BILL ANALYSIS                                                                                                                                                                                                    





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2009-2010 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 670                    HEARING DATE: April 28, 2009   

          AUTHOR: Wiggins                    URGENCY: Yes  
          VERSION: As Introduced             CONSULTANT: Bill Craven  
          DUAL REFERRAL: No                  FISCAL: Yes  
          SUBJECT: Vacuum or suction dredge equipment.  
          
          BACKGROUND AND EXISTING LAW
          The Fish and Game Code prohibits suction dredging except when  
          permitted by the Department of Fish and Game (DFG) and when  
          consistent with regulations adopted by the department. The    
          statute requires the regulations to designate streams where  
          dredges may be operated pursuant to a permit, streams where  
          dredging is not allowed, and the time or times of year when  
          dredging is allowed. 

          Permit fees for residents are established at $25 unless a site  
          inspection is necessary in which the fee is $130. The respective  
          non-resident fees are $100 and $220. Approximately 3000 permits  
          are issued annually. 

          It is illegal to use a suction dredge within 100 feet of a  
          closed area. 

          DFG regulations were last updated in 1994. In 2005, the Karuk  
          Indian tribe sued DFG over the adequacy of the regulations and  
          the department essentially did not contest the lawsuit. In a  
           negotiated settlement, DFG agreed to conduct an environmental  
          review of its regulations by July, 2008, provided that funds for  
          this review were provided in the 2007-08 budget. Funds were made  
          available only last year. 

          In the last several years, the practice of suction dredging for  
          gold in California's rivers has become increasingly  
          controversial. It has been the topic of lawsuits, legislation,  
          and was discussed in the Rules Committee in the recent  
          confirmation of Don Koch as the new director of the department.   
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          In 2007, the Governor vetoed AB 1032 (Wolk) which would have  
          imposed seasonal limits on suction dredging in streams in  
          northern California and the Sierra that have been identified as  
          habitat for salmon, steelhead, and native trout. 

           Legal Issues.  The current regulations of the DFG were issued in  
          1994, prior to the listings of the coho salmon as a federally  
          listed endangered species in 1996 and as a state listed  
          endangered species in 2004. In the past the department has found  
          that suction dredging has had adverse environmental effects and  
          deleterious effects on fish.

          However, the department does not believe existing law allows it  
          to stop granting dredging permits while the new EIR is being  
          developed. It considers dredging permits to be essentially a  
          ministerial act, much like buying a fishing license. 

          On the other hand, opponents of dredging believe that in the  
          absence of a valid environmental document, DFG should not grant  
          any new permits, which they believe to be discretionary permits.  
          They contend that the development of suction dredging  
          regulations is a project subject to CEQA and that no permits  
          should be issued until a valid EIR has been certified and new  
          regulations are in place. 

          The delay in getting the EIR started prompted opponents of  
          suction dredging including the Karuk Tribe, CalTrout, Friends of  
          the North Fork (American River), and the Sierra Fund to petition  
          DFG to issue emergency regulations to limit dredging on the  
          Klamath and five other streams in the Sierra. As indicated, DFG  
          declined to do so, stating that it does not believe it has the  
          authority to do so. 

          DFG has selected a firm for the environmental review, and the  
          contract is being finished. The ongoing environmental review is  
          supposed to be finished by the end of 2010, according to DFG. 

           Water quality issues. 
           According to a recent report by the Sierra Fund, an estimated 26  
          million pounds of mercury were used to extract gold from ore in  
          California. Half of this mercury was lost in the environment in  
          placer and hard rock mining operations where it remains in  
          watersheds where it is commonly encountered. Mercury runoff from  
          these watersheds is a source of mercury contamination of the  
          California Bay-Delta. 
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          Suction dredgers remove gravel from riverbeds with a hose  
          powered by an engine. The water quality controversy involves  
          what opponents characterize as the tendency of dredging  
          operations to "flour" mercury in the water, making it more  
          readily available for bacteria to methylate, a process that  
          converts base mercury into a developmental neurotoxin that  
          accumulates in the food chain and that humans ingest through  
          fish that they consume. 

          Dredgers may try to separate mercury from any amalgamated gold,  
          and the recovered mercury is then either stored or disposed of  
          in an unauthorized manner. Storage of mercury is subject to  
          regulation also, but there is no available information from  
          state agencies that mercury obtained by dredgers is regulated. 

          Dredging permits issued by DFG state that the applicant will  
          comply with all appropriate water quality regulations. However,  
          the State Water Resources Control Board does not have a program  
          to regulate suction dredging. 

          The board found, however, in a 2003 study, that dredging  
          exacerbates mercury contamination of rivers and streams. 

           Fisheries Issues. 
           Opponents of suction dredging have offered peer-reviewed  
          scientific studies concluding that suction dredge mining can  
          degrade fish habitat and water quality, and harm native species.  
           These studies are referenced in the committee analyses of AB  
          1032. One study found that suction dredging can adversely affect  
          Chinook salmon by destabilizing spawning areas.  Other studies  
          warn of adverse affects to habitat of native trout and amphibian  
          species, such as the yellow-legged frog.  

          Declarations submitted by DFG's chief fisheries biologist in the  
          Karuk lawsuit acknowledged that DFG's existing suction dredge  
          regulations are inadequate and that harm is occurring to listed  
          species including Coho salmon, which, unless things change, is  
          on the brink of extinction.  The declaration cites numerous  
          scientific peer-reviewed studies on the effects of suction  
          dredging that have been issued since the existing regulations  
          were last updated in 1994.  

          According to respected fishery biologist Dr. Peter Moyle of the  
          University of California at Davis, "suction dredging should be  
          banned in tributaries of the Klamath River, 500 meters above and  
          below cool-water refuge areas (stream mouths) on the mainstream  
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          of the Klamath River, the Klamath River from the Trinity River  
          confluence to Green Riffle, Canyon Creek and all other Scott  
          River tributaries, and the Salmon River including the north and  
          south forks and all tributaries." Dr. Moyle explains that  
          "suction dredging represents a chronic unnatural disturbance of  
          natural habitats that are already likely to be stressed by other  
          factors and can therefore have a negative impact on fishes that  
          use the reach being dredged?All anadromous fishes in the Klamath  
          basin should be considered to be in decline and ultimately  
          threatened with extirpation?suction dredging through a  
          combination of disturbance of resident fish, alteration of  
          substrates, and indirect effects on heavy human use of small  
          areas, especially thermal refugia (side creeks), will further  
          contribute to the decline of the fishes."

          Proponents of dredging have referenced statements in the earlier  
          EIR to the effect that dredging may improve spawning grounds.  
          They also believe that 3000 dredgers could not kill more salmon  
          than the commercial fishing industry.

           Fiscal Issues. 
           In previous years, DFG has acknowledged that the dredging  
          program's fees are inadequate to cover the cost of the program.  
          It has previously estimated that the permits cost an average of  
          $450 to process and to cover the costs of the program, which if  
          extrapolated to the approximate 3000 permits would result in an  
          expenditure of about $1.3 million. The author believes it would  
          be more appropriate to use that money to invest in the EIR or to  
          develop the new regulations that are required by the court  
          order. 

          PROPOSED LAW
          This urgency measure would impose a temporary moratorium on the  
          granting of new suction dredging permits until the ongoing  
          environmental review is certified. It provides that the issuance  
          of permits is not a ministerial act, and that, therefore, such  
          permits may not be issued until a valid underlying environmental  
          document is in place. 

          ARGUMENTS IN SUPPORT
          Friends of the River supports the bill but believes the  
          temporary moratorium should be expanded to include more than  
          salmon streams. It believes that suction dredging affects wild  
          and scenic rivers, wild trout populations, other wildlife, and  
          river-based recreational opportunities. 

          Many supporters categorize suction dredging as a rather crude  
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          technology by which miners "literally vacuum up our river beds  
          and spawning grounds, and disturb and mobilize the mercury left  
          behind by gold mining operations" as was stated in several  
          letters.  All of the supporters agree that the rules governing  
          this practice are outdated. 

          Sierra Club California and Pacific Coast Federation of  
          Fishermen's Associations point to the ban on commercial salmon  
          fishing and argue that the salmon crisis threatens thousands of  
          jobs. Sierra Club California concludes that "It simply does not  
          make sense to jeopardize an entire fishery, and to ask  
          commercial fishermen to sit idle, while allowing ongoing  
          environmental harm for a recreational hobby." 

          Tribal organizations in support of the bill-the Karuk Tribe, and  
          the California Tribal Business Alliance-point to the cultural  
          and traditional religious practices that revolve around the  
          annual returns of salmon, steelhead, and other species. Many  
          tribal members rely on subsistence fishing to provide food for  
          their families. 

          ARGUMENTS IN OPPOSITION
          The Regional Council of Rural Counties argues that the existing  
          regulations are sufficiently restrictive and protective and  
          allow individuals to legally mine their claims of precious  
          minerals. It points to parts of rural California where mining  
          remains an important port of the culture, history, and economy  
          of some local communities. Siskyou County separately asserted  
          these same concerns. 

          The New 49'ers, a mining advocacy group, argues that no  
          scientific information points to suction dredging as a cause in  
          the collapse of salmon, that the collapse is due to ocean  
          conditions and an over-reliance on hatchery fish, and that a  
          moratorium would violate the private property rights of those  
          who have federal mining claims and create "takings" liability on  
          the part of the state. 

          SUPPORT
          Cal Trout 
          California Coastkeeper Alliance
          California Tribal Business Alliance 
          Clean Water Action 
          Friends of the River 
          Karuk Tribe 
          Pacific Coast Federation of Fishermen's Associations
          Planning and Conservation League 
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          Sierra Club California 
          Sierra Fund 
          Sierra Nevada Alliance

          OPPOSITION
          County of Siskyou 
          Hundreds of individuals in California participating in dredge  
          gold mining.
          Hundreds of individuals living out of state coming to California  
          for suction dredging 
          New 49'ers
          Regional Council of Rural Counties



































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