November 6, 2019
The Abandoned Mine Reclamation Fund: Issues and Legislation
in the 116th Congress
The expansion of coal mining and production in the United
subsidence. The geographic scope of the site may be larger
States in the 20th century contributed to the nation meeting
than where the coal was mined, because it includes the
its energy requirements. As amended, Title IV of the
affected lands and waters.
Surface Mining Control and Reclamation Act of 1977
(SMCRA) authorized federal funding to reclaim coal
Unfunded Reclamation Costs
mining sites that operated prior to enactment to which no
States and tribes report incurred and estimated future
other federal or state laws applied. Sites that remain
reclamation costs to OSMRE for Abandoned Mine Land
unreclaimed may continue to pose hazards to public health,
projects. Estimates of unfunded reclamation costs may vary
safety, and the environment. The Abandoned Mine
by the problem types among sites and the severity of
Reclamation Fund, established under Section 401 of
hazards. According to OSMRE, the states and tribes have
SMCRA, provides funding to eligible states and tribes for
estimated total unfunded costs for the reclamation of
the reclamation of surface mining impacts associated with
eligible sites of approximately $10.7 billion to date. States
historical mining of coal. Title IV of SMCRA authorized
and tribes periodically update estimates of unfunded
the collection of fees on the production of coal. The use of
reclamation costs as site conditions or the understandings of
this funding is limited to the reclamation of coal mining
these conditions may change and as new sites may be
sites abandoned or unreclaimed as of August 3, 1977 (date
identified.
of SMCRA enactment). Title V of SMCRA authorized the
regulation of coal mining sites operating after the law’s
State and Tribal Reclamation Programs
enactment. Coal mining sites regulated under Title V are
Pursuant to Section 405 of SMCRA, states and tribes must
ineligible for grants from the Abandoned Mine Reclamation
first obtain OSMRE approval of their reclamation programs
Fund. SMCRA mandated that coal mine operators regulated
to be eligible for grants from the Abandoned Mine
under Title V are responsible for providing financial
Reclamation Fund. The grants are distributed among
assurance for completing site reclamation. The Office of
eligible states and tribes based on a statutory formula to
Surface Mining Reclamation and Enforcement (OSMRE)
calculate their respective shares of annual coal reclamation
within the Department of the Interior is the federal office
fee receipts based on current and historical coal production.
responsible for administering SMCRA in coordination with
States with greater historical coal production generally have
eligible states and tribes.
more reclamation needs to address affected lands and
waters. A total of 25 coal production states and three tribes
The coal reclamation fee collection authorization in Title IV
with federally approved mine reclamation programs are
expires at the end of FY2021. If Congress does not
eligible for these grants.
reauthorize the collection of reclamation fees, SMCRA
directs the remaining balance of the Abandoned Mine
Certification
Reclamation Fund to be distributed among states and tribes
Section 411 of SMCRA authorizes OSMRE to certify a
receiving grants from the fund until the balance is
state or tribe once it demonstrates that it has reclaimed all
expended. The following sections describe the eligibility of
of its priority abandoned coal mining sites. Five states and
sites for reclamation, estimated reclamation costs, grants to
three tribes are certified: Crow Tribe, Hopi Tribe,
states and tribes, reauthorization issues and proposed
Louisiana, Mississippi, Montana, Navajo Nation, Texas,
legislation. This In Focus does not discuss the regulation of
and Wyoming. States with OSMRE-approved coal
coal mining sites under Title V.
reclamation programs that have not reclaimed all of their
priority abandoned coal mining sites are uncertified states.
Reclamation Eligibility
Twenty states are uncertified: Alabama, Alaska, Arkansas,
Title IV of SMCRA limits funding eligibility to sites where
Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky,
lands and waters have been affected by coal mining sites
Maryland, Missouri, New Mexico, North Dakota, Ohio,
abandoned or unreclaimed prior to the enactment of
Oklahoma, Pennsylvania, Tennessee, Utah, Virginia, and
SMCRA and for which there is no continuing reclamation
West Virginia. The remaining states either did not have
responsibility under other federal or state laws. The scope
historical coal production or have not established an
of reclamation broadly includes activities to address public
OSMRE-approved state program.
health and safety issues and environmental restoration of
affected lands and waters that have been degraded by coal
UMWA Health Benefit Plans
mining activities. Section 403 prioritizes reclamation
In addition to employer contributions, Title IV of SMCRA
according to public health, safety, and environmental
authorizes two sources of federal financial assistance for
hazards. For example, safety hazards may include unstable
three United Mine Workers of America (UMWA) plans that
embankments or damaged infrastructure due to land
provide health benefits for coal mine worker retirees:
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The Abandoned Mine Reclamation Fund: Issues and Legislation in the 116th Congress
interest transfers from the Abandoned Mine Reclamation
reclamation costs, whether and how to fund the remaining
Fund and payments from the General Fund of the U.S.
coal reclamation needs presents a policy question for
Treasury, which supplement the interest transfers. None of
Congress. If the fees were reauthorized, the adequacy of
the coal reclamation fees credited to the Abandoned Mine
those receipts to pay the remaining unfunded reclamation
Reclamation Fund fund the UMWA plans.
costs would depend on decisions made by Congress (e.g.,
source of funds, duration of the fee extension, and fee rate).
Receipts and Appropriations
Additional factors include the status of domestic coal
As authorized in Section 402 of SMCRA, the Abandoned
production and the potential emergence of additional
Mine Reclamation Fund is financed by dedicated fees
reclamation needs.
collected from operators of coal mining sites based on the
volume or value of coal produced, whichever is less. Prior
Should Congress not reauthorize the coal reclamation fees,
to the enactment of the 2006 amendments to SMCRA (P.L.
as the balance from the Abandoned Mine Reclamation Fund
109-432, Division C, Title II), OSMRE distributed grants to
is paid down after FY2023, the interest transfers from the
both certified and uncertified states and tribes from the
Abandoned Mine Reclamation Fund would have a
Abandoned Mine Reclamation Fund subject to annual
relatively smaller contribution to the UMWA plans. Less
appropriations. Annual appropriations were generally lower
interest available for UMWA plans may place a greater
than annual coal reclamation fees collected prior to the
demand on supplemental payments from the General Fund
2006 amendments, resulting in an accumulation in the
to ensure benefit coverage. Supplemental payments to
unappropriated balance of the Abandoned Mine
UMWA plans and grants to certified states and tribes from
Reclamation Fund. The 2006 amendments to SMCRA
the General Fund are limited by the statutory cap.
authorized permanent appropriations to OSMRE to
administer grants to eligible states and tribes beginning in
Reauthorizing Legislation
FY2008.
Multiple bills introduced in the 116th Congress would
reauthorize the coal reclamation fees. As introduced, H.R.
For uncertified states, OSMRE administers state share
4248 and S. 1193 would amend SMCRA to extend the fee
grants, historic coal grants (based on coal production prior
collection authorization at the current fee rates until
to the enactment of SMCRA), and minimum program make
September 30, 2036. The Senate bill would distribute
up funds (grants to ensure uncertified states receive at least
annual grants to states receiving monies from the
$3 million each annually) from the Abandoned Mine
Abandoned Mine Reclamation Fund in a fixed amount—
Reclamation Fund. Other appropriations from the
based on what the state received in FY2022—starting in
Abandoned Mine Reclamation Fund include interest
FY2023 and thereafter. The House bill would continue to
transfers to UMWA plans and OSMRE program funding.
provide annual grants to eligible states based on annual
OSMRE program funding is subject to annual
shares of fee collections described previously. The House
appropriations. For certified states and tribes, OSMRE
bill would also increase the minimum grants to uncertified
administers state and tribal share payments from the
states from $3 million to $5 million.
General Fund in lieu of the Abandoned Mine Reclamation
Fund. SMCRA authorizes General Fund supplement
Other Title IV SMCRA Legislation
payments to UMWA plans. SMCRA established an annual
In the 116th Congress, House and Senate versions of the
cap of $490 million on direct spending from the General
RECLAIM Act (H.R. 2156 and S. 1232) would authorize
Fund for both the certified state and tribal payment shares
$1 billion over five years from the unappropriated balance
and supplemental payments to the UMWA plans combined.
of the Abandoned Mine Reclamation Fund for the
reclamation of abandoned coal mining sites as a means to
Reauthorization Policy Issues
facilitate economic and community development in coal
The coal reclamation fee collection authorization expires at
production states. RECLAIM grants to eligible states and
the end of FY2021. If the authority to collect reclamation
tribes would be in addition to the annual grants paid to
fees is not reauthorized, SMCRA directs the remaining
states and tribes. Multiple bills introduced in the 116th
balance of the Abandoned Mine Reclamation Fund to be
Congress (S. 27, S. 671, H.R. 934, and H.R. 935) would (1)
distributed among states and tribes receiving grants from
expand eligibility for a UMWA retiree health plan and/or
the Abandoned Mine Reclamation Fund until the balance is
(2) raise the cap from $490 million to $750 million and
expended. Those grants would begin in FY2023 at the
transfer funds remaining under the cap, after certified state
levels paid out during FY2022 and continue at the same
and tribal share payments and supplement payments to
amount each year thereafter until the fund is fully
UMWA health plans, to the UMWA pension plan. None of
expended. As of November 11, 2018, OSMRE reported that
these bills would reauthorize coal reclamation fee
the unappropriated balance of the Abandoned Mine
collections beyond FY2021. For additional information
Reclamation Fund was approximately $2.3 billion.
about these plans, see CRS In Focus IF10616, Health
Reclamation grants to eligible states and tribes receiving
Benefits for United Mine Workers of America Retirees, by
grants from the Abandoned Mine Reclamation Fund would
John J. Topoleski.
continue for some years until the balance is expended if
coal reclamation fees were not reauthorized.
Lance N. Larson, Analyst in Environmental Policy
Given that the balance of the Abandoned Mine Reclamation
IF11352
Fund is several times less than the estimated unfunded


https://crsreports.congress.gov

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The Abandoned Mine Reclamation Fund: Issues and Legislation in the 116th Congress


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https://crsreports.congress.gov | IF11352 · VERSION 1 · NEW

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