BILL ANALYSIS Ó
SB 637
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Date of Hearing: August 19, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
SB 637
(Allen) - As Amended July 7, 2015
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Urgency: No State Mandated Local Program: NoReimbursable: No
SUMMARY:
This bill prohibits the Department of Fish and Wildlife (DFW)
from issuing a permit for suction dredge mining until the
application is complete as specified. Specifically, this bill:
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1)Requires any application to include copies of all required
permits including those required under the Federal Water
Pollution Control Act, the Water Code, and any other permit
required to fully mitigate significant environmental impacts.
If the State Water Resources Control Board (SWRCB) or regional
water quality control board determines a permit is not
required, the application must include a letter of
determination from the executive director as specified.
2)Requires DFW to issue the permit if it determines the use of a
vacuum or suction dredge does not cause any significant
effects to fish and wildlife.
3)Authorizes DFW to increase suction dredge permit fees to cover
all reasonable regulatory costs.
Additionally, this bill authorizes SWRCB or regional board,
after conducting public hearings and workshops, to:
1)Adopt waste discharge requirements to address the water
quality impacts of mercury and metals as specified.
2)Specify conditions or areas in which the discharge of waste
from section dredge mining is prohibited.
3)Prohibit methods of section dredge mining determined to
contribute to an exceedance of applicable water quality
standards or unreasonably impact beneficial water uses.
FISCAL EFFECT:
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1)Increased fee authority for DFW to cover all reasonable costs
of regulating suction dredge mining activities. Although DFW
is not issuing section dredging permits, the current fee
levels are as follows:
Suction Dredge Permit - $50.75 (resident); 200 (nonresident)
Suction Dredge Permit Investigation - $260.50 (resident);
$440.25 (nonresident ).
Currently, DFW may adjust the fees based on changes in the
Implicit Price Deflator for State and Local Government
Purchases of Goods and Services, as published by the United
States Department of Commerce. This bill, instead, allows DFW
to adjust fees based on reasonable costs.
2)Increased costs of approximately $420,000 annually for two
years for SWRCB to develop water quality permit conditions for
suction dredge mining (Waste Discharge Permit Fund).
3)Absorbable costs for regional water boards to administer the
permits.
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COMMENTS:
1)Purpose. According to the author, this bill will ensure the
activity of suction dredge mining does not adversely affect
water quality by closing a loophole in current law and
empowering SWRCB to regulate the activity.
The author cites to a 2003 pilot study conducted by SWRCB that
found suction dredge mining exacerbates mercury contamination
in rivers and streams and disturbs fish habitat, harming
endangered fish species.
According to the author, the mercury levels in fish taken from
California streams where gold mining occurred are generally
above critical toxicity threshold levels and pose human health
risks. Existing law requires the DFW to issue permits for
suction dredge mining if certain conditions are met, including
that new regulations adopted by DFW fully mitigate all
identified significant environmental impacts. However, DFW
does not have authority to mitigate water quality impacts,
which fall under the jurisdiction of the SWRCB.
This bill will ensure suction dredge mining does not adversely
affect water quality.
2)Background. Suction dredge mining is a process by which power
equipment is used to vacuum up sediment from the streambeds of
rivers, creeks or other water bodies in search of gold. It is
a form of recreational instream gold mining in which a
gasoline-powered motor sits on a pontoon while the miner dives
to the bottom of the river and vacuums up the riverbed. The
material passes through a sluice box where heavier material
such as gold is captured and the remaining material is
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discharged back into the river.
Suction dredge mining was initially regulated in California
because of its impacts on fish and aquatic life. To date,
because of this history, DFW is the only state agency with
explicit authority over this activity.
Existing law currently places a moratorium on the issuance of
suction dredge permits by DFW. The conditions of this
moratorium have evolved over the years. In 2009, the
moratorium was first established as a temporary measure until
DFW (then Department of Fish and Game) conducted an
environmental review of suction dredge mining, which was
consistent with a court injunction order.
In February 2011, DFW released draft regulations and a draft
EIR. In that same year, the Legislature, through a budget
trailer bill, extended the moratorium until 2016 to provide
DFW with time to establish a fee structure to cover all of its
administrative costs.
In 2012, the Legislature hinged the end of the moratorium on
the development of the fee and required DFW to report to the
Legislature on required statutory changes or authorizations
necessary to implement suction dredge mining permits. That
report was submitted to the Legislature on April 1, 2013.
SWRCB's comments to DFW's suction dredge mining EIR identified
two significant and unavoidable water quality impacts of
suction dredge mining: (1) mercury re-suspension and
discharge, and (2) the effects from re-suspension and the
discharge of other trace metals, such as copper, lead, zinc,
cadmium, chromium, and arsenic.
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Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081