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 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 JUNE 2, 2015
AMENDED IN SENATE APRIL 21, 2015
AMENDED IN SENATE MARCH 19, 2015
INTRODUCED BY Senator Hertzberg
(Coauthor: Assembly Member Rendon)
FEBRUARY 13, 2015
An act to amend Sections 6604, 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. 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 the first person to file an application to partially remove
an offshore oil structure to pay, in addition to other specified
costs, the startup costs incurred by the department or the State
Lands Commission to implement the act, including the costs to develop
and adopt regulations, and requires the payment of startup costs to
be reimbursed by the department, as specified. 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.
The
Before the first application to partially remove an
offshore oil structure is filed, this bill would authorize a
prospective applicant to pay a portion of the startup costs in an
amount determined by the department to be necessary for
staff and other costs in anticipation of receipt of the first
application. The bill would require an applicant, upon
conditional approval for partial removal of an offshore oil
structure, to apportion and 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
the prescribed schedule. 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 funds, including startup
costs, 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 commission to serve as the
lead agency for the environmental review under CEQA.
The bill would require the council, 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, among
other entities. In making that determination, the bill would require
the council to determine the appropriate weight to be assigned to
adverse impacts to air quality and greenhouse gas emissions as
compared to adverse impacts to biological resources and water
quality.
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 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 commission shall serve as the lead agency for the
environmental review of any project proposed pursuant to this
chapter.
SEC. 2. 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, 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.
(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
Before the first application is filed, a prospective
applicant may elect to pay, and the department may accept payment of,
a portion of the startup costs, in an amount determined by the
department to be necessary for staff and other costs in anticipation
of receipt of the first application. The 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 the applicant provides financial
assurances pursuant to subdivision (b), the lead agency 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 by the applicant under subdivisions (b) and
(c) that have not been expended as of the date of receipt of
notification of withdrawal.
SEC. 3. Section 6613 of the Fish and Game Code is amended to read:
6613. (a) The council 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 shall, upon
receipt of its initial application from the department pursuant to
Section 6610, establish appropriate criteria, based on credible
science, 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 shall consult with
appropriate entities, including, but not limited to, the department,
the commission, the State Air Resources Board, the California Coastal
Commission, and the California Ocean Science Trust.
(4) The council 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 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
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) In making the determination pursuant to subdivision (c), the
council shall determine the appropriate weight to be assigned to
adverse impacts to air quality or greenhouse gas emissions as
compared to adverse impacts to biological resources or water quality.
(e) Benefits resulting from the contribution of cost savings to
the endowment shall not be considered in the determination of net
environmental benefit.
(f) The council 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.
(g) 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.
(h) 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. 4. Section 6614 of the Fish and Game Code is amended to read:
6614. (a) Upon certification of the appropriate environmental
documents, the commission 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 shall ensure that any cost savings are
accurately and reasonably calculated. The commission 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 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 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 determination of cost savings and any other
estimates of cost savings the commission considered.
(d) The applicant shall provide all necessary documentation, as
determined by the commission, to allow the commission to calculate
the amount of cost savings. Failure to provide information requested
by the commission 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.
(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. 5. 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
and environmental document pursuant to the California Environmental
Quality Act.
(c) Hold public hearings for comment on the application and
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. 6. 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 Safety and Environmental Enforcement of the United States
Department of the Interior.
SEC. 7. Section 6618 of the 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 applicant shall apportion and directly transmit a portion of the
total amount of the cost savings to the department as follows:
(1) Fifty-five percent, if transmitted before January 1,
____. 2017.
(2) Sixty-five percent, if transmitted on or after January 1,
____, 2017, and before January 1,
____. 2023.
(3) Eighty percent, if transmitted on or after January 1,
____. 2023.
(c) Of the total amount of the cost savings to be transmitted
pursuant to subdivision (b), the 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.
