BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2509
                                                                  Page 1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2509 (Nielsen)
          As Amended  June 28, 2012
          Majority vote
           
           
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          |ASSEMBLY:  |75-0 |(May 17, 2012)  |SENATE: |36-0 |(July 5, 2012) |
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           Original Committee Reference:   NAT. RES.  

           SUMMARY  :  Exempts activities related to the immediate 
          restoration of lands affected by a natural disaster or flood 
          from the Surface Mining and Reclamation Act (SMARA) without 
          being subject to existing regulatory restrictions on the amount 
          of mineral materials that can be exported for commercial 
          purposes.

           The Senate amendments  : 

          1)Delete the Assembly amendments.

          2)Exempt the following activities from SMARA without being 
            subject to existing regulatory restrictions on the amount of 
            mineral materials that can be exported for commercial 
            purposes:

             a)   The immediate excavation or grading of lands affected by 
               a natural disaster for the purpose of restoring those lands 
               to their prior condition; and, 

             b)   The immediate removal of material deposited by a flood 
               onto lands being farmed for the purpose of restoring those 
               lands to their prior condition.

           EXISTING LAW  :

          1)Creates SMARA, which prohibits a person from conducting 
            surface mining operations unless the lead agency for the 
            operation issues a surface mining permit and approves a 
            reclamation plan and financial assurances for reclamation.  
            Depending on the circumstances, a lead agency can be a city, 
            county, the San Francisco Bay Conservation and Development 
            Commission, or the State Mining and Geology Board (Board) 








                                                                  AB 2509
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            within the Department of Conservation (Department).

          2)Exempts, pursuant to Public Resources Code (PRC) Section 2714, 
            several surface mining activities from the requirements of 
            SMARA, including:

             a)   Excavations or grading conducted for farming or the 
               immediate excavation or grading of lands affected by a 
               flood or natural disaster for the purpose of restoring 
               those lands to their prior condition (Farming and Flood 
               Exemption); and, 

             b)   Prospecting for, or the extraction of, minerals for 
               commercial purposes where the removal of overburden or 
               mineral product totals less than 1,000 cubic yards in any 
               one location, and the total surface area disturbed is less 
               than one acre (1,000 Cubic Yards Exemption).

          3)Prohibits, pursuant to California Code of Regulations (CCR) 
            Section 3505 of Title 14, the Farming and Flood Exemption from 
            applying to the excavation, grading, or transportation of 
            mineral materials, including overburden that is wholly 
            integral and necessary to the conduct of agricultural 
            activities if the exportation of mineral materials, including 
            overburden, from the property is in excess of 1,000 cubic 
            yards for commercial purposes. 

           AS PASSED BY THE ASSEMBLY  , this bill:  

          1)Allowed a person to utilize the Farming and Flood Exemption 
            regardless of the amount of mineral materials exported for 
            commercial purposes.  

          2)Allowed a person utilizing the Farming and Flood Exemption to 
            sell the mineral materials to the extent that the proceeds 
            offset the costs of excavating, grading, and exporting.

          3)Required a person utilizing the Farming and Flood Exemption to 
            maintain all records regarding the sale of overburden or 
            mineral product for at least five years and make the records 
            available to any public agency upon request.

          4)Required a person utilizing the Farming and Flood Exemption to 
            perform restoration activities within a reasonable time, 
            considering the circumstances, after the flood or natural 








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            disaster has occurred. 

           FISCAL EFFECT  :  According to the Senate Appropriations 
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :  According to the author's office, this bill will 
          "correct a regulation that is stopping farmers and ranchers from 
          removing and selling soil from their fields that have been 
          deposited by floods."

          The Legislature in adopting SMARA intended to create and 
          maintain an effective surface mining and reclamation policy to 
          prevent or minimize adverse environmental effects, reclaim mined 
          lands to a usable condition that is adaptable to alternative 
          uses, and encourage the production and conservation of minerals 
          while giving consideration to values relating to recreation, 
          watershed, wildlife, range and forage, and aesthetic enjoyment.  


          PRC Section 2714 lists several exemptions to SMARA, most of 
          which involve infrequent, minor, or incidental surface 
          disturbances.  Two of these exemptions are the Farming and Flood 
          Exemption and the 1,000 Cubic Yards Exemption, which PRC Section 
          2714 appears to treat as separate and distinct from each other.  
          The Board's regulations (through CCR Section 3505), however, 
          essentially restricts parts of the Farming and Flood Exemption 
          by the 1,000 Cubic Yards Exemption.  This regulation does not 
          seem to be consistent with California rulemaking law, which 
          requires regulations to be in harmony with, and not in conflict 
          or contradictory to, existing law.

          The author cites a recent case, the Goose Farm North Project, in 
          which a property owner applied for a one-time SMARA exemption 
          from the Board to remove silt, sand, and debris derived from 
          over flow and flooding from a nearby river.  The property owner 
          proposed to grade the land so it would be level and suitable for 
          agricultural purposes.  The project was anticipated to exceed 
          the extraction of 1,000 cubic yards of material for commercial 
          purposes.  According to the sponsor, without an exemption, it 
          would have been too costly for the property owner to comply with 
          SMARA, which requires a reclamation plan and financial 
          assurances.  

          The Goose Farm North Project case seemed to fit perfectly within 
          the Farming and Flood Exemption-the grading would be conducted 








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          for farming as well as to restore lands that had been flooded.  
          The Board's Executive Officer's Report for this case, however, 
          made no reference to the Farming and Flood Exemption (presumably 
          because of CCR Section 3505).  Instead, the Board analyzed the 
          case under a more complicated exemption. 

          The Senate amendments create a new subdivision in PRC Section 
          2714 for activities related to the immediate restoration of 
          lands affected by a natural disaster or flood.  The new 
          subdivision places these activities out of the reach of CCR 
          Section 3505's restrictions.  As such, these amendments should 
          make it less difficult for a restoration project, such as the 
          Goose Farm North Project, to receive a SMARA exemption.

           
          Analysis Prepared by  :    Mario DeBernardo / NAT. RES. / (916) 
          319-2092 


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