[Congressional Record Volume 150, Number 11 (Tuesday, February 3, 2004)]
[Senate]
[Pages S541-S545]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. GRASSLEY:
  S. 2048. A bill to amend the Internal Revenue Code of 1986 to make 
permanent the deduction for qualified tuition and related expenses and 
to repeal the sunset of the Economic Growth and Tax Relief 
Reconciliation Act of 2001 with respect to such deduction; to the 
Committee on Finance.
                                 ______
                                 
      By Mr. GRASSLEY:
  S. 2050. A bill to repeal the sunset of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 with respect to the affordable 
education provisions of such Act, and for other purposes; to the 
Committee on Finance.
  Mr. GRASSLEY. Mr. President, I am introducing two education tax bills 
today. These bills will help us make permanent the $30 billion in 
education tax incentives that were contained in the 2001 tax bill.
  The first bill will extend and make permanent the tuition deduction 
that was enacted in the Economic Growth and Tax Relief Reconciliation 
Act of 2001, Public Law 107-16, or EGTRRA. A lot of people think we 
don't spend enough money on education, but they also don't think we 
should make the 2001 tax cuts permanent. I don't know how they can 
justify that position. The education tax incentives in the 2001 tax 
bill have done a whole lot of good. The tuition tax deduction is 
available only through December 31, 2005. The cost of the provision for 
those four years was about $10 billion. So you can see that it was very 
expensive.
  For parents struggling to send their children to college, the tuition 
tax deduction has been very important. Some of them probably wish it 
were set at a higher level, but at between $2,000 and $4,000 depending 
on your income, it is still a beneficial tax incentive for the middle 
class.
  The second bill that I am introducing today will make the rest of the 
EGTRRA education tax provisions permanent, as well as the deduction for 
teacher classroom materials that was passed in the stimulus package of 
March 2002. That provision expired at the end of last year so it is 
very important that we enact it on a permanent basis and do so as soon 
as practicable.
  I hope my colleagues will join me in sponsoring these bills and will 
agree to consider them and pass them in the Senate in the next month or 
two.
  Mr. President, I ask unanimous consent that the text of the bills be 
printed in the Record.
  There being no objection, the bills were ordered to be printed in the 
Record, as follows:

                                S. 2048

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

     SECTION 1. PERMANENT DEDUCTION FOR QUALIFIED TUITION AND 
                   RELATED EXPENSES.

       (a) Permanent Deduction.--
       (1) In general.--Section 222 of the Internal Revenue Code 
     of 1986 (relating to qualified tuition and related expenses) 
     is amended by striking subsection (e).
       (2) Conforming amendment.--Subparagraph (B) of section 
     222(b)(2) of such Code (relating to applicable dollar limit) 
     is amended by striking ``2004 and 2005.--In the case of a 
     taxable year beginning in 2004 or 2005,'' and inserting 
     ``2004 and thereafter.--In the case of any taxable year 
     beginning after 2003,''.
       (b) Repeal of Suspension.--Section 901 of the Economic 
     Growth and Tax Relief Reconciliation Act of 2001 is amended 
     by adding at the end the following new subsection:
       ``(c) Exception.--Subsection (a) shall not apply to the 
     amendments made by section 431 (relating to qualified tuition 
     and related expenses).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2003.
                                  ____


                                S. 2050

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

     SECTION 1. REPEAL OF APPLICABILITY OF SUNSET OF THE ECONOMIC 
                   GROWTH AND TAX RELIEF RECONCILIATION ACT OF 
                   2001 WITH RESPECT TO AFFORDABLE EDUCATION 
                   PROVISIONS OF SUCH ACT.

       Section 901 of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is amended by adding at the end 
     the following new subsection:
       ``(c) Exception.--Subsection (a) shall not apply to the 
     amendments made by subtitles A, B, and C of title IV 
     (relating to affordable education provisions).''.

     SEC. 2. PERMANENT DEDUCTION FOR CERTAIN EXPENSES OF SCHOOL 
                   TEACHERS.

       (a) In General.--Section 62(a)(2)(D) of the Internal 
     Revenue Code of 1986 (relating to certain expenses of 
     elementary and secondary school teachers) is amended by 
     striking ``In the case of taxable years beginning during 2002 
     or 2003, the deductions'' and inserting ``The deductions''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenses paid or incurred after December 31, 
     2003.
                                 ______
                                 
      By Mr. SPECTER:
  S. 2049. A bill to amend the Surface Mining Control and Reclamation 
Act of 1977 to reauthorize collection of reclamation fees, revise the 
abandoned mine reclamation program, promote remining, authorize the 
Office of Surface Mining to collect the black lung excise tax, and make 
sundry other changes; to the Committee on Energy and Natural Resources.
  Mr. SPECTER. Mr. President, today I will introduce legislation which 
is entitled the Abandoned Mine Land Reclamation Program Extension and 
Reform Act of 2004. As I have explained briefly before, I do so because 
this program is going to be unveiled tomorrow at a ceremony in the 
Pennsylvania State Capitol attended by Secretary of the Interior Norton 
in addition to Governor Rendell and a number of other officials. While 
I would like to be present in Pennsylvania for the event, the Senate 
will be in session and there is important business to be conducted 
here. So in my absence there, I thought it appropriate to introduce 
this bill. I had planned to do so tomorrow, but there is a joint 
session of Congress in the morning and I am advised there may not be

[[Page S542]]

morning business. So I am taking just a few moments of floor time to 
introduce the bill now.
  The Bush administration has already announced the outline of the bill 
so I am not in any way preempting the administration by the 
introduction of this legislation. As I noted earlier, the 
administration had made this legislation available to me for 
introduction in conjunction with others in the Pennsylvania delegation, 
and I am pleased to do so because it will address a very serious 
problem for my State.
  By far, Pennsylvania has the most extensive problem of any of the 
States in the Union, where we have some 250,000 acres which are in need 
of reclamation. Some 2,400 miles of streams are affected on our water 
supply because Pennsylvania has been so heavily mined. Shortly after I 
came to the Senate in the early 1980s, a little town in Pennsylvania 
named Centralia received national and international attention when a 
young man fell into a deep pit and a fire was burning there. It was a 
fire which resulted from an abandoned mine. For those, if any, who may 
be watching on C-SPAN, these fires rage underground burning unmined 
coal. This fire was raging. A large hole enveloped and the young man 
fell many feet below the surface of the terrain. Fortunately, he was 
rescued.
  It was necessary to move the entire town at a very substantial cost 
borne in significant measure by the Federal Government, not entirely 
because homeowners could not fully recoup the losses of their houses. 
This bill will provide some $3 billion to take care of health and 
safety. It will be a reauthorization to the year 2018 on an 
authorization bill which is set to expire in September of this year. 
There will be a phase-out of payments ramped down until the year 2018 
when it is projected that the problem will be solved. This bill will 
improve the flexibility for the States where they can make a choice of 
their projects and make a decision based on where they need to go on 
water quality.
  It is obviously a very important matter for the environment, and 
environmental protection is a high priority in our country. I am 
pleased to see President Bush and his administration move ahead on this 
important item. It takes care of all of the smaller States with a 
minimum allocation of some $2 million. There is some assistance for the 
Combined Benefit Fund, which has been established for the benefit of 
the retired mine workers, where the health and benefit plans had been 
abrogated. We had legislation introduced and enacted several years ago, 
led by the Senator from West Virginia, Mr. Rockefeller, in conjunction 
with Senator Byrd, which I cosponsored, and we tried to provide for the 
retirement health benefits for the mine workers. This bill will make an 
allocation which will be helpful in that regard. It will not entirely 
satisfy the matter.
  As I noted, this is President Bush's top priority in the Interior 
section of his budget. Secretary of the Interior Norton will tour some 
mines in Pennsylvania. Again, I express my regrets not being able to be 
with her and the Governor when the event will be held in the rotunda of 
the State Capitol at 11 o'clock tomorrow. Burt we intend to have a news 
conference here in Washington simultaneously with her announcement 
there.
  Mr. SPECTER. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2049

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

     SEC. 101. SHORT TITLE.

       This Act may be cited as the ``Abandoned Mine Reclamation 
     Program Extension and Reform Act of 2004.''

     SEC. 102. AMENDMENTS TO THE SURFACE MINING CONTROL AND 
                   RECLAMATION ACT OF 1977.

       The Surface Mining Control and Reclamation Act of 1977 (30 
     U.S.C. 1201 et. seq.) is amended as follows:
       (1) Section 401(c) is amended by--
       (A) striking paragraph (2);
       (B) striking the word ``and'' after the first occurrence of 
     the word ``subsidence'' in paragraph (1) and redesignating 
     the portion of paragraph (1) following the deleted word as 
     paragraph (2); and
       (C) striking the phrase ``section 402(g)(1) of this Act'' 
     in paragraph (2) and inserting in its place ``section 
     402(g)(1) or section 403(b)(1) of this Act''.
       (2) Section 401(c)(5) is amended by inserting before the 
     semicolon ``, and other audit and collection activities under 
     sections 402(d) and 414(b) of this Act''.
       (3) Section 401(c)(6) is amended by striking everything 
     after ``Department of the Interior'' and inserting in its 
     place ``with public and private organizations conducted for 
     the purposes of this title of this Act to such extent and in 
     such amounts as are provided in appropriation acts;''.
       (4) Section 401(c)(10) is amended by striking ``section 
     411'' and inserting in its place ``section 415''.
       (5) Section 401(c)(12) is amended by striking ``section 
     402(h)'' and inserting in its place ``subsection (f) of this 
     section''.
       (6) In section 401, subsections (d) and (e) are amended to 
     read as follows:
       ``(d) Availability of Moneys From Fund.--
       ``(1) In general.--Moneys from the fund shall be available 
     for the purposes of this title of this Act, or for 
     distribution under paragraph (2) of this subsection, only 
     when appropriated therefor. Such appropriations shall be made 
     without fiscal year limitations.
       ``(2) Disposition of unappropriated state-share balance.--
     This paragraph applies to the portion of the fund that was 
     allocated to States and Indian tribes under section 402(g)(1) 
     of this Act and that was not appropriated as of the end of 
     the fiscal year ending September 30, 2004.
       ``(A) States and indian tribes not certified as of 
     september 30, 2004.--States and Indian tribes that have been 
     certified under section 411 of this Act as of September 30, 
     2004, shall receive, subject to appropriation, the 
     unappropriated balance of their allocation in annual payments 
     beginning with fiscal year 2005 and ending with fiscal year 
     2014.
       ``(B) States and indian tribes not certified as of 
     september 30, 2004.--States and Indian tribes that have not 
     been certified under section 411 of this Act as of September 
     30, 2004, shall receive, subject to appropriation, the 
     unappropriated balance of their allocation as grants awarded 
     in accordance with sections 403(b) and 405(h) of this Act.
       ``(C) States and indian tribes certifying after september 
     30, 2004.--States and Indian tribes that are certified under 
     section 411 of this Act after September 30, 2004, shall 
     receive, subject to appropriation, the portion of their 
     allocation under section 402(g)(1) of this Act that has not 
     been previously disbursed to those States and tribes as 
     grants under paragraph (2)(B) of this subsection. 
     Disbursement shall be made in annual payments, beginning with 
     the fiscal year following certification and ending with 
     fiscal year 2014. These payments shall be made using funds 
     appropriated for the purpose of making grants to States and 
     Indian tribes under section 405(h).
       ``(D) No expenditure restriction.--Monies disbursed under 
     paragraphs (2)(A) and (C) of this subsection may be expended 
     without regard to any other provision of this Act; Provided, 
     That, whenever a certified State or Indian tribe becomes 
     aware of a coal mining-related problem within its borders, 
     the State or tribe must first use those monies to promptly 
     address that problem if the site is eligible for reclamation 
     under section 404 of this Act and if the problem meets one 
     of the priorities in paragraphs (1) and (2) of section 
     403(a) of this Act.
       ``(3) Reallocation of other unappropriated balances.--
       ``(A) Rural abandoned mine reclamation program.--That part 
     of the fund allocated by section 402(g)(2) for the rural 
     abandoned mine reclamation program under section 406 of this 
     Act that has not been appropriated as of September 30, 2004, 
     shall be available for appropriation for the purposes set 
     forth in section 403(b) of this Act.
       ``(B) Federal share.--That part of the fund allocated by 
     section 402(g)(3) for use by the Secretary that has not been 
     appropriated as of September 30, 2004, shall be available for 
     appropriation for the purposes set forth in section 403(b) of 
     this Act.
       ``(C) Historic production allocation.--That part of the 
     fund allocated by section 402(g)(5) for historic production 
     supplemental grants to States and Indian tribes that has not 
     been appropriated as of September 30, 2004, shall be 
     available for appropriation for the purposes set forth in 
     section 403(b) of this Act.
       ``(e) Interest.--The Secretary of the Interior shall notify 
     the Secretary of the Treasury as to what portion of the fund 
     is not, in his or her judgment, required to meet current 
     withdrawals. The Secretary of the Treasury shall invest such 
     portion of the fund in public debt securities with maturities 
     determined by the Secretary of the Interior and suitable for 
     the needs of the fund and achieving the purposes of the 
     transfers under subsection (f). Such securities shall bear 
     interest at rates determined by the Secretary of the 
     Treasury, taking into consideration current market yields on 
     outstanding marketable obligations of the United States of 
     comparable maturities. The income on such investments shall 
     be credited to, and form a part of, the fund.''.
       (7) In Section 401, insert a new subsection (f) as follows:
       ``(f) Transfers to Combined Benefit Fund.--
       (1) Notwithstanding any other provision of law, at the 
     beginning of each fiscal year, the Secretary shall transfer 
     from the fund to the United Mine Workers of America Combined 
     Benefit Fund (referred to as the ``Combined Fund'' in this 
     title of this Act), as established under section 9702 of the 
     Internal Revenue Code of 1986 (26 U.S.C. 9702), an amount 
     equal to the amount of expenditures that the

[[Page S543]]

     trustees of the Combined Fund estimate will be debited 
     against the unassigned beneficiaries premium account under 
     section 9704(e) of the Internal Revenue Code of 1986 (26 
     U.S.C. 9704(e)) for the fiscal year of the Combined Fund in 
     which the transfer is made; Provided, That the amount 
     transferred shall not exceed the amount available under 
     paragraph (2) of this subsection.
       ``(2) In making the transfers, the Secretary shall first 
     use the interest that has been earned by and paid to the fund 
     during the preceding year, followed by any interest earned in 
     prior years and not previously transferred.
       ``(3) If, for any fiscal year, the amount transferred is 
     more or less than the actual expenditures for the unassigned 
     beneficiaries premium account in that year, the Secretary 
     shall appropriately adjust the amount transferred for the 
     next fiscal year.''.
       (8) Section 402(a) is amended to read as follows:
       ``(a) Payment; Rate.--All operators of coal mining 
     operations subject to the provisions of this Act shall pay to 
     the Secretary of the Interior, for deposit in the fund, a 
     reclamation fee according to the following schedule--
       ``(1) From October 1, 2004 through September 30, 2009--
       ``(A) 29.75 cents per ton of coal (except lignite) produced 
     by surface mining;
       ``(B) 12.75 cents per ton of coal produced by underground 
     mining; and
       ``(C) 8.5 cents per ton of lignite coal produced.
       ``(2) From October 1, 2009 through September 30, 2014--
       ``(A) 28 cents per ton of coal (except lignite) produced by 
     surface mining:
       ``(B) 12 cents per ton of coal produced by underground 
     mining; and
       ``(C) 8 cents per ton of lignite coal produced.
       ``(3) From October 1, 2014 through September 30, 2018--
       ``(A) 26.25 cents per ton of coal (except lignite) produced 
     by surface mining;
       ``(B) 11.25 cents per ton of coal produced by underground 
     mining; and
       ``(C) 7.5 cents per ton of lignite coal produced.
       ``(4) In lieu of the rates in paragraphs (1) through (3) 
     above, the operator may pay a fee of 10 per cent of the value 
     of the coal at the mine, as determined by the Secretary, for 
     each ton of coal produced by surface or underground mining; 
     Provided, That the alternate fee for lignite coal shall be 2 
     per cent of the value of the coal at the mine, as determined 
     by the secretary.''.
       (9) Section 420(b) is amended by--
       (A) striking ``Such fee'' and inserting in its place 
     ``Reclamation fees''; and
       (B) striking ``2004'' and all that follows and inserting in 
     its place ``2018''.
       (10) Section 402(c) is amended to read as follows:
       ``(c) Submission of Quarterly Reports.--
       (1) All operators of surface coal mining operations shall 
     submit a report no later than thirty days after the end of 
     each calendar quarter. The report shall include--
       ``(A) a statement of the amount of coal produced during the 
     calendar quarter, the method of coal removal and the type of 
     coal;
       ``(B) an identification of the permittee and the operator 
     of the surface coal mining operation, the owner of the coal, 
     the preparation plant or tipple receiving the coal or the 
     loading point for the coal, and the person purchasing the 
     coal from the operator or permittee;
       ``(C) the number of their permit required under section 506 
     of this Act; and
       ``(D) the identification number issued by the Mine Safety 
     and Health Administration for the operation.
       ``(2) Each quarterly report shall contain a notification of 
     any changes in the information required by paragraph (1) of 
     this subsection since the date of the preceding quarterly 
     report.
       ``(3) The operator must certify, under penalty of perjury, 
     that the information in each report is true, correct, and 
     complete. Any person, corporate officer, agent or director 
     who, on behalf of a coal mine operator, knowingly makes any 
     false statement, representation or certification or knowingly 
     fails to make any statement, representation or certification 
     required in this section shall, upon conviction, be punished 
     by a fine of not more than $10,000, or by imprisonment for 
     not more than one year, or both.
       ``(4) The information contained in the quarterly reports 
     submitted under this subsection shall be maintained by the 
     Secretary in a computerized database.''.
       (11) Section 402(d) is amended by--
       (A) striking the word ``PENALTY'' from the title and 
     inserting in its place the word ``AUDITS'';
       (B) striking paragraph (1);
       (C) redesignating paragraph (2) as paragraph (1); and
       (D) inserting paragraph (2) to read as follows:
       ``(2) The Secretary is authorized to audit compliance with 
     the excise tax payment requirements of section 4121 of the 
     Internal Revenue Code of 1986 (26 U.S.C. 4121) when 
     conducting audits under this subsection.''.
       (12) Section 402(f) is amended to read as follows:
       ``(f) Cooperation From Other Agencies.--All Federal and 
     State agencies shall fully cooperate with the Secretary of 
     the Interior in the enforcement of this section. Whenever the 
     Secretary of the Interior believes that any person has not 
     paid the full amount of the fee payable under section 402(a) 
     of this Act or the excise tax payable under section 4121 of 
     the Internal Revenue Code of 1986 (26 U.S.C. 4121), he or she 
     shall notify the Federal agency responsible for enforcing the 
     provisions of section 4121 of the Internal Revenue Code of 
     1986 (26 U.S.C. 4121).''.
       (13) Section 402(g) is amended to read as follows--
       (A) amending the title to read as follows:
       ``(g) Allocation of Fee Receipts and Other Monies Prior to 
     September 30, 2004.''.--
       (B) striking ``Except as provided in subsection (h)'' in 
     paragraph (g)(1) and inserting in its place ``Except as 
     otherwise provide din this Act'';
       (C) amending paragraphs (1)(A)(ii) and (1)(B)(ii) to read 
     as follows:
       ``(ii) Lands and waters which are eligible pursuant to 
     section 404 (in the case of a State not certified under 
     section 411). In the case of a State certified under section 
     411, eligible lands and waters shall be those which were 
     mined or processed for minerals or which were affected by 
     such mining or processing, and abandoned or left in an 
     inadequate reclamation status prior to August 3, 1977; and 
     for which there is no continuing reclamation responsibility 
     under State or other Federal laws.'';
       (D) striking ``section 401(c)(2)'' at the end of paragraph 
     (2) and inserting in its place ``for the purposes of section 
     406'';
       (E) striking everything in paragraph (4) after 
     ``subparagraph (A)'' in subparagraph (B) and inserting in its 
     place ``if the requirements of section 404(b) are met.'';
       (F) striking paragraph (5) in its entirety and inserting in 
     its place ``This subsection applies only to fees and other 
     monies payable to the fund as of September 30, 2004, and to 
     monies appropriated from the fund as of that date. Sections 
     401(d) and 403(b) of this Act govern allocations and 
     disbursements after that date.''.
       (G) striking paragraphs (6) through (8) in their entirety; 
     and
       (H) striking paragraph (h) in its entirety.
       (14) Section 403 is amended by--
       (A) amending the title to reads ``FUND OBJECTIVES AND 
     EXPENDITURES.'';
       (B) Striking the phrase ``except as provided for under 
     section 411'' in subsection (a) and inserting in its place 
     ``except as otherwise provided in this section, section 
     401(c), or section 411'';
       (C) striking the period at the end of subsection (a)(3) and 
     inserting a semicolon in its place;
       (D) amending subsection (b) to read as follows:
       ``(b) Allocation of Funds After September 30, 2004.--
       ``(1) Allocations to states and tribes.--
       ``(A) At the beginning of each fiscal year, or as soon 
     thereafter as practicable, the Secretary shall allocate the 
     monies appropriated from the fund for that year for grants to 
     States and Indian tribes under section 405(h) of this Act. An 
     allocation shall be made to each State and tribe that is 
     eligible to receive a payment under section 401(d)(2)(C) of 
     this Act and to each State and tribe that--
       ``(i) has an approved abandoned mine reclamation program 
     under section 405 of this Act that is not subject to the 
     prohibition in paragraph (c) of that section;
       ``(ii) is not certified under section 411 of this Act; and
       ``(iii) has within its jurisdiction unreclaimed lands or 
     waters that are eligible pursuant to section 404 and that 
     meet one of the priorities stated in paragraphs (1) and (2) 
     of subsection (a) of this section; Provided, That, when all 
     States and Indian tribes have completed or provided for 
     completion of reclamation of all lands and waters meeting the 
     priorities in paragraphs (1) and (2) of subsection (a) of 
     this section, this criterion will no longer apply.
       ``(B) In making these allocations, the Secretary shall use 
     a formula based on historical coal production prior to August 
     3, 1977, in those States and tribes; Provided, That--
       ``(i) Donations received under section 401(b)(3) shall be 
     allocated in accordance with any stipulations by the donor;
       ``(ii) No State or Indian tribe shall receive an allocation 
     of less than $2,000,000 under this paragraph; and
       ``(iii) No State or Indian tribe shall receive an 
     allocation of more than 25 percent of the total monies 
     appropriated for grants under section 405(h); Provided 
     further, That this restriction shall expire when fewer than 
     eight States are eligible to receive an allocation under 
     paragraph (1) of this subsection.
       ``(C) The amount dedicated by section 401(d)(2)(B) of this 
     Act to each State or Indian tribe that is not certified under 
     section 411 of this Act shall be reduced by the amount 
     allocated to that State or tribe under this paragraph.
       ``(D) Amounts allocated to States and Indian tribes under 
     this paragraph may be used to fund projects that protect, 
     repair, replace, construct, or enhance facilities relating to 
     water supply, including water distribution facilities and 
     treatment plants, to replace water supplies adversely 
     affected by coal mining practices. In making funding 
     decisions on these projects, the State or tribe need not 
     consider the priorities in subsection (a) of this section. If 
     the adverse effect on water supplies occurred both prior to 
     and after August 3, 1977 (or other applicable date under 
     section 404), section 404 shall not be construed to 
     prohibit a State or Indian tribe from using funds under 
     this paragraph if the State or Indian tribe determines 
     that such adverse effects occurred predominately prior to 
     August 3, 1977 (or other applicable date under section 
     404).

[[Page S544]]

       ``(2) Federal expenditures.--To the extent authorized by 
     annual appropriations, the Secretary may expend monies from 
     the fund for any of the following purposes--
       ``(A) providing assistance to small operators under section 
     507(c) of this Act, either directly or through grants to the 
     States, subject to the limitation contained in section 
     401(c)(11) of this Act;
       ``(B) conducting emergency reclamation activities and 
     projects under section 507(c) of this Act, either directly or 
     through grants to the States and Indian tribes;
       ``(C) meeting the objectives of the fund set forth in 
     paragraph (a) of this section for eligible lands and waters 
     pursuant to section 404 of this Act in States and on Indian 
     lands where the State or Indian tribe does not have an 
     approved abandoned mine reclamation program pursuant to 
     section 405 of this Act;
       ``(D) the administration of this title of this Act by the 
     Secretary;
       ``(E) making supplemental grants to States and Indian 
     tribes for the purposes of this title of this Act;
       ``(F) implementation of section 401(c)(6) of this Act; and
       ``(G) conducting other activities consistent with this 
     title of this Act.'';
       (E) in subsection (c), redesignating the first sentence as 
     paragraph (1), the second and third sentences as paragraph 
     (2), the fourth sentence as paragraph (3), and the last 
     sentence as paragraph (4); and
       (F) striking ``section 411(a)'' in paragraph (c)(1) and 
     inserting in its place ``section 411''.
       (15) Section 404 is amended to read as follows:

     ``SEC. 404. ELIGIBLE LANDS AND WATERS.

       ``(a) In General.--
       ``(1) Lands and waters eligible for reclamation or drainage 
     abatement expenditures under this title of this Act are those 
     which were mined for coal, or which were affected by such 
     mining, waste banks, coal processing, or other coal mining 
     processes, and abandoned or left in an inadequate reclamation 
     status prior to August 3, 1977, and for which there is no 
     continuing reclamation responsibility under State or other 
     Federal laws. For other provisions relating to lands and 
     waters eligible for such expenditures, see subsections (b) 
     and (c) of this section and sections 402(g)(1), 403(b)(1), 
     and 409 of this Act.
       ``(2) Surface coal mining operations on lands eligible for 
     remining shall not affect the eligibility of such lands for 
     reclamation and restoration under this title of this Act 
     after the release of the bond or deposit for any such 
     operation as provided under section 519 of this Act. In the 
     event the bond or deposit for a surface coal mining operation 
     on lands eligible for remining is forfeited, funds available 
     under this title of this Act may be used if the amount of 
     such bond or deposit is not sufficient to provide for 
     adequate reclamation or abatement. If conditions warrant, the 
     Secretary, State or Indian tribe shall immediately exercise 
     the appropriate authority under section 410 of this Act.
       ``(b) Initial Program Sites and Bond Forfeiture Sites With 
     Insolvent Sureties.--
       (1) Sites of surface coal mining operations conducted after 
     August 3, 1977, and lands and waters affected by such 
     operations are also eligible for reclamation or drainage 
     abatement expenditures under this title of this Act if they 
     were left in an inadequate reclamation status and if the 
     Secretary or the State, with the concurrence of the 
     Secretary, makes either of the following findings:
       ``(A) A finding that the surface coal mining operation 
     occurred during the period beginning on August 3, 1977, and 
     ending on or before the effective date of the State 
     regulatory program approved by the Secretary pursuant to 
     section 503 of this Act for the State in which the site is 
     located, and that any funds for reclamation or abatement 
     which are available pursuant to a bond or other form of 
     financial guarantee or from any other source are not 
     sufficient to provide for adequate reclamation or abatement 
     at the site.
       ``(B) A finding that the surface coal mining operation 
     occurred during the period beginning on August 3, 1977, and 
     ending on or before November 5, 1990, and that the surety for 
     the mining operation became insolvent during that period, 
     and, as of November 5, 1990, funds immediately available from 
     proceedings relating to that insolvency, or from any 
     financial guarantee or other source, are not sufficient to 
     provide for adequate reclamation or abatement at the site.
       ``(2) All sites referred to in paragraph (1) within any 
     State shall be reclaimed before the State or the Secretary 
     may make the certification referred to in section 411 of this 
     Act.
       ``(3) Amounts collected from assessment of civil penalties 
     under section 518 of this Act are authorized to be 
     appropriated for the purposes of this subsection.''.
       (16) Section 405 is amended by--
       (A) in subsection (d), striking ``sections 402 and 410'' 
     and inserting in its place ``sections 402, 414, and 415'';
       (B) in subsection (f), striking paragraph (5) in its 
     entirety and redesignating paragraphs (6) and (7) as 
     paragraphs (5) and (6);
       (C) in subsection (f)(6), striking the colon after 
     ``grant'' and inserting ``and'' before ``type'';
       (D) in subsection (g), striking the colon after ``include'' 
     and inserting ``subsection (f) of'' before ``this section''; 
     and
       (E) amending subsection (h) to read as follows:
       ``(h) Grant of Funds.--
       ``(1) In general.--Upon approval of the State Reclamation 
     Plan under this section and of the surface coal mining 
     regulatory program pursuant to section 503 of this Act, the 
     Secretary shall grant, on an annual basis, funds to the State 
     to implement the State reclamation program as approved by the 
     Secretary.
       ``(2) Application processing deadline.--Within 60 days of 
     receipt of a complete abandoned mine reclamation fund grant 
     application from any eligible State, the Secretary shall 
     grant to that State any and all funds available for such 
     purposes in the applicable appropriations act.
       ``(3) Disposition of unexpended funds.--Except as provided 
     in paragraph (5), any funds not expended within 3 years after 
     the date of any grant award shall be available for 
     reallocation or expenditure by the Secretary for any purpose 
     under section 403(b) of this Act.
       ``(4) Source of funds.--In awarding grants to States and 
     Indian tribes that were not certified under section 411 as of 
     September 30, 2004, the Secretary shall exhaust the funds 
     dedicated to those States and tribes in section 401(d)(2)(B) 
     before awarding any funding allocated to those States and 
     tribes under section 403(b)(1).
       ``(5) State set-aside.--Any State with an abandoned mine 
     reclamation program approved under subsection (d) may retain, 
     without regard to the 3-year limitation referred to in 
     paragraph (3), up to 10 percent of the total amount of the 
     grants awarded annually to the State under paragraph (1), 
     excluding grants made under the authority of section 
     403(b)(2), if those amounts are deposited into either--
       ``(A) a special trust fund established under State law that 
     may earn interest and from which the State may make 
     expenditures solely to achieve the priorities stated in 
     section 403(a) after the State is no longer eligible to 
     receive an allocation under section 403(b)(1) of this Act; or
       ``(B) an acid mine drainage abatement and treatment fund 
     established under State law and from which the State may make 
     expenditures solely for abatement of the causes of acid mine 
     drainage and treatment of the effects of that drainage in a 
     comprehensive manner within qualified hydrologic units 
     affected by coal mining practices. Any interest earned by 
     this fund shall be expended for the purposes of this 
     paragraph. For purposes of this paragraph, the term 
     ``qualified hydrologic unit'' means a hydrologic unit in 
     which water quality has been significantly affected by acid 
     mine drainage from coal mining practices in a manner that 
     adversely impacts biological resources and which contains 
     lands and waters that--
       ``(i) meet the eligibility requirements of section 404 and 
     at least one of the priorities in paragraphs (1), (2), and 
     (3) of section 403(a); and
       ``(ii) either are or are proposed to be to be the subject 
     of expenditures by the State from bond forfeiture proceeds 
     under section 509 of this Act, or from other State sources, 
     to abate or treat acid mine drainage.''
       (17) Section 406 is amended by--
       (A) striking the word ``Soil'' wherever it appears in 
     subsection (h) and inserting in its place the words ``Natural 
     Resources''; and
       (B) adding the following new subsection at the end:
       ``(i) Authorization of appropriations.--There is authorized 
     to be appropriated to the Secretary of Agriculture, from the 
     general fund of the Treasury, such sums as may be necessary 
     to carry out the provisions of this section.''.
       (18) In section 408(a), the last sentence is amended by 
     striking ``, in accordance with this subsection, who owned 
     the surface prior to May 2, 1977, and''.
       (19) Section 409 is amended--
       (A) in the second sentence of subsection (a), by striking 
     the second ``the'' before ``governing body'';
       (B) in the last sentence of subsection (a), by striking 
     ``State regulatory authorities'' and inserting in its place 
     ``States and Indian tribes'';
       (C) in subsection (b), by inserting ``section 403(b)(1)'' 
     before ``the provisions''; and
       (D) in subsection (c)(3), by striking ``which have made the 
     certification referred to in section 411(a)'' and inserting 
     in its place ``that have been certified under section 411 of 
     this Act''.
       (20) Section 410 is amended by--
       (A) inserting the title ``IN GENERAL.--'' at the beginning 
     of subsection (a);
       (B) inserting the title ``RIGHT OF ENTRY.--'' at the 
     beginning of subsection (b);
       (C) inserting a new subsection (c) to read as follows:
       ``(c) State Assumption of Emergency Reclamation Program.--
     The Secretary may propose, and, after opportunity for public 
     comment, adopt, regulations to require that States assume 
     responsibility for administering the emergency reclamation 
     program under this section to remain eligible to receive 
     grants under section 405(h) of this Act. The regulations must 
     establish procedures for that assumption, including, at a 
     minimum, a requirement that States revise their abandoned 
     mine reclamation plans approved under section 405 of this Act 
     to include provisions that--
       ``(1) authorize the State to make the findings required 
     under subsection (a) of this section; and
       ``(2) enable the State to conduct emergency reclamation 
     activities consistent with subsection (b) of this section.''.

[[Page S545]]

       (21) Section 411 is amended to read as follows:

``Sec. 411. Certification of Completion of Coal Reclamation.

       ``(a) The Governor of a State, or the head of a governing 
     body of an Indian tribe, with an approved abandoned mine 
     reclamation program under section 405, may certify to the 
     Secretary that reclamation of all eligible lands and waters 
     under section 404 with the priorities stated in paragraphs 
     (1), (2), and (3) of section 403(a) has been achieved. The 
     Secretary, after notice in the Federal Register and 
     opportunity for public comment, shall concur with such 
     certification if the Secretary determines that such 
     certification is correct.
       ``(b) The Secretary may make the certification referred to 
     in subsection (a) on behalf of any State or Indian tribe if, 
     on the basis of the inventory referred to in section 403(c), 
     all reclamation projects relating to the priorities set forth 
     in paragraphs (1), (2), and (3) of section 403(a) for 
     eligible lands and waters under section 404 in such State or 
     tribe have been completed. The Secretary shall only make such 
     certification after notice in the Federal Register and 
     opportunity for public comments.''.
       (22) Section 413(d) is amended by striking ``(33 U.S.C.A. 
     1151, et seq. as amended)'' and inserting in its place ``(33 
     U.S.C. 1251 et seq.)''.
       (23) Section 413(e) is amended by striking the comma after 
     the word ``agencies''.
       (24) Section 414 is amended to read as follows:

``Sec. 414. Interagency Cooperation.

       ``(a) In General.--All departments, boards, commissioners, 
     and agencies of the United States of America shall cooperate 
     with the Secretary by providing technical expertise, 
     personnel, equipment, materials, and supplies to implement 
     and administer the provisions of this title of this Act.
       ``(b) Excise Tax Collection.--Notwithstanding any provision 
     of law to the contrary, the Secretary is authorized to 
     collect the excise tax imposed by section 4121 of the 
     Internal Revenue Code of 1986 (26 U.S.C. 4121). The Secretary 
     of the Treasury shall enter into an agreement with the 
     Secretary providing for reimbursement of any additional 
     expenses that the Office incurs in connection with collecting 
     this tax and conducting audits related thereto.''.
       (25) Section 415 is added to read as follows:

       ``Sec. 415. Remining Incentives.

       ``(a) Notwithstanding any other provisions of this Act to 
     the contrary, the Secretary may propose, and, after 
     opportunity for public comment, adopt, regulations that would 
     prescribe conditions under which the fund may be used to 
     promote remining of eligible lands under section 404 to 
     leverage use of monies available from the fund to achieve 
     more reclamation of those lands than would otherwise be 
     likely to occur. Any such regulations shall specify that 
     these incentives will apply only in situations in which 
     the agency administering this title of this Act 
     determines, with the concurrence of the regulatory 
     authority under title V of this Act that the site is 
     otherwise not likely to be remined and reclaimed under the 
     applicable regulatory program.
       ``(b) Incentives that may be considered include, but are 
     not limited to--
       ``(1) A rebate or waiver of the reclamation fee payments 
     required under section 402(a) of this Act. The rebate or 
     waiver shall be limited to operations that remove or 
     reprocess abandoned coal mine waste or that remine sites 
     meeting the priorities in paragraph (1) or (2) of section 
     403(a). The amount of the rebate or waiver shall be limited 
     to the estimated cost of reclaiming those sites under this 
     title of this Act.
       ``(2) Use of the fund to provide financial assurance for 
     remining operations in lieu of all or part of the performance 
     bond required under section 509 of this Act.''.
       (26) section 510 is amended by--
       (A) inserting a sentence at the end of subsection (c) to 
     read as follows: ``In applying the prohibitions of this 
     subsection after October 24, 1992, the regulatory authority 
     shall not include any violation resulting from an 
     unanticipated event or condition at a surface coal mining 
     operation on lands eligible for remining under a permit held 
     by the person making the application.''; and
       (B) striking subsection (e) in its entirety.
       (27) Section 515(b)(22)(B) is amended to read as follows:
       ``(B) the areas of disposal are within either a bonded 
     permit area or the boundaries of an abandoned mine land 
     reclamation project approved under title IV of this Act, and 
     all organic matter shall be removed immediately prior to 
     spoil placement;''.
       (28) Section 701 is amended by--
       (A) in paragraph (33), striking ``section 510(e)'' and 
     inserting in its place ``section 510(c)''; and
       (B) amending paragraph (34) to read as follows:
       ``(34) the term ``lands eligible for remining'' means those 
     lands eligible for expenditures under section 404 of this 
     Act.''.

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