Attached is the final version of AB 1448, which is among the stack of bills awaiting Gov. Newsome’s signature. John Smith has highlighted provisions of concern.
If enacted and upheld in the courts, the bill would serve as a blockade on new Outer Continental Shelf (OCS) production. The bill would:
- prohibit pipelines and other infrastructure located within state waters from being used to support Pacific Outer Continental Shelf (OCS) leases issued after January 1, 2026.
- prohibit the State Lands Commission from entering into any lease authorizing new construction of oil- and gas-related infrastructure within state waters for the purpose of supporting Pacific OCS leases issued after January 1, 2026.
- prohibit any existing leases and oil- and gas-related infrastructure located within state waters from being used to support Pacific OCS leases issued after January 1, 2026.
- require a separate process for the approval of any lease extension that would increase the volume of oil and gas transported across state waters “including by commencing, increasing, intensifying, or restarting production” from the OCS. This would presumably include pipelines transporting Santa Ynez Unit production and production increases at other OCS facilities.
It’s hard to believe these provisions would survive legal challenges given their constraint on interstate commerce and Federal OCS activities.
On a related note, California royalty owners are actively challenging Santa Barbara County and Los Angeles proposals that would prohibit new oil and gas wells and ultimately phase out all existing production. AB 1448 would have a similar effect on OCS royalty owners – namely the citizens of the United States.
Bud's Offshore Energy (BOE) 