6610. (a) An owner or operator, or other party responsible for
decommissioning, of an offshore oil structure may apply to the
department for approval to partially remove the structure pursuant to
the requirements of this chapter.
(b) The department shall design and make available to potential
applicants an application process that will facilitate review of the
application by the department in a timely manner, consistent with
Section 6604.
(c) Upon receipt of an application pursuant to this section, the
department shall transmit a copy of the application to the council,
the commission, and the endowment, which shall constitute notice to
these agencies.
6611. (a) The application for partial removal shall include, at a
minimum, all of the following:
(1) The applicant's plan and schedule for partial removal of the
offshore oil structure, including removal of any portion of the
structure as appropriate to maintain navigational safety.
(2) A determination of the estimated cost of partial removal and
the estimated cost of full removal.
(3) A determination of the environmental impacts and benefits to
the marine environment from partial removal and full removal of the
structure.
(4) Identification of all permits, leases, and approvals required
by any governmental agency, including a permit issued by the United
States Army Corps of Engineers if required for offshore oil
structures, and a lease issued by the commission if the proposed
project involves state tidelands and submerged lands, and a proposed
schedule for the applicant or the state to receive those permits,
leases, and approvals.
(b) The department may require the applicant to submit a
management plan for the structure following partial removal,
including maintenance in a manner consistent with navigational
safety, enforcement, and monitoring.
(c) The information submitted pursuant to subdivisions (a) and (b)
shall be used by the department for advisory purposes only. Final
determinations regarding the partial removal and management of the
offshore oil structure, net benefit to the marine environment from
partial removal, and cost savings from partial removal shall be made
solely by the department, council, and commission, as specified in
this chapter, based on their independent review and judgment.
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, 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 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 reaching the agreement pursuant to
subdivision (b), the lead agency shall begin the environmental review
of the proposed project as required pursuant to Section 6604.
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 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 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,
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,
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) Benefits resulting from the contribution of cost savings to
the endowment shall not be considered in the determination of net
environmental benefit.
(e) 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.
(f) 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.
(g) 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.
6614. (a) Upon certification of the appropriate environmental
documents by the lead agency, 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.
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
pursuant to the California Environmental Quality Act.
(c) Hold a public hearing in the county nearest to the location of
the offshore oil structure that is the subject of the application.
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 Ocean Energy Management, Regulation and Enforcement of the United
States Department of the Interior.
6617. Upon a finding that all the requirements of Sections 6615 and
6616 have been met, the department shall grant conditional approval
to an application for partial removal of an offshore oil structure.
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 owner or operator of the structure shall apportion and directly
transmit a portion of the total amount of the cost savings to the
entities in subdivision (c) 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 applicant 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.
6619. Upon a determination by the department that the full amount
of cost savings has been transmitted pursuant to Section 6618, the
department shall grant final approval of the application for partial
removal of an offshore oil structure.
6620. The department shall not take title to a decommissioned
offshore oil structure in open coastal waters or take responsibility
for management of the structure pursuant to this article until
decommissioning and partial removal of the structure have been
completed and both of the following requirements are met:
(a) The partial removal of the structure has been granted final
approval by the department.
(b) The state is indemnified, as required in subdivision (f) of
Section 6616, from any liability that may result from approving the
partial removal of an offshore oil structure or any liability that
may result from the ownership of the structure.
6621. Upon the department's final approval of the first application
for partial removal of an offshore oil structure pursuant to Section
6619, the conservancy shall create an advisory spending plan for
cost savings deposited in the endowment, to provide the Board of
Directors of the California Endowment for Marine Preservation with
guidance on spending those funds. The conservancy shall update the
spending plan no less than once every five years, except the
conservancy shall also update the spending plan when each additional
application for partial removal is approved. The conservancy shall
submit a copy of the spending plan and all updates to the plan to the
Legislature, in accordance with Section 9795 of the Government Code,
and to the Board of Directors of the California Endowment for Marine
Preservation.
6610. (a) An owner or operator, or other party responsible for
decommissioning, of an offshore oil structure may apply to the
department for approval to partially remove the structure pursuant to
the requirements of this chapter.
(b) The department shall design and make available to potential
applicants an application process that will facilitate review of the
application by the department in a timely manner, consistent with
Section 6604.
(c) Upon receipt of an application pursuant to this section, the
department shall transmit a copy of the application to the council,
the commission, and the endowment, which shall constitute notice to
these agencies.
6611. (a) The application for partial removal shall include, at a
minimum, all of the following:
(1) The applicant's plan and schedule for partial removal of the
offshore oil structure, including removal of any portion of the
structure as appropriate to maintain navigational safety.
(2) A determination of the estimated cost of partial removal and
the estimated cost of full removal.
(3) A determination of the environmental impacts and benefits to
the marine environment from partial removal and full removal of the
structure.
(4) Identification of all permits, leases, and approvals required
by any governmental agency, including a permit issued by the United
States Army Corps of Engineers if required for offshore oil
structures, and a lease issued by the commission if the proposed
project involves state tidelands and submerged lands, and a proposed
schedule for the applicant or the state to receive those permits,
leases, and approvals.
(b) The department may require the applicant to submit a
management plan for the structure following partial removal,
including maintenance in a manner consistent with navigational
safety, enforcement, and monitoring.
(c) The information submitted pursuant to subdivisions (a) and (b)
shall be used by the department for advisory purposes only. Final
determinations regarding the partial removal and management of the
offshore oil structure, net benefit to the marine environment from
partial removal, and cost savings from partial removal shall be made
solely by the department, council, and commission, as specified in
this chapter, based on their independent review and judgment.
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, 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 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 reaching the agreement pursuant to
subdivision (b), the lead agency shall begin the environmental review
of the proposed project as required pursuant to Section 6604.
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 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 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,
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,
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) Benefits resulting from the contribution of cost savings to
the endowment shall not be considered in the determination of net
environmental benefit.
(e) 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.
(f) 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.
(g) 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.
6614. (a) Upon certification of the appropriate environmental
documents by the lead agency, 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.
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
pursuant to the California Environmental Quality Act.
(c) Hold a public hearing in the county nearest to the location of
the offshore oil structure that is the subject of the application.
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 Ocean Energy Management, Regulation and Enforcement of the United
States Department of the Interior.
6617. Upon a finding that all the requirements of Sections 6615 and
6616 have been met, the department shall grant conditional approval
to an application for partial removal of an offshore oil structure.
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 owner or operator of the structure shall apportion and directly
transmit a portion of the total amount of the cost savings to the
entities in subdivision (c) 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 applicant 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.
6619. Upon a determination by the department that the full amount
of cost savings has been transmitted pursuant to Section 6618, the
department shall grant final approval of the application for partial
removal of an offshore oil structure.
6620. The department shall not take title to a decommissioned
offshore oil structure in open coastal waters or take responsibility
for management of the structure pursuant to this article until
decommissioning and partial removal of the structure have been
completed and both of the following requirements are met:
(a) The partial removal of the structure has been granted final
approval by the department.
(b) The state is indemnified, as required in subdivision (f) of
Section 6616, from any liability that may result from approving the
partial removal of an offshore oil structure or any liability that
may result from the ownership of the structure.
6621. Upon the department's final approval of the first application
for partial removal of an offshore oil structure pursuant to Section
6619, the conservancy shall create an advisory spending plan for
cost savings deposited in the endowment, to provide the Board of
Directors of the California Endowment for Marine Preservation with
guidance on spending those funds. The conservancy shall update the
spending plan no less than once every five years, except the
conservancy shall also update the spending plan when each additional
application for partial removal is approved. The conservancy shall
submit a copy of the spending plan and all updates to the plan to the
Legislature, in accordance with Section 9795 of the Government Code,
and to the Board of Directors of the California Endowment for Marine
Preservation.
6610. (a) An owner or operator, or other party responsible for
decommissioning, of an offshore oil structure may apply to the
department for approval to partially remove the structure pursuant to
the requirements of this chapter.
(b) The department shall design and make available to potential
applicants an application process that will facilitate review of the
application by the department in a timely manner, consistent with
Section 6604.
(c) Upon receipt of an application pursuant to this section, the
department shall transmit a copy of the application to the council,
the commission, and the endowment, which shall constitute notice to
these agencies.
6611. (a) The application for partial removal shall include, at a
minimum, all of the following:
(1) The applicant's plan and schedule for partial removal of the
offshore oil structure, including removal of any portion of the
structure as appropriate to maintain navigational safety.
(2) A determination of the estimated cost of partial removal and
the estimated cost of full removal.
(3) A determination of the environmental impacts and benefits to
the marine environment from partial removal and full removal of the
structure.
(4) Identification of all permits, leases, and approvals required
by any governmental agency, including a permit issued by the United
States Army Corps of Engineers if required for offshore oil
structures, and a lease issued by the commission if the proposed
project involves state tidelands and submerged lands, and a proposed
schedule for the applicant or the state to receive those permits,
leases, and approvals.
(b) The department may require the applicant to submit a
management plan for the structure following partial removal,
including maintenance in a manner consistent with navigational
safety, enforcement, and monitoring.
(c) The information submitted pursuant to subdivisions (a) and (b)
shall be used by the department for advisory purposes only. Final
determinations regarding the partial removal and management of the
offshore oil structure, net benefit to the marine environment from
partial removal, and cost savings from partial removal shall be made
solely by the department, council, and commission, as specified in
this chapter, based on their independent review and judgment.
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, 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 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 reaching the agreement pursuant to
subdivision (b), the lead agency shall begin the environmental review
of the proposed project as required pursuant to Section 6604.
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 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 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,
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,
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) Benefits resulting from the contribution of cost savings to
the endowment shall not be considered in the determination of net
environmental benefit.
(e) 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.
(f) 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.
(g) 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.
6614. (a) Upon certification of the appropriate environmental
documents by the lead agency, 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.
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
pursuant to the California Environmental Quality Act.
(c) Hold a public hearing in the county nearest to the location of
the offshore oil structure that is the subject of the application.
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 Ocean Energy Management, Regulation and Enforcement of the United
States Department of the Interior.
6617. Upon a finding that all the requirements of Sections 6615 and
6616 have been met, the department shall grant conditional approval
to an application for partial removal of an offshore oil structure.
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 owner or operator of the structure shall apportion and directly
transmit a portion of the total amount of the cost savings to the
entities in subdivision (c) 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 applicant 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.
6619. Upon a determination by the department that the full amount
of cost savings has been transmitted pursuant to Section 6618, the
department shall grant final approval of the application for partial
removal of an offshore oil structure.
6620. The department shall not take title to a decommissioned
offshore oil structure in open coastal waters or take responsibility
for management of the structure pursuant to this article until
decommissioning and partial removal of the structure have been
completed and both of the following requirements are met:
(a) The partial removal of the structure has been granted final
approval by the department.
(b) The state is indemnified, as required in subdivision (f) of
Section 6616, from any liability that may result from approving the
partial removal of an offshore oil structure or any liability that
may result from the ownership of the structure.
6621. Upon the department's final approval of the first application
for partial removal of an offshore oil structure pursuant to Section
6619, the conservancy shall create an advisory spending plan for
cost savings deposited in the endowment, to provide the Board of
Directors of the California Endowment for Marine Preservation with
guidance on spending those funds. The conservancy shall update the
spending plan no less than once every five years, except the
conservancy shall also update the spending plan when each additional
application for partial removal is approved. The conservancy shall
submit a copy of the spending plan and all updates to the plan to the
Legislature, in accordance with Section 9795 of the Government Code,
and to the Board of Directors of the California Endowment for Marine
Preservation.
