BILL ANALYSIS Ó AB 1034 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1034 (Obernolte) As Amended August 18, 2015 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |76-0 |(May 26, 2015) |SENATE: |38-0 |(August 20, | | | | | | |2015) | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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; AB 1034 Page 2 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. AB 1034 Page 3 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 AB 1034 Page 4 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 AB 1034 Page 5