BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 209| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: SB 209 Author: Pavley (D) Amended: 5/12/15 Vote: 21 SENATE NATURAL RES. & WATER COMMITTEE: 7-2, 3/24/15 AYES: Pavley, Allen, Hertzberg, Hueso, Jackson, Monning, Wolk NOES: Stone, Fuller SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/26/15 AYES: Lara, Beall, Hill, Leyva, Mendoza NOES: Bates, Nielsen SUBJECT: Surface mining: inspections and financial assurances SOURCE: Sierra Fund DIGEST: This bill establishes the Division of Mines within the Department of Conservation (Department) under the direction of the State Mine Inspector, and establishes new criteria for mine inspections. ANALYSIS: Existing law: 1)Enacts the Surface Mining and Reclamation Act (SMARA) which 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 SB 209 Page 2 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. 2)Requires, under SMARA, 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. 3)Provides 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 actions. In addition, the Board promulgates SMARA regulations and serves as an appeals body. This bill: 1)Prohibits the financial assurance mechanism from being reduced or released without mutual written consent of the local lead agency and the Department. 2)Clarifies that the financial assurance mechanism together with the financial assurance cost estimate, combined, will be known as the financial assurances for a mining operation. Financial assurances, under existing law, may be updated annually as determined by the annual inspection. 3)Elevates the Office of Mine Reclamation into a new division at the Department and establishes the head of that office as the State Mine Inspector. 4)Requires that those parts of annual inspections that constitute areas of professional practice will be conducted by a state licensed geologist, state licensed civil engineer, or state licensed geophysicist. SB 209 Page 3 5)Requires the Department to offer mine inspection training to local lead agencies. 6)Establishes a requirement for a uniform reclamation plan form to include a schedule with time limits for completing reclamation, to be reviewed and confirmed by the lead agency during the annual inspections. 7)States legislative intent on several of the issues identified by the administration as part of the ongoing stakeholder process, including allowing counties to inspect their own borrow pits and the training necessary to inspect their own mines. Comments This year the Administration has convened a stakeholder process to consider legislative recommendations for reforms to SMARA. This bill currently contains a handful of minor amendments to SMARA, but is intended to be a vehicle for the recommendations of the stakeholder process. The list of questions that the Administration has proposed includes, but is not limited to: 1)Centralized location of all the documents pertaining to reclamation; 2)Updating reclamation plans to reflect 1993 standards; 3)Possible sign-off on reclamation plans by a licensed professional in which slope stability or other issues within the scope of professional practice is an issue; 4)Approval by local governments of inadequate financial assurances; expedite the process to claim financial assurances; avoid early release of financial assurances prior SB 209 Page 4 to reclamation; 5)How to improve compliance with the requirement for annual inspections and how to increase training for lead agency mine inspectors; 6)More clarity on enforcement and the initiation of enforcement; role of state as back-stop; 7)Assess other options than Board take-over of counties; and 8)Consider adjustments to fees, which are set in statute but inadequate to fund needs. Additionally, there is about $300,000 in unpaid reporting fees. In Senate Appropriations Committee, the author deleted the provision that would have allowed counties to opt-out of their lead agency status to implement SMARA, and she agreed to amend the bill in the Assembly to re-phrase the continuing education provisions that would be provided to counties by not using the word "certified" to describe county employees who receive the training. Aspects of SB 1270 (Pavley, 2014) which failed in the Legislature last year are present in this bill as well. In 2013, Governor Brown signed SB 447 (Lara, Chapter 417, Statutes of 2013) which provided temporary leniency to mine operators who, despite a SMARA violation that was addressed by an order to comply, were allowed to continue selling materials to the state. Governor Brown said in his signing message for SB 447 that such interim leniency was acceptable "as we take time to reform the Surface Mining and Reclamation Act-from top to bottom." FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Senate Appropriations Committee: Minor and absorbable costs to the Mine Reclamation Account (special) for the Board to develop a standard for reclamation plans. Minor and absorbable costs to the Mine Reclamation Account (special) for the Department to offer inspection training opportunities. SB 209 Page 5 SUPPORT: (Verified 5/26/15) Sierra Fund (source) California League of Conservation Voters Claim-GV Clean Water Action Endangered Habitats League San Juan Ridge Taxpayers Association Wolf Creek Community Association OPPOSITION: (Verified5/26/15) Rural County Representatives of California ARGUMENTS IN SUPPORT: According to the coalition headed by the sponsor, The Sierra Fund, the state has a strong interest in ensuring the mine operations in the state are operated in compliance with its locally issued permit which protects the state's water and air from contamination, and to ensure that when the mine ceases operation that it is remediated to be ready for a beneficial end use. The coalition is participating in the ongoing stakeholder process and recognizes Governor Brown's call to reform SMARA "top to bottom." ARGUMENTS IN OPPOSITION: Rural County Representatives of California considers the restrictions on those who may inspect mines to be overly restrictive and it would like counties to be able to inspect the mines it owns, both of which are ongoing topics of the stakeholder process. Prepared by:William Craven / N.R. & W. / (916) 651-4116 5/27/15 14:37:29 **** END **** SB 209 Page 6