BILL ANALYSIS Ó SENATE COMMITTEE ON NATURAL RESOURCES AND WATER Senator Fran Pavley, Chair 2015 - 2016 Regular Bill No: AB 1034 Hearing Date: July 14, 2015 ----------------------------------------------------------------- |Author: |Obernolte | | | ----------------------------------------------------------------- ----------------------------------------------------------------- |Version: |June 24, 2015 Amended | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|William Craven | | | | ----------------------------------------------------------------- Subject: Surface mining: reclamation plans: renewable energy generation facility. BACKGROUND AND EXISTING LAW 1)Creates the Surface Mining and Reclamation Act of 1975 (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 California State Mining and Geology Board (Board). Reclamation plans and financial assurances must be submitted to the director of the Department of Conservation (DOC) for review. 2)Provides a mechanism by which a local agency can lose its lead agency status for its failure to implement state law. In such instances, the Board serves as the lead agency. 3)Requires the Board to adopt regulations that establish state policy for the reclamation of mined lands in accordance with the intent of SMARA. 4)Requires lead agencies to require financial assurances for each surface mining operation to ensure reclamation is AB 1034 (Obernolte) Page 2 of ? performed in accordance with the surface mining operation's approved reclamation plan. 5)Requires the financial assurance to remain in effect for the duration of the surface mining operation and until the reclamation is complete. Requires the amount of financial assurance to be adjusted annually to account for new lands disturbed by surface mining operations, inflation, and reclamation of lands accomplished in accordance with the approved reclamation plan. 6)Requires the lead agencies to conduct annual mine inspections to determine compliance with SMARA. 7)Prohibits substantial deviations from the original plan until an amendment has been filed with, and approved by, the lead agency. 8)Requires, pursuant to regulations adopted by the Board, when substantial amendments are proposed to reclamation plans, that were approved prior to January 15, 1993, the lead agency shall apply the most current reclamation standards in approving or denying the amended reclamation plan. PROPOSED LAW 1)For purposes of amending an approved reclamation plan, specifies that only the designated portion of mined lands to be used for a renewable energy generation facility may be deemed a substantial deviation from the original approved reclamation plan. 2)Requires the proposed amendment to the designate a portion of the mine's land for the construction and operation of a renewable energy generating facility to comply with all of the following: AB 1034 (Obernolte) Page 3 of ? a) Article 5 of SMARA dealing with reclamation and mining operation standards. b) All required permits for the construction, landscaping, or related land improvements that have been approved by a public agency in accordance with applicable provisions of state law and locally adopted plans and ordinances, including, but not limited to, the California Environmental Quality Act. c) The operating permit for the surface mining operation has an approved closure plan and financial assurance that the lead agency determines to be sufficient to perform the removal of the surface mining operation and to restore the mined lands. A calculated surplus or salvage value shall not be utilized to offset the costs of reclaiming the mined lands subject to the approved reclamation plan. Prohibits an amendment for renewable energy generation facility from adversely impacting the operator's vested right or be incompatible with future mining. ARGUMENTS IN SUPPORT According to the author, California has a mandatory target of generating 33 % of its electricity from renewable sources by 2020. Siting renewable energy projects can be difficult given the acreage they require, aesthetics, mitigation requirements, and local opposition to some projects. 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. The same is true of pristine or near-pristine public lands that have conservation or recreational value. Further, utilization of previously disturbed lands preserve pre-existing habitat conservation lands that were established as offset mitigation for prior disturbances. AB 1034 (Obernolte) Page 4 of ? According to the sponsor, San Bernadino County, the bill would remove the disincentive of mine operators to consider co-location of renewable energy facilities on disturbed mining land. The county considers the bill to offer an alternate procedure to mine operators that is less expensive while preserving the ability to mine other lands on the site and reducing demand for renewable energy projects on undisturbed lands. ARGUMENTS IN OPPOSITION None received. COMMENTS It seems quite possible to re-draft aspects of this bill to accomplish the author's and sponsor's intent while also eliminating the need for an amendment reclamation plan on the part of mine operators. It seems inarguable that siting renewable energy facilities on previously disturbed land is preferable than siting such facilities on undisturbed land. The proposed amendment would establish that the renewable energy facility on disturbed land would be termed an "interim" use. The operator and local government would agree on a decommissioning plan and bonding provisions for the removal of the renewable energy facility that would not interfere with reclamation of the mined lands. The amendment retains the author's original language that such renewable energy projects must go through CEQA. The Department of Conservation and the local government would exchange comments on the proposed renewable energy facility, but the ultimate siting approval remains with the local government. Section 2 of the bill would be retained. Section 1 as proposed to be amended is below. SUGGESTED AMENDMENTS AMENDMENT 1 Add Section 2777.3 to the Public Resources Code (a) The construction and operation of a commercial renewable energy generation facility on disturbed mined lands, including all foundations and other installations, facilities, buildings, accessory structures, or other improvements to the land that are related to the generation of energy on disturbed mined lands, shall be considered an interim use for purposes of this chapter AB 1034 (Obernolte) Page 5 of ? and shall not require an amendment to an approved reclamation plan if the following criteria are met: (1) The facility project will not adversely affect the completion of reclamation in accordance with the approved reclamation plan. (2) The facility project's permit conditions address and eliminate any potentially adverse impacts upon the surface mining operation. (3) The operating permit for the renewable energy generation facility includes an approved closure and decommissioning plan that will not affect the manner in which reclamation will be achieved pursuant to this chapter, and a separate financial assurance mechanism that the lead agency determines to be sufficient to perform the removal of the renewable energy generation facility. (4) The facility project's decommissioning will occur prior to either the expiration of the surface mining operation's use permit or the completion of reclamation in accordance with the approved reclamation plan, whichever is later. (5) All required permits for the construction and related land improvements have been approved by a public agency in accordance with applicable provisions of state law and locally adopted plans and ordinances, including, but not limited to, the California Environmental Quality Act (Division 13 commencing with Section 21000). (b) Prior to approving a renewable energy generation facility use permit, the lead agency shall submit the application with all associated maps and plans to the director for review. The director shall have 30 days from the receipt of application with associated documents to prepare written comments if the director chooses. The director may provide comments relating to whether the renewable energy generation facility project meets the criteria outlined in Section 2777.3(a)(1)-(4). The lead agency shall prepare a written response to the director's comments and submit the lead agency's response to the director at least 30 days prior to approval of the use permit for the renewable energy generation facility. (c) Copies of all approved permits and associated documents must be submitted to the lead agency, to be attached as an addendum to the approved reclamation plan, and to the director no less than 30 days prior to the commencement of any land improvements associated with the renewable energy generation facility. AB 1034 (Obernolte) Page 6 of ? SUPPORT County of San Bernadino OPPOSITION None Received -- END --