Bill Text: CA SB209 | 2015-2016 | Regular Session | Chaptered
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-Chaptered.html
BILL NUMBER: SB 209 CHAPTERED
BILL TEXT
CHAPTER 8
FILED WITH SECRETARY OF STATE APRIL 18, 2016
APPROVED BY GOVERNOR APRIL 18, 2016
PASSED THE SENATE MARCH 31, 2016
PASSED THE ASSEMBLY MARCH 28, 2016
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, and 2714 of, and to add
Sections 2006.5, 2770.1, and 2773.1.5 to, the Public Resources Code,
relating to surface mining.
LEGISLATIVE COUNSEL'S DIGEST
SB 209, Pavley. Surface mining: 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 Mine Reclamation
within the department under the direction of the Supervisor of 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 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 allow an operator, after the board has adopted a
specified regulation, to include in a financial assurance mechanism a
corporate financial test, as described.
(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.
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 Mine Reclamation.
SEC. 2. Section 2006.5 is added to the Public Resources Code, to
read:
2006.5. "Supervisor of Mine Reclamation" means the individual
directing the Division of 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 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 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
2017-18 fiscal year and eight thousand dollars ($8,000) in the
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 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 2770.1 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. 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. 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. 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, 2017.
