BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 143
                                                                  Page 1

          Date of Hearing:  July 2, 2012

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                     SB 143 (Rubio) - As Amended:  June 11, 2012

           SENATE VOTE  :  23-13
           
          SUBJECT  :  Surface mining:  idle mines

           SUMMARY  :  Limits the renewal of an idle surface mining 
          operation's interim management plan (IMP) to one additional 
          five-year renewal period at the expiration of the first 
          five-year renewal period.

           EXISTING LAW  :  Pursuant to the Surface Mining and Reclamation 
          Act (SMARA).

          1)Prohibits conducting surface mining operations without first 
            obtaining a permit, submitting a reclamation plan, and 
            providing financial assurances to a lead agency, which is 
            usually a local government.

          2)Defines "reclamation" as the combined process of land 
            treatment that minimizes water degradation, air pollution, 
            damage to aquatic or wildlife habitat, flooding, erosion, and 
            other adverse effects from surface mining operations, 
            including adverse surface effects incidental to underground 
            mines, so that mined lands are reclaimed to a usable condition 
            which is readily adaptable for alternate land uses and create 
            no danger to public health or safety.  The process may extend 
            to affected lands surrounding mined lands, and may require 
            backfilling, grading, resoiling, revegetation, soil 
            compaction, stabilization, or other measures.

          3)Requires financial assurances from the surface mining operator 
            to ensure reclamation is performed in accordance with the 
            approved reclamation plan.

          4)Within 90 days of a surface mining operation becoming idle, 
            requires the operator of a surface mining operation to submit 
            an IMP to the lead agency for review and approval.  A mine has 
            become "idle" when an operator of a surface mining operation 
            has curtailed production at the surface mining operation, with 
            the intent to resume the surface mining operation at a future 








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            date, for a period of one year or more by more than 90 percent 
            of its maximum annual mineral production within any of the 
            last five years during which an interim management plan has 
            not been approved.

          5)Requires the IMP to provide measures that the operator will 
            implement to maintain the site.

          6)Allows the IMP to 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 IMP for an additional period not to exceed 
               five years, which may be renewed for additional five-year 
               periods at the expiration of each five-year period, if the 
               lead agency finds that the surface mining operator has 
               complied fully with the IMP.

             b)   Require the surface mining operator to commence 
               reclamation in accordance with its approved reclamation 
               plan.

          7)Requires the financial assurances to 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 IMP, the surface mining operation shall commence 
            reclamation in accordance with its approved reclamation plan.

           FISCAL EFFECT  :  Unknown.  This bill was gutted and amended after 
          it was heard in the Senate Appropriations Committee.

           COMMENTS  : According to a 2011 State Mining and Geology Board 
          (SMGB) report, "�l]ack of operator adherence to statutory 
          requirements can result in many surface mining operations 
          becoming abandoned even if such operations had an intent to 
          resume mining."  At the time of the SMGB report, 97 mines should 
          have had IMPs but only 35 had them, and 35 lead agencies (more 
          than 28% of all lead agencies in California) had mines that 
          required IMPs but did not have them in place.  In general, 
          before 2012, if an idle mine did not have an IMP, it was 
          considered abandoned and the operator was obligated to commence 
          and complete reclamation in accordance with the approved 
          reclamation plan.

          The SMGB report referenced the need for legislative action to 








                                                                  SB 143
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          provide relief to operators that failed to follow statutory 
          requirements for IMPs.  SB 108 (Rubio, 2011), among other 
          things, provides a brief amnesty period for mining operators who 
          did not adhere to SMARA's statutory requirements regarding IMPs. 
           SB 108 also allows a lead agency to renew an IMP every five 
          years.

          This bill contains SB 108 "cleanup" language.  Specifically, the 
          bill only allows a surface mining operation to obtain one 
          additional IMP renewal at the expiration of the first five-year 
          renewal period.  Currently, SB 108 allows unlimited renewals.  
          According to the author, who also authored SB 108:

               All mines may experience periods of idleness and may 
               encounter even more in the current economic downturn, 
               so the ability for an operator to be able to submit 
               and renew an Interim Management Plan is crucial.  
               However, it is critical that there is a limit to how 
               long a mine may remain idle before the reclamation 
               process must commence.  SB 143 strikes an important 
               balance between creating jobs and protecting the 
               environment by limiting it to two renewals. 
           
          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          The Sierra Fund
           
            Opposition 
           
          Regional Council of Rural Counties

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