Jauch: Mining Hearing To Be In Ashland

Senator Kedzie released a draft of the mining bill yesterday. He requested the draft after he solicited recommendations from members of the committee. He emphasized this is a working draft and it is subject to change.

In Senator Kedzie’s draft (LRB 4035) he makes some positive changes, but the end result is draft legislation remarkably similar to Assembly Bill 426. In a recent email, Senator Kedzie is assuring committee members and the public that he is not wedded to all the provisions in this draft, rather he sees it as a starting point for the committee work from and eventually make changes to following the public hearings.

Senator Kedzie scheduled a hearing at UW-Platteville and is planning to hold a public hearing in Ashland County.

In the draft, Senator Kedzie included a gross tonnage taxation system with a 70/30 split between local governments and the State of Wisconsin. The gross tonnage tax is in addition to the existing net proceeds occupational tax. While I’m glad he increases the split to 70/30, 70 percent is no better than 60 percent when the company can use deductions and depreciations to reduce its obligation to taxpayers. In a net proceeds taxation system, 70 percent of nothing is nothing. In addition, this tax would not be charged until the mine is in operation for three years.

While the draft makes an improvement on mitigation policy, it still needs to ensure that if mitigation is necessary then it should occur within the same watershed or the same region if possible and only occur statewide as a last resort.

The draft, or LRB 4035, establishes a drop dead date for the DNR to make a decision on the mining permit and provides an unlimited amount of 30 day extensions if the DNR and the applicant agree to the extension. While Senator Kedzie recognizes that off ramps are needed, the timelines are still unrealistic. The draft also fails to address the need for collaboration between the DNR, Army Corps of Engineers, and the tribes.

Lastly, the draft recognizes the importance of contested case hearings by maintaining a contested case procedure so citizens have the opportunity to establish a legal record. Unfortunately, the draft retains the provision in AB 426 prohibiting citizen suits which are intended to ensure compliance with permit conditions.

The draft retains a $2 million dollar cap on the mining company’s permit fees and requires taxpayers to subsidize the employer’s obligation to pay for permits costs.

This 191-page draft contains changes to environmental laws that are not needed for the state to provide predictability and certainty in the process for mining companies.

While I would have like to see more changes, I know the Senate committee will make many changes before this draft is introduced as a bill. I will continue to keep you informed as the Senate begins the public hearing process.

I’m glad the public will have two opportunities to provide the Senate with input necessary to create a responsible bill. Having the first hearing in Platteville and the final hearing in Ashland will provide a transparent process and the best opportunity for the Senate to craft responsible and thoughtful mining legislation that adequately reflects the thoughts and the will of the people of Wisconsin.

Sincerely,

Bob Jauch
State Senator
25th Senate District