BILL NUMBER: SB 666 CHAPTERED 09/27/00 CHAPTER 713 FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2000 APPROVED BY GOVERNOR SEPTEMBER 25, 2000 PASSED THE SENATE AUGUST 31, 2000 PASSED THE ASSEMBLY AUGUST 30, 2000 AMENDED IN ASSEMBLY AUGUST 29, 2000 AMENDED IN ASSEMBLY AUGUST 25, 2000 AMENDED IN ASSEMBLY JUNE 21, 2000 AMENDED IN SENATE JANUARY 13, 2000 AMENDED IN SENATE APRIL 27, 1999 INTRODUCED BY Senator Sher FEBRUARY 24, 1999 An act to amend and repeal Section 2796 of, and to add and repeal Section 2796.5 of, the Public Resources Code, and to repeal Section 3 of Chapter 1094 of the Statutes of 1993, relating to mining. LEGISLATIVE COUNSEL'S DIGEST SB 666, Sher. Surface mining and reclamation: deposit of federal funds: expenditures. The existing Surface Mining and Reclamation Act of 1975 establishes a state abandoned minerals and mineral materials mine reclamation program for the purpose of administering funds received by the state under the federal Surface Mining Control and Reclamation Act of 1977, or through amendments to specified federal general mining laws. This bill would permit funds appropriated by the Legislature to be used for the state abandoned minerals and mineral materials mine reclamation program. The bill would make related conforming changes. The bill would also, until January 1, 2003, permit the Director of Conservation to remediate or complete reclamation of abandoned mined lands that meet specified requirements and to make the costs of remediation a lien on the affected property. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 2796 of the Public Resources Code is amended to read: 2796. (a) The Legislature hereby establishes a state abandoned minerals and mineral materials mine reclamation program for the purpose of administering funds received by the state under the Surface Mining Control and Reclamation Act of 1977, or through amendments to the federal general mining laws (30 U.S.C. Secs. 1, 12A, 16, 161, and 162, and 602, et seq.) or from other funds appropriated by the Legislature for the purposes of paragraphs (1) and (2) of subdivision (b). (b) There is an Abandoned Mine Reclamation and Minerals Fund in the State Treasury. That fund is the depository for all moneys received pursuant to this section. The money in the fund may be expended, upon appropriation, for the following purposes: (1) Development of an inventory of mined lands, water, and facilities eligible for reclamation. (2) Establishment by the director of an abandoned minerals and mineral materials mine reclamation program that provides for any of the following: (A) (i) Reclamation and restoration of abandoned surface mined areas. (ii) For purposes of this subparagraph, "abandoned surface mined area" means mined lands that meet all of the following requirements: (I) Mining operations have ceased for a period of one year or more. (II) There is no interim management plan in effect that meets the requirements of Section 2770. (III) There are no approved financial assurances that are adequate to perform reclamation in accordance with this chapter. (IV) The mined lands are adversely affected by past mining of minerals, as defined in Section 2005. (B) Reclamation and restoration of abandoned milling and processing areas. (C) Sealing, filling, and grading abandoned deep mine entries. (D) Planting of land adversely affected by past mining to prevent erosion and sedimentation. (E) Prevention, abatement, treatment, and control of water pollution created by abandoned mine drainage. (F) Control of surface subsidence due to abandoned deep mines. (G) The expenses necessary to accomplish the purposes of this section. (3) To the extent those expenditures are allowed by the applicable statutes: (A) Grants to lead agencies for the purposes of carrying out this chapter. (B) Implementation of this chapter and Section 2207 by the department, which may include an offsetting reduction in the amount of reporting fees collected from each active and idle mining operation and deposited in the Mine Reclamation Account pursuant to subdivision (d) of Section 2207, as determined by the director. (c) The state abandoned minerals and mineral materials mine reclamation program may receive funds from all of the following: (1) Disbursements made by the United States each fiscal year to this state pursuant to Section 35 of the Mineral Lands Leasing Act (30 U.S.C. Sec. 191), with respect to royalties levied on the production of locatable minerals or mineral concentrates from any mining claim located on federal lands in the state, but excluding oil, gas, and geothermal revenues. (2) Other revenues that may be received, including, but not limited to, grants, royalties, donations, penalties, settlements, or gifts, or funds appropriated by the Legislature. (d) The federal funds specified in paragraph (1) of subdivision (c) do not include the funds deposited in the Surface Mining and Reclamation Account pursuant to Section 2795, the funds deposited in the Geothermal Resources Development Account pursuant to Section 3820, or the funds deposited in the State School Fund pursuant to Section 12320 of the Education Code. (e) The expenditure of funds from the Abandoned Mine Reclamation and Minerals Fund for the abandoned minerals and mining materials mine reclamation program shall reflect the following priorities : (1) The protection of public health and safety and the environment from the adverse effects of past minerals and mineral materials mining practices. (2) The protection of property that is in extreme danger as a result of past minerals and mineral materials mining practices. (3) The restoration of land and water resources previously degraded by the adverse effects of past minerals and mineral materials mining practices. (f) Proposed expenditures from the Abandoned Mine Reclamation and Minerals Fund for the purposes of the abandoned minerals and mining materials mine reclamation program shall be included in a separate item in the Budget Bill for each fiscal year for consideration by the Legislature. Each appropriation from the fund shall be subject to all the limitations contained in the Budget Act and to all other fiscal procedures prescribed by law with respect to the expenditure of state funds. (g) This section shall remain in effect only until January 1, 2003, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2003, deletes or extends that date. SEC. 2. Section 2796.5 is added to the Public Resources Code, to read: 2796.5. (a) The director, with the consultation of appropriate state and local agencies, may remediate or complete reclamation of abandoned mined lands that meet all of the following requirements: (1) No operator having both the responsibility and the financial ability to remediate or reclaim the mined lands can be found within the state. (2) No reclamation plan is in effect for the mined lands. (3) No financial assurances exist for the mined lands. (4) The mined lands are abandoned, as that term is used in paragraph (6) of subdivision (h) of Section 2770. (b) In deciding whether to act pursuant to subdivision (a), the director shall consider whether the action would accomplish one of the following: (1) The protection of the public health and safety or the environment from the adverse effects of past surface mining operations. (2) The protection of property that is in danger as a result of past surface mining operations. (3) The restoration of land and water resources previously degraded by the adverse effects of surface mining operations. (c) The director may also consider the potential liability to the state in deciding whether to act under this section. Neither the director, the department, nor the state, or its appointees, employees, or agents, in conducting remediation or reclamation under this section, shall be liable under applicable state law, and it is the intent of the Legislature that those persons and entities not be liable for those actions under federal laws. (d) (1) The remediation or reclamation work performed under this section includes, but is not limited to, supervision of remediation or reclamation activities that, in the director's judgment, is required by the magnitude of the endeavor or the urgency for prompt action needed to protect the public health and safety or the environment. The action may be taken in default of, or in addition to, remedial work by any other person or governmental agency, and regardless of whether injunctive relief is being sought. (2) The director may authorize the work to be performed through department staff, with the cooperation of any other governmental agency, or through contracts, and may use rented tools or equipment, either with or without operators furnished. (3) In cases of emergency where quick action is necessary, notwithstanding any other provision of law, the director may enter into oral contracts for the work, and the contracts, whether written or oral, may include provisions for the rental of tools or equipment and in addition the furnishing of labor and materials necessary to accomplish the work. These emergency contracts are exempt from approval by the Department of General Services pursuant to Section 10295 of the Government Code. (4) The director shall be permitted reasonable access to the abandoned mined lands as necessary to perform any remediation or reclamation work. The access shall be obtained with the consent of the owner or possessor of the property or, if the consent is withheld or otherwise unobtainable, with a warrant duly issued pursuant to the procedure described in Title 13 (commencing with Section 1822.50) of Part 3 of the Code of Civil Procedure. However, in the event of an emergency affecting the public health or safety, the director may enter the property without consent or the issuance of a warrant. (e) For any remediation or reclamation work accomplished, or other necessary remedial action taken by any governmental agency, the operator, landowner, and the person or persons who allowed or caused any pollution or nuisance are liable to that governmental agency to the extent of the reasonable costs actually incurred in remediating, reclaiming, or taking other remedial action. The amount of the costs is recoverable in a civil action by, and paid to, the governmental agency and the director to the extent of the director's contribution to the costs of the remediation, reclamation, cleanup, and abatement or other corrective action. (f) (1) The amount of the costs constitutes a lien on the affected property upon service of a copy of the notice of lien on the owner and upon the recordation of a notice of lien, which identifies the property on which the remediation or reclamation was accomplished, the amount of the lien, and the owner of record of the property, in the office of the county recorder of the county in which the property is located. Upon recordation, the lien has the same force, effect, and priority as a judgment lien, except that it attaches only to the property posted and described in the lien. The lien shall continue for 10 years from the time of the recording of the notice of the lien unless sooner released or otherwise discharged, and may be renewed. (2) Not later than 45 days after receiving a notice of lien, the owner may petition the court for an order releasing the property from the lien or reducing the amount of the lien. In this court action, the governmental agency that incurred the costs shall establish that the costs were reasonable and necessary. The lien may be foreclosed by an action brought by the director, for a money judgment. Money recovered by a judgment in favor of the director shall be used for the purposes of this chapter. (g) If the operation has been idle for more than one year without obtaining an approved interim management plan, an application for the review of an interim management plan filed for the purpose of preventing the director from undertaking remediation or reclamation of abandoned mined lands under this section shall be voidable by the lead agency or the board upon notice and hearing by the lead agency or the board. In the event of conflicting determinations, the decision of the board shall prevail. (h) "Remediate," for the purposes of this section, means to improve conditions so that threat to or damage to public health and safety or the environment are lessened or ameliorated, including the cleanup and abatement of pollution or nuisance or threatened pollution or nuisance. (i) "Threaten," for the purposes of this section, means a condition creating a probability of harm, when the probability and potential extent of harm make it reasonably necessary to take action to prevent, reduce, or mitigate damages to persons, property, or the environment. (j) This section shall apply to abandoned mined lands on which the mining operations were conducted after January 1, 1976. (k) The director may act under this section only upon the appropriation of funds by the Legislature for the purposes of carrying out this section. (l) Nothing in this section limits the authority of any state agency under any other law or regulation to enforce or administer any cleanup or abatement activity. (m) This section shall remain in effect only until January 1, 2003, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2003, deletes or extends that date. SEC. 3. Section 3 of Chapter 1094 of the Statutes of 1993 is repealed. SEC. 4. It is the sense of the Legislature that a significant barrier to the reclamation and remediation of abandoned mine sites is the threat of federal liability under the Clean Water Act (33 U.S.C. Sec. 1251 et seq.), the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. Sec. 9601 et seq.), and the Resource Conservation and Recovery Act (42 U.S.C. Sec. 6901 et seq.). The Legislature calls upon the Governor to promote Good Samaritan legislation that will change federal law to provide liability relief to the state, its contractors, and others for completing reclamation or remediation work, or both, on abandoned mine sites.