Coal Royalty Fairness and Communities Investment Act of 2021
This bill addresses coal royalties and the economic vitality of coal communities, including by (1) requiring the coal lease royalty to be at least 12.5% of the assessment value of federal coal (currently, 12.5% of the value as defined by regulation); (2) establishing the Coal Area Economic Revitalization Fund; (3) providing grant assistance to impacted communities for economic and workforce development programs; (4) providing financial assistance for the design, construction, and operation of large-scale projects to capture and store carbon dioxide emissions from industrial sources; and (5) providing technical assistance and educational outreach to impacted communities.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4799 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4799
To amend the Mineral Leasing Act to make certain improvements in the
laws relating to coal royalties, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 29, 2021
Mr. Cartwright (for himself, Mr. Huffman, Mr. Lowenthal, Mr. Moulton,
and Mr. Ryan) introduced the following bill; which was referred to the
Committee on Natural Resources, and in addition to the Committee on
Energy and Commerce, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Mineral Leasing Act to make certain improvements in the
laws relating to coal royalties, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Coal Royalty
Fairness and Communities Investment Act of 2021''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--VALUATION OF FEDERAL COAL FOR PURPOSES OF ROYALTIES
Sec. 101. Valuation of coal royalties.
TITLE II--PROGRAMS TO REINVEST IN COAL-IMPACTED COMMUNITIES
Sec. 201. Establishment of Fund.
Sec. 202. Federal economic and workforce development assistance
programs.
Sec. 203. Carbon capture and sequestration.
Sec. 204. Additional Federal agency participation.
Sec. 205. Definitions.
TITLE I--VALUATION OF FEDERAL COAL FOR PURPOSES OF ROYALTIES
SEC. 101. VALUATION OF COAL ROYALTIES.
Section 7 of the Mineral Leasing Act (30 U.S.C. 207) is amended--
(1) in subsection (a), by striking the fourth sentence; and
(2) by adding at the end the following:
``(d) Royalties.--
``(1) Definitions.--In this subsection:
``(A) Assessment value.--
``(i) In general.--The term `assessment
value', with respect to Federal coal, means the
gross proceeds accruing to the lessee or the
affiliate of the lessee's first arm's length
contract for the sale of Federal coal.
``(ii) Exception.--If the Secretary cannot
identify any arm's length contract for the sale
of Federal coal, then the assessment value
means a price imputed by the Secretary based on
the coal price index.
``(B) Arm's length contract.--The term `arm's
length contract' means a contract, agreement, or
transaction for the sale of Federal coal that is
between parties that are independent of each other and
that are not affiliates.
``(C) Affiliate.--The term `affiliate', with
respect to a lessee, means a party that controls, is
controlled by, or is under common control with the
lessee, and includes a parent or subsidiary company.
``(D) Coal price index.--The term `coal price
index' means the schedule of average market prices of
Federal coal (in United States dollars) at final sale,
based on the quality and type of the Federal coal, as
determined by the Secretary, in consultation with the
Administrator of the Energy Information Administration.
``(E) Secretary.--The term `Secretary' means the
Secretary of the Interior.
``(2) Payment rate.--
``(A) In general.--Except as provided in
subparagraph (B), a lease shall require payment of a
royalty in such amount as the Secretary shall
determine, which shall not be less than 12.5 percent of
the assessment value of Federal coal.
``(B) Exception.--In the case of Federal coal
recovered by an underground mining operation, the
Secretary may establish such lower royalty payment rate
as the Secretary determines to be appropriate in lieu
of the royalty payment rate described in subparagraph
(A).
``(3) Administration.--
``(A) Reporting.--The Secretary shall ensure that
any purchaser of Federal coal shall annually submit to
the Secretary a report containing such information as
the Secretary determines to be necessary to carry out
this subsection.
``(B) Audits.--To carry out this subsection, the
Secretary may examine the records of any person engaged
in the purchase, sale, transportation, or marketing of
Federal coal.
``(4) Coal price index.--
``(A) In general.--The Secretary shall compile in a
coal price index the assessment values of coal by type
and quality of coal.
``(B) Publication.--Not less frequently than
quarterly, the Secretary shall publish in the Federal
Register and on a public website the coal price index,
along with a methodological description, including--
``(i) the method of calculation;
``(ii) the data used to calculate the coal
price index in an aggregate manner that does
not reveal proprietary information; and
``(iii) any other information the Secretary
considers appropriate to ensure transparency.
``(C) Other information.--If a person believes that
the coal price index does not accurately reflect the
assessment value of the coal produced by the person,
the person may petition the Secretary to use
information supplied by the person in lieu of the coal
price index for the purpose of determining the
assessment value of the coal produced by such person,
including all information the Secretary requires to
accurately determine the assessment value and audit the
records of the person.
``(5) Reviews.--
``(A) In general.--To ensure a transparent, fair,
and efficient administration of the Federal coal
program, and to ensure that citizens of the United
States receive a fair return on Federal coal, not later
than 3 years after the date of the enactment of this
subsection and every 3 years thereafter during the 15-
year period beginning on such date, the Comptroller
General of the United States shall submit to Congress a
report containing the results of a review conducted by
the Comptroller General of the Federal coal program,
including the administration of this subsection.
``(B) Consultation.--In conducting a review under
this paragraph, the Comptroller General shall consult
with--
``(i) the Secretary;
``(ii) the Director of the Bureau of Land
Management;
``(iii) the Secretary of Transportation;
and
``(iv) the Secretary of Energy.
``(C) Inclusions.--In conducting a review under
this paragraph, the Comptroller General shall review--
``(i) the total volume of coal production
from Federal land;
``(ii) the total volume of remaining coal
reserves on Federal land;
``(iii) the total amount of revenues
generated from the Federal coal program,
itemized by type of revenue, including lease
bonus payments and royalties;
``(iv) market prices for coal;
``(v) market prices for transportation
costs and any other deductible costs; and
``(vi) the appropriateness of royalty
rates.
``(D) Format.--The Comptroller General shall report
information in a review under this paragraph--
``(i) in the aggregate for the United
States; and
``(ii) categorized by State for at least
the top 10 Federal coal-producing States, as
determined by the Comptroller General.
``(6) Study.--The Secretary shall seek to enter into an
agreement with the National Academy of Sciences to conduct a
study to determine the most equitable method for valuation of
coal produced on Federal lands for purposes of Federal coal
leases. Not later than 18 months after the date of the
enactment of this subsection, and every five years thereafter,
the Secretary shall submit to Congress a report containing the
findings, of such study.''.
TITLE II--PROGRAMS TO REINVEST IN COAL-IMPACTED COMMUNITIES
SEC. 201. ESTABLISHMENT OF FUND.
(a) Establishment.--There is established in the Treasury of the
United States a separate account, to be administered by the Secretary
(acting through the Economic Development Administration), to be known
as the ``Coal Area Economic Revitalization Fund''.
(b) Deposits.--Of the amount of royalty revenues collected by the
United States for each fiscal year from coal leases under section 7 of
the Mineral Leasing Act (30 U.S.C. 207) (as amended by section 101(2)),
to the extent the revenues are available, there shall be deposited in
the Coal Area Economic Revitalization Fund $75,000,000.
(c) Availability of Amounts.--
(1) In general.--Subject to subsection (d) and
notwithstanding any other provision of law, for each fiscal
year, of the amounts deposited in the Coal Area Economic
Revitalization Fund under subsection (b), there shall be made
available, without further appropriation, the following
amounts:
(A) $70,000,000 to the Secretary to provide grant
assistance under covered programs for eligible
projects, in accordance with section 202.
(B) $5,000,000 to the Secretary of Energy to
provide funding for large-scale projects to capture and
store carbon dioxide emissions from industrial sources,
in accordance with section 203.
(2) Special rule.--If, with respect to a fiscal year, the
amounts in the Coal Area Economic Revitalization Fund are
insufficient to carry out paragraph (1), there shall be made
available, without further appropriation, the following:
(A) To the Secretary for the purposes described in
paragraph (1)(A), 93.333 percent of the amounts
available in the Fund.
(B) To the Secretary of Energy for the purposes
described in paragraph (1)(B), 6.666 percent of the
amounts available in the fund.
(d) Administrative Expenses.--A participating agency that receives
funds under subsection (c) may not use not more than 2 percent of the
amount the agency receives for each fiscal year to cover the
administrative expenses of the participating agency in carrying out the
covered program.
(e) Period of Availability.--The amounts deposited in the Coal Area
Economic Revitalization Fund shall remain available without fiscal year
limitation until expended.
SEC. 202. FEDERAL ECONOMIC AND WORKFORCE DEVELOPMENT ASSISTANCE
PROGRAMS.
(a) In General.--The Secretary, acting through the Economic
Development Administration, shall use the amounts made available under
section 201(c)(1) to provide grant assistance under covered programs
described in subsection (c) for eligible projects described in
subsection (d).
(b) Allocation of Funds for Covered Programs.--
(1) In general.--The Secretary shall--
(A) allocate amounts made available to carry out
this section among the covered programs in accordance
with the criteria described in paragraph (2); and
(B) not later than 30 days after allocations are
determined under subparagraph (A), provide public
notice of the availability of grant assistance under
this section through a Federal Funding Opportunity
announcement.
(2) Allocation criteria.--Not later than 120 days after the
date of enactment of this Act, the Secretary shall establish
and publish criteria for the allocation of amounts made
available to carry out this section among the covered programs.
(c) Covered Programs.--
(1) In general.--On allocation by the Secretary of amounts
from the Coal Area Economic Revitalization Fund for a covered
program under this section, the head of the applicable
participating agency shall manage grant selection (including
eligibility requirements in addition to the eligibility
requirements listed in subsection (d)), awards, and execution
of projects with respect to such amounts.
(2) Terms and conditions.--Except as otherwise provided in
this section, projects that receive grant assistance under this
section shall be subject to the eligibility rules, permitted
activities, and reporting requirements of the covered program
under which the grant is made.
(d) Eligible Projects.--
(1) Project purposes.--A project shall be eligible for
assistance under this section if the purpose of the project is
to assist impacted communities--
(A) to organize community stakeholders, analyze and
inventory community assets, evaluate needs and
resources, or develop comprehensive economic
development strategic plans;
(B) to undergo in-depth labor market analysis and
workforce development and dislocated worker planning
associated with the provision of training and
employment services;
(C) to implement linked economic and workforce
development strategies to promote local and regional
economic growth;
(D) to accelerate job creation by leveraging local
assets;
(E) to train and place workers in family-
supporting, high-demand jobs (including registered
apprenticeship and other on-the-job training models);
(F) to create linkages between community
stakeholders, economic development organization, public
and private entities, and the labor force that drive
local and regional economic growth; or
(G) to carry out other purposes approved by the
Secretary.
(2) Priority.--In selecting projects to receive assistance
under this section, the head of a participating agency shall--
(A) give priority to project applications that
establish a clear linkage between the proposed project
and the means by which the project will result in local
and regional economic growth and diversification, job
creation, or job training and reemployment for
dislocated workers, without regard to any formula used
by a participating agency to disburse other funds; and
(B) consult directly with impacted communities to
determine the greatest needs of the impacted
communities and give priority to projects that address
those needs.
(3) Specific activities and costs to be considered.--In
providing assistance under this section for projects for
economic diversification, the head of a participating agency
shall give consideration for priority, at a minimum, to the
following activities and costs:
(A) Analysis activities that build from strategic
economic development plans, including--
(i) economic and workforce data collection;
and
(ii) supply chain and industry cluster
analysis.
(B) Outreach and targeted assistance to economic
development organizations, unions, workers, and other
stakeholders.
(C) Remediation and redevelopment of coal economy
sites, as appropriate.
(D) Provision of business planning and market
exploration services.
(E) Development of business incubator programs.
(F) Facilitation of access to private capital
investment and capacity building to effectively use
capital investment.
(G) Promotion of exports from entities in the
impacted area.
(H) Workforce training and dislocated worker
services and supports for impacted workers.
(I) Costs associated with registered apprenticeship
and on-the-job training models.
(J) Temporary or short-term relocation or commuting
costs for available jobs in other parts of the
applicable State or region.
(K) Staffing, operating, and administrative costs
for the recipient organization.
(L) Comprehensive strategies that--
(i) integrate all of the activities and
costs described in subparagraphs (A) through
(K); and
(ii) leverage other investments from the
applicable participating agency and other
Federal departments and agencies.
(e) Coordination of Activities.--The Secretary shall--
(1) provide a single staff point of Federal contact (with
staffing assistance from other participating agencies, as
needed) for grants awarded under this section; and
(2) coordinate cross-agency activities at the regional
level that direct additional Federal resources to impacted
communities.
SEC. 203. CARBON CAPTURE AND SEQUESTRATION.
The Secretary of Energy shall use the amounts made available under
section 201(c)(2) to provide financial assistance for the design,
construction, and operation of large-scale projects to capture and
store carbon dioxide emissions from industrial sources.
SEC. 204. ADDITIONAL FEDERAL AGENCY PARTICIPATION.
(a) In General.--The Federal departments and agencies described in
subsection (b) shall provide to impacted communities technical
assistance and educational outreach to fund partnerships, in
coordination with available resources.
(b) Description of Departments and Agencies.--The Federal
departments and agencies referred to in subsection (a) are--
(1) the Rural Business-Cooperative Service of the
Department of Agriculture;
(2) the Office of Solid Waste and Emergency Response of the
Environmental Protection Agency;
(3) the Department of Energy;
(4) the Community Development Financial Institutions Fund
of the Department of the Treasury;
(5) SelectUSA and the National Institute of Standards and
Technology--Manufacturing Extension Partnerships of the
Department of Commerce;
(6) the Corporation for National and Community Service; and
(7) the Office of Surface Mining Reclamation and
Enforcement of the Department of the Interior.
SEC. 205. DEFINITIONS.
In this title:
(1) Coal economy.--The term ``coal economy'' means the
complete supply chain of coal reliant industries, including
coal mining, coal-fired power plants, and related
transportation, logistics, and manufacturing.
(2) Covered program.--The term ``covered program'' means
any of the following:
(A) The Assistance to Coal Communities, Economic
Adjustment Assistance, and Partnership Planning program
of the Economic Development Administration of the
Department of Commerce.
(B) The Dislocated Worker National Emergency Grants
program of the Employment and Training Administration
of the Department of Labor.
(C) The Regional Innovation Clusters and Growth
Accelerators program of the Small Business
Administration.
(D) The Technical Assistance and Demonstration
Projects program of the Appalachian Regional
Commission.
(3) Impacted community.--The term ``impacted community''
means a community or Indian tribe (as such term is defined in
section 4 of the Indian Self-Determination and Education
Assistance Act (25 U.S.C. 450b)) in the United States that has
been negatively impacted as a result of changes in the coal
economy, including a negative impact on its economy,
environment, employment, retirement benefits, infrastructure,
public health, or education.
(4) Participating agency.--The term ``participating
agency'' means a Federal agency that has primary authority over
a covered program.
(5) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Natural Resources, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Natural Resources, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Energy.
Referred to the Subcommittee on Energy and Mineral Resources.
Subcommittee Hearings Held.
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