[House Report 117-566]
[From the U.S. Government Publishing Office]
117th Congress } { Rept. 117-566
HOUSE OF REPRESENTATIVES
2d Session } { Part 1
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SURFACE MINING CONTROL AND RECLAMATION ACT AMENDMENTS OF 2021
_______
November 16, 2022.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Grijalva, from the Committee on Natural Resources, submitted the
following
R E P O R T
together with
DISSENTING VIEWS
[To accompany H.R. 1734]
[Including cost estimate of the Congressional Budget Office]
The Committee on Natural Resources, to whom was referred
the bill (H.R. 1734) to amend the Surface Mining Control and
Reclamation Act of 1977 to allow the Secretary of the Interior
to delegate certain emergency reclamation activities to the
States and Tribes, and for other purposes, having considered
the same, reports favorably thereon without amendment and
recommends that the bill do pass.
Purpose of the Bill
The purpose of H.R. 1734 is to amend the Surface Mining
Control and Reclamation Act of 1977 to allow the Secretary of
the Interior to delegate certain emergency reclamation
activities to the states and tribes.
Background and Need for Legislation
Two centuries of coal mining occurred in the United States
before the industry was federally regulated. Prior to 1977,
mining was done with little regard to environmental
consequences and with few, if any, reclamation requirements. As
a result, millions of Americans live less than one mile from an
abandoned coal mine, which pose risks to public health, safety,
and the environment.
The Surface Mining Control and Reclamation Act of 1977\1\
(SMCRA) established a system for reclaiming Abandoned Mine
Lands (AML) using fees paid by current coal mining
companies.\2\ SMCRA also created a regulatory program to ensure
that any new surface coal mines are mined and reclaimed in an
environmentally sound manner. The Office of Surface Mining
Reclamation and Enforcement (OSMRE) within the Department of
the Interior manages the AML Reclamation Program.\3\
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\1\Pub. L. No. 95-87, 91 Stat. 445 (1977), https://
uscode.house.gov/statviewer.htm?volume=91 &page=445 (codified as
amended at various, see http://uscode.house.gov/table3/95_87.htm)
(statutory compilation as amended through P.L. 117-58 at https://
www.govinfo.gov/content/pkg/COMPS-1574/pdf/COMPS-1574.pdf).
\2\Pub. L. No. 95-87, tit. IV, 91 Stat. at 456-67 (codified as
amended at 30 U.S.C. Sec. Sec. 1231-45).
\3\Additional information available at Abandoned Mine Land
Reclamation Program, U.S. Dep't of the Interior Nat. Res. Aevenue Data,
https://revenuedata.doi.gov/how-it-works/aml-
reclamation-program/#abandoned-mine-land-areas (last visited Apr. 7,
2022).
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To qualify as an AML, a site must have been affected by
coal mining activities, abandoned prior to August 3, 1977, and
there must be no party responsible for the reclamation of the
land under state or federal laws. OSMRE maintains an inventory
of sites and features remaining to be addressed under the AML
program at https://amlis.osmre.gov, based on information
collected by states and tribes.\4\ Eligible sites are
classified into three priorities:
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\4\A single site can have multiple features--for example, one
abandoned mine site with a waste coal pile and an open mine shaft would
count as two features.
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Priority 1: Poses an extreme danger to public health,
safety, and property.
Priority 2: Creates adverse effects to public health
and safety.
Priority 3: Environmental degradation, but no impact
on public health or safety.
Title IV of SMCRA established a funding mechanism for
reclamation activities, known as the AML Fund. Current coal
mining companies pay a fee into the AML Fund for every ton of
coal mined. Originally the fee was 35 cents per ton of surface
mined coal, 15 cents per ton of coal mined underground, and 10
cents for each ton of lignite (a low-grade coal). In 2006, the
fees were lowered to 28 cents per ton for surface coal, 12
cents per ton for underground coal, and 8 cents for lignite.
Most of the annual collections are distributed by formula to
states that still have high priority abandoned coal mines, also
known as ``uncertified'' states. SMCRA designates states and
tribes as ``certified'' if they have reclaimed all identified
priority 1 and 2 AML sites. When a state or tribe becomes
certified, the source of its funding changes from AML fees to
the General Fund of the U.S. Treasury.
Originally, AML grants were subject to appropriations, but
the AML reauthorization of 2006 made them mandatory spending.
The amount states and tribes receive annually depends on the
fees collected during the previous fiscal year. In FY 2021, the
states that received the largest grants were Wyoming,
Pennsylvania, West Virginia, Kentucky, and Illinois. AML funds
may go to permitting, environmental assessments, site surveys,
development plans, engineering, construction, emergency
projects, and up to 30 percent of funds annually can be used
for projects related to acid mine drainage.\5\
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\5\30 U.S.C. Sec. 1232.
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Distribution of the funds are split up in the following
way:\6\
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\6\Abandoned Mine Land Inventory System. Office of Surface Mining
Reclamation and Enforcement. https://amlis.osmre.gov/; last accessed
June 16, 2021.
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State and tribal share grants: non-certified states receive
50 percent of the AML revenue based on coal production in their
state from 1977-present. Certified states and tribes (there are
no uncertified tribes) also receive funds equal to 50 percent
of what is collected, although it is sourced directly from the
Treasury's General Fund rather than AML fees.
Historic coal grants: 30 percent of AML fees are allocated
to states and tribes based on the amount of coal production
that occurred in the state prior to 1977.
Minimum Program Funds: 20 percent of AML fees must first be
used to fund the Minimum Program Make-Up Grants for non-
certified states. These grants ensure non-certified states
receive at least $3 million annually.
As of the introduction of H.R. 1734, the AML fees were
authorized through the end of Fiscal Year 2021. With over $11
billion in remaining abandoned coal mine cleanup costs, it was
essential that the Abandoned Mine Land program be extended past
that expiration date.
Coal communities are struggling to rebuild after enduring
significant job losses due to a long-term decline in the coal
industry. Numerous coal-producing counties are experiencing
high rates of unemployment and are seeking to invest in job-
creating economic development projects. The AML program helps
ensure that the long-term health, safety, and economic
livelihood of historic coalfield communities are restored and
protected. The full economic contribution of AML reclamation is
often more than the output and employment from reclamation
activity. Many AML projects involve public-private partnerships
which can result in sustained economic development and growth.
New economic activity can contribute to the economy beyond
annual measurements from grant spending.\7\
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\7\U.S. Dep't of the Interior, Econ. Rep. FY 2014 (2015).
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H.R. 1734 would have reauthorized the existing AML program
for 15 years, through the end of Fiscal Year 2036. The bill
would make two small changes to the program. First, the bill
would increase the minimum amount of grant money each state
receives from $3 million to $5 million. Second, states would be
allowed to spend funds directly for AML-related emergencies and
get reimbursed by OSMRE, provided that the state has an
established an approved AML Emergency Program.
OSMRE defines an AML emergency as a sudden danger or
impairment related to coal mining that presents a high
probability of substantial physical harm to the health, safety,
or general welfare of people before the danger can be abated
under normal AML program operation procedures.\8\ The objective
of an approved AML Emergency Program is to stabilize the
emergency aspect of the problem by eliminating the immediate
danger to public health, safety, and welfare. States that are
eligible for minimum program funding and that have an approved
emergency reclamation program are eligible to receive grants
and get reimbursed for emergency-related costs.
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\8\30 C.F.R. Sec. 700.5.
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Typical AML emergencies include mine subsidence, mine
drainage, mine gas problems, mining related landslides, mine
and mine refuse fires, and mine openings. These emergencies can
affect homes, businesses, roads, and other local
infrastructure. Emergency projects are often the most critical,
as they can be sudden, unknown, and ``potentially
debilitating'' to communities.\9\ The Surface Mining Control
and Reclamation Act Amendments of 2021 would allow state AML
programs to directly pay for AML-emergency cleanup and be
reimbursed. As of the bill's introduction, states can wait for
OSMRE emergency grant funding but cannot not be reimbursed for
independent work.
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\9\Hearing on H.R. 4248 Before the Subcomm. on Energy & Min. Res.
of the H. Comm. on Nat. Res., 116th Cong. (Nov.14, 2019) (not printed),
https://docs.house.gov/Committee/Calendar/ByEvent.aspx?EventID=110202
(questions for the record responses of John J. Stefanko, Deputy Sec'y,
Penn. Dep't of Env't Prot., Off. of Active & Abandoned Mine
Operations), https://docs.house.gov/meetings/II/II06/20191114/110202/
HHRG-116-II06-20191114-QFR001.pdf. John J. Stefanko, Questions for the
Record re: Legislative Hearing on H.R. 4248 https://docs.house.gov/
meetings/II/II06/20191114/110202/HHRG-116-II06-20191114-QFR001.pdf.
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H.R. 3684, the Infrastructure Investment and Jobs Act\10\
(sometimes called the Bipartisan Infrastructure Framework or
``BIF'' or the Bipartisan Infrastructure Law or ``BIL''),
signed into law on November 15, 2021, enacted the core of H.R.
1734 by reauthorizing the AML program for 13 years. The statute
also lowered the AML fees by twenty percent and appropriated an
additional $11.3 billion for abandoned coal mine land cleanup
activities.\11\
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\10\Pub. L. No. 117-58, 135 Stat. 429 (2021), https://
uscode.house.gov/statviewer.htm?volume =135&page=429.
\11\Pub. L. No. 117-58, div. D, tit. VII, 135 Stat. at 1091-94,
https://uscode.house.gov/stat
viewer.htm?volume=135&page=1091.
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Committee Action
H.R. 1734 was introduced on March 10, 2021, by
Representative Matt Cartwright (D-PA). The bill was referred to
the Committee on Natural Resources, and in addition to the
Committee on the Budget. Within the Natural Resources
Committee, the bill was referred to the Subcommittee on Energy
and Mineral Resources. On March 18, 2021, the Subcommittee held
a hearing on the bill. On May 26, 2021, the Natural Resources
Committee met to consider the bill. The Subcommittee was
discharged by unanimous consent. Rep. Garret Graves (R-LA)
offered an amendment designated Graves #87. The amendment was
withdrawn. No additional amendments were offered, and the bill
was adopted and ordered favorably reported to the House of
Representatives by voice vote.
Hearings
For the purposes of clause 3(c)(6) of House rule XIII, the
following hearing was used to develop or consider this measure:
hearing by the Subcommittee on Energy and Mineral Resources
held on March 18, 2021.
Section-by-Section Analysis
Section 1. Short title
This section provides the short title of the bill, the
``Surface Mining Control and Reclamation Act Amendments of
2021.''
Section 2. Abandoned Mine Land Reclamation Fund
This section amends the Surface Mining Control and
Reclamation Act of 1977 by extending the Abandoned Mine Land
Reclamation Fund's for 15 years, from an expiration date in
Fiscal Year 2022 to Fiscal Year 2037.
Section 3. Emergency powers
This section amends the Surface Mining Control and
Reclamation Act of 1977 by allowing the Secretary to reimburse
state and tribal governments directly from the fund for AML-
related emergencies as long as the state or tribe has an
approved Abandoned Mine Land Emergency Program. Without the
bill, the Secretary is authorized to expend money from the fund
for AML emergencies but cannot not reimburse states for their
independent work.
Section 4. Reclamation fee
This section amends the Surface Mining Control and
Reclamation Act of 1977 by increasing the minimum amount of
grant money eligible states and tribes receive from $3 million
to $5 million. This section additionally distributes in Fiscal
Year 2022 an amount to states equal to the amount withheld
under the Budget Control Act of 2011 during Fiscal Years 2013
through 2021.
Section 5. Exempt programs and activities
This section amends the Balanced Budget and Emergency
Deficit Control Act to include Payments to states and Indian
tribes from the Abandoned Mine Reclamation Fund, mandatory
grants to states and Indian tribes in the list of programs
exempt from reduction under any order issued under the
subchapter.
Committee Oversight Findings and Recommendations
Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of
rule XIII of the Rules of the House of Representatives, the
Committee on Natural Resources' oversight findings and
recommendations are reflected in the body of this report.
Compliance With House Rule XIII and Congressional
Budget Act
1. Cost of Legislation and the Congressional Budget Act.
With respect to the requirements of clause 3(c)(2) and (3) of
rule XIII of the Rules of the House of Representatives and
sections 308(a) and 402 of the Congressional Budget Act of
1974, the Committee has received the following estimate for the
bill from the Director of the Congressional Budget Office:
U.S. Congress,
Congressional Budget Office,
Washington, DC, July 27, 2021.
Hon. Raul M. Grijalva,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 1734, the Surface
Mining Control and Reclamation Act Amendments of 2021.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Janani
Shankaran.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
The bill would:
Extend the obligation of coal miners to pay
reclamation fees through 2036
Reauthorize annual payments, without further
appropriation, to states and Indian tribes under the
Abandoned Mine Lands program
Direct the Office of Surface Mining
Reclamation and Enforcement to disburse previously
sequestered amounts
Increase the minimum payment that certain
states receive from the Abandoned Mine Reclamation Fund
Estimated budgetary effects would mainly stem from
Collection of coal reclamation fees
Reauthorizing annual payments to states and
tribes and increasing minimum payments
Disbursing previously sequestered amounts
Areas of significant uncertainty include
Predicting the amount of coal reclamation
fees that would be collected under the bill
Bill summary: H.R. 1734 would extend the collection of coal
reclamation fees through 2036. The bill would reauthorize
annual payments to states and Indian tribes under the Abandoned
Mine Lands (AML) program, which would be made without further
appropriation. Under the bill, the Office of Surface Mining
Reclamation and Enforcement (OSMRE) would be required to
disburse previously sequestered amounts to states and tribes.
The bill also would exempt future payments from sequestration.
Finally, H.R. 1734 would increase the minimum annual payment
that some states receive from $3 million to $5 million.
Estimated Federal cost: The estimated budgetary effect of
H.R. 1734 is shown in Table 1. The costs of the legislation
generally fall within budget functions 300 (natural resources
and environment) and 800 (general government).
TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 1734
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By fiscal year, millions of dollars--
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2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2021-2026 2021-2031
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Increases in Direct Spending
Estimated Budget Authority................ 0 180 43 39 34 30 32 35 39 44 41 326 517
Estimated Outlays......................... 0 52 47 54 55 43 37 38 39 43 47 252 455
Increases in Revenues
Estimated Revenues.................. 0 111 103 94 84 81 79 79 79 78 77 474 865
Net Decrease (-) in the Deficit From Changes in Direct Spending and Revenues
Effect on the Deficit................. 0 -59 -57 -40 -29 -38 -42 -41 -40 -36 -29 -222 -410
Increases in Spending Subject to Appropriation
Estimated Authorization......... 0 2 2 2 2 2 n.e. n.e. n.e. n.e. n.e. 10 n.e.
Estimated Outlays......................... 0 2 2 2 2 2 n.e. n.e. n.e. n.e. n.e. 10 n.e.
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Components may not sum to totals because of rounding; n.e. = not estimated.
Basis of estimate: For this estimate, CBO assumes that the
legislation will be enacted late in fiscal year 2021; thus, any
additional payments under the bill would take effect in 2022.
Estimated outlays are based on historical spending patterns for
the affected programs.
Background: Under current law, the federal government
collects revenues from coal producers and makes payments to
states and Indian tribes and to certain multiemployer health
and pension plans that provide benefits to retirees in the coal
industry.
Coal Reclamation Fees
Under the AML program, coal producers pay reclamation fees
to the Department of the Interior based on annual production.
The authority to collect those fees, which are recorded in the
budget as revenues and deposited into the Abandoned Mine
Reclamation Fund, expires on September 30, 2021. CBO projects
that the department will collect $129 million in fees in 2021.
Payments to health plans from the Abandoned Mine Reclamation Fund
The Surface Mining Control and Reclamation Act of 1977
(SMCRA) authorizes annual payments to the United Mine Workers
of America (UMWA) multiemployer health plans that equal the
amount of interest credited each year to the Abandoned Mine
Reclamation Fund. If a payment is insufficient to cover
expected health costs in a given year, supplemental payments
from the Treasury's general fund are made to cover the
remaining costs, discussed below. CBO projects that payments to
the health plans based on the credited interest will average
$23 million annually over the 2021-2031 period.
Payments to health plans, retirement plans, and to certified states and
tribes
SMCRA authorizes supplemental payments from the general
fund of the Treasury, without further appropriation, to UMWA
health plans if interest transfers are insufficient to cover
expected costs. Current law also authorizes payments from the
general fund to UMWA retirement plans and to certain states and
tribes as discussed below. Taken together, those payments are
subject to a combined annual cap of $750 million.
OSMRE awards grants to states and tribes once they certify
that their outstanding coal reclamation projects are complete.
Under current law, certified states and tribes receive payments
that are equal to 50 percent of the coal reclamation fees
collected in those jurisdictions in the prior year. Those
payments will terminate at the end of fiscal year 2022 because
the authority to collect the reclamation fees expires at the
end of 2021. That reduction in payments to states and tribes is
exactly offset by an increase in payments to the UMWA
retirement plans after 2022. Payments to certified states and
tribes also are subject to sequestration in 2021 and 2022,
reducing budget authority for those payments by $2 million in
each year. (Sequestration is a cancellation of budgetary
resources.)
CBO expects that the annual statutory cap of $750 million
will limit payments to the UMWA health and retirement funds and
to certified states and tribes. Thus, the combined budget
authority for those programs will total $748 million annually
in 2022, after accounting for the $2 million that will be
sequestered, and $750 million each year from 2023 through 2031.
Payments to noncertified states
For noncertified states--the states that have not completed
all of their outstanding reclamation projects--OSMRE is
authorized to spend, without further appropriation, roughly 80
percent of the coal reclamation fees collected in the prior
year for reclamation grants, plus whatever amounts are
necessary to ensure that those states receive an annual minimum
payment of $3 million. Those amounts are disbursed directly
from the Abandoned Mine Reclamation Fund and are not limited by
the $750 million annual statutory cap. Beginning in 2023, OSMRE
will distribute annual payments to those states equal to the
amounts disbursed in 2022 until the remaining balances in the
fund are spent, which CBO projects will occur after 2031. CBO
projects that OSMRE will distribute, on average, $92 million
annually in such grants over the 2021-2031 period, net of
sequestration.
Revenues: H.R. 1734 would extend collection of coal
reclamation fees through 2036. Based on national coal
production forecasts produced by the Energy Information
Administration, CBO estimates that revenues from the
reclamation fees would increase between $100 million and $145
million annually over the 2022-2031 period. However, because
collecting those fees would reduce the base for income and
payroll taxes, those revenues would be partially offset by
lower income and payroll taxes. On net, CBO estimates, enacting
H.R. 1734 would increase revenues by $865 million over the
2022-2031 period (see Table 1).
Direct spending: CBO estimates that enacting H.R. 1734
would increase net direct spending by $455 million over the
2021-2031 period (see Table 2).
Base payments to noncertified states
Beginning in 2023, the bill would change the formula for
payments to noncertified states so that payments would be based
on the fees collected in prior years. Those payments also would
be exempt from sequestration. CBO estimates that such payments
under the bill would average $90 million annually over the
2022-2031 period. Because that change would reduce payments
over time to those states relative to current law, CBO
estimates that enacting this provision would reduce direct
spending by $8 million over the 2021-2031 period.
Minimum payments
In addition to the changes in the formula for base
payments, H.R. 1734 would increase the minimum annual payment
to noncertified states from $3 million to $5 million. Based on
recent years' payments, CBO estimates that beginning in 2022,
15 states would receive additional amounts to meet the new
minimum amount (at a total annual cost of about $28 million)
and the resulting spending would total $247 million over the
2021-2031 period. Those payments also would be exempt from
sequestration.
TABLE 2.--CHANGES IN DIRECT SPENDING UNDER H.R. 1734
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By fiscal year, millions of dollars--
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2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2021-2026 2021-2031
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Increases or Decreases (-) in Direct Spending
Base Payments to Noncertified States:
Estimated Budget Authority............... 0 6 14 8 1 -6 -7 -8 -8 -8 -15 23 -24
Estimated Outlays.................. 0 2 6 9 7 2 -3 -6 -8 -8 -9 27 -8
Minimum Payments:
Estimated Budget Authority............... 0 28 28 28 28 28 28 28 28 28 28 140 280
Estimated Outlays.................. 0 8 18 25 28 28 28 28 28 28 28 107 247
Previously Sequestered Amounts:
Estimated Budget Authority............... 0 143 0 0 0 0 0 0 0 0 0 143 143
Estimated Outlays.................. 0 40 54 31 17 0 0 0 0 0 0 143 143
Cap Effects:
Estimated Budget Authority............... 0 3 1 3 5 8 11 15 20 24 28 19 118
Estimated Outlays.................. 0 2 -32 -11 3 13 12 17 19 23 28 -25 73
Total Changes:
Estimated Budget Authority............... 0 180 43 39 34 30 32 35 39 44 41 326 517
Estimated Outlays.................. 0 52 47 54 55 43 37 38 39 43 47 252 455
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Components may not sum to totals because of rounding.
Previously sequestered amounts
The bill would direct OSMRE to disburse additional funds
that would be equal to the amounts that were sequestered over
the 2013-2021 period. Using information from OSMRE, CBO
estimates that enacting the provision would increase direct
spending by $143 million over the 2021-2031 period; of that
amount, $98 million would be paid from the Abandoned Mine
Reclamation Fund and $45 million would be paid from the general
fund of the Treasury.
Cap effects
Combining the effects of the additional revenues from the
reauthorized coal reclamation fees, higher minimum payments,
disbursement of previously sequestered amounts, and the changes
in both base and minimum payments to noncertified states, CBO
expects that enacting H.R. 1734 would lead to more interest
being credited to the Abandoned Mine Reclamation Fund. CBO
estimates that payments to UMWA health plans based on the
amount of credited interest would increase by a total of $116
million over the 2021-2031 period. However, CBO expects that
net spending by the health plans would be unchanged. The
increase in payments based on credited interest would reduce
the amount paid from the general fund of the Treasury for the
health plans, but that reduction would be exactly offset by an
increase in budget authority for payments for other programs
under the $750 million cap, including payments for certified
states and tribes, which would resume in 2023 under the bill.
Under H.R. 1734, payments to certified states and tribes
would be exempt from sequestration. Thus, an additional $2
million would be paid to certified states and tribes from
amounts that will be sequestered under current law in 2022.
In total, CBO estimates that enacting H.R. 1734 would
increase budget authority by $118 million over the 2021-2031
period--the sum of $116 million resulting from increased
interest credited to the Abandoned Mine Reclamation Fund and $2
million that would come from sequestered amounts. Based on
historical spending patterns for those programs, CBO estimates
that direct spending would decline by $25 million over the
2021-2026 period but increase by $73 million over the 2021-2031
period. That initial decline in spending would happen because
payments for certified states and tribes take more time to
outlay than payments to UMWA health and retirement plans.
Spending subject to appropriation: As shown in Table 1,
section 3 would authorize OSMRE to reimburse states and tribes
for certain emergency reclamation projects. Based on previous
allocations for such projects, CBO estimates that implementing
section 3 would cost $2 million annually over the 2022-2026
period; such spending would be subject to the availability of
appropriated funds. We estimate that implementing other
provisions of the bill would have no significant effect on
spending subject to appropriation.
Uncertainty: The amount of coal reclamation fees the
federal government would collect under the bill is uncertain
and could be higher or lower than CBO estimates. CBO cannot
forecast with certainty future coal prices or the volume of
production, which would affect the amount of fees collected.
The resulting direct spending also could differ from CBO's
estimate.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays and revenues that are
subject to those pay-as-you-go procedures are shown in Table 3.
TABLE 3.--CBO'S ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 1734, THE SURFACE MINING CONTROL AND RECLAMATION ACT AMENDMENTS OF 2021, AS
ORDERED REPORTED BY THE HOUSE COMMITTEE ON NATURAL RESOURCES ON MAY 26, 2021
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By fiscal year, millions of dollars--
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2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2020-2025 2020-2030
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Net Decrease in the Deficit
Pay-As-You-Go Effect.................. 0 -59 -57 -40 -29 -38 -42 -41 -40 -36 -29 -222 -410
Memorandum:
Increases in Outlays.................... 0 52 47 54 55 43 37 38 39 43 47 252 455
Increases in Revenues................... 0 111 103 94 84 81 79 79 79 78 77 474 865
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Increase in long-term deficits: CBO expects that enacting
the bill would delay the drawdown of balances in the Abandoned
Mine Reclamation Fund, resulting in additional direct spending
after 2040. However, CBO estimates that enacting H.R. 1734
would not increase on-budget deficits by more than $5 billion
in any of the four consecutive 10-year periods beginning in
2031.
Mandates: H.R. 1734 would impose a private-sector mandate
as defined by the Unfunded Mandates Reform Act (UMRA) by
extending the obligation of coal miners to pay a reclamation
fee, set to expire in 2022, under current law. CBO estimates
that the cost of the mandate would average about $122 million
annually over the 2022-2026 period, falling below the annual
threshold established by UMRA for the private sector ($170
million in 2021, adjusted annually for inflation).
H.R. 1734 contains no intergovernmental mandates as defined
in UMRA.
Estimate prepared by: Federal Costs: Julia Christensen
(UMWA multiemployer health plans); Noah Meyerson (UMWA
multiemployer pension plans); Janani Shankaran (AML program,
Abandoned Mine Reclamation Fund); Revenues: Nathaniel Frentz;
Mandates: Lilia Ledezma.
Estimate reviewed by: Susan Willie; Chief, Natural and
Physical Resources Cost Estimates Unit; Kathleen FitzGerald,
Chief, Public and Private Mandates Unit; Joshua Shakin, Chief,
Revenue Estimating Unit; H. Samuel Papenfuss, Deputy Director
of Budget Analysis; Theresa Gullo, Director of Budget Analysis.
2. General Performance Goals and Objectives. As required by
clause 3(c)(4) of rule XIII, the general performance goals and
objectives of this bill are to amend the Surface Mining Control
and Reclamation Act of 1977 to allow the Secretary of the
Interior to delegate certain emergency reclamation activities
to the states and tribes.
Earmark Statement
This bill does not contain any Congressional earmarks,
limited tax benefits, or limited tariff benefits as defined
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of
the House of Representatives.
Unfunded Mandates Reform Act Statement
According to CBO, would impose a private-sector mandate as
defined by the Unfunded Mandates Reform Act (UMRA) of an
average of about $122 million annually over the 2022-2026
period, falling below the annual threshold established by UMRA
for the private sector. CBO's full analysis is reproduced
above.
Existing Programs
This bill does not establish or reauthorize a program of
the federal government known to be duplicative of another
program. Such program was not included in any report from the
Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139. The Abandoned Mine Lands
(AML) Program (CFDA No. 15.252) reauthorized by this bill is
related and complementary to, but not duplicative of, the
following programs identified in the most recent Catalog of
Federal Domestic Assistance published pursuant to 31 U.S.C.
Sec. 6104: Regulation of Surface Coal Mining and Surface
Effects of Underground Coal Mining (CFDA No. 15.250), Not-for-
Profit AMD Reclamation (CFDA No. 15.253), OSM/VISTA AmeriCorps
(CFDA No. 15.254), and Science and Technology Projects Related
to Coal Mining and Reclamation (CFDA No. 15.255).
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Preemption of State, Local, or Tribal Law
Any preemptive effect of this bill over state, local, or
tribal law is intended to be consistent with the bill's
purposes and text and the Supremacy Clause of Article VI of the
U.S. Constitution.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italics, and existing law in which no
change is proposed is shown in roman):
SURFACE MINING CONTROL AND RECLAMATION ACT OF 1977
* * * * * * *
TITLE IV--ABANDONED MINE RECLAMATION
abandoned mine reclamation fund and purposes
Sec. 401. (a) There is created on the books of the Treasury
of the United States a trust fund to be known as the Abandoned
Mine Reclamation Fund (hereinafter referred to as the ``fund'')
which shall be administered by the Secretary of the Interior.
State abandoned mine reclamation funds (State funds) generated
by grants from this title shall be established by each State
pursuant to an approved State program.
(b) The fund shall consist of amounts deposited in the fund,
from time to time derived from--
(1) the reclamation fees levied under section 402;
(2) any user charge imposed on or for land reclaimed
pursuant to this title, after expenditures for
maintenance have been deducted;
(3) donations by persons, corporations, associations,
and foundations for the purposes of this title;
(4) recovered moneys as provided for in this title;
and
(5) interest credited to the fund under subsection
(e).
(c) Moneys in the fund may be used for the following
purposes:
(1) reclamation and restoration of land and water
resources adversely affected by past coal mining,
including but not limited to reclamation and
restoration of abandoned surface mine areas, abandoned
coal processing areas, and abandoned coal refuse
disposal areas; sealing and filling abandoned deep mine
entries and voids; planting of land adversely affected
by past coal mining to prevent erosion and
sedimentation; prevention, abatement, treatment, and
control of water pollution created by coal mine
drainage including restoration of stream beds, and
construction and operation of water treatment plants;
prevention, abatement, and control of burning coal
refuse disposal areas and burning coal in situ;
prevention, abatement, and control of coal mine
subsidence; and establishment of self-sustaining,
individual State administered programs to insure
private property against damages caused by land
subsidence resulting from underground coal mining in
those States which have reclamation plans approved in
accordance with section 503 of this Act: Provided, That
funds used for this purpose shall not exceed $3,000,000
of the funds made available to any State under section
402(g)(1) of this Act;
(2) acquisition and filling of voids and sealing of
tunnels, shafts, and entryways under section 409;
(3) acquisition of land as provided for in this
title;
(4) enforcement and collection of the reclamation fee
provided for in section 402 of this title;
(5) restoration, reclamation, abatement, control, or
prevention of adverse effects of coal mining which
constitutes an emergency as provided for in this title;
(6) grants to the States to accomplish the purposes
of this title;
(7) administrative expenses of the United States and
each State to accomplish the purposes of this title;
(8) for use under section 411;
(9) for the purpose of section 507(c), except that
not more than $10,000,000 shall annually be available
for such purpose;
(10) for the purpose described in section 402(h); and
(11) all other necessary expenses to accomplish the
purposes of this title.
(d) Availability of Moneys; No Fiscal Year Limitation.--
(1) In general.--Moneys from the fund for
expenditures under subparagraphs (A) through (D) of
section 402(g)(3) shall be available only when
appropriated for those subparagraphs.
(2) No fiscal year limitation.--Appropriations
described in paragraph (1) shall be made without fiscal
year limitation.
(3) Other purposes.--Moneys from the fund shall be
available for all other purposes of this title without
prior appropriation as provided in subsection (f).
(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 judgment, required to meet current withdrawals. The
Secretary of the Treasury shall invest such portion of the fund
in public debt securities with maturities suitable for
achieving the purposes of the transfers under section 402(h)
and bearing 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 for the purpose of
the transfers under section 402(h).
(f) General Limitation on Obligation Authority.--
(1) In general.--From amounts deposited into the fund
under subsection (b), the Secretary shall distribute
during each fiscal year beginning after September 30,
2007, an amount determined under paragraph (2).
(2) Amounts.--
(A) For fiscal years 2008 through [2022]
2037.--For each of fiscal years 2008 through
[2022] 2037, the amount distributed by the
Secretary under this subsection shall be equal
to--
(i) the amounts deposited into the
fund under paragraphs (1), (2), and (4)
of subsection (b) for the preceding
fiscal year that were allocated under
paragraphs (1) and (5) of section
402(g); plus
(ii) the amount needed for the
adjustment under section 402(g)(8) for
the current fiscal year.
(B) Fiscal years [2023] 2038 and
thereafter.--For fiscal year [2023] 2038 and
each fiscal year thereafter, to the extent that
funds are available, the Secretary shall
distribute an amount equal to the amount
distributed under subparagraph (A) during
fiscal year [2022] 2037.
(3) Distribution.--
(A) In general.--Except as provided in
subparagraph (B), for each fiscal year, of the
amount to be distributed to States and Indian
tribes pursuant to paragraph (2), the Secretary
shall distribute--
(i) the amounts allocated under
paragraph (1) of section 402(g), the
amounts allocated under paragraph (5)
of section 402(g), and any amount
reallocated under section 411(h)(3) in
accordance with section 411(h)(2), for
grants to States and Indian tribes
under section 402(g)(5); and
(ii) the amounts allocated under
section 402(g)(8).
(B) Exclusion.--Beginning on October 1, 2007,
certified States shall be ineligible to receive
amounts under section 402(g)(1).
(4) Availability.--Amounts in the fund available to
the Secretary for obligation under this subsection
shall be available until expended.
(5) Addition.--
(A) In general.--Subject to subparagraph (B),
the amount distributed under this subsection
for each fiscal year shall be in addition to
the amount appropriated from the fund during
the fiscal year.
(B) Exceptions.--Notwithstanding paragraph
(3), the amount distributed under this
subsection for the first 4 fiscal years
beginning on and after October 1, 2007, shall
be equal to the following percentage of the
amount otherwise required to be distributed:
(i) 50 percent in fiscal year 2008.
(ii) 50 percent in fiscal year 2009.
(iii) 75 percent in fiscal year 2010.
(iv) 75 percent in fiscal year 2011.
reclamation fee
Sec. 402. (a) 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 of 28
cents per ton of coal produced by surface coal mining and 12
cents per ton of coal produced by underground mining or 10 per
centum of the value of the coal at the mine, as determined by
the Secretary, whichever is less, except that the reclamation
fee for lignite coal shall be at a rate of 2 per centum of the
value of the coal at the mine, or 8 cents per ton, whichever is
less.
(b) Such fee shall be paid no later than thirty days after
the end of each calendar quarter beginning with the first
calendar quarter occurring after the date of enactment of this
Act, and ending [September 30, 2021] September 30, 2036.
(c) Together with such reclamation fee, all operators of coal
mine operations shall submit a statement of the amount of coal
produced during the calendar quarter, the method of coal
removal and the type of coal, the accuracy of which shall be
sworn to by the operator and notarized. Such statement shall
include an identification of the permittee of the surface coal
mining operation, any operator in addition to the permittee,
the owner of the coal, the preparation plant, tripple, or
loading point for the coal, and the person purchasing the coal
from the operator. The report shall also specify the number of
the permit required under section 506 and the mine safety and
health identification number. Each quarterly report shall
contain a notification of any changes in the information
required by this subsection since the date of the preceding
quarterly report. The information contained in the quarterly
reports under this subsection shall be maintained by the
Secretary in a computerized database.
(d)(1) Any person, corporate officer, agent or director, on
behalf of a coal mine operator, who 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.
(2) The Secretary shall conduct such audits of coal
production and the payment of fees under this title as may be
necessary to ensure full compliance with the provisions of this
title. For purposes of performing such audits the Secretary (or
any duly designated officer, employee, or representative of the
Secretary) shall, at the reasonable times, upon request, have
access to, and may copy, all books, papers, and other documents
of any person subject to the provisions of this title. The
Secretary may at any time conduct audits of any surface coal
mining and reclamation operation, including without limitation,
tipples and preparation plants, as may be necessary in the
judgment of the Secretary to ensure full and complete payment
of the fees under this title.
(e) Any portion of the reclamation fee not properly or
promptly paid pursuant to this section shall be recoverable,
with statutory interest, from coal mine operators, in any court
of competent jurisdiction in any action at law to compel
payment of debts.
(f) All Federal and State agencies shall fully cooperate with
the Secretary of the Interior in the enforcement of this
section. Whenever the Secretary believes that any person has
not paid the full amount of the fee payable under subsection
(a) the Secretary shall notify the Federal agency responsible
for ensuring compliance with the provisions of section 4121 of
the Internal Revenue Code of 1986.
(g) Allocation of Funds.--(1) Except as provided in
subsection (h), moneys deposited into the fund shall be
allocated by the Secretary to accomplish the purposes of this
title as follows:
(A) 50 percent of the reclamation fees collected
annually in any State (other than fees collected with
respect to Indian lands) shall be allocated annually by
the Secretary to the State, subject to such State
having each of the following:
(i) An approved abandoned mine reclamation
program pursuant to section 405.
(ii) Lands and waters which are eligible
pursuant to section 404 (in the case of a State
not certified under section 411(a)) or pursuant
to section 411(b) (in the case of a State
certified under section 411(a)).
(B) 50 percent of the reclamation fees collected
annually with respect to Indian lands shall be
allocated annually by the Secretary to the Indian tribe
having jurisdiction over such lands, subject to such
tribe having each of the following:
(i) an approved abandoned mine reclamation
program pursuant to section 405.
(ii) Lands and waters which are eligible
pursuant to section 404 (in the case of an
Indian tribe not certified under section
411(a)) or pursuant to section 411(b) (in the
case of a tribe certified under section
411(a)).
(C) The funds allocated by the Secretary under this
paragraph to States and Indian tribes shall only be
used for annual reclamation project construction and
program administration grants.
(D) To the extent not expended within 3 years after
the date of any grant award under this paragraph
(except for grants awarded during fiscal years 2008,
2009, and 2010 to the extent not expended within 5
years), such grant shall be available for expenditure
by the Secretary under paragraph (5).
(2) In making the grants referred to in paragraph (1)(C) and
the grants referred to in paragraph (5), the Secretary shall
ensure strict compliance by the States and Indian tribes with
the priorities described in section 403(a) until a
certification is made under section 411(a).
(3) Amounts available in the fund which are not allocated to
States and Indian tribes under paragraph (1) or allocated under
paragraph (5) are authorized to be expended by the Secretary
for any of the following:
(A) For the purpose of section 507(c), either
directly or through grants to the States, subject to
the limitation contained in section 401(c)(9).
(B) For the purpose of section 410 (relating to
emergencies).
(C) For the purpose of meeting the objectives of the
fund set forth in section 403(a) for eligible lands and
waters pursuant to section 404 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.
(D) For the administration of this title by the
Secretary.
(E) For the purpose of paragraph (8).
(4)(A) Amounts available in the fund which are not allocated
under paragraphs (1), (2), and (5) or expended under paragraph
(3) in any fiscal year are authorized to be expended by the
Secretary under this paragraph for the reclamation or drainage
abatement of lands and waters within unreclaimed sites which
are mined for coal or which were affected by such mining,
wastebanks, coal processing or other coal mining processes and
left in an inadequate reclamation status.
(B) Funds made available under this paragraph may be used for
reclamation or drainage abatement at a site referred to in
subparagraph (A) if the Secretary makes either of the following
findings:
(i) A finding that the surface coal mining operation
occurred during the period beginning on August 4, 1977,
and ending on or before the date on which the Secretary
approved a State program pursuant to section 503 for a
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.
(ii) A finding that the surface coal mining operation
occurred during the period beginning on August 4, 1977,
and ending on or before the date of enactment of this
paragraph, and that the surety of such mining operator
became insolvent during such period, and as of the date
of enactment of this paragraph, funds immediately
available from proceedings relating to such insolvency,
or from any financial guarantee or other source are not
sufficient to provide for adequate reclamation or
abatement at the site.
(C) In determining which sites to reclaim pursuant to this
paragraph, the Secretary shall follow the priorities stated in
paragraphs (1) and (2) of section 403(a). The Secretary shall
ensure that priority is given to those sites which are in the
immediate vicinity of a residential area or which have an
adverse economic impact upon a local community.
(D) Amounts collected from the assessment of civil penalties
under section 518 are authorized to be appropriated to carry
out this paragraph.
(E) Any State may expend grants made available under
paragraphs (1) and (5) for reclamation and abatement of any
site referred to in subparagraph (A) if the State, with the
concurrence of the Secretary, makes either of the findings
referred to in clause (i) or (ii) of subparagraph (B) and if
the State determines that the reclamation priority of the site
is the same or more urgent than the reclamation priority for
eligible lands and waters pursuant to section 404 under the
priorities stated in paragraphs (1) and (2) of section 403(a).
(F) For the purposes of the certification referred to in
section 411(a), sites referred to in subparagraph (A) of this
paragraph shall be considered as having the same priorities as
those stated in section 403(a) for eligible lands and waters
pursuant to section 404. All sites referred to in subparagraph
(A) of this paragraph within any State shall be reclaimed prior
to such State making the certification referred to in section
411(a).
(5)(A) The Secretary shall allocate 60 percent of the amount
in the fund after making the allocation referred to in
paragraph (1) for making additional annual grants to States and
Indian tribes which are not certified under section 411(a) to
supplement grants received by such States and Indian tribes
pursuant to paragraph (1)(C) until the priorities stated in
paragraphs (1) and (2) of section 403(a) have been achieved by
such State or Indian tribe. The allocation of such funds for
the purpose of making such expenditures shall be through a
formula based on the amount of coal historically produced in
the State or from the Indian lands concerned prior to August 3,
1977. Funds made available under paragraph (3) or (4) of this
subsection for any State or Indian tribe shall not be deducted
against any allocation of funds to the State or Indian tribe
under paragraph (1) or under this paragraph.
(B) Any amount that is reallocated and available under
section 411(h)(3) shall be in addition to amounts that are
allocated under subparagraph (A).
(6)(A) Any State with an approved abandoned mine reclamation
program pursuant to section 405 may receive and retain, without
regard to the 3-year limitation referred to in paragraph
(1)(D), up to 30 percent of the total of the grants made
annually to the State under [paragraphs (1) and (5)] paragraphs
(1), (5), and (8) if those amounts are deposited into an acid
mine drainage abatement and treatment fund established under
State law, from which amounts (together with all interest
earned on the amounts) are expended by the State for the
abatement of the causes and the treatment of the effects of
acid mine drainage in a comprehensive manner within qualified
hydrologic units affected by coal mining practices.
(B) In this paragraph, the term ``qualified hydrologic unit''
means a hydrologic unit--
(i) in which the water quality has been significantly
affected by acid mine drainage from coal mining
practices in a manner that adversely impacts biological
resources; and
(ii) that contains land and water that are--
(I) eligible pursuant to section 404 and
include any of the priorities described in
section 403(a); and
(II) the subject of expenditures by the State
from the forfeiture of bonds required under
section 509 or from other States sources to
abate and treat acid mine drainage.
(7) In complying with the priorities described in section
403(a), any State or Indian tribe may use amounts available in
grants made annually to the State or tribe under paragraphs (1)
and (5) for the reclamation of eligible land and water
described in section 403(a)(3) before the completion of
reclamation projects under paragraphs (1) and (2) of section
403(a) only if the expenditure of funds for the reclamation is
done in conjunction with the expenditure before, on, or after
the date of enactment of the Surface Mining Control and
Reclamation Act Amendments of 2006 of funds for reclamation
projects under paragraphs (1) and (2) of section 403(a).
(8)(A) In making funds available under this title, the
Secretary shall ensure that the grant awards total not less
than [$3,000,000] $5,000,000 annually to each State and each
Indian tribe having an approved abandoned mine reclamation
program pursuant to section 405 and eligible land and water
pursuant to section 404, so long as an allocation of funds to
the State or tribe is necessary to achieve the priorities
stated in paragraphs (1) and (2) of section 403(a).
(B) Notwithstanding any other provision of law, this
paragraph applies to the States of Tennessee and Missouri.
(9) From amounts withheld pursuant to the Budget
Control Act of 2011 from payments to States and Indian
Tribes under this subsection and section 411(h) of the
Surface Mining Control and Reclamation Act during
fiscal years 2013 through 2021, the Secretary shall
distribute for fiscal year 2022 an amount to each State
and Indian Tribe equal to the total amount withheld.
(h) Transfers of Interest Earned by Fund.--
(1) In general.--
(A) Transfers to combined benefit fund.--As
soon as practicable after the beginning of
fiscal year 2007 and each fiscal year
thereafter, and before making any allocation
with respect to the fiscal year under
subsection (g), the Secretary shall use an
amount not to exceed the amount of interest
that the Secretary estimates will be earned and
paid to the fund during the fiscal year to
transfer to the Combined Benefit Fund such
amounts as are estimated by the trustees of
such fund to offset the amount of any deficit
in net assets in the Combined Benefit Fund as
of October 1, 2006, and to make the transfer
described in paragraph (2)(A).
(B) Transfers to 1992 and 1993 plans.--As
soon as practicable after the beginning of
fiscal year 2008 and each fiscal year
thereafter, and before making any allocation
with respect to the fiscal year under
subsection (g), the Secretary shall use an
amount not to exceed the amount of interest
that the Secretary estimates will be earned and
paid to the fund during the fiscal year
(reduced by the amount used under subparagraph
(A)) to make the transfers described in
paragraphs (2)(B) and (2)(C).
(2) Transfers described.--The transfers referred to
in paragraph (1) are the following:
(A) United mine workers of america combined
benefit fund.--A transfer to the United Mine
Workers of America Combined Benefit Fund equal
to the amount that the trustees of the Combined
Benefit Fund estimate will be expended from the
fund for the fiscal year in which the transfer
is made, reduced by--
(i) the amount the trustees of the
Combined Benefit Fund estimate the
Combined Benefit Fund will receive
during the fiscal year in--
(I) required premiums; and
(II) payments paid by Federal
agencies in connection with
benefits provided by the
Combined Benefit Fund; and
(ii) the amount the trustees of the
Combined Benefit Fund estimate will be
expended during the fiscal year to
provide health benefits to
beneficiaries who are unassigned
beneficiaries solely as a result of the
application of section 9706(h)(1) of
the Internal Revenue Code of 1986, but
only to the extent that such amount
does not exceed the amounts described
in subsection (i)(1)(A) that the
Secretary estimates will be available
to pay such estimated expenditures.
(B) United mine workers of america 1992
benefit plan.--A transfer to the United Mine
Workers of America 1992 Benefit Plan, in an
amount equal to the difference between--
(i) the amount that the trustees of
the 1992 UMWA Benefit Plan estimate
will be expended from the 1992 UMWA
Benefit Plan during the next calendar
year to provide the benefits required
by the 1992 UMWA Benefit Plan on the
date of enactment of this subparagraph;
minus
(ii) the amount that the trustees of
the 1992 UMWA Benefit Plan estimate the
1992 UMWA Benefit Plan will receive
during the next calendar year in--
(I) required monthly per
beneficiary premiums, including
the amount of any security
provided to the 1992 UMWA
Benefit Plan that is available
for use in the provision of
benefits; and
(II) payments paid by Federal
agencies in connection with
benefits provided by the 1992
UMWA Benefit Plan.
(C) Multiemployer health benefit plan.--
(i) Transfer to the plan.--A transfer
to the Multiemployer Health Benefit
Plan established after July 20, 1992,
by the parties that are the settlors of
the 1992 UMWA Benefit Plan referred to
in subparagraph (B) (referred to in
this subparagraph and subparagraph (D)
as ``the Plan''), in an amount equal to
the excess (if any) of----
(I) the amount that the
trustees of the Plan estimate
will be expended from the Plan
during the next calendar year,
to provide benefits no greater
than those provided by the Plan
as of December 31, 2006; over
(II) the amount that the
trustees estimated the Plan
will receive during the next
calendar year in payments paid
by Federal agencies in
connection with benefits
provided by the Plan.
(ii) Calculation of excess.--The
excess determined under clause (i)
shall be calculated by taking into
account only--
(I) those beneficiaries
actually enrolled in the Plan
as of the date of the enactment
of the American Miner Benefits
Improvement Act of 2020 who are
eligible to receive health
benefits under the Plan on the
first day of the calendar year
for which the transfer is made,
other than those beneficiaries
enrolled in the Plan under the
terms of a participation
agreement with the current or
former employer of such
beneficiaries;
(II) those beneficiaries
whose health benefits, defined
as those benefits payable,
following death or retirement
or upon a finding of
disability, directly by an
employer in the bituminous coal
industry under a coal wage
agreement (as defined in
section 9701(b)(1) of the
Internal Revenue Code of 1986)
or a related coal wage
agreement, would be denied or
reduced as a result of a
bankruptcy proceeding commenced
in 2012, 2015, 2018, 2019, or
any year thereafter, (or, in
the case of any such health
benefits confirmed in any
bankruptcy proceeding, would be
subsequently denied or
reduced); and
(III) the cost of
administering the resolution of
disputes process administered
(as of the date of the
enactment of the Bipartisan
American Miners Act of 2019) by
the Trustees of the Plan.
For purposes of subclause (I), a
beneficiary enrolled in the Plan as of
the date of the enactment of the
American Miner Benefits Improvement Act
of 2020 shall be deemed to have been
eligible to receive health benefits
under the Plan on January 1, 2020.
(iii) Eligibility of certain
retirees.--Individuals referred to in
clause (ii)(II) shall be treated as
eligible to receive health benefits
under the Plan.
(iv) Requirements for transfer.--The
amount of the transfer otherwise
determined under this subparagraph for
a fiscal year shall be reduced by any
amount transferred for the fiscal year
to the Plan, to pay benefits required
under the Plan, from a voluntary
employees' beneficiary association
established as a result of a bankruptcy
proceeding described in clause (ii).
(v) VEBA transfer.--The administrator
of such voluntary employees'
beneficiary association shall transfer
to the Plan any amounts received as a
result of such bankruptcy proceeding,
reduced by an amount for administrative
costs of such association.
(vi) Related coal wage agreement.--
For purposes of clause (ii), the term
``related coal wage agreement'' means
an agreement between the United Mine
Workers of America and an employer in
the bituminous coal industry that--
(I) is a signatory operator;
or
(II) is or was a debtor in a
bankruptcy proceeding that was
consolidated, administratively
or otherwise, with the
bankruptcy proceeding of a
signatory operator or a related
person to a signatory operator
(as those terms are defined in
section 9701(c) of the Internal
Revenue Code of 1986).
(D) Individuals considered enrolled.--For
purposes of subparagraph (C), any individual
who was eligible to receive benefits from the
Plan as of the date of enactment of this
subsection, even though benefits were being
provided to the individual pursuant to a
settlement agreement approved by order of a
bankruptcy court entered on or before September
30, 2004, will be considered to be actually
enrolled in the Plan and shall receive benefits
from the Plan beginning on December 31, 2006.
(3) Adjustment.--If, for any fiscal year, the amount
of a transfer under subparagraph (A), (B), or (C) of
paragraph (2) is more or less than the amount required
to be transferred under that subparagraph, the
Secretary shall appropriately adjust the amount
transferred under that subparagraph for the next fiscal
year.
(4) Additional amounts.--
(A) Previously credited interest.--
Notwithstanding any other provision of law, any
interest credited to the fund that has not
previously been transferred to the Combined
Benefit Fund referred to in paragraph (2)(A)
under this section--
(i) shall be held in reserve by the
Secretary until such time as necessary
to make the payments under
subparagraphs (A) and (B) of subsection
(i)(1), as described in clause (ii);
and
(ii) in the event that the amounts
described in subsection (i)(1) are
insufficient to make the maximum
payments described in subparagraphs (A)
and (B) of subsection (i)(1), shall be
used by the Secretary to supplement the
payments so that the maximum amount
permitted under those paragraphs is
paid.
(B) Previously allocated amounts.--All
amounts allocated under subsection (g)(2)
before the date of enactment of this
subparagraph for the program described in
section 406, but not appropriated before that
date, shall be available to the Secretary to
make the transfers described in paragraph (2).
(C) Adequacy of previously credited
interest.--The Secretary shall--
(i) consult with the trustees of the
plans described in paragraph (2) at
reasonable intervals; and
(ii) notify Congress if a
determination is made that the amounts
held in reserve under subparagraph (A)
are insufficient to meet future
requirements under subparagraph
(A)(ii).
(D) Additional reserve amounts.--In addition
to amounts held in reserve under subparagraph
(A), there is authorized to be appropriated
such sums as may be necessary for transfer to
the fund to carry out the purposes of
subparagraph (A)(ii).
(E) Inapplicability of cap.--The limitation
described in subsection (i)(3)(A) shall not
apply to payments made from the reserve fund
under this paragraph.
(5) Limitations.--
(A) Availability of funds for next fiscal
year.--The Secretary may make transfers under
subparagraphs (B) and (C) of paragraph (2) for
a calendar year only if the Secretary
determines, using actuarial projections
provided by the trustees of the Combined
Benefit Fund referred to in paragraph (2)(A),
that amounts will be available under paragraph
(1), after the transfer, for the next fiscal
year for making the transfer under paragraph
(2)(A).
(B) Rate of contributions of obligors.--
(i) In general.--
(I) Rate.--A transfer under
paragraph (2)(C) shall not be
made for a calendar year unless
the persons that are obligated
to contribute to the plan
referred to in paragraph (2)(C)
on the date of the transfer are
obligated to make the
contributions at rates that are
no less than those in effect on
the date which is 30 days
before the date of enactment of
this subsection.
(II) Application.--The
contributions described in
subclause (I) shall be applied
first to the provision of
benefits to those plan
beneficiaries who are not
described in paragraph
(2)(C)(ii).
(ii) Initial contributions.--
(I) In general.--From the
date of enactment of the
Surface Mining Control and
Reclamation Act Amendments of
2006 through December 31, 2010,
the persons that, on the date
of enactment of that Act, are
obligated to contribute to the
plan referred to in paragraph
(2)(C) shall be obligated,
collectively, to make
contributions equal to the
amount described in paragraph
(2)(C), less the amount
actually transferred due to the
operation of subparagraph (C).
(II) First calendar year.--
Calendar year 2006 is the first
calendar year for which
contributions are required
under this clause.
(III) Amount of contribution
for 2006.--Except as provided
in subclause (IV), the amount
described in paragraph (2)(C)
for calendar year 2006 shall be
calculated as if paragraph
(2)(C) had been in effect
during 2005.
(IV) Limitation.--The
contributions required under
this clause for calendar year
2006 shall not exceed the
amount necessary for solvency
of the plan described in
paragraph (2)(C), measured as
of December 31, 2006, and
taking into account all assets
held by the plan as of that
date.
(iii) Division.--The collective
annual contribution obligation required
under clause (ii) shall be divided
among the persons subject to the
obligation, and applied uniformly,
based on the hours worked for which
contributions referred to in clause (i)
would be owed.
(C) Phase-in of transfers.--For each of
calendar years 2008 through 2010, the transfers
required under subparagraphs (B) and (C) of
paragraph (2) shall equal the following
amounts:
(i) For calendar year 2008, the
Secretary shall make transfers equal to
25 percent of the amounts that would
otherwise be required under
subparagraphs (B) and (C) of paragraph
(2).
(ii) For calendar year 2009, the
Secretary shall make transfers equal to
50 percent of the amounts that would
otherwise be required under
subparagraphs (B) and (C) of paragraph
(2).
(iii) For calendar year 2010, the
Secretary shall make transfers equal to
75 percent of the amounts that would
otherwise be required under
subparagraphs (B) and (C) of paragraph
(2).
(i) Funding.--
(1) In general.--Subject to paragraph (3), out of any
funds in the Treasury not otherwise appropriated, the
Secretary of the Treasury shall transfer to the plans
described in subsection (h)(2) such sums as are
necessary to pay the following amounts:
(A) To the Combined Fund (as defined in
section 9701(a)(5) of the Internal Revenue Code
of 1986 and referred to in this paragraph as
the ``Combined Fund''), the amount that the
trustees of the Combined Fund estimate will be
expended from premium accounts maintained by
the Combined Fund for the fiscal year to
provide benefits for beneficiaries who are
unassigned beneficiaries solely as a result of
the application of section 9706(h)(1) of the
Internal Revenue Code of 1986, subject to the
following limitations:
(i) For fiscal year 2008, the amount
paid under this subparagraph shall
equal--
(I) the amount described in
subparagraph (A); minus
(II) the amounts required
under section 9706(h)(3)(A) of
the Internal Revenue Code of
1986.
(ii) For fiscal year 2009, the amount
paid under this subparagraph shall
equal--
(I) the amount described in
subparagraph (A); minus
(II) the amounts required
under section 9706(h)(3)(B) of
the Internal Revenue Code of
1986.
(iii) For fiscal year 2010, the
amount paid under this subparagraph
shall equal--
(I) the amount described in
subparagraph (A); minus
(II) the amounts required
under section 9706(h)(3)(C) of
the Internal Revenue Code of
1986.
(B) On certification by the trustees of any
plan described in subsection (h)(2) that the
amount available for transfer by the Secretary
pursuant to this section (determined after
application of any limitation under subsection
(h)(5)) is less than the amount required to be
transferred, to the plan the amount necessary
to meet the requirement of subsection (h)(2).
(C) To the Combined Fund, $9,000,000 on
October 1, 2007, $9,000,000 on October 1, 2008,
$9,000,000 on October 1, 2009, and $9,000,000
on October 1, 2010 (which amounts shall not be
exceeded) to provide a refund of any premium
(as described in section 9704(a) of the
Internal Revenue Code of 1986) paid on or
before September 7, 2000, to the Combined Fund,
plus interest on the premium calculated at the
rate of 7.5 percent per year, on a proportional
basis and to be paid not later than 60 days
after the date on which each payment is
received by the Combined Fund, to those
signatory operators (to the extent that the
Combined Fund has not previously returned the
premium amounts to the operators), or any
related persons to the operators (as defined in
section 9701(c) of the Internal Revenue Code of
1986), or their heirs, successors, or assigns
who have been denied the refunds as the result
of final judgments or settlements if--
(i) prior to the date of enactment of
this paragraph, the signatory operator
(or any related person to the
operator)--
(I) had all of its
beneficiary assignments made
under section 9706 of the
Internal Revenue Code of 1986
voided by the Commissioner of
the Social Security
Administration; and
(II) was subject to a final
judgment or final settlement of
litigation adverse to a claim
by the operator that the
assignment of beneficiaries
under section 9706 of the
Internal Revenue Code of 1986
was unconstitutional as applied
to the operator; and
(ii) on or before September 7, 2000,
the signatory operator (or any related
person to the operator) had paid to the
Combined Fund any premium amount that
had not been refunded.
(2) Payments to states and indian tribes.--Subject to
paragraph (3), out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury
shall transfer to the Secretary of the Interior for
distribution to States and Indian tribes such sums as
are necessary to pay amounts described in paragraphs
(1)(A) and (2)(A) of section 411(h).
(3) Limitations.--
(A) Cap.--The total amount transferred under
this subsection for any fiscal year shall not
exceed $750,000,000.
(B) Insufficient amounts.--In a case in which
the amount required to be transferred without
regard to this paragraph exceeds the maximum
annual limitation in subparagraph (A), the
Secretary shall adjust the transfers of funds
under paragraph (1) so that--
(i) each such transfer for the fiscal
year is a percentage of the amount
described;
(ii) the amount is determined without
regard to subsection (h)(5)(A); and
(iii) the percentage transferred is
the same for all transfers made under
paragraph (1) for the fiscal year.
(C) Increase in limitation to account for
calculation of health benefit plan excess.--The
dollar limitation under subparagraph (A) shall
be increased by the amount of the cost to
provide benefits which are taken into account
under subsection (h)(2)(C)(ii) solely by reason
of the amendments made by section 2(a) of the
American Miner Benefits Improvement Act of
2020.
(4) Additional amounts.--
(A) Calculation.--If the dollar limitation
specified in paragraph (3)(A) exceeds the
aggregate amount required to be transferred
under paragraphs (1) and (2) for a fiscal year,
the Secretary of the Treasury shall transfer an
additional amount equal to the difference
between such dollar limitation and such
aggregate amount to the trustees of the 1974
UMWA Pension Plan to pay benefits required
under that plan.
(B) Cessation of transfers.--The transfers
described in subparagraph (A) shall cease as of
the first fiscal year beginning after the first
plan year for which the funded percentage (as
defined in section 432(j)(2) of the Internal
Revenue Code of 1986) of the 1974 UMWA Pension
Plan is at least 100 percent.
(C) Prohibition on benefit increases, etc.--
During a fiscal year in which the 1974 UMWA
Pension Plan is receiving transfers under
subparagraph (A), no amendment of such plan
which increases the liabilities of the plan by
reason of any increase in benefits, any change
in the accrual of benefits, or any change in
the rate at which benefits become
nonforfeitable under the plan may be adopted
unless the amendment is required as a condition
of qualification under part I of subchapter D
of chapter 1 of the Internal Revenue Code of
1986.
(D) Critical status to be maintained.--Until
such time as the 1974 UMWA Pension Plan ceases
to be eligible for the transfers described in
subparagraph (A)--
(i) the Plan shall be treated as if
it were in critical status for purposes
of sections 412(b)(3), 432(e)(3), and
4971(g)(1)(A) of the Internal Revenue
Code of 1986 and sections 302(b)(3) and
305(e)(3) of the Employee Retirement
Income Security Act;
(ii) the Plan shall maintain and
comply with its rehabilitation plan
under section 432(e) of such Code and
section 305(e) of such Act, including
any updates thereto; and
(iii) the provisions of subsections
(c) and (d) of section 432 of such Code
and subsections (c) and (d) of section
305 of such Act shall not apply.
(E) Treatment of transfers for purposes of
withdrawal liability under erisa.--The amount
of any transfer made under subparagraph (A)
(and any earnings attributable thereto) shall
be disregarded in determining the unfunded
vested benefits of the 1974 UMWA Pension Plan
and the allocation of such unfunded vested
benefits to an employer for purposes of
determining the employer's withdrawal liability
under section 4201 of the Employee Retirement
Income Security Act of 1974.
(F) Requirement to maintain contribution
rate.--A transfer under subparagraph (A) shall
not be made for a fiscal year unless the
persons that are obligated to contribute to the
1974 UMWA Pension Plan on the date of the
transfer are obligated to make the
contributions at rates that are no less than
those in effect on the date which is 30 days
before the date of enactment of the Bipartisan
American Miners Act of 2019.
(G) Enhanced annual reporting.--
(i) In general.--Not later than the
90th day of each plan year beginning
after the date of enactment of the
Bipartisan American Miners Act of 2019,
the trustees of the 1974 UMWA Pension
Plan shall file with the Secretary of
the Treasury or the Secretary's
delegate and the Pension Benefit
Guaranty Corporation a report
(including appropriate documentation
and actuarial certifications from the
plan actuary, as required by the
Secretary of the Treasury or the
Secretary's delegate) that contains--
(I) whether the plan is in
endangered or critical status
under section 305 of the
Employee Retirement Income
Security Act of 1974 and
section 432 of the Internal
Revenue Code of 1986 as of the
first day of such plan year;
(II) the funded percentage
(as defined in section
432(j)(2) of such Code) as of
the first day of such plan
year, and the underlying
actuarial value of assets and
liabilities taken into account
in determining such percentage;
(III) the market value of the
assets of the plan as of the
last day of the plan year
preceding such plan year;
(IV) the total value of all
contributions made during the
plan year preceding such plan
year;
(V) the total value of all
benefits paid during the plan
year preceding such plan year;
(VI) cash flow projections
for such plan year and either
the 6 or 10 succeeding plan
years, at the election of the
trustees, and the assumptions
relied upon in making such
projections;
(VII) funding standard
account projections for such
plan year and the 9 succeeding
plan years, and the assumptions
relied upon in making such
projections;
(VIII) the total value of all
investment gains or losses
during the plan year preceding
such plan year;
(IX) any significant
reduction in the number of
active participants during the
plan year preceding such plan
year, and the reason for such
reduction;
(X) a list of employers that
withdrew from the plan in the
plan year preceding such plan
year, and the resulting
reduction in contributions;
(XI) a list of employers that
paid withdrawal liability to
the plan during the plan year
preceding such plan year and,
for each employer, a total
assessment of the withdrawal
liability paid, the annual
payment amount, and the number
of years remaining in the
payment schedule with respect
to such withdrawal liability;
(XII) any material changes to
benefits, accrual rates, or
contribution rates during the
plan year preceding such plan
year;
(XIII) any scheduled benefit
increase or decrease in the
plan year preceding such plan
year having a material effect
on liabilities of the plan;
(XIV) details regarding any
funding improvement plan or
rehabilitation plan and updates
to such plan;
(XV) the number of
participants and beneficiaries
during the plan year preceding
such plan year who are active
participants, the number of
participants and beneficiaries
in pay status, and the number
of terminated vested
participants and beneficiaries;
(XVI) the information
contained on the most recent
annual funding notice submitted
by the plan under section
101(f) of the Employee
Retirement Income Security Act
of 1974;
(XVII) the information
contained on the most recent
Department of Labor Form 5500
of the plan; and
(XVIII) copies of the plan
document and amendments, other
retirement benefit or ancillary
benefit plans relating to the
plan and contribution
obligations under such plans, a
breakdown of administrative
expenses of the plan,
participant census data and
distribution of benefits, the
most recent actuarial valuation
report as of the plan year,
copies of collective bargaining
agreements, and financial
reports, and such other
information as the Secretary of
the Treasury or the Secretary's
delegate, in consultation with
the Secretary of Labor and the
Director of the Pension Benefit
Guaranty Corporation, may
require.
(ii) Electronic submission.--The
report required under clause (i) shall
be submitted electronically.
(iii) Information sharing.--The
Secretary of the Treasury or the
Secretary's delegate shall share the
information in the report under clause
(i) with the Secretary of Labor.
(iv) Penalty.--Any failure to file
the report required under clause (i) on
or before the date described in such
clause shall be treated as a failure to
file a report required to be filed
under section 6058(a) of the Internal
Revenue Code of 1986, except that
section 6652(e) of such Code shall be
applied with respect to any such
failure by substituting ``$100'' for
``$25''. The preceding sentence shall
not apply if the Secretary of the
Treasury or the Secretary's delegate
determines that reasonable diligence
has been exercised by the trustees of
such plan in attempting to timely file
such report.
(H) 1974 umwa pension plan defined.--For
purposes of this paragraph, the term ``1974
UMWA Pension Plan'' has the meaning given the
term in section 9701(a)(3) of the Internal
Revenue Code of 1986, but without regard to the
limitation on participation to individuals who
retired in 1976 and thereafter.
(5) Availability of funds.--Funds shall be
transferred under paragraphs (1) and (2) beginning in
fiscal year 2008 and each fiscal year thereafter, and
shall remain available until expended.
* * * * * * *
state reclamation programs
Sec. 405. (a) Not later than the end of the one hundred and
eighty-day period immediately following the date of enactment
of this Act, the Secretary shall promulgate and publish in the
Federal Register regulations covering implementation of an
abandoned mine reclamation program incorporating the provisions
of title IV and establishing procedures and requirements for
preparation, submission, and approval of State programs
consisting of the plan and annual submissions of projects.
(b) Each State having within its borders coal mined lands
eligible for reclamation under this title, may submit to the
Secretary a State Reclamation Plan and annual projects to carry
out the purposes of this title.
(c) The Secretary shall not approve, fund, or continue to
fund a State abandoned mine reclamation program unless that
State has an approved State regulatory program pursuant to
section 503 of this Act.
(d) If the Secretary determines that State has developed and
submitted a program for reclamation of abandoned mines and has
the ability and necessary State legislation to implement the
provisions of this title, [sections 402 and 410 excepted]
section 402 excepted, the Secretary shall approve such State
program and shall grant to the State exclusive responsibility
and authority to implement the provisions of the approved
program: Provided, That the Secretary shall withdraw such
approval and authorization if he determines upon the basis of
information provided under this section that the State program
is not in compliance with the procedures, guidelines, and
requirements established under subsection 405(a).
(e) Each State Reclamation Plan shall generally identify the
areas to be reclaimed, the purposes for which the reclamation
is proposed, the relationship of the lands to be reclaimed and
the proposed reclamation to surrounding areas, the specific
criteria for ranking and identifying projects to be funded, and
the legal authority and programmatic capability to perform such
work in conformance with the provisions of this title.
(f) On an annual basis, each State having an approved State
Reclamation Plan may submit to the Secretary an application for
the support of the State program and implementation of specific
reclamation projects. Such annual requests shall include such
information as may be requested by the Secretary including:
(1) a general description of each proposed project;
(2) a priority evaluation of each proposed project;
(3) a statement of the estimated benefits in such
terms as: number of acres restored, miles of stream
improved, acres of surface lands protected from
subsidence, population protected from subsidence, air
pollution, hazards of mine and coal refuse disposal
area fires;
(4) an estimate of the cost for each proposed
project;
(5) in the case of proposed research and
demonstration projects, a description of the specific
techniques to be evaluated or objective to be attained;
(6) an identification of lands or interest therein to
be acquired and the estimated cost; and
(7) in each year after the first in which a plan is
filed under this title, an inventory of each project
funded under the previous year's grant: which inventory
shall include details of financial expenditures on such
project together with a brief description of each such
project, including project locations, landowner's name,
acreage, type of reclamation performed.
(g) The costs for each proposed project under this section
shall include; actual construction costs, actual operation and
maintenance costs of permanent facilities, planning and
engineering costs, construction inspection costs, and other
necessary administrative expenses.
(h) Upon approval of State Reclamation Plan by the Secretary
and of the surface mine regulatory program pursuant to section
503, the Secretary shall grant, on an annual basis, funds to be
expended in such State pursuant to subsection 402(g) and which
are necessary to implement the State reclamation program as
approved by the Secretary.
(i) The Secretary, through his designated agents, will
monitor the progress and quality of the program. The States
shall not be required at the start of any project to submit
complete copies of plans and specifications.
(j) The Secretary shall require annual and other reports as
may be necessary to be submitted by each State administering
the approved State reclamation program with funds provided
under this title. Such reports shall include that information
which the Secretary deems necessary to fulfill his
responsibilities under this title.
(k) Indian tribes having within their jurisdiction eligible
lands pursuant to section 404 or from which coal is produced,
shall be considered as a ``State'' for the purposes of this
title except for purposes of subsection (c) of this section
with respect to the Navajo, Hopi and Crow Indian Tribes
(l) No State shall be liable under any provision of Federal
law for any costs or damages as a result of action taken or
omitted in the course of carrying out a State abandoned mine
reclamation plan approved under this section. This subsection
shall not preclude liability for cost or damages as a result of
gross negligence or intentional misconduct by the State. For
purposes of the preceding sentence, reckless, willful, or
wanton misconduct shall constitute gross negligence.
* * * * * * *
emergency powers
Sec. 410. (a) The Secretary is authorized to expend moneys,
including through reimbursement to a State or Tribal Government
described in subsection (c), from the fund for the emergency
restoration, reclamation, abatement, control, or prevention of
adverse effects of coal mining practices, on eligible lands, if
the Secretary makes a finding of fact that--
(1) an emergency exists constituting a danger to the
public health, safety, or general welfare; and
(2) no other person or agency will act expeditiously
to restore, reclaim, abate, control, or prevent the
adverse effects of coal mining practices.
(b) The Secretary, his agents, employees, and contractors
shall have the right to enter upon any land where the emergency
exists and any other land to have access to the land where the
emergency exists to restore, reclaim, abate, control, or
prevent the adverse effects of coal mining practices and to do
all things necessary or expedient to protect the public health,
safety, or general welfare. Such entry shall be construed as an
exercise of the police power and shall not be construed as an
act of condemnation of property nor of trespass thereof. The
moneys expended for such work and the benefits accruing to any
such premises so entered upon shall be chargeable against such
land and shall mitigate or offset any claim in or any action
brought by any owner of any interest in such premises for any
alleged damages by virtue of such entry: Provided however, That
this provision is not intended to create new rights of action
or eliminate existing immunities.
(c) State or Tribal Government.--A State or Tribal Government
is eligible to receive reimbursement from the Secretary under
subsection (a) if such State or Tribal Government has
submitted, and the Secretary has approved, an Abandoned Mine
Land Emergency Program as part of an approved State or Tribal
Reclamation Plan under section 405.
* * * * * * *
----------
BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT
* * * * * * *
PART C--EMERGENCY POWERS TO ELIMINATE DEFICITS IN EXCESS OF MAXIMUM
DEFICIT AMOUNT
* * * * * * *
SEC. 255. EXEMPT PROGRAMS AND ACTIVITIES.
(a) Social Security Benefits and Tier I Railroad Retirement
Benefits.--Benefits payable under the old-age, survivors, and
disability insurance program established under title II of the
Social Security Act (42 U.S.C. 401 et seq.), and benefits
payable under sections 3 and 4 of the Railroad Retirement Act
of 1937 (45 U.S.C. 231 et seq.), shall be exempt from reduction
under any order issued under this part.
(b) Veterans Programs.--The following programs shall be
exempt from reduction under any order issued under this part:
All programs administered by the Department of
Veterans Affairs.
Special Benefits for Certain World War II Veterans
(28-0401-0-1-701).
(c) Net Interest.--No reduction of payments for net interest
(all of major functional category 900) shall be made under any
order issued under this part.
(d) Refundable Income Tax Credits.--Payments to individuals
made pursuant to provisions of the Internal Revenue Code of
1986 establishing refundable tax credits shall be exempt from
reduction under any order issued under this part.
(e) Non-defense Unobligated Balances.--Unobligated balances
of budget authority carried over from prior fiscal years,
except balances in the defense category, shall be exempt from
reduction under any order issued under this part.
(f) Optional Exemption of Military Personnel.--
(1) In general.--The President may, with respect to
any military personnel account, exempt that account
from sequestration or provide for a lower uniform
percentage reduction than would otherwise apply.
(2) Limitation.--The President may not use the
authority provided by paragraph (1) unless the
President notifies the Congress of the manner in which
such authority will be exercised on or before the date
specified in section 254(a) for the budget year.
(g) Other Programs and Activities.--
(1)(A) The following budget accounts and activities
shall be exempt from reduction under any order issued
under this part:
Activities resulting from private donations,
bequests, or voluntary contributions to the
Government.
Activities financed by voluntary payments to
the Government for goods or services to be
provided for such payments.
Administration of Territories, Northern
Mariana Islands Covenant grants (14-0412-0-1-
808).
Advances to the Unemployment Trust Fund and
Other Funds (16-0327-0-1-600).
Black Lung Disability Trust Fund Refinancing
(16-0329-0-1-601).
Bonneville Power Administration Fund and
borrowing authority established pursuant to
section 13 of Public Law 93-454 (1974), as
amended (89-4045-0-3-271).
Claims, Judgments, and Relief Acts (20-1895-
0-1-808).
Compact of Free Association (14-0415-0-1-
808).
Compensation of the President (11-0209-01-1-
802).
Comptroller of the Currency, Assessment Funds
(20-8413-0-8-373).
Continuing Fund, Southeastern Power
Administration (89-5653-0-2-271).
Continuing Fund, Southwestern Power
Administration (89-5649-0-2-271).
Dual Benefits Payments Account (60-0111-0-1-
601).
Emergency Fund, Western Area Power
Administration (89-5069-0-2-271).
Exchange Stabilization Fund (20-4444-0-3-
155).
Farm Credit Administration Operating Expenses
Fund (78-4131-0-3-351).
Farm Credit System Insurance Corporation,
Farm Credit Insurance Fund (78-4171-0-3-351).
Federal Deposit Insurance Corporation,
Deposit Insurance Fund (51-4596-0-4-373).
Federal Deposit Insurance Corporation, FSLIC
Resolution Fund (51-4065-0-3-373).
Federal Deposit Insurance Corporation,
Noninterest Bearing Transaction Account
Guarantee (51-4458-0-3-373).
Federal Deposit Insurance Corporation, Senior
Unsecured Debt Guarantee (51-4457-0-3-373).
Federal Home Loan Mortgage Corporation
(Freddie Mac).
Federal Housing Finance Agency,
Administrative Expenses (95-5532-0-2-371).
Federal National Mortgage Corporation (Fannie
Mae).
Federal Payment to the District of Columbia
Judicial Retirement and Survivors Annuity Fund
(20-1713-0-1-752).
Federal Payment to the District of Columbia
Pension Fund (20-1714-0-1-601).
Federal Payments to the Railroad Retirement
Accounts (60-0113-0-1-601).
Federal Reserve Bank Reimbursement Fund (20-
1884-0-1-803).
Financial Agent Services (20-1802-0-1-803).
Foreign Military Sales Trust Fund (11-8242-0-
7-155).
Hazardous Waste Management, Conservation
Reserve Program (12-4336-0-3-999).
Host Nation Support Fund for Relocation (97-
8337-0-7-051).
Internal Revenue Collections for Puerto Rico
(20-5737-0-2-806).
Intragovernmental funds, including those from
which the outlays are derived primarily from
resources paid in from other government
accounts, except to the extent such funds are
augmented by direct appropriations for the
fiscal year during which an order is in effect.
Medical Facilities Guarantee and Loan Fund
(75-9931-0-3-551).
National Credit Union Administration, Central
Liquidity Facility (25-4470-0-3-373).
National Credit Union Administration,
Corporate Credit Union Share Guarantee Program
(25-4476-0-3-376).
National Credit Union Administration, Credit
Union Homeowners Affordability Relief Program
(25-4473-0-3-371).
National Credit Union Administration, Credit
Union Share Insurance Fund (25-4468-0-3-373).
National Credit Union Administration, Credit
Union System Investment Program (25-4474-0-3-
376).
National Credit Union Administration,
Operating fund (25-4056-0-3-373).
National Credit Union Administration, Share
Insurance Fund Corporate Debt Guarantee Program
(25-4469-0-3-376).
National Credit Union Administration, U.S.
Central Federal Credit Union Capital Program
(25-4475-0-3-376).
Office of Thrift Supervision (20-4108-0-3-
373).
Panama Canal Commission Compensation Fund
(16-5155-0-2-602).
Payment of Vietnam and USS Pueblo prisoner-
of-war claims within the Salaries and Expenses,
Foreign Claims Settlement account (15-0100-0-1-
153).
Payment to Civil Service Retirement and
Disability Fund (24-0200-0-1-805).
Payment to Department of Defense Medicare-
Eligible Retiree Health Care Fund (97-0850-0-1-
054).
Payment to Judiciary Trust Funds (10-0941-0-
1-752).
Payment to Military Retirement Fund (97-0040-
0-1-054).
Payment to the Foreign Service Retirement and
Disability Fund (19-0540-0-1-153).
Payments to Copyright Owners (03-5175-0-2-
376).
Payments to Health Care Trust Funds (75-0580-
0-1-571).
Payment to Radiation Exposure Compensation
Trust Fund (15-0333-0-1-054).
Payments to Social Security Trust Funds (28-
0404-0-1-651).
Payments to the United States Territories,
Fiscal Assistance (14-0418-0-1-806).
Payments to trust funds from excise taxes or
other receipts properly creditable to such
trust funds.
Payments to widows and heirs of deceased
Members of Congress (00-0215-0-1-801).
Postal Service Fund (18-4020-0-3-372).
Radiation Exposure Compensation Trust Fund
(15-8116-0-1-054).
Reimbursement to Federal Reserve Banks (20-
0562-0-1-803).
Salaries of Article III judges.
Soldiers and Airmen's Home, payment of claims
(84-8930-0-7-705).
Tennessee Valley Authority Fund, except
nonpower programs and activities (64-4110-0-3-
999).
Tribal and Indian trust accounts within the
Department of the Interior which fund prior
legal obligations of the Government or which
are established pursuant to Acts of Congress
regarding Federal management of tribal real
property or other fiduciary responsibilities,
including but not limited to Tribal Special
Fund (14-5265-0-2-452), Tribal Trust Fund (14-
8030-0-7-452), White Earth Settlement (14-2204-
0-1-452), and Indian Water Rights and Habitat
Acquisition (14-5505-0-2-303).
United Mine Workers of America 1992 Benefit
Plan (95-8260-0-7-551).
United Mine Workers of America 1993 Benefit
Plan (95-8535-0-7-551).
United Mine Workers of America Combined
Benefit Fund (95-8295-0-7-551).
United States Enrichment Corporation Fund
(95-4054-0-3-271).
Universal Service Fund (27-5183-0-2-376).
Vaccine Injury Compensation (75-0320-0-1-
551).
Vaccine Injury Compensation Program Trust
Fund (20-8175-0-7-551).
Payments to States and Indian Tribes from the
Abandoned Mine Reclamation Fund and payments to
States and Indian Tribes under section
402(i)(2) of the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1232(i)(2)).
(B) The following Federal retirement and disability
accounts and activities shall be exempt from reduction
under any order issued under this part:
Black Lung Disability Trust Fund (20-8144-0-
7-601).
Central Intelligence Agency Retirement and
Disability System Fund (56-3400-0-1-054).
Civil Service Retirement and Disability Fund
(24-8135-0-7-602).
Comptrollers general retirement system (05-
0107-0-1-801).
Contributions to U.S. Park Police annuity
benefits, Other Permanent Appropriations (14-
9924-0-2-303).
Court of Appeals for Veterans Claims
Retirement Fund (95-8290-0-7-705).
Department of Defense Medicare-Eligible
Retiree Health Care Fund (97-5472-0-2-551).
District of Columbia Federal Pension Fund
(20-5511-0-2-601).
District of Columbia Judicial Retirement and
Survivors Annuity Fund (20-8212-0-7-602).
Energy Employees Occupational Illness
Compensation Fund (16-1523-0-1-053).
Foreign National Employees Separation Pay
(97-8165-0-7-051).
Foreign Service National Defined
Contributions Retirement Fund (19-5497-0-2-
602).
Foreign Service National Separation Liability
Trust Fund (19-8340-0-7-602).
Foreign Service Retirement and Disability
Fund (19-8186-0-7-602).
Government Payment for Annuitants, Employees
Health Benefits (24-0206-0-1-551).
Government Payment for Annuitants, Employee
Life Insurance (24-0500-0-1-602).
Judicial Officers' Retirement Fund (10-8122-
0-7-602).
Judicial Survivors' Annuities Fund (10-8110-
0-7-602).
Military Retirement Fund (97-8097-0-7-602).
National Railroad Retirement Investment Trust
(60-8118-0-7-601).
National Oceanic and Atmospheric
Administration retirement (13-1450-0-1-306).
Pensions for former Presidents (47-0105-0-1-
802).
Postal Service Retiree Health Benefits Fund
(24-5391-0-2-551).
Public Safety Officer Benefits (15-0403-0-1-
754).
Rail Industry Pension Fund (60-8011-0-7-601).
Retired Pay, Coast Guard (70-0602-0-1-403).
Retirement Pay and Medical Benefits for
Commissioned Officers, Public Health Service
(75-0379-0-1-551).
September 11th Victim Compensation Fund (15-
0340-0-1-754).
Special Benefits for Disabled Coal Miners
(16-0169-0-1-601).
Special Benefits, Federal Employees'
Compensation Act (16-1521-0-1-600).
Special Workers Compensation Expenses (16-
9971-0-7-601).
Tax Court Judges Survivors Annuity Fund (23-
8115-0-7-602).
United States Court of Federal Claims Judges'
Retirement Fund (10-8124-0-7-602).
United States Secret Service, DC Annuity (70-
0400-0-1-751).
Victims Compensation Fund established under
section 410 of the Air Transportation Safety
and System Stabilization Act (49 U.S.C. 40101
note).
United States Victims of State Sponsored
Terrorism Fund.
Voluntary Separation Incentive Fund (97-8335-
0-7-051).
World Trade Center Health Program Fund (75-
0946-0-1-551).
(2) Prior legal obligations of the Government in the
following budget accounts and activities shall be
exempt from any order issued under this part:
Biomass Energy Development (20-0114-0-1-271).
Check Forgery Insurance Fund (20-4109-0-3-
803).
Credit liquidating accounts.
Credit reestimates.
Employees Life Insurance Fund (24-8424-0-8-
602).
Federal Aviation Insurance Revolving Fund
(69-4120-0-3-402).
Federal Crop Insurance Corporation Fund (12-
4085-0-3-351).
Federal Emergency Management Agency, National
Flood Insurance Fund (58-4236-0-3-453).
Geothermal resources development fund (89-
0206-0-1-271).
Low-Rent Public Housing--Loans and Other
Expenses (86-4098-0-3-604).
Maritime Administration, War Risk Insurance
Revolving Fund (69-4302-0-3-403).
Natural Resource Damage Assessment Fund (14-
1618-0-1-302).
Overseas Private Investment Corporation,
Noncredit Account (71-4184-0-3-151).
Pension Benefit Guaranty Corporation Fund
(16-4204-0-3-601).
San Joaquin Restoration Fund (14-5537-0-2-
301).
Servicemembers' Group Life Insurance Fund
(36-4009-0-3-701).
Terrorism Insurance Program (20-0123-0-1-
376).
(h) Low-income Programs.--The following programs shall be
exempt from reduction under any order issued under this part:
Academic Competitiveness/Smart Grant Program (91-
0205-0-1-502).
Child Care Entitlement to States (75-1550-0-1-609).
Child Enrollment Contingency Fund (75-5551-0-2-551).
Child Nutrition Programs (with the exception of
special milk programs) (12-3539-0-1-605).
Children's Health Insurance Fund (75-0515-0-1-551).
Commodity Supplemental Food Program (12-3507-0-1-
605).
Contingency Fund (75-1522-0-1-609).
Family Support Programs (75-1501-0-1-609).
Federal Pell Grants under section 401 of title IV of
the Higher Education Act.
Grants to States for Medicaid (75-0512-0-1-551).
Payments for Foster Care and Permanency (75-1545-0-1-
609).
Supplemental Nutrition Assistance Program (12-3505-0-
1-605).
Supplemental Security Income Program (28-0406-0-1-
609).
Temporary Assistance for Needy Families (75-1552-0-1-
609).
(i) Economic Recovery Programs.--The following programs shall
be exempt from reduction under any order issued under this
part:
GSE Preferred Stock Purchase Agreements (20-0125-0-1-
371).
Office of Financial Stability (20-0128-0-1-376).
Special Inspector General for the Troubled Asset
Relief Program (20-0133-0-1-376).
(j) Split Treatment Programs.--Each of the following programs
shall be exempt from any order under this part to the extent
that the budgetary resources of such programs are subject to
obligation limitations in appropriations bills:
Federal-Aid Highways (69-8083-0-7-401).
Highway Traffic Safety Grants (69-8020-0-7-401).
Operations and Research NHTSA and National Driver Register
(69-8016-0-7-401).
Motor Carrier Safety Operations and Programs (69-8159-0-7-
401).
Motor Carrier Safety Grants (69-8158-0-7-401).
Formula and Bus Grants (69-8350-0-7-401).
Grants-In-Aid for Airports (69-8106-0-7-402).
(k) Identification of Programs.--For purposes of subsections
(b), (g), and (h), each account is identified by the designated
budget account identification code number set forth in the
Budget of the United States Government 2010-Appendix, and an
activity within an account is designated by the name of the
activity and the identification code number of the account.
* * * * * * *
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
DISSENTING VIEWS
H.R. 1734 (Cartwright-Thompson) reauthorizes the fee to
fund the abandoned mine lands (AML) program at the level of 28
cents per ton of coal produced in surface mines, 12 cents per
ton of coal produced in underground mines and 8 cents per ton
of lignite coal produced for fifteen years. At the time this
bill was considered in Committee, the fee had been reauthorized
seven times since it was established in 1977 and had been
lowered several times, as well. The AML Fund is supported by
fees paid by coal operators on each ton of coal produced. These
funds are then reallocated to states and tribes based on a
complex distribution formula, enabling them to operate their
respective programs and reclaim abandoned mines.\1\ Due to
historic coal mining trends, most of these sites exist in the
Eastern United States, but many abandoned mines remain in
Western states, as well. If the fee had not been reauthorized
through the Infrastructure Investment and Jobs Act (IIJA) in
November 2021, the remaining unappropriated balance in the AML
Fund would have been distributed every fiscal year until
depleted after the expiration of the fee on September 30,
2021.\2\
---------------------------------------------------------------------------
\1\U.S. Department of the Interior. Office of Surface Mining
Reclamation and Enforcement. ``Grants and Funding Opportunities.''
https://www.osmre.gov/resources/grants-resources.
\2\U.S. Department of the Interior. Office of Surface Mining
Reclamation and Enforcement. ``Reclaiming Abandoned Mine Lands.''
https://www.osmre.gov/programs/reclaiming-abandoned-mine-
lands#: :text=The%20OSMRE%20Abandoned%20Mine%20Land,can%20find%20a%20new
% 20purpose.
---------------------------------------------------------------------------
Presently, 24 states, known as Primacy States, regulate
surface mining operations within their State, manage their own
AML programs, and receive disbursements from the AML Fund.\3\
Eleven states and fourteen Indian tribes are classified as non-
Primacy.\4\ Primacy States are classified as either
``certified'' states, which have certified that they have
reclaimed all abandoned coal mines within their borders, or
``uncertified'' states, which have remaining sites to reclaim.
However, not all existing AML sites are catalogued. Low
priority or previously unknown sites may become priorities as
new residential and commercial areas are developed nearby, or
as mines' conditions continue to deteriorate. For this reason,
certified states often utilize their AML funds to clean up
newly identified abandoned coal mines. Additionally, many
abandoned mine projects include the unique complication of acid
mine drainage (AMD), requiring ongoing mitigation. As a result,
many state AML programs must conduct water treatment projects
at AML sites, which must be continually maintained to prevent
future contamination.
---------------------------------------------------------------------------
\3\U.S. Department of the Interior. Office of Surface Mining
Reclamation and Enforcement. ``Oversight of Active Surface Coal
Mining.'' https://www.osmre.gov/programs/regulating-active-coal-mines/
oversight.
\4\U.S. Department of the Interior. Office of Surface Mining
Reclamation and Enforcement. ``Non-Primacy States and Tribes.'' https:/
/www.osmre.gov/programs/AMLIS/nonPrimacyST.shtm.
---------------------------------------------------------------------------
As of September 30, 2020 the AML Fund has collected a total
of $11.674 billion through the reclamation fee, including
interest.\5\ Approximately $9.461 billion has been distributed
from the AML Fund for the reclamation of abandoned mine lands,
the administration of state and Tribal grants, and
distributions to United Mine Workers of America retiree
healthcare and pension plans.\6\ For FY2022, $144.378 million
has been allocated for eligible states and tribes through the
AML grant program, with the largest amounts going to
Pennsylvania (about $26.464 million) and Wyoming (around
$30.416 million).\7\ Approximately $2.213 billion in the AML
Fund remains unappropriated.\8\
---------------------------------------------------------------------------
\5\U.S. Department of the Interior. Office of Surface Mining
Reclamation and Enforcement. ``Reclaiming Abandoned Mine Lands.''
https://www.osmre.gov/programs/reclaiming-abandoned-mine-
lands#: :text=The%20OSMRE%20Abandoned%20Mine%20Land,can%20find%20a%20new
% 20purpose.
\6\U.S. Department of the Interior. Office of Surface Mining
Reclamation and Enforcement. ``Reclaiming Abandoned Mine Lands.''
https://www.osmre.gov/programs/reclaiming-abandoned-mine-
lands#: :text=The%20OSMRE%20Abandoned%20Mine%20Land,can%20find%20a%20new
% 20purpose.
\7\U.S. Department of the Interior. Press release. March 4, 2022.
``Biden-Harris Administration Announces $144 Million to Create Good-
Paying Union Jobs, Revitalize Coal Communities.'' https://www.doi.gov/
pressreleases/biden-harris-administration-announces-144-million-create-
good -paying-union-jobs.
\8\U.S. Department of the Interior. Office of Surface Mining
Reclamation and Enforcement. ``Reclaiming Abandoned Mine Lands.''
https://www.osmre.gov/programs/reclaiming-abandoned-mine-
lands#: :text=The%20OSMRE%20Abandoned%20Mine%20Land,can%20find%20a%20new
% 20purpose.
---------------------------------------------------------------------------
While there is continuing need for AML cleanup, our nation
must balance our remediation goals with the ongoing
productivity of the domestic coal industry. The modern coal
industry was not responsible for these abandoned mine sites,
and yet has been funding their cleanup for over 40 years.
Further, coal production has decreased 39 percent since the AML
fee was last reauthorized in 2006. The energy mix in the United
States has changed over time, and if the reclamation work
completed under the AML program is to continue, coal operators
must be able to conduct their businesses in an economic,
sustainable manner.
I was pleased that Congress came to an agreement to lower
the AML fee by 20 percent for each ton of coal produced when
the fee was ultimately reauthorized in the IIJA, rather than
authorizing the higher fee level included in H.R. 1734. I was
also pleased that the fee was reauthorized for a period of
twelve years, rather than the fifteen-year authorization period
included in H.R. 1734. Given ongoing negotiations in Congress
at the time regarding lowering the AML fee and reducing the
proposed length of authorization at the time H.R. 1734 was
marked up, I opposed H.R. 1734.
Bruce Westerman.
[all]