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https://crsreports.congress.gov
Updated January 7, 2022
The Abandoned Mine Reclamation Fund:
Issues and Legislation in the 117th 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. On November 15, 2021, the Infrastructure
Investment and Jobs Act (IIJA; P.L. 117-58) reauthorized
the coal reclamation fees through the end of FY2034, at
reduced rates. 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.
Reclamation Eligibility
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.
Unfunded Reclamation Costs
States and tribes report incurred and estimated future
reclamation costs to OSMRE for Abandoned Mine Land
(AML) 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 $11.5 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.
State and Tribal Reclamation Programs
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.
Certification
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.
UMWA Health and Pension Benefit
Plans
In addition to employer contributions, Title IV of SMCRA
authorizes two sources of federal financial assistance for
three United Mine Workers of America (UMWA) plans that
provide health benefits for coal mine worker retirees:
interest transfers from the Abandoned Mine Reclamation
Fund and payments from the General Fund of the U.S.
Treasury, which supplement the interest transfers. None of
SX Informing the legislative debate since 1914
Congressional Research Service
Updated January 7, 2022
The Abandoned Mine Reclamation Fund:
Issues and Legislation in the 117 Congress
Coal mining and production in the United States in the 20"
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. On November 15, 2021, the Infrastructure
Investment and Jobs Act (IIJA; P.L. 117-58) reauthorized
the coal reclamation fees through the end of FY2034, at
reduced rates. 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.
Reclamation Eligibility
Title TV 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.
Unfunded Reclamation Costs
States and tribes report incurred and estimated future
reclamation costs to OSMRE for Abandoned Mine Land
(AML) 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 $11.5 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.
State and Tribal Reclamation Programs
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,
Certification
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, lowa, 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
UMWA Health and Pension Benefit
Plans
In addition to employer contributions, Title IV of SMCRA
authorizes two sources of federal financial assistance for
three United Mine Workers of America (UMWA) plans that
provide health benefits for coal mine worker retirees
interest transfers from the Abandoned Mine Reclamation
Fund and payments from the General Fund of the U.S.
‘Treasury, which supplement the interest transfers. None of
https://ersreports.congress.gov
The Abandoned Mine Reclamation Fund: Issues and Legislation in the 117th Congress
https://crsreports.congress.gov
the coal reclamation fees credited to the Abandoned Mine
Reclamation Fund fund the UMWA plans.
In the 116th Congress, the Bipartisan American Miners Act
(P.L. 116-94; Further Consolidated Appropriations Act,
2020, Division M) amended Section 402 of SMCRA to
expand the eligibility of the UMWA health plans to receive
federal funding and authorizes General Fund payments to
the UMWA pension plan. Under that act, the aggregate
amount of General Fund payments to certified states and
tribes, UMWA health plans, and the UMWA pension plan
are subject to a $750 million cap annually. Annual
payments to certified states and tribes are provided first,
then supplemental payments to UMWA health plans, and
any remaining funds amount up to $750 million annually
are to be transferred to the UMWA pension plan.
The American Miner Benefits Improvement Act of 2020
(Division Y, Consolidated Appropriations Act, 2021, P.L.
116-260) further amended Section 402(h) of SMCRA to
expand the eligibility for federal financial assistance from
the General Fund to coal mineworker retirees whose health
care benefits would be denied or reduced as a result of a
bankruptcy commenced on or after January 1, 2020.
Additionally, Congress amended Section 402(h) to increase
the annual $750 million General Fund spending cap as
necessary to meet any additional financial obligations due
to increased eligibility for these health care benefits.
Receipts and Appropriations
As authorized in Section 402 of SMCRA, the Abandoned
Mine Reclamation Fund is financed by fees collected from
operators of coal mining sites based on the volume or value
of coal produced, whichever is less. Prior to the enactment
of the 2006 amendments to SMCRA (P.L. 109-432,
Division C, Title II), OSMRE distributed grants to both
certified and uncertified states and tribes from the
Abandoned Mine Reclamation Fund subject to annual
appropriations. Annual appropriations were generally lower
than annual coal reclamation fees collected prior to the
2006 amendments, resulting in an accumulation in the
unappropriated balance of the Abandoned Mine
Reclamation Fund. The 2006 amendments to SMCRA
authorized permanent appropriations to OSMRE to
administer grants to eligible states and tribes beginning in
FY2008.
For uncertified states, OSMRE administers state share
grants, historic coal grants (based on coal production prior
to SMCRA’s enactment), and minimum program make up
funds (grants to ensure uncertified states receive at least $3
million each annually) from the Abandoned Mine
Reclamation Fund. Other appropriations from the
Abandoned Mine Reclamation Fund include interest
transfers to UMWA plans and OSMRE program funding.
OSMRE program funding is subject to annual
appropriations.
Infrastructure Investment and Jobs Act
of 2021
Enacted on November 15, 2021, the Infrastructure
Investment and Jobs Act (IIJA; P.L. 117-58) reauthorized
the coal reclamation fee under Section 402 of SMCRA and
provided $11.293 billion in emergency appropriations to the
Abandoned Mine Reclamation Fund. The IIJA extends the
authority to collect the coal fee for 13 years, until the end of
FY2034, and decreases the fee rates from prior law by 20%
for underground and surface mining, and lignite coal.
Whether the reduction in the coal fee rates would decrease
future coal receipts would depend on the quantity or value
of coal produced upon which the fees are based.
The IIJA authorizes a transfer from the General Fund of the
U.S. Treasury to provide $11.293 billion in emergency
appropriation to the Abandoned Mine Reclamation Fund.
This amount is similar in magnitude to the estimates of the
unfunded reclamation costs. None of this funding would be
sourced from coal reclamation fees. The $11.293 billion
would provide grants to eligible uncertified and certified
states and tribes, in equivalent amounts over a 15-year
period, based on relative percent of coal production prior to
1977. The IIJA includes provisions that states and tribes are
required to receive at least $20 million, to the extent that the
amount needed for reclamation projects is not less than $20
million. Provisions in the IIJA limit the use of grants from
the $11.293 billion to uncertified and certified states and
tribes for the reclamation of abandoned coal mining sites
under Section 403(a), Section 403(b), and emergency
projects under Section 410 of SMCRA. In addition to the
priorities in Section 403 of SMCRA, the IIJA authorizes
states and tribes to consider AML projects that may provide
employment to former workers of the coal industry.
The coal reclamation fee collection authorization expires at
the end of FY2034. If the authority to collect reclamation
fees is not reauthorized, SMCRA directs the remaining
balance of the Abandoned Mine Reclamation Fund to be
distributed among states and tribes receiving grants from
the Abandoned Mine Reclamation Fund until the balance is
expended. Congress included provisions in the IIJA that
would require OSMRE to evaluate grant payments to states
and tribes not later than 20 years after enactment. Upon that
evaluation, states and tribes would be required to return any
“unused funds” to the Abandoned Mine Reclamation Fund.
Other Title IV SMCRA Legislation
Other legislation introduced in the 117th Congress also
proposed to reauthorized the coal fee, but at different rates
and different time frames than the provisions enacted in the
IIJA (H.R. 1734, H.R. 2462, S. 1447, S. 1600). Versions of
the RECLAIM Act (H.R. 1733 and S. 1455) would also
authorize $1 billion from the Abandoned Mine Reclamation
Fund for AML reclamation projects that promote economic
and community development. House and Senate versions of
the RECLAIM Act  would authorize $1 billion over five
years from the unappropriated balance of the Abandoned
Mine Reclamation Fund for the reclamation of abandoned
coal mining sites as a means to facilitate economic and
community development in coal production states.
Lance N. Larson, Analyst in Environmental Policy
IF11352
‘The Abandoned Mine Reclamation Fund: Issues and Legislation in the 117th Congress
the coal reclamation fees credited to the Abandoned Mine
Reclamation Fund fund the UMWA plans.
In the 116" Congress, the Bipartisan American Miners Act
(PLL. 116-94; Further Consolidated Appropriations Act,
2020, Division M) amended Section 402 of SMCRA to
expand the eligibility of the UMWA health plans to receive
federal funding and authorizes General Fund payments to
the UMWA pension plan. Under that act, the aggregate
amount of General Fund payments to certified states and
tribes, UMWA health plans, and the UMWA pension plan
are subject to a $750 million cap annually. Annual
payments to certified states and tribes are provided first,
then supplemental payments to UMWA health plans, and
any remaining funds amount up to $750 million annually
are to be transferred to the UMWA pension plan.
‘The American Miner Benefits Improvement Act of 2020
(Division Y, Consolidated Appropriations Act, 2021, P.L.
116-260) further amended Section 402(h) of SMCRA to
expand the eligibility for federal financial assistance from
the General Fund to coal mineworker retirees whose health.
care benefits would be denied or reduced as a result of a
bankruptcy commenced on or after January 1, 2020.
Additionally, Congress amended Section 402(h) to increase
the annual $750 million General Fund spending cap as
necessary to meet any additional financial obligations due
to increased eligibility for these health care be
Receipts and Appropriations
As authorized in Section 402 of SMCRA, the Abandoned
Mine Reclamation Fund is financed by fees collected from
‘operators of coal mining sites based on the volume or value
of coal produced, whichever is less. Prior to the enactment
of the 2006 amendments to SMCRA (P.L. 109-432,
Division C, Title 11), OSMRE distributed grants to both
certified and uncertified states and tribes from the
Abandoned Mine Reclamation Fund subject to annual
appropriations. Annual appropriations were generally lower
than annual coal reclamation fees collected prior to the
2006 amendments, resulting in an accumulation in the
tunappropriated balance of the Abandoned Mine
Reclamation Fund. The 2006 amendments to SMCRA
authorized permanent appropriations to OSMRE to
administer grants to eligible states and tribes beginning in
FY2008.
For uncertified states, OSMRE administers state share
grants, historic coal grants (based on coal production prior
to SMCRA’s enactment), and minimum program make up
funds (grants to ensure uncertified states receive at least $3
million each annually) from the Abandoned Mine
Reclamation Fund. Other appropriations from the
Abandoned Mine Reclamation Fund include interest
transfers to UMWA plans and OSMRE program funding
OSMRE program funding is subject to annual
appropriations.
Infrastructure Investment and Jobs Act
of 2021
Enacted on November 15, 2021, the Infrastructure
Investment and Jobs Act (IIJA; P.L. 117-58) reauthorized
the coal reclamation fee under Section 402 of SMCRA and
provided $1 1.293 billion in emergency appropriations to the
Abandoned Mine Reclamation Fund. The IIJA extends the
authority to collect the coal fee for 13 years, until the end of
FY2034, and decreases the fee rates from prior law by 20%
for underground and surface mining, and lignite coal.
Whether the reduction in the coal fee rates would decrease
future coal receipts would depend on the quantity or value
of coal produced upon which the fees are based.
The IIJA authorizes a transfer from the General Fund of the
USS. Treasury to provide $11.293 billion in emergency
appropriation to the Abandoned Mine Reclamation Fund.
This amount is similar in magnitude to the estimates of the
unfunded reclamation costs. None of this funding would be
sourced from coal reclamation fees. The $11.293 billion
would provide grants to eligible uncertified and certified
states and tribes, in equivalent amounts over a 15-year
period, based on relative percent of coal production prior to
1977. The ILIA includes provisions that states and tribes are
required to receive at least $20 million, to the extent that the
‘amount needed for reclamation projects is not less than $20
million. Provisions in the ILJA limit the use of grants from
the $11.293 billion to uncertified and certified states and
tribes for the reclamation of abandoned coal mining sites
under Section 403(a), Section 403(b), and emergency
projects under Section 410 of SMCRA. In addition to the
priorities in Section 403 of SMCRA, the IIJA authorizes
states and tribes to consider AML projects that may provide
‘employment to former workers of the coal industry.
The coal reclamation fee collection authorization expires at
the end of FY2034. If the authority to collect reclamation
fees is not reauthorized, SMCRA directs the remaining
balance of the Abandoned Mine Reclamation Fund to be
distributed among states and tribes receiving grants from
the Abandoned Mine Reclamation Fund until the balance is
‘expended. Congress included provisions in the IJA that
‘would require OSMRE to evaluate grant payments to states
and tribes not later than 20 years after enactment. Upon that
evaluation, states and tribes would be required to return any
“unused funds” to the Abandoned Mine Reclamation Fund.
Other Title IV SMCRA Legislation
Other legislation introduced in the 117" Congress also
proposed to reauthorized the coal fee, but at different rates
‘and different time frames than the provisions enacted in the
IVA (LR. 1734, H.R. 2462, S. 1447, S. 1600). Versions of
the RECLAIM Act (H.R. 1733 and S. 1455) would also
authorize $1 billion from the Abandoned Mine Reclamation
Fund for AML reclamation projects that promote economic
and community development. House and Senate versions of
the RECLAIM Act would authorize $1 billion over five
‘years from the unappropriated balance of the Abandoned
Mine Reclamation Fund for the reclamation of abandoned
coal mining sites as a means to facilitate economic and
‘community development in coal production states.
Lance N. Larson, Analyst in Environmental Policy
1F11352
https://ersreports.congress.gov
The Abandoned Mine Reclamation Fund: Issues and Legislation in the 117th Congress
https://crsreports.congress.gov | IF11352 · VERSION 3 · UPDATED
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov/
‘The Abandoned Mine Reclamation Fund: Issues and Legislation in the 117th Congress
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
‘been provided by CRS to Members of Congress in connection with CRS’s institutional role, CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material
https://ersreports.congress.gov | IF 11352 - VERSION 3 - UPDATED
	2022-01-07T13:28:18-0500