BILL ANALYSIS Ó
AB 1142
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ASSEMBLY THIRD READING
AB
1142 (Gray)
As Amended June 3, 2015
Majority vote
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|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 | |
| | | | |
AB 1142
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| | | | |
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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 five 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 the Department of Conservation (DOC) Director
(Director) to provide workshops on mine inspections and lead
agency employees to take the workshops. 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.
1)Creates a new financial assurance cost estimate (FACE) process
and requires the operator to provide the FACE to the DOC and the
lead agency for review. Requires the lead agency to review the
FACE for adequacy and completeness and submit the FACE to the
Director for review with a preliminary determination of whether
it is adequate and complete.
1)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
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process and timelines if the lead agency determines the FACE is
inadequate.
2)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
each year, requires the lead agency to provide the Director with
specified information. Requires DOC to request similar
information on any new or omitted operations.
3)Allows the Director or California State Mining and Geology Board
(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
Board. However, reclamation plans and financial assurances must
be submitted to the Director of the 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.
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4)Requires lead agencies to require financial assurances of each
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
(General Fund (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.
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2)Initial DOC costs of approximately $775,000 for the first year
to review and organize existing files, coordinate with the lead
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 Geographic Information Systems 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.
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As stated above, the Governor has called for a top to bottom
review of SMARA. The goal of these talks is to amend SMARA
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 this bill differs significantly from the
SMARA reform language released by DOC. DOC is currently getting
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comments on its draft language from the Governor's stakeholder
group.
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:
0000907
AB 1142
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