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AB 807

Conservation and mitigation bank: marine artificial reefs.

2025-2026 Regular Session Introduced by Diane Dixon

authorizes marine artificial reefs to be used for conservation and mitigation banks, with a 1% revenue trust fund for perpetual reef management.

In committee: Set, first hearing. Hearing canceled at the request of author.
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Bill Summary · AB 807

AB 807 – Conservation and mitigation bank: marine artificial reefs

A concise, reader-friendly overview of AB 807, including its purpose, key provisions, affected parties, and status.

Overview and Purpose

AB 807 expands California’s conservation and mitigation bank framework to explicitly include marine artificial reefs. The bill would allow the creation of a marine artificial reef as part of establishing a mitigation bank, conservation bank, or a combined conservation and mitigation bank after completion of a full environmental review. It envisions both nonprofit and for-profit organizations being eligible to establish and operate these banks, and it sets out specific lease and governance mechanisms when a reef sits on state sovereign land.

What the bill would do

  • Explicitly include marine artificial reefs within the definitions of “conservation bank” and “mitigation bank.”
  • Allow creation of a marine artificial reef for the purpose of establishing a bank after a full environmental review under applicable state and federal laws.
  • Require maintenance and monitoring of the reef to meet performance standards designated by permitting authorities and credit purchasers.
  • When a marine artificial reef is located on state sovereign land, require a lease from the State Lands Commission, with lease provisions that:
    • Create a trust fund in which 1% of all bank credit sale revenue is deposited after each sale.
    • Provide that the trust fund is used to manage the reef in perpetuity by the State Lands Commission, with the reef protected in perpetuity if the lease term ends and no renewal is granted.
    • Satisfy both bank enabling instrument requirements and the issuance of a conservation easement.

Key provisions and definitions (highlights)

  • Definitions expanded in the Fish and Game Code to include “marine artificial reef” within the terms “conservation bank” and “mitigation bank.”
  • A bank sponsor (the entity responsible for establishing and operating the bank) can be nonprofit or for-profit.
  • A bank enabling instrument remains the written agreement with the department governing establishment, use, operation, and maintenance of the bank.
  • A “conservation easement” continues to function as a perpetual easement covering the bank site.

Process, oversight, and timeline

  • Full environmental review must be completed in compliance with applicable laws before establishing a marine artificial reef-based bank.
  • The bill would operate under existing framework where the Department of Fish and Wildlife approves in writing and a conservation easement is recorded before a bank becomes operative and credits can be issued.
  • Legislative path: Introduced February 18, 2025; referred to committees; “In committee: Set, first hearing;” hearing canceled at the author’s request, leaving the bill pending.

Who is affected

  • Bank sponsors (both nonprofit and for-profit entities) seeking to establish and operate conservation banks, mitigation banks, or combined banks using marine artificial reefs.
  • The Department of Fish and Wildlife (DFW) and the State Lands Commission (SLC) for approvals, leases, and ongoing oversight.
  • Credit purchasers (public and private entities) who rely on bank credits to offset environmental impacts.
  • State lands users and coastal stakeholders, given the lease and perpetual protection provisions for reefs on sovereign land.

Fiscal and procedural notes

  • Fiscal Committee: Yes (indicating potential fiscal impact considerations).
  • Appropriation: No.
  • Local program: No.
  • Likely ongoing economic activity from credit sales, with 1% of revenue directed to a state-managed trust fund for reef maintenance.

Summary

AB 807 would formally recognize marine artificial reefs as eligible sites for conservation and mitigation banking, authorize their creation after environmental review, permit nonprofit and for-profit operators, and establish a lease-and-easement framework when reefs reside on state lands. It adds a dedicated funding mechanism via a 1% revenue trust fund to support perpetual reef management, linking leasing terms to bank enabling instruments and conservation easements. The bill is currently in committee with a first hearing having been set and then canceled at the author’s request.

Compiled from official sources — confirm details with the bill’s official record.

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