BILL NUMBER: SB 143 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 11, 2012
AMENDED IN SENATE MAY 10, 2011
AMENDED IN SENATE MARCH 22, 2011
INTRODUCED BY Senator Rubio
JANUARY 31, 2011
An act to add the heading of Chapter 1 (commencing with
Section 38570) to, and to add Chapter 2 (commencing with Section
38575) to, Part 5 of Division 25.5 of the Health and Safety Code,
relating to air pollution. An act to amend Section
2770 of the Public Resources Code, relating to surface mining.
LEGISLATIVE COUNSEL'S DIGEST
SB 143, as amended, Rubio. California Global Warming
Solutions Act of 2006: greenhouse gas emission reduction offsets:
programs and incentives. Surface mining: idle mines.
The Surface Mining and Reclamation Act of 1975, with exceptions,
prohibits a person from conducting a surface mining operation unless,
among other things, a reclamation plan has been submitted to, and
approved by, the lead agency for the operation. The act requires an
operator, within 90 days of a surface mining operation becoming idle,
to submit to the lead agency for review and approval, an interim
management plan. The act authorizes an interim management plan to
remain in effect for a period not to exceed 5 years, after which, the
lead agency is authorized to take certain actions, including
renewing the interim management plan for additional 5-year periods at
the expiration of each 5-year period, if the lead agency finds that
the surface mining operator has complied fully with the interim
management plan.
This bill would authorize the lead agency to renew the interim
management plan for, at most, 2 additional 5-year renewal periods, if
the lead agency finds that the surface mining operator has complied
fully with the interim management plan.
The California Global Warming Solutions Act of 2006 designates the
State Air Resources Board as the state agency charged with
monitoring and regulating sources of emissions of greenhouse gases.
The state board is required to adopt a statewide greenhouse gas
emissions limit equivalent to the statewide greenhouse gas emissions
level in 1990 to be achieved by 2020, and to adopt rules and
regulations in an open public process to achieve the maximum
technologically feasible and cost-effective greenhouse gas emission
reductions. The state board is authorized to adopt market-based
compliance mechanisms, as defined, meeting specified requirements to
be used for compliance with those regulations.
This bill would require the state board, on or before July 1,
2012, to adopt methodologies for determining the quantity of
greenhouse gas emissions reduced through specified greenhouse gas
emission reduction programs. The bill would require the state board
to adopt regulations governing the creation of greenhouse gas
emission reduction offsets based on investments in those programs for
purposes of banking, trading, and using the offsets to comply with
the market-based compliance mechanism adopted by the state board. The
bill would require the state board to credit persons who invest in
those programs with greenhouse gas emission offsets, based on a
cost-effectiveness calculation determined by the state board, with
specified exceptions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2770 of the Public
Resources Code is amended to read:
2770. (a) Except as provided in this section, a person shall not
conduct surface mining operations unless a permit is obtained from, a
reclamation plan has been submitted to and approved by, and
financial assurances for reclamation have been approved by, the lead
agency for the operation pursuant to this article.
(b) A person with an existing surface mining operation who has
vested rights pursuant to Section 2776 and who does not have an
approved reclamation plan shall submit a reclamation plan to the lead
agency not later than March 31, 1988. If a reclamation plan
application is not on file by March 31, 1988, the continuation of the
surface mining operation is prohibited until a reclamation plan is
submitted to the lead agency. For purposes of this subdivision, a
reclamation plan may consist of all or the appropriate sections of
any plans or written agreements previously approved by the lead
agency or another agency, together with any additional documents
needed to substantially meet the requirements of Sections 2772 and
2773 and the lead agency surface mining ordinance adopted pursuant to
subdivision (a) of Section 2774, provided that all documents which
together were proposed to serve as the reclamation plan are submitted
for approval to the lead agency in accordance with this chapter.
(c) If a person with an existing surface mining operation has
received lead agency approval of its financial assurances for
reclamation prior to January 1, 1991, the lead agency shall
administratively review those existing financial assurances in
accordance with subdivision (d) prior to January 1, 1992. The review
of existing financial assurances shall not be considered a project
for purposes of Division 13 (commencing with Section 21000). A person
with an existing surface mining operation that does not have
financial assurances that received lead agency approval prior to
January 1, 1991, shall submit financial assurances for reclamation
for review in accordance with subdivision (d).
(d) The lead agency's review of a reclamation plan submitted
pursuant to subdivision (b) or of financial assurances pursuant to
subdivision (c) is limited to whether the plan or the financial
assurances substantially meet the applicable requirements of Sections
2772, 2773, and 2773.1, and the lead agency surface mining ordinance
adopted pursuant to subdivision (a) of Section 2774, but, in any
event, the lead agency shall require that financial assurances for
reclamation be sufficient to perform reclamation of lands remaining
disturbed. Reclamation plans or financial assurances determined to
substantially meet these requirements shall be approved by the lead
agency for purposes of this chapter. Reclamation plans or financial
assurances determined not to substantially meet these requirements
shall be returned to the operator within 60 days. The operator has 60
days to revise the plan or financial assurances to address
identified deficiencies, at which time the revised plan or financial
assurances shall be returned to the lead agency for review and
approval. Except as specified in subdivision (e) or (i), unless the
operator has filed on or before July 1, 1990, an appeal pursuant to
subdivision (e) with regard to nonapproval of the reclamation plan,
or has filed on or before January 1, 1994, an appeal pursuant to
subdivision (e) with regard to nonapproval of financial assurances,
and that appeal is pending before the board, the continuation of the
surface mining operation is prohibited until a reclamation plan and
financial assurances for reclamation are approved by the lead agency.
(e) A person who, based on the evidence of the record, can
substantiate that a lead agency has either (1) failed to act
according to due process or has relied on considerations not related
to the specific applicable requirements of Sections 2772, 2773, and
2773.1, and the lead agency surface mining ordinance adopted pursuant
to subdivision (a) of Section 2774, in reaching a decision to deny
approval of a reclamation plan or financial assurances for
reclamation, (2) failed to act within a reasonable time of receipt of
a completed application, or (3) failed to review and approve
reclamation plans or financial assurances as required by subdivisions
(c) and (d), may appeal that action or inaction to the board.
(f) The board may decline to hear an appeal if it determines that
the appeal raises no substantial issues related to the lead agency's
review pursuant to this section.
(g) Appeals that the board does not decline to hear shall be
scheduled and heard at a public hearing within 45 days of the filing
of the appeal, or a longer period as may be mutually agreed upon by
the board and the person filing the appeal. In hearing an appeal, the
board shall only determine whether the reclamation plan or the
financial assurances substantially meet the applicable requirements
of Sections 2772, 2773, and 2773.1, and the lead agency surface
mining ordinance adopted pursuant to subdivision (a) of Section 2774.
A reclamation plan or financial assurances determined to meet these
requirements shall be approved. A reclamation plan or financial
assurances determined not to meet these requirements shall be
returned to the person filing the appeal with a notice of
deficiencies, who shall be granted, once only, a period of 30 days,
or a longer period mutually agreed upon by the operator and the
board, to correct the noted deficiencies and submit the revised
reclamation plan or the revised financial assurances to the lead
agency for review and approval.
(h) (1) Within 90 days of a surface mining operation becoming
idle, as defined in Section 2727.1, the operator shall submit to the
lead agency for review and approval, an interim management plan. The
review and approval of an interim management plan shall not be
considered a project for purposes of Division 13 (commencing with
Section 21000). The approved interim management plan shall be
considered an amendment to the surface mining operation's approved
reclamation plan, for purposes of this chapter. The interim
management plan shall provide measures the operator will implement to
maintain the site in compliance with this chapter, including, but
not limited to, all permit conditions.
(2) The interim management plan may remain in effect for a period
not to exceed five years, at which time the lead agency shall do one
of the following:
(A) Renew the interim management plan for an additional period not
to exceed five years, which may be renewed for one
additional five-year periods renewal period
at the expiration of each the first
five-year renewal period, if the lead agency finds
that the surface mining operator has complied fully with the interim
management plan.
(B) Require the surface mining operator to commence reclamation in
accordance with its approved reclamation plan.
(3) The financial assurances required by Section 2773.1 shall
remain in effect during the period that the surface mining operation
is idle. If the surface mining operation is still idle after the
expiration of its interim management plan, the surface mining
operation shall commence reclamation in accordance with its approved
reclamation plan.
(4) Within 60 days of the receipt of the interim management plan,
or a longer period mutually agreed upon by the lead agency and the
operator, the lead agency shall review and approve the plan in
accordance with its ordinance adopted pursuant to subdivision (a) of
Section 2774, so long as the plan satisfies the requirements of this
subdivision, and so notify the operator in writing. Otherwise, the
lead agency shall notify the operator in writing of any deficiencies
in the plan. The operator shall have 30 days, or a longer period
mutually agreed upon by the operator and the lead agency, to submit a
revised plan.
(5) The lead agency shall approve or deny approval of the revised
interim management plan within 60 days of receipt. If the lead agency
denies approval of the revised interim management plan, the operator
may appeal that action to the lead agency's governing body, which
shall schedule a public hearing within 45 days of the filing of the
appeal, or a longer period mutually agreed upon by the operator and
the governing body.
(6) Unless review of an interim management plan is pending before
the lead agency, or an appeal is pending before the lead agency's
governing body, a surface mining operation that remains idle for over
one year after becoming idle as defined in Section 2727.1 without
obtaining approval of an interim management plan shall be considered
abandoned and the operator shall commence and complete reclamation in
accordance with the approved reclamation plan.
(i) An enforcement action that may be brought against a surface
mining operation for operating without an approved reclamation plan,
financial assurance, or interim management plan shall be held in
abeyance pending review pursuant to subdivision (b), (c), (d), or
(h), or the resolution of an appeal filed with the board pursuant to
subdivision (e), or with a lead agency governing body pursuant to
subdivision (h).
SECTION 1. The heading of Chapter 1 (commencing
with Section 38570) is added to Part 5 of Division 25.5 of the
Health and Safety Code, to read:
CHAPTER 1. GENERAL PROVISIONS
SEC. 2. Chapter 2 (commencing with Section
38575) is added to Part 5 of Division 25.5 of the Health and Safety
Code, to read:
CHAPTER 2. INCENTIVES FOR CALIFORNIA GREENHOUSE GAS EMISSION
OFFSETS
38575. The Legislature finds and declares all of the following:
(a) This division provides for the adoption of rules and
regulations to achieve the maximum technologically feasible and
cost-effective greenhouse gas emission reductions to achieve the
state's greenhouse gas emission reduction goals, and authorizes the
state board to provide for the use of market-based compliance
mechanisms to meet the requirements of this division.
(b) This division directs the state board to ensure that the
greenhouse gas emission reduction rules, regulations, programs,
mechanisms, and incentives under its jurisdiction, to the extent
feasible, direct public and private investment toward the most
disadvantaged communities in California.
(c) The state board has adopted a regulation to establish a
cap-and-trade market-based mechanism designed to achieve the
statewide greenhouse gas emission reductions required by this
division.
(d) The creation, banking, trading, and use of greenhouse gas
emission offsets can help regulated entities further reduce the cost
to comply with their cap-and-trade compliance obligations.
38576. (a) On or before July 1, 2012, and in accordance with
Section 38571, the state board shall adopt methodologies for
determining the quantity of greenhouse gas emission reductions
resulting from implementation of all of the following programs:
(1) Voluntary energy efficiency programs.
(2) Distributed electricity generation programs, including the
California Solar Initiative.
(3) Programs adopted and implemented by the Public Utilities
Commission and the State Energy Resources Conservation and
Development Commission that may reduce greenhouse gas emissions in
the state.
(b) Each methodology adopted pursuant to subdivision (a) shall
include a determination of the cost-effectiveness of the program for
which the methodology is adopted, specified in dollars per ton of
greenhouse gas emissions reduced. The state board shall update the
cost-effectiveness determinations from time to time, upon determining
that an update is needed.
38577. (a) (1) Commencing on July 1, 2012, for purposes of
complying with the market-based compliance mechanism adopted by the
state board pursuant to Section 38570, a person may invest in a
program for which an emission reduction methodology has been adopted
by the state board pursuant to subdivision (a) of Section 38576.
(2) For purposes of this subdivision, the state board shall adopt
regulations creating greenhouse gas emission reduction offsets that
may be banked, traded, or used for compliance with the market-based
compliance mechanism adopted by the state board pursuant to Section
38570.
(b) A person who invests in a program pursuant to subdivision (a)
shall be credited by the state board with a quantity of greenhouse
gas emission offsets that shall be determined by dividing the dollar
amount of the investment by the current cost-effectiveness of that
program, as determined by the state board pursuant to subdivision (b)
of Section 38576.
(c) Notwithstanding subdivision (b), a person or entity shall not
be credited with a greenhouse gas emission offset pursuant to
subdivision (b) for undertaking a project that is required by law or
regulation, or for which the person or entity has received another
greenhouse gas emission offset.