BILL ANALYSIS Ó AB 1034 Page 1 Date of Hearing: May 20, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 1034 (Obernolte) - As Amended May 5, 2015 ----------------------------------------------------------------- |Policy |Natural Resources |Vote:|9 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: YesReimbursable: No SUMMARY: This bill establishes an alternative procedure for an amendment to an approved reclamation plan that proposes to use a designated portion of the mined lands for the construction and AB 1034 Page 2 operation of a renewable energy generation facility. Specifically, this bill provides that such an amendment shall not be deemed a substantial deviation from the approved plan if the mining operator complies with the following: 1)The lead agency approves the amendment as specified prior to the commencement of land improvements. 2)The amended reclamation plan complies with existing reclamation statutes and regulations. 3)All required permits are approved by a public agency. 4)The operating permit for a surface mining operation has an approved closure plan and financial assurances. Prohibits a calculated surplus or salvage value from being used to offset the costs of reclaiming the mined lands. Additionally, this bill specifies that such an amendment shall not be adverse to a surface mining operator's vested rights or incompatible with future mineral extraction as specified. FISCAL EFFECT: Minor and absorbable costs for the Department of Conservation (DOC) to review reclamation plan amendments and financial assurances. AB 1034 Page 3 COMMENTS: 1)Purpose. According to the author, mining locations present mutually beneficial opportunities to utilize disturbed lands for renewable energy in out-of-the-way locations and allow other lands appropriate for more robust economic development to remain available. This bill provides a process for establishing renewable energy facilities on existing mining sites. 2)Background. There are over a thousand active mines in California that remove aggregate for building material, metals, and minerals. Unlike any other state, most surface mines in California are regulated by local government agencies. The Surface Mining and Reclamation Act of 1975 (SMARA) 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. Mining operators are required, under SMARA, to develop and implement reclamation plans, which will return the mine to a condition where it can be used for another purpose after the mining operation is complete. DOC and the Board of Mining and Geology oversee permitting, inspection and enforcement actions. Analysis Prepared by:Jennifer Galehouse / APPR. / (916) 319-2081 AB 1034 Page 4