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