BILL ANALYSIS Ó
SB 209
Page 1
Date of Hearing: August 19, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 209
(Pavley) - As Amended August 17, 2015
-----------------------------------------------------------------
|Policy |Natural Resources |Vote:|7 - 1 |
|Committee: | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| | | | |
| | | | |
| | | | |
-----------------------------------------------------------------
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
SB 209
Page 2
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.
SB 209
Page 3
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:
SB 209
Page 4
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
SB 209
Page 5
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