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                                                                                        Updated February 24, 2020

The Abandoned Mine Reclamation Fund: Issues and Legislation

in the 116th Congress


Coal mining and production in the United States in the 20th
century contributed to the nation meeting its energy
requirements and left a legacy of unreclaimed lands. As
amended, Title IV of the Surface Mining Control and
Reclamation Act of 1977 (SMCRA) authorized federal
funding to reclaim coal mining sites that operated prior to
enactment to which no other federal or state laws applied.
Sites that remain unreclaimed may continue to pose hazards
to public health, safety, and the environment. The
Abandoned Mine Reclamation Fund, established under
Section 401 of SMCRA, provides funding to eligible states
and tribes for the reclamation of surface mining impacts
associated with historical mining of coal. Title IV of
SMCRA authorized the collection of fees on the production
of coal. The use of this funding is limited to the reclamation
of coal mining sites abandoned or unreclaimed as of August
3, 1977 (date of SMCRA enactment). Title V of SMCRA
authorized the regulation of coal mining sites operating
after the law's enactment. Coal mining sites regulated under
Title V are ineligible for grants from the Abandoned Mine
Reclamation Fund. SMCRA mandated that coal mine
operators regulated under Title V are responsible for
providing financial assurance for completing site
reclamation. The Office of Surface Mining Reclamation
and Enforcement (OSMRE) within the Department of the
Interior is the federal office responsible for administering
SMCRA in coordination with eligible states and tribes.

The coal reclamation fee collection authorization in Title IV
expires at the end of FY2021. If Congress does not
reauthorize the collection of reclamation fees, SMCRA
directs the remaining balance of the Abandoned Mine
Reclamation Fund to be distributed among states and tribes
receiving grants from the fund until the balance is
expended. The following sections describe the eligibility of
sites for reclamation, estimated reclamation costs, grants to
states and tribes, reauthorization issues and proposed
legislation. This In Focus does not discuss the regulation of
coal mining sites under Title V.


Title IV of SMCRA limits funding eligibility to sites where
lands and waters have been affected by coal mining sites
abandoned or unreclaimed prior to the enactment of
SMCRA and for which there is no continuing reclamation
responsibility under other federal or state laws. The scope
of reclamation broadly includes activities to address public
health and safety issues and environmental restoration of
affected lands and waters that have been degraded by coal
mining activities. Section 403 prioritizes reclamation
according to public health, safety, and environmental
hazards. For example, safety hazards may include unstable
embankments or damaged infrastructure due to land


subsidence. The geographic scope of the site may be larger
than where the coal was mined, because it includes the
affected lands and waters.


States and tribes report incurred and estimated future
reclamation costs to OSMRE for Abandoned Mine Land
projects. Estimates of unfunded reclamation costs may vary
by the problem types among sites and the severity of
hazards. According to OSMRE, the states and tribes have
estimated total unfunded costs for the reclamation of
eligible sites of approximately $10.7 billion to date. States
and tribes periodically update estimates of unfunded
reclamation costs as site conditions or the understandings of
these conditions may change and as new sites may be
identified.


Pursuant to Section 405 of SMCRA, states and tribes must
first obtain OSMRE approval of their reclamation programs
to be eligible for grants from the Abandoned Mine
Reclamation Fund. The grants are distributed among
eligible states and tribes based on a statutory formula to
calculate their respective shares of annual coal reclamation
fee receipts based on current and historical coal production.
States with greater historical coal production generally have
more reclamation needs to address affected lands and
waters. A total of 25 coal production states and three tribes
with federally approved mine reclamation programs are
eligible for these grants.


Section 411 of SMCRA authorizes OSMRE to certify a
state or tribe once it demonstrates that it has reclaimed all
of its priority abandoned coal mining sites. Five states and
three tribes are certified: Crow Tribe, Hopi Tribe,
Louisiana, Mississippi, Montana, Navajo Nation, Texas,
and Wyoming. Since FY2008, certified states and tribes
receive state and tribal share payments from the General
Fund in lieu of the Abandoned Mine Reclamation Fund.

States with OSMRE-approved coal reclamation programs
that have not reclaimed all of their priority abandoned coal
mining sites are uncertified states. Twenty states are
uncertified: Alabama, Alaska, Arkansas, Colorado, Illinois,
Indiana, Iowa, Kansas, Kentucky, Maryland, Missouri, New
Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania,
Tennessee, Utah, Virginia, and West Virginia. The
remaining states either did not have historical coal
production or have not established an OSMRE-approved
state program.


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