Updated February 24, 2020
The Abandoned Mine Reclamation Fund: Issues and Legislation
in the 116th Congress
Coal mining and production in the United States in the 20th
subsidence. The geographic scope of the site may be larger
century contributed to the nation meeting its energy
than where the coal was mined, because it includes the
requirements and left a legacy of unreclaimed lands. As
affected lands and waters.
amended, Title IV of the Surface Mining Control and
Reclamation Act of 1977 (SMCRA) authorized federal
Unfunded Reclamation Costs
funding to reclaim coal mining sites that operated prior to
States and tribes report incurred and estimated future
enactment to which no other federal or state laws applied.
reclamation costs to OSMRE for Abandoned Mine Land
Sites that remain unreclaimed may continue to pose hazards
projects. Estimates of unfunded reclamation costs may vary
to public health, safety, and the environment. The
by the problem types among sites and the severity of
Abandoned Mine Reclamation Fund, established under
hazards. According to OSMRE, the states and tribes have
Section 401 of SMCRA, provides funding to eligible states
estimated total unfunded costs for the reclamation of
and tribes for the reclamation of surface mining impacts
eligible sites of approximately $10.7 billion to date. States
associated with historical mining of coal. Title IV of
and tribes periodically update estimates of unfunded
SMCRA authorized the collection of fees on the production
reclamation costs as site conditions or the understandings of
of coal. The use of this funding is limited to the reclamation
these conditions may change and as new sites may be
of coal mining sites abandoned or unreclaimed as of August
identified.
3, 1977 (date of SMCRA enactment). Title V of SMCRA
authorized the regulation of coal mining sites operating
State and Tribal Reclamation Programs
after the law’s enactment. Coal mining sites regulated under
Pursuant to Section 405 of SMCRA, states and tribes must
Title V are ineligible for grants from the Abandoned Mine
first obtain OSMRE approval of their reclamation programs
Reclamation Fund. SMCRA mandated that coal mine
to be eligible for grants from the Abandoned Mine
operators regulated under Title V are responsible for
Reclamation Fund. The grants are distributed among
providing financial assurance for completing site
eligible states and tribes based on a statutory formula to
reclamation. The Office of Surface Mining Reclamation
calculate their respective shares of annual coal reclamation
and Enforcement (OSMRE) within the Department of the
fee receipts based on current and historical coal production.
Interior is the federal office responsible for administering
States with greater historical coal production generally have
SMCRA in coordination with 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. Since FY2008, certified states and tribes
coal mining sites under Title V.
receive state and tribal share payments from the General
Fund in lieu of the Abandoned Mine Reclamation Fund.
Reclamation Eligibility
Title IV of SMCRA limits funding eligibility to sites where
States with OSMRE-approved coal reclamation programs
lands and waters have been affected by coal mining sites
that have not reclaimed all of their priority abandoned coal
abandoned or unreclaimed prior to the enactment of
mining sites are uncertified states. Twenty states are
SMCRA and for which there is no continuing reclamation
uncertified: Alabama, Alaska, Arkansas, Colorado, Illinois,
responsibility under other federal or state laws. The scope
Indiana, Iowa, Kansas, Kentucky, Maryland, Missouri, New
of reclamation broadly includes activities to address public
Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania,
health and safety issues and environmental restoration of
Tennessee, Utah, Virginia, and West Virginia. The
affected lands and waters that have been degraded by coal
remaining states either did not have historical coal
mining activities. Section 403 prioritizes reclamation
production or have not established an OSMRE-approved
according to public health, safety, and environmental
state program.
hazards. For example, safety hazards may include unstable
embankments or damaged infrastructure due to land
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The Abandoned Mine Reclamation Fund: Issues and Legislation in the 116th Congress
UMWA Health and Pension Benefit
levels paid out during FY2022 and continue at the same
Plans
amount each year thereafter until the fund is fully
In addition to employer contributions, Title IV of SMCRA
expended. As of November 11, 2018, OSMRE reported that
authorizes two sources of federal financial assistance for
the unappropriated balance of the Abandoned Mine
three United Mine Workers of America (UMWA) plans that
Reclamation Fund was approximately $2.3 billion.
provide health benefits for coal mine worker retirees:
Reclamation grants to eligible states and tribes receiving
interest transfers from the Abandoned Mine Reclamation
grants from the Abandoned Mine Reclamation Fund would
Fund and payments from the General Fund of the U.S.
continue for some years until the balance is expended if
Treasury, which supplement the interest transfers. None of
coal reclamation fees were not reauthorized.
the coal reclamation fees credited to the Abandoned Mine
Reclamation Fund fund the UMWA plans.
Given that the balance of the Abandoned Mine Reclamation
Fund is several times less than the estimated unfunded
In the 116th Congress, the Bipartisan American Miners Act
reclamation costs, whether and how to fund the remaining
(P.L. 116-94; Further Consolidated Appropriations Act,
coal reclamation needs presents a policy question for
2020, Division M) amended Section 402 of SMCRA to
Congress. If the fees were reauthorized, the adequacy of
expand the eligibility of the UMWA health plans to receive
those receipts to pay the remaining unfunded reclamation
federal funding and authorizes General Fund payments to
costs would depend on decisions made by Congress (e.g.,
the UMWA pension plan. Under that act, the aggregate
source of funds, duration of the fee extension, and fee rate).
amount of General Fund payments to certified states and
Additional factors include the status of domestic coal
tribes, UMWA health plans, and the UMWA pension plan
production and the potential emergence of additional
are subject to a $750 million cap annually. Annual
reclamation needs.
payments to certified states and tribes are provided first,
then supplemental payments to UMWA health plans, and
Should Congress not reauthorize the coal reclamation fees,
any remaining funds amount up to $750 million annually
as the balance from the Abandoned Mine Reclamation Fund
are to be transferred to the UMWA pension plan.
is paid down after FY2023, the interest transfers from the
Abandoned Mine Reclamation Fund would have a
Receipts and Appropriations
relatively smaller contribution to the UMWA plans. Less
As authorized in Section 402 of SMCRA, the Abandoned
interest available for UMWA plans may place a greater
Mine Reclamation Fund is financed by fees collected from
demand on supplemental payments from the General Fund
operators of coal mining sites based on the volume or value
to ensure benefit coverage. Supplemental payments to
of coal produced, whichever is less. Prior to the enactment
UMWA plans and grants to certified states and tribes from
of the 2006 amendments to SMCRA (P.L. 109-432,
the General Fund are limited by the statutory cap.
Division C, Title II), OSMRE distributed grants to both
certified and uncertified states and tribes from the
Reauthorizing Legislation
Abandoned Mine Reclamation Fund subject to annual
Multiple bills introduced in the 116th Congress would
appropriations. Annual appropriations were generally lower
reauthorize the coal reclamation fees. As introduced, H.R.
than annual coal reclamation fees collected prior to the
4248 and S. 1193 would amend SMCRA to extend the fee
2006 amendments, resulting in an accumulation in the
collection authorization at the current fee rates until
unappropriated balance of the Abandoned Mine
September 30, 2036. The Senate bill would distribute
Reclamation Fund. The 2006 amendments to SMCRA
annual grants to states receiving monies from the
authorized permanent appropriations to OSMRE to
Abandoned Mine Reclamation Fund in a fixed amount—
administer grants to eligible states and tribes beginning in
based on what the state received in FY2022—starting in
FY2008.
FY2023 and thereafter. The House bill would continue to
provide annual grants to eligible states based on annual
For uncertified states, OSMRE administers state share
shares of fee collections described previously. The House
grants, historic coal grants (based on coal production prior
bill would also increase the minimum program make-up
to SMCRA’s enactment), and minimum program make up
funds to uncertified states from $3 million to $5 million
funds (grants to ensure uncertified states receive at least $3
each annually.
million each annually) from the Abandoned Mine
Reclamation Fund. Other appropriations from the
Other Title IV SMCRA Legislation
Abandoned Mine Reclamation Fund include interest
In the 116th Congress, House and Senate versions of the
transfers to UMWA plans and OSMRE program funding.
RECLAIM Act (H.R. 2156 and S. 1232) would authorize
OSMRE program funding is subject to annual
$1 billion over five years from the unappropriated balance
appropriations.
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. Neither of these bills would reauthorize
balance of the Abandoned Mine Reclamation Fund to be
coal reclamation fee collections beyond FY2021.
distributed among states and tribes receiving grants from
the Abandoned Mine Reclamation Fund until the balance is
Lance N. Larson, Analyst in Environmental Policy
expended. Those grants would begin in FY2023 at the
IF11352
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The Abandoned Mine Reclamation Fund: Issues and Legislation in the 116th Congress
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