Bill Text


Bill PDF |Add To My Favorites | print page

SB-559 Offshore oil drilling: leases.(2023-2024)

SHARE THIS: share this bill in Facebook share this bill in Twitter
Date Published: 01/10/2024 09:00 PM
SB559:v98#DOCUMENT

Amended  IN  Senate  January 10, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 559

Introduced by Senator Min

February 15, 2023

An act to add Section 6881 to the Public Resources Code, relating to state lands.


LEGISLATIVE COUNSEL'S DIGEST


SB 559, as amended, Min. Offshore oil drilling: leases.
Existing law establishes the State Lands Commission in the Natural Resources Agency. Existing law authorizes the commission to lease tide and submerged lands and beds of navigable rivers and lakes for purposes of the extraction of oil and gas, as provided. Existing law prohibits a state agency or state officer from entering into any new lease for the extraction of oil or gas from the California Coastal Sanctuary, except as provided.
Existing law requires, contingent upon an appropriation of funds by the Legislature for this purpose, the commission to develop, on or before December 31, 2024, a cost study that evaluates the fiscal impact of a voluntary relinquishment of any lease interests in actively producing state offshore oil and gas leases in state waters.
This bill would require, before or upon the publication of the cost study, the commission to seek to initiate negotiations with the lessees for the active oil and gas leases in state waters, with the goal of reaching an agreement for the voluntary relinquishment of the leases and termination of all oil and gas production associated with these leases. The bill would require, if the commission is unable to reach an agreement with the lessees that results in voluntary relinquishments of the leases on or before December 31, 2025, 2026, the commission to terminate the leases and provide fair compensation, as determined through the cost study, if warranted, to the lessees. The bill would describe fair compensation for these purposes. The bill would also require the lessees to plug and abandon all oil and gas wells, decommission pipelines, offshore platforms, and attendant production facilities, and restore the tidelands and submerged lands in compliance with the requirements of the applicable law. The bill would include legislative findings and declarations.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 The Legislature finds and declares all of the following:
(a) California has a longstanding policy that offshore oil and gas production in certain areas of state waters poses an unacceptably high risk of damage and disruption to the marine environment of the state.
(b) Offshore oil and gas production creates the risk of oil spills and other pollution that threaten California’s coastal environment, community, and economy.
(c) Offshore oil and gas production is inconsistent with state climate policy, including, but not limited to, Section 38566 of the Health and Safety Code, that seeks to reduce dangers to the environment and public health, and threats to environmental justice, from climate change.
(d) There are 11 remaining active oil and gas leases in California state waters managed on behalf of the state by the State Lands Commission. There are only three active offshore oil and gas platforms in state waters.
(e) The economic lives of these offshore oil and gas platforms have been largely exhausted, and continuing operations increase the risks of failure of aging infrastructure and that the government will have to pay for decommissioning costs.
(f) Oil and gas production impairs bathing, fishing, navigation, and recreation opportunities, is no longer in the interest of the state, and presents an ongoing public nuisance that jeopardizes our beautiful California coastline and the $44,000,000,000 it generates each year in economic activity.
(g) It is in the best interests of the State of California to end offshore oil and gas production, and to terminate these leases through voluntary negotiations, if possible, and to obtain the following outcomes through that termination:
(1) The end of all offshore oil and gas production.
(2) The plugging and abandonment of all oil and gas wells on the platform to the satisfaction of the Geologic Energy Management Division.
(3) The complete removal of all infrastructure, including the platform, pipelines, and production facilities, if any, attendant to the wells.
(4) The restoration of the sites of this infrastructure to the extent feasible.

SEC. 2.

 Section 6881 is added to the Public Resources Code, to read:

6881.
 (a) Before or upon the publication of the cost study ordered pursuant to Section 6880, the commission shall seek to initiate negotiations with the lessees for the active oil and gas leases in state waters, with the goal of reaching an agreement for the voluntary relinquishment of the leases and termination of all oil and gas production associated with these leases.
(b) If the commission is unable to reach an agreement, as described in subdivision (a), with the lessees that results in voluntary relinquishments of the leases on or before December 31, 2025, 2026, the commission shall terminate the leases and provide fair compensation, as determined through the cost study, to the lessees. if warranted, to the lessees. Fair compensation shall be determined through the consideration of the results of the cost study ordered pursuant to Section 6880, and additional factors, including the ongoing costs to the community of the continuing hazard of offshore oil and gas production, including to public and environmental health and safety, underserved communities, cultural and tribal resources, climate change, harm to the coastal recreation and tourism economy, capital investment and recoupment of those costs, and any applicable legal factors.
(c) Lessees shall plug and abandon all oil and gas wells, decommission pipelines, offshore platforms, and attendant production facilities, and restore the tidelands and submerged lands in compliance with the requirements of the applicable law.
(d) The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.