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
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          |Author:    |Obernolte              |           |                 |
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          |Version:   |June 24, 2015    Amended                             |
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          |Urgency:   |No                     |Fiscal:    |Yes              |
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          |Consultant:|William Craven                                       |
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            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  







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            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:








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             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.








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          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  








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          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.










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          SUPPORT
          County of San Bernadino

          OPPOSITION
          None Received

          
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