AB 1661: Oil and gas: low-production wells: Baldwin Hills Conservancy: Equitable Community Repair and Reinvestment Account: health impacts.

Existing law requires the Geologic Energy Management Division in the Department of Conservation, on or before March 1, 2025, to identify all low-production wells, as defined, that are located in the County of Los Angeles in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy, as provided. Existing law prohibits, commencing March 1, 2026, the owners of those wells from allowing those wells to be low-production wells for more than 12 months. Upon a violation of that prohibition, existing law requires the State Oil and Gas Supervisor to charge an administrative penalty of $10,000 per month to the low-production well owner, until the low-production well is plugged and abandoned, as provided.

Existing law requires the plugging and abandoning of all wells located in the County of Los Angeles in an oil field that is adjacent to a state recreation area or state park and is located, in whole or in part, within the boundary of the Baldwin Hills Conservancy by December 31, 2030. Existing law requires the supervisor, on and after January 1, 2031, to charge the owner of a well an administrative penalty of $10,000 per month for a violation of that requirement, until the well is plugged and abandoned.

Existing law establishes the Equitable Community Repair and Reinvestment Account, requires the above-described administrative penalties to be deposited into the account, and makes the funds from the account available, upon appropriation by the Legislature, to the Department of Conservation for allocation to the County of Los Angeles for projects that benefit communities living within 2¹/₂ miles of the identified low-production wells, as provided.

This bill would require the Department of Conservation, upon appropriation by the Legislature and subject to the terms of the appropriation, to distribute the first $5,000,000 deposited into the Equitable Community Repair and Reinvestment Account, after accounting for appropriations made for administrative purposes, to the County of Los Angeles to establish a program to disburse in direct cash assistance in equal amounts to households located within 2¹/₂ miles of the identified low production wells who have at least one member with respiratory or reproductive health impacts. The bill would, among other things, require the county to establish processes for households to verify that they meet the residency and health-impact requirements, as provided. The bill would require the application process for direct cash assistance to be noninvasive, simple, and standardized. The bill would limit the disbursement of direct cash assistance to 1,000 households and would require the county to select recipient households by randomized lottery if the number of applications from verified eligible households exceeds 1,000. The bill would exclude this direct cash assistance from income or resource considerations for purposes of determining any member of the household’s eligibility for benefits or assistance, or the amount or extent of benefits or assistance, under any state or local benefit or assistance program, as provided. The bill would require the department, subject to an appropriation by the Legislature, to distribute to the county for administrative purposes an amount that does not exceed 10% of the programmatic appropriation. By imposing new duties on the County of Los Angeles, the bill would impose a state-mandated local program.

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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.