BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                        SB 637|
          |Office of Senate Floor Analyses   |                              |
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                                    THIRD READING


          Bill No:  SB 637
          Author:   Allen (D)
          Amended:  6/2/15  
          Vote:     21  

           SENATE NATURAL RES. & WATER COMMITTEE:  6-1, 4/14/15
           AYES:  Pavley, Allen, Hueso, Jackson, Monning, Wolk
           NOES:  Stone
           NO VOTE RECORDED:  Fuller, Hertzberg

           SENATE ENVIRONMENTAL QUALITY COMMITTEE:  5-2, 4/29/15
           AYES:  Wieckowski, Hill, Jackson, Leno, Pavley
           NOES:  Gaines, Bates

           SENATE APPROPRIATIONS COMMITTEE:  5-2, 5/28/15
           AYES:  Lara, Beall, Hill, Leyva, Mendoza
           NOES:  Bates, Nielsen

           SUBJECT:   Suction dredge mining:  permits


          SOURCE:    The Sierra Fund


          DIGEST:  This bill establishes criteria for permits for suction  
          dredge mining by the Department of Fish and Wildlife  
          (department) and the State Water Resources Control Board  
          (SWRCB). 


          ANALYSIS:   










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          Existing law:


          1)Requires the department to issue a permit, if the department  
            determines that the use of a vacuum or suction dredge will not  
            be deleterious to fish, upon the payment of a specified fee. 

          2)Designates the issuance of permits to operate vacuum or  
            suction dredge equipment to be a project under the California  
            Environmental Quality Act and suspends the issuance of permits  
            and mining pursuant to a permit until the department has  
            completed an environmental impact report for the project as  
            ordered by the court in a specified court action. 

          3)Existing law prohibits the use of any vacuum or suction dredge  
            equipment in any river, stream, or lake of this state until  
            the Director of Fish and Wildlife makes a prescribed  
            certification to the Secretary of State, including certifying  
            that new regulations fully mitigate all identified significant  
            environmental impacts and that a fee structure is in place  
            that will fully cover all costs to the department related to  
            the administration of the program.

          4)Provides that the SWRCB and the California regional water  
            quality control boards prescribe waste discharge requirements  
            in accordance with the Federal Water Pollution Control Act and  
            the Porter-Cologne Water Quality Control Act (state act). The  
            state act, with certain exceptions, requires a waste  
            discharger to file certain information with the appropriate  
            regional board and to pay an annual fee. The state act  
            additionally requires a person, before discharging mining  
            waste, to submit to the regional board a report on the  
            physical and chemical characteristics of the waste that could  
            affect its potential to cause pollution or contamination and a  
            report that evaluates the potential of the mining waste  
            discharge to produce acid mine drainage, the discharge or  
            leaching of heavy metals, or the release of other hazardous  
            substances.

          This bill:


          1)Prohibits the department from issuing permits for suction  
            dredge mining. 







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          2)Authorizes the department, after the certification pursuant to  
            Section 5653.1 is made, to issue permits when an application  
            is deemed complete, a determination that includes any permit  
            required under the federal Clean Water Act and California  
            water law.


          3)Provides that if the state or regional water board determines  
            that no water quality or water rights permit is needed, such  
            determination would become a part of the permit determination  
            made by the department. 

          4)Provides that if the state or regional water board determines  
            that a waste discharge report (permit) is authorized, but not  
            required, to address water quality impacts of:

             a)   Mercury loading to downstream reaches of surface water  
               bodies; 
             b)   Methylmercury formation in water bodies; 
             c)   Bioaccumulation of mercury in aquatic organisms; and
             d)   Resuspension of metals. 

            The appropriate water board will also have authority to  
            specify conditions or areas where the discharge of waste from  
            suction dredge mining is prohibited, consistent with existing  
            law, and to prohibit any particular methods of suction dredge  
            mining that it determines would cause or contribute to  
            violations of water quality objectives or unreasonably effect  
            beneficial uses of water. 


          5)Defines suction dredges as equipment that contains any of the  
            following: 


             a)   A hose that vacuums sediment from a waterway; 
             b)   A motorized pump; 
             c)   A motorized sluice box. 

          Background


          The moratorium on permits was caused, in part, by litigation and  







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          subsequent legislation that required an environmental impact  
          report and regulations that would fully mitigate all identified  
          significant environmental effects as well as a fee structure  
          that would fully cover the department's costs to administer this  
          program. This history is recounted in the findings in Section 1  
          of this bill. The moratorium would remain in effect until the  
          director certifies to the Secretary of State that the conditions  
          in Section 5653.1 of the Fish and Game Code have been satisfied.  



          The department's environmental review concluded, in part, that  
          it did not have regulatory authority to address the impacts of  
          suction mining that were instead within the jurisdiction of the  
          SWRCB. 


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No

          According to the Senate Appropriations Committee:

           A minimum of $450,000 to $600,000 annually for the first two  
            years from Waste Discharge Permit Fund (special fund) to the  
            SWRCB to develop the permit. 

           Unknown ongoing costs to the Waste Discharge Permit Fund  
            (special fund) to the SWRCB to administer the permit.

           Unknown one-time costs likely in the hundreds of thousands of  
            dollars from the Safe Drinking Water Account to the SWRCB to  
            update other related regulations to allow the discharge of  
            mercury.

          SUPPORT:   (Verified  5/29/15)

          The Sierra Fund (source)
          Central Sierra Environmental Resource Center
          Clean Water Action 
          Defenders of Wildlife
          Karuk Tribe
          Klamath Forest Alliance
          Klamath Riverkeeper
          Sierra Nevada Alliance







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          South Yuba River Citizens League
          Yurok Tribe


          OPPOSITION:   (Verified 5/29/15)




          Western Mining Alliance


          ARGUMENTS IN SUPPORT: Clean Water Action supports this bill in  
          order to enable the SWRCB to use its existing regulatory  
          authority under the federal Clean Water Act to permit suction  
          dredge mining activities in order to ensure that the discharge  
          from those operations does not degrade the water quality of  
          California surface water. 

          The Sierra Nevada Alliance, a coalition of 85 groups in the  
          Sierra, points out that research commissioned by the SWRCB shows  
          that the plume of water that comes from suction dredges does not  
          meet state water quality standards. 

          The Sierra Fund states that the legislative moratorium was based  
          on a rigorous, scientific evaluation of the impacts of suction  
          dredge mining. It states that the SWRCB can use its existing  
          regulatory structure to ensure mitigation of impacts prior to  
          the issuance of a permit by the department. 

          ARGUMENTS IN OPPOSITION:  The Western Mining Alliance conveyed  
          the following major points: 

          1)The vast majority of suction dredge miners are not wealthy and  
            that a new permitting process may be too expensive and price  
            these individuals out of this activity. 

          2)Miners disagree with the assertion that their activity  
            transforms elemental mercury into methyl mercury or that  
            mercury levels in California rivers are unsafe. 

          3)Miners in fact remove mercury (and lead from ammunition and  
            fishing weights) from streams. As for mercury, miners would  
            welcome a way to lawfully transfer the mercury to an  







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            authorized recipient. 


          Prepared by:William Craven / N.R. & W. / (916) 651-4116
          6/2/15 21:19:20


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