Bill Text: CA AB1323 | 2013-2014 | Regular Session | Amended


Bill Title: Oil and gas: hydraulic fracturing.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-05-30 - Read third time. Refused passage. (Ayes 24. Noes 37. Page 1849.). [AB1323 Detail]

Download: California-2013-AB1323-Amended.html
BILL NUMBER: AB 1323	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 28, 2013
	AMENDED IN ASSEMBLY  MAY 8, 2013
	AMENDED IN ASSEMBLY  MARCH 21, 2013

INTRODUCED BY   Assembly Member Mitchell

                        FEBRUARY 22, 2013

   An act to add Sections 3017 and 3203.5 to the Public Resources
Code, relating to oil and gas.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1323, as amended, Mitchell. Oil and gas: hydraulic fracturing.

   (1) Under 
    Under  existing law, the Division of Oil, Gas, and
Geothermal Resources in the Department of Conservation regulates the
drilling, operation, maintenance, and abandonment of oil and gas
wells in the state. The State Oil and Gas  Supervisor,
referred to as the supervisor,   Supervisor 
supervises the drilling, operation, maintenance, and abandonment of
wells and the operation, maintenance, and removal or abandonment of
tanks and facilities related to oil and gas production within an oil
and gas field regarding safety and environmental damage. Existing law
requires an operator of a well, before commencing the work of
drilling the well, to obtain approval from the supervisor or a
district deputy. Violation of these provisions is a misdemeanor.
   This bill would define "hydraulic fracturing" in oil and gas
operations and would prohibit hydraulic fracturing until the 
completion of a report, as specified, and a determination is made
that hydraulic fracturing can be conducted without a risk to the
public health and welfare, environment, or the economy of the state.
A violation of this prohibition would be a misdemeanor. By creating a
new crime, this bill would impose a state-mandated local program.
The bill would also express the intent of the Legislature to, among
other things, protect the public health and welfare, natural and
environmental resources, and economic interest of the state 
 date that regulations adopted by the division regulating
hydraulic fracturing take effect. Because a violation of this
prohibition is a crime, this bill would impose a state-mandated local
program  . 
   (2) Existing law establishes the Natural Resources Agency
consisting of various entities, departments, and boards. Existing law
also establishes the California Environmental Protection Agency
consisting of various entities, departments, and boards. 

   This bill would require the Secretary of the Natural Resources
Agency and the Secretary for Environmental Protection to (A) convene
an advisory committee, by July 1, 2014, to develop a report relating
to hydraulic fracturing, as specified; (B) to complete the report on
or before January 1, 2016, and provide a copy to the Governor and the
Legislature on or before that date; and (C) to make a determination,
as specified, not later than January 1, 2019, as to whether and
under what conditions hydraulic fracturing is permitted within the
state. 
   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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) It is the intent of the Legislature in enacting this act to
protect the public health and welfare, natural and environmental
resources, and the economic value of private and public property in
the state.
   (b) The Legislature recognizes that hydraulic fracturing poses
serious threats to California's air, water, climate, environment,
wildlife, and public health.
   (c) The Legislature further recognizes that hydraulic fracturing
is currently occurring in California with scarce monitoring or
regulation  ,  and almost completely undisclosed to
the people of the state.
   (d) Although some potential impacts from hydraulic fracturing are
currently under investigation by federal agencies, other states, and
academic and research institutions, no independent and scientific
investigations are being undertaken or have been completed in
California to examine the risks to the state's unique geologic,
geographic, atmospheric, and environmental conditions and resources.
   (e) There is scarce independent information, investigation, and
analysis regarding the tools and mechanisms available to assess the
risks and impacts of hydraulic fracturing and to protect the public
health and welfare ,  and the environmental
resources from these impacts.
   (f) The Legislature recognizes the immediate need to protect
against, and prepare for, the emergencies and impacts related to
hydraulic fracturing as well as the related activities that could
range from small localized events to far-reaching disasters with
complex consequences that could require the involvement and
coordination among many agencies. Mechanisms to ensure funding,
coordination, and equipment for response to these impacts are
urgently needed to be identified and adopted.
  SEC. 2.  Section 3017 is added to the Public Resources Code, to
read:
   3017.  "Hydraulic fracturing" means the injection of fluids or
gases into an underground geologic formation with the intention to
cause or enhance fractures in the formation, in order to cause or
enhance the production of oil or gas from a well. Alternate terms
include, but are not limited to, "fracking," "hydrofracking," and
"hydrofracturing."
  SEC. 3.  Section 3203.5 is added to the Public Resources Code, to
read:
   3203.5.  Hydraulic fracturing is prohibited until  all of
the following requirements are met:   the date that
regulations adopted by the division regulating hydraulic fracturing
take effect.  
   (a) (1) By July 1, 2014, the Secretary of the Natural Resources
Agency and the Secretary for Environmental Protection shall convene
an advisory committee to develop a report, based on the best
scientific information available, relating to hydraulic fracturing.
The advisory committee shall include two representatives from each of
the following:  
   (A) The California Environmental Protection Agency. 

   (B) The Natural Resources Agency.  
   (C) The State Department of Public Health.  
   (D) Environmental justice organizations.  
   (E) The agriculture industry.  
   (F) The oil and gas industry.  
   (G) Two academic researchers with experience in hydraulic
fracturing issues.  
   (H) Water agencies.  
   (2) The advisory committee shall address specific issues related
to hydraulic fracturing in the report, which shall include, but is
not limited to, all of the following:  
   (A) A description of hydraulic fracturing, and other enhanced oil
and gas recovery techniques.  
   (B) All potential health and environmental impacts related to
hydraulic fracturing, including, but not limited to, all of the
following:  
   (i) The handling and disposition of produced water or wastewater.
 
   (ii) Contamination of groundwater or surface water. 

   (iii) The supply and sources of water used in hydraulic fracturing
and its impact on the state, regional, and local water supply.
 
   (iv) Air quality impacts, including, but not limited to,
particulate and volatile organic compound and methane releases.
 
   (v) Impacts on climate change and emissions of greenhouse gases,
including the goals set in the California Global Warming Solutions
Act of 2006 (Division 25.5 (commencing with Section 38500) of the
Health and Safety Code). 
   (vi) The potential for migration of gases and fluids through
geologic formations.  
   (vii) The potential for generating seismic activity, both as a
result of increased hydraulic fracturing and the disposal of produced
wastewater into underground injection wells.  
   (viii) The use, handling, and accidental spill of chemicals used
in hydraulic fracturing.  
   (ix) Impacts on endangered species and their habitat. 

   (C) All potential economic impacts of increased hydraulic
fracturing operations and other enhanced oil and gas recovery methods
in the state.  
   (D) All potential effects on communities most likely to be
negatively affected by the impacts of hydraulic fracturing. 

   (E) A review of the regulations affecting hydraulic fracturing and
an analysis of whether these are adequate to address the issues
identified in this report.  
   (F) Recommendations for emergency planning and mechanisms
necessary to ensure adequate and fully funded responses to
emergencies related to hydraulic fracturing operations. 

   (G) Recommendations for regulatory and statutory changes needed to
address the issues covered in the report.  
   (3) The advisory committee shall develop the report in the context
of current and foreseeable hydraulic fracturing operations in the
state, such as potential operations in the Monterey shale and
northern California gas reservoirs.  
   (b) Prior to finalizing the report, the Secretary of the Natural
Resources Agency and the Secretary for Environmental Protection shall
seek independent peer review by persons of the scientific and
academic community commonly acknowledged to be experts on the
subjects under consideration and possessing the knowledge and
expertise to critique the scientific validity of the report.
 
   (c) A draft of the final report shall be made available for public
comment for a period of no less than 120 days.  
   (d) The final report shall be completed on or before January 1,
2016, and a copy shall be provided to the Governor and the
Legislature by the Secretary of the Natural Resources Agency and the
Secretary for Environmental Protection on or before that date.
 
   (e) Upon completion of the report, the Secretary of the Natural
Resources Agency and the Secretary for Environmental Protection shall
make a determination not later than January 1, 2019, as to whether,
and under what conditions, hydraulic fracturing is permitted within
the state. The determination shall be made only after measures are in
place to ensure that any activities related to hydraulic fracturing
do not pose a risk to the public health and welfare, environment, or
economy of the state. 
  SEC. 4.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
                  
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