California Assembly Bill AB2503 Amended / Bill

 BILL NUMBER: AB 2503AMENDED BILL TEXT AMENDED IN SENATE JUNE 21, 2010 AMENDED IN ASSEMBLY MAY 28, 2010 AMENDED IN ASSEMBLY APRIL 20, 2010 AMENDED IN ASSEMBLY APRIL 5, 2010 INTRODUCED BY Assembly Member John A. Perez FEBRUARY 19, 2010 An act to repeal Section 6429.5 of, and to repeal and add Article 2 (commencing with Section 6420) of Chapter 5 of Part 1 of Division 6 of, the Fish and Game Code, and to add Division 37 (commencing with Section 71500) to the Public Resources Code, relating to ocean resources. LEGISLATIVE COUNSEL'S DIGEST AB 2503, as amended, John A. Perez. Ocean resources: artificial reefs. Existing law establishes a California Artificial Reef Program, administered by the Department of Fish and Game, to include the placement of artificial reefs, as defined, in state waters and a prescribed study of existing successful reefs and new reefs to determine design criteria. This bill would repeal those provisions and, instead, would enact the California Marine Life Legacy Act to establish a program of artificial reef research and development, administered by the department. The act would authorize the department to  conditionally  approve the conversion of an offshore oil platform or production facility into an artificial reef, if specified criteria are satisfied, including a finding that the alternative of converting the decommissioned offshore oil platform or production facility into an artificial reef provides a net  environmental  benefit  to the environment   and substantial cost savings  compared to the alternative of removing the facilities. The act would require the  department   Ocean Protection Council  , for purposes of determining whether such a conversion provides a net environmental benefit, to determine criteria for biological evaluation of an oil platform or production facility for use as an artificial reef  and   ,  to consult with  and advise  the  department, the  California Coastal Commission, the State Lands Commission,  the California Ocean Service Trust  and other responsible agencies as to those criteria  , and would require that the conversion comply with the California Environmental Quality Act  . The act would require the  department   State Lands Commission  to determine the cost savings of a conversion, and would require the owner or operator, upon conditional approval for conversion, to apportion a percentage of the cost savings funds in accordance with a prescribed schedule to the California Endowment for Marine Preservation  and   ,  the county immediately adjacent to the location of the facility  , and the General Fund  . The act would authorize the department to take title to a decommissioned offshore oil platform or production facility in open coastal waters if prescribed requirements are met.  The act, until January 1, 2014, would establish an accelerated platform decommissioning program for the conversion of oil platforms or production facilities into artificial reefs, which would include expedited review and an alternate apportionment schedule.  The bill would establish the California Endowment for Marine Preservation, subject to the Nonprofit Public Benefit Corporation Law, in order to create a permanent source of funding for projects  and programs  that will conserve, protect, restore, and enhance the open coastal  and  marine resources of the state. The endowment would be governed by a board of directors, with membership and duties prescribed by the bill. The bill would require the endowment to coordinate its activities with the Department of Fish and Game, the California Coastal Commission, the San Francisco Bay Conservation and Development Commission, the State Lands Commission, and appropriate federal agencies.  The bill would require the endowment to allocate 10% of any funds received pursuant to the act to qualified state agencies within 24 months of receipt of the funds.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. It is the intent of the Legislature that the process for evaluating the proposed conversion of decommissioned offshore oil platforms and facilities into artificial reefs take into account  the findings and recommendations of the study being coordinated by the California Ocean Science Trust, with support from the California Ocean Protection Council and others, entitled "Study to Provide Information Related to Oil and Gas Platform Decommissioning Alternatives in California," which is due to be released in June 2010.   the findings and recommendations of the June 2010 study produced by the California   Ocean Science Trust, with support from the Ocean Protection Council and others, entitled "Evaluating Alternatives to Decommissioning California's Offshore Oil and Gas Platforms: A Technical Analysis to Inform State Policy."  SEC. 2. Article 2 (commencing with Section 6420) of Chapter 5 of Part 1 of Division 6 of the Fish and Game Code is repealed. SEC. 3. Article 2 (commencing with Section 6420) is added to Chapter 5 of Part 1 of Division 6 of the Fish and Game Code, to read: Article 2. California Marine Life Legacy Act 6420. The Legislature finds and declares all of the following: (a) This act shall be known, and may be cited, as the California Marine Life Legacy Act. (b) California's extraordinary marine biological diversity is a vital asset to the state and nation. The diversity of species and ecosystems found in the ocean waters off the state is important to public health and well-being, ecological health, and ocean-dependent industries. (c) A program of artificial reef research and development, including reef design, placement, and monitoring, is in the public interest and can best be accomplished under the administration of the department with the cooperation and assistance of the University of California, the California State University,  the State Lands Commission, the Ocean Protection Council,  the California Ocean Science Trust, other established, appropriate academic institutions, and other organizations with demonstrated expertise in the field. (d) This state is currently implementing a system of marine protected areas in order to protect habitat and ecosystems, conserve biological diversity, provide a sanctuary for fish and other sea life, enhance recreational and educational opportunities, and provide a reference point against which scientists can measure changes elsewhere in the marine environment, and may help rebuild depleted fisheries. (e) Efforts to enhance marine diversity through the placement of artificial reefs need to be investigated. (f) A state artificial reef research and construction program under the administration of the department is necessary to coordinate ongoing studies and construction of artificial reefs in waters of the state. (g) It is important to provide adequate funding to meet legislatively imposed mandates. 6421. For purposes of this article, the following terms have the following meanings: (a) "Artificial reef" means manmade or natural objects intentionally placed or allowed to remain in place in selected areas of the marine environment to  duplicate those   create  conditions that induce production of fish and invertebrates on natural reefs and rough bottoms, support additional biomass, enhance biodiversity and that stimulate the growth of kelp or other midwater plant life that creates natural habitat for those species.  (b) "Commission" means the State Lands Commission.   (b)   (c)  "Cost savings"  are   means  the difference between the estimated cost to the operator or owner of complete removal of an offshore oil platform or production facility and the costs incurred by the operator or owner of converting a platform or facility into an artificial reef.  (d) "Council" means the Ocean Protection Council.   (c)   (e)  "Endowment" means the California Endowment for Marine Preservation established in Division 37 (commencing with Section 71500) of the Public Resources Code.  (f) "Exclusive economic zone (EEZ)" means the zone as measured from the mean high tide line seaward to 200 nautical miles as set forth in the Presidential Proclamation 5030 of March 10, 1983, in which the United States proclaimed jurisdiction over the resources of the ocean within 200 miles of the coastline.   (d)   (g)  "National Fishing Enhancement Act of 1984" means Title II of Public Law 98-623.  (e)   (h)  "Offshore oil platform or production facility" means platforms, piers, and artificial islands located seaward of mean lower low water, used for oil and gas exploration, development, production, processing, or storage.  (f)   (i)  "Oil" means any kind of petroleum, liquid hydrocarbons, natural gas, or petroleum products or any fraction or residues therefrom.  (g)   (j)  "Open coastal marine resource" means those marine resources that use open coastal waters as their habitat.  (h)   (k)  "Open coastal waters" means the area composed of the submerged lands of the state that are below the mean lower low water extending seaward to the boundaries of the Exclusive Economic Zone.  (i)   (l)  "Production" means increases in the biomass of a species or number of species.  (j)   (m)  "Program" means the California Artificial Reef Program administered pursuant to this article.  (k)   (n)  "Reef materials" include only materials allowed under the National Artificial Reef Plan, adopted under the  federal  National Fishing Enhancement Act of 1984 for construction of artificial reefs.  (l)   (o)  "State waters" means waters within the seaward boundary of the state as identified in Section 2 of Article III of the California Constitution. 6422. The department shall administer the program. 6423. The program shall include all of the following elements: (a) The placement of artificial reefs, including, but not limited to, decommissioned offshore oil platforms  and production facilities  allowed to remain in place  as artificial reefs  in state and federal waters. (b) A study of existing successful reefs and all new reefs placed by the program to determine the design criteria needed to construct artificial reefs capable of increasing marine biomass and biodiversity in state and federal waters. (c) A determination of the requirements for reef siting and placement. (d) Consideration of modification and use of existing marine structures in both state and federal waters as artificial reefs. 6424. The amount allocated for the administration of the program in any fiscal year shall not exceed the amount authorized by applicable state and federal policy guidelines.  6426.   6425.  The Legislature hereby finds and declares all of the following: (a) There is an existing permitting process for decommissioning  of offshore oil platforms or production facilities.   (b) Decommissioning of the offshore oil platforms or production facilities has already occurred and as part of the permitting process there was some consideration given to converting platforms or facilities into artificial reefs.   (c) The operator or owner of offshore oil platforms or production facilities could save a considerable sum of money if the decommissioned offshore oil platform or production facility is allowed by permitting local, state, and federal agencies to remain in place and be converted into an artificial reef.   (d) The savings that result from that conversion should be shared with the citizens of this state.   (e) A mechanism is needed to ensure that if local, state, and federal agencies allow the conversion of an offshore oil platform or production facility to an artificial reef, the citizens of this state would share in the savings and those shared funds would be used to benefit the open coastal marine resources that lie offshore of this state.   (f)     Offshore oil platforms may function as artificial reefs and provide habitat for many species, including threatened and endangered species.   and fully removing offshore oil platforms or production facilities. Owners and operators are currently responsible for the full cost of decommissioning and remediating those facilities.   (b) According to the Minerals Management Service of the United States Department of the Interior, the 23 oil and gas platforms in federal waters off the California coast are expected to reach the end of their useful production lifetimes and be decommissioned between 2015 and 2030.   (c) The California Ocean Science Trust in its June 2010 study, titled "Evaluating Alternatives for Decommissioning California's Offshore Oil and Gas Platforms: A Technical Analysis to Inform State Policy," analyzed a number of options for decommissioning in addition to full rig removal, but found that the only other feasible option is partial removal and conversion to an artificial reef.  (d) The California Ocean Science Trust report and other studies indicate that the partial removal option can result in net environmental benefits and substantial cost savings compared to full removal of an oil platform or production facility.   (e) It is in the interest of the state that a portion of the cost savings that result from that conversion should be shared with the citizens of this state to protect and enhance the state's marine resources.   (f) A mechanism is needed to ensure that, if local, state, and federal agencies allow the conversion of an offshore oil platform or production facility to an artificial reef, the citizens of this state would share in the savings and those shared funds would be used to benefit the open coastal marine resources of the state.   6426.1.   6425.5.  The department shall serve as the primary authority for managing and operating  artificial reefs created from   decommissioned  offshore oil platforms or production facilities  approved pursuant to this article  . The department may obtain funds for the planning, development, maintenance, and operation of those  artificial reefs   facilities  and may accept gifts, subventions, grants, rebates, and subsidies from any lawful source. The department may adopt regulations to implement this article.  6427. This article establishes a program through which an owner or operator of an offshore oil platform or production facility may voluntarily choose to create an artificial reef from the offshore oil platform or production facility if the requirements of this article and other applicable legal requirements are met. The department may conditionally approve the conversion of an offshore oil platform or production facility into an artificial reef only if the following criteria are satisfied:   6426. (a) The Legislature hereby finds and declares all of the following: (1) The conversion of offshore oil platforms or production facilities should not be done until there has been a thorough scientific study and evaluation. (2) The costs of such a study should be borne by the operators of offshore oil platforms or production facilities. (3) Each offshore oil platform or production facility creates a unique environment because of its location, depth, and other ecological factors. (4) Because of significant variations, those scientific studies and evaluations should be done for each offshore oil platform or production facility for which an application for the conversion of the oil platform or production facility has been made to the department. (b) This article establishes a program through which an owner or operator of an offshore oil platform or production facility may voluntarily apply to the department to convert an offshore oil platform or production facility to an artificial reef. In addition to meeting the other requirements of this article, an owner or operator that chooses to apply to convert an offshore oil platform or production facility shall meet application requirements to be designed by the department to receive information needed to facilitate review of the application in a timely manner, including as specified in subdivision (d). In order to facilitate timely review, the department may require the applicant to include either or both of the following in the application: (1) A plan for converting the offshore oil platform or production facility into an artificial reef, including removal of any portion of the platform or facility as appropriate to maintain navigational safety. (2) A management plan for the artificial reef, including maintenance in a manner consistent with navigational safety, enforcement and monitoring. (c) The information submitted pursuant to paragraphs (1) and (2) of subdivision (b) shall be used by the department for advisory purposes only. Final determinations regarding the conversion and management of the offshore oil platform or production facility shall be made solely by the department based on its independent review and judgment. (d) A proposed project to convert an offshore oil platform or production facility into an artificial reef pursuant to this article is a project as defined in subdivision (c) of Section 21065 of the Public Resources Code and is therefore subject to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) and qualifies for the time limits established in Section 21100.2 of the Public Resources Code.   6427.   The department may conditionally approve the conversion of an offshore oil platform or production facility only if all of the following criteria are satisfied, and in accordance with Sections 6427.2 and 6427.3:  (a) The conversion of the offshore oil platform or production facility  into an artificial reef  , and the planning, development, maintenance, and operation of that platform or facility  as an artificial reef  , 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. (3) The California Coastal Management Program. (4) The Marine Life Management Act of 1998 (Chapter 1052 of the Statutes of 1998). (5) The Marine Life Protection Act (Chapter 10.5 (commencing with Section 2850) of Division 3). (6) State and federal water quality laws. (7) Navigational safety laws. (b) The alternative of converting the decommissioned offshore oil platform or production facility  into an artificial reef  provides a net benefit to the environment compared to the alternative of removing the facilities  , as determined pursuant to Section 6428.1  .  (c) The cost savings that would result from the conversion of the offshore oil platform or production facility into an artificial reef have been determined pursuant to Section 6429.   (d) The owner or operator of the offshore oil platform or production facility provides sufficient funds to the department for the department to make the determinations required in this section and Section 6427.5, including, but not limited to, all of the following:   (1) An evaluation, including any necessary research, of the platform or facility to determine the benefits of the artificial reef sites to biotic productivity.   (2)     A determination pursuant to Section 6428.1 whether the   , as determined pursuant to Section 6428. The determination made pursuant to Section 6428 and submitted to the department by the council shall constitute the determination of whether the proposed conversion provides   a net environmental benefit for purposes of meeting the requirements of this section.   (c) The cost savings that would result from the conversion of the offshore oil platform or production facility have been determined pursuant to Section 6429. The determination made pursuant to Section 6429 and submitted to the department by the commission shall constitute the determination of cost savings for purposes of meeting the requirements of this section.   (d) The owner or operator of the offshore oil platform or production facility provides sufficient funds to the department, council, and commission for each agency to carry out all required activities pursuant to this article, including, but not limited to, all of the following:   (1) Environmental review of the proposed project pursuant to subdivision (d) of Section 6426.   (2)     A determination pursuant to Section 6428 whether the  conversion of the offshore oil platform or production facility into an artificial reef provides a net benefit to the environment compared to the alternative of removing the facilities from the environment. (3) A determination pursuant to Section 6429 of the cost savings of the proposed conversion of the offshore oil platform or production facility into an artificial reef. (4) Other activities undertaken to meet the requirements of this section and Section 6427.5, including the costs of reviewing, approving, and permitting the proposed projects, 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.  (5) Overall management of the reef, including enforcement, research, and monitoring, and long-term management, operations, and maintenance.   (e) The owner or operator of the oil platform or production facility indemnifies the state against any and all liability that may result, including defending the state against any claims against the department for any actions the department undertakes pursuant to this article. In adopting indemnification requirements under this article, the department may consider a variety of mechanisms, including an agreement to indemnify the state, an insurance policy, a cash settlement, or any other mechanism that ensures that the state can defend itself against any liability claims against the department for any actions the department undertakes pursuant to this article and pay any resulting judgments.   (5) Overall management of the reef by the department that includes, but is not limited to, preparation of a reef management plan pursuant to paragraph (2) of subdivision (a) of Section 6427.3, enforcement, research and monitoring, long-term management, operations, and maintenance.   (e) The owner or operator of the oil platform or production facility indemnifies the state by entering into an agreement that meets all the requirements of paragraph (3) of subdivision (a) of Section 6427.3.  (f) The owner or operator of the offshore oil platform or production facility applies for, and receives, all required permits and approvals issued by any governmental agency, including, but not limited to, the permit issued by the United States Army Corps of Engineers if the department does not take title to the platform or facility as provided in Section 6427.5  and a lease issued by the commission if the proposed project involves state tidelands and submerged lands  . (g) For oil platforms or production facilities located in federal waters all of the following requirements are met: (1) The department and the owner or operator of the platform or facility reach an agreement providing for the department to take title to the platform or facility as provided in Section 6427.5. (2) The department acquires the permit issued by the United States Army Corps of Engineers. (3) The conversion to an artificial reef is approved by the United States Minerals Management Service.  6427.1. (a) Upon receipt of conditional approval of the conversion of an offshore oil platform or production facility into an artificial reef   6427.1. (a) When the department receives an application to convert an offshore oil platform or oil production facility pursuant to this article, it shall submit a copy of the application to the council and the commission. The submittal of the application shall serve as notice as required by Sections 6428 and 6429. (b) When the department makes a determination that an application for conversion of a decommissioned offshore oil platform or production facility has satisfied all the criteria in this section, it shall immediately notify the California Endowment for Marine Preservation, established pursuant to Division 37 (commencing with Section 71500) of the Public Resources Code, of its determination.   6427.2. If the department determines that all the criteria for conditional approval specified in Section 6427 have been satisfied, the department shall, prior to granting conditional approval, provide public notice of its determination, provide an opportunity for public comment, and hold a public hearing.   6427.3.   (a) In addition to the requirements of Section 6427.2, prior to the conditional approval of the conversion of an offshore oil platform or production facility pursuant to Section 6427, the department shall do all of the following:   (1) Conduct an environmental review of the project pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code.   (2) Prepare a plan to manage the offshore oil platform or production facility after its conversion. The plan shall include measures to manage fishery and marine life resources at and around the reef, which may include a buffer zone in which fishing or removal of marine life is restricted or prohibited.   (3) Enter into an indemnification agreement with the owner or operator of the offshore oil platform or production facility that indemnifies the state, 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 against any claims against the department for any actions the department undertakes pursuant to this article. In adopting indemnification requirements for the agreement, the department shall ensure that the state can defend itself against any liability claims against the department for any actions the department 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.   (4) Determine that the conversion would be consistent with all applicable laws identified in subdivision (a) of Section 6427.   (5) Make all the findings required in Section 6427. If the department determines the applicant for conversion of an oil platform or production facility has satisfied all the criteria in Section 6427, it shall grant the applicant conditional approval.   (b)     Upon receipt of conditional approval  pursuant to Section 6427, the owner or operator of the platform or facility shall apportion and directly transmit an amount equaling 50 percent of the cost savings, as determined  by the department  pursuant to Section 6429, to the following in the following amounts: (1)  Ninety   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   Five  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 the provisions of paragraph (1) of subdivision (d) of Section 6817 of the Public Resources Code.  (3) Ten percent shall be deposited into the General Fund.  (b) The department shall not grant final approval of the conversion of an offshore oil platform or production facility into an artificial reef until all requirements of subdivision (a) are met. (c) Moneys deposited pursuant to this section shall be held in trust for the purposes described in this section. 6427.5. The department  may   shall not  take title to a decommissioned offshore oil platform or production facility in open coastal waters  only if   or take responsibility for implementation of a management plan pursuant to this article until decommissioning and conversion of the offshore oil platform or production facility have be   en completed and  both of the following requirements are met: (a) The conversion of the oil platform or production facility has been approved by the department pursuant to Sections 6427 and  6427.1.   6427.3.  (b) The state is indemnified, as required in subdivision (e) of Section 6427, from any liability that may result from approving the conversion of an offshore oil platform or production facility  to an artificial reef  or any liability that may result from the ownership of the  reef   converted platform or facility  . 6428. The Legislature hereby finds and declares all of the following: (a) The conversion of offshore oil platforms or production facilities should not be done until there has been a thorough scientific study and evaluation. (b) The costs of such a study should be borne by the operators of offshore oil platforms or production facilities. (c) Each offshore oil platform or production facility creates a unique environment because of its location, depth, and other ecological factors. (d) Because of significant variations, those scientific studies and evaluations should be done for each offshore oil platform or production facility for which an application for the use of the oil platform or production facility as an artificial reef has been made to the department.  6428.1. (a) The department shall determine whether   6428.   (a)     Prior to the conditional approval of the conversion of an oil platform or production facility pursuant to Section 6427, the council shall determine whether  the conversion of a specified oil platform or production facility for use as an artificial reef provides a net benefit to the environment compared to the alternative of removing the oil platform or production facility. (b) In making the determination pursuant to subdivision (a), the  department   council  shall take into account the contribution of the proposed artificial reef to protection and productivity of fish and other marine life, any adverse impacts to biological resources, water quality, air quality, or any other offshore or onshore environmental impacts from the full removal of the facility that would be avoided by conversion to an artificial reef, and any adverse impacts to biological resources, water quality, air quality, or any other offshore or onshore environmental impacts from the decommissioning and conversion of the facility into an artificial reef.  Benefits resulting from the contribution of cost savings to the endowment shall not be considered in the determination of net environmental benefit.  (c) (1) The  department   council  shall determine criteria for biological evaluation of an oil platform or production facility for use as an  artificial reef and shall consult with and advise the California Coastal Commission, the State Lands Commission, and other responsible agencies as to that criteria   articifical reef  . The criteria shall include, but are not limited to, the depth of the artificial reef in relation to its value as habitat and the location of the artificial reef in relation to other reefs, both natural and artificial. The criteria shall not include any consideration of the funds to be generated by the conversion to an artificial reef.  In determining the criteria for biological evaluation, t   he 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.   (2) The department shall commence developing the criteria required by this subdivision upon receiving an application for the use of the oil platform or production facility as an artificial reef. The department's determination of that criteria is a necessary part of any consideration of an application and the costs of determining that criteria shall be borne by the applicant or applicants, as required in subdivision (d) of Section 6427.   (2) The council shall commence developing the criteria required by this subdivision upon receiving a copy of the application pursuant to subdivision (a) of Section 6427.1. The council's determination of those criteria is a necessary part of any consideration of an application to convert an offshore oil platform or production facility pursuant to this article, and the costs of determining those criteria shall be borne by the applicant or applicants, as required in subdivision (d) of Section 6427.   (d) The council shall take all feasible steps to complete its determination in a timely manner that accommodates the time limits for environmental review required pursuant to Section 6427.  6429. (a) Prior to the  conditional  approval of a conversion of an offshore oil platform or production facility  into an artificial reef   commission  pursuant to Section 6427, the department shall determine, or cause to be determined, the cost savings that will result from the conversion. (b) The  department   commission  shall ensure that any cost savings are accurately and reasonably calculated. The  department   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  department   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,  the Minerals Management Service of the United States Department of the Interior, and the State Lands Commission. If the department disagrees with the estimate made by any other agency, the department shall prepare a public report that explains any discrepancies and differences between those estimates and provides the basis for the department's finding that other estimates are less reliable and the department's use of a different cost savings estimate.  and the Minerals Management Service of 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 commission shall commence its determination of cost savings as required in subdivision (a) upon receiving a copy of the application pursuant to subdivision (a) of Section 6427.1. The commission's determination of the cost savings is a necessary part of any consideration of an application to convert an oil platform or oil production facility pursuant to this article, and the costs of making that determination shall be borne by the applicant or applicants, as required in subdivision (d) of Section 6427.   (e) The commission shall take all feasible steps to complete its determination in a timely manner that accommodates the time limits for the department whether to grant conditional approval pursuant to Section 6427.  6429.1. The oil platform or production facility owner or operator at any time prior to transfer of title to the state, at its sole discretion, shall have the right to cease participation in the artificial reef conversion and pursue full decommissioning, subject to reimbursement to the state of the reasonable costs and expenses incurred by the state. 6429.2. (a) Nothing in this article is intended, and it shall not be construed, to limit or affect the authority or duties of any state or local agency, including, but not limited to, the  State Lands Commission   council, the commission,  and the California Coastal Commission. (b) Nothing in this article shall be construed to do any of the following: (1) Relieve the prior owner or operator of an offshore oil platform or production facility from any continuing liability under any of the following if the liability is associated with seepage or release of oil from an offshore oil platform or production facility that was decommissioned pursuant to an order of, or any action taken by, and in accordance with, any applicable rule or regulation of, any federal or state agency: (A) Any state statute or regulation regarding liability for the spilling of oil. (B) The federal Oil Pollution Act of 1990 (33 U.S.C. Sec. 2701 et seq.). (C) Any other provision of law. (2) Establish any new liability on the part of the state. (3) Require any agency with jurisdiction to approve the artificial reef conversion, in whole or in part, of an offshore oil platform or production facility. (4) Promote, encourage, or facilitate offshore oil exploration, development, and production within California's open coastal waters. (5) Require the United States Department of the Interior's Minerals Management Service or the State Lands Commission to modify, amend, or alter an existing oil and gas lease to approve conversion of an offshore oil platform or production facility. (6) Alter any existing law or applicable rule or regulation of any federal or state agency that establishes liability for damages arising with respect to artificial reefs or reef materials, including, but not limited to, components of decommissioned oil facilities. (7) Alter any existing law or policy that protects natural reefs. (8) Approve any particular method of abandonment. (c) Any conversion of an offshore oil platform or production facility for use as an artificial reef shall not be used or counted as mitigation for any environmental impacts or natural resource damages.  6429.5. (a) The Accelerated Platform Decommissioning Program is hereby established as an expedited program for meeting the requirements for approval of the conversion of an offshore oil platform or production facility into an artificial reef pursuant to this article. For purposes of this section, "accelerated program" means the Accelerated Platform Decommissioning Program as established by this section. (b) (1) A proposed project to convert an offshore oil platform or production facility into an artificial reef pursuant to the accelerated program is a project as defined in subdivision (c) of Section 21065 of the Public Resources Code and is therefore subject to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) and qualifies for expedited review pursuant to Section 21100.2 of the Public Resources Code. (2) Upon receipt of an application for expedited review pursuant to this section, the department shall review the application and make a determination within the time periods set forth in paragraph (1) of subdivision (a) of Section 21100.2 of the Public Resources Code whether the proposed project meets all of the requirements of this section and this article for conversion into an artificial reef. (3) Prior to making a final determination as provided in paragraph (2), the department shall do all of the following: (A) Consult with all responsible agencies and trustee agencies, as defined in Sections 21069 and 21070 of the Public Resources Code. (B) Provide opportunity for public comment and hold a public hearing. (C) Determine the cost savings as provided in Section 6429. (c) The owner or operator of an offshore oil platform or production facility may apply to enroll the facility in the accelerated program. In addition to meeting the other requirements of this article, the owner or operator of an offshore oil platform that chooses to apply as part of the accelerated program shall meet application requirements to be designed by the department to receive information needed to facilitate review of the application within an accelerated timeline. In order to facilitate an accelerated review, the department may require the applicant to include any or all of the following in the application: (1) A reefing plan for converting the oil platform or production facility into an artificial reef, including removal of any portion of the platform or facility as appropriate to maintain navigational safety. (2) A management plan for the artificial reef, including maintenance in a manner consistent with navigational safety and enforcement and monitoring, and, if applicable, a buffer zone in which fishing or removal of marine life may be limited or prohibited. (3) A proposed determination of the net environmental benefit of conversion of the facility into an artificial reef, compared to the alternative of removing the facility. The proposed determination of net environmental benefit shall be based on criteria established by the department pursuant to Section 6428.1. (4) A proposed determination of the cost savings. The proposed determination shall be consistent with the requirements of Section 6429. (d) The information submitted pursuant to paragraphs (1) to (4), inclusive, of subdivision (c) shall be used by the department for advisory purposes only. Final determinations regarding a reefing plan, a management plan, net environmental benefit of the proposed conversion, cost savings resulting from the conversion, and all other determinations shall be made solely by the department based on its independent review and judgment. (e) If the department fails to make a final determination within the time periods set forth in paragraph (1) of subdivision (a) of Section 21100.2 of the Public Resources Code, the department shall remove the application from the accelerated program and the application shall be considered by the department on a nonaccelerated schedule. The applicant shall be required to make applicable payments as provided in Section 6427.1, in lieu of payments as required in subdivision (g). (f) If the department makes a final determination that the proposed project meets all of the requirements of this section and this article, the department and the applicant may enter into an agreement which shall enroll the facility in the accelerated program and require the applicant to perform the decommissioning and conversion of the facility in accordance with a reefing plan approved by the department. The department shall not take title to the artificial reef or take responsibility for implementation of the management plan until decommissioning and conversion of the reef have been completed and all the conditions of Section 6427.5 have been met. (g) Upon execution of an agreement by the department and the applicant pursuant to subdivision (f), the applicant shall apportion and directly transmit 50 percent of the cost savings, as determined pursuant to Section 6429, to the following in the following amounts: (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) Five 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 the provisions of paragraph (1) of subdivision (d) of Section 6817 of the Public Resources Code. (3) Ten percent shall be deposited into the General Fund. (h) If the department and the applicant enter into an agreement and the applicant pays funds to the department for deposit into the General Fund pursuant to subdivision (g), and that agreement or any required federal, state, or local permit or approval is challenged in court and found to be invalid or unenforceable for any reason, or is rejected, rescinded, or withdrawn for any reason, the state shall return those funds to the applicant within 90 days and the application shall be considered by the department on a nonaccelerated schedule. (i) The applicant shall provide sufficient funds to the department for the cost of enrolling the facility in the accelerated program, as determined by the department, including the costs of reviewing and approving the application and determining whether the proposed project meets the requirements of this section, this article, and all other applicable laws. (j) This section shall remain in effect only until January 1, 2014, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2014, deletes or extends that date.  SEC. 4. Division 37 (commencing with Section 71500) is added to the Public Resources Code, to read: DIVISION 37. CALIFORNIA ENDOWMENT FOR MARINE PRESERVATION CHAPTER 1. FINDINGS AND DECLARATIONS 71500. (a) The Legislature hereby finds and declares all of the following: (1) The Pacific Ocean and its rich marine living resources are of great environmental, economic, aesthetic, recreational, educational, scientific, social, cultural, and historic importance to the people of California.  (2) California's marine living resources depend on a healthy marine environment, which comprises open coastal waters as well as coastal estuaries, wetlands, rivers and streams, and lands within the coastal zone.   (2)   (3)  Programs to conserve, protect, restore, and enhance the marine  fishery  resources of the state are needed because of past overfishing and  damage to   coastal pollution that have damaged  marine habitats and their ecosystems. These programs should be coordinated with efforts to reduce overfishing and  damage to   coastal pollution that damage  marine habitats and their ecosystems.  (3) A program that will speed up the decommissioning of offshore oil platforms will enhance the environmental, aesthetic, and recreational features of the coastal environment. Any offshore oil platforms that are nearing possible retirement should be removed as quickly as possible to improve the aesthetic character of the areas of the California coast that have been adversely impacted by offshore oil activities.  (4) The State of California recognizes the need to formulate its  environmental and   coastal and ocean  resource management policies based on the best available scientific information and should utilize the University of California, the California State University, other institutions of higher learning, and marine science research institutions to the  fullest extent possible   extent feasible  to assist it in achieving that goal.  (5) The California Ocean Resources Management Act of 1990 is designed to ensure that the state's ocean resources are managed, conserved, and enhanced in a comprehensive and coordinated manner. The California Ocean Protection Act furthered that mission by establishing the Ocean Protection Council, whose duties include coordination of state activities to protect coastal waters and ocean ecosystems, establishment of a science advisory team of distinguished scientists from a range of disciplines related to coastal and ocean resources, and contracting with the California Ocean Science Trust and other academic and nonprofit organizations to carry out scientific and educational activities consistent with that act.   (6) The ability of the state to carry out the mission of the California Ocean Protection Act is constrained by the availability of funds appropriated in the state budget.   (7) It is in the interest of the people of the state to establish an endowment, which would be independent of the state's budget process and would impose no cost on the General Fund of the state, to provide a stable and ongoing source of funding in perpetuity to conserve, protect, restore, and enhance the marine resources of the state in a manner that is consistent with the California Ocean Protection Act.  CHAPTER 2. DEFINITIONS 71520. Unless the context requires otherwise, the following definitions govern the construction of this division:  (a) "Artificial reef" means manmade or natural objects intentionally placed or allowed to remain in place in selected areas of the marine environment to duplicate those conditions that induce production of fish and invertebrates on natural reefs and rough bottoms, support additional biomass, enhance biodiversity, and stimulate the growth of kelp or other midwater plant life that creates natural habitat for those species.   (b)   (a)  "Board" or "endowment board" means the Board of Directors of the California Endowment for Marine Preservation.  (c) "Cost savings" are the difference between the estimated cost to the operator or owner of complete removal of an offshore oil platform or production facility and the costs incurred by the operator or owner of converting a platform or facility into an artificial reef.   (d)   (b)  "Endowment" means the California Endowment for Marine Preservation.  (e) "National Fishing Enhancement Act of 1984" means Title II of Public Law 98-623.   (f) "Offshore oil platform or production facility" means platforms, piers, and artificial islands located seaward of mean lower low water, used for oil and gas exploration, development, production, processing, or storage.   (g) "Oil" means any kind of petroleum, liquid hydrocarbons, natural gas, or petroleum products or any fraction or residues therefrom.   (c) "Exclusive economic zone (EEZ)" means the zone as measured from the mean high tide line seaward to 200 nautical miles as set forth in the Presidential Proclamation 5030 of March 10, 1983, in which the United States proclaimed jurisdiction over the resources of the ocean within 200 miles of the coastline.   (h)   (d)  "Open coastal marine resource" means those marine resources that use open coastal waters as their habitat.  (i)   (e)  "Open coastal waters" means the area composed of the submerged lands of the state that are below the mean lower low water extending seaward to the boundaries of the Exclusive Economic Zone.  (j) "Reef materials" includes only materials allowed under the National Artificial Reef Plan, adopted under the National Fishing Enhancement Act of 1984 for construction of artificial reefs.   (k) "State waters" means waters within the seaward boundary of the state as identified in Section 2 of Article III of the California Constitution.  CHAPTER 3. ESTABLISHMENT  AND   GOVERNANCE 71530. The California Endowment for Marine Preservation is hereby established. The endowment is subject to this division and to the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code). If there is a conflict between this division and the Nonprofit Public Benefit Corporation Law, this division shall prevail.  71531. (a) Nothing in this division is intended, and it shall not be construed, to limit or affect the authority or duties of any state or local agency, including, but not limited to, the State Lands Commission and the California Coastal Commission. (b) Nothing in this division shall be construed to do any of the following: (1) Relieve the prior owner or operator of an oil facility from any continuing liability under any of the following, if the liability is associated with seepage or release of oil from an oil facility that was decommissioned pursuant to an order of, or any action taken by, and in accordance with, any applicable rule or regulation of any federal or state agency: (A) Any state statute or regulation regarding liability for the spilling of oil. (B) The federal Oil Pollution Act of 1990 (33 U.S.C. Sec. 2701 et seq.). (C) Any other provision of law. (2) Establish any new liability on the part of the state. (3) Require, authorize, or in any way encourage any agency with jurisdiction to approve the reefing, in whole or in part, of an oil platform. (4) Promote, encourage, or facilitate offshore oil exploration, development, and production within California's open coastal waters. (5) Require the United States Department of the Interior's Minerals Management Service or the State Lands Commission to modify, amend, or alter an existing oil and gas lease to approve the reefing of an oil platform in place. (6) Alter any existing law that establishes liability for damages arising with respect to artificial reefs or reef materials, including, but not limited to, components of decommissioned oil facilities. (7) Alter any existing law or policy that protects or otherwise favors natural reefs. (8) Promote or encourage any particular method of decommissioning. (c) Any decommissioning of an offshore oil platform or production facility for use as an artificial reef shall not be used or counted as mitigation for any environmental impacts or natural resources damages.   CHAPTER 4. BOARD OF DIRECTORS 71540. The endowment is governed by the Board of Directors of the California Endowment for Marine Preservation. The board consists of nine members appointed by the Governor as follows: (a) One member who shall be an expert in marine science from the University of California, the California State University, or other accredited university. (b) One member who shall be an expert in marine fisheries from the University of California, the California State University, or other accredited university. (c) One member who shall be from a nonprofit, public interest organization with emphasis on marine conservation. (d) One member who shall be from a nonprofit public interest organization with an emphasis on marine conservation and sustainable consumptive recreational activities. (e) One member who shall be from a nonprofit public interest organization with an emphasis on marine conservation and sustainable nonconsumptive recreational activities. (f) The Secretary of the Natural Resources Agency, or his or her designee, who shall also serve as chairperson. (g) One person who is serving as an elected local government official for a local governmental agency with jurisdiction over, or directly adjacent to, open coastal waters containing oil platforms or production facilities. (h) Two representatives of the public. 71541. The term of office of each member of the board is six years. However, the term of office for the first board member appointed pursuant to subdivisions (a), (b), and (c) of Section 71540 is two years. The term of office for the first board members appointed pursuant to subdivisions (f) and (g) of Section 71540 is four years.   71531. The endowment is governed by the Board of Directors of the California Endowment for Marine Preservation, consisting of the following members: (a) The three voting nonpublic members of the Ocean Protection Council established pursuant to Section 35600. (b) Two members of the public appointed by the Governor. (c) One member, appointed by the Speaker of the Assembly, who shall be an expert in marine science from the University of California, the California State University, or other accredited university. (d) One member, appointed by the Speaker of the Assembly, who shall be from a nonprofit, public interest organization with emphasis on marine conservation. (e) One member, appointed by the Senate Committee on Rules, who shall be an expert in marine fisheries from the University of California, the California State University, or other accredited university. (f) One member, appointed by the Senate Committee on Rules, who shall be from a nonprofit public interest organization with an emphasis on marine conservation and sustainable consumptive recreational activities.   71532. The term of office of each member of the board appointed pursuant to subdivisions (b) to (e), inclusive, of Section 71531 is six years. However, the term of office for the first board member appointed pursuant to subdivisions (b) and (c) of Section 71531 is three years.   71542.   71533.  Any vacancy on the board shall be filled by the Governor by appointment for the unexpired term.  71543.   71534. (a) The board shall conduct its initial meeting as soon as possible after incorporation. (b) The board shall meet as often as required, but at least twice per year. (c) Members of the board shall attend at least 50 percent of all duly convened meetings of the board in a calendar year. A member who fails to attend at least 50 percent of all duly convened meetings of the board in a calendar year forfeits membership on the board. The vacancy shall be filled pursuant to Section 71542. (d) Members of the board shall receive no salary but shall be paid one hundred dollars ($100) per day for each meeting and shall be reimbursed for all necessary travel expenses.  (e) The Ocean Protection Council shall provide staff services that the endowment board needs to carry out its duties pursuant to this division.  CHAPTER 5. POWERS AND DUTIES 71550. The members of the board first appointed shall serve as incorporators of the endowment and shall take whatever actions are necessary to establish the endowment pursuant to the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code) once a majority of the board is appointed.  71551. It is the intent of the Legislature that the endowment not be incorporated until funds are made available pursuant to the California Marine Legacy Act (Article 2 (commencing with Section 6420) of Chapter 5 of Part 1 of Division 6 of the Fish and Game Code).   71552. (a) The purpose of the endowment is to create a permanent source of funding for projects that will conserve, protect, restore, and enhance the open coastal marine resources of the state. To achieve this objective, the endowment board may allocate funding to do any or all of the following: (1) Support applied research into open coastal marine fisheries, marine habitat, or other related research in support of projects to   71551. The California Endowment for Marine Preservation shall receive funds generated pursuant to the California Marine Legacy Act (Article 2 (commencing with Section 6420) of Chapter 5 of Part 1 of Division 6 of the Fish and Game Code). It is the intent of the Legislature that the endowment not be incorporated until the endowment board has been notified for the first time by the Department of Fish and Game, pursuant to Section 6427.1 of the Fish and Game Code.   71552.   (a) The purpose of the endowment is to create a permanent source of funding for projects that will conserve, protect, restore, and enhance the coastal and marine resources of the state, with an emphasis on open coastal marine resources. To achieve this objective, the endowment board may allocate funding to support any or all of the following activities:   (1)     Applied research into open coastal marine fisheries, marine habitat, or other related research, including,   but not limited to, monitoring and data collection, in support of projects to  conserve, protect, restore, and enhance the open coastal marine resources of the state. In so doing, the board shall endeavor to take maximum advantage of the scientific research expertise available from the University of California, the California State University, other institutions of higher learning, and marine science research institutions with expertise in marine resource issues. Funding for research projects shall not exceed 10 percent of the overall funding in any fiscal year. (2)  Support projects   Projects  in open coastal waters that enhance environmentally sustainable marine activities. (3)  Support projects   Projects  in open coastal waters to enhance the habitat for open coastal marine life. (4)  Support programs   Programs  in open coastal waters that lead to enforcement of laws regulating the take of open coastal marine species, the protection of habitat, and the protection and monitoring of open coastal marine species and habitat with an emphasis on innovative approaches. (5)  Support programs   Programs    to aid in the establishment of  safe   sustainable  fishing levels and reduce or prevent habitat damage in open coastal waters. (6)  Support programs   Programs  to monitor catch and bycatch and to reduce bycatch in fisheries managed by the State of California and by the United States.  (7) Programs, projects, and activities that are directly related to the conservation, protection, restoration, and enhancement of coastal and marine resources of the state, with an emphasis on open coastal marine resources, and that are authorized by either paragraph (2) of subdivision (b) of Section 35650 or by Section 75060.   (b) Funds provided by the endowment are not intended, and shall not be used, to supplant funding provided through the annual budget process to support existing obligations and activities related to coastal and marine resources.   (b)   (c)  The endowment board may also do all of the following: (1) Obtain grants from, and contract with, individuals and with private, local, state, and federal agencies, organizations, and institutions. (2) Contract with, or make grants to, conservation and educational organizations; marine institutes; aquariums and museums; institutions of higher education; and local, state, and federal agencies  to carry out the purposes of the endowment  . (3) Loan funds to private, local, state, and federal agencies, organizations, and institutions  to carry out the purposes of the endowment  .  (c)   (d)  The endowment shall create a business plan for a five-year period. The endowment shall update the plan annually.  (d)   (e)  On or before February 1 each year, the endowment shall submit a report to the appropriate fiscal and policy committees of the Legislature for the preceding fiscal year. The report shall include all of the following: (1) The updated business plan created pursuant to subdivision (c). (2) A comprehensive and detailed report of the endowment's operations, activities, financial condition, and accomplishments under this section. (3) A listing of each recipient of a grant from the endowment and the purposes and amount of that grant. (4) A listing of any loan that the endowment has received and the plan for repaying the loan. (5) A report of each independent audit required pursuant to subdivision (e) of Section 71560. 71553. Members of the board and appropriate staff shall be available to testify before appropriate committees of the Legislature. 71554. The endowment shall not contribute to, or otherwise support, any political party, candidate for elective public office, or ballot measure. 71555. The endowment may hire employees and may obtain legal counsel. No employee of the endowment is an employee of the State of California. No employee of the endowment is subject to Chapter 10.3 (commencing with Section 3512) of, or Chapter 10.5 (commencing with Section 3525) of, Division 4 of Title 1 of the Government Code. Employees of the endowment have the right to representation consistent with the federal National Labor Relations Act (29 U.S.C. Sec. 151 et seq.). 71556. The endowment shall coordinate its activities with the Department of Fish and Game, the California Coastal Commission, the San Francisco Bay Conservation and Development Commission, the State Lands Commission, and appropriate federal agencies, including the National Marine Fisheries Service and the Minerals Management Service of the United States Department of the Interior. Nothing in this division limits the authority and responsibility of any of these agencies. CHAPTER 6. FINANCIAL TRANSACTIONS AND AUDITS 71560. (a) The endowment may receive charitable contributions or any sources of income that may be lawfully received, including loans from the state. (b) The endowment shall administer any funds it receives in accordance with this division. (c)  The   (1)     Except as provided in paragraph (   2), the  endowment shall invest and manage any funds it receives so that the investments shall provide a source of income in perpetuity and the principal amount consisting of charitable contributions and donations, including cost savings donated pursuant to  Sections 6427.1 and 6429.5   Section 6427.3  of the Fish and Game Code, shall not be spent. Any returns on investments made by the endowment are the only funds that shall be available for expenditure by the endowment.  (2) Ten percent of any funds received by the endowment pursuant to Section 6427.3 of the Fish and Game Code in a calendar year shall be allocated by the endowment board, pursuant to Section 71552, to qualified state agencies within 24 months of receipt of the funds.  (d) The endowment shall invest and manage any funds it receives in accordance with the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code). (e) The accounts of the endowment shall be audited annually in accordance with generally accepted auditing standards by independent certified public accountants. (f) The financial transactions of the endowment for any fiscal year may be audited by the Bureau of State Audits. A report of each audit completed pursuant to this subdivision shall be made to the Legislature and the Governor. (g) Each recipient of assistance by grant, contract, or loan pursuant to this division shall keep records reasonably necessary to disclose fully the amount of the assistance, the disposition of the assistance, the total cost of the project or undertaking in connection with which the assistance is given or used, the amount and nature of that portion of the cost of the project or undertaking supplied by other sources, and other records that will facilitate an effective audit. Each recipient of a fixed price contract awarded pursuant to competitive bidding procedures is exempt from the requirements of this subdivision. (h) The endowment, or its authorized representative, and the Bureau of State Audits shall have access to any records necessary for the purpose of auditing and examining all funds received or expended by the recipients of assistance. 71561. The endowment funds shall be administered and managed in accordance with all of the following: (a) Reasonably prudent investor standards that will give the fund the capacity to achieve reasonable rates of return on investment similar to those of other prudent investors for long-term investments. (b) Use of generally accepted accounting practices, and expenditure and investing procedures. (c) Investment policies that are consistent with the Uniform Prudent Investor Act (Article 2.5 (commencing with Section 16045) of Chapter 1 of Part 4 of Division 9 of the Probate Code), and with the Uniform Management of Institutional Funds Act (Part 7 (commencing with Section 18501) of Division 9 of the Probate Code), as applicable. 71562. Funds held by the endowment shall revert to the state or to another public agency or nonprofit organization approved by the state if the endowment does any of the following: (a) Ceases operations. (b) Is dissolved. (c) Becomes bankrupt or insolvent. (d) Fails to perform its fiduciary duties.