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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7940 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 7940
To amend the Surface Mining Control and Reclamation Act of 1977 to
protect taxpayers from liability associated with the reclamation of
surface coal mining operations, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 11, 2024
Mr. Cartwright (for himself, Mrs. Dingell, Mr. Cleaver, Mr. Grijalva,
Mr. Huffman, Ms. Jayapal, Mr. Nadler, Mrs. Napolitano, Ms. Norton, Ms.
Ocasio-Cortez, Ms. Tlaib, and Ms. Lee of Pennsylvania) introduced the
following bill; which was referred to the Committee on Natural
Resources
_______________________________________________________________________
A BILL
To amend the Surface Mining Control and Reclamation Act of 1977 to
protect taxpayers from liability associated with the reclamation of
surface coal mining operations, 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.
This Act may be cited as the ``Coal Cleanup Taxpayer Protection Act
of 2024''.
SEC. 2. SURFACE COAL MINING BONDING.
Section 509 of the Surface Mining Control and Reclamation Act of
1977 (30 U.S.C. 1259) is amended--
(1) by striking subsection (c) and inserting the following:
``(c) Alternative Bonding System.--
``(1) In general.--Subject to paragraph (2), the Secretary
may approve as part of a State or Federal program an
alternative system that will--
``(A) achieve the objectives and purposes of the
bonding program pursuant to this section; and
``(B) result in no greater risk of financial
liability to the Federal Government or a State
government than the bonding program under this section.
``(2) Report required.--The Secretary may only approve an
alternative bonding system for a State under paragraph (1) if
such State submits a report to the Secretary that provides the
following information:
``(A) A history of bond forfeitures and reclamation
costs in such State in the 7-year period ending on the
date on which the report is submitted, including--
``(i) in the case of any bond forfeiture,
whether the money collected to make up the
difference between the bond and reclamation
cost was sufficient to complete the reclamation
as specified in the permit; and
``(ii) an engineer's estimate of the cost
to complete reclamation of mines for which such
State has not yet determined the cost of
reclamation.
``(B) A 5-year forecast proving the proposed bond
pool will be financially sound based on--
``(i) the proposed annual or per ton fees
paid by mining operators;
``(ii) the past and anticipated financial
performance of participating mining operators;
``(iii) market projections for the 5-year
period beginning on the date of the submission
of such report;
``(iv) the anticipated number of mining
operators participating in each year; and
``(v) anticipated reclamation costs,
including known reclamation costs and an
engineer's estimate of costs not yet known.'';
and
(2) by adding at the end the following:
``(f) Self-Bonding.--
``(1) Federal programs.--
``(A) In general.--Effective on the date of
enactment of this subsection, the Secretary--
``(i) may not accept the bond of the
applicant itself (referred to in this
subsection as a `self-bond'); and
``(ii) may accept a separate surety or
collateral bond, consistent with subsection
(b).
``(B) Existing self-bonds.--For coal mining
operations covered by a self-bond accepted by the
Secretary prior to the date of enactment of this
subsection, the permittee shall replace the self-bond
with another form of bond acceptable to the Secretary
under this section by not later than the earlier of--
``(i) the date of renewal of the permit
under section 506(d); and
``(ii) the date of any major permit
modification under section 506.
``(2) State programs.--Not later than 90 days after the
date of enactment of this subsection, the Secretary shall
notify all State regulatory authorities that allow applicants
to self-bond that the approved regulatory programs of the State
regulatory authority must be amended--
``(A) to remove the authority for applicants to
self-bond; and
``(B) to require coal mining operations covered by
a self-bond accepted by the State regulatory authority
prior to the date of enactment of this subsection to
replace the self-bond with another form of bond
acceptable under this section by not later than the
earlier of--
``(i) the date of renewal of the permit
under section 506(d); and
``(ii) the date of any major permit
modification under section 506.
``(g) Bonds Issued by Surety.--
``(1) In general.--Not later than 1 year after the date of
enactment of this subsection, the Secretary shall issue rules
establishing limitations on surety bonds accepted under this
section to minimize the risk of financial liability to the
Federal Government or a State government, including rules
regarding--
``(A) the maximum quantity of corporate surety
bonds issued by any 1 corporate surety as a percentage
of the total quantity of coal mine reclamation bonds in
any 1 State;
``(B) the minimum percentage of surety bonds
unrelated to activities regulated pursuant to this Act
required to reinsure corporate surety bonds;
``(C) the minimum collateralization required for
corporate surety bonds; and
``(D) the minimum amount of cash assets required to
be held by a corporate surety as a percentage of coal
mine reclamation bonds issued by the corporate surety.
``(2) Existing corporate bonds.--Corporate surety bonds in
existence on the date of enactment of this subsection must be
modified or replaced as necessary by not later than 1 year
after the date on which the rule is issued under paragraph (1).
``(h) Collateral Requirements.--
``(1) Real property.--Real property posted as collateral
for a bond may not include--
``(A) coal;
``(B) a coal mine;
``(C) land that includes a coal mine;
``(D) land that is located above a coal mine;
``(E) a coal processing facility;
``(F) a coal waste disposal site;
``(G) coal mining equipment unlikely to retain
salvage or resale value; or
``(H) any other property determined by the
Secretary.
``(2) Re-evaluation.--
``(A) The Secretary shall re-evaluate the value of
any nonliquid collateral, as that term is defined in
subparagraph (B), 3 years after such collateral is
posted for a bond and every three years thereafter.
``(B) In this paragraph, `nonliquid collateral' has
the meaning given to it by the Secretary, except that
such term--
``(i) includes the first lien interests in
real estate and equipment; and
``(ii) does not include--
``(I) cash;
``(II) letters of credit;
``(III) certificates of deposit;
``(IV) Federal, State, or municipal
bonds; and
``(V) investment grade securities.
``(i) Executive Compensation.--The Secretary may require the
inclusion of executive compensation, including salaries and bonuses of
officers and executives, of an applicant under this section, and any
affiliated company, as collateral for a bond under this section.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Natural Resources.
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