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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-03-23</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Ellis</ns0:AuthorText>
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<ns0:Legislator>
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<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Ellis</ns0:Name>
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<ns0:Title> An act to add Article 3.7 (commencing with Section 3191) to Chapter 1 of Division 3 of the Public Resources Code, relating to oil and gas. </ns0:Title>
<ns0:RelatingClause>oil and gas</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Oil and gas: subsurface energy transition research and demonstration projects: California State University, Bakersfield.</ns0:Subject>
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<html:p>Existing law establishes the Geologic Energy Management Division in the Department of Conservation under the direction of the State Oil and Gas Supervisor, who is required to supervise the drilling, operation, maintenance, and abandonment of oil and gas wells in the state and the operation, maintenance, and removal or abandonment of tanks and facilities related to oil and gas production within an oil and gas field so as to prevent damage to life, health, property, and natural resources. </html:p>
<html:p>Existing law establishes the California State University under the administration of the Trustees of the California State University as one of the segments of public
postsecondary education in the state.</html:p>
<html:p>This bill would require the department, consistent with its statutory authority and in coordination with other state or federal regulatory agencies, to prioritize granting approvals for specified types of low-carbon or carbon-reducing technologies and applications. The bill would authorize the department to establish the Subsurface Low-Carbon Demonstration Project Program to facilitate partnerships among the state, the California State University system, private industry, and public entities to study and demonstrate innovative subsurface technologies using existing and idle wells.</html:p>
<html:p>The bill would authorize the department to establish various programs in partnership with the California State University and California State University, Bakersfield, including (1) the Regional
Subsurface Energy Transition and Applied Research Program and (2) a subsurface energy research field station for applied research, field testing, monitoring, and demonstration of subsurface technologies. The bill would also authorize the department to (3) collaborate with the California Energy Research Center at California State University, Bakersfield, and recognize the center as a state-affiliated applied research, technical assistance, and policy support partner, as provided, and (4) designate and support the California Core Repository at California State University, Bakersfield, as an official state-affiliated repository, as provided. </html:p>
<html:p>This bill would authorize the department to establish and administer an official department office at California State University, Bakersfield, and would authorize the California State University to support and collaborate on activities across the full scope of the department’s statutory responsibilities, as provided.</html:p>
<html:p>This bill would explicitly authorize university-based researchers associated with any of the above-described programs to serve on advisory panels, technical working groups, and research committees in an advisory capacity, and provide scientific expertise to inform regulatory development, interagency coordination, and public communication.</html:p>
<html:p>This bill would make legislative findings and declarations as to the necessity of a special statute for California State University, Bakersfield.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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<html:p>The Legislature finds and declares all of the following:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
California’s oil and gas sector includes marginal and low-producing wells facing financial and regulatory challenges, including inadequate bonding requirements.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Existing bonding levels often fail to cover full plugging and restoration costs, increasing the risk of orphaned wells.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Orphan wells create long-term environmental and fiscal liabilities.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The Legislature intends to prevent orphaning of viable wells by authorizing alternative productive uses consistent with environmental protection and public health.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Facilitating alternative technologies through demonstration projects, partnerships with the California State University system, collaboration with private industry, and interdisciplinary research related to public health, biological sciences, environmental sciences, geological sciences, and engineering will promote environmental stewardship, support workforce transition in oil-dependent regions, and reduce future orphan well liabilities. Research conducted in partnership with public universities plays a critical role in informing evidence-based regulatory policy, improving environmental protection standards, advancing public health outcomes, and strengthening the scientific foundation of state decisionmaking.
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<html:p>
(f)
<html:span class="EnSpace"/>
The State of California has previously invested significant capital resources in California State University, Bakersfield, including funding for the Energy Innovation Building, to support applied energy research, workforce development, and innovation. Leveraging this existing state-funded infrastructure to advance interdisciplinary research and demonstration projects is consistent with sound fiscal stewardship and the efficient use of public resources.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
California State University, Bakersfield possesses faculty expertise, laboratory capacity, and applied research infrastructure capable of supporting leading-edge research in subsurface science, engineering, environmental protection, public health, biological sciences, data analytics, and regulatory science. Collaboration between university researchers and state regulators can improve monitoring methodologies, risk assessment
tools, remediation technologies, and long-term liability management.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
California currently has limited state-level regulatory authority over certain subsurface technologies and emerging energy applications, including some forms of carbon storage and hydrogen-related activities that may be subject to federal jurisdiction. Strengthening in-state research capacity and technical expertise will enhance the state’s ability to evaluate, advise on, and coordinate with federal agencies regarding these activities.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Public education, workforce development, and community engagement related to subsurface energy, environmental protection, reclamation, and emerging resource technologies are essential components of a responsible transition strategy, and collaboration with the California State University can support transparent public dissemination of research findings and technical
information.
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<ns0:Num>SEC. 2.</ns0:Num>
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Article 3.7 (commencing with Section 3191) is added to Chapter 1 of Division 3 of the
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, to read:
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<ns0:Num>3.7.</ns0:Num>
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<ns0:LawHeadingText>Subsurface Energy Transition Research and Demonstration Projects</ns0:LawHeadingText>
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<ns0:Num>3191.</ns0:Num>
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<html:p>The department shall, consistent with the department’s statutory authority and in coordination with other state or federal regulatory agencies, prioritize granting approvals for the following types of low-carbon or carbon-reducing technologies and applications: </html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
Carbon dioxide capture, utilization, and storage.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Enhanced oil recovery using captured carbon dioxide.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Extraction of critical minerals from produced water or oilfield brines.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
Hybrid geothermal operations.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
Hydrogen-related
subsurface activities.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
Other emissions-mitigating or resource recovery projects consistent with state climate and environmental goals.
</html:p>
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<ns0:LawSection id="id_5D04E8A2-B1C5-4008-A95D-E2EFAC86487A">
<ns0:Num>3191.1.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The department, acting through the division, may establish the Subsurface Low-Carbon Demonstration Project Program to facilitate partnerships among the state, the California State University system, private industry, and public entities to study and demonstrate innovative subsurface technologies using existing and idle wells.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Projects associated with the program established pursuant to subdivision (a) shall comply with all applicable environmental and public health protections and requirements related to financial assurances.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
This section does not diminish existing regulatory authority or environmental review
requirements.
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<ns0:LawSection id="id_DC04F0CA-C18D-4DAB-8FC5-927CB5E93A86">
<ns0:Num>3191.2.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
The department may establish the Regional Subsurface Energy Transition and Applied Research Program within the California State University system for the purpose of expanding interdisciplinary academic research capacity in coordination with state conservation programs in regions experiencing workforce transition from oil and gas production. The program may support research and applied initiatives related to low-carbon energy, carbon management, emissions-reducing technologies, and related subsurface resource applications.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
For purposes of implementing the program, the department may collaborate with the California Energy Research Center at California State University, Bakersfield, as a pilot partner within the California State
University system. The pilot program may serve as a model for implementation at other campuses within the California State University system that demonstrate relevant expertise and institutional capacity in disciplines aligned with the department’s statutory mission.
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<ns0:LawSection id="id_8CD8F3F2-B0BC-4376-B9BE-164E004B43AF">
<ns0:Num>3191.3.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
The department may establish and administer an official department office at California State University, Bakersfield.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
California State University may support and collaborate on activities across the full scope of the department’s statutory responsibilities, including, but not limited to, all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Subsurface energy systems, carbon management, critical mineral extraction, geothermal resources, mining, land resource management, reclamation, and geologic hazard assessment.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Public health, biological, ecological, and environmental science studies related to resource development and
environmental protection.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Engineering and related technical disciplines supporting safe and environmentally responsible operations and remediation.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Policy research, economic analysis, data management, modeling, and regulatory support.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Workforce development initiatives and grant administration.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The department office established pursuant to subdivision (a) may receive and administer state, federal, and private funds consistent with state law.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
This section does not delegate regulatory authority from the department to the California State University.
</html:p>
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<ns0:LawSection id="id_9C444AA1-F195-47A6-A7B6-81C1AC30E9BE">
<ns0:Num>3191.4.</ns0:Num>
<ns0:LawSectionVersion id="id_65FCAECB-1F10-4A0C-87B6-E32DE4B5B06E">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The department, in partnership with the California State University, may establish a subsurface energy research field station for applied research, field testing, monitoring, and demonstration of subsurface technologies.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The field station established pursuant to subdivision (a) may conduct carbon dioxide injection research, monitoring, and verification testing, critical mineral extraction research, hybrid geothermal evaluation, testing applicable to idle or orphan wells, and workforce training.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The activities of the field station established pursuant to subdivision (a) shall be subject to all applicable requirements related to environmental review, permitting, and
financial assurances.
</html:p>
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<ns0:LawSection id="id_952FA2BE-C335-4C8C-9393-5603B40F7FD1">
<ns0:Num>3191.5.</ns0:Num>
<ns0:LawSectionVersion id="id_0E0D8F5E-DA6A-4F59-AD18-2876F0321C8E">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The department may collaborate with the California Energy Research Center at California State University, Bakersfield, and recognize the center as a state-affiliated applied research, technical assistance, and policy support partner.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The California Energy Research Center shall provide interdisciplinary research, analytical capacity, and technical expertise consistent with the department’s mission, including, but not limited to, all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Operation and coordination of research laboratories and field research facilities supporting subsurface science, engineering, environmental testing, materials analysis, water quality assessment, emissions monitoring,
and related technical disciplines.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Public health research, including exposure assessment, air and water quality impacts, community health analysis, and risk assessment associated with resource development, well remediation, and reclamation activities.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Environmental science and biological research related to ecosystem protection, land stewardship, habitat restoration, groundwater protection, and reclamation effectiveness.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Engineering research and technical evaluation, including petroleum engineering, environmental engineering, civil engineering, infrastructure integrity assessment, wellbore analysis, monitoring systems development, and site remediation technologies.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Economic, fiscal, and workforce analysis related to resource development,
regional economic transition, long-term liability reduction, cost-benefit evaluation, and regulatory impact assessment.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Data science, reservoir modeling, geographic information systems, laboratory analysis, monitoring technology development, and quantitative risk modeling to inform evidence-based regulatory decisionmaking.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Participation in advisory panels, research committees, and technical working groups in an advisory capacity to provide scientific expertise supporting interagency coordination and regulatory development.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
Federal grant development, administration, and collaboration with the United States Department of Energy, national laboratories, and other federal or state agencies.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
Public education, stakeholder engagement, workforce
training, and dissemination of research findings to promote transparency and informed public participation.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The California Energy Research Center may leverage existing university infrastructure, including laboratory space, research equipment, field research assets, and facilities associated with the center and related academic programs.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
This section does not delegate regulatory authority, permitting authority, enforcement authority, or statutory decisionmaking responsibilities to the California Energy Research Center or to the California State University.
</html:p>
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<ns0:LawSection id="id_545E1C75-636D-4437-9F48-EFED5F6DE6B2">
<ns0:Num>3191.6.</ns0:Num>
<ns0:LawSectionVersion id="id_99EDC7C0-DD00-40B7-B087-4810F9A1A87E">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The department may designate and support the California Core Repository at California State University, Bakersfield, as an official state-affiliated repository.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The California Core Repository shall preserve geological samples and subsurface data, provide access for research and to the public, and support activities conducted pursuant to this article.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The department may enter into agreements related to the operation and modernization of the California Core Repository, and the repository may receive state, federal, and private funds consistent with state law.
</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_6439C346-B57B-41B8-B587-C66631346C68">
<ns0:Num>3191.7.</ns0:Num>
<ns0:LawSectionVersion id="id_38C83866-884A-4656-B566-A13CB6270ED4">
<ns0:Content>
<html:p>University-based researchers associated with any of the programs established pursuant to this article may serve on advisory panels, technical working groups, and research committees in an advisory capacity, and provide scientific expertise to inform regulatory development, interagency coordination, and public communication. These university-based researchers shall not exercise regulatory authority.</html:p>
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<ns0:BillSection id="id_79244F49-D9D1-4996-8D00-1EE7B5D74A5B">
<ns0:Num>SEC. 3.</ns0:Num>
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<html:p>The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of California State University, Bakersfield’s unique location near areas of state with the highest levels of oil and gas production.</html:p>
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