The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report (EIR) on a project that it proposes to carry out or approve that may have a significant effect on the environment or to adopt a negative declaration if it finds that the project will not have that effect. CEQA also requires a lead agency to prepare a mitigated negative declaration for a project that may have a significant effect on the environment if revisions in the project would avoid or mitigate that effect and there is no substantial evidence that the project, as revised, would have a significant effect on the environment. CEQA provides that when an EIR has been prepared for a project, no subsequent or supplemental EIR shall be required by a lead agency or responsible agency, unless specified events occur. This bill would require a lead agency, before issuing the initial discretionary approval for a large-volume bulk coal facility, defined as a facility with a design capacity exceeding 5,000,000 short tons per year of coal handling, storage, or export to prepare or cause to be prepared an EIR. The bill would prohibit a lead agency, air pollution control district, or air quality management district from relying on an existing EIR to issue a discretionary approval for, or to, a large-volume bulk coal facility, and would require a subsequent or new EIR to be prepared, if any of a list of specified conditions are met, including that there is an increase in design capacity of a project that did not previously meet the definition of a large-volume bulk coal facility, as provided; there is a change in the type of coal handled, stored, or exported, or the EIR did not explicitly address the type of coal handled, stored, or exported; or there is a significant increase in the quantity of coal handled, stored, or exported, or the EIR did not explicitly disclose the quantity of coal to be handled, stored, or exported. The bill would require an EIR or subsequent EIR prepared pursuant to these provisions to, among other things, evaluate the large-volume bulk coal facility's potential to generate PM2.5 and PM10 fugitive dust emissions during construction and operations, and to require mitigation measures, as provided. The bill would apply these provisions to a discretionary approval that is pending or made after June 4, 2026, as specified. Because the bill would create new duties for a lead agency, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
(1) Existing law creates the California Coastal Sanctuary and provides that it includes all state waters subject to tidal influence, except as provided. Existing law authorizes the State Lands Commission to enter into any lease for the extraction of oil or gas from state-owned tidelands and submerged lands in the California Coastal Sanctuary if the commission determines both that oil and gas deposits in the California Coastal Sanctuary are being drained by means of producing wells upon adjacent federal lands and that the lease is in the best interest of the state. This bill would prohibit the commission from entering into leases for the extraction of oil or gas, as described above, in areas designated as California marine protected areas or national marine sanctuaries, as provided. (2) Existing law prohibits the commission or a local trustee, as defined, of granted public trust lands from entering into a new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, except as provided. Existing law requires the commission or a local trustee when approving or disapproving a lease renewal, extension, amendment, or modification authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to follow a specified process. This bill would additionally prohibit leases and oil- and gas-related infrastructure located upon tidelands and submerged lands within state waters from being used to support Pacific Outer Continental Shelf leases issued after January 1, 2026, except as provided. The bill would additionally require the commission or the local trustee, in considering approval or disapproval, to consider additional factors, as specified. By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, or modification, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law authorizes the Geologic Energy Management Division in the Department of Conservation to require an operator of an oil and gas well to provide, in addition to specified types of required indemnity bonds, an additional amount of security acceptable to the division based on the division's evaluation of the risk that the operator will desert its well or wells and the potential threats the operator's well or wells pose to life, health, property, and natural resources, as provided. Existing law requires the division to consider specified factors in evaluating the risks that the operator will desert its well or wells and the potential threats the operator's well or wells pose to life, health, property, and natural resources. Existing law prohibits this additional security from exceeding the lesser of the division's estimation of the reasonable costs of properly plugging and abandoning all of the operator's wells and decommissioning any attendant production facilities, or $30,000,000. A person who violates or fails to comply with this provision, or any related law concerning oil and gas, is guilty of a crime. This bill would instead prohibit this additional security from exceeding the lesser of the division's estimation of the reasonable costs of properly plugging and abandoning all of the operator's wells and decommissioning any attendant production facilities, or a maximum amount of additional security based on the total number of active and idle wells under the control of the operator pursuant to a specified schedule, as provided. The bill would prohibit the division from increasing the amount of additional security required of an operator that had an additional security agreement approved by the division as of January 1, 2027, until 3 years after the effective date of the agreement, as provided. The bill would explicitly extend these additional security requirements to a person who acquires the right to operate or control a well or production facility, as provided. The bill would establish that compliance with these additional security requirements by either the operator of record or the person who acquires the right to operate or control a well or production facility constitutes compliance for both parties, and would prohibit the division from requiring duplicative security, as provided. Existing law authorizes the above-described additional amount of security to be an indemnity bond, specified forms of deposit, or any other means of equally effective financial assurance approved by the division, including a demonstration of self-insurance pursuant to a specified process. This bill would, as a condition of obtaining division approval of self-insurance or a corporate guarantee, require an additional security agreement between the operator and the division that includes, among other things, an enforceable schedule for the plugging and abandonment of wells and decommissioning of production facilities consistent with an operator's idle well management plan, as provided. The bill would also require the operator, as part of that additional security agreement, to immediately notify the division if the operator is unable to satisfy the financial criteria, and would make a failure to make this notification a violation subject to civil and criminal penalties, as provided. By expanding the scope of a crime, the bill would impose a state-mandated local program. The bill would also require the division to reevaluate whether self-insurance or a corporate guarantee continues to constitute an equally effective means of financial assurance at least once every 3 years, or upon a material change in the financial condition of the operator or guarantor entity, whichever occurs first. The bill would require an operator approved for self-insurance or a corporate guarantee who the supervisor subsequently determines to be out of compliance with an approved idle well management plan, or specified operators out of compliance with idle well fee requirements, to provide other financial assurance within 90 days of that determination, as provided. Existing law also requires a person who acquires the right to operate a well or production facility to file with the State Oil and Gas Supervisor an individual indemnity bond or a blanket indemnity bond in an amount determined by the supervisor to be sufficient to cover, in full, all costs of plugging and abandonment, decommissioning the facility, and site restoration, as provided. Under existing law, an operator may, in lieu of this bonding requirement and with the written approval of the supervisor, provide the required security through an equally effective means of financial assurance, including specified types of deposits, an irrevocable letter of credit, or a fully funded trust fund, and excluding self-insurance or corporate guarantees, as provided. This bill would repeal the exclusion of self-insurance or corporate guarantee, as described above. The bill would additionally authorize an operator to, in lieu of the bonding requirement and with the written approval of the supervisor, provide the required security through specified means of financial assurance, including pursuant to the above-described process for obtaining division approval for self-insurance or a corporate guarantee applicable to existing operators, as provided. Existing law authorizes the supervisor or a district deputy to order the plugging and abandonment of a well or the decommissioning of a production facility that has been deserted. If the supervisor determines that the current operator, as determined by the records of the supervisor, does not have the financial resources to fully cover that cost of plugging and abandonment of the well or the decommissioning of a production facility that has been deserted, existing law makes immediately preceding operators responsible for that cost. Existing law authorizes the supervisor to continue to look seriatim to previous operators until an operator is found with sufficient financial resources to cover the cost, except as provided. This bill would exempt from the above-described requirement to file with the supervisor, upon acquiring the right to operate a well or production facility, an individual indemnity bond or a blanket indemnity bond sufficient to cover all costs of plugging and abandonment, decommissioning the facility, and site restoration, (1) an operator, or a person who acquires the right to operate or control a well or production facility, who has complied with an idle well management plan or fee schedule, and specified reporting requirements, as provided, if the operator of record has obtained and maintained additional security approved by the division, as provided, and (2) a person who has acquired the rights to a well or production facility for the sole purpose of plugging and abandoning that well or decommissioning the production facility for purposes of redevelopment, as defined, or to satisfy the above-described obligations of previous operators, as provided. The bill would explicitly state that a person who has acquired the rights to a well or production facility for the sole purpose of plugging and abandoning that well or decommissioning the production facility for the purposes of redevelopment or to satisfy the obligations of previous operators is subject to the state oil and gas laws as an operator, until a determination by the supervisor that the well has been properly plugged and abandoned or the production facilities have been decommissioned, or that additional work related to abandoning the well is not practical or would pose greater environmental or safety risk, as provided. Upon this determination by the supervisor, the bill would require the supervisor to release the bond, and would release the acquiring person from any further obligation or liability for the well or facility. The bill would require a person who, before an acquisition for the sole purpose of plugging and abandoning the well or decommissioning the production facility, was responsible as an owner or operator of the well or production facility and subject to orders related to remediation issued by the supervisor to remain responsible for the well or production facility and any unfunded costs associated with plugging and abandonment of the well or decommissioning of the facility, as provided. The bill would prohibit the use of a well or production facility acquired for the sole purpose of plugging and abandoning the well or decommissioning the production facility from being used for oil or gas production, injection, gas storage, or any associated operation. By creating a new crime, the bill would impose a state-mandated local program. This bill would require a person acquiring the rights to a well or production facility for the sole purpose of plugging and abandoning that well or decommissioning the production facility for the purpose of redevelopment, before completing the acquisition, to submit to the supervisor a declaration, under penalty of perjury, that the acquisition is for the sole purpose of plugging and abandoning the well or decommissioning the production facility for the purpose of redevelopment, a description of the redevelopment plan, and a plugging and abandoning work plan, as provided. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would require an acquiring person who submits the declaration to commence plugging and abandonment or decommissioning operations within 24 months of the date of acquisition, and would authorize the supervisor to grant a 12-month extension, as provided. The bill would require the supervisor to require an acquiring person who fails to commence operations within this time period to file financial assurance, as provided. The bill would require a person acquiring the rights to a well or production facility pursuant to these provisions to provide annual updates on the plugging and abandonment work plan. If the supervisor determines that the acquiring person is not capable of plugging the wells within these timeframes, the bill would require the acquiring person to post specified financial assurance and would require the supervisor to notify the previous operator who is responsible for the plugging and abandonment. The bill would establish that no more than 100 wells or associated production facilities may be included, on an annual basis, in this alternative financial security program, as provided. This bill would, on and after January 1, 2028, and quarterly thereafter, require the division to post on its internet website specified information related to well transfers, wells and production facilities acquired for the sole purpose of plugging and abandoning or decommissioning, and a description of wells located in or within one mile of a disadvantaged community. The bill would require the supervisor and Director of Conservation to annually attend specified legislative hearings to report on well transfer activity, implementation and status of financial assurance for indemnification, and the above-described provisions related to redevelopment of oil and gas wells, and would require the division, on or before January 1, 2032, to prepare and submit a related report to the relevant legislative policy and budget committees in both houses of the Legislature, as provided. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. This bill would make the operation of its provisions contingent upon the enactment of AB 2461 of the 2025–26 Regular Session.
This measure would request that the federal Bureau of Ocean Energy Management hold public hearings in California on the proposed 2026–2031 National Outer Continental Shelf Oil and Gas Leasing Program, prepare an environmental impact statement to accompany the program, and provide the public the opportunity to comment on a draft programmatic environmental impact statement for potential offshore oil and gas leasing in California. The measure would strongly and unequivocally oppose any new offshore drilling and declare unequivocal support for the current federal prohibition on new oil or gas drilling in federal waters offshore of the Pacific coast.
The Elder California Pipeline Safety Act of 1981 requires the State Fire Marshal to administer provisions regulating the inspection of intrastate pipelines that transport hazardous liquids. The act requires the State Fire Marshal to adopt hazardous liquid pipeline safety regulations in compliance with the federal law relating to hazardous liquid pipeline safety, as provided. The act authorizes the State Fire Marshal to exempt the application of those regulations to any pipeline, or portion thereof, when it is determined that the risk to public safety is slight and the probability of injury or damage remote. The act requires any new or replacement pipeline near environmentally and ecologically sensitive areas in the coastal zone to use best available technology based on a risk analysis conducted by the operator to reduce the amount of oil released in an oil spill to protect state waters and wildlife. A person who willfully and knowingly violates the act or a regulation issued pursuant to the act is, upon conviction, subject to a fine, imprisonment, or both a fine and imprisonment, as provided. This bill would make an application for a specified exemption pursuant to these provisions subject to a 60-day public comment period and, upon request of any interested person, require it to be considered at a public hearing. The bill would make a project that has received an exemption from the State Fire Marshal, as described above, subject to the California Environmental Quality Act. The bill would make any repaired pipeline near environmentally and ecologically sensitive areas in the coastal zone subject to the requirement to use best available technology based on a risk analysis conducted by an independent expert, rather than the operator, and require that analysis to address prevention, as well as reduction, of the amount of oil released in an oil spill, as described above, and make related changes. The bill would prohibit idled, inactive, or out-of-service hazardous liquid pipelines under the jurisdiction of the State Fire Marshal that have experienced a reportable incident, such as a hazardous liquid spill, from being reactivated or operated, unless specified conditions are met. The bill would require, for any idled, inactive, or out-of-service pipeline that has spilled 10,000 gallons or more of hazardous liquid, the operator to permanently abandon the pipeline by July 1, 2027, or within 6 months of the pipeline's most recent incident, and require the operator to restore the site to its natural condition no later than one year following permanent abandonment. By creating new crimes, the bill would impose a state-mandated local program. This bill would require the State Fire Marshal to require permanent abandonment of a pipeline if the best available technology is not achievable for a pipeline because of operational aspects, pipeline or regional conditions, or other factors. The bill would require the State Fire Marshal to suspend the operations of any pipeline that is not in compliance with the requirements to use best available technology no later than January 1, 2027. Existing law establishes the Geologic Energy Management Division in the Department of Conservation, under the direction of the State Oil and Gas Supervisor, who is required to supervise the drilling, operation, maintenance, and abandonment of oil and gas wells, as provided. A person who violates, fails, neglects, or refuses to comply with the oil and gas laws, or who fails, neglects, or refuses to furnish any report or record required pursuant to those laws, is guilty of a crime. This bill would require an operator seeking approval for a new well, production facility, or specified pipelines in the coastal zone to submit an oil leak detection and response plan, as specified, and obtain approval from the division before obtaining approval for the new well, production facility, or specified pipeline. By creating new crimes, the bill would impose a state-mandated local program. Existing law authorizes the Department of Parks and Recreation to grant permits and easements to an oil and gas lessee of the state for pipeline right-of-way purposes. This bill would prohibit any intrastate oil pipeline that has spilled 10,000 gallons or more of oil cumulatively since its construction from operating within 0.5 miles of a state park, a designated ecological reserve, as defined, or a wildlife area, as determined by the Fish and Game Commission. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.
