BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 1142 (Gray) - Mining and geology: surface mining. ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: August 18, 2015 |Policy Vote: N.R. & W. 8 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 24, 2015 |Consultant: Marie Liu | | | | ----------------------------------------------------------------- This bill may meet the criteria for referral to the Suspense File. Bill Summary: AB 1142 would establish a new process by which the director of the Department of Conservation (DOC) can review reclamation plans and financial assurances under the Surface Mining and Reclamation Act Fiscal Impact: Unknown costs to the Surface Mining and Reclamation Account (special) for additional review by the director of reclamation plans and financial assurances. Background: The Surface Mining and Reclamation Act of 1975 (SMARA, PRC §2710 et seq.) regulates surface mining operations to minimize environmental impacts and to provide for the reclamation of mined lands to a usable condition while encouraging the production, conservation, and protection of the state's mineral resources. SMARA applies to the mining of hard metals minerals, AB 1142 (Gray) Page 1 of ? and sand and gravel. SMARA generally requires a surface mining operation to obtain a mining permit, to have an approved reclamation plan, and to have secured financial assurances. Financial assurances are surety documents that can be used to pay for any mine reclamation costs in the event that a mine operator defaults on its obligation to reclaim a mine at the end of its useful life. The role of lead agency: SMARA is administered by the DOC's Office of Mine Reclamation and the State Mining and Geology Board (SMGB), but allows local entities to operate as the lead agency and issue mining permits if the local entity has adopted an ordinance governing mining activities that meet specified requirements. However, reclamation plans and financial assurances must be submitted to the director DOC for review (§2774). Mines are required to be inspected annually, and are the basis for establishing financial assurance amounts. Oversight of local agencies: Existing law establishes the procedures by which the director can submit comments to a lead agency regarding its pending approval of a reclamation plan and financial assurances and the lead agency's required response to such comments. Individuals may appeal specific lead agency actions, including denying approval of a reclamation plan, to the SMGB (§2770(e)). Revoking of local agency responsibilities: Existing law enables the SMGB to assume the role of the lead agency, except for local permitting authority, if the lead agency is failing to fulfill its statutory obligations, including if the lead agency approves a reclamation plan and financial assurances that are not consistent with SMARA (§2774.4). The SMGB is required to restore powers to the lead agency within three years if the lead agency takes corrective actions. Proposed Law: This bill would make various changes to SMARA. Specifically, this bill would, among other things: Require reclamation plans to include a chart identifying the specific location in the plan which addresses various requirements. AB 1142 (Gray) Page 2 of ? Establish a process by which the director may review a reclamation plan or plan amendment. The director would have 45 from the receipt of a complete reclamation plan or plan amendment to prepare written comments. The lead agency would be required to respond in writing to the director's comments and give a 30 day notice of its intention to approve the reclamation plan or amendment. Establish a process by which the director may review financial assurances for a new reclamation plan or adjustments to financial assurances as a result of a plan amendment. The director would and local agency would have an unspecified amount of time to respond are review the financial assurances. Make numerous technical and clarifying changes Related Legislation: SB 209 would make various changes to SMARA including raising the annual reporting fee and establishing a new process to review reclamation plans. AB 209 is currently on the Assembly Appropriations suspense file. Staff Comments: Under existing law, the director has the authority to review reclamation plans and financial assurances. However, if the director finds that the plan or financial assurances are insufficient, the director has few options to compel changes other than revoking the lead agency's responsibilities under SMARA. This bill aims to improve the reviews by assuring the director receives all the necessary information in an orderly and timely fashion and by giving the director authority to submit comments to the local agencies which the local agency must respond. By giving the director specific authorities in which he or she may review reclamation plans and financial assurance and compel necessary changes, this review is likely to be more thorough and AB 1142 (Gray) Page 3 of ? therefore may require additional workload. The extent of the additional workload is unknown. The authors of this bill and SB 209 are currently in discussions with the Governor's office and various stakeholders regarding the provisions in both bills. Further amendments to this bill are likely as a result of those discussions. -- END --