BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1034


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1034 (Obernolte)


          As Amended  August 18, 2015


          Majority vote


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          |ASSEMBLY:  |76-0  |(May 26, 2015) |SENATE: |38-0  |(August 20,      |
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          Original Committee Reference:  NAT. RES.


          SUMMARY:  Requires a lead agency to consider the construction  
          and operation of a renewable energy generation facility on  
          disturbed mined lands to be an interim use and would prohibit a  
          lead agency from requiring an amendment to an approved  
          reclamation plan if specified criteria are met.  Specifically,  
          the criteria that must be met for this bill to apply include all  
          of the following: 


          1)The permit conditions for the energy facility will not  
            adversely affect the ultimate reclamation of the mined lands  
            or any ongoing mining operation; 


          2)The energy facility has a separate closure and decommissioning  
            plan and a separate financial assurance mechanism to ensure  
            that the removal of the renewable energy facility; 









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          3)The closure and decommissioning will occur either before the  
            use permit of the mine expires or before the mine reclamation  
            process is completed; and, 


          4)That all local land use entitlements have been obtained and  
            applicable provisions of state law have been complied with.  


          The Senate amendments rather than creating a process of amending  
          a reclamation plan in which a renewable energy generation  
          facility on disturbed mining lands will not be a substantial  
          deviation from the original approved reclamation plan, the  
          amendments instead designate a renewable energy generation  
          facility on disturbed mining lands, that meets specified  
          criteria, an interim use, which will not require an amendment to  
          the original reclamation plan.


          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)Requires lead agencies to require financial assurances for  
            each surface mining operation to ensure reclamation is  
            performed in accordance with the surface mining operation's  
            approved reclamation plan.










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          3)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.


          4)Requires the lead agencies to conduct annual mine inspections  
            to determine compliance with SMARA.


          5)Prohibits substantial deviations from the original plan until  
            an amendment has been filed with, and approved by, the lead  
            agency.


          6)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.


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.


          COMMENTS:  There are over a thousand active mines in California  
          that remove aggregate for building material, metals, and  
          minerals. California is the only state in the United States  
          where surface mine reclamation is not regulated by the state.   
          Local governments, including cities and counties, are the lead  
          agencies for most mines.  However, DOC and the Board oversee  
          their permitting, inspection, and enforcement actions.  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.  Annual reports and inspections are  
          supposed to ensure that mining operators are making progress  
          towards reclamation.  However, there are instances when the mine  








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          operator cannot be located or are unable to complete the mine  
          reclamation.  Financial assurances are required to make sure  
          there will be resources available to reclaim the mine.  The  
          state and lead agencies have an interest in properly reclaimed  
          mines, because a surface mine is a large hole in the ground and  
          can have many dangerous features.  If the mine is reclaimed, the  
          land can be returned to another use.  If it is not, the state or  
          the lead agency could be responsible for protecting the public  
          from the dangers of the mine, cleaning up the mine, and  
          reclaiming the mine.  Mine reclamation plans approved prior to  
          January 15, 1993, are subject to less specific reclamation  
          standards.  Post 1993 reclamation standards require more  
          specificity to ensure that proper the slope, soil, vegetative  
          cover, and erosion control standards are in place to reclaim the  
          mine.  To comply with the post 1993 reclamation standards,  
          mining operators often hire technical experts.


          The sponsor of this bill wishes to promote the colocation  
          of renewable energy generation facilities with mines.  Many  
          mines are in rural locations and are already disturbed  
          lands.  Therefore, they may be ideal locations for  
          renewable energy generation facilities.  Miners, who have  
          grandfathered (pre 1993) reclamation plans, may not want to  
          allow renewable energy generation facilities on their land  
          because doing so would require them to amend their  
          reclamation plans and be subject to the new reclamation  
          standards.  This bill intends to offer a solution to this  
          problem by not requiring an amendment to a reclamation plan  
          if certain criteria are met.  This preserves the status quo  
          while encouraging mine operators to co-locate renewable  
          energy generation facilities.


          Analysis Prepared by:                                             
                          Michael Jarred / NAT. RES. / (916) 319-2092  FN:  
          0001475













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