BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 1142


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          ASSEMBLY THIRD READING


          AB  
          1142 (Gray)


          As Amended  May 5, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                  |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Natural         |9-0   |Williams, Dahle,    |                      |
          |Resources       |      |Cristina Garcia,    |                      |
          |                |      |Hadley, Harper,     |                      |
          |                |      |McCarty, Rendon,    |                      |
          |                |      |Mark Stone, Wood    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Appropriations  |17-0  |Gomez, Bigelow,     |                      |
          |                |      |Bonta, Calderon,    |                      |
          |                |      |Chang, Daly,        |                      |
          |                |      |Eggman, Gallagher,  |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |                |      |Eduardo Garcia,     |                      |
          |                |      |Gordon, Holden,     |                      |
          |                |      |Jones, Quirk,       |                      |
          |                |      |Rendon, Wagner,     |                      |
          |                |      |Weber, Wood         |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
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                                                                      AB 1142


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          SUMMARY:  Makes numerous and significant changes to the Surface  
          Mining and Reclamation Act of 1975 (SMARA).  Specifically, this  
          bill:


          1)Requires a surface mine operator to request a date for their  
            next annual inspection as part of their annual report.  If the  
            operator does not request an inspection date or the lead agency  
            is unable to inspect on the requested date, requires the lead  
            agency to provide a minimum 30 days written notice of a pending  
            inspection or a date that is agreed upon by the operator.   
            Deletes the requirement for a lead agency to conduct an  
            inspection within six months of receipt of the report and  
            instead requires annual inspections.
          2)Requires a mine inspection to be conducted by a state licensed  
            geologist, state licensed civil engineer, state licensed  
            landscape architect, state licensed forester, or a qualified  
            mine inspector trained through the curriculum developed by the  
            bill. Allows a lead agency employee who is a qualified mine  
            inspector to inspect a surface mine operation conducted by  
            another department within the local agency.


          3)Creates a new financial assurance cost estimate (FACE) process  
            and requires the operator to provide the FACE to the Department  
            of Conservation (DOC) and the lead agency for review. Allows DOC  
            to comment on the FACE. Allows the lead agency to evaluate DOC's  
            comments and provide a response to the comments. Requires the  
            lead agency to accept or reject the FACE within 60 days of  
            receipt of DOC's comments or the due date for the comments, if  
            comments are not received. Creates an appeal process and  
            timelines if the lead agency determines the FACE is inadequate. 


          4)By April 1 of each year, requires DOC to provide each lead  
            agency with a notice listing each active or idle surface mining  
            operation within the lead agency's jurisdiction.  By July 1 of  








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            each year, requires the lead agency to provide the DOC Director  
            with specified information.  Requires DOC to request similar  
            information on any new or omitted operations.


          5)Requires the form provided by DOC to include all of DOC's  
            current information for each operation.


          6)Allows the DOC Director or Board to apply to the small claims  
            court or superior court to collect unpaid administrative  
            penalties.


          EXISTING LAW:  


          1)Creates 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). However,  
            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 the Board can strip a local agency  
            of its lead agency status for its failure to implement state  
            law, the Board then 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 of each  








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            surface mining operation to ensure reclamation is 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.


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:


          1)Increased DOC costs of $1 million or more to develop a new  
            database to fulfill new form and notification requirements (GF  
            or special fund).
            According to DOC, a new data collection system that incorporates  
            the electronic filing of documents is necessary to meet the  
            requirements of the bill. Annual reports, financial assurance  
            cost estimates, reclamation plan amendments and permit  
            amendments would all need to be filed online by the lead agency  
            to enable the database to provide form letters based upon the  
            information submitted by the lead agency.  Due to state  
            information technology procurement requirements, it is not  
            feasible to procure an updated database management system and  
            meet the deadlines of the bill.


          2)Initial DOC costs of approximately $775,000 for the first year  
            to review and organize existing files, coordinate with the lead  








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            agency to obtain missing information and document reclamation  
            plan requirements (GF or special fund). 
          3)Ongoing annual DOC costs of approximately $500,000 to review the  
            reclamation plan, check for any updates to the reclamation plan  
            and associated permits, review inspection and annual reports,  
            and examine GIS data for each operation that submits a financial  
            assurance cost estimate (GF or special fund).


          COMMENTS:  


          1)Governor's stakeholder group.  SMARA was passed into law in 1975  
            and its intent remains unchanged. SMARA states:


          It is the intent of the Legislature to create and maintain  
          an effective and comprehensive surface mining and  
          reclamation policy with regulation of surface mining  
          operations so as to assure that: 


          a) Adverse environmental effects are prevented or minimized  
          and that mined lands are reclaimed to a usable condition  
          which is readily adaptable for alternative land uses.


          b) The production and conservation of minerals are  
          encouraged, while giving consideration to values relating  
          to recreation, watershed, wildlife, range and forage, and  
          aesthetic enjoyment.


          c) Residual hazards to the public health and safety are  
          eliminated.


          As stated above, the Governor has called for a top to bottom  
          review of SMARA.  The goal of these talks is to amend SMARA  








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          to meet its intent.  Multiple stakeholder group meetings have  
          been held to discuss the administration's concerns with  
          SMARA.  Issues that are under discussion include:


             a)   Meaningful reclamation of disturbed mine lands;
             b)   Adequate financial assurance; 


             c)   Financial assurances are not released until reclamation is  
               complete;


             d)   Financial assurance can be used for reclamation if the  
               mine owner does not reclaim their mine; 


             e)   Annual, quality inspections of mine occur;


             f)   When inspectors find non-compliance enforcement is clear,  
               timely, and meaningful;


             g)   The Board has tools to improve local SMARA implementation;


             h)   Reporting fees and penalties are paid by operators and  
               that fees cover the cost of the program; and,


             i)   Inappropriate exemptions from SMARA are stopped.


          The language currently in AB 1142 differs significantly from the  
          SMARA reform language released by DOC. DOC is currently getting  
          comments on its draft language from the Governor's stakeholder  
          group.









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          1)Reclamation.  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 to  
            reclamation.  However, there are instances when the mine  
            operator cannot be located or is 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. 


          Analysis Prepared by:                                               
                          Michael Jarred / NAT. RES. / (916) 319-2092  FN:  
          0000764


















                                                                      AB 1142


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