Coastal resources: oil and gas development.

Plain English Breakdown

The official source material does not provide specific details on the timeline for implementation and impact assessment.

Coastal Resources: Oil and Gas Development

This bill changes rules about oil and gas development near California's coast, requiring stricter processes for lease renewals, extensions, amendments, modifications, or assignments, and adding factors that local trustees must consider when approving leases.

What This Bill Does

• Requires the State Lands Commission to follow a specific process when approving or disapproving lease renewals, extensions, amendments, modifications, or assignments related to oil and gas development near coastal waters.
• Adds more factors that local trustees must consider when deciding whether to approve or deny leases for new construction of oil and gas infrastructure.
• Requires the onshore transportation of offshore oil to use the best available technology instead of allowing alternative methods.
• Revises the definition of 'expanded oil extraction' to include reactivating old facilities after a long period of inactivity, requiring a new coastal development permit if these changes happen.
• Makes it necessary for companies to get a new coastal development permit when repairing, reactivating, or maintaining an idle oil and gas facility.

Who It Names or Affects

• Oil and gas companies that want to build new infrastructure near the coast or reactivate old facilities.
• Local trustees who manage public trust lands and must follow stricter rules for approving leases.
• The State Lands Commission which oversees coastal development permits.

Terms To Know

Coastal Development Permit

A permit required by the California Coastal Act to build or expand oil and gas facilities near the coast.

Expanded Oil Extraction

Includes reactivating old oil and gas facilities after a long period of inactivity, or using new drilling techniques like hydraulic fracturing.

Limits and Unknowns

• The bill does not specify when it will take effect.
• It is unclear how much the changes will impact existing oil and gas operations near coastal areas.
• Local governments may need to adjust their programs to comply with new state mandates, but no specific timeline or support for this adjustment is provided.

Official Summary Text

AB 1448, as amended, Hart.
Coastal resources: oil and gas development.
Existing law prohibits the State Lands Commission or a local trustee, as defined, of granted public trust lands from entering into a new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018. Existing law requires the commission or a local trustee when approving or disapproving a lease renewal, extension, amendment, or modification authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018, to follow a specified process. Existing law provides that these provisions do not prevent specified activities, including, among others, issuance by the commission of leases
pursuant to exceptions applicable to the California Coastal Sanctuary.
This bill would specify that the requirement regarding approval or disapproval of a lease renewal, extension, amendment, or modification also applies to a lease assignment. The bill would additionally require the commission or the local trustee, in considering approval or disapproval, to consider additional factors, as specified. By imposing additional duties on local trustees in the consideration of a lease renewal, extension, amendment, assignment, or modification, this bill would impose a state-mandated local program.
The California Coastal Act of 1976 requires a person wishing to perform or undertake any development in the coastal zone to obtain a coastal development permit. The act encourages coastal-dependent industrial facilities to locate or expand within existing sites and requires that facilities be permitted reasonable
long-term growth, as provided. The act specifies that new or expanded oil and gas development is not to be considered a coastal-dependent industrial facility and is to be permitted only if it is consistent with the act and meets certain requirements, including a requirement that oil produced offshore is to be transported onshore by pipeline using the best achievable technology, as defined, and onshore transport of the oil to processing and refining facilities by pipeline. The act applies the pipeline requirements on new or expanded oil extraction operations, and defines terms for these purposes, including the term “expanded oil extraction.” The act authorizes the transport of the oil by other modes of transportation if certain conditions are met.
This bill would require the onshore transportation of the oil to processing and refining facilities to use the best available technology, as provided. The bill would repeal authorization for the use of alternative modes of
transportation. The bill would revise the definition of “expanded oil extraction” to include reactivation of a facility idled, inactive, or out of service for more than
3
5
years, or an increase in oil extraction from the use of hydraulic fracturing, extended reach drilling, acidization, or other unconventional technologies.
The act authorizes the repair and maintenance of an existing oil and gas facility to be permitted as a coastal-dependent industrial facility if certain requirements are met.
The bill would require a person to obtain a new coastal development permit for the repair, reactivation, and maintenance of an oil and gas
facility
facility, including an oil pipeline,
that has been idled, inactive, or out of service for 5 years or more.
Because the bill would impose additional duties on a local government with a certified local coastal program in processing and reviewing an application for a coastal development permit, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.
With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that
the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Current Bill Text

Download Bill PDF