I 112th CONGRESS 2d Session H. R. 6202 IN THE HOUSE OF REPRESENTATIVES July 25, 2012 Mr. McDermott (for himself, Ms. Lee of California, Mr. Honda, Mr. Rangel, and Mr. Stark) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To amend the Internal Revenue Code of 1986 to establish the Coal Mitigation Trust Fund funded by the imposition of a tax on the extraction of coal, and for other purposes.

1.

Short title

This Act may be cited as the True Cost of Coal Act of 2012.

2.

Coal Mitigation Trust Fund

(a)

In general

Subchapter A of chapter 98 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

9512.

Coal Mitigation Trust Fund

(a)

Creation of trust fund

There is established in the Treasury of the United States a trust fund to be known as the Coal Mitigation Trust Fund, consisting of such amounts as may be appropriated or credited to such fund as provided in this section or section 9602(b). (b)

Transfers to trust fund

There are hereby appropriated to the Coal Mitigation Trust Fund amounts equivalent to the taxes received in the Treasury under section 4122 (relating to excise tax on coal extraction). (c)

Expenditures

(1)

In general

Except as otherwise provided in this subsection, amounts in the Coal Mitigation Trust Fund shall be available, as provided by appropriation Acts, to eligible States for mitigation of the following in connection with the transportation of coal by rail: noise, vibration, traffic delays, pollution and other threats to public health, and emergencies. Such amounts shall also be so available for related worker adjustment assistance. Any amounts made available to an eligible State under this paragraph shall remain available until expended for a purpose described in this paragraph. (2)

Allocation among States

Any amounts made available under paragraph (1) shall be made available to the eligible States in an amount which bears the same ratio to the population of such State as the aggregate amount made available bears to the aggregate populations of all the eligible States. (3)

Eligible States

For purposes of this subsection, the term eligible State means any State in which not less than 2,500,000 tons of coal per year is transported by rail. (4)

Amounts made available not to offset required expenditures

Amounts made available under paragraph (1) shall not be used directly or indirectly for any expense which any producer or transporter of coal is legally required to provide.

. (b)

Clerical 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 new item: Sec. 9512. Coal Mitigation Trust Fund. .

3.

Excise tax on coal extraction

(a)

In general

Subchapter B of chapter 32 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

4122.

Excise tax on coal extraction

(a)

In general

There is hereby imposed on the extraction of coal in the United States a tax equal to $10 per ton. (b)

Cross reference

For definitions of United States and ton, see section 4121(c).

. (b)

Clerical amendment

The table of sections for subchapter B of chapter 32 of such Code is amended by adding at the end the following new item: Sec. 4122. Excise tax on coal extraction. . (c)

Effective date

The amendments made by this section shall apply to coal extracted after the date of the enactment of this Act.

4.

Extension of recovery period for specified coal port property

(a)

50-Year recovery period for specified coal ports

(1)

In general

The table contained in section 168(c) of the Internal Revenue Code of 1986 is amended by striking the last row and inserting the following: Any railroad grading, tunnel bore, or specified coal port property50 years . (2)

Alternative depreciation system

The table contained in section 168(g)(2)(C) of such Code is amended by striking or water utility property and inserting , water utility property, or specified coal port property. (b)

Specified coal port property

Subsection (e) of section 168 of such Code is amended by adding at the end the following new paragraph: (9)

Specified coal port property

The term specified coal port property means any property which is part of a port (including any wharfs, stockyards, or conveyers) if— (A)it is reasonably anticipated at the time that such property is placed in service that such port will be used for the export of coal, and (B)such port (after such property and any related property is placed in service) would have the capacity to export more than 1,000,000 tons of coal annually. . (c)

Effective date

The amendments made by this section shall apply to property placed in service after the date of the enactment of this Act.

5.

Covering coal cars

(a)

Amendment

Subchapter II of chapter 201 of title 49, United States Code, is amended by adding at the end the following new section:

20168.

Covering coal cars.

The Secretary of Transportation shall issue regulations to require all rail cars transporting coal to be covered or to incorporate a suitable alternative technology that ensures that coal and coal dust do not escape the rail car or are treated to significantly reduce or eliminate the release of coal dust or other particulate matter during transportation.

. (b)

Table of sections

The table of sections for subchapter II of chapter 201 of title 49, United States Code, is amended by adding at the end the following: 20168. Covering coal cars. .