BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 209|
          |Office of Senate Floor Analyses   |                              |
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                                   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  








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            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.







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          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  







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            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. 







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          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


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