Recent SMCRA Title IV Amendments
by Bruce Golden, Regional Coordinator
New federal legislation, which will provide much-needed funding for abandoned mine reclamation (AMR), came as good news for Pennsylvania and other historic coal-producing states. The legislation is actually a revamp of the existing Surface Mining Control and Reclamation Act of 1977 (SMCRA). The section of SMCRA that pertains to AMR is often referred to as “Title IV.” December’s amendments to Title IV were part of a much larger bill, the Tax Relief and Health Care Act of 2006, one of the very last acts passed by the outgoing 109th Congress.
Next week, Abandoned Mine Posts will discuss how this law affects Pennsylvania. Today, we present a synopsis of the revised Title IV legislation with respect to abandoned mine reclamation.
Reclamation Fees & State Funding
- Extend but decrease reclamation fees from coal mining
- The authority to collect a reclamation fee on each ton of coal mined in the United States was extended another 14 years, but with a two-tiered decrease over the next six years to 80% of the current levels (35¢ → 28¢ per ton of surface-mined coal; 15¢ → 12¢ per ton of deep mined coal). After 14 years (2021), collection of reclamation fees ends, and funding to states will extend to 2022. The 20% reduction and 14-year limit of fees were compromises in getting the law passed.
- Mandate full funding from reclamation fees to states
- The full amount of money collected from reclamation fees (minus the portion allocated to OSM) will now go to the states, rather than be appropriated by Congress. In past years, Congress was stingy with their appropriations, resulting in an unspent balance of $1.8 billion in the Abandoned Mine Reclamation Fund. This change was almost a miraculous accomplishment!
- Distribute funds according to reclamation need
- The formula that determines how much funding goes to each of the various states has changed to generally direct future fees to states based on reclamation need.
- Funding ramp-up period
- States will receive partial amounts of the reclamation funding due to them during the next five years, allowing them time gear up to the higher grant levels. The money initially withheld will be paid in later years.
- Payout to certified states
- “Certified states”—those that have completed all Priority 1 & 2 projects—will receive the funds they’ve accumulated in the Abandoned Mine Reclamation Fund over the next ten years, but they will not receive any reclamation funds collected in the future. Wyoming is the prime example of a certified state. This was a compromise to help pass the law.
Water Quality
- Allow 30% set-aside for acid mine drainage
- The maximum percentage of a state’s annual grant that can be used to address acid mine drainage has increased from 10% to 30%. As before, a state choose a lesser percentage at its discretion.
- Strike the “general welfare” provision from Priority 2
- Funding is and has been generally reserved for Priority 1 & 2 projects (dealing with health & safety issues). Striking the “general welfare” provision from Priority 2 projects blocks the ability to fund most water-related projects using Priority 2 criteria. Acid mine drainage (AMD) is usually designated as Priority 3, which now can only be funded by the above set-aside program.
Other Provisions
- Allow remining incentives
- Federal incentives may be given to industry for remining abandoned mine sites that would not likely be reclaimed by industry without them.
- Eliminate RAMP
- The law formally eliminated the Rural Abandoned Mine Program (RAMP). Once an important reclamation program, RAMP has not received any appropriations in the past six years and was effectively defunct anyway.
- Health insurance for retired coal miners
- The law funds health insurance benefits for coal miners (and their families) whose companies have gone bankrupt and are no longer able to provide the benefits.
February 4th, 2009 at 12:27 pm
Very useful post. where can i find more articles about this issue?