Coastal resources: California Coastal Sanctuary: tidelands and submerged lands: oil and gas development

The law blocks certain oil and gas leasing in protected marine areas and restricts state-water infrastructure support for newer federal offshore leases. It also adds public review, environmental, financial, and operator-accountability requirements.

What the law does ​

• Bars State Lands Commission oil and gas leases in California marine protected areas and national marine sanctuaries designated on or after January 1, 2026.
• Prohibits new state-water leases, infrastructure construction, and use of existing state-water oil and gas infrastructure to support Pacific Outer Continental Shelf leases issued after January 1, 2026, subject to specified exceptions.
• Requires public notice and a 180-day waiting period before action on covered infrastructure lease renewals, extensions, amendments, or modifications.
• Requires the State Lands Commission and local trustees to assess environmental, safety, spill-history, financial-assurance, public-trust, and production-volume factors before approving covered changes.
• Requires public comment and governing-board approval for covered changes that would increase oil or gas volumes transported across state waters.
• Requires the State Lands Commission to scrutinize proposed oil, gas, and mineral lease transferees’ experience, finances, compliance record, accident history, and decommissioning bond.
• Keeps prior leaseholders liable for cleanup, plugging wells, decommissioning, restoration, and contamination unless the commission finds obligations complete or approves a secured waiver.

Who it affects ​

• Offshore oil and gas operators and companies seeking to renew, modify, transfer, or use leases and infrastructure in state waters.
• The State Lands Commission and local trustees of granted public trust lands.
• Communities and members of the public participating in meetings on covered offshore-infrastructure approvals.

Context ​

The law preserves allowances for infrastructure repair, maintenance, safe operation, and transport of oil or gas produced from state waters.

Breakdown ​

Oil and Gas Leasing Protections ​

AB 1448 bars the State Lands Commission from leasing state tidelands and submerged lands for oil or gas extraction within California marine protected areas and national marine sanctuaries. The restriction applies even where existing law could otherwise allow a lease to address oil or gas being drained by wells on adjacent federal land.

Key takeaways

• The bill prohibits new State Lands Commission oil and gas extraction leases in designated California marine protected areas.
• The bill also prohibits those leases in national marine sanctuaries.
• The prohibition limits an existing lease authority for coastal sanctuary lands when adjacent federal wells may be draining oil or gas deposits.

Offshore Oil and Gas Support ​

The bill expands restrictions on using state tidelands and submerged lands to support federal offshore oil and gas leases. It bars existing leases and oil- and gas-related infrastructure in state waters from supporting Pacific Outer Continental Shelf leases issued after January 1, 2026, unless an exception applies. It also requires the State Lands Commission and local trustees to consider additional specified factors when deciding whether to approve certain changes to leases or infrastructure agreements.

Key takeaways

• Leases and oil- and gas-related infrastructure on state tidelands and submerged lands generally may not be used to support federal Pacific Outer Continental Shelf leases issued after January 1, 2026, except where the bill provides otherwise.
• The bill adds factors that the State Lands Commission and local trustees must consider when reviewing certain lease renewals, extensions, amendments, or modifications involving new oil- and gas-related infrastructure.
• The new review duties apply to decisions involving infrastructure connected to Pacific Outer Continental Shelf leases issued after January 1, 2018.
• Because the bill creates additional duties for local trustees, it may create state-mandated local costs.
• If the Commission on State Mandates finds that the bill imposes reimbursable mandated costs, the state must reimburse them under existing reimbursement procedures.