BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 637


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          (Without Reference to File)





          SENATE THIRD READING


          SB  
          637 (Allen)


          As Amended  September 10, 2015


          Majority vote


          SENATE VOTE:  22-15


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Water           |10-4 |Levine, Dababneh,     |Dahle, Beth Gaines, |
          |                |     |Dodd, Cristina        |Harper, Mathis      |
          |                |     |Garcia, Gomez, Lopez, |                    |
          |                |     |Medina, Rendon,       |                    |
          |                |     |Salas, Williams       |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |12-5 |Gomez, Bloom, Bonta,  |Bigelow, Chang,     |
          |                |     |Calderon, Nazarian,   |Gallagher, Jones,   |
          |                |     |Eggman, Eduardo       |Wagner              |
          |                |     |Garcia, Holden,       |                    |








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          |                |     |Quirk, Rendon, Weber, |                    |
          |                |     |Wood                  |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Natural         |5-2  |Williams, Hadley,     |Dahle, Harper       |
          |Resources       |     |McCarty, Rendon, Mark |                    |
          |                |     |Stone                 |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  Authorizes the State Water Resources Control Board  
          (Water Board) or regional water quality control board (regional  
          board) to adopt waste discharge requirements that address water  
          quality effects of suction dredge mining, and prohibits the  
          Department of Fish and Wildlife (DFW) from issuing a permit for  
          suction dredge mining until the application is complete and  
          includes all required permits.  Specifically, this bill:  


          1)States findings and declarations regarding the legislative and  
            legal history of state regulation of suction dredge mining  
            activities, and the need to clarify laws regulating suction  
            dredge mining in order to protect California's water supply,  
            native cultural sites, and wildlife.


          2)Prohibits DFW from issuing a permit for vacuum or suction  
            dredge mining until the permit application is complete.   
            Requires that the application include any other permit  
            required by the DFW and one of the following:


             a)   A copy of waste discharge requirements or a waiver of  
               waste discharge requirements issued by the Water Board or a  
               regional board in accordance with Division 7 of the Water  
               Code,









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             b)   A copy of a certification issued by the Water Board or a  
               regional board and a permit issued by the United States  
               Army Corps of Engineers in accordance with Sections 401 and  
               404 of the Federal Water Pollution Control Act to use  
               vacuum or suction dredge equipment, or


             c)   If the Water Board or a regional board determines that  
               waste discharge requirements, a waiver of waste discharge  
               requirements, or a certification as specified in a) or b)  
               above, are not necessary, a letter stating that  
               determination signed by the Executive Director of the Water  
               Board or appropriate regional board.


          3)Requires DFW to issue the permit if it determines that use of  
            a vacuum or suction dredge does not cause any significant  
            effects to fish and wildlife.


          4)Authorizes DFW to adjust the base fees for a suction dredge  
            permit to cover all reasonable costs of DFW in regulating  
            suction dredging activities.


          5)Provides that a permit issued by DFW for suction dredge mining  
            shall not authorize any activity in violation of any other  
            applicable requirements, conditions, or prohibitions governing  
            the use of suction dredge equipment, including those adopted  
            by the Water Board or a regional board.


          6)Defines suction dredging to mean the use of a mechanized or  
            motorized system for removing or assisting in the removal of  
            or processing of material from the bed, bank, or channel of a  
            river, stream, or lake in order to recover minerals.   
            Clarifies that this bill does not apply to, prohibit, or  
            otherwise restrict non-motorized recreational mining  








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            activities, including panning for gold.


          7)Authorizes the Water Board or a regional board, in order to  
            protect water quality, to do one or more of the following:  a)  
            Adopt waste discharge requirements or a waiver of waste  
            discharge requirements that, at a minimum, address the water  
            quality impacts of mercury loading to downstream reaches of  
            surface water bodies affected by suction dredging,  
            methylmercury formation in water bodies, bioaccumulation of  
            mercury in aquatic organisms, and resuspension of metals; b)  
            Specify conditions or areas where the discharge of waste or  
            other adverse impacts on the beneficial uses of the waters of  
            the state from suction dredge mining is prohibited; and c)  
            Prohibit any particular methods of suction dredge mining that  
            exceed water quality objectives or unreasonably impact  
            beneficial uses.


          8)Requires the Water Board, before determining what action to  
            take on suction dredge regulation to conduct public workshops  
            in the vicinity of San Bernardino, Fresno, Sacramento or  
            Redding.  Requires a regional board considering independent  
            action to solicit stakeholder input by conducting at least one  
            public workshop in that regional board's region.  Requires the  
            Water Board  or a regional board to conduct at least one  
            public hearing pursuant to the Bagley-Keene Open Meeting Act,  
            before taking a proposed action.  Authorizes the Water Board  
            and a regional board to work in collaboration to share  
            information obtained through public workshops or public  
            hearings, in order to avoid duplication of efforts.


          9)States findings and declarations that, except for water  
            quality, and after complying with tribal consultation  
            requirements, DFW may determine for purposes of Fish and Game  
            Code Section 5653.1, that significant environmental impacts to  
            other than fish and wildlife resources caused by suction  
            dredge mining are fully mitigated if a regulation adopted by  








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            DFW to implement Fish and Game Code Section 5653 requires  
            compliance with other laws and provides that nothing in any  
            permit issued by DFW for suction dredge mining relieves the  
            permittee of responsibility to comply with all applicable  
            laws.


          EXISTING LAW:


          1)Prohibits the use of any vacuum or suction dredge equipment in  
            any river, stream, or lake in the state until the director of  
            the DFW certifies to the Secretary of State that all of the  
            following have occurred:

             a)   DFW has completed a court ordered environmental review  
               of suction dredge mining;

             b)   New regulations have been adopted by DFW that have been  
               filed with the Secretary of State, are operative, and fully  
               mitigate all identified significant environmental impacts;  
               and

             c)   A fee structure is in place that fully covers all costs  
               to DFW related to the administration of permits for suction  
               dredge mining.


          2)Prohibits the use of any vacuum or suction dredge equipment in  
            any river, stream, or lake except as authorized under a permit  
            issued by DFW.  Requires the submittal of a permit  
            application, as specified.


          3)Subject to the moratorium preconditions described in 1) above,  
            requires DFW to designate waters or areas where suction  
            dredges may be used pursuant to a permit, areas where such use  
            is prohibited, the maximum size of the equipment, and the time  
            of year that it may be used.  Requires DFW, if it determines  








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            that the operation will not be deleterious to fish, to issue a  
            permit.  Makes operation of a suction dredge without a permit  
            or in ways other than authorized in a permit, a misdemeanor.    





          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:

          1)Increased fee authority for DFW to cover all reasonable costs  
            of regulating suction dredge mining activities. Although DFW  
            is not presently 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 Governments. This  
            bill, instead, allows DFW to adjust fees based on reasonable  
            costs.


          2)Increased costs of approximately $420,000 annually for two  
            years for the Water Board 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.


          COMMENTS:  This bill seeks to ensure that suction dredge mining  
          does not adversely affect water quality by empowering the Water  
          Board to regulate the activity.  It also prohibits the DFW from  
          issuing a suction dredge mining permit until a complete  
          application, including copies of any required Water Board  
          permits, has been received.








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          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 to search for gold.  It is a form of  
          recreational instream gold mining in which a gasoline powered  
          motor sits atop a pontoon while the miner dives to the bottom of  
          the river and vacuums up sediment from the riverbed.  The  
          material passes through a sluice box where heavier material such  
          as gold is captured and the remaining material is discharged  
          back into the river as debris.


          The author's stated purpose is to ensure that suction dredge  
          mining does not adversely affect water quality by closing a  
          loophole in current law and empowering the Water Board to  
          regulate the activity.  Studies have found that suction dredge  
          mining can exacerbate mercury contamination in rivers and  
          streams and also disturb fish habitat, harming endangered fish  
          species.  The power equipment used to vacuum gravel from  
          streambeds results in plumes of mercury-laden sediments  
          downstream.  This mobilizes the mercury and makes it more  
          available for transformation into toxic methyl mercury.  For  
          further discussion and background on such impacts see the  
          Assembly Water, Parks, and Wildlife Committee policy analysis of  
          this bill.


          The DFW, in an environmental review conducted to update its  
          suction dredge mining regulations in 2012, found that suction  
          dredge mining caused significant environmental impacts,  
          including impacts to water quality, cultural resources,  
          endangered wildlife, and noise.  However, the DFW indicated that  
          it lacks the legal authority to address water quality impacts  
          which fall under the jurisdiction of the Water Board.  Under  
          current law there is a moratorium on the issuance of suction  
          dredge permits until the DFW determines that all identified  
          significant environmental impacts have been fully mitigated.  As  
          a result, the moratorium is still in effect, but is currently  








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          being challenged in court.  


          The Water Board has authority under the federal Clean Water Act  
          to require a waste discharge permit from dischargers, as it is  
          charged with regulating and permitting discharges into waters of  
          the state, but current state law only expressly requires a  
          permit from DFW for suction dredge mining.  This bill addresses  
          this gap by requiring the Water Board to determine if a waste  
          discharge permit is required, and prohibits the DFW from issuing  
          a suction dredge permit until any permits required by the Water  
          Board have been obtained.


          The issue of suction dredge mining and its impacts has been the  
          subject of legislative, regulatory and legal actions in  
          California since 2005.  In 2005, the Karuk tribe filed the  
          initial lawsuit that is now part of an 8-case coordinated action  
          in San Bernardino County Superior Court, with a related action  
          currently pending before the California Supreme Court.  For a  
          detailed description of the litigation history and status please  
          see the Assembly Water, Parks, and Wildlife Committee policy  
          analysis of this bill.  In summary, the initial lawsuit  
          challenged the DFW's regulations on suction dredge mining that  
          were in effect at that time, and led to a court order requiring  
          DFW to conduct an environmental review and update their  
          regulations, an action which was finally completed in 2012.


          Litigation challenging the DFW's 2012 regulations was filed by  
          suction dredge miners, and a separate lawsuit challenging the  
          regulations was also filed by a coalition of tribal,  
          environmental and fishing interests.  Both of these actions, as  
          well as six other cases, are now coordinated before the San  
          Bernardino Superior Court under a single case titled:  In Re  
          Suction Dredge Cases.  In January 2015 the trial court issued an  
          order on the preemption cause of action finding that the state's  
          moratorium on suction dredge mining was preempted on federal  
          lands based on a court of appeal decision in a separate action  








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          that is now on appeal before the California Supreme Court.   
          However, the moratorium is still in effect pending the outcome  
          of the litigation.


          Supporters of this bill note that the permit program developed  
          by DFW, and the associated environmental analysis, found that  
          suction dredge mining activities create significant and  
          unavoidable impacts to water quality and cultural resources that  
          DFW lacks the authority to mitigate.  Current law places a  
          moratorium on the issuance of permits unless and until DFW is  
          able to fully mitigate all significant environmental impacts,  
          something they are not able to do today.  However, the  
          moratorium may be lifted as a result of pending litigation.   
          Supporters note that suction dredge mining has been shown to  
          increase levels of highly toxic methyl mercury in California  
          waters, and to negatively affect fish species such as  
          commercially valuable runs of salmon that are listed under the  
          Endangered Species Act.  Supporters further emphasize that while  
          they do not oppose responsible mining, suction dredge mining  
          should not be allowed to occur at the expense of clean water,  
          cultural resources, and fisheries.  Some supporters also note  
          that the impacts to water quality caused by suction dredge  
          mining are especially alarming in light of the ongoing drought  
          and efforts to conserve ever depleting water sources.    




          Opponents assert that the activities of suction dredge mining do  
          not result in a waste discharge to waters of the state and  
          therefore are not activities that should be subject to waste  
          discharge permit requirements under the Clean Water Act.  They  
          further assert that suction dredge miners help to improve water  
          quality by removing mercury, lead, and other waste and trash  
          from streambeds.  Some opponents also assert that suction dredge  
          mining is beneficial to fish, by de-compacting gravel beds and  
          creating depressions that act as cold water refugia for fish,  
          and that passage of this bill would have negative economic  








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          impacts, particularly on small scale suction dredge miners.


          Analysis Prepared by:                                             
                          Diane Colborn / W., P., & W. / (916) 319-2096     
                                                                  FN:  
          0002324