Senate Natural Resources hears AB40 to expand NDEP authority on mine reclamation, liens and waste management

Chair Cruz Crawford opened the hearing on Assembly Bill 40, a measure to revise provisions relating to environmental hazards and the management of solid and hazardous waste. Jennifer Carr, administrator of the Nevada Division of Environmental Protection (NDEP), told the committee the bill has three parts: mine reclamation, solid waste management, and hazardous waste recycling and management.

The bill seeks explicit authority for NDEP to temporarily suspend portions of a mine reclamation permit and take over management of process fluids when a permit holder lacks capacity and continued mismanagement presents an imminent danger to human health, public safety or the environment, Carr said. Rick Perdomo and Jeffrey Kinder, deputy administrators with NDEP, described how the bill would require notice and due process before the agency acts and would require the permit holder to fix violations and repay state funds used to stabilize site conditions before the permit could be reinstated.

The measure also would allow the state to review federal plans of operations and reclamation cost estimates to protect Nevada water resources, and create statutory lien authority against personal and real property of a mine or solid- or hazardous-waste facility when the state has expended public funds to address imminent hazards or when financial assurance is deficient. As Rick Perdomo described it, the lien provisions are intended to secure public expenditures and reduce the risk of nonrecovery when financial assurance is insufficient or complicated by bankruptcy proceedings.

For solid waste, Jeffrey Kinder said the bill would define “solid waste management facility,” give the State Environmental Commission rulemaking authority to identify the types of solid-waste activities that could present hazards and require NDEP oversight, and add financial-assurance requirements and lien authority for those facilities. The bill would also prevent hazardous waste from very small quantity generators from being disposed of at municipal solid-waste landfills in some circumstances; Kinder said many Nevada landfills are unlined and that practice could allow hazardous constituents to reach waters of the state.

Carr emphasized the bill is a two-thirds measure because it anticipates future permit revenues for emerging industries, but she told senators, “There are no other new fees or revenue created by the bill.” She said the lien and cost-recovery provisions are intended to reimburse the state for expenses when NDEP steps in to protect public health, safety, or the environment.

Senator Ellison asked how many landfills in Nevada are lined; Jeffrey Kinder said he did not have those numbers available and offered to provide them to the senator. That exchange was recorded as a follow-up action request by the agency.

Kyle Davis, testifying for the Nevada Mining Association, urged support and said NDEP and the mining industry worked collaboratively on the language. Davis said Nevada’s reclamation and surety program has been “recognized as robust and systematic” and that the association believes the bill avoids undue burden on responsible operators while improving protections for the environment and public finances.

No public witnesses opposed AB40 during the hearing and there was no committee vote. The proponents waived closing remarks and the committee closed the hearing on AB40; committee staff said written exhibits and amendments must be submitted electronically per committee rules.

Topics discussed that drew questions included the scope of the lien authority, how liens would interact with bankruptcy, the proposed suspension authority for permits, financial-assurance mechanics, and the definition and regulation of emerging solid-waste management activities.