Bill Text: CA SB209 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Surface mining: financial assurances: reclamation plans.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2016-04-18 - Chaptered by Secretary of State. Chapter 8, Statutes of 2016. [SB209 Detail]

Download: California-2015-SB209-Amended.html
BILL NUMBER: SB 209	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 17, 2016
	AMENDED IN ASSEMBLY  SEPTEMBER 4, 2015
	AMENDED IN ASSEMBLY  SEPTEMBER 2, 2015
	AMENDED IN ASSEMBLY  AUGUST 17, 2015
	AMENDED IN ASSEMBLY  JULY 16, 2015
	AMENDED IN ASSEMBLY  JULY 7, 2015
	AMENDED IN SENATE  MAY 12, 2015
	AMENDED IN SENATE  MARCH 19, 2015

INTRODUCED BY   Senator Pavley

                        FEBRUARY 11, 2015

   An act to amend Sections 607, 2207,  2714, 2770, 2772, and
2774   and 2714  of, and to add Sections 
2006.5   2006.5, 2770.1,  and 2773.1.5 to, the
Public Resources Code, relating to surface mining.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 209, as amended, Pavley. Surface mining:  inspections:
 financial assurances: reclamation plans.
   (1) Existing law establishes the Office of Mine Reclamation within
the Department of Conservation. Existing law requires the State
Mining and Geology Board to impose, by regulation, an annual
reporting fee on the operators of all active and idle mining
operations. Existing law requires the maximum amount of the annual
fee imposed on each mining operation to not exceed $4,000. Existing
law limits the maximum amount of the total revenue generated from the
reporting fee to no more than $3,500,000, as specified.
   This bill would instead establish the Division of  Mines
  Mine Reclamation  within the department under the
direction of the Supervisor of  Mines and  
Mine  Reclamation. The bill also would raise the maximum amount
of the annual reporting fee to $10,000 per mining operation, except
as specified. The bill would raise the maximum amount of the total
revenue generated from the reporting fee to $8,000,000, as specified.

   (2) The Surface Mining and Reclamation Act of 1975 prohibits a
person, with exceptions, from conducting surface mining operations
unless, among other things, a permit is obtained from, a specified
reclamation plan is submitted to and approved by, and financial
assurances for reclamation have been approved by the lead agency for
the operation of the surface mining operation. 
   This bill would revise and recast provisions of the act related to
the approval of reclamation plans and, among other things, would
require a reclamation plan filed by an operator of a surface mining
operation with a lead agency to include specified reclamation maps
and would require a borrow pit operated by a lead agency to include a
specified interim management plan. By adding to the duties of a
local government acting as a lead agency under the act, this bill
would impose a state-mandated local program.  
   This bill would require a lead agency that is the owner or
operator of a borrow pit surface mining operation that is used solely
by that lead agency to include in the reclamation plan maintenance
measures that become effective when the borrow pit surface mining
operation is idle or to obtain an approved interim management plan,
as specified. The bill would authorize a lead agency to conduct an
inspection once every 2 calendar years during a period when the
borrow pit surface mining operation that is used solely by that lead
agency is idle. 
   This bill  would revise and recast provisions of the act
related to the proof of financial assurances and, among other things,
 would allow an operator, after the board has adopted a
specified regulation, to include in a financial assurance mechanism a
corporate financial test, as described. 
   This bill would authorize a lead agency to cause an inspection to
be conducted by an unlicensed employee who meets specified criteria;
impose new requirements on the lead agency relating to the timing of
inspections; and require the department to establish, no later than
December 31, 2016, a training program for all surface mine
inspectors, as specified. By adding to the duties of a local
government acting as a lead agency under the act, this bill would
impose a state-mandated local program. 
   (3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   (4) This bill would make its operation contingent on the enactment
of Assembly Bill 1142 of the 2015-16 Regular Session.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 607 of the Public Resources Code is amended to
read:
   607.  The work of the department shall be divided into at least
the following:
   (a) California Geological Survey.
   (b) Division of Oil, Gas, and Geothermal Resources.
   (c) Division of Land Resource Protection.
   (d) Division of  Mines.   Mine Reclamation.

  SEC. 2.  Section 2006.5 is added to the Public Resources Code, to
read:
   2006.5.  "Supervisor of  Mines and   Mine
 Reclamation" means the individual directing the Division of
 Mines   Mine Reclamation  established
pursuant to subdivision (d) of Section 607.
  SEC. 3.  Section 2207 of the Public Resources Code is amended to
read:
   2207.  (a) The owner or the operator of a mining operation within
the state shall forward to the director annually, not later than a
date established by the director, upon forms approved by the board
from time to time, a report that identifies all of the following:
   (1) The name, address, and telephone number of the person,
company, or other owner of the mining operation.
   (2) The name, address, and telephone number of a designated agent
who resides in this state, and who will receive and accept service of
all orders, notices, and processes of the lead agency, board,
director, or court.
   (3) The location of the mining operation, its name, its mine
number as issued by the Division of  Mines  
Mine Reclamation  or the director, its section, township, range,
latitude, longitude, and approximate boundaries of the mining
operation marked on a United States Geological Survey 71/2-minute or
15-minute quadrangle map.
   (4) The lead agency.
   (5) The approval date of the mining operation's reclamation plan.
   (6) The mining operation's status as active, idle, reclaimed, or
in the process of being reclaimed.
   (7) The commodities produced by the mine and the type of mining
operation.
   (8) A copy of the previously completed annual inspection form and
a requested date, within 12 months of the prior inspection date, for
the next annual inspection by the lead agency.
   (9) Proof of financial assurances.
   (10) Ownership of the property, including government agencies, if
applicable, by the assessor's parcel number, and total assessed value
of the mining operation.
   (11) The approximate permitted size of the mining operation
subject to Chapter 9 (commencing with Section 2710), in acres.
   (12) The approximate total acreage of land newly disturbed by the
mining operation during the previous calendar year.
   (13) The approximate total of disturbed acreage reclaimed during
the previous calendar year.
   (14) The approximate total unreclaimed disturbed acreage remaining
as of the end of the calendar year.
   (15) The total production for each mineral commodity produced
during the previous year.
   (16) A copy of any approved reclamation plan and any amendments or
conditions of approval to any existing reclamation plan approved by
the lead agency.
   (b) (1) Every year, not later than the date established by the
director, the person submitting the report pursuant to subdivision
(a) shall forward to the lead agency, upon forms furnished by the
board, a report that provides all of the information specified in
subdivision (a).
   (2) The owner or operator of a mining operation shall allow access
to the property to any governmental agency or the agent of any
company providing financial assurances in connection with the
reclamation plan in order that the reclamation can be carried out by
the entity or company, in accordance with the provisions of the
reclamation plan.
   (c) Subsequent reports shall include only changes in the
information submitted for the items described in subdivision (a),
except that, instead of the approved reclamation plan, the reports
shall include any reclamation plan amendments approved during the
previous year. The reports shall state whether review of a
reclamation plan, financial assurances, or an interim management plan
is pending under subdivision (h) of Section 2770, or whether an
appeal before the board or lead agency governing body is pending
under subdivision (e) or (h) of Section 2770. The director shall
notify the person submitting the report and the owner's designated
agent in writing that the report and the fee required pursuant to
subdivision (d) have been received, specify the mining operation's
mine number if one has not been issued by the Division of 
Mines,   Mine Reclamation,  and notify the person
and agent of any deficiencies in the report within 90 days of
receipt. That person or agent shall have 30 days from receipt of the
notification to correct the noted deficiencies and forward the
revised report to the director and the lead agency. Any person who
fails to comply with this section, or knowingly provides incorrect or
false information in reports required by this section, may be
subject to an administrative penalty as provided in subdivision (c)
of Section 2774.1.
   (d) (1) The board shall impose, by regulation, pursuant to
paragraph (2), an annual reporting fee on, and method for collecting
annual fees from, each active or idle mining operation. The maximum
fee for any single mining operation may not exceed ten thousand
dollars ($10,000) annually and may not be less than one hundred
dollars ($100) annually, as adjusted for the cost of living as
measured by the California Consumer Price Index for all urban
consumers, calendar year averages, using the percentage change in the
previous year, except that the maximum fee for any single mining
operation shall not exceed six thousand dollars ($6,000) in the
 2016-17   2017-18  fiscal year and eight
thousand dollars ($8,000) in the  2017-18  
2018-19  fiscal year.
   (2) (A) The board shall adopt, by regulation, a schedule of fees
authorized under paragraph (1) to cover the department's cost in
carrying out this section and Chapter 9 (commencing with Section
2710), as reflected in the Governor's proposed Budget, and may adopt
those regulations as emergency regulations. In establishing the
schedule of fees to be paid by each active and idle mining operation,
the fees shall be calculated on an equitable basis reflecting the
size and type of operation. The board shall also consider the total
assessed value of the mining operation, the acreage disturbed by
mining activities, and the acreage subject to the reclamation plan.
   (B) Regulations adopted pursuant to this subdivision shall be
adopted by the board in accordance with the Administrative Procedure
Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code). The adoption of any
emergency regulations pursuant to this subdivision shall be
considered necessary to address an emergency and shall be considered
by the Office of Administrative Law to be necessary for the immediate
preservation of the public peace, health, safety, and general
welfare.
   (3) The total revenue generated by the reporting fees may not
exceed, and may be less than, the amount of eight million dollars
($8,000,000), as adjusted for the cost of living as measured by the
California Consumer Price Index for all urban consumers, calendar
year averages, using the percentage change in the previous year,
beginning with the  2016-17   2017-18 
fiscal year and annually thereafter. If the director determines that
the revenue collected during the preceding fiscal year was greater or
less than the cost to operate the program, the board shall adjust
the fees to compensate for the overcollection or undercollection of
revenues.
   (4) (A) The reporting fees established pursuant to this
subdivision shall be deposited in the Mine Reclamation Account, which
is hereby created. Any fees, penalties, interest, fines, or charges
collected by the director or board pursuant to this chapter or
Chapter 9 (commencing with Section 2710) shall be deposited in the
Mine Reclamation Account. The money in the account shall be available
to the department and board, upon appropriation by the Legislature,
for the purpose of carrying out this section and complying with
Chapter 9 (commencing with Section 2710), which includes, but is not
limited to, classification and designation of areas with mineral
resources of statewide or regional significance, reclamation plan and
financial assurance review, mine inspection, and enforcement.
   (B) (i) In addition to reporting fees, the board shall collect
five dollars ($5) per ounce of gold and ten cents ($0.10) per ounce
of silver mined within the state and shall deposit the fees collected
in the Abandoned Mine Reclamation and Minerals Fund Subaccount,
which is hereby created in the Mine Reclamation Account. The
department may expend the moneys in the subaccount, upon
appropriation by the Legislature, for only the purposes of Section
2796.5 and as authorized herein for the remediation of abandoned
mines.
   (ii) Notwithstanding subdivision (j) of Section 2796.5, fees
collected pursuant to clause (i) may also be used to remediate
features of historic abandoned mines and lands that they impact. For
the purposes of this section, historic abandoned mines are mines for
which operations have been conducted before January 1, 1976, and
include, but are not limited to, historic gold and silver mines.
   (5) In case of late payment of the reporting fee, a penalty of not
less than one hundred dollars ($100) or 10 percent of the amount
due, whichever is greater, plus interest at the rate of 11/2 percent
per month, computed from the delinquent date of the assessment until
and including the date of payment, shall be assessed. New mining
operations that have not submitted a report shall submit a report
prior to commencement of operations. The new operation shall submit
its fee according to the reasonable fee schedule adopted by the
board, and the month that the report is received shall become that
operation's anniversary month.
   (e) The lead agency, or the board when acting as the lead agency,
may impose a fee upon each mining operation to cover the reasonable
costs incurred in implementing this chapter and Chapter 9 (commencing
with Section 2710).
   (f) For purposes of this section, "mining operation" means a
mining operation of any kind or character whatever in this state,
including, but not limited to, a mining operation that is classified
as a "surface mining operation" as defined in Section 2735, unless
excepted by Section 2714. For the purposes of fee collections only,
"mining operation" may include one or more mines operated by a single
operator or mining company on one or more sites, if the total annual
combined mineral production for all sites is less than 100 troy
ounces for precious metals, if precious metals are the primary
mineral commodity produced, or less than 100,000 short tons if the
primary mineral commodity produced is not precious metals.
   (g) Any information in reports submitted pursuant to subdivision
(a) that includes or otherwise indicates the total mineral
production, reserves, or rate of depletion of any mining operation
may not be disclosed to any member of the public, as defined in
subdivision (b) of Section 6252 of the Government Code. Other
portions of the reports are public records unless excepted by
statute. Statistical bulletins based on these reports and published
under Section 2205 shall be compiled to show, for the state as a
whole and separately for each lead agency, the total of each mineral
produced therein. In order not to disclose the production, reserves,
or rate of depletion from any identifiable mining operation, no
production figure shall be published or otherwise disclosed unless
that figure is the aggregated production of not less than three
mining operations. If the production figure for any lead agency would
disclose the production, reserves, or rate of depletion of less than
three mining operations or otherwise permit the reasonable inference
of the production, reserves, or rate of depletion of any
identifiable mining operation, that figure shall be combined with the
same figure of not less than two other lead agencies without regard
to the location of the lead agencies. The bulletin shall be published
annually by June 30 or as soon thereafter as practicable.
   (h) The approval of a form by the board pursuant to this section
is not the adoption of a regulation for purposes of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code) and
is not subject to that act.
  SEC. 4.  Section 2714 of the Public Resources Code is amended to
read:
   2714.  This chapter does not apply to any of the following
activities:
   (a) Excavations or grading of lands conducted for farming.
   (b) Onsite excavation and onsite earthmoving activities that are
integral and necessary for the construction of structures and that
are undertaken to prepare a site for the construction of those
structures, including landscaping or other land improvements
associated with those structures, including the related excavation,
grading, compaction, or the creation of fills, road cuts, and
embankments, whether or not surplus materials are exported from the
site, subject to all of the following conditions:
   (1) All required permits for the construction and any associated
landscaping or related land improvements have been approved by a
public agency in accordance with applicable provisions of state law
and locally adopted plans and ordinances, including, but not limited
to, the California Environmental Quality Act (Division 13 (commencing
with Section 21000)).
   (2) The lead agency's approval of the construction project
included consideration of the onsite excavation and onsite
earthmoving activities pursuant to the California Environmental
Quality Act (Division 13 (commencing with Section 21000)).
   (3) The approved construction project is consistent with the
general plan or zoning of the site.
   (4) Surplus materials shall not be exported from the site unless
and until actual construction work has commenced and shall cease if
it is determined that construction activities have terminated, have
been indefinitely suspended, or are no longer being actively pursued.

   (c) Operation of a plant site used for mineral processing,
including associated onsite structures, equipment, machines, tools,
or other materials, including the onsite stockpiling and onsite
recovery of mined materials, subject to all of the following
conditions:
   (1) The plant site is located on lands designated for industrial
or commercial uses in the applicable county or city general plan.
   (2) The plant site is located on lands zoned industrial or
commercial or are contained within a zoning category intended
exclusively for industrial activities by the applicable city or
county.
   (3) None of the minerals being processed are being extracted
onsite.
   (4) All reclamation work has been completed pursuant to the
approved reclamation plan for any mineral extraction activities that
occurred onsite after January 1, 1976.
   (d) 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.
   (e) Surface mining operations that are required by federal law in
order to protect a mining claim, if those operations are conducted
solely for that purpose.
   (f) Any other surface mining operations that the board determines
to be of an infrequent nature and that involve only minor surface
disturbances.
   (g) The solar evaporation of sea water or bay water for the
production of salt and related minerals.
   (h) Emergency excavations or grading conducted by the Department
of Water Resources or the Central Valley Flood Protection Board for
the purpose of averting, alleviating, repairing, or restoring damage
to property due to imminent or recent floods, disasters, or other
emergencies.
   (i) (1) Surface mining operations conducted on lands owned or
leased, or upon which easements or rights-of-way have been obtained,
by the Department of Water Resources for the purpose of the State
Water Resources Development System or flood control, and surface
mining operations on lands owned or leased, or upon which easements
or rights-of-way have been obtained, by the Central Valley Flood
Protection Board for the purpose of flood control, if the Department
of Water Resources adopts, after submission to and consultation with,
the department, a reclamation plan for lands affected by these
activities, and those lands are reclaimed in conformance with the
standards specified in regulations of the board adopted pursuant to
this chapter. The Department of Water Resources shall provide an
annual report to the department by the date specified by the
department on these mining activities.
   (2) Nothing in this subdivision shall require the Department of
Water Resources or the Central Valley Flood Protection Board to
obtain a permit or secure approval of a reclamation plan from any
city or county in order to conduct surface mining operations
specified in paragraph (1). Nothing in this subdivision shall
preclude the bringing of an enforcement action pursuant to Section
2774.1, if it is determined that a surface mine operator, acting
under contract with the Department of Water Resources or the Central
Valley Flood Protection Board on lands other than those owned or
leased, or upon which easements or rights-of-way have been obtained,
by the Department of Water Resources or the Central Valley Flood
Protection Board, is otherwise not in compliance with this chapter.
   (j) (1) Excavations or grading for the exclusive purpose of
obtaining materials for roadbed construction and maintenance
conducted in connection with timber operations or forest management
on land owned by the same person or entity. This exemption is limited
to excavation and grading that is conducted adjacent to timber
operation or forest management roads and shall not apply to onsite
excavation or grading that occurs within 100 feet of a Class One
watercourse or 75 feet of a Class Two watercourse, or to excavation
for materials that are, or have been, sold for commercial purposes.
   (2) This exemption shall be available only if slope stability and
erosion are controlled in accordance with subdivision (f) of Section
3704 and subdivision (d) of Section 3706 of Title 14 of the
California Code of Regulations and, upon closure of the site, the
person closing the site implements, where necessary, revegetation
measures and postclosure uses in consultation with the Department of
Forestry and Fire Protection.
   (k) Excavations, grading, or other earthmoving activities in an
oil or gas field that are integral to and necessary for ongoing
operations for the extraction of oil or gas that comply with all of
the following conditions:
   (1) The operations are being conducted in accordance with Division
3 (commencing with Section 3000).
   (2) The operations are consistent with any general plan or zoning
applicable to the site.
   (3) The earthmoving activities are within oil or gas field
properties under a common owner or operator.
   (4) No excavated materials are sold for commercial purposes.
   (l) (1) The immediate excavation or grading of lands affected by a
natural disaster for the purpose of restoring those lands to their
prior condition.
   (2) The immediate removal of material deposited by a flood onto
lands being farmed for the purpose of restoring those lands to their
prior condition. 
  SEC. 5.    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.
   (c)  Reserved]
   (d) Reserved]
   (e) (1) A person who can substantiate, based on the evidence of
the record, 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, 2772.1, 2773,
2773.1, 2773.3, and 2773.4 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, or (2) failed to act within a
reasonable time of receipt of a completed application may appeal that
action or inaction to the board.
   (2) The director may appeal a lead agency's approval of a
financial assurance cost estimate to the board if the director has
commented pursuant to Section 2773.4 that the financial assurance
cost estimate is inadequate based on consideration of the following:
   (A) Section 2773.1.
   (B) Article 11 (commencing with Section 3800) of Title 14 of the
California Code of Regulations.
   (C) The board's financial assurance guidelines adopted pursuant to
subdivision (f) of Section 2773.1
   (3) If the approved financial assurance cost estimate applies to a
reclamation plan approved for a new surface mining operation, an
expanded surface mining operation, or an interim financial assurance
due to an order to comply, stipulated or otherwise, the operator
shall provide a financial assurance mechanism pursuant to subdivision
(e) of Section 2773.4 in the amount of the approved financial
assurance cost estimate, notwithstanding an appeal filed pursuant to
this subdivision and subject to modification pending the outcome of
the appeal.
   (4) If the approved financial assurance cost estimate is an update
to an existing approved financial assurance cost estimate, the
existing financial assurance mechanism shall remain in place and
shall not be adjusted until a final determination by the board on the
appeal filed pursuant to this subdivision.
   (f) (1) The board may decline to hear an appeal if it determines
that the appeal raises no substantial issues related to the lead
agency's decision to deny approval of a reclamation plan or financial
assurance or the timeliness in reviewing a completed application. An
appeal filed by the director shall be heard by the board.
   (2) If the board takes up an appeal, the appeal shall be scheduled
and heard at a public hearing within 45 days of the filing of the
appeal or a longer period may be mutually agreed upon by the board,
the appellant, and the operator or the board, the director, and the
operator.
   (g) (1) (A) When hearing an appeal filed pursuant to subdivision
(e), the board shall determine whether the reclamation plan or the
financial assurance cost estimate substantially meets the applicable
requirements of Sections 2772, 2772.1, 2773, 2773.1, 2773.3, and
2773.4, and Article 1 (commencing with Section 3500), Article 9
(commencing with Section 3700), and Article 11 (commencing with
Section 3800) of Chapter 8 of Division 2 of Title 14 of the
California Code of Regulations, and the lead agency's surface mining
ordinance adopted pursuant to subdivision (a) of Section 2774. The
board shall approve or uphold a reclamation plan or financial
assurance cost estimate determined to meet those applicable
requirements. In any event, the total amount of financial assurances
required for any one year shall not exceed the amount necessary to
perform reclamation of lands remaining disturbed.
   (B) For purposes of this subdivision, "substantially" means actual
compliance in respect to the substance and form requirements
essential to the objectives of this chapter.
   (2) (A) A reclamation plan determined not to meet the applicable
requirements of Sections 2772, 2772.1, 2773, 2773.1, 2773.3, and
2773.4 and the lead agency's surface mining ordinance adopted
pursuant to subdivision (a) of Section 2774 shall be returned to the
operator with a notice of deficiencies. The operator shall be
granted, once only, a period of 30 days or a longer period mutually
agreed upon by the operator and the board to do both of the
following:
   (i) Correct the noted deficiencies.
   (ii) Submit the revised reclamation plan to the lead agency for
review and approval.
   (B) Within 10 days of the hearing, the board shall provide notice
via certified mail to the lead agency, the operator, and the
department of the board's determination. The notice shall include
instructions to the operator to submit to the lead agency for
approval a revised reclamation plan consistent with the board's
determination.
   (3) (A) If the board determines the lead agency's approved
financial assurance cost estimate does not meet the requirements of
Sections 2773.1 and 2773.4, and Article 11 (commencing with Section
3800) of Chapter 8 of Division 2 of Title 14 of the California Code
of Regulations, and the board's financial assurance guidelines
adopted pursuant to subdivision (f) of Section 2773.1, the board
shall note the deficiencies and, based on the record, include
adequate cost estimates for each noted deficiency.
   (B) Within 10 days of the hearing, the board shall provide notice
via certified mail to the lead agency, the operator, and the
department of the board's determination with instructions to the
operator to submit to the lead agency for approval a revised
financial assurance cost estimate
          consistent with the board's determination. The instructions
shall include a reasonable submission deadline of not less than 30
days.
   (C) The lead agency shall approve the revised financial assurance
cost estimate. That approval shall supersede and void the prior
approved financial assurance cost estimate.
   (D) A financial assurance mechanism shall be established by the
operator pursuant to subdivision (e) of Section 2773.4 following the
approval of the financial assurance cost estimate.
   (E) The failure of the operator to submit to the lead agency a
revised financial assurance cost estimate consistent with the board's
determination and deadline may be grounds for the issuance of an
order to comply pursuant to subdivision (a) of Section 2774.1.
   (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 the California Environmental
Quality Act (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) Except for an interim management plan for a borrow pit surface
mining operation owned or operated by the lead agency solely for use
by the lead agency, an 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 renewal period at the expiration of 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 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 operator 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.
   (7) If a lead agency owns or operates a borrow pit surface mining
operation that is solely for use by the lead agency, then all of the
following apply:
   (A) The borrow pit surface mining operation is exempt from the
requirements of this subdivision.
   (B) The lead agency shall maintain financial assurances while the
borrow pit surface mining operation is idle.
   (C) The lead agency may obtain an interim management plan for the
borrow pit surface mining to comply with subdivision (b) of Section
2772. That interim management plan shall not expire.
   (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 (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).
   (j) Notwithstanding paragraph (1) of subdivision (b) of Section
2774, a lead agency may inspect every two years a borrow pit surface
mining operation that is solely for use by the lead agency while that
surface mining operation is idle.  
  SEC. 6.    Section 2772 of the Public Resources
Code is amended to read:
   2772.  (a) The reclamation plan shall be filed with the lead
agency, on a form provided by the lead agency, by any person who
owns, leases, or otherwise controls or operates on all or any portion
of any mined lands and who plans to conduct surface mining
operations on the lands.
   (b) In addition to the other requirements for a reclamation plan
set forth in this section, a reclamation plan for a borrow pit
surface mining operation owned or operated by the lead agency solely
for use by the lead agency shall include maintenance measures that
become effective when the borrow pit surface mining operation is
idle.
   (c) The reclamation plan shall include all of the following
information and documents:
   (1) The name and address of the operator and the names and
addresses of any persons designated by the operator as an agent for
the service of process.
   (2) The anticipated quantity and type of minerals for which the
surface mining operation is to be conducted.
   (3) The proposed dates for the initiation and termination of the
surface mining operation.
   (4) The maximum anticipated depth of the surface mining operation.

   (5) A reclamation plan map or maps that shall include all of the
following:
   (A) Size and legal description of the lands that will be affected
by the surface mining operation and the names and addresses of the
owners of all surface interests and mineral interests in the lands.
   (B) Clearly defined and accurately drawn property lines, setbacks,
easements, and the reclamation plan boundary.
   (C) Existing topography and final topography depicted with contour
lines drawn at appropriate intervals for the site's conditions.
   (D) Detailed geologic description of the area of the surface
mining operation.
   (E) Location of railroads, utility facilities, access roads,
temporary roads to be reclaimed, and any roads remaining for the
approved end use.
   (F) All maps, diagrams, or calculations that require preparation
in accordance with the Professional Engineers Act (Chapter 7
(commencing with Section 6700) of Division 3 of the Business and
Professions Code), the Geologist and Geophysicist Act (Chapter 12.5
(commencing with Section 7800) of Division 3 of the Business and
Professions Code), or the Professional Land Surveyors' Act (Chapter
15 (commencing with Section 8700) of Division 3 of the Business and
Professions Code) shall be prepared by an appropriately licensed
California-licensed professional, shall include his or her license
number and name, and shall bear the signature and seal of the
licensee.
   (6) A description of and a plan for the type of surface mining to
be employed and a time schedule that will provide for the completion
of surface mining on each segment of the mined lands so that
reclamation can be initiated at the earliest possible time on those
portions of the mined lands that will not be subject to further
disturbance by the surface mining operation.
   (7) A description of the proposed use or potential uses of the
mined lands after reclamation and evidence that all owners of a
possessory interest in the land have been notified of the proposed
use or potential uses.
   (8) A description of the manner in which reclamation, adequate for
the proposed use or potential uses, will be accomplished, including
both of the following:
   (A) A description of the manner in which known contaminants will
be controlled and mining waste will be disposed.
   (B) A description of the manner in which affected streambed
channels and streambanks will be rehabilitated to a condition that
minimizes erosion and sedimentation.
   (9) An assessment of the effect of implementation of the
reclamation plan on future mining in the area.
   (10) A statement that the person submitting the reclamation plan
accepts responsibility for reclaiming the mined lands in accordance
with the reclamation plan.
   (11) Any other information that the lead agency may require by
ordinance.
   (12) A chart identifying the page number, chapter, appendix, or
other specific location in the reclamation plan where content meeting
the requirements, as applicable, of Sections 2772, 2773, and 2773.3
and Article 1 (commencing with Section 3500) and Article 9
(commencing with Section 3700) of Chapter 8 of Division 2 of Title 14
of the California Code of Regulations is located.
   (d) An item of information or a document required pursuant to
subdivision (c), that has already been prepared as part of a permit
application for the surface mining operation, or as part of an
environmental document prepared for the project pursuant to the
California Environmental Quality Act (Division 13 (commencing with
Section 21000)) may be included in the reclamation plan by reference,
if that item of information or that document is attached to the
reclamation plan when the lead agency submits the reclamation plan to
the director for review. To the extent the information, document, or
component of a document referenced in the reclamation plan is used
to meet the requirements of subdivision (c) or Section 2773 or
2773.3, the information, document, or component of a document shall
become part of the reclamation plan and shall be subject to all other
requirements of this article.
   (e) This section does not limit or expand the Supervisor of Mines
and Reclamation's authority or responsibility to review a document in
accordance with the California Environmental Quality Act (Division
13 (commencing with Section 21000)). 
   SEC. 5.    Section 2770.1 is added to the  
Public Resources Code   , to read:  
   2770.1.  For the purposes of a borrow pit surface mining operation
that is owned or operated by a lead agency solely for use by that
lead agency, all of the following shall apply:
   (a) (1) In addition to the requirements of Sections 2772 and 2773,
the lead agency shall include in its reclamation plan maintenance
measures that become effective when the borrow pit surface mining
operation is idle. The maintenance measures shall maintain the site
in compliance with this chapter while the borrow pit surface mining
operation is idle.
   (2) Notwithstanding paragraph (1), a lead agency may obtain an
interim management plan pursuant to subdivision (h) of Section 2770.
   (3) A lead agency that complies with this subdivision shall be
exempt from the requirements of paragraph (6) of subdivision (h) of
Section 2770.
   (b) Notwithstanding paragraph (2) of subdivision (h) of Section
2770, an interim management plan for a borrow pit surface mining
operation may remain in effect until reclamation of the borrow pit
surface mining operation is completed in accordance with the approved
reclamation plan.
   (c) Notwithstanding subdivision (b) of Section 2774, a lead agency
may conduct an inspection of a borrow pit surface mining operation
once every two calendar years during a period when the borrow pit
surface mining operation is idle. 
   SEC. 7.   SEC. 6.   Section 2773.1.5 is
added to the Public Resources Code, to read:
   2773.1.5.  (a) Notwithstanding subdivision (e) of Section 2773.1,
a financial assurance mechanism may include corporate financial tests
combined with surety bonds, irrevocable letters of credit, or trust
funds, as described in this section, that together ensure the
completion of reclamation in accordance with the approved reclamation
plan.
   (b) (1)  Corporate financial tests shall only be allowed after the
board adopts a regulation that establishes a comprehensive analysis
and test of a corporation's financial status that includes, but is
not limited to, all of the following:
   (A) A minimum financial net worth of at least thirty-five million
dollars ($35,000,000), adjusted annually to reflect changes in the
Consumer Price Index, as calculated by the United States Bureau of
Labor Statistics.
   (B) Income.
   (C) Liabilities, including other environmental assurances.
   (D) Assets located within the United States.
   (2)  The regulation also shall include, but need not be limited
to, all of the following:
   (A) Additional measures to provide the lead agency or the director
with the recovery of costs associated with the full collection and
satisfaction of the financial assurance mechanisms.
   (B) Requirements for corporate financial tests that include, but
are not limited to, all of the following:
   (i) Provide for no more than 75 percent of the financial assurance
cost estimate approved within the last year.
   (ii) Be annually approved by both the lead agency and the
director.
   (iii) Be able to be disallowed by either the lead agency or the
director.
   (iv) Include an assessment from an independent certified public
accountant using generally accepted accounting principles in the
United States.
   (c)  Each surface mining operation shall have at least 25 percent
of the financial assurance cost estimate in an acceptable financial
assurance mechanism other than a corporate financial test if a
qualifying corporation operates multiple surface mining operations.
   (d) Subject to the requirements of this subdivision, an operator
of multiple surface mining operations may use a corporate financial
test that combines the financial assurance cost estimates of each
surface mining operation. 
  SEC. 8.    Section 2774 of the Public Resources
Code is amended to read:
   2774.  (a) Every lead agency shall adopt ordinances in accordance
with state policy that establish procedures for the review and
approval of reclamation plans and financial assurances and the
issuance of a permit to conduct surface mining operations, except
that any lead agency without an active surface mining operation in
its jurisdiction may defer adopting an implementing ordinance until
the filing of a permit application. The ordinances shall establish
procedures requiring at least one public hearing and shall be
periodically reviewed by the lead agency and revised, as necessary,
to ensure that the ordinances continue to be in accordance with state
policy.
   (b) (1) The lead agency shall cause surface mining operations to
be inspected in intervals of no more than 12 months, solely to
determine whether the surface mining operation is in compliance with
this chapter. The lead agency shall cause an inspection to be
conducted by a state-licensed geologist, state-licensed civil
engineer, state-licensed landscape architect, state-licensed
forester, or a qualified lead agency employee who has not been
employed by the surface mining operation being inspected in any
capacity during the previous 12 months, except that a qualified lead
agency employee may inspect surface mining operations conducted by
the local agency. All inspections shall be conducted using a form
developed by the department and approved by the board that includes
the professional licensing and disciplinary information of the person
who conducted the inspection. The operator shall be solely
responsible for the reasonable cost of the inspection. The lead
agency shall provide a notice of completion of inspection to the
director within 90 days of conducting the inspection. The notice
shall contain a statement regarding the surface mining operation's
compliance with this chapter and a copy of the completed inspection
form, and shall specify, as applicable, all of the following:
   (A) Aspects of the surface mining operation, if any, that were
found to be inconsistent with this chapter but were corrected before
the submission of the inspection form to the director.
   (B) Aspects of the surface mining operation, if any, that were
found to be inconsistent with this chapter but were not corrected
before the submission of the inspection form to the director.
   (C) A statement describing the lead agency's intended response to
any aspects of the surface mining operation found to be inconsistent
with this chapter but were not corrected before the submission of the
inspection form to the director.
   (2) If the surface mining operation has a review of its
reclamation plan, financial assurances, or an interim management plan
pending under subdivision (h) of Section 2770, or an appeal pending
before the board or lead agency governing body under subdivision (e)
or (h) of Section 2770, the notice shall so indicate. The lead agency
shall forward to the operator a copy of the notice, a copy of the
completed inspection form, and any supporting documentation,
including, but not limited to, any inspection report prepared by the
geologist, civil engineer, landscape architect, forester, or
qualified lead agency employee who conducted the inspection.
   (c) If an operator does not request an inspection date on the
annual report filed pursuant to Section 2207 or if the lead agency is
unable to cause the inspection of a given surface mining operation
on the date requested by the operator, the lead agency shall provide
the operator with a minimum of five days' written notice of a pending
inspection or a lesser time period if agreed to by the operator.
   (d) No later than July 1 of each year, the lead agency shall
submit to the director for each active or idle surface mining
operation within the lead agency's jurisdiction the following
information:
   (1) A copy of any permit or reclamation plan amendments, as
applicable.
   (2) A statement that there have been no changes during the
previous year, as applicable.
   (3) The date of each surface mining operation's last inspection.
   (4) The date of each surface mining operation's last financial
assurance review pursuant to Section 2773.1 for each operation
listed.
   (e) (1) No later than December 31, 2016, the department shall
establish a training program for all surface mine inspectors. The
program shall be designed to include a guidance document, developed
by the department, in consultation with the board and stakeholders,
to provide instruction and recommendations to surface mine inspectors
performing inspections pursuant to subdivision (b).
   (2) The training program shall include inspections workshops
offered by the department in different regions of the state to
provide practical application of the guidance document material.
   (3) On and after July 1, 2019, all inspectors shall have on file
with the lead agency and the department a certificate of completion
of an inspection workshop. An inspector shall attend a workshop no
later than five years after the date of his or her most recent
certificate.
   (4) The adoption of the guidance document by the department
pursuant to this subdivision shall be subject to the requirements of
the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code). 
   SEC. 9.   SEC. 7.   No reimbursement is
required by this act pursuant to Section 6 of Article XIII B of the
California Constitution because a local agency or school district has
the authority to levy service charges, fees, or assessments
sufficient to pay for the program or level of service mandated by
this act, within the meaning of Section 17556 of the Government Code.

   SEC. 10.   SEC. 8.   This act shall
become operative only if both this bill and Assembly Bill 1142 of the
2015-16 Regular Session are enacted and become operative on or
before January 1,  2016.   2017.