CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 567Introduced by Senator LimnFebruary 20, 2025An act to add Section 3106.2 to, and to add and repeal Article 10 (commencing with Section 3474) of Chapter 1 of Division 3 of, the Public Resources Code, relating to oil and gas wells.LEGISLATIVE COUNSEL'S DIGESTSB 567, as introduced, Limn. Gravity-Based Energy Storage Well Pilot Program.Existing law requires the State Oil and Gas Supervisor to supervise the drilling, operation, maintenance, and abandonment of wells so as to prevent damage to life, health, property, and natural resources, damage to underground oil and gas deposits from infiltrating water and other causes, loss of oil, gas, or reservoir of energy, and damage to underground and surface waters suitable for irrigation or domestic purposes by the infiltration of, or the addition of, detrimental substances. Existing law defines wells to mean oil or gas wells or other wells related to oil or gas production.Under existing law, a person who fails to comply with the requirements relating to the regulation of wells is guilty of a misdemeanor.This bill would, until January 1, 2035, establish the Gravity-Based Energy Storage Well Pilot Program and would authorize the supervisor to authorize the conversion of not more than 1,000 wells for use as gravity-based energy storage wells, as defined, to evaluate their use, including the establishment of appropriate operating conditions and physical parameters to safely generate energy. The bill would require idle wells that are authorized for use as gravity-based energy storage wells to be identified as gravity-based energy storage wells in a plan or updates to the plan required to be filed with the supervisor. The bill would require the mechanical integrity of gravity-based energy storage wells to be assessed by the Geologic Energy Management Division not less than annually. The bill would require an operator of a gravity-based energy storage well, in the event of a loss of mechanical integrity of the well or a leak to the environment, to notify the division, the State Air Resources Board, the appropriate regional water quality control board, and schools and community members within 3,200 feet of the well and to cease operation until the mechanical integrity is restored or to plug and abandon the well, as provided. The bill would require gravity-based energy storage wells to be continuously monitored for fluid leaks. The bill would specify that the authorization for wells to be used as gravity-based energy storage wells end at the termination of the pilot program. The bill would, by January 1, 2033, require the Secretary for Environmental Protection, in consultation with certain entities, to evaluate the pilot program and make recommendations to the Legislature for a framework to implement an ongoing Gravity-Based Energy Storage Well Program to regulate the operation of gravity-based energy storage wells.Because a violation of the requirements of the Gravity-Based Energy Storage Well Pilot Program would be a crime, this bill would impose a state-mandated local program.This bill would prohibit the supervisor from authorizing or allowing the use of a well or hydrocarbon reservoir for any purpose other than provided for in law.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 3106.2 is added to the Public Resources Code, to read:3106.2. The supervisor shall not authorize or allow the use of a well or hydrocarbon reservoir for any purpose other than provided for in this division, including Section 3106.SEC. 2. Article 10 (commencing with Section 3474) is added to Chapter 1 of Division 3 of the Public Resources Code, to read: Article 10. Gravity-Based Energy Storage Well Pilot Program3474. For purposes of this article, the following definitions apply:(a) Federal agency means the United States Environmental Protection Agency, including Region 9 of that agency.(b) (1) Gravity-based energy storage well means a well that meets all of the following:(A) The well is plugged with all perforations sealed, including by the use of permanent bridge plug.(B) The well is isolated from a hydrocarbon reservoir.(C) The well has mechanical integrity.(D) The well is not a conduit for fluid migration into a beneficial use aquifer,(E) The well is exclusively used to store or generate energy by raising or lowering a weight within the well casing.(2) A well that has been fully plugged and abandoned pursuant to Section 3208 is not eligible to be a gravity-based energy storage well.(3) A well listed as an orphan well pursuant to subparagraph (C) of paragraph (1) of subdivision (a) of Section 3206.3 or an idle-deserted well, as defined in Section 3251, is eligible to be converted for use as a gravity-based energy storage well if all applicable and necessary rights to do so have been obtained. 3474.2. (a) The supervisor may authorize the conversion of not more than 1,000 wells for use as gravity-based energy storage wells pursuant to this article to evaluate their use, including the establishment of appropriate operating conditions and physical parameters to safely store and generate energy.(b) Before authorizing the use of a well as a gravity-based energy storage well, the supervisor may require the operator to provide additional information demonstrating the suitability of the well for use as a gravity-based energy storage well.(c) The conversion of a well for use as a gravity-based energy storage well does not relieve the operator of its obligation to plug and abandon the well, decommission attendant facilities, and remediate the site.(d) The supervisor may assess a fee not to exceed the reasonable costs incurred by the division in implementing this article.3474.4. A well that has been permitted or operated as a Class II well, as defined in Section 3130, shall not be authorized for use as a gravity-based energy storage well without the written acknowledgment and authorization from the federal agency. The written acknowledgment and authorization shall be part of the well record.3474.6. (a) (1) An idle well that is authorized for use as a gravity-based energy storage well shall be identified as a gravity-based energy storage well in any plan or update to a plan required pursuant to paragraph (2) of subdivision (a) of Section 3206 and shall not be required to be eliminated.(2) An operator shall update an applicable plan pursuant to paragraph (2) of subdivision (a) of Section 3206 to identify the use of an idle well as a gravity-based energy storage well not less than annually.(b) (1) An idle well that is authorized for use as a gravity-based energy storage well remains subject to the requirements of Section 3205.3 and the applicable idle well fee specified in paragraph (1) of subdivision (a) of Section 3206.(2) An operator that ceases to operate an idle well as a gravity-based energy storage well shall identify that well as an idle well in any plan or update to a plan required pursuant to paragraph (2) of subdivision (a) of Section 3206.3474.8. (a) The mechanical integrity of a gravity-based energy storage well shall be assessed by the division not less than annually and shall include, at a minimum, pressure testing. The assessment shall be part of the well record. A gravity-based energy storage well that has lost mechanical integrity shall cease operation as a gravity-based energy storage well until mechanical integrity is restored. In the event of a loss of mechanical integrity or leak to the environment, the operator of a gravity-based energy storage well shall notify the division, the State Air Resources Board, the appropriate regional water quality control board, and any schools or community members living within 3,200 feet of the well of the loss of mechanical integrity or leak.(b) A well after being converted for use as a gravity-based energy storage well shall be continuously monitored for fluid leaks, including, but not limited to, methane leaks. The supervisor, in consultation with the State Air Resources Board and the State Water Resources Control Board, shall establish criteria for fluid leak monitoring and reporting.3474.9. A gravity-based energy storage well that has lost its mechanical integrity shall be plugged and abandoned within one year or scheduled for plugging and abandonment in an approved idle well management plan or related plan approved by the supervisor unless the mechanical integrity of the well is restored.3474.10. Beginning after the first month in which the gravity-based energy storage well becomes operational, the operator of a gravity-based energy storage well shall, on a monthly basis, report to the supervisor the total energy discharged by the well during the prior month.3474.12. Except as otherwise provided in this article, a gravity-based energy storage well shall meet all requirements applicable to a well specified in this division.3474.14. The division shall identify all wells converted to or being operated as gravity-based energy storage wells on its internet website.3474.16. (a) On or by January 1, 2033, the Secretary for Environmental Protection, in consultation with entities operating gravity-based energy storage wells, the division, the State Water Resources Control Board and regional water quality boards, the State Air Resources Board, the State Energy Resources Conservation and Development Commission, relevant local jurisdictions, environmental and environmental justice organizations, tribes, and other stakeholders, shall evaluate the Gravity-Based Energy Storage Well Pilot Program and make recommendations to the Legislature for a framework to implement an ongoing Gravity-Based Energy Storage Well Program to provide for regulation of the operation of gravity-based energy storage wells. The recommendations shall be informed by the Gravity-Based Energy Storage Well Pilot Program and shall include, but are not limited to, all of the following:(1) Implications of conversion of a well to a gravity-based energy storage well for local land use authorization and applicability of the California Environmental Quality Act (Division 13 (commencing with Section 21000)), including designation of the appropriate lead agency.(2) Appropriate regulatory parameters, including physical design, operating conditions, mechanical integrity, and inspection protocols, for a gravity-based energy storage well to ensure safe operation and no fluid, including, but not limited to, methane, leakage to the environment, including into aquifers of beneficial use. This shall include whether the redrilling of a plugged and abandoned well may be allowed for a gravity-based energy storage well.(3) Implications of conversion of a well to a gravity-based energy storage well for existing well classifications and associated requirements.(4) Tracking and monitoring by the regulator of gravity-based energy storage wells to ensure that those wells are ultimately plugged and abandoned pursuant to Section 3208, attendant equipment and infrastructure is decommissioned, and the site remediated.(5) Fee structure for gravity-based energy storage well operations to ensure that gravity-based energy storage well operations fully compensate regulatory oversight by the state.(6) Structure and payment schedule from gravity-based energy storage well operations to fund the applicable plugging and abandonment of a gravity-based energy storage well, decommissioning of associated infrastructure, and site remediation.(7) The amount of renewable energy generated and the ease of connecting a gravity-based energy storage well to existing electrical infrastructure.(b) The recommendations pursuant to subdivision (a) shall include a review of gravity-based energy storage well operations including any leaks to the environment and loss of mechanical integrity.(c) In developing the recommendations pursuant to subdivision (a), there shall be at least one public meeting to solicit public input.(d) The recommendations shall be submitted to the Legislature in accordance with Section 9795 of the Government Code.3474.18. (a) Except as provided in subdivision (c), this article shall remain in effect only until January 1, 2035, and as of that date is repealed.(b) The authorization issued pursuant to Section 3474.2 shall terminate upon the repeal of this article.(c) Notwithstanding subdivision (a), in the absence of another program authorizing the use of gravity-based energy storage wells, idle wells that are authorized to be used as gravity-based energy storage wells under this article shall be reclassified as idle wells subject to Section 3206 and other applicable law.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 567Introduced by Senator LimnFebruary 20, 2025An act to add Section 3106.2 to, and to add and repeal Article 10 (commencing with Section 3474) of Chapter 1 of Division 3 of, the Public Resources Code, relating to oil and gas wells.LEGISLATIVE COUNSEL'S DIGESTSB 567, as introduced, Limn. Gravity-Based Energy Storage Well Pilot Program.Existing law requires the State Oil and Gas Supervisor to supervise the drilling, operation, maintenance, and abandonment of wells so as to prevent damage to life, health, property, and natural resources, damage to underground oil and gas deposits from infiltrating water and other causes, loss of oil, gas, or reservoir of energy, and damage to underground and surface waters suitable for irrigation or domestic purposes by the infiltration of, or the addition of, detrimental substances. Existing law defines wells to mean oil or gas wells or other wells related to oil or gas production.Under existing law, a person who fails to comply with the requirements relating to the regulation of wells is guilty of a misdemeanor.This bill would, until January 1, 2035, establish the Gravity-Based Energy Storage Well Pilot Program and would authorize the supervisor to authorize the conversion of not more than 1,000 wells for use as gravity-based energy storage wells, as defined, to evaluate their use, including the establishment of appropriate operating conditions and physical parameters to safely generate energy. The bill would require idle wells that are authorized for use as gravity-based energy storage wells to be identified as gravity-based energy storage wells in a plan or updates to the plan required to be filed with the supervisor. The bill would require the mechanical integrity of gravity-based energy storage wells to be assessed by the Geologic Energy Management Division not less than annually. The bill would require an operator of a gravity-based energy storage well, in the event of a loss of mechanical integrity of the well or a leak to the environment, to notify the division, the State Air Resources Board, the appropriate regional water quality control board, and schools and community members within 3,200 feet of the well and to cease operation until the mechanical integrity is restored or to plug and abandon the well, as provided. The bill would require gravity-based energy storage wells to be continuously monitored for fluid leaks. The bill would specify that the authorization for wells to be used as gravity-based energy storage wells end at the termination of the pilot program. The bill would, by January 1, 2033, require the Secretary for Environmental Protection, in consultation with certain entities, to evaluate the pilot program and make recommendations to the Legislature for a framework to implement an ongoing Gravity-Based Energy Storage Well Program to regulate the operation of gravity-based energy storage wells.Because a violation of the requirements of the Gravity-Based Energy Storage Well Pilot Program would be a crime, this bill would impose a state-mandated local program.This bill would prohibit the supervisor from authorizing or allowing the use of a well or hydrocarbon reservoir for any purpose other than provided for in law.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 567
Introduced by Senator LimnFebruary 20, 2025
Introduced by Senator Limn
February 20, 2025
An act to add Section 3106.2 to, and to add and repeal Article 10 (commencing with Section 3474) of Chapter 1 of Division 3 of, the Public Resources Code, relating to oil and gas wells.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 567, as introduced, Limn. Gravity-Based Energy Storage Well Pilot Program.
Existing law requires the State Oil and Gas Supervisor to supervise the drilling, operation, maintenance, and abandonment of wells so as to prevent damage to life, health, property, and natural resources, damage to underground oil and gas deposits from infiltrating water and other causes, loss of oil, gas, or reservoir of energy, and damage to underground and surface waters suitable for irrigation or domestic purposes by the infiltration of, or the addition of, detrimental substances. Existing law defines wells to mean oil or gas wells or other wells related to oil or gas production.Under existing law, a person who fails to comply with the requirements relating to the regulation of wells is guilty of a misdemeanor.This bill would, until January 1, 2035, establish the Gravity-Based Energy Storage Well Pilot Program and would authorize the supervisor to authorize the conversion of not more than 1,000 wells for use as gravity-based energy storage wells, as defined, to evaluate their use, including the establishment of appropriate operating conditions and physical parameters to safely generate energy. The bill would require idle wells that are authorized for use as gravity-based energy storage wells to be identified as gravity-based energy storage wells in a plan or updates to the plan required to be filed with the supervisor. The bill would require the mechanical integrity of gravity-based energy storage wells to be assessed by the Geologic Energy Management Division not less than annually. The bill would require an operator of a gravity-based energy storage well, in the event of a loss of mechanical integrity of the well or a leak to the environment, to notify the division, the State Air Resources Board, the appropriate regional water quality control board, and schools and community members within 3,200 feet of the well and to cease operation until the mechanical integrity is restored or to plug and abandon the well, as provided. The bill would require gravity-based energy storage wells to be continuously monitored for fluid leaks. The bill would specify that the authorization for wells to be used as gravity-based energy storage wells end at the termination of the pilot program. The bill would, by January 1, 2033, require the Secretary for Environmental Protection, in consultation with certain entities, to evaluate the pilot program and make recommendations to the Legislature for a framework to implement an ongoing Gravity-Based Energy Storage Well Program to regulate the operation of gravity-based energy storage wells.Because a violation of the requirements of the Gravity-Based Energy Storage Well Pilot Program would be a crime, this bill would impose a state-mandated local program.This bill would prohibit the supervisor from authorizing or allowing the use of a well or hydrocarbon reservoir for any purpose other than provided for in law.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law requires the State Oil and Gas Supervisor to supervise the drilling, operation, maintenance, and abandonment of wells so as to prevent damage to life, health, property, and natural resources, damage to underground oil and gas deposits from infiltrating water and other causes, loss of oil, gas, or reservoir of energy, and damage to underground and surface waters suitable for irrigation or domestic purposes by the infiltration of, or the addition of, detrimental substances. Existing law defines wells to mean oil or gas wells or other wells related to oil or gas production.
Under existing law, a person who fails to comply with the requirements relating to the regulation of wells is guilty of a misdemeanor.
This bill would, until January 1, 2035, establish the Gravity-Based Energy Storage Well Pilot Program and would authorize the supervisor to authorize the conversion of not more than 1,000 wells for use as gravity-based energy storage wells, as defined, to evaluate their use, including the establishment of appropriate operating conditions and physical parameters to safely generate energy. The bill would require idle wells that are authorized for use as gravity-based energy storage wells to be identified as gravity-based energy storage wells in a plan or updates to the plan required to be filed with the supervisor. The bill would require the mechanical integrity of gravity-based energy storage wells to be assessed by the Geologic Energy Management Division not less than annually. The bill would require an operator of a gravity-based energy storage well, in the event of a loss of mechanical integrity of the well or a leak to the environment, to notify the division, the State Air Resources Board, the appropriate regional water quality control board, and schools and community members within 3,200 feet of the well and to cease operation until the mechanical integrity is restored or to plug and abandon the well, as provided. The bill would require gravity-based energy storage wells to be continuously monitored for fluid leaks. The bill would specify that the authorization for wells to be used as gravity-based energy storage wells end at the termination of the pilot program. The bill would, by January 1, 2033, require the Secretary for Environmental Protection, in consultation with certain entities, to evaluate the pilot program and make recommendations to the Legislature for a framework to implement an ongoing Gravity-Based Energy Storage Well Program to regulate the operation of gravity-based energy storage wells.
Because a violation of the requirements of the Gravity-Based Energy Storage Well Pilot Program would be a crime, this bill would impose a state-mandated local program.
This bill would prohibit the supervisor from authorizing or allowing the use of a well or hydrocarbon reservoir for any purpose other than provided for in law.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 3106.2 is added to the Public Resources Code, to read:3106.2. The supervisor shall not authorize or allow the use of a well or hydrocarbon reservoir for any purpose other than provided for in this division, including Section 3106.SEC. 2. Article 10 (commencing with Section 3474) is added to Chapter 1 of Division 3 of the Public Resources Code, to read: Article 10. Gravity-Based Energy Storage Well Pilot Program3474. For purposes of this article, the following definitions apply:(a) Federal agency means the United States Environmental Protection Agency, including Region 9 of that agency.(b) (1) Gravity-based energy storage well means a well that meets all of the following:(A) The well is plugged with all perforations sealed, including by the use of permanent bridge plug.(B) The well is isolated from a hydrocarbon reservoir.(C) The well has mechanical integrity.(D) The well is not a conduit for fluid migration into a beneficial use aquifer,(E) The well is exclusively used to store or generate energy by raising or lowering a weight within the well casing.(2) A well that has been fully plugged and abandoned pursuant to Section 3208 is not eligible to be a gravity-based energy storage well.(3) A well listed as an orphan well pursuant to subparagraph (C) of paragraph (1) of subdivision (a) of Section 3206.3 or an idle-deserted well, as defined in Section 3251, is eligible to be converted for use as a gravity-based energy storage well if all applicable and necessary rights to do so have been obtained. 3474.2. (a) The supervisor may authorize the conversion of not more than 1,000 wells for use as gravity-based energy storage wells pursuant to this article to evaluate their use, including the establishment of appropriate operating conditions and physical parameters to safely store and generate energy.(b) Before authorizing the use of a well as a gravity-based energy storage well, the supervisor may require the operator to provide additional information demonstrating the suitability of the well for use as a gravity-based energy storage well.(c) The conversion of a well for use as a gravity-based energy storage well does not relieve the operator of its obligation to plug and abandon the well, decommission attendant facilities, and remediate the site.(d) The supervisor may assess a fee not to exceed the reasonable costs incurred by the division in implementing this article.3474.4. A well that has been permitted or operated as a Class II well, as defined in Section 3130, shall not be authorized for use as a gravity-based energy storage well without the written acknowledgment and authorization from the federal agency. The written acknowledgment and authorization shall be part of the well record.3474.6. (a) (1) An idle well that is authorized for use as a gravity-based energy storage well shall be identified as a gravity-based energy storage well in any plan or update to a plan required pursuant to paragraph (2) of subdivision (a) of Section 3206 and shall not be required to be eliminated.(2) An operator shall update an applicable plan pursuant to paragraph (2) of subdivision (a) of Section 3206 to identify the use of an idle well as a gravity-based energy storage well not less than annually.(b) (1) An idle well that is authorized for use as a gravity-based energy storage well remains subject to the requirements of Section 3205.3 and the applicable idle well fee specified in paragraph (1) of subdivision (a) of Section 3206.(2) An operator that ceases to operate an idle well as a gravity-based energy storage well shall identify that well as an idle well in any plan or update to a plan required pursuant to paragraph (2) of subdivision (a) of Section 3206.3474.8. (a) The mechanical integrity of a gravity-based energy storage well shall be assessed by the division not less than annually and shall include, at a minimum, pressure testing. The assessment shall be part of the well record. A gravity-based energy storage well that has lost mechanical integrity shall cease operation as a gravity-based energy storage well until mechanical integrity is restored. In the event of a loss of mechanical integrity or leak to the environment, the operator of a gravity-based energy storage well shall notify the division, the State Air Resources Board, the appropriate regional water quality control board, and any schools or community members living within 3,200 feet of the well of the loss of mechanical integrity or leak.(b) A well after being converted for use as a gravity-based energy storage well shall be continuously monitored for fluid leaks, including, but not limited to, methane leaks. The supervisor, in consultation with the State Air Resources Board and the State Water Resources Control Board, shall establish criteria for fluid leak monitoring and reporting.3474.9. A gravity-based energy storage well that has lost its mechanical integrity shall be plugged and abandoned within one year or scheduled for plugging and abandonment in an approved idle well management plan or related plan approved by the supervisor unless the mechanical integrity of the well is restored.3474.10. Beginning after the first month in which the gravity-based energy storage well becomes operational, the operator of a gravity-based energy storage well shall, on a monthly basis, report to the supervisor the total energy discharged by the well during the prior month.3474.12. Except as otherwise provided in this article, a gravity-based energy storage well shall meet all requirements applicable to a well specified in this division.3474.14. The division shall identify all wells converted to or being operated as gravity-based energy storage wells on its internet website.3474.16. (a) On or by January 1, 2033, the Secretary for Environmental Protection, in consultation with entities operating gravity-based energy storage wells, the division, the State Water Resources Control Board and regional water quality boards, the State Air Resources Board, the State Energy Resources Conservation and Development Commission, relevant local jurisdictions, environmental and environmental justice organizations, tribes, and other stakeholders, shall evaluate the Gravity-Based Energy Storage Well Pilot Program and make recommendations to the Legislature for a framework to implement an ongoing Gravity-Based Energy Storage Well Program to provide for regulation of the operation of gravity-based energy storage wells. The recommendations shall be informed by the Gravity-Based Energy Storage Well Pilot Program and shall include, but are not limited to, all of the following:(1) Implications of conversion of a well to a gravity-based energy storage well for local land use authorization and applicability of the California Environmental Quality Act (Division 13 (commencing with Section 21000)), including designation of the appropriate lead agency.(2) Appropriate regulatory parameters, including physical design, operating conditions, mechanical integrity, and inspection protocols, for a gravity-based energy storage well to ensure safe operation and no fluid, including, but not limited to, methane, leakage to the environment, including into aquifers of beneficial use. This shall include whether the redrilling of a plugged and abandoned well may be allowed for a gravity-based energy storage well.(3) Implications of conversion of a well to a gravity-based energy storage well for existing well classifications and associated requirements.(4) Tracking and monitoring by the regulator of gravity-based energy storage wells to ensure that those wells are ultimately plugged and abandoned pursuant to Section 3208, attendant equipment and infrastructure is decommissioned, and the site remediated.(5) Fee structure for gravity-based energy storage well operations to ensure that gravity-based energy storage well operations fully compensate regulatory oversight by the state.(6) Structure and payment schedule from gravity-based energy storage well operations to fund the applicable plugging and abandonment of a gravity-based energy storage well, decommissioning of associated infrastructure, and site remediation.(7) The amount of renewable energy generated and the ease of connecting a gravity-based energy storage well to existing electrical infrastructure.(b) The recommendations pursuant to subdivision (a) shall include a review of gravity-based energy storage well operations including any leaks to the environment and loss of mechanical integrity.(c) In developing the recommendations pursuant to subdivision (a), there shall be at least one public meeting to solicit public input.(d) The recommendations shall be submitted to the Legislature in accordance with Section 9795 of the Government Code.3474.18. (a) Except as provided in subdivision (c), this article shall remain in effect only until January 1, 2035, and as of that date is repealed.(b) The authorization issued pursuant to Section 3474.2 shall terminate upon the repeal of this article.(c) Notwithstanding subdivision (a), in the absence of another program authorizing the use of gravity-based energy storage wells, idle wells that are authorized to be used as gravity-based energy storage wells under this article shall be reclassified as idle wells subject to Section 3206 and other applicable law.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 3106.2 is added to the Public Resources Code, to read:3106.2. The supervisor shall not authorize or allow the use of a well or hydrocarbon reservoir for any purpose other than provided for in this division, including Section 3106.
SECTION 1. Section 3106.2 is added to the Public Resources Code, to read:
### SECTION 1.
3106.2. The supervisor shall not authorize or allow the use of a well or hydrocarbon reservoir for any purpose other than provided for in this division, including Section 3106.
3106.2. The supervisor shall not authorize or allow the use of a well or hydrocarbon reservoir for any purpose other than provided for in this division, including Section 3106.
3106.2. The supervisor shall not authorize or allow the use of a well or hydrocarbon reservoir for any purpose other than provided for in this division, including Section 3106.
3106.2. The supervisor shall not authorize or allow the use of a well or hydrocarbon reservoir for any purpose other than provided for in this division, including Section 3106.
SEC. 2. Article 10 (commencing with Section 3474) is added to Chapter 1 of Division 3 of the Public Resources Code, to read: Article 10. Gravity-Based Energy Storage Well Pilot Program3474. For purposes of this article, the following definitions apply:(a) Federal agency means the United States Environmental Protection Agency, including Region 9 of that agency.(b) (1) Gravity-based energy storage well means a well that meets all of the following:(A) The well is plugged with all perforations sealed, including by the use of permanent bridge plug.(B) The well is isolated from a hydrocarbon reservoir.(C) The well has mechanical integrity.(D) The well is not a conduit for fluid migration into a beneficial use aquifer,(E) The well is exclusively used to store or generate energy by raising or lowering a weight within the well casing.(2) A well that has been fully plugged and abandoned pursuant to Section 3208 is not eligible to be a gravity-based energy storage well.(3) A well listed as an orphan well pursuant to subparagraph (C) of paragraph (1) of subdivision (a) of Section 3206.3 or an idle-deserted well, as defined in Section 3251, is eligible to be converted for use as a gravity-based energy storage well if all applicable and necessary rights to do so have been obtained. 3474.2. (a) The supervisor may authorize the conversion of not more than 1,000 wells for use as gravity-based energy storage wells pursuant to this article to evaluate their use, including the establishment of appropriate operating conditions and physical parameters to safely store and generate energy.(b) Before authorizing the use of a well as a gravity-based energy storage well, the supervisor may require the operator to provide additional information demonstrating the suitability of the well for use as a gravity-based energy storage well.(c) The conversion of a well for use as a gravity-based energy storage well does not relieve the operator of its obligation to plug and abandon the well, decommission attendant facilities, and remediate the site.(d) The supervisor may assess a fee not to exceed the reasonable costs incurred by the division in implementing this article.3474.4. A well that has been permitted or operated as a Class II well, as defined in Section 3130, shall not be authorized for use as a gravity-based energy storage well without the written acknowledgment and authorization from the federal agency. The written acknowledgment and authorization shall be part of the well record.3474.6. (a) (1) An idle well that is authorized for use as a gravity-based energy storage well shall be identified as a gravity-based energy storage well in any plan or update to a plan required pursuant to paragraph (2) of subdivision (a) of Section 3206 and shall not be required to be eliminated.(2) An operator shall update an applicable plan pursuant to paragraph (2) of subdivision (a) of Section 3206 to identify the use of an idle well as a gravity-based energy storage well not less than annually.(b) (1) An idle well that is authorized for use as a gravity-based energy storage well remains subject to the requirements of Section 3205.3 and the applicable idle well fee specified in paragraph (1) of subdivision (a) of Section 3206.(2) An operator that ceases to operate an idle well as a gravity-based energy storage well shall identify that well as an idle well in any plan or update to a plan required pursuant to paragraph (2) of subdivision (a) of Section 3206.3474.8. (a) The mechanical integrity of a gravity-based energy storage well shall be assessed by the division not less than annually and shall include, at a minimum, pressure testing. The assessment shall be part of the well record. A gravity-based energy storage well that has lost mechanical integrity shall cease operation as a gravity-based energy storage well until mechanical integrity is restored. In the event of a loss of mechanical integrity or leak to the environment, the operator of a gravity-based energy storage well shall notify the division, the State Air Resources Board, the appropriate regional water quality control board, and any schools or community members living within 3,200 feet of the well of the loss of mechanical integrity or leak.(b) A well after being converted for use as a gravity-based energy storage well shall be continuously monitored for fluid leaks, including, but not limited to, methane leaks. The supervisor, in consultation with the State Air Resources Board and the State Water Resources Control Board, shall establish criteria for fluid leak monitoring and reporting.3474.9. A gravity-based energy storage well that has lost its mechanical integrity shall be plugged and abandoned within one year or scheduled for plugging and abandonment in an approved idle well management plan or related plan approved by the supervisor unless the mechanical integrity of the well is restored.3474.10. Beginning after the first month in which the gravity-based energy storage well becomes operational, the operator of a gravity-based energy storage well shall, on a monthly basis, report to the supervisor the total energy discharged by the well during the prior month.3474.12. Except as otherwise provided in this article, a gravity-based energy storage well shall meet all requirements applicable to a well specified in this division.3474.14. The division shall identify all wells converted to or being operated as gravity-based energy storage wells on its internet website.3474.16. (a) On or by January 1, 2033, the Secretary for Environmental Protection, in consultation with entities operating gravity-based energy storage wells, the division, the State Water Resources Control Board and regional water quality boards, the State Air Resources Board, the State Energy Resources Conservation and Development Commission, relevant local jurisdictions, environmental and environmental justice organizations, tribes, and other stakeholders, shall evaluate the Gravity-Based Energy Storage Well Pilot Program and make recommendations to the Legislature for a framework to implement an ongoing Gravity-Based Energy Storage Well Program to provide for regulation of the operation of gravity-based energy storage wells. The recommendations shall be informed by the Gravity-Based Energy Storage Well Pilot Program and shall include, but are not limited to, all of the following:(1) Implications of conversion of a well to a gravity-based energy storage well for local land use authorization and applicability of the California Environmental Quality Act (Division 13 (commencing with Section 21000)), including designation of the appropriate lead agency.(2) Appropriate regulatory parameters, including physical design, operating conditions, mechanical integrity, and inspection protocols, for a gravity-based energy storage well to ensure safe operation and no fluid, including, but not limited to, methane, leakage to the environment, including into aquifers of beneficial use. This shall include whether the redrilling of a plugged and abandoned well may be allowed for a gravity-based energy storage well.(3) Implications of conversion of a well to a gravity-based energy storage well for existing well classifications and associated requirements.(4) Tracking and monitoring by the regulator of gravity-based energy storage wells to ensure that those wells are ultimately plugged and abandoned pursuant to Section 3208, attendant equipment and infrastructure is decommissioned, and the site remediated.(5) Fee structure for gravity-based energy storage well operations to ensure that gravity-based energy storage well operations fully compensate regulatory oversight by the state.(6) Structure and payment schedule from gravity-based energy storage well operations to fund the applicable plugging and abandonment of a gravity-based energy storage well, decommissioning of associated infrastructure, and site remediation.(7) The amount of renewable energy generated and the ease of connecting a gravity-based energy storage well to existing electrical infrastructure.(b) The recommendations pursuant to subdivision (a) shall include a review of gravity-based energy storage well operations including any leaks to the environment and loss of mechanical integrity.(c) In developing the recommendations pursuant to subdivision (a), there shall be at least one public meeting to solicit public input.(d) The recommendations shall be submitted to the Legislature in accordance with Section 9795 of the Government Code.3474.18. (a) Except as provided in subdivision (c), this article shall remain in effect only until January 1, 2035, and as of that date is repealed.(b) The authorization issued pursuant to Section 3474.2 shall terminate upon the repeal of this article.(c) Notwithstanding subdivision (a), in the absence of another program authorizing the use of gravity-based energy storage wells, idle wells that are authorized to be used as gravity-based energy storage wells under this article shall be reclassified as idle wells subject to Section 3206 and other applicable law.
SEC. 2. Article 10 (commencing with Section 3474) is added to Chapter 1 of Division 3 of the Public Resources Code, to read:
### SEC. 2.
Article 10. Gravity-Based Energy Storage Well Pilot Program3474. For purposes of this article, the following definitions apply:(a) Federal agency means the United States Environmental Protection Agency, including Region 9 of that agency.(b) (1) Gravity-based energy storage well means a well that meets all of the following:(A) The well is plugged with all perforations sealed, including by the use of permanent bridge plug.(B) The well is isolated from a hydrocarbon reservoir.(C) The well has mechanical integrity.(D) The well is not a conduit for fluid migration into a beneficial use aquifer,(E) The well is exclusively used to store or generate energy by raising or lowering a weight within the well casing.(2) A well that has been fully plugged and abandoned pursuant to Section 3208 is not eligible to be a gravity-based energy storage well.(3) A well listed as an orphan well pursuant to subparagraph (C) of paragraph (1) of subdivision (a) of Section 3206.3 or an idle-deserted well, as defined in Section 3251, is eligible to be converted for use as a gravity-based energy storage well if all applicable and necessary rights to do so have been obtained. 3474.2. (a) The supervisor may authorize the conversion of not more than 1,000 wells for use as gravity-based energy storage wells pursuant to this article to evaluate their use, including the establishment of appropriate operating conditions and physical parameters to safely store and generate energy.(b) Before authorizing the use of a well as a gravity-based energy storage well, the supervisor may require the operator to provide additional information demonstrating the suitability of the well for use as a gravity-based energy storage well.(c) The conversion of a well for use as a gravity-based energy storage well does not relieve the operator of its obligation to plug and abandon the well, decommission attendant facilities, and remediate the site.(d) The supervisor may assess a fee not to exceed the reasonable costs incurred by the division in implementing this article.3474.4. A well that has been permitted or operated as a Class II well, as defined in Section 3130, shall not be authorized for use as a gravity-based energy storage well without the written acknowledgment and authorization from the federal agency. The written acknowledgment and authorization shall be part of the well record.3474.6. (a) (1) An idle well that is authorized for use as a gravity-based energy storage well shall be identified as a gravity-based energy storage well in any plan or update to a plan required pursuant to paragraph (2) of subdivision (a) of Section 3206 and shall not be required to be eliminated.(2) An operator shall update an applicable plan pursuant to paragraph (2) of subdivision (a) of Section 3206 to identify the use of an idle well as a gravity-based energy storage well not less than annually.(b) (1) An idle well that is authorized for use as a gravity-based energy storage well remains subject to the requirements of Section 3205.3 and the applicable idle well fee specified in paragraph (1) of subdivision (a) of Section 3206.(2) An operator that ceases to operate an idle well as a gravity-based energy storage well shall identify that well as an idle well in any plan or update to a plan required pursuant to paragraph (2) of subdivision (a) of Section 3206.3474.8. (a) The mechanical integrity of a gravity-based energy storage well shall be assessed by the division not less than annually and shall include, at a minimum, pressure testing. The assessment shall be part of the well record. A gravity-based energy storage well that has lost mechanical integrity shall cease operation as a gravity-based energy storage well until mechanical integrity is restored. In the event of a loss of mechanical integrity or leak to the environment, the operator of a gravity-based energy storage well shall notify the division, the State Air Resources Board, the appropriate regional water quality control board, and any schools or community members living within 3,200 feet of the well of the loss of mechanical integrity or leak.(b) A well after being converted for use as a gravity-based energy storage well shall be continuously monitored for fluid leaks, including, but not limited to, methane leaks. The supervisor, in consultation with the State Air Resources Board and the State Water Resources Control Board, shall establish criteria for fluid leak monitoring and reporting.3474.9. A gravity-based energy storage well that has lost its mechanical integrity shall be plugged and abandoned within one year or scheduled for plugging and abandonment in an approved idle well management plan or related plan approved by the supervisor unless the mechanical integrity of the well is restored.3474.10. Beginning after the first month in which the gravity-based energy storage well becomes operational, the operator of a gravity-based energy storage well shall, on a monthly basis, report to the supervisor the total energy discharged by the well during the prior month.3474.12. Except as otherwise provided in this article, a gravity-based energy storage well shall meet all requirements applicable to a well specified in this division.3474.14. The division shall identify all wells converted to or being operated as gravity-based energy storage wells on its internet website.3474.16. (a) On or by January 1, 2033, the Secretary for Environmental Protection, in consultation with entities operating gravity-based energy storage wells, the division, the State Water Resources Control Board and regional water quality boards, the State Air Resources Board, the State Energy Resources Conservation and Development Commission, relevant local jurisdictions, environmental and environmental justice organizations, tribes, and other stakeholders, shall evaluate the Gravity-Based Energy Storage Well Pilot Program and make recommendations to the Legislature for a framework to implement an ongoing Gravity-Based Energy Storage Well Program to provide for regulation of the operation of gravity-based energy storage wells. The recommendations shall be informed by the Gravity-Based Energy Storage Well Pilot Program and shall include, but are not limited to, all of the following:(1) Implications of conversion of a well to a gravity-based energy storage well for local land use authorization and applicability of the California Environmental Quality Act (Division 13 (commencing with Section 21000)), including designation of the appropriate lead agency.(2) Appropriate regulatory parameters, including physical design, operating conditions, mechanical integrity, and inspection protocols, for a gravity-based energy storage well to ensure safe operation and no fluid, including, but not limited to, methane, leakage to the environment, including into aquifers of beneficial use. This shall include whether the redrilling of a plugged and abandoned well may be allowed for a gravity-based energy storage well.(3) Implications of conversion of a well to a gravity-based energy storage well for existing well classifications and associated requirements.(4) Tracking and monitoring by the regulator of gravity-based energy storage wells to ensure that those wells are ultimately plugged and abandoned pursuant to Section 3208, attendant equipment and infrastructure is decommissioned, and the site remediated.(5) Fee structure for gravity-based energy storage well operations to ensure that gravity-based energy storage well operations fully compensate regulatory oversight by the state.(6) Structure and payment schedule from gravity-based energy storage well operations to fund the applicable plugging and abandonment of a gravity-based energy storage well, decommissioning of associated infrastructure, and site remediation.(7) The amount of renewable energy generated and the ease of connecting a gravity-based energy storage well to existing electrical infrastructure.(b) The recommendations pursuant to subdivision (a) shall include a review of gravity-based energy storage well operations including any leaks to the environment and loss of mechanical integrity.(c) In developing the recommendations pursuant to subdivision (a), there shall be at least one public meeting to solicit public input.(d) The recommendations shall be submitted to the Legislature in accordance with Section 9795 of the Government Code.3474.18. (a) Except as provided in subdivision (c), this article shall remain in effect only until January 1, 2035, and as of that date is repealed.(b) The authorization issued pursuant to Section 3474.2 shall terminate upon the repeal of this article.(c) Notwithstanding subdivision (a), in the absence of another program authorizing the use of gravity-based energy storage wells, idle wells that are authorized to be used as gravity-based energy storage wells under this article shall be reclassified as idle wells subject to Section 3206 and other applicable law.
Article 10. Gravity-Based Energy Storage Well Pilot Program3474. For purposes of this article, the following definitions apply:(a) Federal agency means the United States Environmental Protection Agency, including Region 9 of that agency.(b) (1) Gravity-based energy storage well means a well that meets all of the following:(A) The well is plugged with all perforations sealed, including by the use of permanent bridge plug.(B) The well is isolated from a hydrocarbon reservoir.(C) The well has mechanical integrity.(D) The well is not a conduit for fluid migration into a beneficial use aquifer,(E) The well is exclusively used to store or generate energy by raising or lowering a weight within the well casing.(2) A well that has been fully plugged and abandoned pursuant to Section 3208 is not eligible to be a gravity-based energy storage well.(3) A well listed as an orphan well pursuant to subparagraph (C) of paragraph (1) of subdivision (a) of Section 3206.3 or an idle-deserted well, as defined in Section 3251, is eligible to be converted for use as a gravity-based energy storage well if all applicable and necessary rights to do so have been obtained. 3474.2. (a) The supervisor may authorize the conversion of not more than 1,000 wells for use as gravity-based energy storage wells pursuant to this article to evaluate their use, including the establishment of appropriate operating conditions and physical parameters to safely store and generate energy.(b) Before authorizing the use of a well as a gravity-based energy storage well, the supervisor may require the operator to provide additional information demonstrating the suitability of the well for use as a gravity-based energy storage well.(c) The conversion of a well for use as a gravity-based energy storage well does not relieve the operator of its obligation to plug and abandon the well, decommission attendant facilities, and remediate the site.(d) The supervisor may assess a fee not to exceed the reasonable costs incurred by the division in implementing this article.3474.4. A well that has been permitted or operated as a Class II well, as defined in Section 3130, shall not be authorized for use as a gravity-based energy storage well without the written acknowledgment and authorization from the federal agency. The written acknowledgment and authorization shall be part of the well record.3474.6. (a) (1) An idle well that is authorized for use as a gravity-based energy storage well shall be identified as a gravity-based energy storage well in any plan or update to a plan required pursuant to paragraph (2) of subdivision (a) of Section 3206 and shall not be required to be eliminated.(2) An operator shall update an applicable plan pursuant to paragraph (2) of subdivision (a) of Section 3206 to identify the use of an idle well as a gravity-based energy storage well not less than annually.(b) (1) An idle well that is authorized for use as a gravity-based energy storage well remains subject to the requirements of Section 3205.3 and the applicable idle well fee specified in paragraph (1) of subdivision (a) of Section 3206.(2) An operator that ceases to operate an idle well as a gravity-based energy storage well shall identify that well as an idle well in any plan or update to a plan required pursuant to paragraph (2) of subdivision (a) of Section 3206.3474.8. (a) The mechanical integrity of a gravity-based energy storage well shall be assessed by the division not less than annually and shall include, at a minimum, pressure testing. The assessment shall be part of the well record. A gravity-based energy storage well that has lost mechanical integrity shall cease operation as a gravity-based energy storage well until mechanical integrity is restored. In the event of a loss of mechanical integrity or leak to the environment, the operator of a gravity-based energy storage well shall notify the division, the State Air Resources Board, the appropriate regional water quality control board, and any schools or community members living within 3,200 feet of the well of the loss of mechanical integrity or leak.(b) A well after being converted for use as a gravity-based energy storage well shall be continuously monitored for fluid leaks, including, but not limited to, methane leaks. The supervisor, in consultation with the State Air Resources Board and the State Water Resources Control Board, shall establish criteria for fluid leak monitoring and reporting.3474.9. A gravity-based energy storage well that has lost its mechanical integrity shall be plugged and abandoned within one year or scheduled for plugging and abandonment in an approved idle well management plan or related plan approved by the supervisor unless the mechanical integrity of the well is restored.3474.10. Beginning after the first month in which the gravity-based energy storage well becomes operational, the operator of a gravity-based energy storage well shall, on a monthly basis, report to the supervisor the total energy discharged by the well during the prior month.3474.12. Except as otherwise provided in this article, a gravity-based energy storage well shall meet all requirements applicable to a well specified in this division.3474.14. The division shall identify all wells converted to or being operated as gravity-based energy storage wells on its internet website.3474.16. (a) On or by January 1, 2033, the Secretary for Environmental Protection, in consultation with entities operating gravity-based energy storage wells, the division, the State Water Resources Control Board and regional water quality boards, the State Air Resources Board, the State Energy Resources Conservation and Development Commission, relevant local jurisdictions, environmental and environmental justice organizations, tribes, and other stakeholders, shall evaluate the Gravity-Based Energy Storage Well Pilot Program and make recommendations to the Legislature for a framework to implement an ongoing Gravity-Based Energy Storage Well Program to provide for regulation of the operation of gravity-based energy storage wells. The recommendations shall be informed by the Gravity-Based Energy Storage Well Pilot Program and shall include, but are not limited to, all of the following:(1) Implications of conversion of a well to a gravity-based energy storage well for local land use authorization and applicability of the California Environmental Quality Act (Division 13 (commencing with Section 21000)), including designation of the appropriate lead agency.(2) Appropriate regulatory parameters, including physical design, operating conditions, mechanical integrity, and inspection protocols, for a gravity-based energy storage well to ensure safe operation and no fluid, including, but not limited to, methane, leakage to the environment, including into aquifers of beneficial use. This shall include whether the redrilling of a plugged and abandoned well may be allowed for a gravity-based energy storage well.(3) Implications of conversion of a well to a gravity-based energy storage well for existing well classifications and associated requirements.(4) Tracking and monitoring by the regulator of gravity-based energy storage wells to ensure that those wells are ultimately plugged and abandoned pursuant to Section 3208, attendant equipment and infrastructure is decommissioned, and the site remediated.(5) Fee structure for gravity-based energy storage well operations to ensure that gravity-based energy storage well operations fully compensate regulatory oversight by the state.(6) Structure and payment schedule from gravity-based energy storage well operations to fund the applicable plugging and abandonment of a gravity-based energy storage well, decommissioning of associated infrastructure, and site remediation.(7) The amount of renewable energy generated and the ease of connecting a gravity-based energy storage well to existing electrical infrastructure.(b) The recommendations pursuant to subdivision (a) shall include a review of gravity-based energy storage well operations including any leaks to the environment and loss of mechanical integrity.(c) In developing the recommendations pursuant to subdivision (a), there shall be at least one public meeting to solicit public input.(d) The recommendations shall be submitted to the Legislature in accordance with Section 9795 of the Government Code.3474.18. (a) Except as provided in subdivision (c), this article shall remain in effect only until January 1, 2035, and as of that date is repealed.(b) The authorization issued pursuant to Section 3474.2 shall terminate upon the repeal of this article.(c) Notwithstanding subdivision (a), in the absence of another program authorizing the use of gravity-based energy storage wells, idle wells that are authorized to be used as gravity-based energy storage wells under this article shall be reclassified as idle wells subject to Section 3206 and other applicable law.
Article 10. Gravity-Based Energy Storage Well Pilot Program
Article 10. Gravity-Based Energy Storage Well Pilot Program
3474. For purposes of this article, the following definitions apply:(a) Federal agency means the United States Environmental Protection Agency, including Region 9 of that agency.(b) (1) Gravity-based energy storage well means a well that meets all of the following:(A) The well is plugged with all perforations sealed, including by the use of permanent bridge plug.(B) The well is isolated from a hydrocarbon reservoir.(C) The well has mechanical integrity.(D) The well is not a conduit for fluid migration into a beneficial use aquifer,(E) The well is exclusively used to store or generate energy by raising or lowering a weight within the well casing.(2) A well that has been fully plugged and abandoned pursuant to Section 3208 is not eligible to be a gravity-based energy storage well.(3) A well listed as an orphan well pursuant to subparagraph (C) of paragraph (1) of subdivision (a) of Section 3206.3 or an idle-deserted well, as defined in Section 3251, is eligible to be converted for use as a gravity-based energy storage well if all applicable and necessary rights to do so have been obtained.
3474. For purposes of this article, the following definitions apply:
(a) Federal agency means the United States Environmental Protection Agency, including Region 9 of that agency.
(b) (1) Gravity-based energy storage well means a well that meets all of the following:
(A) The well is plugged with all perforations sealed, including by the use of permanent bridge plug.
(B) The well is isolated from a hydrocarbon reservoir.
(C) The well has mechanical integrity.
(D) The well is not a conduit for fluid migration into a beneficial use aquifer,
(E) The well is exclusively used to store or generate energy by raising or lowering a weight within the well casing.
(2) A well that has been fully plugged and abandoned pursuant to Section 3208 is not eligible to be a gravity-based energy storage well.
(3) A well listed as an orphan well pursuant to subparagraph (C) of paragraph (1) of subdivision (a) of Section 3206.3 or an idle-deserted well, as defined in Section 3251, is eligible to be converted for use as a gravity-based energy storage well if all applicable and necessary rights to do so have been obtained.
3474.2. (a) The supervisor may authorize the conversion of not more than 1,000 wells for use as gravity-based energy storage wells pursuant to this article to evaluate their use, including the establishment of appropriate operating conditions and physical parameters to safely store and generate energy.(b) Before authorizing the use of a well as a gravity-based energy storage well, the supervisor may require the operator to provide additional information demonstrating the suitability of the well for use as a gravity-based energy storage well.(c) The conversion of a well for use as a gravity-based energy storage well does not relieve the operator of its obligation to plug and abandon the well, decommission attendant facilities, and remediate the site.(d) The supervisor may assess a fee not to exceed the reasonable costs incurred by the division in implementing this article.
3474.2. (a) The supervisor may authorize the conversion of not more than 1,000 wells for use as gravity-based energy storage wells pursuant to this article to evaluate their use, including the establishment of appropriate operating conditions and physical parameters to safely store and generate energy.
(b) Before authorizing the use of a well as a gravity-based energy storage well, the supervisor may require the operator to provide additional information demonstrating the suitability of the well for use as a gravity-based energy storage well.
(c) The conversion of a well for use as a gravity-based energy storage well does not relieve the operator of its obligation to plug and abandon the well, decommission attendant facilities, and remediate the site.
(d) The supervisor may assess a fee not to exceed the reasonable costs incurred by the division in implementing this article.
3474.4. A well that has been permitted or operated as a Class II well, as defined in Section 3130, shall not be authorized for use as a gravity-based energy storage well without the written acknowledgment and authorization from the federal agency. The written acknowledgment and authorization shall be part of the well record.
3474.4. A well that has been permitted or operated as a Class II well, as defined in Section 3130, shall not be authorized for use as a gravity-based energy storage well without the written acknowledgment and authorization from the federal agency. The written acknowledgment and authorization shall be part of the well record.
3474.6. (a) (1) An idle well that is authorized for use as a gravity-based energy storage well shall be identified as a gravity-based energy storage well in any plan or update to a plan required pursuant to paragraph (2) of subdivision (a) of Section 3206 and shall not be required to be eliminated.(2) An operator shall update an applicable plan pursuant to paragraph (2) of subdivision (a) of Section 3206 to identify the use of an idle well as a gravity-based energy storage well not less than annually.(b) (1) An idle well that is authorized for use as a gravity-based energy storage well remains subject to the requirements of Section 3205.3 and the applicable idle well fee specified in paragraph (1) of subdivision (a) of Section 3206.(2) An operator that ceases to operate an idle well as a gravity-based energy storage well shall identify that well as an idle well in any plan or update to a plan required pursuant to paragraph (2) of subdivision (a) of Section 3206.
3474.6. (a) (1) An idle well that is authorized for use as a gravity-based energy storage well shall be identified as a gravity-based energy storage well in any plan or update to a plan required pursuant to paragraph (2) of subdivision (a) of Section 3206 and shall not be required to be eliminated.
(2) An operator shall update an applicable plan pursuant to paragraph (2) of subdivision (a) of Section 3206 to identify the use of an idle well as a gravity-based energy storage well not less than annually.
(b) (1) An idle well that is authorized for use as a gravity-based energy storage well remains subject to the requirements of Section 3205.3 and the applicable idle well fee specified in paragraph (1) of subdivision (a) of Section 3206.
(2) An operator that ceases to operate an idle well as a gravity-based energy storage well shall identify that well as an idle well in any plan or update to a plan required pursuant to paragraph (2) of subdivision (a) of Section 3206.
3474.8. (a) The mechanical integrity of a gravity-based energy storage well shall be assessed by the division not less than annually and shall include, at a minimum, pressure testing. The assessment shall be part of the well record. A gravity-based energy storage well that has lost mechanical integrity shall cease operation as a gravity-based energy storage well until mechanical integrity is restored. In the event of a loss of mechanical integrity or leak to the environment, the operator of a gravity-based energy storage well shall notify the division, the State Air Resources Board, the appropriate regional water quality control board, and any schools or community members living within 3,200 feet of the well of the loss of mechanical integrity or leak.(b) A well after being converted for use as a gravity-based energy storage well shall be continuously monitored for fluid leaks, including, but not limited to, methane leaks. The supervisor, in consultation with the State Air Resources Board and the State Water Resources Control Board, shall establish criteria for fluid leak monitoring and reporting.
3474.8. (a) The mechanical integrity of a gravity-based energy storage well shall be assessed by the division not less than annually and shall include, at a minimum, pressure testing. The assessment shall be part of the well record. A gravity-based energy storage well that has lost mechanical integrity shall cease operation as a gravity-based energy storage well until mechanical integrity is restored. In the event of a loss of mechanical integrity or leak to the environment, the operator of a gravity-based energy storage well shall notify the division, the State Air Resources Board, the appropriate regional water quality control board, and any schools or community members living within 3,200 feet of the well of the loss of mechanical integrity or leak.
(b) A well after being converted for use as a gravity-based energy storage well shall be continuously monitored for fluid leaks, including, but not limited to, methane leaks. The supervisor, in consultation with the State Air Resources Board and the State Water Resources Control Board, shall establish criteria for fluid leak monitoring and reporting.
3474.9. A gravity-based energy storage well that has lost its mechanical integrity shall be plugged and abandoned within one year or scheduled for plugging and abandonment in an approved idle well management plan or related plan approved by the supervisor unless the mechanical integrity of the well is restored.
3474.9. A gravity-based energy storage well that has lost its mechanical integrity shall be plugged and abandoned within one year or scheduled for plugging and abandonment in an approved idle well management plan or related plan approved by the supervisor unless the mechanical integrity of the well is restored.
3474.10. Beginning after the first month in which the gravity-based energy storage well becomes operational, the operator of a gravity-based energy storage well shall, on a monthly basis, report to the supervisor the total energy discharged by the well during the prior month.
3474.10. Beginning after the first month in which the gravity-based energy storage well becomes operational, the operator of a gravity-based energy storage well shall, on a monthly basis, report to the supervisor the total energy discharged by the well during the prior month.
3474.12. Except as otherwise provided in this article, a gravity-based energy storage well shall meet all requirements applicable to a well specified in this division.
3474.12. Except as otherwise provided in this article, a gravity-based energy storage well shall meet all requirements applicable to a well specified in this division.
3474.14. The division shall identify all wells converted to or being operated as gravity-based energy storage wells on its internet website.
3474.14. The division shall identify all wells converted to or being operated as gravity-based energy storage wells on its internet website.
3474.16. (a) On or by January 1, 2033, the Secretary for Environmental Protection, in consultation with entities operating gravity-based energy storage wells, the division, the State Water Resources Control Board and regional water quality boards, the State Air Resources Board, the State Energy Resources Conservation and Development Commission, relevant local jurisdictions, environmental and environmental justice organizations, tribes, and other stakeholders, shall evaluate the Gravity-Based Energy Storage Well Pilot Program and make recommendations to the Legislature for a framework to implement an ongoing Gravity-Based Energy Storage Well Program to provide for regulation of the operation of gravity-based energy storage wells. The recommendations shall be informed by the Gravity-Based Energy Storage Well Pilot Program and shall include, but are not limited to, all of the following:(1) Implications of conversion of a well to a gravity-based energy storage well for local land use authorization and applicability of the California Environmental Quality Act (Division 13 (commencing with Section 21000)), including designation of the appropriate lead agency.(2) Appropriate regulatory parameters, including physical design, operating conditions, mechanical integrity, and inspection protocols, for a gravity-based energy storage well to ensure safe operation and no fluid, including, but not limited to, methane, leakage to the environment, including into aquifers of beneficial use. This shall include whether the redrilling of a plugged and abandoned well may be allowed for a gravity-based energy storage well.(3) Implications of conversion of a well to a gravity-based energy storage well for existing well classifications and associated requirements.(4) Tracking and monitoring by the regulator of gravity-based energy storage wells to ensure that those wells are ultimately plugged and abandoned pursuant to Section 3208, attendant equipment and infrastructure is decommissioned, and the site remediated.(5) Fee structure for gravity-based energy storage well operations to ensure that gravity-based energy storage well operations fully compensate regulatory oversight by the state.(6) Structure and payment schedule from gravity-based energy storage well operations to fund the applicable plugging and abandonment of a gravity-based energy storage well, decommissioning of associated infrastructure, and site remediation.(7) The amount of renewable energy generated and the ease of connecting a gravity-based energy storage well to existing electrical infrastructure.(b) The recommendations pursuant to subdivision (a) shall include a review of gravity-based energy storage well operations including any leaks to the environment and loss of mechanical integrity.(c) In developing the recommendations pursuant to subdivision (a), there shall be at least one public meeting to solicit public input.(d) The recommendations shall be submitted to the Legislature in accordance with Section 9795 of the Government Code.
3474.16. (a) On or by January 1, 2033, the Secretary for Environmental Protection, in consultation with entities operating gravity-based energy storage wells, the division, the State Water Resources Control Board and regional water quality boards, the State Air Resources Board, the State Energy Resources Conservation and Development Commission, relevant local jurisdictions, environmental and environmental justice organizations, tribes, and other stakeholders, shall evaluate the Gravity-Based Energy Storage Well Pilot Program and make recommendations to the Legislature for a framework to implement an ongoing Gravity-Based Energy Storage Well Program to provide for regulation of the operation of gravity-based energy storage wells. The recommendations shall be informed by the Gravity-Based Energy Storage Well Pilot Program and shall include, but are not limited to, all of the following:
(1) Implications of conversion of a well to a gravity-based energy storage well for local land use authorization and applicability of the California Environmental Quality Act (Division 13 (commencing with Section 21000)), including designation of the appropriate lead agency.
(2) Appropriate regulatory parameters, including physical design, operating conditions, mechanical integrity, and inspection protocols, for a gravity-based energy storage well to ensure safe operation and no fluid, including, but not limited to, methane, leakage to the environment, including into aquifers of beneficial use. This shall include whether the redrilling of a plugged and abandoned well may be allowed for a gravity-based energy storage well.
(3) Implications of conversion of a well to a gravity-based energy storage well for existing well classifications and associated requirements.
(4) Tracking and monitoring by the regulator of gravity-based energy storage wells to ensure that those wells are ultimately plugged and abandoned pursuant to Section 3208, attendant equipment and infrastructure is decommissioned, and the site remediated.
(5) Fee structure for gravity-based energy storage well operations to ensure that gravity-based energy storage well operations fully compensate regulatory oversight by the state.
(6) Structure and payment schedule from gravity-based energy storage well operations to fund the applicable plugging and abandonment of a gravity-based energy storage well, decommissioning of associated infrastructure, and site remediation.
(7) The amount of renewable energy generated and the ease of connecting a gravity-based energy storage well to existing electrical infrastructure.
(b) The recommendations pursuant to subdivision (a) shall include a review of gravity-based energy storage well operations including any leaks to the environment and loss of mechanical integrity.
(c) In developing the recommendations pursuant to subdivision (a), there shall be at least one public meeting to solicit public input.
(d) The recommendations shall be submitted to the Legislature in accordance with Section 9795 of the Government Code.
3474.18. (a) Except as provided in subdivision (c), this article shall remain in effect only until January 1, 2035, and as of that date is repealed.(b) The authorization issued pursuant to Section 3474.2 shall terminate upon the repeal of this article.(c) Notwithstanding subdivision (a), in the absence of another program authorizing the use of gravity-based energy storage wells, idle wells that are authorized to be used as gravity-based energy storage wells under this article shall be reclassified as idle wells subject to Section 3206 and other applicable law.
3474.18. (a) Except as provided in subdivision (c), this article shall remain in effect only until January 1, 2035, and as of that date is repealed.
(b) The authorization issued pursuant to Section 3474.2 shall terminate upon the repeal of this article.
(c) Notwithstanding subdivision (a), in the absence of another program authorizing the use of gravity-based energy storage wells, idle wells that are authorized to be used as gravity-based energy storage wells under this article shall be reclassified as idle wells subject to Section 3206 and other applicable law.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
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