BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2509
                                                                  Page 1

          Date of Hearing:  April 16, 2012

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                    AB 2509 (Nielsen) - As Amended:  April 9, 2012
           
          SUBJECT  :  Surface mining and reclamation plans:  exempted 
          activities

           SUMMARY  :  Requires that to qualify for the Surface Mining and 
          Reclamation Act (SMARA) exemption regarding restoration of lands 
          affected by a flood or natural disaster, excavation or grading 
          must occur within 20 years of when the lands were affected.

           EXISTING LAW  :

          1)Creates SMARA, which prohibits a person from conducting 
            surface mining operations unless the lead agency for the 
            operation issues a surface mining permit and approves a 
            reclamation plan and financial assurances for reclamation.  
            Depending on the circumstances, a lead agency can be a city, 
            county, the San Francisco Bay Conservation and Development 
            Commission, or the State Mining and Geology Board (Board) 
            within the Department of Conservation (Department).

          2)Exempts several surface mining activities from the 
            requirements of SMARA, including:

             a)   Excavations or grading conducted for farming or the 
               immediate excavation or grading of lands affected by a 
               flood or natural disaster for the purpose of restoring 
               those lands to their prior condition.

             b)   Prospecting for, or the extraction of, minerals for 
               commercial purposes where the removal of overburden or 
               mineral product totals less than 1,000 cubic yards in any 
               one location, and the total surface area disturbed is less 
               than one acre.

           THIS BILL  requires that to qualify for the SMARA exemption 
          regarding restoration of lands affected by a flood or natural 
          disaster, excavation or grading must occur within 20 years of 
          when the lands were affected.

           FISCAL EFFECT  :  Unknown








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           COMMENTS  :

           1)Purpose of the bill.   According to the author's office, this 
            bill will "correct a regulation that is stopping farmers and 
            ranchers from removing and selling soil from their fields that 
            have been deposited by floods."

           2)Conflict between SMARA law and regulation.   The Legislature in 
            adopting SMARA intended to create and maintain an effective 
            surface mining and reclamation policy to prevent or minimize 
            adverse environmental effects, reclaim mined lands to a usable 
            condition that is adaptable to alternative uses, and encourage 
            the production and conservation of minerals while giving 
            consideration to values relating to recreation, watershed, 
            wildlife, range and forage, and aesthetic enjoyment. 
            Section 2714 of the Public Resources Code (Section 2714) list 
            several exemptions to SMARA, most of which involve infrequent, 
            minor, or incidental surface disturbances.  One of these 
            exemptions is for "excavations or grading conducted for 
            farming or the immediate excavation or grading of lands 
            affected by a flood or natural disaster for the purpose of 
            restoring those lands to their prior condition" (the farming 
            and flood exemption).  Another exemption is for "the 
            extraction of minerals for commercial purposes where the 
            removal of overburden or mineral product totals less than 
            1,000 cubic yards in any one location, and the total surface 
            area disturbed is less than one acre" (the 1,000 cubic yards 
            exemption).  On its face, Section 2714 treats the farming and 
            flood exemption and the 1,000 cubic yards exemption as 
            separate and distinct from each other.  As such, a property 
            owner should be able to qualify for the farming and flood 
            exemption to restore his/her property even if he/she sells 
            more than 1,000 cubic yards of the incidentally produced 
            overburden or mineral product.

            The Board's regulations, however, do not treat these two 
            exemptions as separate and distinct.  Specifically, Section 
            3505 of Title 14 of the California Code of Regulations 
            (Section 3505) restricts the farming and flood exemption to 
            activities that involve less than 1,000 cubic yards of mineral 
            materials that are exported for commercial purposes.  This 
            limits the farming and flood exemption to activities that 
            would already qualify under the 1,000 cubic yards exemption 
            and, therefore, renders the farming and flood exemption 








                                                                  AB 2509
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            superfluous.  This treatment of the farming and flood 
            exemption runs counter to the canons of statutory 
            construction, which encourages an interpretation that best 
            serves to harmonize the statute internally.  

            The author cites a case, the Goose Farm North Project, in 
            which a property owner applied for a one-time SMARA exemption 
            from the Board to remove silt, sand, and debris derived from 
            over flow and flooding from a nearby river.  The property 
            owner proposed to grade the land so it would be level and 
            suitable for agricultural purposes.  The project was 
            anticipated to exceed the extraction of 1,000 cubic yards of 
            material for commercial purposes.  According to the sponsor, 
            without an exemption, it would have been too costly for the 
            property owner to comply with SMARA, which requires a 
            reclamation plan and financial assurances.  

            The Goose Farm North Project case seems to fit perfectly 
            within the farming and flood exemption in Section 2714-the 
            grading would be conducted for farming as well as to restore 
            lands that had been flooded.  The Board's Executive Officer's 
            Report for this case, however, made no reference to the 
            farming and flood exemption.  Instead it explained how the 
            project did not fit within the 1,000 cubic yards exemption.  
            The report then analyzed the case under a separate exemption 
            for "other surface mining operations that the Board? 
            determines to be of an infrequent nature and which involve 
            only minor surface disturbances."  Under this exemption, the 
            Board authorized the activities proposed by the property 
            owner.  The sponsor of the bill argues that the process 
            associated with the exemption used in the Goose Farm North 
            Project case is more costly and time consuming than if the 
            farming and flood exemption was utilized and applied 
            appropriately. 

           3)Suggested Amendments.   The intent of this bill, according to 
            the author and sponsor, is to allow a person to utilize the 
            farming and flood exemption without having to also meet the 
            requirements of Section 3505.  The bill, however, does not 
            affect Section 3505 either directly or indirectly.  Instead, 
            the bill allows a person to utilize the farming and flood 
            exemption within 20 years of when the lands were flooded.  
            This does not resolve the problem caused by Section 3505.
             
            The author and committee may wish to consider amendments  that 








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            expressly state that a person may utilize the farming and 
            flood exemption regardless of the amount of mineral materials 
            exported for commercial purposes unless such activities create 
            more than minor surface disturbances.  To ensure that this 
            exemption will be used legitimately for farming or for land 
            restoration after a flood, and not for unrelated purposes,  the 
            author and committee may also wish to consider amendments  that 
            (a) only allow a person to sell the mineral materials to the 
            extent that the proceeds offset the costs of excavating, 
            grading, and exporting, (b) allow a person to perform 
            restoration activities within a reasonable time, considering 
            the circumstances, after the flood or natural disaster has 
            occurred, and (c) require a person to notify the Board prior 
            to utilizing this exemption.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Sutter County Board of Supervisors

           Opposition 
           
          None on file

           
          Analysis Prepared by  :  Mario DeBernardo / NAT. RES. / (916) 
          319-2092