BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 637| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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: SB 637 Page 2 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. SB 637 Page 3 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 SB 637 Page 4 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 SB 637 Page 5 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 SB 637 Page 6 authorized recipient. Prepared by:William Craven / N.R. & W. / (916) 651-4116 6/2/15 21:19:20 **** END ****