LEGISLATION COMMITTEE
Meeting Date: April 16, 2024
Subject: AB 3233 (Addis) Oil and Gas: Operations: Restrictions: Local Authority
Submitted For: Legislation Committee
Department: County Administrator’s Office
Referral No:
Referral Name: AB 3233 (Addis)
Presenter: L. DeLaney
Contact: (925) 655-2057
Referral History:
AB 3233 (Addis) was brought to the attention of the Committee staff through a referral from Supervisor Gioia’s office. The Board’s adopted 2023-24 State Legislative Platform contains the following related policies:
“MAINTAIN local agency land use authority.” (p. 26)
“SUPPORT actions that…reduce exposure to toxic air pollutants and greenhouse gases…” (p.9)
“OPPOSE actions that result in reduced level of services to families, children, adults and seniors, or that lead to preemption of local control.” (p. 21)
“SEEK more robust local regulatory and enforcement authority relative to the storage, transport, processing, recovery, and disposal of hazardous or solid waste within our jurisdictional boundaries.” (p. 30)
Referral Update:
See Attachment A for the bill text of AB 3233. The Committee analysis of the bill is as follows:
Date of Hearing: April 8, 2024
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Isaac G. Bryan, Chair
AB 3233 (Addis) - As Amended March 21, 2024
SUBJECT: Oil and gas: operations: restrictions: local authority.
SUMMARY: Authorizes a local entity, by ordinance, to limit or prohibit oil and gas operations or development in its jurisdiction, as provided, notwithstanding any other law or any notice of intention, supplemental notice, well stimulation permit, or similar authorization issued by the supervisor or district deputy.
EXISTING LAW:
1) Establishes the Geologic Energy Management Division (CalGEM) in the Department of Conservation under the direction of the State Oil and Gas Supervisor (supervisor), who is required to supervise the drilling, operation, maintenance, and abandonment of oil and gas wells. (Public Resources Code (PRC) 3000 et seq.)
2) Requires the supervisor to supervise the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities attendant to oil and gas production. (PRC 3106)
3) Requires CalGEM to make all public information collected or maintained by CalGEM, including well records, well logs, notices of intention (NOI), notice of violation, supplementary notices, field reports, inspection reports, and correspondence, and requires CalGEM to develop and implement an education and outreach program to provide training to local governmental entities on materials collected and maintained by CalGEM related to oil and gas operations. (PRC 3115)
4) Requires the owner of any well to file a monthly statement with the supervisor that provides certain information relating to the well, including the source, volume, treatment, and disposition of water produced in oil and gas activities. (PRC 3227)
5) Authorizes the state to obtain primary enforcement responsibility for regulating the underground injection of fluids associated with oil and gas production through the state’s own state underground injection control program. (Federal Safe Drinking Water Act 1425)
6) Requires the State Water Resources Control Board to develop model groundwater monitoring criteria, to be implemented either on a well-by-well basis for a well subject to well stimulation treatment or on a regional scale. Provides that the model criteria for either a well-by-well basis for a well subject to well stimulation treatment, or for a regional groundwater monitoring program, shall be used to satisfy the permitting requirements for well stimulation treatments (WST) on oil and gas wells pursuant to PRC 3160. (Water Code 10783)
7) Pursuant to Governor Newsom’s direction, requires the State Air Resources Board (ARB) to evaluate how to phase out oil extraction by 2045 through the climate change scoping plan, the state’s comprehensive, multi-year regulatory and programmatic plan to achieve required reductions in greenhouse gas (GHG) emissions. (Executive Order N-79-20)
8) Authorizes a county or city to make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general laws. (Article XI, section 7 of the California Constitution)
THIS BILL:
1) Revises the stated purposes of the Division of Oil and Gas operation regulation to include preserving California’s air, water, environment, natural resources, and advancing the state’s climate goals, and requires CalGEM to minimize harm from oil and gas operation activities.
2) Authorizes, notwithstanding any other law, and notwithstanding any NOI, supplemental notice, well stimulation permit, or similar authorization issued by the supervisor or district deputy, a local entity to, by ordinance, prohibit oil and gas operations in its jurisdiction or impose regulations, limits, or prohibitions on oil and gas development that are more protective of public health, the climate, or the environment than those prescribed by a state law, regulation, or order.
3) Authorizes these limitations or prohibitions to include, but not be limited to, limitations or prohibitions related to the methods of oil and gas operations and the locations of oil and gas operations.
4) Requires, if a local entity limits or prohibits oil and gas operations of an owner or operator, the owner or operator to be responsible for plugging and abandoning its wells, decommissioning attendant production facilities, and related measures, pursuant to the rules of the oil and gas statutory division.
5) Defines, for purposes of this bill, “local entity” as a city, county, or city and county.
6) Provides that the provisions of this bill are severable. If any provision of this act 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.
FISCAL EFFECT: Unknown
COMMENTS:
1) Author’s statement:
Pollution from oil and gas production causes grave harm to our health, climate, and environment. For more than a century, cities and counties have protected their residents’ health and safety by deciding whether, where, and under what conditions to allow oil and gas projects to operate. As California transitions away from its dependency on fossil fuels, more cities and counties have introduced ordinances to ban oil and gas operations. Assembly Bill 3233 uplifts the voices of our local communities by codifying their right to enact these policies.
2) Oil production in CA. Oil production began in earnest in California in the late 1800s. In 1929, at the peak of oil development in the Los Angeles Basin, California accounted for more than 22% of total world oil production. California’s oil production reached an all-time high of almost 400 million barrels in 1985 and has generally declined 2.2% annually since then. Despite that decline, California remains the third largest oil and gas producing state, and as of 2022, produced 3% of the crude oil of the nation. That same year, California supplied about 26% of all oil going into the state’s 17 oil refineries.
CalGEM has jurisdiction over more than 242,000 wells, including nearly 101,300 defined as active or idle oil producers. CalGEM's authority extends from onshore to three miles offshore.
About 112,000 people are employed in California’s fossil fuel-based industries, amounting to about 0.6% the state’s total workforce in 2019. The total job figure includes oil and gas extraction operations, as well as support activities for all oil and gas projects, and other ancillary sectors, such as fossil fuel-based power generation. According to the Western States Petroleum Association, the petroleum industry paid $26 billion in wages and benefits in California to employees doing research, exploration, production and shipping, refining, delivery, sales, and company operations.
3) State oversight of oil & gas production. In 1915, the Legislature created what is now CalGEM to ensure the safe development and recovery of energy resources. CalGEM is charged with protecting public health, safety, and the environment as it oversees and regulates the drilling, operation, and eventual permanent closure of oil, gas, and geothermal wells. The supervisor has broad authority to supervise the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities attendant to oil and gas production. The supervisor is also equipped with authority to oversee the operation of wells and the methods to increase oil and gas extraction.
Further, CalGEM administers state regulations for the permitting, drilling, inspecting, testing, and sealing of underground injection wells, which covers two types of wells: 1) those that inject water or steam for enhanced oil recovery and 2) those that return the briny groundwater that comes up from oil formations during production-typically unusable for drinking or agriculture-back into the underground source from which it came.
4) Local oversight. Depending on the well location and other factors, the jurisdictional powers of a local government vary. Some jurisdictions have taken action to confirm their authority through ordinances or local ballot measures.
In 2014, San Benito County voters approved Measure J with 58.9% of the vote to prohibit hydraulic fracturing and related gas and oil extraction activities, as well as other "high-intensity petroleum operations," including acid well stimulation and cyclic steam injection. Measure J also banned any new gas or oil drilling activity - even conventional, low-intensity activity - in areas of the county zoned for residential or rural land use.
Citadel Exploration’s plan to drill up to 1,000 steam-injection wells at its Bitterwater oilfield, was prevented by Measure J. Citadel filed a lawsuit against the county almost immediately after Measure J was approved, claiming that local governments in California do not have the authority to ban fracking. Ultimately, Citadel dropped the lawsuit.
In 2021, Culver City adopted an ordinance to prohibit the drilling of any new or re-drilling of any existing oil wells within the Culver City portion of the Inglewood Oil Field and require the phasing out, plugging and restoration of all existing oil and gas wells by no later than November 24, 2026. Sentinel Peak Resources California LLC challenged the ordinance, and on December 7, 2023, Culver City and Sentinel executed a Settlement Agreement to resolve Sentinel’s potential legal claims relating to the City’s Oil Termination Ordinance. Under the agreement, Sentinel must plug and abandon a minimum of 15 wells by December 31, 2027, at a rate of a minimum of three wells per calendar year over the five-year period between 2023-2027.
Also in 2021, in response to the September 15, 2021, motion by the Los Angeles (LA) County Board of Supervisors, LA County Planning prepared an ordinance to amend Title 22 - Planning and Zoning of the Los Angeles County Code. For the unincorporated areas of LA County, the proposed ordinance prohibits new oil wells and production facilities in all zones, designates existing oil wells and production facilities as nonconforming uses in all zones, and establishes regulations for existing oil wells and production facilities.
In 2015, after Monterey County Supervisors rejected a fracking moratorium in 2015, local residents drafted an initiative to ban fracking and limit certain oil operations. The resultant Measure Z sought to do several things: ban fracking, acidizing, and other WSTs; ban new wastewater injection wells and wastewater ponds and phase out existing wastewater injection wells and ponds; and, ban new oil and gas wells within Monterey County. The initiative did not cover Monterey County’s 1,500+ existing oil and gas wells. Measure Z won with 56% of the votes on November 8, 2016.
While there is no fracking in Monterey County, Measure Z’s other two provisions, banning wastewater injection and impoundment and drilling new wells, would have dramatically reduced oil production in Monterey County.
On December 14, 2016, Chevron filed a petition for writ of mandate and complaint, alleging, among other things, that Measure Z is preempted by state and federal law and would result in an unconstitutional taking of their property.
On January 25, 2018, the superior court filed its statement of decision. (31:AA.7545-7593.) In relevant part, the superior court concluded Policies LU-1.22 and LU-1.23 are each preempted by state and federal law.
In particular, the Superior Court found that Measure Z was contrary to the express state policy set forth in PRC 3106, which mandates that the supervisor to permit the owners or operators of the wells to utilize all methods and practices known to the oil and gas industry for the purpose of increasing the ultimate recovery of underground hydrocarbons.
The Supreme Court granted review to decide whether PRC 3106 preempts Measure Z and concluded it does because Measure Z is contradictory to, and therefore conflicts with, PRC 3106.
5) This bill. AB 3233 affirms local control over oil and gas operations by authorizing a local entity to, by ordinance, prohibit oil and gas operations or development in its jurisdiction or impose regulations, limits, or prohibitions on oil and gas operations or development that are more protective of public health, the climate, or the environment than those prescribed by a state law, regulation, or order. It authorizes those limitations or prohibitions to cover methods of oil and gas operations or development and the locations of oil and gas operations or development.
Notably, this bill is permissive, not mandatory. It extends authority to local jurisdictions to regulate oil and gas operations in accordance with the public health and environmental needs of their communities, and maintains state regulatory oversight where local control is not enacted.
6) Double referral. This bill is also referred to the Utilities and Energy Committee.
REGISTERED SUPPORT / OPPOSITION:
Support
1000 Grandmothers for Future Generations
350 Bay Area Action
350 Conejo / San Fernando Valley
350 Humboldt
350 Petaluma
350 Sacramento
350 Santa Barbara
Acterra: Action for A Healthy Planet
Asian Pacific Environmental Network
Azul
Bay Area-system Change Not Climate Change
Bicycling Monterey
Black Women for Wellness Action Project
California Climate Voters
California Environmental Voters
California Nurses for Environmental Health & Justice
California Youth Versus Big Oil
Californians for Disability Rights INC
Center for Biological Diversity
Center for Community Action and Environmental Justice
Center for Food Safety; the
Center on Race, Poverty & the Environment
Central California Environmental Justice Network
Central Coast Alliance United for A Sustainable Economy
Central Coast Environmental Voters
Central Valley Air Quality Coalition
Central Valley Partnership
CERBAT
Cleanearth4kids.org
Climate Action California
Climate Breakthrough
Climate First: Replacing Oil & Gas
Climate Hawks Vote
Climate Health Now
Climate Reality Bay Area
Climate Reality Project Riverside County Chapter
Climate Reality Project, California Coalition
Climate Reality Project, Monterey Bay Chapter
Climate Reality Project, San Fernando Valley
Climatebrunch
Coalition for Clean Air
Communities for A Better Environment
Consumer Watchdog
Corporate Ethics International
Earthjustice
Earthworks
Eco Equity
Eco Team
Ecology Center
Elders Climate Action Northern California Chapter
Elders Climate Action Southern California Chapter
Elected Officials to Protect America - Code Blue
Endangered Habitats League
Environmental Defense Center
Environmental Protection Information Center
Environmental Working Group
Esperanza Community Housing
Extinction Rebellion San Francisco Bay Area
Food & Water Watch
Fossil Free California
Fractracker Alliance
Fresnans Against Fracking
Fridays for Future Fresno
Fridays for Future Sacramento
Friends of The Earth
Glendale Environmental Coalition
Good Neighbor Steering Committee of Benicia
Greenaction for Health and Environmental Justice
Greenpeace USA
Harvey Milk LGBTQ Democratic Club
Holman United Methodist Church
Idle No More Sf Bay
Indivisible Marin
Indivisible San Francisco
Indivisible San Jose
Indivisible South Bay LA
LA Jolla Environmental Action
Local Clean Energy Alliance
Los Padres Forestwatch
Manhattan Beach Huddle
Methane Action
MLK Coalition of Greater Los Angeles
Mothers Out Front
Natural Resources Defense Council
Nextgen California
Oil & Gas Action Network
Oil Change International
Pacific Environment
Physicians for Social Responsibility - Los Angeles
Physicians for Social Responsibility - Sacramento Chapter
Planning and Conservation League
Protect Monterey County
Protect Playa Now!
Queers X Climate
Redeemer Community Partnership
Rising Communities
Rootsaction.org
San Diego350
San Francisco Bay Physicians for Social Responsibility
San Francisco Baykeeper
San Joaquin Valley Democratic Club
Santa Barbara Standing Rock Coalition
Santa Cruz Climate Action Network
Sequoia Forestkeeper
Sierra Club California
Society of Fearless Grandmothers - Santa Barbara
Stand Together Against Neighborhood Drilling
Stand.Earth
Sunrise Movement LA
Sunrise Santa Barbara
Sustainable Mill Valley
The Climate Alliance of Santa Cruz County
The Climate Center
The Climate Reality Project Los Angeles Chapter
The Climate Reality Project Orange County Chapter
The Climate Reality Project: Silicon Valley
The Phoenix Group
Voting 4 Climate & Health
West Berkeley Alliance for Clean Air and Safe Jobs
Women's Earth and Climate Action Network
Youth for Earth
Youth Vs. Oil
Opposition
Western States Petroleum Association
Analysis Prepared by: Paige Brokaw / NAT. RES. /
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History |
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04/09/2024 From committee: Do pass and re-refer to Com. on U. & E. (Ayes 8. Noes 3.) (April 8). Re-referred to Com. on U. & E. |
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04/01/2024 Re-referred to Com. on NAT. RES. |
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03/21/2024 Referred to Coms. on NAT. RES. and U. & E. From committee chair, with author's amendments: Amend, and re-refer to Com. on NAT. RES. Read second time and amended. |
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02/17/2024 From printer. May be heard in committee March 18. |
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02/16/2024 Read first time. To print. |
Recommendation(s)/Next Step(s):
CONSIDER finding AB 3233 consistent with the adopted 2023-24 State Legislative Platform or recommending a position of “Support” to the Board of Supervisors on their May 14, 2023 agenda.
Fiscal Impact (if any):