(a)Contingent upon an appropriation of funds by the Legislature for this purpose, the commission shall develop, on or before December 31, 2024, a cost study that evaluates the fiscal impact of a voluntary relinquishment of any lease interests in actively producing state offshore oil and gas leases in state waters.
(b)The cost study shall consider at least all of the following factors:
(1)Expected duration of oil production at the time of leasing.
(2)State revenues received to date.
(3)Expected remaining life of the reservoir based on proven
reserves.
(4)Reasonably anticipated unrealized lessee revenues and profits.
(5)Reasonably anticipated unrealized state revenues.
(6)Lessees’ decommissioning and restoration costs.
(c)
(1)On or before December 31, 2023, the commission shal
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(a)
Contingent upon an appropriation of funds by the Legislature for this purpose, the commission shall develop, on or before December 31, 2024, a cost study that evaluates the fiscal impact of a voluntary relinquishment of any lease interests in actively producing state offshore oil and gas leases in state waters.
(b)
The cost study shall consider at least all of the following factors:
(1)
Expected duration of oil production at the time of leasing.
(2)
State revenues received to date.
(3)
Expected remaining life of the reservoir based on proven
reserves.
(4)
Reasonably anticipated unrealized lessee revenues and profits.
(5)
Reasonably anticipated unrealized state revenues.
(6)
Lessees’ decommissioning and restoration costs.
(c)
(1)
On or before December 31, 2023, the commission shall hold at least one public hearing at a properly noticed public commission meeting to discuss the cost study described in this section.
(2)
After the hearing described in paragraph (1), on or before December 31, 2023, the commission shall provide a status update on the cost study to the Governor and the Legislature. The status update shall include, but not be limited to, all of the following:
(A)
A proposed outline of the cost study elements.
(B)
Identified data gaps.
(C)
Preliminary analysis, conclusions, and recommendations.
(D)
Any public comments received by the commission.
(d)
(1)
On or before December 31, 2024, the commission shall submit the cost study prepared pursuant to this section, including recommendations to advance the end of offshore oil and gas development consistent with the legislative findings and declarations of Section 1 of Assembly Bill 2257 of the 2021–22 Regular Session, to the Governor and the Legislature.
(2)
The commission shall make the cost study available on its
internet website.
(e)
(1)
The cost study submitted to the Legislature pursuant to paragraph (1) of subdivision (d) and the status update submitted to the Legislature pursuant to paragraph (2) of subdivision (c) shall be submitted in compliance with Section 9795 of the Government Code.
(2)
(A)
Pursuant to Section 10231.5 of the Government Code, the requirement to submit a report imposed pursuant to paragraph (1) of subdivision (d) shall become inoperative on December 31, 2028.
(B)
Pursuant to Section 10231.5 of the Government Code, the requirement to submit a report imposed pursuant to paragraph (2) of subdivision (c) shall become inoperative on December 31, 2027.