SB 1295 — Oil and gas: hazardous or deserted wells and facilities: labor standards: expenditure limits: reports.

Summary

Existing law establishes the Geologic Energy Management Division in the Department of Conservation, under the direction of the State Oil and Gas Supervisor, to regulate the drilling, operation, maintenance, and abandonment of oil or gas wells in the state. Existing law establishes the Oil, Gas, and Geothermal Administrative Fund in the State Treasury for expenditure by certain public entities in connection with various activities relating to oil and gas operations, as specified. Existing law authorizes the supervisor to order certain operations to be carried out on any property in the vicinity of which, or on which, is located any well or facility that the supervisor determines to be a hazardous well, an idle-deserted well, a hazardous facility, or a deserted facility, as specified. Existing law also establishes and requires the division to administer and manage the Oil and Gas Environmental Remediation Account in the Oil, Gas, and Geothermal Administrative Fund. Existing law requires moneys in the account to be used, upon appropriation by the Legislature, to plug and abandon oil and gas wells, decommission attendant facilities, or otherwise remediate sites that the supervisor determines could pose a danger to life, health, water quality, wildlife, or natural resources, as specified. Existing law prohibits the division from expending more than $3,000,000 in any one fiscal year, for the 2018–19 fiscal year to the 2021–22 fiscal year, inclusive, and, commencing with the 2022–23 fiscal year, no more than $5,000,000 in any one fiscal year from the Oil, Gas, and Geothermal Administrative Fund for those purposes related to hazardous wells, idle-deserted wells, hazardous facilities, and deserted facilities. This bill would instead prohibit the division from expending, commencing with the 2022–23 fiscal year, more than $5,000,000, and, in addition, (1) the amount actually expended by the division in the preceding fiscal year, not to exceed $7,500,000, from the dedicated General Fund appropriation for the 2022–23 fiscal year for the purposes of plugging and abandoning wells, decommissioning facilities, and site remediation, and (2) the amount actually expended by the division in the preceding fiscal year, not to exceed $7,500,000, from the dedicated General Fund appropriation for the 2023–24 fiscal year, only if there is a dedicated General Fund appropriation for the 2023–24 fiscal year for the purposes of plugging and abandoning wells, decommissioning facilities, and site remediation. The bill would also require the Controller, commencing with the 2023–24 fiscal year, in any fiscal year that the division makes expenditures that are less than the amount appropriated, to transfer from the Oil, Gas, and Geothermal Administrative Fund to the Oil and Gas Environmental Remediation Account an amount equal to the difference between what was appropriated and what was expended by the division for that fiscal year, unless there is more than $200,000,000 in the account. The bill would also provide that the expenditure limits in these provisions do not apply to funds received by the Oil, Gas, and Geothermal Administrative Fund pursuant to a federal grant authorized under the federal Infrastructure Investment and Jobs Act. Existing law defines "public works," for purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement. This bill would deem all work to plug and abandon wells, decommission production facilities, or otherwise remediate well sites that is undertaken, funded, or financed by the division, as specified, and performed by outside contractors to be public work for which prevailing wages are required to be paid. The bill would require, not later than June 30, 2024, the California Workforce Development Board to consult with the division in developing and implementing the Oil and Gas Well Capping Pilot initiative established pursuant to the Budget Act of 2022 to assist state-registered apprenticeship programs in creating curriculum for training apprentices and to upskill journeypersons on well capping projects. The bill would require the division, when contracting on or after January 1, 2028, for the performance of construction, alteration, demolition, installation, repair, or work to ensure that all entities selected for these projects enter into a project labor agreement, as defined, that will bind all of the contractors performing work on the project. The bill would also require, for contracts that are awarded, extended, or renewed on or after January 1, 2028, and for specified work performed by contractors licensed by the Contractors State License Board, including the plugging and abandonment of wells, decommissioning of production facilities, or otherwise remediating well sites, that contractors and any subcontractors at every tier use a skilled and trained workforce, as defined, to perform all work within an apprenticeable occupation, as defined, in the building and construction trades, as defined. The bill would require the division to develop a procurement process to group multiple projects, as specified. The bill would also make other changes relating to workforce development. Because the willful violation of prevailing wage requirements when engaged in these public works projects would result in the imposition of misdemeanor penalties, this bill would impose a state-mandated local program. Existing law requires the supervisor to make public, on or before the first day of October of each year, a report in writing showing, among other things, the total amounts of oil and gas produced in each county in the state during the previous calendar year and the total cost of the division for the previous fiscal year. This bill would also require the supervisor to include in the report on the total cost of the division for the previous fiscal year an accounting of any General Fund moneys appropriated and used for plugging and abandonment of wells, decommissioning of facilities, and site remediation, or appropriated and used to facilitate those activities. Existing law requires the supervisor, only until July 1, 2026, to prepare and transmit to the Legislature a comprehensive report on the status of idle and long-term idle wells for the preceding calendar year, as specified. This bill would instead make that requirement operative indefinitely. 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 no reimbursement is required by this act for a specified reason.

Bill Text

• Chaptered 09/29/22 - Chaptered Current pdf September 29, 2022
• Enrolled 09/08/22 - Enrolled pdf September 08, 2022
• Amended 08/25/22 - Amended Assembly pdf August 25, 2022
• Amended 05/19/22 - Amended Senate pdf May 19, 2022
• Amended 03/16/22 - Amended Senate pdf March 16, 2022
• Introduced 02/18/22 - Introduced pdf February 18, 2022
• SB1295 View text html

Action History

1. September 29, 2022

   Chaptered by Secretary of State. Chapter 844, Statutes of 2022.

2. September 29, 2022

   Approved by the Governor.

3. September 13, 2022

   Enrolled and presented to the Governor at 3 p.m.

4. August 31, 2022

   Assembly amendments concurred in. (Ayes 29. Noes 9. Page 5420.) Ordered to engrossing and enrolling.

5. August 31, 2022

   In Senate. Concurrence in Assembly amendments pending.

6. August 31, 2022

   Read third time. Passed. Ordered to the Senate.

7. August 25, 2022

   Ordered to third reading.

8. August 25, 2022

   Read third time and amended.

9. August 15, 2022

   Read second time. Ordered to third reading.

10. August 11, 2022

    From committee: Do pass. (Ayes 12. Noes 4.) (August 11).

11. August 03, 2022

    August 3 set for first hearing. Placed on suspense file.

12. June 21, 2022

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 3.) (June 20). Re-referred to Com. on APPR.

13. June 02, 2022

    Referred to Com. on NAT. RES.

14. May 26, 2022

    In Assembly. Read first time. Held at Desk.

15. May 25, 2022

    Read third time. Passed. (Ayes 24. Noes 9. Page 3905.) Ordered to the Assembly.

16. May 23, 2022

    Read second time. Ordered to third reading.

17. May 19, 2022

    Read second time and amended. Ordered to second reading.

18. May 19, 2022

    From committee: Do pass as amended. (Ayes 5. Noes 2. Page 3791.) (May 19).

19. May 13, 2022

    Set for hearing May 19.

20. April 18, 2022

    April 18 hearing: Placed on APPR suspense file.

21. April 07, 2022

    Set for hearing April 18.

22. April 05, 2022

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 1. Page 3327.) (April 5). Re-referred to Com. on APPR.

23. March 25, 2022

    Set for hearing April 5.

24. March 23, 2022

    Re-referred to Com. on N.R. & W.

25. March 16, 2022

    From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.

26. March 02, 2022

    Referred to Com. on RLS.

27. February 22, 2022

    From printer.

28. February 18, 2022

    Article IV Section 8(a) of the Constitution and Joint Rule 55 dispensed with February 7, 2022, suspending the 30 calendar day requirement.

29. February 18, 2022

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

• Monique Limón · Primary
• Benjamin Allen · Cosponsor
• Josh Becker · Cosponsor
• Hertzberg · Cosponsor
• Kamlager · Cosponsor
• John Laird · Cosponsor
• Mike McGuire · Cosponsor
• Henry I. Stern · Cosponsor
• Wieckowski · Cosponsor

Votes

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