BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1142| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1142 Author: Gray (D) Amended: 3/16/16 in Senate Vote: 21 SENATE NATURAL RES. & WATER COMMITTEE: 8-0, 7/14/15 AYES: Pavley, Allen, Hertzberg, Hueso, Jackson, Monning, Vidak, Wolk NO VOTE RECORDED: Stone SENATE APPROPRIATIONS COMMITTEE: 5-0, 8/27/15 AYES: Lara, Beall, Hill, Leyva, Mendoza NO VOTE RECORDED: Bates, Nielsen ASSEMBLY FLOOR: 73-1, 6/4/15 - See last page for vote SUBJECT: Mining and geology: surface mining SOURCE: Author DIGEST: This bill makes numerous changes to the state surface mining provisions regarding reclamation plans, financial assurances, annual inspections, and enforcement. It is subject to a contingent enactment provision that is also attached to SB 209 (Pavley), another surface mining reform bill. Senate Floor Amendments of 3/16/16 reflect an agreement between the author and Senator Pavley to divide the subject matter of two surface mining bills. Both bills have been amended to reflect a consensus with the administration, local governments, industry representatives, and conservation groups. Many of the provisions in AB 1142 received policy committee analysis when AB 1142 Page 2 considered in SB 209. All of the provisions in both bills were the subject of extensive negotiation by a stakeholder process convened by the administration. ANALYSIS: Existing law: 1) Prohibits surface mining, with exceptions, unless a permit is obtained from, a specified reclamation plan is submitted and approved by, and financial assurances have been approved by the lead agency (usually a local government) for the operation of the surface mining operation. Operators are entitled to be in "substantial compliance" with these provisions. 2) Requires annual inspections of surface mining operations by the lead agency to be performed by a state-licensed architect, civil engineer, landscape architect, or forester. 3) Requires the lead agency to have primary responsibility for enforcement and establishes deadlines when that responsibility is transferred to the director of the Department of Conservation (DOC). This bill: 1) Revises reclamation plan requirements to include more thorough information including maps, dates of initiation and termination of mining, depth of mining, and other data so that they are more likely to be complete. To the extent these documents require preparation by a licensed professional, the bill requires that a licensed professional prepare the document and include his or her license number, signature, and seal. This provision refers to documents prepared by professional engineers, geologists, or land surveyors. 2) Establishes a process for operators to correct deficiencies identified by the DOC in reclamation plans. AB 1142 Page 3 3) Establishes a process for the lead agency to submit reclamation plans to the director for review and for the review and comment of the director back to the lead agency. 4) Revises the financial assurance provisions of the state surface mining law to require upgrades when shown to be necessary by the annual inspections and requires the lead agency to submit the financial assurances to the director. 5) Standardizes the financial assurances cost estimates in a new format that will be developed by the director and approved by the State Mining and Geology Board (board). 6) Revises the appeals procedures for review of financial assurances and allows the director to appeal to the board. Incomplete financial assurances may be remanded to the lead agency. 7) Establishes, in cases where the lead agency determines that an operator may be financially incapable of performing reclamation in accordance with a reclamation plan, a procedure to forfeit the financial assurances following a public hearing that meets specified conditions. 8) Requires actual compliance with the act for purposes of determining compliance with the reclamation plan and financial assurances requirements. 9) Requires, for annual inspections, proof of such inspections, and authorizes counties to use their own employees for such inspections assuming those employees meet the inspection training criteria that are also created in this bill. 10) Revises and recasts the provisions related to enforcement to eliminate procedural dead-ends that were in the prior law. It also authorizes the director or the board to apply to small claims court to collect unpaid administrative penalties. 11) Gives the board more options for oversight of local lead agencies to improve the performance of lead agencies other than removing them from their status as lead agency. AB 1142 Page 4 12) Makes many other technical and procedural changes to the state's surface mining law. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: Yes According to the Senate Appropriations Committee, there are unknown costs to the Surface Mining and Reclamation Account (special) for additional review by the director of reclamation plans and financial assurances. SUPPORT: (Verified 3/23/16) Associated Builders and Contractors of California BoDean Company California Asphalt Pavement Association California Business Properties Association California Chamber of Commerce California Construction and Industrial Materials Association California Independent Petroleum Association California Labor Federation California Manufacturers and Technology Association CalPortland Company Cemex Environmental Working Group Fullerton Chamber of Commerce George Reed Inc. Granite Knife River Corporation Lehigh Hanson Minerals Technologies National Federation of Independent Business P.W. Gillibrand Co. Puente Ready Mix Robertson's Rock and Sand Rural County Representatives of California Searles Valley Materials Southwest California Legislative Council Specialty Minerals Superior Ready Mix Teichert Materials The Sierra Fund AB 1142 Page 5 United Contractors Vulcan Materials Company Werner Corporation OPPOSITION: (Verified 3/23/16) None received ARGUMENTS IN SUPPORT: According to the author, the Governor called for a top to bottom review of the state mining law in his signing message of SB 447 (Lara) in 2013. The author believes this bill strengthens the mining law to ensure effective communication between local lead agencies, the state, and mine operators. The bill sets appropriate and timely inspection schedules, promotes management flexibility while ensuring each facility's compliance obligations are clear, and incorporates numerous concepts from the administration's stakeholder process that are designed to strengthen the review of approvals pursuant to the state's mining law. The California Construction and Industrial Materials Association states that AB 1142 provides clarity and timelines to important existing processes required under existing law. The group, and the other business interests in support, argue that the bill provides clarity regarding the content of reclamation plans and financial assurances but in ways that are flexible enough to allow future approvals for the benefit of operators. A business coalition headed by the California Chamber of Commerce supports the improvements to the inspection process, to the financial assurance provisions, and to the enhanced oversight of the financial assurance provisions, while at the same time ensuring that construction aggregates remain viable and cost-effective. The California Labor Federation supports the bill because the improvements to the state's mining laws minimize impacts to existing jobs. AB 1142 Page 6 The Sierra Fund and the Environmental Working Group support this bill because of the improvements made to the inspection, financial assurance, enforcement, and reclamation plan provisions. The California League of Conservation Voters has removed its opposition. ASSEMBLY FLOOR: 73-1, 6/4/15 AYES: Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gonzalez, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey, Linder, Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin, Obernolte, O'Donnell, Olsen, Patterson, Perea, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Wagner, Waldron, Weber, Wilk, Williams, Wood, Atkins NOES: Levine NO VOTE RECORDED: Alejo, Gomez, Gordon, Nazarian, Rendon, Ting Prepared by:William Craven / N.R. & W. / (916) 651-4116 3/28/16 10:28:57 **** END ****