The Abandoned Mine Reclamation Fund: Issues and Legislation in the 117th Congress

The Abandoned Mine Reclamation Fund: Issues and Legislation in the 117th Congress

Updated January 7, 2022
The Abandoned Mine Reclamation Fund:
Issues and Legislation in the 117th Congress
Coal mining and production in the United States in the 20th
may vary by the problem types among sites and the severity
century contributed to the nation meeting its energy
of hazards. According to OSMRE, the states and tribes have
requirements and left a legacy of unreclaimed lands. As
estimated total unfunded costs for the reclamation of
amended, Title IV of the Surface Mining Control and
eligible sites of approximately $11.5 billion to date. States
Reclamation Act of 1977 (SMCRA) authorized federal
and tribes periodically update estimates of unfunded
funding to reclaim coal mining sites that operated prior to
reclamation costs as site conditions or the understandings of
enactment to which no other federal or state laws applied.
these conditions may change and as new sites may be
Sites that remain unreclaimed may continue to pose hazards
identified.
to public health, safety, and the environment. The
Abandoned Mine Reclamation Fund, established under
State and Tribal Reclamation Programs
Section 401 of SMCRA, provides funding to eligible states
Pursuant to Section 405 of SMCRA, states and tribes must
and tribes for the reclamation of surface mining impacts
first obtain OSMRE approval of their reclamation programs
associated with historical mining of coal. Title IV of
to be eligible for grants from the Abandoned Mine
SMCRA authorized the collection of fees on the production
Reclamation Fund. The grants are distributed among
of coal. On November 15, 2021, the Infrastructure
eligible states and tribes based on a statutory formula to
Investment and Jobs Act (IIJA; P.L. 117-58) reauthorized
calculate their respective shares of annual coal reclamation
the coal reclamation fees through the end of FY2034, at
fee receipts based on current and historical coal production.
reduced rates. The use of this funding is limited to the
States with greater historical coal production generally have
reclamation of coal mining sites abandoned or unreclaimed
more reclamation needs to address affected lands and
as of August 3, 1977 (date of SMCRA enactment). Title V
waters. A total of 25 coal production states and three tribes
of SMCRA authorized the regulation of coal mining sites
with federally approved mine reclamation programs are
operating after the law’s enactment. Coal mining sites
eligible for these grants.
regulated under Title V are ineligible for grants from the
Abandoned Mine Reclamation Fund. SMCRA mandated
Certification
that coal mine operators regulated under Title V are
Section 411 of SMCRA authorizes OSMRE to certify a
responsible for providing financial assurance for
state or tribe once it demonstrates that it has reclaimed all
completing site reclamation. The Office of Surface Mining
of its priority abandoned coal mining sites. Five states and
Reclamation and Enforcement (OSMRE) within the
three tribes are certified: Crow Tribe, Hopi Tribe,
Department of the Interior is the federal office responsible
Louisiana, Mississippi, Montana, Navajo Nation, Texas,
for administering SMCRA in coordination with eligible
and Wyoming. Since FY2008, certified states and tribes
states and tribes.
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
UMWA Health and Pension Benefit
subsidence. The geographic scope of the site may be larger
Plans
than where the coal was mined, because it includes the
In addition to employer contributions, Title IV of SMCRA
affected lands and waters.
authorizes two sources of federal financial assistance for
three United Mine Workers of America (UMWA) plans that
Unfunded Reclamation Costs
provide health benefits for coal mine worker retirees:
States and tribes report incurred and estimated future
interest transfers from the Abandoned Mine Reclamation
reclamation costs to OSMRE for Abandoned Mine Land
Fund and payments from the General Fund of the U.S.
(AML) projects. Estimates of unfunded reclamation costs
Treasury, which supplement the interest transfers. None of
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The Abandoned Mine Reclamation Fund: Issues and Legislation in the 117th Congress
the coal reclamation fees credited to the Abandoned Mine
the coal reclamation fee under Section 402 of SMCRA and
Reclamation Fund fund the UMWA plans.
provided $11.293 billion in emergency appropriations to the
Abandoned Mine Reclamation Fund. The IIJA extends the
In the 116th Congress, the Bipartisan American Miners Act
authority to collect the coal fee for 13 years, until the end of
(P.L. 116-94; Further Consolidated Appropriations Act,
FY2034, and decreases the fee rates from prior law by 20%
2020, Division M) amended Section 402 of SMCRA to
for underground and surface mining, and lignite coal.
expand the eligibility of the UMWA health plans to receive
Whether the reduction in the coal fee rates would decrease
federal funding and authorizes General Fund payments to
future coal receipts would depend on the quantity or value
the UMWA pension plan. Under that act, the aggregate
of coal produced upon which the fees are based.
amount of General Fund payments to certified states and
tribes, UMWA health plans, and the UMWA pension plan
The IIJA authorizes a transfer from the General Fund of the
are subject to a $750 million cap annually. Annual
U.S. Treasury to provide $11.293 billion in emergency
payments to certified states and tribes are provided first,
appropriation to the Abandoned Mine Reclamation Fund.
then supplemental payments to UMWA health plans, and
This amount is similar in magnitude to the estimates of the
any remaining funds amount up to $750 million annually
unfunded reclamation costs. None of this funding would be
are to be transferred to the UMWA pension plan.
sourced from coal reclamation fees. The $11.293 billion
would provide grants to eligible uncertified and certified
The American Miner Benefits Improvement Act of 2020
states and tribes, in equivalent amounts over a 15-year
(Division Y, Consolidated Appropriations Act, 2021, P.L.
period, based on relative percent of coal production prior to
116-260) further amended Section 402(h) of SMCRA to
1977. The IIJA includes provisions that states and tribes are
expand the eligibility for federal financial assistance from
required to receive at least $20 million, to the extent that the
the General Fund to coal mineworker retirees whose health
amount needed for reclamation projects is not less than $20
care benefits would be denied or reduced as a result of a
million. Provisions in the IIJA limit the use of grants from
bankruptcy commenced on or after January 1, 2020.
the $11.293 billion to uncertified and certified states and
Additionally, Congress amended Section 402(h) to increase
tribes for the reclamation of abandoned coal mining sites
the annual $750 million General Fund spending cap as
under Section 403(a), Section 403(b), and emergency
necessary to meet any additional financial obligations due
projects under Section 410 of SMCRA. In addition to the
to increased eligibility for these health care benefits.
priorities in Section 403 of SMCRA, the IIJA authorizes
states and tribes to consider AML projects that may provide
Receipts and Appropriations
employment to former workers of the coal industry.
As authorized in Section 402 of SMCRA, the Abandoned
Mine Reclamation Fund is financed by fees collected from
The coal reclamation fee collection authorization expires at
operators of coal mining sites based on the volume or value
the end of FY2034. If the authority to collect reclamation
of coal produced, whichever is less. Prior to the enactment
fees is not reauthorized, SMCRA directs the remaining
of the 2006 amendments to SMCRA (P.L. 109-432,
balance of the Abandoned Mine Reclamation Fund to be
Division C, Title II), OSMRE distributed grants to both
distributed among states and tribes receiving grants from
certified and uncertified states and tribes from the
the Abandoned Mine Reclamation Fund until the balance is
Abandoned Mine Reclamation Fund subject to annual
expended. Congress included provisions in the IIJA that
appropriations. Annual appropriations were generally lower
would require OSMRE to evaluate grant payments to states
than annual coal reclamation fees collected prior to the
and tribes not later than 20 years after enactment. Upon that
2006 amendments, resulting in an accumulation in the
evaluation, states and tribes would be required to return any
unappropriated balance of the Abandoned Mine
“unused funds” to the Abandoned Mine Reclamation Fund.
Reclamation Fund. The 2006 amendments to SMCRA
authorized permanent appropriations to OSMRE to
Other Title IV SMCRA Legislation
administer grants to eligible states and tribes beginning in
Other legislation introduced in the 117th Congress also
FY2008.
proposed to reauthorized the coal fee, but at different rates
and different time frames than the provisions enacted in the
For uncertified states, OSMRE administers state share
IIJA (H.R. 1734, H.R. 2462, S. 1447, S. 1600). Versions of
grants, historic coal grants (based on coal production prior
the RECLAIM Act (H.R. 1733 and S. 1455) would also
to SMCRA’s enactment), and minimum program make up
authorize $1 billion from the Abandoned Mine Reclamation
funds (grants to ensure uncertified states receive at least $3
Fund for AML reclamation projects that promote economic
million each annually) from the Abandoned Mine
and community development. House and Senate versions of
Reclamation Fund. Other appropriations from the
the RECLAIM Act would authorize $1 billion over five
Abandoned Mine Reclamation Fund include interest
years from the unappropriated balance of the Abandoned
transfers to UMWA plans and OSMRE program funding.
Mine Reclamation Fund for the reclamation of abandoned
OSMRE program funding is subject to annual
coal mining sites as a means to facilitate economic and
appropriations.
community development in coal production states.
Infrastructure Investment and Jobs Act
of 2021
Lance N. Larson, Analyst in Environmental Policy
Enacted on November 15, 2021, the Infrastructure
IF11352
Investment and Jobs Act (IIJA; P.L. 117-58) reauthorized

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The Abandoned Mine Reclamation Fund: Issues and Legislation in the 117th Congress

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