[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3303 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 3303

  To amend the Mineral Leasing Act to improve coal royalties, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 29, 2015

 Mr. Cartwright (for himself, Mr. Ryan of Ohio, Mr. Lowenthal, and Mr. 
  Grijalva) introduced the following bill; which was referred to the 
 Committee on Natural Resources, and in addition to the Committees on 
 Energy and Commerce, Transportation and Infrastructure, and Financial 
Services, 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 Mineral Leasing Act to improve coal royalties, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Coal Royalty 
Fairness and Communities Investment Act of 2015''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
      TITLE I--VALUATION OF FEDERAL COAL FOR PURPOSES OF ROYALTIES

Sec. 101. Valuation of coal royalties.
      TITLE II--PROGRAMS TO REINVEST IN COAL-IMPACTED COMMUNITIES

Sec. 201. Definitions.
Sec. 202. Establishment of Fund.
Sec. 203. Federal economic and workforce development assistance 
                            programs.
Sec. 204. Carbon capture and sequestration.
Sec. 205. Additional Federal agency participation.

      TITLE I--VALUATION OF FEDERAL COAL FOR PURPOSES OF ROYALTIES

SEC. 101. VALUATION OF COAL ROYALTIES.

    Section 7 of the Mineral Leasing Act (30 U.S.C. 207) is amended--
            (1) in subsection (a), by striking the fourth sentence; and
            (2) by adding at the end the following:
    ``(d) Royalties.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Assessment value.--
                            ``(i) In general.--The term `assessment 
                        value', with respect to Federal coal, means--
                                    ``(I) the price of Federal coal 
                                paid by the purchaser at final sale; or
                                    ``(II) a price imputed by the 
                                Secretary based on the coal price 
                                index.
                            ``(ii) Exclusions.--The term `assessment 
                        value' does not include, as determined and to 
                        the extent determined to be appropriate by the 
                        Secretary--
                                    ``(I) transportation costs, as 
                                determined in accordance with the 
                                transportation cost index; or
                                    ``(II) the cost of coal washing.
                    ``(B) Broker.--The term `broker' means a person 
                that resells Federal coal.
                    ``(C) Coal price index.--The term `coal price 
                index' means the schedule of average market prices of 
                Federal coal (in United States dollars) at final sale, 
                based on the quality and type of the Federal coal, as 
                determined by the Secretary, in consultation with the 
                Administrator of the Energy Information Administration.
                    ``(D) Purchaser.--
                            ``(i) In general.--The term `purchaser' 
                        means a person that--
                                    ``(I) purchases or contracts to 
                                purchase Federal coal--
                                            ``(aa) directly from a coal 
                                        mine operator; or
                                            ``(bb) indirectly from a 
                                        broker; and
                                    ``(II) uses that Federal coal in 
                                any industrial or energy conversion 
                                process.
                            ``(ii) Exclusion.--The term `purchaser' 
                        does not include--
                                    ``(I) a coal broker; or
                                    ``(II) any other third-party 
                                intermediary.
                    ``(E) Quality.--The term `quality', with respect to 
                Federal coal, means the quality of Federal coal 
                measured in British thermal units, sulfur, moisture, 
                and other criteria determined to be appropriate by the 
                Secretary.
                    ``(F) Secretary.--The term `Secretary' means the 
                Secretary of the Interior.
                    ``(G) Transportation cost index.--The term 
                `transportation cost index' means the transportation 
                cost index established under paragraph (7).
                    ``(H) Type.--The term `type', with respect to 
                Federal coal, means a general category of coal, such as 
                metallurgical coal or steam coal, as determined by the 
                Secretary.
            ``(2) Payment rate.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a lease shall require payment of a 
                royalty in such amount as the Secretary shall determine 
                of not less than 12.5 percent of the assessment value 
                of Federal coal, as determined under paragraph (3).
                    ``(B) Exception.--In lieu of the royalty payment 
                rate described in subparagraph (A), the Secretary may 
                establish such lower royalty payment rate as the 
                Secretary determines to be appropriate in the case of 
                Federal coal recovered by an underground mining 
                operation.
            ``(3) Valuation for royalties.--Not later than 1 year after 
        the date of enactment of this subsection, the Secretary shall 
        establish, as the valuation for Federal coal royalties, the 
        assessment value of Federal coal.
            ``(4) Administration.--
                    ``(A) Reporting.--The purchaser of Federal coal 
                shall annually submit to the Secretary a report 
                containing such information as the Secretary determines 
                to be necessary to carry out this subsection.
                    ``(B) Audits.--To carry out this subsection, the 
                Secretary may examine the records of any person engaged 
                in the purchase, sale, transportation, or marketing of 
                Federal coal.
            ``(5) Coal price index.--
                    ``(A) In general.--The Secretary shall compile the 
                assessment values of coal by type and quality of coal 
                in a coal price index.
                    ``(B) Publication.--Not less frequently than 
                quarterly, the Secretary shall publish the coal price 
                index, along with a methodological description, 
                including--
                            ``(i) the method of calculation;
                            ``(ii) the data used to calculate the coal 
                        price index in an aggregate manner that does 
                        not reveal proprietary information; and
                            ``(iii) any other information the Secretary 
                        considers appropriate to ensure transparency.
                    ``(C) Other information.--If a person believes that 
                the coal price index does not accurately reflect the 
                assessment value of the coal produced by the person, 
                the person may petition the Secretary to use 
                information supplied by the person in lieu of the coal 
                price index, including all information the Secretary 
                requires to accurately determine the assessment value 
                and audit the records of the person.
            ``(6) Exports.--
                    ``(A) In general.--In assessing royalties for the 
                export of Federal coal under this subsection, the 
                Secretary may obtain from the exporter of the Federal 
                coal such information as the Secretary determines to be 
                necessary to carry out this subsection.
                    ``(B) Assessment value of exported coal.--Subject 
                to subparagraph (C), in determining the assessment 
                value of Federal coal that is exported, the Secretary 
                shall--
                            ``(i) use the price of coal free on board 
                        the marine vessel used to transport the coal 
                        overseas at the port of origin; and
                            ``(ii) limit any deductions that apply to 
                        the assessment value of the Federal coal to 
                        costs incurred prior to being free onboard the 
                        vessel.
                    ``(C) Uncertain export price.--If the Secretary 
                cannot determine the value of exported coal in 
                accordance with subparagraph (B), the Secretary shall--
                            ``(i) assess royalties under this 
                        subsection based on the coal price index for 
                        coal of a similar quantity and type; and
                            ``(ii) limit any deductions that apply to 
                        the assessment value of the Federal coal to 
                        costs incurred within the contiguous United 
                        States.
            ``(7) Transportation cost index.--
                    ``(A) In general.--Subject to the other provisions 
                of this paragraph, the Secretary, in consultation with 
                the Secretary of Energy and the Secretary of 
                Transportation (in consultation with the Surface 
                Transportation Board and others), shall--
                            ``(i) compile in a transportation cost 
                        index the average costs of transporting coal; 
                        and
                            ``(ii) determine the amount of any 
                        transportation cost deduction under this 
                        subsection, on the basis of the transportation 
                        cost index.
                    ``(B) Unit of measurement.--The transportation cost 
                index shall be based on the average transportation 
                costs per ton of coal or another unit of measurement 
                determined by the Secretary.
                    ``(C) Differences in transportation costs.--The 
                transportation cost index shall take into consideration 
                differences in the costs of transportation, as 
                determined by the Secretary, based on--
                            ``(i) the mode of transportation;
                            ``(ii) the geographic region, and
                            ``(iii) other characteristics of the 
                        transportation industry that the Secretary 
                        considers to be necessary to calculate a fair, 
                        transparent, and accurate transportation cost 
                        index.
                    ``(D) Exclusions.--The transportation cost index 
                shall not include costs associated with, as determined 
                by the Secretary--
                            ``(i) take-or-pay contract penalties;
                            ``(ii) liquidated damages;
                            ``(iii) the speculative aspects of 
                        transportation transactions; or
                            ``(iv) any other costs that are not 
                        directly associated with moving Federal coal 
                        from 1 location to another location.
                    ``(E) Publication.--Not less than twice annually, 
                the Secretary shall publish the transportation cost 
                index, along with a methodological description, 
                including--
                            ``(i) the method of calculation;
                            ``(ii) the data used to calculate the 
                        transportation cost index, in an aggregate 
                        manner that does not reveal proprietary 
                        information; and
                            ``(iii) any other information the Secretary 
                        considers to be appropriate to ensure 
                        transparency.
                    ``(F) Other information.--If a person believes that 
                the transportation cost index does not accurately 
                reflect the transportation costs of the person, the 
                person may petition the Secretary to use information 
                supplied by the person (other than costs descried in 
                subparagraph (D)) in lieu of the transportation cost 
                index, including all information the Secretary requires 
                to accurately determine cost and audit the records of 
                the person.
            ``(8) Reviews.--
                    ``(A) In general.--To ensure a transparent, fair, 
                and efficient administration of the Federal coal 
                program, and to ensure that citizens of the United 
                States receive a fair return on Federal coal, not later 
                than 3 years after the date of enactment of this 
                subsection and every 3 years thereafter during the 15-
                year period beginning on that date of enactment, the 
                Comptroller General of the United States shall submit 
                to Congress a report that describes a review of the 
                Federal coal program, including the administration of 
                this subsection.
                    ``(B) Consultation.--In conducting a review under 
                this paragraph, the Comptroller General shall consult 
                with--
                            ``(i) the Secretary;
                            ``(ii) the Director of the Bureau of Land 
                        Management;
                            ``(iii) the Secretary of Transportation; 
                        and
                            ``(iv) the Secretary of Energy.
                    ``(C) Inclusions.--A review under this paragraph 
                shall include a review of--
                            ``(i) the total volume of coal production 
                        from Federal land;
                            ``(ii) the total volume of remaining coal 
                        reserves on Federal land;
                            ``(iii) the total revenues generated from 
                        the Federal coal program, itemized by type of 
                        revenue, including lease bonus payments and 
                        royalties;
                            ``(iv) market prices for coal;
                            ``(v) market prices for transportation 
                        costs and any other deductible costs; and
                            ``(vi) the appropriateness of royalty 
                        rates.
                    ``(D) Format.--The Comptroller General shall report 
                information in a review under this paragraph--
                            ``(i) in the aggregate for the United 
                        States; and
                            ``(ii) categorized by State for at least 
                        the top 10 Federal coal-producing States, as 
                        determined by the Comptroller General.''.

      TITLE II--PROGRAMS TO REINVEST IN COAL-IMPACTED COMMUNITIES

SEC. 201. DEFINITIONS.

    In this title:
            (1) Coal economy.--The term ``coal economy'' means the 
        complete supply chain of coal reliant industries, including 
        coal mining, coal-fired power plants, and related 
        transportation, logistics, and manufacturing.
            (2) Covered program.--The term ``covered program'' means 
        any of the following:
                    (A) The Assistance to Coal Communities, Economic 
                Adjustment Assistance, and Partnership Planning program 
                of the Economic Development Administration of the 
                Department of Commerce.
                    (B) The Dislocated Worker National Emergency Grants 
                program of the Employment and Training Administration 
                of the Department of Labor.
                    (C) The Regional Innovation Clusters and Growth 
                Accelerators program of the Small Business 
                Administration.
                    (D) The Technical Assistance and Demonstration 
                Projects program of the Appalachian Regional 
                Commission.
            (3) Fund.--The term ``Fund'' means the Coal Area Economic 
        Revitalization Fund established by section 202(a).
            (4) Impacted community.--The term ``impacted community'' 
        means a community or Indian tribe (as defined in section 4 of 
        the Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450b)) in the United States that has been negatively 
        impacted by changes in the coal economy.
            (5) Participating agency.--The term ``participating 
        agency'' means a Federal agency that has primary authority over 
        a covered program.

SEC. 202. ESTABLISHMENT OF FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a separate account, to be administered by the Secretary 
of Commerce (acting through the Economic Development Administration), 
to be known as the ``Coal Area Economic Revitalization Fund''.
    (b) Deposits.--Of the amount of royalty revenues collected by the 
United States for each fiscal year from coal leases under section 7 of 
the Mineral Leasing Act (30 U.S.C. 207) (as amended by section 101(2)), 
to the extent the revenues are available, there shall be deposited in 
the Fund $105,000,000.
    (c) Availability of Amounts.--Subject to subsection (d) and 
notwithstanding any other provision of law, for each fiscal year, of 
the amounts deposited in the Fund under subsection (b), there shall be 
made available, without further appropriation, the following or a pro 
rata amount:
            (1) $100,000,000 to the Secretary of Commerce to provide 
        grant assistance under covered programs, in accordance with 
        section 203.
            (2) $5,000,000 to the Secretary of Energy to provide 
        funding for large-scale projects to capture and store carbon 
        dioxide emissions from industrial sources, in accordance with 
        section 204.
    (d) Administrative Expenses.--A participating agency may not use 
not more than 2 percent of the amount the agency receives for each 
fiscal year to cover the administrative expenses of the participating 
agency in carrying out the covered program.
    (e) Period of Availability.--The amounts deposited in the Fund 
shall be available without fiscal year limitation.

SEC. 203. FEDERAL ECONOMIC AND WORKFORCE DEVELOPMENT ASSISTANCE 
              PROGRAMS.

    (a) In General.--The Secretary of Commerce, acting through the 
Economic Development Administration (referred to in this section as the 
``Secretary''), shall use the amounts made available to carry out this 
section under section 202(c)(1) to provide grant assistance under 
covered programs for eligible projects described in subsection (e).
    (b) Purpose.--The purpose of this section is to provide funding to 
impacted communities by targeting Federal economic and workforce 
development assistance programs that seek--
            (1) to diversify regional, State, tribal, and local 
        economies;
            (2) to create jobs in new and existing industries;
            (3) to attract new sources of job-creating investment; and
            (4) to provide a range of workforce services and skills 
        training, including work-based learning opportunities, 
        resulting in industry-recognized credentials for high-quality, 
        in-demand jobs.
    (c) Allocation of Funds for Covered Programs.--
            (1) In general.--The Secretary shall--
                    (A) allocate amounts made available to carry out 
                this section among the covered programs in accordance 
                with the criteria described in paragraph (2); and
                    (B) provide public notice of the availability of 
                grant assistance under this section through a Federal 
                Funding Opportunity announcement.
            (2) Allocation criteria.--The Secretary shall establish and 
        publish criteria for the allocation of funds to carry out this 
        section among the covered programs in a manner that carries out 
        the purpose described in subsection (b), as determined by the 
        Secretary.
    (d) Covered Programs.--
            (1) In general.--On allocation by the Secretary of amounts 
        from the Fund for a covered program under this section, the 
        head of the applicable participating agency shall manage grant 
        selection (including eligibility requirements), awards, and 
        execution of projects with respect to those amounts.
            (2) Terms and conditions.--Except as otherwise provided in 
        this section, projects receiving grant assistance under this 
        section shall be subject to the eligibility rules, permitted 
        activities, and reporting requirements of the covered program 
        under which the grant is made.
    (e) Eligible Projects.--
            (1) Project purposes.--A project shall be eligible for 
        assistance under this section if the purpose of the project is 
        to assist impacted communities--
                    (A) to organize community stakeholders, analyze and 
                inventory community assets, evaluate needs and 
                resources, and develop comprehensive economic 
                development strategic plans;
                    (B) to undergo in-depth labor market analysis and 
                workforce development and dislocated worker planning 
                associated with the provision of training and 
                employment services;
                    (C) to implement linked economic and workforce 
                development strategies to develop high-potential 
                industry clusters;
                    (D) to accelerate job creation by leveraging local 
                assets;
                    (E) to train and place workers in family-
                supporting, high-demand jobs (including registered 
                apprenticeship and other on-the-job training models);
                    (F) to create linkages that drive regional economic 
                growth; or
                    (G) to carry out other purposes approved by the 
                Secretary.
            (2) Priority.--In selecting projects to receive assistance 
        under this section, the head of a participating agency shall--
                    (A) give priority to project applications that 
                establish a clear linkage between the proposed project 
                and the means by which the project will result in local 
                economic growth and diversification, job creation, and 
                job training and reemployment for dislocated workers, 
                as described in a broader economic and workforce 
                development strategy, without regard to any formula 
                used by a participating agency to disburse other funds; 
                and
                    (B) consult directly with impacted communities to 
                determine the greatest needs of the impacted 
                communities and give priority to projects that address 
                those needs.
            (3) Specific activities and costs to be considered.--In 
        providing assistance under this section for projects for 
        economic diversification, the head of a participating agency 
        shall give consideration, at a minimum, to the following 
        activities and costs:
                    (A) Analysis activities that build from strategic 
                economic development plans, including--
                            (i) economic and workforce data collection; 
                        and
                            (ii) supply chain and industry cluster 
                        analysis.
                    (B) Outreach and targeted assistance to economic 
                development organizations, unions, workers, and other 
                stakeholders.
                    (C) Remediation and redevelopment of coal economy 
                sites, as appropriate.
                    (D) Provision of business planning and market 
                exploration services.
                    (E) Development of business incubator programs.
                    (F) Facilitation of access to private capital 
                investment and capacity building to effectively use 
                capital investment.
                    (G) Promotion of exports from entities in the 
                impacted area.
                    (H) Workforce training and dislocated worker 
                services and supports for impacted workers.
                    (I) Costs associated with registered apprenticeship 
                and on-the-job training models.
                    (J) Temporary or short-term relocation or commuting 
                costs for available jobs in other parts of the 
                applicable State or region.
                    (K) Staffing, operating, and administrative costs 
                for the recipient organization.
                    (L) Comprehensive strategies that--
                            (i) integrate all of the activities and 
                        costs described in subparagraphs (A) through 
                        (K); and
                            (ii) leverage other investments from the 
                        applicable participating agency and other 
                        Federal agencies.
    (f) Coordination of Activities.--The Secretary shall--
            (1) with respect to grant assistance under this section, 
        manage--
                    (A) the Federal Funding Opportunity announcement 
                under subsection (c)(1)(B); and
                    (B) the overall process of competitive 
                solicitation;
            (2) provide a single staff point of Federal contact (with 
        staffing assistance from other participating agencies, as 
        needed) for grants awarded under this section; and
            (3) coordinate cross-agency activities at the regional 
        level that direct additional Federal resources to impacted 
        communities.

SEC. 204. CARBON CAPTURE AND SEQUESTRATION.

    The Secretary of Energy shall use the amounts made available to 
carry out this section under section 202(c)(2) to provide financial 
assistance for the design, construction, and operation of large-scale 
projects to capture and store carbon dioxide emissions from industrial 
sources.

SEC. 205. ADDITIONAL FEDERAL AGENCY PARTICIPATION.

    (a) In General.--The Federal departments and agencies described in 
subsection (b) shall provide to impacted communities technical 
assistance and educational outreach to fund partnerships, in 
coordination with available resources.
    (b) Description of Departments and Agencies.--The Federal 
departments and agencies referred to in subsection (a) are--
            (1) the Rural Business-Cooperative Service of the 
        Department of Agriculture;
            (2) the Office of Solid Waste and Emergency Response of the 
        Environmental Protection Agency;
            (3) the Department of Energy;
            (4) the Community Development Financial Institutions Fund 
        of the Department of the Treasury;
            (5) SelectUSA and the National Institute of Standards and 
        Technology--Manufacturing Extension Partnerships of the 
        Department of Commerce;
            (6) the Corporation for National and Community Service; and
            (7) the Office of Surface Mining Reclamation and 
        Enforcement of the Department of the Interior.
                                 <all>