Today's Law As Amended


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SB-47 Oil and gas: hazardous and idle-deserted wells and production facilities: expenditure limitations: updated reports.(2021-2022)



As Amends the Law Today


SECTION 1.

 Section 3258 of the Public Resources Code is amended to read:

3258.
 (a) The division shall not make expenditures from the Oil, Gas, and Geothermal Administrative Fund  pursuant to this article that exceed in any one fiscal year:
(1) Three million dollars ($3,000,000) ($3,000,000),  commencing on July 1, 2018, for the 2018–19 fiscal year, and continuing for three fiscal years thereafter.
(2) One Five  million dollars ($1,000,000), ($5,000,000),  commencing with the 2022–23 fiscal year. year, and continuing thereafter. 
(b) The expenditure limits of subdivision (a) also apply to expenditures by the division from the Oil, Gas, and Geothermal Administrative Fund pursuant to Section 3226, unless the division obtains a lien against real or personal property of the operator. If the division obtains a lien against real or personal property of greater value than the amount of the expenditure, then the amount of the expenditure shall not count against the expenditure limit of subdivision (a). If the division obtains a lien against real or personal property of lesser value than the amount of the expenditure, then only the difference between the amount of the expenditure and the value of the property counts against the expenditure limit of subdivision (a).
(b) (c)  Moneys expended pursuant to this article shall be used exclusively for plugging and abandoning hazardous or idle-deserted wells and  wells,  decommissioning hazardous or deserted facilities and shall not be used for nonwell or nonproduction facility-related activities and payments. facilities, or otherwise remediating well sites of hazardous or idle-deserted wells. 
(c) (d)  The division shall develop criteria for determining the priority of plugging and abandoning hazardous or idle-deserted wells and decommissioning hazardous or deserted facilities to be remediated pursuant to this article.  article and performing work pursuant to Section 3226.  The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) does not apply to the development of criteria by the division pursuant to this subdivision.
(d) (e)  (1) (A) On April 1, 2021, the department shall report to the Legislature on the number of hazardous wells, idle-deserted wells, deserted facilities, and hazardous facilities remaining, the estimated costs of abandoning and decommissioning those wells and facilities, and a timeline for future abandonment and decommissioning of those wells and facilities with a specific schedule of goals.
(B) As part of the report required in subparagraph (A), the department shall provide recommendations to the Legislature for improving and optimizing the involvement of local agencies in the process of plugging and abandoning wells and decommissioning facilities. In drafting these recommendations, the department shall consider factors unique to each of the division’s districts, and shall consult with local agencies in developing recommendations.
(C) In collecting the information for the report required in subparagraph (A), the division shall conduct field inspections of hazardous wells, idle-deserted wells, deserted facilities, and hazardous facilities and include information in the report from the field inspections that can be used to prioritize those wells and facilities in the specific schedule of goals.
(2) On October 1, 2023, and annually thereafter,  the department shall provide to the Legislature an update on the report required in paragraph (1) that describes the total costs, average costs per well and facility, the number of wells plugged and abandoned, the number of facilities decommissioned, the total number of projects completed, and any additional wells and facilities identified by the department requiring abandonment or decommissioning.
(3) The report and update to the report required to be submitted under this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
(4) The requirement for submitting a report imposed under this subdivision is inoperative on October 1, 2027, pursuant to Section 10231.5 of the Government Code.

SEC. 1.5.

 Section 3258 of the Public Resources Code is amended to read:

3258.
 (a) The division shall not make expenditures from the Oil, Gas, and Geothermal Administrative Fund  pursuant to this article that exceed in any one fiscal year:
(1) Three million dollars ($3,000,000) ($3,000,000),  commencing on July 1, 2018, for the 2018–19 fiscal year, and continuing for three fiscal years thereafter.
(2) One Five  million dollars ($1,000,000), ($5,000,000),  commencing with the 2022–23 fiscal year. year, and continuing thereafter. 
(b) The expenditure limits of subdivision (a) also apply to expenditures by the division from the Oil, Gas, and Geothermal Administrative Fund pursuant to Section 3226, unless the division obtains a lien against real or personal property of the operator. If the division obtains a lien against real or personal property of greater value than the amount of the expenditure, then the amount of the expenditure shall not count against the expenditure limit of subdivision (a). If the division obtains a lien against real or personal property of lesser value than the amount of the expenditure, then only the difference between the amount of the expenditure and the value of the property counts against the expenditure limit of subdivision (a).
(b) (c)  Moneys expended pursuant to this article shall be used exclusively for plugging and abandoning hazardous or idle-deserted wells and  wells,  decommissioning hazardous or deserted facilities and shall not be used for nonwell or nonproduction facility-related activities and payments. facilities, or otherwise remediating well sites of hazardous or idle-deserted wells. 
(c) (d)  The division shall develop criteria for determining the priority of plugging and abandoning hazardous or idle-deserted wells and decommissioning hazardous or deserted facilities to be remediated pursuant to this article. The  article and performing work pursuant to Section 3226. The criteria shall consider the information required to be reported pursuant to subdivision (d). The  Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) does not apply to the development of criteria by the division pursuant to this subdivision.
(d) (e)  (1) (A) On April 1, 2021, the department shall report to the Legislature on the number of hazardous wells, idle-deserted wells, deserted facilities, and hazardous facilities remaining, the estimated costs of abandoning and decommissioning those wells and facilities, and a timeline for future abandonment and decommissioning of those wells and facilities with a specific schedule of goals. By April 1, 2022, the department shall report to the Legislature the location of the applicable wells and facilities, including the county in which they are located, if the information is not otherwise included in the April 1, 2021, report described in this paragraph. 
(B) As part of the report required in subparagraph (A), the department shall provide recommendations to the Legislature for improving and optimizing the involvement of local agencies in the process of plugging and abandoning wells and decommissioning facilities. In drafting these recommendations, the department shall consider factors unique to each of the division’s districts, and shall consult with local agencies in developing recommendations.
(C) In collecting the information for the report required in subparagraph (A), the division shall conduct field inspections of hazardous wells, idle-deserted wells, deserted facilities, and hazardous facilities and include information in the report from the field inspections that can be used to prioritize those wells and facilities in the specific schedule of goals.
(2) On October 1, 2023, and annually thereafter,  the department shall provide to the Legislature an update on the report required in paragraph (1) that describes the total costs, average costs per well and facility, the number of wells plugged and abandoned, the number of facilities decommissioned, the total number of projects completed, and any additional wells and facilities identified by the department requiring abandonment or decommissioning. The update shall include the location, including the county, of applicable wells, facilities, and projects identified in the report. 
(3) The report and update to the report required to be submitted under this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
(4) The requirement for submitting a report imposed under this subdivision is inoperative on October 1, 2027, pursuant to Section 10231.5 of the Government Code.
SEC. 2.
 Section 1.5 of this bill incorporates amendments to Section 3258 of the Public Resources Code proposed by both this bill and Senate Bill 84. That section of this bill shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2022, (2) each bill amends Section 3258 of the Public Resources Code, and (3) this bill is enacted after Senate Bill 84, in which case Section 1 of this bill shall not become operative.