BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 143
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          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     SB 143 (Rubio) - As Amended:  June 11, 2012 

          Policy Committee:                             Natural 
          ResourcesVote:6-1

          Urgency:     NO                   State Mandated Local Program: 
          No     Reimbursable:              No

           SUMMARY  

          This bill limits to two five-year periods the number of times a 
          lead agency may renew an idle surface mine's interim management 
          plan.

           FISCAL EFFECT  

          Negligible costs, if any, to the Department of Conservation.

           COMMENTS  

           1)Rationale.   The author describes this bill as cleanup to his 
            SB 108 (Chapter 491, Statutes of 2011), which, among other 
            things, allows a lead agency to renew an idle mine's interim 
            management plan every five years during which mining is 
            inactive, without limit.  The author describes this bill as 
            balancing the need of mine operators to temporarily curtail 
            activity at active mines during economic downturns and the 
            need of the state to ensure permanently inactive mines are 
            appropriately reclaimed.

           2)Background.   Under the Surface Mining and Reclamation Act 
            (SMARA), lead agencies must adopt a surface mining ordinance, 
            approved by the Department of Conservation's State Mining and 
            Geology Board, before approving mining operations in their 
            jurisdictions. The ordinance must specify requirements for 
            mine operation permits, as well as requirements for 
            reclamation plans and maintenance of financial assurances.

            In order to legally operate a mine, a mine operator must 
            possess a surface mining permit and an approved reclamation 








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            plan. In general, a reclamation plan describes the nature of 
            the surface mining operation and explains how the land will be 
            restored after mining ceases, noting such concerns as 
            controlling groundwater contamination, rehabilitating habitat, 
            and stabilizing geological features.  Operators must also 
            provide financial assurances to cover the costs the local 
            government or the state would incur if either has to reclaim 
            the land in the event the operator fails to do so. 


            SMARA also requires lead agencies annually to inspect all 
            mines in their jurisdictions. These inspections in part are to 
            determine whether mine operators are operating in accordance 
            with the approved reclamation plan and mining permit. Mine 
            operators are responsible for the cost of inspection.


            In addition, mine operators are required to report annually to 
            the lead agency and the department's Office of Mine 
            Reclamation. The report must describe the mining operation 
            during the previous calendar year and must include specified 
            information pertaining to ownership, production, land 
            disturbance and documentation of financial assurances, 
            reclamation plans and inspections. 


            A mining operation is legally considered idle if production is 
            curtailed by more than 90% of the previous maximum annual 
            mineral production for a period of one year or more and there 
            is intent to resume surface mining operations at a future 
            date.  An idle mine differs from an abandoned mine, in that 
            the latter is considered an active mine for which production 
            permanently has ceased and that must undergo reclamation, 
            consistent with a reclamation plan.  The operator of an idle 
            mine must submit an interim management plan to the lead 
            agency, which describes how the mine will be managed during 
            its idle period.  


           3)Support.   This bill is supported by The Sierra Fund, which 
            advocates for the preservation and restoration of the natural 
            resources of the Sierra Nevada.

           4)Opposition.   This bill is opposed by the Regional Council of 
            Rural Counties, who contend the bill threatens the ability of 








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            mine operators to keep their mines active.


           Analysis Prepared by  :    Jay Dickenson / APPR. / (916) 319-2081