BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 447
                                                                  Page  1

          Date of Hearing:   August 30, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    SB 447 (Lara) - As Amended:   August 26, 2013

          Policy Committee:                             Natural  
          ResourcesVote:9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill allows, until January 1, 2019, a surface mining  
          operator, whose operations are not in compliance with its  
          approved reclamation plan, to continue to sell mining products  
          to a state or local agency if the operator stipulates to an  
          order to comply with the lead agency and/or the Department of  
          Conservation (DOC).   This bill also requires the DOC to submit  
          a report to the Legislature on July 1, 2017 and July 1, 2018.

          Specifically, this bill allows a surface mining operation to  
          continue to sell mining products, as specifie and remain on the  
          DOC approved list if it meets all of the following conditions:

          1)The reclamation plan has been approved and is in compliance  
            with the Surface Mining and Reclamation Act (SMARA).

          2)The surface mining operation is in compliance with either of  
            the following:

             a)   The approved reclamation plan.

             b)   An order to comply, which may be stipulated to by the  
               Department, lead agency, and the operator, for enforcement  
               actions initiated by the director of the Department.

             c)   An order to comply, which may be stipulated to by the  
               lead agency and the operator, with the notice of the  
               stipulation provided to the director of the Department, for  
               enforcement actions initiated by the lead agency.

          3)The surface mining operation has approved financial assurance  








                                                                  SB 447
                                                                  Page  2

            in place that is adequate for reclamation pursuant to the  
            approved reclamation plan.  

           FISCAL EFFECT  

          Minor and absorbable costs for DOC to determine compliance and  
          report to the Legislature. 

           COMMENTS  

           1)Purpose.   According to the author and the surface mining  
            industry, a mining operator may be taken off of the DOC  
            approved list for a SMARA violation even if it has entered  
            into an agreement to correct the violation and is complying  
            with the agreement.   
          2)Background.   SMARA requires each mining operation to have a  
            mining permit or vested right to mine; a reclamation plan that  
            describes how the mine land will be reclaimed once mining  
            operations cease; and adequate financial assurances to  
            accomplish reclamation.

            Lead agencies (mostly cities and counties) have primary  
            responsibility for administering SMARA.  The Office of Mine  
            Reclamation, which is within the DOC, ensures that lead  
            agencies fulfill their SMARA responsibilities, often taking  
            its own enforcement actions.  In addition, the State Mining  
            and Geology Board promulgates SMARA regulations and serves as  
            an appeals body.

           3)AB 3098 List.   AB 3098 (1992, Sher) established the AB 3098  
            List (approved list) which identifies each surface mining  
            operation regulated under SMARA that meets all of the required  
            conditions.  A surface mining operation may remain on the AB  
            3098 List if it has a pending appeal with the Board regarding  
            the approval of the reclamation plan or financial assurances,  
            provided that the appeal has not been pending for more than  
            180 days.  

           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081