(a)

1. (1) Prior to approving the financial assurance cost estimate for a new reclamation plan or adjustments to the financial assurance cost estimate based on an amendment to a reclamation plan, the lead agency shall submit the financial assurance cost estimate to the supervisor for review.
2. (2) The lead agency shall provide the supervisor with a determination that the financial assurance cost estimate submitted pursuant to paragraph (1) is adequate, complete, and consistent with Section 2773.1, Article 11 (commencing with Section 3800) of Subchapter 1 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.
3. (3) All documentation submitted to the supervisor pursuant to this subdivision shall be submitted at one time.

(c)

1. (1) The supervisor shall have 45 days from the date of receipt of a complete financial assurance cost estimate to prepare written comments if the supervisor chooses.
2. (2) The lead agency shall evaluate written comments received from the supervisor relating to the financial assurance cost estimate within a reasonable amount of time. The lead agency shall prepare a written response to the supervisor’s comments describing the disposition of the major issues raised by the supervisor’s comments.

3. (3) The lead agency shall submit its proposed response to the supervisor at least 30 days prior to approval of the financial assurance cost estimate. The lead agency’s response shall include either of the following:

   1. (A) A description of how the lead agency proposes to adopt the supervisor’s comments to the financial assurance cost estimate.
   2. (B) A detailed description of the reasons why the lead agency proposes to not adopt the supervisor’s comments.
4. (4) Copies of any written comments received and responses prepared by the lead agency shall be forwarded to the operator.

5. (5)

   1. (A) If the lead agency, in its written response to the supervisor’s comments, proposes to not adopt the supervisor’s comments relating to the financial assurance cost estimate, the supervisor, within 15 days of receipt of the lead agency’s written response, may request in writing a consultation with the lead agency to discuss the supervisor’s comments and the lead agency’s response. The request shall include an invitation to the operator to participate in the consultation. The consultation may be conducted in person, electronically, telephonically, or by any means convenient to the parties.
   2. (B) If the supervisor requests a consultation pursuant to this subdivision, the lead agency shall not approve the financial assurance cost estimate until after consulting with the supervisor. The consultation shall occur not later than 30 days after the supervisor’s request unless an alternate timeframe is mutually agreed upon by the supervisor, lead agency, and operator.

6. (6)

   1. (A) The lead agency shall give the supervisor at least 30 days’ notice of the time, place, and date of the hearing at which the financial assurance cost estimate is scheduled to be approved by the lead agency. If no hearing is required by this chapter, local ordinance, or other state law, then the lead agency shall provide 30 days’ notice to the supervisor that it intends to approve the financial assurance cost estimate.
   2. (B) The lead agency shall send to the supervisor its final response to the supervisor’s comments within 30 days following its approval of the financial assurance cost estimate, during which time the Division of Mine Reclamation retains all of its powers, duties, and authority pursuant to this chapter.

(d)

1. (1)

   1. (A) Within 30 days of an annual inspection being conducted pursuant to Section 2774, an operator shall provide an annual financial assurance cost estimate to the lead agency for review.
   2. (B) If the lead agency fails to cause the inspection of the surface mining operation on the date requested by the operator pursuant to Section 2207 or on the date set by the lead agency pursuant to subdivision (c) of Section 2774, the operator shall provide an annual financial assurance cost estimate to the lead agency for review within 30 days of the applicable inspection date, unless the lead agency causes the inspection to occur within that time period, in which case the operator shall provide an annual financial assurance cost estimate to the lead agency within 30 days of the date of the inspection.

2. (2)

   1. (A) Within 60 days of receiving an operator’s annual financial assurance cost estimate, the lead agency shall do one of the following:

      1. (i) Deny the financial assurance cost estimate pursuant to paragraph (6).
      2. (ii) Submit the financial assurance cost estimate to the supervisor for review.
   2. (B) The lead agency shall provide the supervisor with a determination that the annual financial assurance cost estimate submitted is adequate, complete, and consistent with Section 2773.1, Article 11 (commencing with Section 3800) of Subchapter 1 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.
3. (3) All documentation submitted to the supervisor pursuant to this subdivision shall be submitted at one time.
4. (4) Within 15 days of receiving an annual financial assurance cost estimate, the supervisor shall notify the lead agency and the operator if the submission is incomplete. An incomplete submission is one that does not meet the content requirements of Section 2773.1, Article 11 (commencing with Section 3800) of Subchapter 1 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 supervisor’s notice shall specifically identify all aspects of the submission that are incomplete. The supervisor’s time to review the annual financial assurance cost estimate shall commence upon the receipt of a submission that contains the aspects identified in the supervisor’s notice to the lead agency.

5. (5)

   1. (A) Within 45 days of receiving an operator’s complete annual financial assurance cost estimate from the lead agency, the supervisor shall prepare written comments on the operator’s annual financial assurance cost estimate and provide the comments to the lead agency and the operator if the supervisor so chooses.

   2. (B)

      1. (i) Within 30 days from receiving the supervisor’s written comments pursuant to this subdivision, the lead agency shall evaluate the written comments and provide the supervisor and operator its proposed response to the supervisor.

      2. (ii) The lead agency shall submit its proposed response to the supervisor at least 30 days prior to approving the annual financial assurance cost estimate. The lead agency’s response shall include either of the following:

         1. (I) A description of how the lead agency proposes to adopt the supervisor’s comments to the annual financial assurance cost estimate.
         2. (II) A detailed description of the reasons why the lead agency proposes not to adopt the supervisor’s comments.
      3. (iii) Copies of any written comments received and responses prepared by the lead agency pursuant to this subparagraph shall be provided to the operator.

   3. (C)

      1. (i) If the lead agency, in its written response to the supervisor’s comments, proposes to not adopt the supervisor’s comments concerning the annual financial assurance cost estimate, the supervisor, within 15 days of receipt of the lead agency’s written response, may request in writing a consultation with the lead agency to discuss the supervisor’s comments and the lead agency’s response. The request shall include an invitation to the operator to participate in the consultation. The consultation may be conducted in person, electronically, telephonically, or by any means convenient to the parties.
      2. (ii) If the supervisor requests a consultation pursuant to this subparagraph, the lead agency shall not approve the annual financial assurance cost estimate until after consulting with the supervisor. The consultation shall occur not later than 30 days after the supervisor’s request unless an alternate timeframe is mutually agreed upon by the supervisor, lead agency, and operator.

   4. (D)

      1. (i) Within 60 days of receiving the supervisor’s written comments, or of a consultation pursuant to this subdivision, whichever is later or the due date of the supervisor’s written comments if none are received, the lead agency shall approve or deny an operator’s annual financial assurance cost estimate.
      2. (ii) The lead agency shall give the supervisor at least 30 days’ notice of the time, place, and date of the hearing at which the annual financial assurance cost estimate is scheduled to be approved by the lead agency.
      3. (iii) If no hearing is required by this chapter, local ordinance, or other state law, the lead agency shall provide 30 days’ notice to the supervisor that it intends to approve the annual financial assurance cost estimate.
   5. (E) Within 30 days of the lead agency’s approval of the annual financial assurance cost estimate, the lead agency shall send the supervisor its final response to the supervisor’s comments.
6. (6) If the lead agency determines an operator’s annual financial assurance cost estimate is inadequate, the lead agency shall specify the reasons for that determination. The operator shall have 30 days to appeal that denial pursuant to subdivision (e) of Section 2770 or provide a revised financial assurance cost estimate incorporating the suggested changes to the lead agency for approval by the lead agency pursuant to this section.

(e)

1. (1) Within 30 days of the lead agency’s approval of a financial assurance cost estimate pursuant to this section, the operator shall provide the lead agency and the supervisor an appropriate financial assurance mechanism.

2. (2)

   1. (A) Within 15 days of receiving a financial assurance mechanism pursuant to this subdivision, or subdivision (c) of Section 2773.1 the lead agency and the supervisor shall review the financial assurance mechanism to determine if the type of mechanism, including the release instructions, meets the requirements of this chapter.
   2. (B) Financial assurance mechanisms determined to be noncompliant with this chapter shall be returned to the operator with instructions on how to correct the type or release instructions of the financial assurance mechanism.
3. (3) By July 1, 2018, the board shall adopt forms to implement this subdivision as necessary. The forms 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).