A bill to further the objectives of national energy policy of conserving oil and natural gas through removing excessive burdens on production of coal.

Amends the Powerplant and Industrial Fuel Use Act of 1978 to limit the sum of all severance taxes or fees, for any fiscal year, levied upon or collected from any taxpayer by a State or any political subdivision thereof on coal destined for shipment in interstate commerce for use in any powerplant or major fuel-burning installation or on any improvements or other rights, property, or assets produced, owned, or used in connection with the production of such coal.

States that such tax shall not exceed a total of 12 1/2 percent of the value of such coal produced during a fiscal year.