BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON NATURAL RESOURCES AND WATER
                                Senator Pavley, Chair
                                 2015 - 2016 Regular

          Bill No:            SB 209
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          |Author:   |Pavley                                                |
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          |Version:  |March 19, 2015         |Hearing    |March 24, 2015   |
          |          |                       |Date:      |                 |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|William Craven                                        |
          |:         |                                                      |
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           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  







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          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; 








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          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








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          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


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