Recent SMCRA Title IV Amendments
Posted on Wednesday, 10 January 2007 (09:27:35) CST by admin
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by Bruce Golden, WPCAMR 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 last month. 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.
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 extends 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.
Abandoned Mine Posts is a service of the
Western Pennsylvania Coalition for Abandoned Mine Reclamation
226 Donohoe Rd, Suite 110
Greensburg, PA 15601
phone/fax: (724) 832-3625
www.wpcamr.org
Comment on this article at http://amp.wpcamr.org or suggest future Abandoned Mine Posts topics at [email protected] .
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