BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 209  


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          Date of Hearing:  August 19, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          SB 209  
          (Pavley) - As Amended August 17, 2015


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:


          This bill revises the Surface Mining and Reclamation Act of 1975  
          (SMARA), renames the Office of Mine Reclamation to instead be  
          the Division of Mines, and creates the Supervisor of Mines and  








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          Reclamation to direct the Division.  Specifically, this bill:


             1)   Increases the maximum reporting fee for any single  
               mining operation from $4,000 to $10,000 annually over a  
               three year period. Increases the total allowable revenue  
               generated by the reporting fees from $3,500,000 to  
               $8,000,000 annually.


             2)   Requires each surface mining operation to have financial  
               assurance mechanisms, as defined. Prohibits the release of  
               the mechanisms unless there is written consent from the  
               lead agency and the Department of Conservation (DOC).   
               Requires subsequent operators of surface mining operations  
               to post a mechanism within 30 days of transfer of  
               operation.


             3)   Creates a new process to review reclamation plans,  
               including that the lead agency must provide the Director  
               with a complete reclamation plan for the Director to  
               review.  Requires the lead agency to respond to the  
               Director's comments and either describe how they plan to  
               adopt the comment, or reasons why they will not adopt the  
               comment.  


             4)   Requires DOC and the California State Mining and Geology  
               Board (Board) to adopt regulations that set minimum  
               qualifications for a person conducting an inspection of a  
               surface mining operation and provide a training program for  
               all surface mine inspectors.  


             5)   Allows a lead agency employee to inspect surface mining  
               operations that are owned by the local agency.










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             6)   Requires the lead agency, among other things, to combine  
               the notice of violations with an order to comply if the  
               violation cannot be corrected within 30 days. Allows an  
               order to comply to take effect without a hearing if the  
               operator does not request one. Allows an order to comply to  
               include administrative penalties of not more than $5,000  
               per day from the original date of noncompliance. 


             7)   Requires the Board to either have the lead agency  
               develop a remedial plan or exercise some or all of a lead  
               agency's powers under SMARA, except for permitting or  
               vested rights determinations, if the lead agency fails to  
               implement the law. Requires the Board to conduct a public  
               hearing to determine if the lead agency has corrected it  
               implementation and enforcement of SMARA and requires it to  
               restore some or all of its powers if it has taken  
               corrective actions.


          FISCAL EFFECT:


          The administrative fee increase authorized in the bill will  
          result in an estimated increase in revenue between $3.6 million  
          and $6.2 million (special fund).  The actual revenue increase  
          will depend upon how the State Mining and Geology Board (SMGB)  
          calculate fees for different operations. The statute requires  
          that SMGB set fees on an equitable basis reflecting the size and  
          type of operation.


          COMMENTS:


          1)Rationale.  The Governor called for a top to bottom review of  
            SMARA. Multiple stakeholder group meetings were held and  
            continue to discuss the administration's concerns with SMARA.  
            Issues that are under discussion include:








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             a)   Meaningful reclamation of disturbed mine lands;
             b)   Adequate financial assurance; 


             c)   Reclamation must be complete before financial assurances  
               are released.


             d)   Financial assurance may be used for reclamation if the  
               mine owner does not reclaim the mine; 


             e)   Annual, quality inspections of every mine occur;


             f)   When inspectors find non-compliance enforcement is  
               clear, timely, and meaningful;


             g)   The Board has tools to improve local SMARA  
               implementation;


             h)   Reporting fees and penalties are paid by operators and  
               fees cover the cost of the program; and


             i)   Inappropriate exemptions from SMARA are eliminated.


            This bill is a product of the Governor's stakeholder meetings.


          2)Background.   There are over a thousand active mines in  
            California that remove aggregate for building material,  
            metals, and minerals. Unlike any other state, most surface  
            mines in California are regulated by local government  








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            agencies.  


            The Surface Mining and Reclamation Act of 1975 (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.


            Mining operators are required, under SMARA, to develop and  
            implement reclamation plans, which will return the mine to a  
            condition where it can be used for another purpose after the  
            mining operation is complete.  DOC and the Board oversee lead  
            agency permitting, inspection and enforcement actions.


          3)Related Legislation.  AB 1142 (Gray) makes numerous changes to  
            the Surface Mining and Reclamation Act of 1975 (SMARA). This  
            bill is pending in Senate Appropriations.



          Analysis Prepared by:Jennifer Galehouse / APPR. / (916)  
          319-2081