H.R. 9029

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9029 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 9029

To amend the Surface Mining Control and Reclamation Act of 1977 to 
protect taxpayers from liability associated with the reclamation of 
surface coal mining operations, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

May 26, 2026

Ms. Lee of Pennsylvania (for herself, Mr. Deluzio, and Mr. Beyer) 
introduced the following bill; which was referred to the Committee on 
Natural Resources

_______________________________________________________________________

A BILL

To amend the Surface Mining Control and Reclamation Act of 1977 to 
protect taxpayers from liability associated with the reclamation of 
surface coal mining operations, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Coal Cleanup Taxpayer Protection Act 
of 2026''.

SEC. 2. SURFACE COAL MINING BONDING.

Section 509 of the Surface Mining Control and Reclamation Act of 
1977 (30 U.S.C. 1259) is amended--
(1) by striking subsection (c) and inserting the following:
``(c) Alternative Bonding System.--
``(1) In general.--Subject to paragraph (2), the Secretary 
may approve as part of a State or Federal program an 
alternative system that will--
``(A) achieve the objectives and purposes of the 
bonding program pursuant to this section; and
``(B) result in no greater risk of financial 
liability to the Federal Government or a State 
government than the bonding program under this section.
``(2) Report required.--The Secretary may only approve an 
alternative bonding system for a State under paragraph (1) if 
such State submits a report to the Secretary that provides the 
following information:
``(A) A history of bond forfeitures and reclamation 
costs in such State in the 7-year period ending on the 
date on which the report is submitted, including--
``(i) in the case of any bond forfeiture, 
whether the money collected to make up the 
difference between the bond and reclamation 
cost was sufficient to complete the reclamation 
as specified in the permit; and
``(ii) an engineer's estimate of the cost 
to complete reclamation of mines for which such 
State has not yet determined the cost of 
reclamation.
``(B) A 5-year forecast proving the proposed bond 
pool will be financially sound based on--
``(i) the proposed annual or per ton fees 
paid by mining operators;
``(ii) the past and anticipated financial 
performance of participating mining operators;
``(iii) market projections for the 5-year 
period beginning on the date of the submission 
of such report;
``(iv) the anticipated number of mining 
operators participating in each year; and
``(v) anticipated reclamation costs, 
including known reclamation costs and an 
engineer's estimate of costs not yet known.''; 
and
(2) by adding at the end the following:
``(f) Self-Bonding.--
``(1) Federal programs.--
``(A) In general.--Effective on the date of 
enactment of this subsection, the Secretary--
``(i) may not accept the bond of the 
applicant itself (referred to in this 
subsection as a `self-bond'); and
``(ii) may accept a separate surety or 
collateral bond, consistent with subsection 
(b).
``(B) Existing self-bonds.--For coal mining 
operations covered by a self-bond accepted by the 
Secretary prior to the date of enactment of this 
subsection, the permittee shall replace the self-bond 
with another form of bond acceptable to the Secretary 
under this section by not later than the earlier of--
``(i) the date of renewal of the permit 
under section 506(d); and
``(ii) the date of any major permit 
modification under section 506.
``(2) State programs.--Not later than 90 days after the 
date of enactment of this subsection, the Secretary shall 
notify all State regulatory authorities that allow applicants 
to self-bond that the approved regulatory programs of the State 
regulatory authority must be amended--
``(A) to remove the authority for applicants to 
self-bond; and
``(B) to require coal mining operations covered by 
a self-bond accepted by the State regulatory authority 
prior to the date of enactment of this subsection to 
replace the self-bond with another form of bond 
acceptable under this section by not later than the 
earlier of--
``(i) the date of renewal of the permit 
under section 506(d); and
``(ii) the date of any major permit 
modification under section 506.
``(g) Bonds Issued by Surety.--
``(1) In general.--Not later than 1 year after the date of 
enactment of this subsection, the Secretary shall issue rules 
establishing limitations on surety bonds accepted under this 
section to minimize the risk of financial liability to the 
Federal Government or a State government, including rules 
regarding--
``(A) the maximum quantity of corporate surety 
bonds issued by any 1 corporate surety as a percentage 
of the total quantity of coal mine reclamation bonds in 
any 1 State;
``(B) the minimum percentage of surety bonds 
unrelated to activities regulated pursuant to this Act 
required to reinsure corporate surety bonds;
``(C) the minimum collateralization required for 
corporate surety bonds; and
``(D) the minimum amount of cash assets required to 
be held by a corporate surety as a percentage of coal 
mine reclamation bonds issued by the corporate surety.
``(2) Existing corporate bonds.--Corporate surety bonds in 
existence on the date of enactment of this subsection must be 
modified or replaced as necessary by not later than 1 year 
after the date on which the rule is issued under paragraph (1).
``(h) Collateral Requirements.--
``(1) Real property.--Real property posted as collateral 
for a bond may not include--
``(A) coal;
``(B) a coal mine;
``(C) land that includes a coal mine;
``(D) land that is located above a coal mine;
``(E) a coal processing facility;
``(F) a coal waste disposal site;
``(G) coal mining equipment unlikely to retain 
salvage or resale value; or
``(H) any other property determined by the 
Secretary.
``(2) Re-evaluation.--
``(A) The Secretary shall re-evaluate the value of 
any nonliquid collateral, as that term is defined in 
subparagraph (B), 3 years after such collateral is 
posted for a bond and every three years thereafter.
``(B) In this paragraph, `nonliquid collateral' has 
the meaning given to it by the Secretary, except that 
such term--
``(i) includes the first lien interests in 
real estate and equipment; and
``(ii) does not include--
``(I) cash;
``(II) letters of credit;
``(III) certificates of deposit;
``(IV) Federal, State, or municipal 
bonds; and
``(V) investment grade securities.
``(i) Executive Compensation.--The Secretary may require the 
inclusion of executive compensation, including salaries and bonuses of 
officers and executives, of an applicant under this section, and any 
affiliated company, as collateral for a bond under this section.''.
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