Bill Text: CA SB233 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Marine resources and preservation.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Failed) 2016-11-30 - From Assembly without further action. [SB233 Detail]

Download: California-2015-SB233-Amended.html

---

BILL NUMBER: SB 233	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 19, 2015

INTRODUCED BY   Senator Hertzberg
    (   Coauthor:   Assembly Member  
Rendon   ) 

                        FEBRUARY 13, 2015

   An act to amend  Section 5993 of the Fish and Game Code,
relating to fish and wildlife.   Sections 6603, 6604,
6610, 6611, 6612, 6613, 6614, 6615, 6616, and 6618 of the Fish and
Game Code, relating to ocean resources. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 233, as amended, Hertzberg.  Conduits and screens: fish
screen monitoring.   Marine resources and preservation.
 
   (1) The California Marine Resources Legacy Act establishes a
program, administered by the Department of Fish and Wildlife, to
allow partial removal of offshore oil structures. The act authorizes
the department to approve the partial removal of offshore oil
structures, if specified criteria are satisfied. The act requires an
applicant, upon conditional approval for removal, to apportion a
percentage of the cost-savings funds in accordance with a prescribed
schedule to specified entities and funds. The act defines "cost
savings" to mean the difference between the estimated cost to the
applicant of complete removal of an oil platform, as required by
state and federal leases, and the estimated costs to the applicant of
partial removal of the oil platform pursuant to the act, and
specifically provides for the inclusion of certain costs in cost
savings.  
   The bill would require an applicant, upon conditional approval for
partial removal of an offshore oil structure, to transmit a portion
of the cost savings to the department, instead of to the specified
entities and funds. The bill would require the department to
apportion those cost-savings funds received from the applicant in
accordance with a prescribed schedule based on the date the
application was submitted to the department. The bill would authorize
the applicant to withdraw the application at any time before final
approval and would require the department to return specified funds
submitted to process the application that have not been expended as
of the date of receipt of the notification of withdrawal.  
   (2) Existing law requires the Natural Resources Agency to serve as
the lead agency for the environmental review under the California
Environmental Quality Act (CEQA) of a proposed project to partially
remove an offshore oil structure pursuant to the California Marine
Resources Legacy Act. Upon certification of environmental documents
pursuant to CEQA, the California Marine Resources Legacy Act requires
the State Lands Commission to determine the cost savings of partial
removal compared to full removal of the structure and requires the
Ocean Protection Council to determine whether partial removal
provides a net environmental benefit to the marine environment
compared to the full removal of the structure.  
   This bill would instead require the department to serve as the
lead agency for the environmental review under CEQA, to determine the
cost savings of partial removal compared to full removal of the
structure, and to determine whether partial removal provides a net
environmental benefit to the marine environment compared to the full
removal of the structure.  
   The bill would require the department, in determining whether
partial removal of the structure would provide a net benefit to the
marine environment compared to full removal of the structure, to take
certain adverse impacts to air quality and greenhouse gas emissions
into account and to consult with the State Air Resources Board and
the Ocean Protection Council, among other entities.  
   Existing law regulates the construction and installation of any
screen installed on conduits used in producing, generating,
transmitting, delivering, or furnishing electricity for light, heat,
or power and conduits with a maximum flow capacity over 250 cubic
feet per second of water to prevent fish from passing through the
conduit. Existing law requires, before the installation of any
screen, the Department of Fish and Wildlife and the owner to enter
into an agreement that defines the method of determining the cost of
maintenance, repairs, operation, and keeping the screen free of
debris.  
   This bill would additionally require the agreement to define the
method of determining the cost of monitoring the screen's
performance. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 6603 of the   Fish and
Game Code   is amended to read: 
   6603.  (a) This chapter establishes a program through which an
applicant may voluntarily apply to the department to carry out
partial removal of the structure.
   (b) The program established pursuant to this chapter shall be
deemed consistent with, and part of, the California Artificial Reef
Program pursuant to Article 2 (commencing with Section 6420) of
Chapter 5 for purposes of compliance with federal law including the
National Fishing Enhancement Act of 1984.
   (c)  Except as specified in Section 6604, the 
 The  department shall serve as the primary authority for
carrying out the program, including review and approval of
applications to partially remove an offshore oil structure in state
or federal waters and management and operation of decommissioned
offshore oil structures in state or federal waters approved pursuant
to this chapter.
   (d) Final approval of an application shall not be granted until
the applicant complies with all requirements of the chapter,
including the payment of all costs to the state to review and approve
the proposed project as required by subdivision (b) of Section 6612
and the transmittal of the required portion of cost savings to the
endowment and other parties as required by Section 6618.
   (e) The department may obtain funds for the planning, development,
maintenance, and operation of an offshore oil structure transferred
to the department pursuant to this chapter and may accept gifts,
subventions, grants, rebates, reimbursements, and subsidies from any
lawful source.
   (f) The department may adopt regulations to implement this
chapter.
   SEC. 2.    Section 6604 of the   Fish and
Game Code   is amended to read: 
   6604.  (a) A proposed project to partially remove an offshore oil
structure pursuant to this chapter is a project as defined in
subdivision (c) of Section 21065 of the Public Resources Code and is
therefore subject to the California Environmental Quality Act
(Division 13 (commencing with Section 21000) of the Public Resources
Code) and shall be reviewed pursuant to the time limits established
in Section 21100.2 of the Public Resources Code.
   (b) The  Natural Resources Agency  
department  shall serve as the lead agency for the environmental
review of any project proposed pursuant to this chapter.
   SEC. 3.    Section 6610 of the   Fish and
Game Code   is amended to read: 
   6610.  (a) An owner or operator, or other party responsible for
decommissioning, of an offshore oil structure may apply to the
department for approval to partially remove the structure pursuant to
the requirements of this chapter.
   (b) The department shall design and make available to potential
applicants an application process that will facilitate review of the
application by the department in a timely manner, consistent with
Section 6604.
   (c) Upon receipt of an application pursuant to this section, the
department shall transmit a copy of the application to the 
council, the commission, and the endowment, which shall constitute
notice to these agencies.   endowment. 
   SEC. 4.    Section 6611 of the   Fish and
Game Code   is amended to read: 
   6611.  (a) The application for partial removal shall include, at a
minimum, all of the following:
   (1) The applicant's plan and schedule for partial removal of the
offshore oil structure, including removal of any portion of the
structure as appropriate to maintain navigational safety.
   (2) A determination of the estimated cost of partial removal and
the estimated cost of full removal.
   (3) A determination of the environmental impacts and benefits to
the marine environment from partial removal and full removal of the
structure.
   (4) Identification of all permits, leases, and approvals required
by any governmental agency, including a permit issued by the United
States Army Corps of Engineers if required for offshore oil
structures, and a lease issued by the commission if the proposed
project involves state tidelands and submerged lands, and a proposed
schedule for the applicant or the state to receive those permits,
leases, and approvals.
   (b) The department may require the applicant to submit a
management plan for the structure following partial removal,
including maintenance in a manner consistent with navigational
safety, enforcement, and monitoring.
   (c) The information submitted pursuant to subdivisions (a) and (b)
shall be used by the department for advisory purposes only. Final
determinations regarding the partial removal and management of the
offshore oil structure, net benefit to the marine environment from
partial removal, and cost savings from partial removal shall be made
solely by the department,  council, and commission, 
as specified in this chapter, based on  their  
its  independent review and judgment.
   SEC. 5.    Section 6612 of the   Fish and
Game Code  is amended to read: 
   6612.  (a) Upon receipt of an application to partially remove an
offshore oil structure pursuant to this chapter, the department shall
determine whether the application is complete and includes all
information needed by the department.
   (b) (1) Upon a determination that the application is complete, the
applicant shall provide surety bonds executed by an admitted surety
insurer, irrevocable letters of credit, trust funds, or other forms
of financial assurances, determined by the department to be available
and adequate, to ensure that the applicant will provide sufficient
funds to the  department, council, commission,  
department  and conservancy to carry out all required
activities pursuant to this article, including all of the following:
   (A) Environmental review of the proposed project pursuant to
Section 6604.
   (B) A determination of net environmental benefit pursuant to
Section 6613.
   (C) A determination of cost savings pursuant to Section 6614.
   (D) Preparation of a management plan for the structure pursuant to
Section 6615.
   (E) Implementation of the management plan and ongoing maintenance
of the structure after the department takes title pursuant to Section
6620.
   (F) Development of an advisory spending plan pursuant to Section
6621.
   (G) Other activities undertaken to meet the requirements of this
article, including the costs of reviewing applications for
completeness, and reviewing, approving, and permitting the proposed
project, which includes the costs of determining whether the project
meets the requirements of all applicable laws and regulations and the
costs of environmental assessment and review.
   (2) The department shall consult with the  council,
commission, and  conservancy in determining appropriate
funding for activities to be carried out by  those agencies.
  the conservancy. 
   (3) The funds provided pursuant to paragraph (1) shall not be
considered in the calculation of cost savings pursuant to Section
6614 or the apportionment of cost savings pursuant to Section 6618.
   (c) The first person to file an application on and after January
1, 2011, to partially remove an offshore oil structure pursuant to
this chapter, shall pay, in addition to all costs identified under
subdivision (b), the startup costs incurred by the department
 or the commission  to implement this chapter,
including the costs to develop and adopt regulations pursuant to this
chapter. This payment of startup costs shall be reimbursed by the
department as provided in paragraph (3) of subdivision (c) of Section
6618.
   (d) As soon as feasible after  reaching the agreement
  the applicant provides financial assurances 
pursuant to subdivision (b), the  lead agency  
department  shall begin the environmental review of the proposed
project as required pursuant to Section 6604. 
   (e) The applicant may withdraw the application at any time before
final approval. Upon notification that the applicant has withdrawn
the application, the department shall return to the applicant any
funds provided under subdivisions (b) and (c) that have not been
expended as of the date of receipt of notification of withdrawal.

   SEC. 6.    Section 6613 of the   Fish and
Game Code   is amended to read: 
   6613.  (a) The  council   department 
shall determine whether the partial removal of an offshore oil
structure pursuant to this chapter provides a net benefit to the
marine environment compared to the full removal of the structure.
   (b) As a necessary prerequisite to determining net environmental
benefit as required in subdivision (a), the  council
  department  shall, upon receipt of its initial
application  from the department  pursuant to
Section 6610, establish appropriate criteria for evaluating the net
environmental benefit of full removal and partial removal of offshore
oil structures.
   (1) The criteria shall include, but are not limited to, the depth
of the partially removed structure in relation to its value as
habitat and the location of the structure, including its proximity to
other reefs, both natural and artificial.
   (2) The criteria shall not include any consideration of the funds
to be generated by the partial removal of the structure.
   (3) In determining the criteria, the  council 
 department  shall consult with appropriate entities,
including, but not limited to, the  department, 
 council,  the commission,  the State Air Resources
Board,  the California Coastal Commission, and the California
Ocean Science Trust.
   (4) The  council   department  shall
establish the criteria in time to use them in making its initial
determination of net environmental benefit pursuant to this section.
   (c) Upon certification of environmental documents pursuant to the
California Environmental Quality Act, the  council 
 department  shall, based on the criteria developed pursuant
to subdivision (b) and other relevant information, determine whether
partial removal of the structure would provide a net benefit to the
marine environment compared to full removal of the structure. In
making the determination, the  council  
department  shall, at a minimum, take into account the
following:
   (1) The contribution of the proposed structure to protection and
productivity of fish and other marine life.
   (2) Any adverse impacts to biological resources or water quality,
 air quality or greenhouse gas   emissions   ,
 or any other marine environmental impacts, from the full
removal of the facility that would be avoided by partial removal as
proposed in the application.
   (3) Any adverse impacts to biological resources or water quality,
 air quality or greenhouse gas emissions,  or any other
marine environmental impacts, from partial removal of the structure
as proposed in the application.
   (4) Any benefits to the marine environment that would result from
the full removal of the structure or from partial removal as proposed
in the application.
   (5) Any identified management requirements and restrictions of the
partially removed structure, including, but not limited to,
restrictions on fishing or other activities at the site.
   (d) Benefits resulting from the contribution of cost savings to
the endowment shall not be considered in the determination of net
environmental benefit.
   (e) The  council   department  may
contract or enter into a memorandum of understanding with any other
appropriate governmental or nongovernmental entity to assist in its
determination of net environmental benefit.
   (f) The determination made pursuant to this section  and
submitted to the department by the council shall constitute
the final determination and shall not be revised except by the
 council.   department.  
   (g) The council shall take all feasible steps to complete its
determination in a timely manner that accommodates the department's
schedule for consideration of the application. 
   SEC. 7.    Section 6614 of the   Fish and
Game Code   is amended to read: 
   6614.  (a) Upon certification of the appropriate environmental
 documents by the lead agency, the commission  
documents, the department  shall determine, or cause to be
determined, the cost savings that will result from the partial
removal of an offshore oil structure as proposed in the application
compared to full removal of the structure.
   (b) The  commission   department  shall
ensure that any cost savings are accurately and reasonably
calculated. The  commission   department 
may contract or enter into a memorandum of understanding with any
other appropriate governmental agency or other party, including an
independent expert, to ensure that cost savings are accurately and
reasonably calculated.
   (c) The  commission   department  shall
consider any estimates of cost savings made by any governmental
agency, including, but not limited to, the Internal Revenue Service,
the Franchise Tax Board, and the United States Department of the
Interior. The  commission   department 
shall include in its determination a written explanation, which shall
be available to the public, of the differences, and the reasons for
the differences, between the  commission's  
department's  determination of cost savings and any other
estimates of cost savings the  commission  
department  considered.
   (d) The applicant shall provide all necessary documentation, as
determined by the  commission,   department,
 to allow the  commission   department
 to calculate the amount of cost savings. Failure to provide
information requested by the  commission  
department  in a timely manner may result in rejection of the
application.
   (e) The determination made pursuant to this section  and
submitted to the department by the commission  shall
constitute the final determination and shall not be revised except by
the  commission.   department.  
   (f) The commission shall take all feasible steps to complete its
determination in a timely manner that accommodates the department's
schedule for consideration of the application. 
   SEC. 8.    Section 6615 of the   Fish and
Game Code   is amended to read: 
   6615.  Prior to granting conditional approval of an application
for partial removal of an offshore oil structure, the department
shall do all of the following:
   (a) Prepare a plan to manage the offshore oil structure after its
partial removal. The plan shall include measures to manage fishery
and marine life resources at and around the structure in a manner
that will ensure that the net benefits to the marine environment
identified pursuant to Section 6613 are maintained or enhanced.
Consistent with state and federal law, management measures may
include a buffer zone in which fishing or removal of marine life is
restricted or prohibited.
   (b) Provide an opportunity for public comment on the 
application   environmental document  pursuant to
the California Environmental Quality Act.
   (c) Hold a public hearing for comment on the environmental
document pursuant to the California Environmental Quality Act 
in the county nearest to the location of the offshore oil structure
that is the subject of the application.
   SEC. 9.    Section 6616 of the   Fish and
Game Code   is amended to read: 
   6616.  The department may grant conditional approval of an
application for partial removal of an offshore oil structure only if
all of the following criteria are satisfied:
   (a) The partial removal of the offshore oil structure and the
planning, development, maintenance, and operation of the structure
would be consistent with all applicable state, federal, and
international laws, including, but not limited to, all of the
following:
   (1) The federal Magnuson-Stevens Fishery Conservation and
Management Act (16 U.S.C. Sec. 1801 et seq.).
   (2) The federal National Fishing Enhancement Act of 1984 (33
U.S.C. Sec. 2101 et seq.).
   (3) The federal Coastal Zone Management Act (16 U.S.C. Sec. 1451
et seq.).
   (4) The California Coastal Management Program.
   (5) The Marine Life Management Act (Part 1.7 (commencing with
Section 7050)).
   (6) The Marine Life Protection Act (Chapter 10.5 (commencing with
Section 2850) of Division 3).
   (7) State and federal water quality laws.
   (8) Navigational safety laws.
   (b) The partial removal of the offshore oil structure provides a
net benefit to the marine environment compared to full removal of the
structure, as determined pursuant to Section 6613.
   (c) The cost savings that would result from the conversion of the
offshore oil platform or production facility have been determined
pursuant to Section 6614.
   (d) The applicant has provided sufficient funds consistent with
subdivision (b) of Section 6612.
   (e) The department and the applicant have entered into a
contractual agreement whereby the applicant will provide sufficient
funds for overall management of the structure by the department,
including, but not limited to, ongoing management, operations,
maintenance, monitoring, and enforcement as these relate to the
structure.
   (f) The department has entered into an indemnification agreement
with the applicant that indemnifies the state and the department, to
the extent permitted by law, against any and all liability that may
result, including, but not limited to, active negligence, and
including defending the state and the department against any claims
against the state for any actions the state undertakes pursuant to
this article. The agreement may be in the form of an insurance
policy, cash settlement, or other mechanism as determined by the
department. In adopting indemnification requirements for the
agreement, the department shall ensure that the state can defend
itself against any liability claims against the state for any actions
the state undertakes pursuant to this article and pay any resulting
judgments. The department shall consult with and, as necessary, use
the resources of the office of the Attorney General in preparing and
entering into the indemnification agreement.
   (g) The applicant has applied for and received all required
permits, leases, and approvals issued by any governmental agency,
including, but not limited to, a lease issued by the commission if
the proposed project involves state tidelands and submerged lands.
For structures located in federal waters, all of the following
requirements shall be met:
   (1) The department and the owner or operator of the structure
reach an agreement providing for the department to take title to the
platform or facility as provided in Section 6620.
   (2) The department acquires the permit issued by the United States
Army Corps of Engineers.
   (3) The partial removal of the structure is approved by the Bureau
of  Ocean Energy Management, Regulation and  
Safety and Environmental  Enforcement of the United States
Department of the Interior.
   SEC. 10.    Section 6618 of th   e 
Fish and Game Code   is amended to read: 
   6618.  (a) The cost savings from the partial removal of an
offshore oil structure, as determined pursuant to Section 6614, shall
be apportioned and transmitted as described in this section.
   (b) Upon receipt of conditional approval pursuant to Section 6617,
the  owner or operator of the structure  
applicant  shall apportion and directly transmit a portion of
the total amount of the cost savings to the  entities in
subdivision (c)   department  as follows:
   (1) Fifty-five percent, if transmitted   the
application was submitted  before January 1,  2017.
  2023. 
   (2) Sixty-five percent, if  transmitted   the
application was submitted  on or after January 1, 
2017,   2023,  and before January 1,  2023.
  2028. 
   (3) Eighty percent, if  transmitted   the
application was submitted  on or after January 1,  2023.
  2028. 
   (c) Of the total amount of the cost savings to be transmitted
pursuant to subdivision (b), the  applicant 
department  shall directly transmit the following amounts to the
following entities:
   (1) Eighty-five percent shall be deposited into the California
Endowment for Marine Preservation established pursuant to Division 37
(commencing with Section 71500) of the Public Resources Code.
   (2) Ten percent shall be deposited into the General Fund.
   (3) Two percent shall be deposited into the Fish and Game
Preservation Fund for expenditure, upon appropriation by the
Legislature, by the department to pay any costs imposed by this
chapter that are not otherwise provided for pursuant to subdivision
(b) of Section 6612 and subdivision (e) of Section 6616. Any moneys
remaining in the Fish and Game Preservation Fund, after providing for
these costs, shall be used, upon appropriation by the Legislature,
first to reimburse the payment of the startup costs described in
subdivision (c) of Section 6612, and thereafter to conserve, protect,
restore, and enhance the coastal and marine resources of the state
consistent with the mission of the department.
   (4) Two percent shall be deposited into the Coastal Act Services
Fund, established pursuant to Section 30620.1 of the Public Resources
Code, and shall be allocated to support state agency work involving
research, planning, and regulatory review associated with the
application and enforcement of coastal management policies in state
and federal waters pursuant to state and federal quasi-judicial
authority over offshore oil and gas development.
   (5) One percent shall be deposited with the board of supervisors
of the county immediately adjacent to the location of the facility
prior to its decommissioning. The amount paid to the county shall be
managed pursuant to paragraph (1) of subdivision (d) of Section 6817
of the Public Resources Code. 
  SECTION 1.    Section 5993 of the Fish and Game
Code is amended to read:
   5993.  Before the installation of any screen under the provisions
of this article, the department and the owner shall enter into an
agreement defining the method of determining the cost of monitoring
screen performance, maintenance, repairs, operation, and keeping the
screen free of debris, which agreement shall provide that, in the
event either the department or the owner objects to the cost, the
matter shall be referred to the Director of General Services for his
or her final and conclusive decision.