Amended in Assembly March 17, 2016

Amended in Assembly September 4, 2015

Amended in Assembly September 2, 2015

Amended in Assembly August 17, 2015

Amended in Assembly July 16, 2015

Amended in Assembly July 7, 2015

Amended in Senate May 12, 2015

Amended in Senate March 19, 2015

Senate Bill No. 209

Introduced by Senator Pavley

February 11, 2015

An act to amend Sections 607, 2207, begin delete 2714, 2770, 2772, and 2774 end delete begin insert and 2714 end insert of, and to add Sections begin delete 2006.5 end delete begin insert 2006.5, 2770.1, end insert and 2773.1.5 to, the Public Resources Code, relating to surface mining.

LEGISLATIVE COUNSEL’S DIGEST

SB 209, as amended, Pavley. Surface mining: begin delete inspections: end delete financial assurances: reclamation plans.

(1) Existing law establishes the Office of Mine Reclamation within the Department of Conservation. Existing law requires the State Mining and Geology Board to impose, by regulation, an annual reporting fee on the operators of all active and idle mining operations. Existing law requires the maximum amount of the annual fee imposed on each mining operation to not exceed $4,000. Existing law limits the maximum amount of the total revenue generated from the reporting fee to no more than $3,500,000, as specified.

This bill would instead establish the Division of begin delete Mines end delete begin insert Mine Reclamation end insert within the department under the direction of the Supervisor of begin delete Mines and end delete begin insert Mine end insert Reclamation. The bill also would raise the maximum amount of the annual reporting fee to $10,000 per mining operation, except as specified. The bill would raise the maximum amount of the total revenue generated from the reporting fee to $8,000,000, as specified.

(2) The Surface Mining and Reclamation Act of 1975 prohibits a person, with exceptions, from conducting surface mining operations unless, among other things, a permit is obtained from, a specified reclamation plan is submitted to and approved by, and financial assurances for reclamation have been approved by the lead agency for the operation of the surface mining operation.

begin delete

This bill would revise and recast provisions of the act related to the approval of reclamation plans and, among other things, would require a reclamation plan filed by an operator of a surface mining operation with a lead agency to include specified reclamation maps and would require a borrow pit operated by a lead agency to include a specified interim management plan. By adding to the duties of a local government acting as a lead agency under the act, this bill would impose a state-mandated local program.

end delete begin insert

This bill would require a lead agency that is the owner or operator of a borrow pit surface mining operation that is used solely by that lead agency to include in the reclamation plan maintenance measures that become effective when the borrow pit surface mining operation is idle or to obtain an approved interim management plan, as specified. The bill would authorize a lead agency to conduct an inspection once every 2 calendar years during a period when the borrow pit surface mining operation that is used solely by that lead agency is idle.

end insert

This bill begin delete would revise and recast provisions of the act related to the proof of financial assurances and, among other things, end delete would allow an operator, after the board has adopted a specified regulation, to include in a financial assurance mechanism a corporate financial test, as described.

begin delete

This bill would authorize a lead agency to cause an inspection to be conducted by an unlicensed employee who meets specified criteria; impose new requirements on the lead agency relating to the timing of inspections; and require the department to establish, no later than December 31, 2016, a training program for all surface mine inspectors, as specified. By adding to the duties of a local government acting as a lead agency under the act, this bill would impose a state-mandated local program.

end delete

(3) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

(4) This bill would make its operation contingent on the enactment of Assembly Bill 1142 of the 2015-16 Regular Session.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 607 of the Public Resources Code is
amended to read:

607.  

The work of the department shall be divided into at least
the following:

(a) California Geological Survey.

(b) Division of Oil, Gas, and Geothermal Resources.

(c) Division of Land Resource Protection.

(d) Division of begin delete Mines. end delete begin insert Mine Reclamation. end insert

SEC. 2.  

Section 2006.5 is added to the Public Resources Code,
to read:

2006.5.  

“Supervisor of begin delete Mines and end delete begin insert Mine end insert Reclamation” means
the individual directing the Division of begin delete Mines end delete begin insert Mine Reclamation end insert
established pursuant to subdivision (d) of Section 607.

SEC. 3.  

Section 2207 of the Public Resources Code is amended
to read:

2207.  

(a) The owner or the operator of a mining operation
within the state shall forward to the director annually, not later
than a date established by the director, upon forms approved by
the board from time to time, a report that identifies all of the
following:

(1) The name, address, and telephone number of the person,
company, or other owner of the mining operation.

(2) The name, address, and telephone number of a designated
agent who resides in this state, and who will receive and accept
service of all orders, notices, and processes of the lead agency,
board, director, or court.

(3) The location of the mining operation, its name, its mine
number as issued by the Division of begin delete Mines end delete begin insert Mine Reclamation end insert or
the director, its section, township, range, latitude, longitude, and
approximate boundaries of the mining operation marked on a
United States Geological Survey 71⁄2-minute or 15-minute
quadrangle map.

(4) The lead agency.

(5) The approval date of the mining operation’s reclamation
plan.

(6) The mining operation’s status as active, idle, reclaimed, or
in the process of being reclaimed.

(7) The commodities produced by the mine and the type of
mining operation.

(8) A copy of the previously completed annual inspection form
and a requested date, within 12 months of the prior inspection date,
for the next annual inspection by the lead agency.

(9) Proof of financial assurances.

(10) Ownership of the property, including government agencies,
if applicable, by the assessor’s parcel number, and total assessed
value of the mining operation.

(11) The approximate permitted size of the mining operation
subject to Chapter 9 (commencing with Section 2710), in acres.

(12) The approximate total acreage of land newly disturbed by
the mining operation during the previous calendar year.

(13) The approximate total of disturbed acreage reclaimed during
the previous calendar year.

(14) The approximate total unreclaimed disturbed acreage
remaining as of the end of the calendar year.

(15) The total production for each mineral commodity produced
during the previous year.

(16) A copy of any approved reclamation plan and any
amendments or conditions of approval to any existing reclamation
plan approved by the lead agency.

(b) (1) Every year, not later than the date established by the
director, the person submitting the report pursuant to subdivision
(a) shall forward to the lead agency, upon forms furnished by the
board, a report that provides all of the information specified in
subdivision (a).

(2) The owner or operator of a mining operation shall allow
access to the property to any governmental agency or the agent of
any company providing financial assurances in connection with
the reclamation plan in order that the reclamation can be carried
out by the entity or company, in accordance with the provisions
of the reclamation plan.

(c) Subsequent reports shall include only changes in the
information submitted for the items described in subdivision (a),
except that, instead of the approved reclamation plan, the reports
shall include any reclamation plan amendments approved during
the previous year. The reports shall state whether review of a
reclamation plan, financial assurances, or an interim management
plan is pending under subdivision (h) of Section 2770, or whether
an appeal before the board or lead agency governing body is
pending under subdivision (e) or (h) of Section 2770. The director
shall notify the person submitting the report and the owner’s
designated agent in writing that the report and the fee required
pursuant to subdivision (d) have been received, specify the mining
operation’s mine number if one has not been issued by the Division
of begin delete Mines, end delete begin insert Mine Reclamation, end insert and notify the person and agent of
any deficiencies in the report within 90 days of receipt. That person
or agent shall have 30 days from receipt of the notification to
correct the noted deficiencies and forward the revised report to the
director and the lead agency. Any person who fails to comply with
this section, or knowingly provides incorrect or false information
in reports required by this section, may be subject to an
administrative penalty as provided in subdivision (c) of Section
2774.1.

(d) (1) The board shall impose, by regulation, pursuant to
paragraph (2), an annual reporting fee on, and method for collecting
annual fees from, each active or idle mining operation. The
maximum fee for any single mining operation may not exceed ten
thousand dollars ($10,000) annually and may not be less than one
hundred dollars ($100) annually, as adjusted for the cost of living
as measured by the California Consumer Price Index for all urban
consumers, calendar year averages, using the percentage change
in the previous year, except that the maximum fee for any single
mining operation shall not exceed six thousand dollars ($6,000)
in the begin delete 2016-17 end delete begin insert 2017-18 end insert fiscal year and eight thousand dollars
($8,000) in the begin delete 2017-18 end delete begin insert 2018-19 end insert fiscal year.

(2) (A) The board shall adopt, by regulation, a schedule of fees
authorized under paragraph (1) to cover the department’s cost in
carrying out this section and Chapter 9 (commencing with Section
2710), as reflected in the Governor’s proposed Budget, and may
adopt those regulations as emergency regulations. In establishing
the schedule of fees to be paid by each active and idle mining
operation, the fees shall be calculated on an equitable basis
reflecting the size and type of operation. The board shall also
consider the total assessed value of the mining operation, the
acreage disturbed by mining activities, and the acreage subject to
the reclamation plan.

(B) Regulations adopted pursuant to this subdivision shall be
adopted by the board in accordance with the Administrative
Procedure Act (Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code). The
adoption of any emergency regulations pursuant to this subdivision
shall be considered necessary to address an emergency and shall
be considered by the Office of Administrative Law to be necessary
for the immediate preservation of the public peace, health, safety,
and general welfare.

(3) The total revenue generated by the reporting fees may not
exceed, and may be less than, the amount of eight million dollars
($8,000,000), as adjusted for the cost of living as measured by the
California Consumer Price Index for all urban consumers, calendar
year averages, using the percentage change in the previous year,
beginning with the begin delete 2016-17 end delete begin insert 2017-18 end insert fiscal year and annually
thereafter. If the director determines that the revenue collected
during the preceding fiscal year was greater or less than the cost
to operate the program, the board shall adjust the fees to
compensate for the overcollection or undercollection of revenues.

(4) (A) The reporting fees established pursuant to this
subdivision shall be deposited in the Mine Reclamation Account,
which is hereby created. Any fees, penalties, interest, fines, or
charges collected by the director or board pursuant to this chapter
or Chapter 9 (commencing with Section 2710) shall be deposited
in the Mine Reclamation Account. The money in the account shall
be available to the department and board, upon appropriation by
the Legislature, for the purpose of carrying out this section and
complying with Chapter 9 (commencing with Section 2710), which
includes, but is not limited to, classification and designation of
areas with mineral resources of statewide or regional significance,
reclamation plan and financial assurance review, mine inspection,
and enforcement.

(B) (i) In addition to reporting fees, the board shall collect five
dollars ($5) per ounce of gold and ten cents ($0.10) per ounce of
silver mined within the state and shall deposit the fees collected
in the Abandoned Mine Reclamation and Minerals Fund
Subaccount, which is hereby created in the Mine Reclamation
Account. The department may expend the moneys in the
subaccount, upon appropriation by the Legislature, for only the
purposes of Section 2796.5 and as authorized herein for the
remediation of abandoned mines.

(ii) Notwithstanding subdivision (j) of Section 2796.5, fees
collected pursuant to clause (i) may also be used to remediate
features of historic abandoned mines and lands that they impact.
For the purposes of this section, historic abandoned mines are
mines for which operations have been conducted before January
1, 1976, and include, but are not limited to, historic gold and silver
mines.

(5) In case of late payment of the reporting fee, a penalty of not
less than one hundred dollars ($100) or 10 percent of the amount
due, whichever is greater, plus interest at the rate of 11⁄2 percent
per month, computed from the delinquent date of the assessment
until and including the date of payment, shall be assessed. New
mining operations that have not submitted a report shall submit a
report prior to commencement of operations. The new operation
shall submit its fee according to the reasonable fee schedule
adopted by the board, and the month that the report is received
shall become that operation’s anniversary month.

(e) The lead agency, or the board when acting as the lead agency,
may impose a fee upon each mining operation to cover the
reasonable costs incurred in implementing this chapter and Chapter
9 (commencing with Section 2710).

(f) For purposes of this section, “mining operation” means a
mining operation of any kind or character whatever in this state,
including, but not limited to, a mining operation that is classified
as a “surface mining operation” as defined in Section 2735, unless
excepted by Section 2714. For the purposes of fee collections only,
“mining operation” may include one or more mines operated by
a single operator or mining company on one or more sites, if the
total annual combined mineral production for all sites is less than
100 troy ounces for precious metals, if precious metals are the
primary mineral commodity produced, or less than 100,000 short
tons if the primary mineral commodity produced is not precious
metals.

(g) Any information in reports submitted pursuant to subdivision
(a) that includes or otherwise indicates the total mineral production,
reserves, or rate of depletion of any mining operation may not be
disclosed to any member of the public, as defined in subdivision
(b) of Section 6252 of the Government Code. Other portions of
the reports are public records unless excepted by statute. Statistical
bulletins based on these reports and published under Section 2205
shall be compiled to show, for the state as a whole and separately
for each lead agency, the total of each mineral produced therein.
In order not to disclose the production, reserves, or rate of depletion
from any identifiable mining operation, no production figure shall
be published or otherwise disclosed unless that figure is the
aggregated production of not less than three mining operations. If
the production figure for any lead agency would disclose the
production, reserves, or rate of depletion of less than three mining
operations or otherwise permit the reasonable inference of the
production, reserves, or rate of depletion of any identifiable mining
operation, that figure shall be combined with the same figure of
not less than two other lead agencies without regard to the location
of the lead agencies. The bulletin shall be published annually by
June 30 or as soon thereafter as practicable.

(h) The approval of a form by the board pursuant to this section
is not the adoption of a regulation for purposes of the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code) and is not subject to that act.

SEC. 4.  

Section 2714 of the Public Resources Code is amended
to read:

2714.  

This chapter does not apply to any of the following
activities:

(a) Excavations or grading of lands conducted for farming.

(b) Onsite excavation and onsite earthmoving activities that are
integral and necessary for the construction of structures and that
are undertaken to prepare a site for the construction of those
structures, including landscaping or other land improvements
associated with those structures, including the related excavation,
grading, compaction, or the creation of fills, road cuts, and
embankments, whether or not surplus materials are exported from
the site, subject to all of the following conditions:

(1) All required permits for the construction and any associated
landscaping or related land improvements have been approved by
a public agency in accordance with applicable provisions of state
law and locally adopted plans and ordinances, including, but not
limited to, the California Environmental Quality Act (Division 13
(commencing with Section 21000)).

(2) The lead agency’s approval of the construction project
included consideration of the onsite excavation and onsite
earthmoving activities pursuant to the California Environmental
Quality Act (Division 13 (commencing with Section 21000)).

(3) The approved construction project is consistent with the
general plan or zoning of the site.

(4) Surplus materials shall not be exported from the site unless
and until actual construction work has commenced and shall cease
if it is determined that construction activities have terminated, have
been indefinitely suspended, or are no longer being actively
pursued.

(c) Operation of a plant site used for mineral processing,
including associated onsite structures, equipment, machines, tools,
or other materials, including the onsite stockpiling and onsite
recovery of mined materials, subject to all of the following
conditions:

(1) The plant site is located on lands designated for industrial
or commercial uses in the applicable county or city general plan.

(2) The plant site is located on lands zoned industrial or
commercial or are contained within a zoning category intended
exclusively for industrial activities by the applicable city or county.

(3) None of the minerals being processed are being extracted
onsite.

(4) All reclamation work has been completed pursuant to the
approved reclamation plan for any mineral extraction activities
that occurred onsite after January 1, 1976.

(d) Prospecting for or the extraction of minerals for commercial
purposes where the removal of overburden or mineral product
totals less than 1,000 cubic yards in any one location and the total
surface area disturbed is less than one acre.

(e) Surface mining operations that are required by federal law
in order to protect a mining claim, if those operations are conducted
solely for that purpose.

(f) Any other surface mining operations that the board
determines to be of an infrequent nature and that involve only
minor surface disturbances.

(g) The solar evaporation of sea water or bay water for the
production of salt and related minerals.

(h) Emergency excavations or grading conducted by the
Department of Water Resources or the Central Valley Flood
Protection Board for the purpose of averting, alleviating, repairing,
or restoring damage to property due to imminent or recent floods,
disasters, or other emergencies.

(i) (1) Surface mining operations conducted on lands owned
or leased, or upon which easements or rights-of-way have been
obtained, by the Department of Water Resources for the purpose
of the State Water Resources Development System or flood control,
and surface mining operations on lands owned or leased, or upon
which easements or rights-of-way have been obtained, by the
Central Valley Flood Protection Board for the purpose of flood
control, if the Department of Water Resources adopts, after
submission to and consultation with, the department, a reclamation
plan for lands affected by these activities, and those lands are
reclaimed in conformance with the standards specified in
regulations of the board adopted pursuant to this chapter. The
Department of Water Resources shall provide an annual report to
the department by the date specified by the department on these
mining activities.

(2) Nothing in this subdivision shall require the Department of
Water Resources or the Central Valley Flood Protection Board to
obtain a permit or secure approval of a reclamation plan from any
city or county in order to conduct surface mining operations
specified in paragraph (1). Nothing in this subdivision shall
preclude the bringing of an enforcement action pursuant to Section
2774.1, if it is determined that a surface mine operator, acting
under contract with the Department of Water Resources or the
Central Valley Flood Protection Board on lands other than those
owned or leased, or upon which easements or rights-of-way have
been obtained, by the Department of Water Resources or the
Central Valley Flood Protection Board, is otherwise not in
compliance with this chapter.

(j) (1) Excavations or grading for the exclusive purpose of
obtaining materials for roadbed construction and maintenance
conducted in connection with timber operations or forest
management on land owned by the same person or entity. This
exemption is limited to excavation and grading that is conducted
adjacent to timber operation or forest management roads and shall
not apply to onsite excavation or grading that occurs within 100
feet of a Class One watercourse or 75 feet of a Class Two
watercourse, or to excavation for materials that are, or have been,
sold for commercial purposes.

(2) This exemption shall be available only if slope stability and
erosion are controlled in accordance with subdivision (f) of Section
3704 and subdivision (d) of Section 3706 of Title 14 of the
California Code of Regulations and, upon closure of the site, the
person closing the site implements, where necessary, revegetation
measures and postclosure uses in consultation with the Department
of Forestry and Fire Protection.

(k) Excavations, grading, or other earthmoving activities in an
oil or gas field that are integral to and necessary for ongoing
operations for the extraction of oil or gas that comply with all of
the following conditions:

(1) The operations are being conducted in accordance with
Division 3 (commencing with Section 3000).

(2) The operations are consistent with any general plan or zoning
applicable to the site.

(3) The earthmoving activities are within oil or gas field
properties under a common owner or operator.

(4) No excavated materials are sold for commercial purposes.

(l) (1) The immediate excavation or grading of lands affected
by a natural disaster for the purpose of restoring those lands to
their prior condition.

(2) The immediate removal of material deposited by a flood
onto lands being farmed for the purpose of restoring those lands
to their prior condition.

begin delete

SEC. 5.  

Section 2770 of the Public Resources Code is amended
to read:

2770.  

(a) Except as provided in this section, a person shall not
conduct surface mining operations unless a permit is obtained
from, a reclamation plan has been submitted to and approved by,
and financial assurances for reclamation have been approved by
the lead agency for the operation pursuant to this article.

(b) A person with an existing surface mining operation who has
vested rights pursuant to Section 2776 and who does not have an
approved reclamation plan shall submit a reclamation plan to the
lead agency not later than March 31, 1988. If a reclamation plan
application is not on file by March 31, 1988, the continuation of
the surface mining operation is prohibited until a reclamation plan
is submitted to the lead agency.

(c) [Reserved]

(d) [Reserved]

(e) (1) A person who can substantiate, based on the evidence
of the record, that a lead agency has either (1) failed to act
according to due process or has relied on considerations not related
to the specific applicable requirements of Sections 2772, 2772.1,
2773, 2773.1, 2773.3, and 2773.4 and the lead agency surface
mining ordinance adopted pursuant to subdivision (a) of Section
2774 in reaching a decision to deny approval of a reclamation plan
or financial assurances for reclamation, or (2) failed to act within
a reasonable time of receipt of a completed application may appeal
that action or inaction to the board.

(2) The director may appeal a lead agency’s approval of a
financial assurance cost estimate to the board if the director has
commented pursuant to Section 2773.4 that the financial assurance
cost estimate is inadequate based on consideration of the following:

(A) Section 2773.1.

(B) Article 11 (commencing with Section 3800) of Title 14 of
the California Code of Regulations.

(C) The board’s financial assurance guidelines adopted pursuant
to subdivision (f) of Section 2773.1

(3) If the approved financial assurance cost estimate applies to
a reclamation plan approved for a new surface mining operation,
an expanded surface mining operation, or an interim financial
assurance due to an order to comply, stipulated or otherwise, the
operator shall provide a financial assurance mechanism pursuant
to subdivision (e) of Section 2773.4 in the amount of the approved
financial assurance cost estimate, notwithstanding an appeal filed
pursuant to this subdivision and subject to modification pending
the outcome of the appeal.

(4) If the approved financial assurance cost estimate is an update
to an existing approved financial assurance cost estimate, the
existing financial assurance mechanism shall remain in place and
shall not be adjusted until a final determination by the board on
the appeal filed pursuant to this subdivision.

(f) (1) The board may decline to hear an appeal if it determines
that the appeal raises no substantial issues related to the lead
agency’s decision to deny approval of a reclamation plan or
financial assurance or the timeliness in reviewing a completed
application. An appeal filed by the director shall be heard by the
board.

(2) If the board takes up an appeal, the appeal shall be scheduled
and heard at a public hearing within 45 days of the filing of the
appeal or a longer period may be mutually agreed upon by the
board, the appellant, and the operator or the board, the director,
and the operator.

(g) (1) (A) When hearing an appeal filed pursuant to
subdivision (e), the board shall determine whether the reclamation
plan or the financial assurance cost estimate substantially meets
the applicable requirements of Sections 2772, 2772.1, 2773, 2773.1,
2773.3, and 2773.4, and Article 1 (commencing with Section 3500),
Article 9 (commencing with Section 3700), and Article 11
(commencing with Section 3800) of Chapter 8 of Division 2 of
Title 14 of the California Code of Regulations, and the lead
agency’s surface mining ordinance adopted pursuant to subdivision
(a) of Section 2774. The board shall approve or uphold a
reclamation plan or financial assurance cost estimate determined
to meet those applicable requirements. In any event, the total
amount of financial assurances required for any one year shall not
exceed the amount necessary to perform reclamation of lands
remaining disturbed.

(B) For purposes of this subdivision, “substantially” means
actual compliance in respect to the substance and form
requirements essential to the objectives of this chapter.

(2) (A) A reclamation plan determined not to meet the
applicable requirements of Sections 2772, 2772.1, 2773, 2773.1,
2773.3, and 2773.4 and the lead agency’s surface mining ordinance
adopted pursuant to subdivision (a) of Section 2774 shall be
returned to the operator with a notice of deficiencies. The operator
shall be granted, once only, a period of 30 days or a longer period
mutually agreed upon by the operator and the board to do both of
the following:

(i) Correct the noted deficiencies.

(ii) Submit the revised reclamation plan to the lead agency for
review and approval.

(B) Within 10 days of the hearing, the board shall provide notice
via certified mail to the lead agency, the operator, and the
department of the board’s determination. The notice shall include
instructions to the operator to submit to the lead agency for
approval a revised reclamation plan consistent with the board’s
determination.

(3) (A) If the board determines the lead agency’s approved
financial assurance cost estimate does not meet the requirements
of Sections 2773.1 and 2773.4, and Article 11 (commencing with
Section 3800) of Chapter 8 of Division 2 of Title 14 of the
California Code of Regulations, and the board’s financial assurance
guidelines adopted pursuant to subdivision (f) of Section 2773.1,
the board shall note the deficiencies and, based on the record,
include adequate cost estimates for each noted deficiency.

(B) Within 10 days of the hearing, the board shall provide notice
via certified mail to the lead agency, the operator, and the
department of the board’s determination with instructions to the
operator to submit to the lead agency for approval a revised
financial assurance cost estimate consistent with the board’s
determination. The instructions shall include a reasonable
submission deadline of not less than 30 days.

(C) The lead agency shall approve the revised financial
assurance cost estimate. That approval shall supersede and void
the prior approved financial assurance cost estimate.

(D) A financial assurance mechanism shall be established by
the operator pursuant to subdivision (e) of Section 2773.4 following
the approval of the financial assurance cost estimate.

(E) The failure of the operator to submit to the lead agency a
revised financial assurance cost estimate consistent with the board’s
determination and deadline may be grounds for the issuance of an
order to comply pursuant to subdivision (a) of Section 2774.1.

(h) (1) Within 90 days of a surface mining operation becoming
idle, as defined in Section 2727.1, the operator shall submit to the
lead agency for review and approval an interim management plan.
The review and approval of an interim management plan shall not
be considered a project for purposes of the California
Environmental Quality Act (Division 13 (commencing with Section
21000)). The approved interim management plan shall be
considered an amendment to the surface mining operation’s
approved reclamation plan for purposes of this chapter. The interim
management plan shall provide measures the operator will
implement to maintain the site in compliance with this chapter,
including, but not limited to, all permit conditions.

(2) Except for an interim management plan for a borrow pit
surface mining operation owned or operated by the lead agency
solely for use by the lead agency, an interim management plan
may remain in effect for a period not to exceed five years, at which
time the lead agency shall do one of the following:

(A) Renew the interim management plan for an additional period
not to exceed five years, which may be renewed for one additional
five-year renewal period at the expiration of the first five-year
renewal period, if the lead agency finds that the surface mining
operator has complied fully with the interim management plan.

(B) Require the operator to commence reclamation in accordance
with its approved reclamation plan.

(3) The financial assurances required by Section 2773.1 shall
remain in effect during the period that the surface mining operation
is idle. If the surface mining operation is still idle after the
expiration of its interim management plan, the operator shall
commence reclamation in accordance with its approved reclamation
plan.

(4) Within 60 days of the receipt of the interim management
plan or a longer period mutually agreed upon by the lead agency
and the operator, the lead agency shall review and approve the
plan in accordance with its ordinance adopted pursuant to
subdivision (a) of Section 2774, so long as the plan satisfies the
requirements of this subdivision, and so notify the operator in
writing. Otherwise, the lead agency shall notify the operator in
writing of any deficiencies in the plan. The operator shall have 30
days, or a longer period mutually agreed upon by the operator and
the lead agency, to submit a revised plan.

(5) The lead agency shall approve or deny approval of the
revised interim management plan within 60 days of receipt. If the
lead agency denies approval of the revised interim management
plan, the operator may appeal that action to the lead agency’s
governing body, which shall schedule a public hearing within 45
days of the filing of the appeal or a longer period mutually agreed
upon by the operator and the governing body.

(6) Unless review of an interim management plan is pending
before the lead agency or an appeal is pending before the lead
agency’s governing body, a surface mining operation that remains
idle for over one year after becoming idle, as defined in Section
2727.1, without obtaining approval of an interim management plan
shall be considered abandoned and the operator shall commence
and complete reclamation in accordance with the approved
reclamation plan.

(7) If a lead agency owns or operates a borrow pit surface mining
operation that is solely for use by the lead agency, then all of the
following apply:

(A) The borrow pit surface mining operation is exempt from
the requirements of this subdivision.

(B) The lead agency shall maintain financial assurances while
the borrow pit surface mining operation is idle.

(C) The lead agency may obtain an interim management plan
for the borrow pit surface mining to comply with subdivision (b)
of Section 2772. That interim management plan shall not expire.

(i) An enforcement action that may be brought against a surface
mining operation for operating without an approved reclamation
plan, financial assurance, or interim management plan shall be
held in abeyance pending review pursuant to subdivision (h), or
the resolution of an appeal filed with the board pursuant to
subdivision (e), or with a lead agency governing body pursuant to
subdivision (h).

(j) Notwithstanding paragraph (1) of subdivision (b) of Section
2774, a lead agency may inspect every two years a borrow pit
surface mining operation that is solely for use by the lead agency
while that surface mining operation is idle.

SEC. 6.  

Section 2772 of the Public Resources Code is amended
to read:

2772.  

(a) The reclamation plan shall be filed with the lead
agency, on a form provided by the lead agency, by any person who
owns, leases, or otherwise controls or operates on all or any portion
of any mined lands and who plans to conduct surface mining
operations on the lands.

(b) In addition to the other requirements for a reclamation plan
set forth in this section, a reclamation plan for a borrow pit surface
mining operation owned or operated by the lead agency solely for
use by the lead agency shall include maintenance measures that
become effective when the borrow pit surface mining operation
is idle.

(c) The reclamation plan shall include all of the following
information and documents:

(1) The name and address of the operator and the names and
addresses of any persons designated by the operator as an agent
for the service of process.

(2) The anticipated quantity and type of minerals for which the
surface mining operation is to be conducted.

(3) The proposed dates for the initiation and termination of the
surface mining operation.

(4) The maximum anticipated depth of the surface mining
operation.

(5) A reclamation plan map or maps that shall include all of the
following:

(A) Size and legal description of the lands that will be affected
by the surface mining operation and the names and addresses of
the owners of all surface interests and mineral interests in the lands.

(B) Clearly defined and accurately drawn property lines,
setbacks, easements, and the reclamation plan boundary.

(C) Existing topography and final topography depicted with
contour lines drawn at appropriate intervals for the site’s
conditions.

(D) Detailed geologic description of the area of the surface
mining operation.

(E) Location of railroads, utility facilities, access roads,
temporary roads to be reclaimed, and any roads remaining for the
approved end use.

(F) All maps, diagrams, or calculations that require preparation
in accordance with the Professional Engineers Act (Chapter 7
(commencing with Section 6700) of Division 3 of the Business
and Professions Code), the Geologist and Geophysicist Act
(Chapter 12.5 (commencing with Section 7800) of Division 3 of
the Business and Professions Code), or the Professional Land
Surveyors’ Act (Chapter 15 (commencing with Section 8700) of
Division 3 of the Business and Professions Code) shall be prepared
by an appropriately licensed California-licensed professional, shall
include his or her license number and name, and shall bear the
signature and seal of the licensee.

(6) A description of and a plan for the type of surface mining
to be employed and a time schedule that will provide for the
completion of surface mining on each segment of the mined lands
so that reclamation can be initiated at the earliest possible time on
those portions of the mined lands that will not be subject to further
disturbance by the surface mining operation.

(7) A description of the proposed use or potential uses of the
mined lands after reclamation and evidence that all owners of a
possessory interest in the land have been notified of the proposed
use or potential uses.

(8) A description of the manner in which reclamation, adequate
for the proposed use or potential uses, will be accomplished,
including both of the following:

(A) A description of the manner in which known contaminants
will be controlled and mining waste will be disposed.

(B) A description of the manner in which affected streambed
channels and streambanks will be rehabilitated to a condition that
minimizes erosion and sedimentation.

(9) An assessment of the effect of implementation of the
reclamation plan on future mining in the area.

(10) A statement that the person submitting the reclamation
plan accepts responsibility for reclaiming the mined lands in
accordance with the reclamation plan.

(11) Any other information that the lead agency may require
by ordinance.

(12) A chart identifying the page number, chapter, appendix,
or other specific location in the reclamation plan where content
meeting the requirements, as applicable, of Sections 2772, 2773,
and 2773.3 and Article 1 (commencing with Section 3500) and
Article 9 (commencing with Section 3700) of Chapter 8 of Division
2 of Title 14 of the California Code of Regulations is located.

(d) An item of information or a document required pursuant to
subdivision (c), that has already been prepared as part of a permit
application for the surface mining operation, or as part of an
environmental document prepared for the project pursuant to the
California Environmental Quality Act (Division 13 (commencing
with Section 21000)) may be included in the reclamation plan by
reference, if that item of information or that document is attached
to the reclamation plan when the lead agency submits the
reclamation plan to the director for review. To the extent the
information, document, or component of a document referenced
in the reclamation plan is used to meet the requirements of
subdivision (c) or Section 2773 or 2773.3, the information,
document, or component of a document shall become part of the
reclamation plan and shall be subject to all other requirements of
this article.

(e) This section does not limit or expand the Supervisor of Mines
and Reclamation’s authority or responsibility to review a document
in accordance with the California Environmental Quality Act
(Division 13 (commencing with Section 21000)).

end delete

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 2770.1 is added to the end insert begin insert Public Resources Code end insert begin insert ,
to read: end insert

begin insert

begin insert 2770.1. end insert   

For the purposes of a borrow pit surface mining
operation that is owned or operated by a lead agency solely for
use by that lead agency, all of the following shall apply:

(a) (1) In addition to the requirements of Sections 2772 and
2773, the lead agency shall include in its reclamation plan
maintenance measures that become effective when the borrow pit
surface mining operation is idle. The maintenance measures shall
maintain the site in compliance with this chapter while the borrow
pit surface mining operation is idle.

(2) Notwithstanding paragraph (1), a lead agency may obtain
an interim management plan pursuant to subdivision (h) of Section
2770.

(3) A lead agency that complies with this subdivision shall be
exempt from the requirements of paragraph (6) of subdivision (h)
of Section 2770.

(b) Notwithstanding paragraph (2) of subdivision (h) of Section
2770, an interim management plan for a borrow pit surface mining
operation may remain in effect until reclamation of the borrow pit
surface mining operation is completed in accordance with the
approved reclamation plan.

(c) Notwithstanding subdivision (b) of Section 2774, a lead
agency may conduct an inspection of a borrow pit surface mining
operation once every two calendar years during a period when
the borrow pit surface mining operation is idle.

end insert

begin delete SEC. 7. end delete
begin insert SEC. 6. end insert   

Section 2773.1.5 is added to the Public Resources
Code, to read:

2773.1.5.  

(a) Notwithstanding subdivision (e) of Section
2773.1, a financial assurance mechanism may include corporate
financial tests combined with surety bonds, irrevocable letters of
credit, or trust funds, as described in this section, that together
ensure the completion of reclamation in accordance with the
approved reclamation plan.

(b) (1)  Corporate financial tests shall only be allowed after the
board adopts a regulation that establishes a comprehensive analysis
and test of a corporation’s financial status that includes, but is not
limited to, all of the following:

(A) A minimum financial net worth of at least thirty-five million
dollars ($35,000,000), adjusted annually to reflect changes in the
Consumer Price Index, as calculated by the United States Bureau
of Labor Statistics.

(B) Income.

(C) Liabilities, including other environmental assurances.

(D) Assets located within the United States.

(2)  The regulation also shall include, but need not be limited
to, all of the following:

(A) Additional measures to provide the lead agency or the
director with the recovery of costs associated with the full
collection and satisfaction of the financial assurance mechanisms.

(B) Requirements for corporate financial tests that include, but
are not limited to, all of the following:

(i) Provide for no more than 75 percent of the financial assurance
cost estimate approved within the last year.

(ii) Be annually approved by both the lead agency and the
director.

(iii) Be able to be disallowed by either the lead agency or the
director.

(iv) Include an assessment from an independent certified public
accountant using generally accepted accounting principles in the
United States.

(c)  Each surface mining operation shall have at least 25 percent
of the financial assurance cost estimate in an acceptable financial
assurance mechanism other than a corporate financial test if a
qualifying corporation operates multiple surface mining operations.

(d) Subject to the requirements of this subdivision, an operator
of multiple surface mining operations may use a corporate financial
test that combines the financial assurance cost estimates of each
surface mining operation.

begin delete

SEC. 8.  

Section 2774 of the Public Resources Code is amended
to read:

2774.  

(a) Every lead agency shall adopt ordinances in
accordance with state policy that establish procedures for the
review and approval of reclamation plans and financial assurances
and the issuance of a permit to conduct surface mining operations,
except that any lead agency without an active surface mining
operation in its jurisdiction may defer adopting an implementing
ordinance until the filing of a permit application. The ordinances
shall establish procedures requiring at least one public hearing and
shall be periodically reviewed by the lead agency and revised, as
necessary, to ensure that the ordinances continue to be in
accordance with state policy.

(b) (1) The lead agency shall cause surface mining operations
to be inspected in intervals of no more than 12 months, solely to
determine whether the surface mining operation is in compliance
with this chapter. The lead agency shall cause an inspection to be
conducted by a state-licensed geologist, state-licensed civil
engineer, state-licensed landscape architect, state-licensed forester,
or a qualified lead agency employee who has not been employed
by the surface mining operation being inspected in any capacity
during the previous 12 months, except that a qualified lead agency
employee may inspect surface mining operations conducted by
the local agency. All inspections shall be conducted using a form
developed by the department and approved by the board that
includes the professional licensing and disciplinary information
of the person who conducted the inspection. The operator shall be
solely responsible for the reasonable cost of the inspection. The
lead agency shall provide a notice of completion of inspection to
the director within 90 days of conducting the inspection. The notice
shall contain a statement regarding the surface mining operation’s
compliance with this chapter and a copy of the completed
inspection form, and shall specify, as applicable, all of the
following:

(A) Aspects of the surface mining operation, if any, that were
found to be inconsistent with this chapter but were corrected before
the submission of the inspection form to the director.

(B) Aspects of the surface mining operation, if any, that were
found to be inconsistent with this chapter but were not corrected
before the submission of the inspection form to the director.

(C) A statement describing the lead agency’s intended response
to any aspects of the surface mining operation found to be
inconsistent with this chapter but were not corrected before the
submission of the inspection form to the director.

(2) If the surface mining operation has a review of its
reclamation plan, financial assurances, or an interim management
plan pending under subdivision (h) of Section 2770, or an appeal
pending before the board or lead agency governing body under
subdivision (e) or (h) of Section 2770, the notice shall so indicate.
The lead agency shall forward to the operator a copy of the notice,
a copy of the completed inspection form, and any supporting
documentation, including, but not limited to, any inspection report
prepared by the geologist, civil engineer, landscape architect,
forester, or qualified lead agency employee who conducted the
inspection.

(c) If an operator does not request an inspection date on the
annual report filed pursuant to Section 2207 or if the lead agency
is unable to cause the inspection of a given surface mining
operation on the date requested by the operator, the lead agency
shall provide the operator with a minimum of five days’ written
notice of a pending inspection or a lesser time period if agreed to
by the operator.

(d) No later than July 1 of each year, the lead agency shall
submit to the director for each active or idle surface mining
operation within the lead agency’s jurisdiction the following
information:

(1) A copy of any permit or reclamation plan amendments, as
applicable.

(2) A statement that there have been no changes during the
previous year, as applicable.

(3) The date of each surface mining operation’s last inspection.

(4) The date of each surface mining operation’s last financial
assurance review pursuant to Section 2773.1 for each operation
listed.

(e) (1) No later than December 31, 2016, the department shall
establish a training program for all surface mine inspectors. The
program shall be designed to include a guidance document,
developed by the department, in consultation with the board and
stakeholders, to provide instruction and recommendations to
surface mine inspectors performing inspections pursuant to
subdivision (b).

(2) The training program shall include inspections workshops
offered by the department in different regions of the state to provide
practical application of the guidance document material.

(3) On and after July 1, 2019, all inspectors shall have on file
with the lead agency and the department a certificate of completion
of an inspection workshop. An inspector shall attend a workshop
no later than five years after the date of his or her most recent
certificate.

(4) The adoption of the guidance document by the department
pursuant to this subdivision shall be subject to the requirements
of the Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code).

end delete

begin delete SEC. 9. end delete
begin insert SEC. 7. end insert   

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
a local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act, within the meaning of Section
17556 of the Government Code.

begin delete SEC. 10. end delete
begin insert SEC. 8. end insert   

This act shall become operative only if both this bill
and Assembly Bill 1142 of the 2015-16 Regular Session are
enacted and become operative on or before January 1, begin delete 2016. end delete begin insert 2017. end insert