BILL ANALYSIS Ó SENATE COMMITTEE ON NATURAL RESOURCES AND WATER Senator Pavley, Chair 2015 - 2016 Regular Bill No: SB 209 ----------------------------------------------------------------- |Author: |Pavley | ----------------------------------------------------------------- |----------+-----------------------+-----------+-----------------| |Version: |March 19, 2015 |Hearing |March 24, 2015 | | | |Date: | | |----------+-----------------------+-----------+-----------------| |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|William Craven | |: | | ----------------------------------------------------------------- Subject: Surface mining: inspections and financial assurances. BACKGROUND AND EXISTING LAW The Surface Mining and Reclamation Act (SMARA) 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. Most often, the lead agency is a local city or county government, but there are instances in which the Bay Conservation and Development Commission is the lead agency for mines in the Bay Area. Also, in cases in which the California State Mining and Geology Board (Board) has stripped a local agency of its lead agency status for its failure to implement state law, the Board serves as the lead agency. SMARA also requires annual inspections by the lead agency to ascertain that the mine is in compliance with state law. Adjustments may then be made, if necessary, to the amount of financial assurances needed for reclamation, or an amendment to a reclamation plan may be pursued by the operator where appropriate in the light of changed physical circumstances of the mine. SMARA is meant to be a comprehensive surface mining and reclamation policy that ensures an adequate supply of mineral resources while protecting the environment from the adverse effects of mining. The Office of Mine Reclamation, which is within the Department, ensures that lead agencies fulfill their SMARA responsibilities, often taking its own enforcement SB 209 (Pavley) Page 2 of ? actions. In addition, the State Mining and Geology Board promulgates SMARA regulations and serves as an appeals body. Aspects of SB 1270 (Pavley) which failed in the Legislature last year are present in this bill as well. In 2013, Governor Brown signed SB 447 (Lara) which provided temporary leniency to mine operators who, despite a SMARA violation, were allowed to continue selling materials to the state. Governor Brown said that such interim lenience was acceptable "as we take time to reform the Surface Mining and Reclamation Act-from top to bottom." The following year, the administration convened a SMARA task force which made a series of recommendations and many of those recommendations were contained in SB 1270. This year, the administration has convened a stakeholder process to consider legislative recommendations for SMARA reforms. It held its first meeting last week. The list of questions that the administration proposes to focus has considerable overlap with the issues contained in SB 1270 and SB 209, although SB 209 remains very much a work in progress. These include, but are not limited to: Ïcentralized location of all the documents pertaining to reclamation; Ïupdating reclamation plans to reflect 1993 standards; Ïpossible sign-off on reclamation plans by a licensed professional in which slope stability is an issue; Ïapproval by local governments of inadequate financial assurances; expedite the process to claim financial assurances; avoid early release of financial assurances prior to reclamation; Ïfailure to conduct annual inspections, increase training for lead agency mine inspectors, retain ability of local government to inspect the mines it owns; Ïmore clarity on enforcement, initiation of enforcement; role of state as back-stop; Ïassess other options than Board take-over of counties; how to return lead agency status to local government; consider if local governments should be able to voluntarily opt out of lead agency status; sort through fiscal issues associated with these options; SB 209 (Pavley) Page 3 of ? Ïconsider adjustments to fees, which are set in statute but inadequate to fund needs. Additionally, there is about $300,000 in unpaid reporting fees. PROPOSED LAW As amended, SB 209 has the following provisions: 1. Re-instate the training by the department of local government mine inspectors. 2. Establish conditions under which a local government employee who has been trained is able to inspect mines owned by that local government. 3. For other annual inspections, require that they be conducted by a registered professional geologist, geophysicist, or civil engineer when they involve the professional practice of geology or engineering. 4. Shift the Office of Mine Reclamation to a Division of Mines, headed by a new officer, the State Mine Inspector. 5. Add to the annual inspection requirements that proof of the most recenty approved financial assurance cost amount and the approved financial assurance cost mechanism be provided. 6. Standardize the format for reclamation plans as directed by the Board. 7. Add a schedule with time limits for reclamation that can be confirmed during an annual inspection. 8. Allow local governments to voluntarily opt out of SMARA. ARGUMENTS IN SUPPORT The Sierra Fund, the bill's sponsor, is particularly interested in issues related to improving annual inspections so that the related components of SMARA, financial assurances and reclamation plans, are also more likely to be in compliance. This group has also suggested to the administration's stakeholder process that licensed professionals be required to approve reclamation plans. It also observed that research done by this committee prior to the introduction of SB 1270 showed erratic implementation of SMARA across many local jurisdictions, as well as at the department. ARGUMENTS IN OPPOSITION None received. COMMENTS SB 209 (Pavley) Page 4 of ? This bill is clearly a work in progress that will respectfully track the ongoing stakeholder discussions and the issues raised by the administration. The recent amendments are placeholders that indicate there will be future work done on those topics. Related legislation: AB 1142(Gray) would amend many sections of SMARA. SUPPORT The Sierra Fund OPPOSITION None Received -- END --