Abandoned Mine Posts

The Western Pennsylvania Coalition for Abandoned Mine Reclamation has created an interactive, visual tool to help comprehend how federal Title IV funding might be applied toward Pennsylvania’s abandoned mine problems. This new funding, the result of a 2006 revamp of the Surface Mining Control and Reclamation Act (SMCRA), will bring an estimated $1.4 billion over the next 15+ years.

WPCAMR’s Title IV Calculator lets its user easily gain an appreciation of how the Title IV funding model works through playing “what if” by clicking buttons to change estimated values of Pennsylvania’s P1 & P2 inventory, AMD inventory, AMD Set-Aside, DEP overhead, and total Title IV funding.

The Title IV Calculator displays these interactions visually with pie charts and a table of values representing AMD left undone, clean water, restored P1s & P2s, and the remaining P1s & P2s left undone.

Check out the Title IV Calculator at www.wpcamr.org

“Ideas sought for use of mining funds” from the Indiana Gazette

Bruce Golden, WPCAMR Regional Coordinator, urged Indiana County residents and conservation district staff members to voice their opinions on how additional abandoned mine reclamation money becoming available should be used to mitigate mine pollution in the county and in Pennsylvania.

by Bruce Golden, Regional Coordinator

New federal legislation will provide much-needed funding for abandoned mine reclamation (AMR) in Pennsylvania and other historic coal-mining states. Last week, Abandoned Mine Posts summarized the key points of the Title IV revisions, which pertain to abandoned mine reclamation. Today, we look at what the law means for reclamation of Pennsylvania’s mine-scarred lands and polluted waters.

The Commonwealth of Pennsylvania will receive a very substantial increase in the annual grant it receives through Title IV for abandoned mine reclamation. The following chart projects Pennsylvania’s estimated annual funding, which will result in a cumulative total of nearly $1.4 billion over the life of the legislation.

From the current funding level of $21.4 million—before the new law kicks in—the annual grant will rise steadily but modestly in the first few years, allowing Pennsylvania time to gear up for the higher grant levels. In the outgoing years, annual grants over $120 million are expected.

It is not yet known how much of these monies can go to on-the-ground projects, or what the mix of projects will be. Some of the funding will also pay administrative overhead, mostly through DEP’s Bureau of Abandoned Mine Reclamation. Thus far, DEP has not developed a policy regarding the law’s provision that allows 30% of the funding to be set-aside for acid mine drainage remediation. However, the total amount of funding Pennsylvania receives is essentially fixed, so if an emphasis is placed on Priority 1 & 2 (health & safety) projects, the amounts available for acid mine drainage would suffer, and vice-versa.

DEP Secretary Katie McGinty announced that a number of roundtable forums will be scheduled around the state to gain input from various stakeholders, including the public, about how to best manage this funding over the next 15 years.

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.