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State Lands Commission seeks maintenance funds for Bolsa Chica and $12.5 million for Rincon Island cleanup
Summary
The State Lands Commission requested about $4 million over three years for maintenance and a sea‑level‑rise feasibility study at Bolsa Chica and $12.5 million to bridge a funding gap for decommissioning Rincon Island and associated onshore facilities; the commission noted prior operator bankruptcy left the state responsible for remediation.
The State Lands Commission told Assembly Budget Subcommittee No. 4 it needs additional funding to maintain Bolsa Chica Coastal Wetlands and to complete decommissioning and remediation work at the former Rincon Island oil facility.
Sherry Pemberton, chief of external affairs for the State Lands Commission, described Bolsa Chica as "the largest wetlands restoration in Southern California history," and said roughly $165,000,000 has been invested in the wetlands to date, including mitigation funding from ports. The commission requested about $4,000,000 over the next three fiscal years for operations and maintenance, including annual dredging to keep the inlet open, and $330,000 for a sea‑level‑rise adaptation feasibility study. Pemberton told the committee that without maintenance funding the inlet could close, threatening habitat and increasing liability.
Rincon Island decommissioning
The commission also requested $12,500,000 to bridge an estimated funding gap for decommissioning Rincon Island and associated onshore facilities. Pemberton said the commission became responsible for the site after a prior operator declared bankruptcy and left leases deserted; the commission has plugged and abandoned 77 wells and prepared an environmental impact report for decommissioning. The commission estimated total decommissioning costs at about $22,500,000 and said existing settlement and bond proceeds were insufficient to complete the work.
Oversight and questions
LAO and Department of Finance staff said they had no concerns with the Bolsa Chica request. Committee members asked the commission to provide legal analysis on whether prior operators retained liability or whether the state bears ongoing obligation as landowner. The commission agreed to follow up with details on potential liabilities and long‑term stewardship costs.
Next steps
The commission said it will provide the requested legal and liability information and continue to work with the Legislature on funding for critical operations and remediation work; the committee asked staff for those analyses before final budget decisions.
