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AB-3217 Greenhouse gases: crude oil emissions.(2019-2020)

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Date Published: 02/21/2020 09:00 PM
AB3217:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 3217


Introduced by Assembly Member Gloria

February 21, 2020


An act to add Section 39735 to the Health and Safety Code, relating to greenhouse gases.


LEGISLATIVE COUNSEL'S DIGEST


AB 3217, as introduced, Gloria. Greenhouse gases: crude oil emissions.
Existing law establishes the State Air Resources Board as the state agency charged with monitoring and regulating sources of greenhouse gas emissions. Existing law requires the board to make available, and update at least annually, on its internet website the emissions of greenhouse gases, criteria pollutants, and toxic air contaminants for certain facilities in the state, and to annually present an informational report to a specific legislative committee on the reported emissions of greenhouse gases, criteria pollutants, and toxic air contaminants from certain energy and industry sectors, as prescribed.
This bill would require, no later than December 31, 2023, the state board, in cooperation with the Geologic Energy Management Division in the Department of Conservation and the State Energy Resources Conservation and Development Commission, to complete and publish an analysis of the life-cycle greenhouse gas emissions associated with crude oil produced in the state, as prescribed. The bill would require the state board to make a draft of the completed analysis and all supporting data, as specified, available for public comment.
The bill would require, on or before January 1, 2021, and annually thereafter, that all operators that have received authorization from the Geologic Energy Management Division to drill, redrill, deepen, or rework a crude oil production well within the state, where the well remains in operation, to deliver to the state board a multicut assay, as defined, for each oil field in which the activity has been authorized, or, in certain circumstances, for each production pool in such field. The bill would also require, beginning January 1, 2021, that the owner or operator of a refinery, as defined, deliver to the state board an annual report that includes specified information regarding the crude oil processed by the refinery. The bill would require the state board to post certain information it receives from refinery owners or operators on its internet website.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 39735 is added to the Health and Safety Code, to read:

39735.
 (a) For purposes of this section, the following definitions shall apply:
(1) “Life-cycle emissions” means all emissions associated with production, processing, refining, shipping, petroleum product transportation, end uses, and disposal of a crude oil and its associated gas, all derivative products, and wastes.
(2) “Multicut assay” means determination by a qualified laboratory of both of the following:
(A) The characteristics of a crude oil type, including gravity, density, chemical content, including sulfur, nitrogen, and hydrogen, volume and mass flow, microcarbon or Conradson carbon residue, and viscosity for vacuum residuum. Each of these parameters shall be assessed at a range of cut temperatures that shall include at minimum the following nine set points in degrees Centigrade: 80, 180, 290, 343, 399, 454, 525, 525 plus, and 399 plus, where “plus” indicates the highest temperature at which 100 percent of the crude oil has been distilled.
(B) Levels of benzene, nickel, vanadium, selenium, acidity, viscosity, mercury, microcarbon or Conradson carbon residue, and any other crude oil characteristics or constituents that the state board identifies as pertinent to protection of health, safety, or the environment, assessed on the whole crude.
(b) No later than December 31, 2023, the state board, in cooperation with the Geologic Energy Management Division in the Department of Conservation and the State Energy Resources Conservation and Development Commission, shall complete and publish an analysis of the life-cycle greenhouse gas emissions associated with crude oil produced in the state. The analysis shall include the following elements and any other elements deemed appropriate and necessary by the state board:
(1) Quantification of the per-barrel life-cycle emissions of greenhouse gases, as defined in Section 38505 of the Health and Safety Code, from each of the crude oil types produced in California.
(A) The analysis shall separately identify the life-cycle emissions of greenhouse gases associated with each crude oil production field in California, or with each production pool in any such field to the extent the state board determines necessary pursuant to subdivision (c) to address variations in crude oil characteristics within a production field.
(B) The analysis shall employ a methodology that considers the characteristics of the crude oil from each assessed production field or pool, as reflected in the multicut assays referenced in subdivision (c) of this section and any other relevant information.
(2) Identification of data gaps in the life cycle analysis.
(3) Assessment of the social costs, as defined in Section 38506, of the life-cycle emissions of greenhouse gases associated with each assessed production field or pool.
(4) Criteria that may be used to establish thresholds of significance that could be applied in a determination of significance pursuant to Section 21082.2 of the Public Resources Code for life-cycle greenhouse gas impacts of emissions associated with oil production and refining in California. In determining these criteria, the state board shall consider all of the following:
(A) The cumulative greenhouse gas impacts of crude oil production and refining in the state.
(B) State, local, national, and international greenhouse gas reduction targets.
(C) The social costs of greenhouse gases as determined pursuant to paragraph (3).
(D) Other factors the state board finds appropriate.
(5) Identification of means to reduce life-cycle emissions of greenhouse gases associated with production and refining of crude oil in the state, including direct reductions in process emissions and reductions in the volume of production or refining of particular types of crude oil.
(c) On or before January 1, 2021, and annually thereafter, all operators that have received authorization from the Geologic Energy Management Division in the Department of Conservation to drill, redrill, deepen, or rework a crude oil production well within the state, where the well remains in operation, shall deliver to the state board a multicut assay for each oil field in which such activity has been authorized, or for each production pool in such field to the extent the state board determines that variations in crude characteristics may exist within a production field sufficient to affect the life-cycle emissions analysis to be prepared pursuant to subdivision (b). Operators shall further deliver to the state board any additional multicut assays that the state board determines are necessary.
(d) Beginning January 1, 2021, the owner or operator of a refinery, as defined in Section 25128 of the Public Resources Code, shall deliver to the state board an annual report that shall include both of the following:
(1) The volume of each crude oil identified by trade name, and each blend that includes such oil, processed at the refinery during the reporting period.
(2) A multicut assay for each crude oil or blend reported pursuant to paragraph (1) that was produced in whole or part outside the state.
(e) The state board shall promptly post all multicut assays received pursuant to subdivision (c) or (d) on its internet website.
(f) The state board shall provide opportunities for public participation in development of the life-cycle emissions analysis required pursuant to subdivision (b) and shall make a draft of the completed analysis available for public comment. Upon the release of the draft life-cycle emissions analysis, the state board shall make available to the public all supporting data to the extent release of the data is not prohibited by law.