Bill Text: CA AB218 | 2023-2024 | Regular Session | Chaptered
Bill Title: Oil and gas: trailer bill.
Spectrum: Committee Bill
Status: (Passed) 2024-09-30 - Chaptered by Secretary of State - Chapter 1002, Statutes of 2024. [AB218 Detail]
Download: California-2023-AB218-Chaptered.html
Assembly Bill
No. 218
CHAPTER 1002
An act to amend Sections 3282, 3283, 3285, 3286, 3287, 3288, 3290, and 3405 of, and to add and repeal Section 3434 of, the Public Resources Code, relating to oil and gas, and making an appropriation therefor, to take effect immediately, bill related to the budget.
[
Approved by
Governor
September 30, 2024.
Filed with
Secretary of State
September 30, 2024.
]
LEGISLATIVE COUNSEL'S DIGEST
AB 218, Committee on Budget.
Oil and gas: trailer bill.
Existing law, commencing January 1, 2025, requires oil or gas production facilities or wells with a wellhead within a health protection zone, defined as an area within 3,200 feet of sensitive receptors, which include residences and health care facilities, to comply with specified health, safety, and environmental requirements, as provided. Existing law requires operators with a production facility or well with a wellhead in a health protection zone to submit a leak detection and response plan, as provided, to the Geologic Energy Management Division of the Department of Conservation by January 1, 2025, division approval or notice of deficiency by January 1, 2026, and implementation of the plan by January 1, 2027. Existing law requires every operator to submit a sensitive receptor inventory and map to the
division by July 1, 2023. Existing law, commencing January 1, 2027, requires operators with a wellhead or other production facility or facilities in a health protection zone to provide certain information relating to leaks to the division, as provided.
This bill would instead require the oil or gas production facilities and wells within a health protection zone to comply with those health, safety, and environmental requirements commencing July 1, 2026. The bill would instead require operators with a production facility or well with a wellhead in a health protection zone to submit a leak detection and response plan to the division by July 1, 2028, division approval or notice of deficiency by July 1, 2029, and implementation of the plan by July 1, 2030. The bill would instead require every operator to submit a sensitive receptor inventory
and map to the division by July 1, 2025. The bill would require operators with a wellhead or other production facility or facilities in a health protection zone to provide certain information relating to leaks to the division, as provided, commencing July 1, 2030.
Existing law requires the State Oil and Gas Supervisor, commencing July 1, 2023, and at 6-month intervals thereafter, to notify the applicable legislative budget and policy committees on progress for the leak detection and response plans, as provided. Existing law requires the division, on or before July 1, 2027, to provide a legislative report to the applicable budget and policy committees regarding the implementation of health protection zones, as provided.
This bill would instead require the supervisor to notify those committees on the progress for the leak protection and response plans commencing July 1, 2026. The bill would instead require the division to provide the legislative report on or before July 1, 2030.
Existing law authorizes the division, the State Air Resources Board, and the State Water Resources Control Board to prescribe, adopt, and enforce emergency regulations to implement, administer, and enforce its duties relating to health protection zones and authorizes those emergency regulations to remain in effect for 2 years from adoption. Existing law requires the State Air Resources Board, relevant local air districts, the State Water Resources Control Board, and relevant local water quality control boards to enter into
memoranda of understanding with the division to clearly delineate respective responsibilities for implementing and enforcing health protection zones and to execute those memoranda of understanding by June 1, 2023.
This bill would instead authorize the emergency regulations to remain in effect for 2 years from adoption or until July 1, 2026, whichever date is later. The bill would instead require those memoranda of understanding to be executed by June 1, 2025.
Existing law requires the Department of Conservation, on or before June 15 of each year, to make an estimate of the amount of money that will be required to carry out specified laws related to oil and gas
conservation, as provided. Existing law requires, by June 15 each year, the department to determine the rate, or rates, for charges on operators that will produce the sums necessary to be raised to cover that estimate. Existing law provides penalties for any person who fails to pay an oil and gas assessment within the time required, as provided.
This bill would, if the department determines between June 15, 2024, and March 1, 2025, that the estimate is insufficient for the current fiscal year, authorize the department to assess and levy a supplemental assessment on oil and gas production to ensure funds are available for the full amount of the adjusted cost estimate, as provided. The bill would prohibit the department from issuing this supplemental assessment after March 1, 2025. The bill would apply the same penalties to delinquent
charges under a supplemental assessment. The bill would repeal these provisions on January 1, 2027, and would authorize the department to continue to pursue the collection of unpaid supplemental assessments, penalties, and interest after these provisions are repealed.
Existing law requires specified funds collected from oil and gas operators to be deposited to the credit of the Oil, Gas, and Geothermal Administrative Fund, to be used for, among other things, the State Water Resources Control Board and the regional water quality control boards for their activities related to oil and gas operations that may affect water resources.
This bill would appropriate $2,646,000 from the Oil, Gas, and
Geothermal Administrative Fund for the 2024–25 fiscal year to the State Water Resources Control Board to support water quality projects implementing provisions related to the above-described health protection zones, as provided.
This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
Digest Key
Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 3282 of the Public Resources Code is amended to read:3282.
Commencing July 1, 2026, all oil or gas production facilities or wells with a wellhead within a health protection zone shall be in compliance with all of the following requirements:(a) The operator is required to comply with the terms and conditions of all applicable federal, state, and local permits required to operate the well and facility.
(b) If not otherwise required by law or regulation, clearly post contact information for where to address complaints about noise, odor, and other concerns on the perimeter of
the site. This information shall include responsible persons employed by the operator, as well as enforcement officials in the city, county, or city and county, and air district, in which the facility is located. The size and format of the posted information shall be consistent with existing requirements.
(c) Unless more stringent local requirements apply, between 8 p.m. and 7 a.m., sound levels from oil and gas production operations shall not exceed ambient noise levels, as measured at the property line.
(d) Unless more stringent local requirements apply, minimize light generated at an oil or gas well or production facility to reduce light traveling beyond property boundaries. Except as needed in emergency circumstances, operators shall use only such lighting as is necessary to provide the minimum intensity and coverage for safety and basic security between the hours of 8 p.m.
and 7 a.m. Lighting shall be hooded or otherwise directed so that it shines onto only the operator’s property and not onto adjacent properties or into the sky.
(e) Unless more stringent local requirements apply, employ operational measures to prevent dust and particulates from migrating beyond property boundaries. Dust control measures to be employed within property boundaries shall include, but are not limited to, the following:
(1) Limiting vehicle speeds on unpaved roads to 15 miles per hour or less.
(2) Containing or covering stored sands, drilling muds, and excavated soil.
(f) Immediately suspending the use of a production facility if the production facility, including all permanent and temporary equipment within the health protection zone that
emits vapors, such as tanks, vessels, separation facilities, gas processing units, and other equipment holding petroleum liquids or produced water, is not in compliance with all applicable air district requirements relating to preventing vapor venting to the atmosphere.
(g) (1) The operator is required to provide the division with representative chemical analyses for all produced water transported away from the oilfield where it was produced.
(2) Chemical analysis required under this subdivision shall be in accordance with the analytical specifications for liquid analysis detailed in Section 1724.7.2 of Title 14 of the California Code of Regulations, and shall be filed with the division within three months of produced water being transported from the oilfield and whenever the source of produced water is changed.
(3) For the purposes of this subdivision, the source of produced water is changed if the treatment process or additives are changed, if a contributing source is added or removed, or if there is a significant change to the relative contribution of individual sources such that the last chemical analysis is not representative of the produced water being transported from the oilfield.
SEC. 2.
Section 3283 of the Public Resources Code is amended to read:3283.
(a) All operators with a production facility or well with a wellhead in a health protection zone shall develop a leak detection and response plan that shall be submitted to the division no later than July 1, 2028, and fully implemented by operators by July 1, 2030. For any leak detection and response plan submitted by July 1, 2028, the division shall either approve the plan or provide notice of deficiencies by July 1, 2029. Commencing July 1, 2030, the operator shall suspend all production and injection operations within a health protection zone unless an approved leak detection and response plan is fully implemented in that area. A leak detection and response plan is subject to review and approval by the division, in consultation with and with the concurrence of the State Air Resources Board, and shall include all of the following:(1) The leak detection and response plan shall identify the chemical constituents, such as methane and hydrogen sulfide, as well as potential toxics of highest concern in the region as identified by the State Air Resources Board or local air district that will be detection targets for the emissions detection system to ensure early detection of leaks that otherwise may result in emissions impacting the surrounding communities. Not all chemical species that may be found in the oilfield are required to be detection targets and methane may serve as a surrogate for chemical constituents that cannot be continuously monitored but are identified in the leak detection and response plan. The State Air Resources Board and the State Water Resources Control Board shall adopt regulations as necessary to implement and set performance standards by regulation for the emissions detection system. The division, the State Air Resources Board, and the State Water
Resources Control Board may adopt such regulations under an emergency rulemaking process as provided in Section 3288.
(2) (A) The leak detection and response plan shall include a continuously operating emissions detection system designed to provide for rapid detection of target chemical constituents to identify leaks before emissions impact the surrounding communities. Sampling locations and sample inlets shall be sited consistent with local meteorology and best practices.
(B) The emissions detection system shall include an alarm system that effectively, immediately, and reliably alerts the operator when triggered.
(C) The emissions detection system shall include a new, or use an existing, meteorological system that is appropriately sited with the ability to continuously record measurements.
(b) The leak detection and response plan shall include an alarm response protocol that provides for immediate action to rapidly identify and fix the leak that is the source of the emissions. In the event that the source of the emissions is not identified and the leak stopped within 48 hours of the leak being identified, the alarm response protocol shall include a communication plan for notification of local emergency responders and public health authorities, the division, and people in the community, including notification in languages that are easily understood by the affected community. The alarm response protocol shall provide for compliance with all local, state, and federal requirements for reporting leaks of hazardous emissions. The operator shall consult with local emergency response entities when preparing the alarm response protocol and shall engage in drills as deemed necessary by the local emergency response entity. The alarm response
protocol shall provide for collection and determination of the chemical composition of a representative sample near the leak when a continuous alarm event indicates that emissions from the leak may have impacted the surrounding community, and the subsequent collection and determination of the chemical composition of samples when there is reason to believe that the composition of the emissions may be changing. If the source of the emissions is a leak from a well or production facility, the operator shall suspend use of the well or production facility until the leak has been corrected and the division has approved the resumption of its use. Where the operator can demonstrate to the division that the source of the emissions is not related to the oil and gas operations, the division may waive any additional actions required under the alarm response protocol.
(c) The division and the State Air Resources Board shall collaborate to develop methods for
providing public access to data generated by operators from emissions detection systems.
(d) The division shall hold no less than three public workshops following the enactment of the emergency regulations pursuant to Section 3288 to provide information and guidance to operators and the public on the development of leak detection and response plans pursuant to this section.
(e) An operator’s leak detection and response plan shall be reviewed and updated by the operator, subject to division approval, at least once every five years from the date of its initial approval by the division. The division shall hold at least one public technical workshop at least biennially to provide information and guidance to operators on best practices for the development, review, and update of leak detection and response plans.
(f) The
operator shall record and maintain records of emissions and meteorological monitoring, including the composition of any samples collected during leak events, for 10 years.
(g) Notwithstanding Section 10231.5 of the Government Code, commencing July 1,
2026, and at six-month intervals thereafter, the supervisor shall notify the applicable legislative budget and policy committees on progress, including milestones, towards achieving the deadlines in subdivision (a) for the development, approval, and implementation of the leak detection and response plans.
SEC. 3.
Section 3285 of the Public Resources Code is amended to read:3285.
(a) Every operator shall submit to the division by July 1, 2025, a sensitive receptor inventory and map that includes the following:(1) A list of all sensitive receptors within 3,200 feet of an operator’s wellheads and production facilities by field. For each sensitive receptor listed, the operator shall provide all of the following:
(A) The distance from the sensitive receptor to each wellhead or production facility that is located within 3,200 feet of that specific receptor. The well shall be
identified by API number, and the production facility shall also be explicitly identified. Latitude and longitude shall also be provided for the wellhead and production facility.
(B) The type of sensitive receptor.
(C) A map showing each sensitive receptor’s location in relation to the operator’s wellheads and production facilities.
(2) A statement from each operator based on their sensitive receptor inventory that provides the operator’s determination as to whether their wellheads and production facilities are located within 3,200 feet of a sensitive receptor. An operator who has identified sufficient sensitive receptors such that their entire operation is located within a health protection zone may cease adding new sensitive receptors to their inventory and make a determination that all of their wellheads and
production facilities are located within a health protection zone.
(b) By July 1 of each year, all operators shall submit to the division a sensitive receptor inventory and map pursuant to subdivision (a) that is up to date, with information no more than 90 days old, and shall make a new determination regarding the location of each of their wellheads and production facilities within a health protection zone. If there have been no changes to the location of sensitive receptors in the 3,200 feet surrounding the operator’s wellheads and production facilities, the operator shall submit a statement that no changes to the determination are needed.
(c) The division shall review for completeness and accuracy no less than 30 percent of the inventories and associated maps submitted annually pursuant to this section. The division shall notify operators of any discrepancies in the submitted
inventories and maps as determined by the division.
(d) The division shall make available to the public on its internet website all current sensitive receptor inventories and maps.
SEC. 4.
Section 3286 of the Public Resources Code is amended to read:3286.
(a) Commencing July 1, 2030, and no less than annually on a date to be determined by the division, an operator with a wellhead or other production facility or facilities in a health protection zone shall provide at least the following information to the division by location in a format that complies with all requirements of the federal Americans with Disabilities Act of 1990 (Public Law 101–336) and its implementing regulations for online viewing:(1) The number of and amounts of time the emissions detection system was not operating.
(2) The number of validated alarms, and the reasons for the alarms.
(3) The number of leaks that occurred, the time needed to repair the leak, and a brief description of the leak, including the impact on air quality and community exposure.
(4) The number of times the surrounding community was notified after a leak persisted for 48 hours.
(5) The number of times and length of time production and injection operations and other use of the facility were suspended due to leaks.
(6) Any baseline and postdrilling groundwater testing performed by location.
(b) The division shall make the information submitted by the operators available
to the public on its internet website.
SEC. 5.
Section 3287 of the Public Resources Code is amended to read:3287.
Notwithstanding Section 10231.5 of the Government Code, on or before July 1, 2030, and annually thereafter, the division shall provide a legislative report to the applicable budget and policy committees regarding the implementation of health protection zones by the division. The reports shall include at least the following:(a) The number and types of wells and attendant facilities in health protection zones by operator and field.
(b) The estimated population protected by the health protection zone.
(c) The status of leak detection and response plans by operation and location.
(d) The number and type of notices of intention approved in health protection zones and the reason the notices of intention received approval by operator and field.
(e) The number of sensitive receptor inventories and maps received by the division by operator and field.
(f) Aggregated information by operator and location of leaks detected and alarms associated with the leaks.
(g) The number of notices of violation issued by the division for dust control, excess noise and light, and other requirements pursuant to this article by operator and field.
(h) The number of orders issued by the supervisor pursuant to this article by operator and field.
(i) The number of times by operator and location that baseline and postdrilling groundwater testing was performed.
SEC. 6.
Section 3288 of the Public Resources Code is amended to read:3288.
The division, the State Air Resources Board, and the State Water Resources Control Board may prescribe, adopt, and enforce any emergency regulations as necessary to implement, administer, and enforce its duties under this article. Any emergency regulation prescribed, adopted, or enforced pursuant to this article shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare. Notwithstanding any other law, the emergency regulations adopted by the division, the State Air Resources Board, and the State Water Resources Control Board may remain in effect for two years from adoption, or until July 1, 2026, whichever date is later.SEC. 7.
Section 3290 of the Public Resources Code is amended to read:3290.
The State Air Resources Board, relevant local air districts, the State Water Resources Control Board, and relevant local water quality control boards shall enter into memoranda of understanding with the division to clearly delineate respective responsibilities for implementing and enforcing health protection zones. These memoranda of understanding shall be executed by June 1, 2025. The division may pursue additional memoranda of understanding with other state and local entities as needed.SEC. 8.
Section 3405 of the Public Resources Code is amended to read:3405.
The department shall prescribe the form and contents of all reports for making the charge or for other purposes to carry out the intent and provisions of this article.SEC. 9.
Section 3434 is added to the Public Resources Code, immediately following Section 3433, to read:3434.
(a) If the department determines between June 15, 2024, and March 1, 2025, that the estimate made pursuant to Section 3410 of the amount of money that will be required to carry out the provisions of this chapter is insufficient for the current fiscal year, the department may assess and levy a supplemental assessment on oil and gas production to ensure that funds are available for the full amount of the adjusted cost estimate. The department shall not issue a supplemental assessment pursuant to this section after March 1, 2025.(b) Issuance of a supplemental assessment shall not affect the requirements and authorities for collecting unpaid assessments on oil and gas pursuant to this article. If the total amount collected under the assessment
and any supplemental assessments exceed the total amount required to carry out the provisions of this chapter for the fiscal year, the excess shall be carried forward to reduce the assessment for the following year as an adjustment for savings pursuant to Section 3410.
(c) If a supplemental assessment is issued pursuant to this section, the charges shall be computed in accordance with Sections 3402 and 3403, and the supplemental assessment shall be issued and collected in accordance with the requirements and authorities of this article with the following exceptions:
(1) The department shall not assess and levy a supplemental assessment until at least 15 days after mailing notice of a pending supplemental assessment to each person subject to assessment pursuant to Section 3413. The requirement to assess and levy charges between March 1 and June 15 pursuant to Section 3413 does not
apply to a supplemental assessment, but the department shall otherwise assess and levy the supplemental assessment in accordance with Section 3418.
(2) The department shall provide the Controller with an update to the “Record of Assessments and Charges” required pursuant to Section 3418 to include the supplemental assessment.
(3) The certificate delivered to the Controller in the previous year pursuant to Section 3419 may be relied upon for a supplemental assessment and an additional certificate is not required.
(4) Notwithstanding subdivision (a) of Section 3420, charges under a supplemental assessment are due and payable 15 days after the assessment is mailed and shall be delinquent if not paid within 90 days after it is due and payable. Penalties described in subdivision (d) of Section 3420 shall apply to
delinquent charges under a supplemental assessment.
(5) The Controller’s collection action pursuant to Section 3426 for charges under a supplemental assessment shall be brought within 120 days after the charge under the supplemental assessment becomes delinquent.
(6) An action pursuant to Section 3430 for the recovery of the whole, or any part of, the charges, penalties, or costs paid on a supplemental assessment pursuant to this section may be brought no later than the third Monday following the day upon which the charges became delinquent. The requirements of Section 3430 shall otherwise apply to an action for the recovery of the whole or any part of the charges, penalties, or costs paid on a supplemental assessment pursuant to this section.
(d) This section shall remain in effect only until January
1, 2027, and as of that date is repealed.
(e) Notwithstanding subdivision (d), the department may continue to pursue the collection of unpaid supplemental assessments, penalties, and interest after this section is repealed.
