[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 534 Introduced in Senate (IS)]







109th CONGRESS
  1st Session
                                 S. 534

  To amend the Internal Revenue Code of 1986 to repeal the percentage 
depletion allowance for certain hardrock mines, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 7, 2005

 Mr. Feingold introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to repeal the percentage 
depletion allowance for certain hardrock mines, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Elimination of Double Subsidies for 
the Hardrock Mining Industry Act of 2005''.

SEC. 2. REPEAL OF PERCENTAGE DEPLETION ALLOWANCE FOR CERTAIN HARDROCK 
              MINES.

    (a) In General.--Section 613(a) of the Internal Revenue Code of 
1986 (relating to percentage depletion) is amended by inserting 
``(other than hardrock mines located on lands subject to the general 
mining laws or on land patented under the general mining laws)'' after 
``In the case of the mines''.
    (b) General Mining Laws Defined.--Section 613 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following:
    ``(f) General Mining Laws.--For purposes of subsection (a), the 
term `general mining laws' means those Acts which generally comprise 
chapters 2, 12A, and 16, and sections 161 and 162 of title 30 of the 
United States Code.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.

SEC. 3. ABANDONED MINE RECLAMATION FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 (relating to establishment of trust funds) is amended by 
adding at the end the following:

``SEC. 9511. ABANDONED MINE RECLAMATION FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Abandoned Mine 
Reclamation Trust Fund' (in this section referred to as `Trust Fund'), 
consisting of such amounts as may be appropriated or credited to the 
Trust Fund as provided in this section or section 9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the Trust Fund amounts equivalent to 25 percent of the additional 
revenues received in the Treasury by reason of the amendments made by 
section 2 of the Elimination of Double Subsidies for the Hardrock 
Mining Industry Act of 2005.
    ``(c) Expenditures From Trust Fund.--
            ``(1) In general.--Amounts in the Trust Fund shall be 
        available, as provided in appropriation Acts, to the Secretary 
        of the Interior for--
                    ``(A) the reclamation and restoration of lands and 
                water resources described in paragraph (2) adversely 
                affected by mineral (other than coal and fluid 
                minerals) and mineral material mining, including--
                            ``(i) reclamation and restoration of 
                        abandoned surface mine areas and abandoned 
                        milling and processing areas,
                            ``(ii) sealing, filling, and grading 
                        abandoned deep mine entries,
                            ``(iii) planting on lands adversely 
                        affected by mining to prevent erosion and 
                        sedimentation,
                            ``(iv) prevention, abatement, treatment, 
                        and control of water pollution created by 
                        abandoned mine drainage, and
                            ``(v) control of surface subsidence due to 
                        abandoned deep mines, and
                    ``(B) the expenses necessary to accomplish the 
                purposes of this section.
            ``(2) Lands and water resources.--
                    ``(A) In general.--The lands and water resources 
                described in this paragraph are lands within States 
                that have land and water resources subject to the 
                general mining laws or lands patented under the general 
                mining laws--
                            ``(i) which were mined or processed for 
                        minerals and mineral materials or which were 
                        affected by such mining or processing, and 
                        abandoned or left in an inadequate reclamation 
                        status before the date of the enactment of this 
                        section,
                            ``(ii) for which the Secretary of the 
                        Interior makes a determination that there is no 
                        continuing reclamation responsibility under 
                        State or Federal law, and
                            ``(iii) for which it can be established to 
                        the satisfaction of the Secretary of the 
                        Interior that such lands or resources do not 
                        contain minerals which could economically be 
                        extracted through remining of such lands or 
                        resources.
                    ``(B) Certain sites and areas excluded.--The lands 
                and water resources described in this paragraph shall 
                not include sites and areas which are designated for 
                remedial action under the Uranium Mill Tailings 
                Radiation Control Act of 1978 (42 U.S.C. 7901 et seq.) 
                or which are listed for remedial action under the 
                Comprehensive Environmental Response Compensation and 
                Liability Act of 1980 (42 U.S.C. 9601 et seq.).
            ``(3) General mining laws.--For purposes of paragraph (2), 
        the term `general mining laws' means those Acts which generally 
        comprise chapters 2, 12A, and 16, and sections 161 and 162 of 
        title 30 of the United States Code.''.
    (b) Conforming Amendment.--The table of sections for subchapter A 
of chapter 98 of the Internal Revenue Code of 1986 is amended by adding 
at the end the following:

``Sec. 9511. Abandoned Mine Reclamation Trust Fund.''.
                                 <all>