn't exist when the Carrillo bill was being considered.
- Unidentified Speaker 008
And the bottom line is since that bill passed, there have been no transactions for wells that are under the purview of the bill.
- Unidentified Speaker 008
That is less than 15 barrels a day and a a transfer of the operator of record. So there hasn't been any additional assurance coverage to the state. All that has happened is assets have remained with whoever owned them two years ago when the Carrillo bill was passed. Nobody has entered the chain of title.
- Unidentified Speaker 008
No additional resources, assurance, bonding has come to fruition, and we feel that this bill will result in additional companies coming online, getting in the chain of title, becoming responsible, not relieving others because, contrary to what was said earlier, you cannot get rid of your liability.
- John Laird
Legislator
You're contending that this will bring people in that that aren't in, but in the course of that, is there some vulnerability of the state, because these provisions are somewhat relaxing two of the other bills? That's what I'm trying to get at.
- Unidentified Speaker 009
So this bill does not relax the prior the the prior it relaxes AB 1167 by providing a feasible compliance pathway. Under AB 1057 by then Assemblymember Limon, that that authorized CalGEM to, secure additional security from operators based on the risk of those operators. So CalGEM was, like, kind of ad hoc deciding who to require additional security of. Under this bill, you can't buy a well unless you go to CalGEM and say, hey.
- Unidentified Speaker 017
Hey. Look at look at my, my finances. Look at my liquidity. Look at my net profitability. And then here's my idle my idle well management plan.
- Unidentified Speaker 017
I'm good for this. So I'm gonna buy I'm now able to buy wells off somebody else. And keep in mind, that person that sells me the wells maintains liability. So if you're an oil gas operator, I'm an oil gas operator. If I sell you a well, you're liable and I'm liable.
- Unidentified Speaker 017
But before you can even buy it, you have to have an idle well management plan and you have to have additional security approved by CalGEM. And then you have to report every year on on your on your finances to CalGEM. And if you and if you don't, then then you can lose your ability to.
- John Laird
Legislator
In other hearings, we've had in everything in the last couple of days. Where everybody explains in detail what it does, but I'm looking for the assurance that that level of detail doesn't open up the state to risk that it wouldn't have otherwise.
- Unidentified Speaker 017
This will increase, it will measurably increase the amount of financial assurance available to the state. Increase. Because people will go get the financial assurances under the PRC thirty two zero five point eight by Limon so that they can buy wells. If you don't go get that assurance, you can't buy wells.
- John Laird
Legislator
Well and and then the assumption is is therefore, there's more defense of the state by them coming on and
- Unidentified Speaker 017
That's correct. It directs people to go get additional securities.
- John Laird
Legislator
I am never thrilled about double linking bills. That is like a recipe for jumping off of the top of the dome. But because I think when we passed the Hart bill out, or at least it's still on call, there was strong support for that, but it's linked to this. And so that's just what it is. Thank you, Mister Chair.
- Josh Becker
Legislator
Okay. And you confirm you're taking the amendments. You know, it is important to remember the underlying issue is protecting the state's taxpayers from what may be multiple billions of dollars of liability for orphan wells. And, collectively, the oil industry had to externalize cost to the state and ultimately the state taxpayers to pay for the cleanup.
- Josh Becker
Legislator
I do feel that in this bill, especially with the amendments on the self insurance piece, For example, the division may only improve self insurance in some including the risk associated with operators potential for desertion of its wells or where wells are low.
- Josh Becker
Legislator
So there's a threshold in there for self insurance for in yeah. Yeah. Yeah. So there's a number of pieces in there. We you've already had the discussion.
- Josh Becker
Legislator
There is contingent enactment as discussed, and there are areas where the two bills do differ. So you ultimately are gonna have to sit down and figure out some of those remaining pieces. And, you know, we had robust discussion too in the, among the staff team and, you know, ultimately, you know, were they is there something we're missing here? And if so, you know, we're gonna have to come back and I think we will have authors wanna come back and and fix these things.
- Josh Becker
Legislator
I have an aye recommendation. Do we have a motion? Senator Stern moves. The motion oh, we do have to close.
- Unidentified Speaker 010
No. I just respectfully ask your aye vote and you have my commitment to continue working on this bill with the sponsors and community members.
- Josh Becker
Legislator
Excellent. That's gonna be important. Thank you. Do pass motion from the return do pass as amended to appropriations.
- Josh Becker
Legislator
Alright. 50 on call. Alright. We're gonna quickly go through. Can I yeah?
- Josh Becker
Legislator
We need you here. I'm gonna quickly go through the role. I'd like to take this moment again to thank our can we have a a round of applause for our committee staff here with the tremendous work that they've done this session on a lot of complicated topics. Thank you. Alright.
- Josh Becker
Legislator
Consent calendar. Yes. Okay. Alright. So let's move forward here. Start with file item one. Alright. Following one, do pass as amended to appropriations?
- Josh Becker
Legislator
We're done. Alright. Thanks again to our wonderful committee staff. Thanks everyone who participated. We are adjourned.