California Assembly Bill AB2404

California 2017-2018 Regular Session

• Introduced: 2/14/18
• Refer: 3/5/18
• Report Pass: 4/10/18
• Refer: 4/10/18
• Refer: 4/18/18
• Report Pass: 5/25/18
• Engrossed: 5/29/18
• Refer: 5/30/18
• Refer: 6/7/18
• Report Pass: 6/26/18
• Refer: 6/26/18
• Refer: 8/6/18

Caption

Oil Trust Fund.

Impact

The impact of AB 2404 on state laws mainly revolves around the financial capabilities of the State Lands Commission to manage abandoned oil facilities. By eliminating the deposit cap, the bill provides the commission greater flexibility and capacity to execute environmental remediation efforts. This could lead to quicker and possibly more comprehensive cleanup operations in areas affected by oil extraction activities, thus having a significant positive impact on local environmental health and ecosystem safety.

Summary

Assembly Bill 2404 seeks to amend Section 6217.8 of the Public Resources Code, specifically addressing the provisions related to the Oil Trust Fund. It proposes the removal of the existing cap of $300 million on deposits made into the fund. The fund is crucial for financing projects associated with the abandonment of oil wells and the removal of related infrastructure, particularly focused on the Long Beach tidelands. This amendment will allow for increased financial contributions to the fund, thereby facilitating timely responses to necessary remediation work.

Contention

There are potential points of contention regarding this bill, particularly concerning the sources of funding and whether removing the cap could lead to mismanagement or over-reliance on oil revenues for state funding. Critics may argue about the implications of increasing the flow of funds without adequate oversight, raising concerns about accountability and the effectiveness of the remediation processes. Proponents assert that this change is essential for addressing the growing environmental issues associated with old and abandoned oil facilities.