STATEMENT OF PURPOSE
RS27203 / S1216
The Ore Processing by Cyanidation statute was enacted in 1987 with the primary purpose to provide the Idaho
Department of Environmental Quality (DEQ) with authority to regulate all aspects of a cyanide operation,
including closure activities and water quality impacts. The statute was amended in 2005 to transfer financial
assurance for closure of cyanide facilities from DEQ to the Idaho Department of Lands (IDL). The purpose
of the proposed changes to 39-118A(3)(b) is to resolve a timeline issue between the IDL and DEQ processes.
Approval of the permanent closure plan by IDL and the submittal of required financial assurance based on the
permanent closure cost estimate may take up to 270 days, 180 days, and 90 days, respectively. Meanwhile the
issuance/rejection of a cyanidation permit by DEQ is required within 180 days of receipt of a complete permit
application. However, the statute currently prohibits DEQ from issuing a cyanidation facility permit unless the
facility has satisfied the financial assurance requirements of chapter 15, title 47, Idaho Code. Therefore, under
the current statute, if an applicant submits their cyanidation permit application to DEQ on or near the date they
submit a permanent closure plan to IDL, DEQ may not be able to issue a permit simply because of timing.
The proposed changes will rectify this potential conflict by tying the issuance of a cyanidation permit to the
submittal of the permanent closure plan for IDL approval, on the condition that the permittee submits the
financial assurance required by chapter 15, title 47, Idaho Code. This will allow DEQ to issue a cyanidation
permit within the 180-day requirement while still ensuring the financial assurance requirements of chapter 15,
title 47, Idaho Code, relating to ore processing by cyanidation are satisfied before construction of the cyanidation
facility may begin. This allows IDL's permanent closure plan approval process and DEQ's cyanidation permit
process to be on parallel, rather than sequential, paths.
FISCAL NOTE
The proposed amendments will have no impact to the state General Fund, or any other fund, and will not add any
additional costs to the state or to regulated facilities. Costs to implement the statutes and regulations associated
with cyanidation will only be incurred if a cyanide facility is proposed and those costs are not impacted by this
legislation. Current law allows both DEQ and IDL to charge reasonable application fees to help offset those
costs. The actual costs incurred to process an application will depend on the size and scope of the proposed
facility.
Contact:
Michael McCurdy
Department of Environmental Quality
(208) 373-0188
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN INTRODUCED: 01/14/2020, 8:23 AM


Statutes affected:
Bill Text: 39-118A