Coal Cleanup Taxpayer Protection Act of 2026

[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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