BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 637| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- UNFINISHED BUSINESS Bill No: SB 637 Author: Allen (D) Amended: 9/10/15 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 SENATE FLOOR: 22-15, 6/3/15 AYES: Allen, Beall, Block, De León, Hall, Hancock, Hernandez, Hertzberg, Hill, Hueso, Jackson, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning, Pan, Pavley, Wieckowski, Wolk NOES: Anderson, Bates, Berryhill, Cannella, Fuller, Gaines, Galgiani, Huff, Moorlach, Morrell, Nguyen, Nielsen, Runner, Stone, Vidak NO VOTE RECORDED: Glazer, Lara, Roth ASSEMBLY FLOOR: Not available SUBJECT: Suction dredge mining: permits SOURCE: Sierra Fund SB 637 Page 2 DIGEST: This bill authorizes the State Water Resources Control Board (SWRCB) 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. Assembly Amendments clarify declarations and findings, narrow the definition of a complete application for suction dredging by specifying that the department would only require water quality and endangered species permits, add new public participation criteria for the water board, and add a provision regarding tribal consultation. ANALYSIS: 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 SB 637 Page 3 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 and requires the submittal of a permit application. 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. 4)Requires DFW, if it determines 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, guilty of a misdemeanor. This bill: 1)Prohibits DFW from issuing a permit for vacuum or suction dredge mining until the permit application is complete. 2)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 SWRCB or a regional board, b) A copy of a certification issued by SWRCB or a regional board and a permit issued by the U.S. Army Corps of Engineers to use vacuum or suction dredge equipment: or, SB 637 Page 4 c) If the SWRCB 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 SWRCB 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 SWRCB or a regional board. 6)Authorizes the SWRCB 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 SB 637 Page 5 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. 7)States additional findings and declarations that, except for water quality, and after complying with tribal consultation requirements, DFW may determine that significant environmental impacts to resources other than fish and wildlife resources caused by suction dredge mining are fully mitigated if a regulation adopted by 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. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: No According to the Assembly Appropriations Committee: 1)Increased fee authority for DFW to cover all reasonable costs of regulating suction dredge mining activities. 2)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. 3)Increased costs of approximately $420,000 annually for two years for the SWRCB to develop water quality permit conditions SB 637 Page 6 for suction dredge mining (Waste Discharge Permit Fund). 4)Absorbable costs for regional SWRCB to administer the permits. SUPPORT: (Verified9/11/15) Sierra Fund (source) California Trout California Coastkeeper Alliance California Nations Indian Gaming Association California Wilderness Coalition Center for Biological Diversity Clean Water Action East Bay Municipal Utility District Environmental Protection Information Center Friends of the Eel River Friends of the River Karuk Tribe Klamath Riverkeeper North Fork American River Alliance Pacific Coast Federation of Fishermen's Associations Sierra Club California Sierra Nevada Alliance South Yuba River Citizens League Trout Unlimited Tule River Indian Tribe of California Yurok Tribe OPPOSITION: (Verified9/11/15) Miners Assembled Western Mining Alliance Several individuals ARGUMENTS IN SUPPORT: Supporters note that the permit SB 637 Page 7 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 Chinook salmon and Coho salmon that are listed under the Endangered Species Act. Supporters further emphasize that while they don't 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. ARGUMENTS IN OPPOSITION: 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 decompacting gravel beds and creating depressions that act as cold water refugia for fish, and that passage of this bill would have negative economic impacts, particularly on small scale suction dredge miners. Prepared by:William Craven / N.R. & W. / (916) 651-4116 9/11/15 21:00:50 SB 637 Page 8 **** END ****