BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        SB 637|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                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










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          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  








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               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, 








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             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  








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               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  








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            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  








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          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









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