BILL ANALYSIS Ó SB 637 Page 1 (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, | | SB 637 Page 2 | | |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, SB 637 Page 3 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 SB 637 Page 4 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 SB 637 Page 5 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 SB 637 Page 6 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. SB 637 Page 7 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 SB 637 Page 8 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 SB 637 Page 9 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 SB 637 Page 10 impacts, particularly on small scale suction dredge miners. Analysis Prepared by: Diane Colborn / W., P., & W. / (916) 319-2096 FN: 0002324