To amend the Surface Mining Control and Reclamation Act of 1977 to reauthorize and reform the Abandoned Mine Reclamation Program, and for other purposes.

Summary: Abandoned Mine Lands Reclamation Reform Act of 2004 - Amends the Surface Mining Control and Reclamation Act of 1977 to repeal the authorization that certain moneys in the Abandoned Mine Reclamation Fund may be used: (1) by the Secretary of Agriculture for reclamation of rural lands; and (2) by the Department of the Interior for studies by contract with organizations for advice and research and development projects technical assistance.

Reduces the reclamation fee required to be paid by operators of coal mining operations.

Revises Fund allocation requirements with respect to reclamation fees.

Repeals Fund objectives concerning: (1) protection , construction, or enhancement of public facilities such as utilities, roads, recreation and conservation facilities adversely affected by coal mining practices; and (2) the development of publicly owned land adversely affected by coal mining practices including land acquired as provided in this subchapter for recreation and historic purposes, conservation, and reclamation purposes and open space benefits.

States that no lien shall be filed against any person who neither consented to, nor participated in nor exercised control over the mining operation which necessitated reclamation. Repeals the limitation of such prohibition to persons who owned the surface before May 2, 1977.

Expands certification guidelines to prescribe payments to: (1) qualified States and Indian tribes; and (2) non-qualified States and Indian tribes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Abandoned Mine Lands Reclamation 
Reform Act of 2004''.

SEC. 2. AMENDMENTS TO SURFACE MINING ACT.

    (a) Amendments to Section 401.--(1) Section 401 of the Surface 
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1231) is amended 
as follows:
            (A) In subsection (c) by striking paragraphs (2) and (6) 
        and redesignating paragraphs (3) through (13) in order as 
        paragraphs (2) through (11).
            (B) In subsection (e)--
                    (i) in the second sentence, by striking ``the needs 
                of such fund'' and inserting ``achieving the purposes 
                of the transfers under section 402(h)''; and
                    (ii) in the third sentence, by inserting before the 
                period the following: ``for the purpose of the 
                transfers under section 402(h).''.
    (2) Section 712(b) of the Surface Mining Control and Reclamation 
Act of 1977 (30 U.S.C. 1302(b)) is amended by striking ``section 
401(c)(11)'' and inserting ``section 401(c)(9)''.
    (b) Amendments to Section 402.--Section 402 of the Surface Mining 
Control and Reclamation Act of 1977 (30 U.S.C. 1232) is amended as 
follows:
            (1) In subsection (a)--
                    (A) by striking ``35'' and inserting ``28'';
                    (B) by striking ``15'' and inserting ``12''; and
                    (C) by striking ``10 cents'' and inserting ``8 
                cents''.
            (2) In subsection (b) by striking ``2004'' and all that 
        follows through the end of the sentence and inserting 
        ``2019.''.
            (3) In subsection (g)(1)(D) by striking ``in any area under 
        paragraph (2), (3), (4), or (5)'' and inserting ``under 
        paragraph (5)''.
            (4) Subsection (g)(2) is amended to read as follows:
            ``(2) In making the grants referred to in paragraph (1)(C) 
        and the grants referred to in paragraph (5), the Secretary 
        shall ensure strict compliance by the States and Indian tribes 
        with the priorities set forth in section 403(a) until a 
        certification is made under section 411(a).''.
            (5) In subsection (g)(3)--
                    (A) in the matter preceding subparagraph (A) by 
                striking ``paragraphs (2) and'' and inserting 
                ``paragraph'';
                    (B) in subparagraph (A) by striking ``401(c)(11)'' 
                and inserting ``401(c)(9)''; and
                    (C) by adding at the end the following:
            ``(E) For the purpose of paragraph (8).''.
            (6) In subsection (g)(5)--
                    (A) by inserting ``(A)'' before the first sentence;
                    (B) in the first sentence by striking ``40'' and 
                inserting ``60'';
                    (C) in the last sentence by striking ``Funds 
                allocated or expended by the Secretary under paragraphs 
                (2), (3), or (4),'' and inserting ``Funds made 
                available under paragraph (3) or (4)''; and
                    (D) by adding at the end the following:
    ``(B) Any amount that is reallocated and available under section 
411(h)(3) shall be in addition to amounts that are allocated under 
subparagraph (A).''.
            (7) Subsection (g)(6) is amended to read as follows:
    ``(6)(A) Any State with an approved abandoned mine reclamation 
program pursuant to section 405 may receive and retain, without regard 
to the 3-year limitation referred to in paragraph (1)(D), up to 10 
percent of the total of the grants made annually to such State under 
paragraphs (1) and (5) if such amounts are deposited into an acid mine 
drainage abatement and treatment fund established under State law, from 
which amounts (together with all interest earned on such amounts) are 
expended by the State for the abatement of the causes and the treatment 
of the effects of acid mine drainage in a comprehensive manner within 
qualified hydrologic units affected by coal mining practices.
    ``(B) For the purposes of this paragraph, the term `qualified 
hydrologic unit' means a hydrologic unit--
            ``(i) in which the water quality has been significantly 
        affected by acid mine drainage from coal mining practices in a 
        manner that adversely impacts biological resources; and
            ``(ii) that contains lands and waters that are--
                    ``(I) eligible pursuant to section 404 and include 
                any of the priorities set forth in section 403(a); and
                    ``(II) the subject of expenditures by the State 
                from the forfeiture of bonds required under section 509 
                or from other States sources to abate and treat acid 
                mine drainage.''.
            (8) Subsection (g)(7) is amended to read as follows:
    ``(7) In complying with the priorities set forth in section 403(a), 
any State or Indian tribe may use amounts available in grants made 
annually to such State or tribe under paragraphs (1) and (5) for the 
reclamation of eligible lands and waters set forth in section 403(a)(3) 
prior to the completion of reclamation projects under paragraphs (1) 
and (2) of section 403(a) only if the expenditure of funds for such 
reclamation is done in conjunction with the expenditure of funds for 
reclamation projects under paragraphs (1) and (2) of section 403(a).''.
            (9) Subsection (g)(8) is amended to read as follows:
    ``(8) In making the grants referred to in paragraph (1)(C), the 
Secretary, using amounts allocated to a State or Indian tribe under 
subparagraphs (A) or (B) of paragraph (1) or as necessary amounts 
available to the Secretary under paragraph (3), shall assure total 
grant awards of not less than $2,000,000 annually to each State and 
each Indian tribe. Notwithstanding any other provision of law, this 
paragraph applies to the State of Tennessee.''.
            (10) Subsection (h) is amended--
                    (A) in paragraph (2) by striking ``sum of--'' and 
                all that follows through ``$70,000,000.'' and inserting 
                ``sum of the amount of interest that the Secretary 
                estimates will be earned and paid to the Combined Fund 
                during the fiscal year. The amount transferred shall be 
                used, notwithstanding any other provision of law, to 
                pay the amount of any deficit in net assets in the 
                Combined Fund.''; and
                    (B) by striking paragraphs (3) and (4).
    (c) Amendments to Section 403.--Section 403 of the Surface Mining 
Control and Reclamation Act of 1977 (30 U.S.C. 1233(a)) is amended as 
follows:
            (1) In subsection (a)--
                    (A) in paragraph (1) by striking ``general 
                welfare,'';
                    (B) in paragraph (2) by striking ``health, safety, 
                and general welfare'' and inserting ``health and 
                safety'', and inserting ``and'' after the semicolon at 
                the end;
                    (C) in paragraph (3) by striking the semicolon at 
                the end and inserting a period; and
                    (D) by striking paragraphs (4) and (5).
            (2) In subsection (b)--
                    (A) by striking the heading and inserting ``Water 
                Supply Restoration.--''; and
                    (B) in paragraph (1) by striking ``up to 30 percent 
                of the''.
            (3) In subsection (c) by inserting ``, subject to the 
        approval of the Secretary,'' after ``amendments''.
    (d) Amendment to Section 406.--Section 406(h) of the Surface Mining 
Control and Reclamation Act of 1977 (30 U.S.C. 1236(h)) is amended by 
striking ``Soil Conservation Service'' and inserting ``Natural 
Resources Conservation Service''.
    (e) Further Amendment to Section 406.--Section 406 of the Surface 
Mining Control and Reclamation Act of 1977 (30 U.S.C. 1236) is amended 
by adding at the end the following:
    ``(i) There is authorized to be appropriated to the Secretary of 
Agriculture, from amounts in the Treasury other than amounts in the 
fund, such sums as may be necessary to carry out this section.''.
    (f) Amendment to Section 408.--Section 408(a) of the Surface Mining 
Control and Reclamation Act of 1977 (30 U.S.C. 1238) is amended by 
striking ``who owned the surface prior to May 2, 1977, and''.
    (g) Amendments to Section 411.--Section 411 of the Surface Mining 
Control and Reclamation Act of 1977 (30 U.S.C. 1240a) is amended as 
follows:
            (1) In subsection (a) by inserting ``(1)'' before the first 
        sentence, and by adding at the end the following:
    ``(2) The Secretary may, on the Secretary's own volition, make the 
certification referred to in paragraph (1) on behalf of any State or 
Indian tribe referred to in paragraph (1) if on the basis of the 
inventory referred to in section 403(c) all reclamation projects 
relating to the priorities set forth in section 403(a) for eligible 
lands and water pursuant to section 404 in such State or tribe have 
been completed. The Secretary shall only make such certification after 
notice in the Federal Register and opportunity for public comment.''.
            (2) By adding at the end the following:
    ``(h) State Share for Certain Certified States.--(1)(A) From moneys 
referred to in subsection (a) of section 35 of the Mineral Leasing Act 
(30 U.S.C. 191(a)) that are paid into the Treasury after the date of 
the enactment of this subsection and that are not paid to States under 
section 35 of the Mineral Leasing Act or reserved as part of the 
reclamation fund under such section, the Secretary shall pay to each 
qualified State, on a proportional basis, an amount equal to the sum of 
the aggregate unappropriated amount allocated to such qualified State 
under section 402(g)(1)(A).
    ``(B) In this paragraph the term `qualified State' means a State 
for which a certification is made under subsection (a) and in which 
there are public domain lands available for leasing under the Mineral 
Leasing Act (30 U.S.C. 181 et seq.)
    ``(2) Payments to States under this subsection shall be made, 
without regard to any limitation in section 401(d), in the same manner 
as if paid under section 35 of the Mineral Leasing Act (30 U.S.C. 191) 
and concurrently with payments to States under that section.
    ``(3) The amount allocated to any State under section 402(g)(1)(A) 
that is paid to such State as a result of a payment under paragraph (1) 
of this subsection shall be reallocated and available for grants under 
section 402(g)(5).''.
    (h) Extension of Limitation on Application of Prohibition on 
Issuance of Permit.--Section 510(e) of the Surface Mining Control and 
Reclamation Act of 1977 (30 U.S.C. 1260(e)) is amended by striking 
``2004'' and inserting ``2019''.

SEC. 3. PROVISIONS RELATING TO THE IMPLEMENTATION OF THIS TITLE.

    (a) Transition Rules.--(1) Amounts allocated under section 
402(g)(2) of the Surface Mining Control and Reclamation Act of 1977 (30 
U.S.C. 1232(g)(2)) (excluding interest) prior to the date of enactment 
of this Act for the program set forth under section 406 of that Act (30 
U.S.C. 1236), but not appropriated prior to such date, shall be 
available in fiscal year 2004 and thereafter for the transfers referred 
to in section 402(h) of such Act (30 U.S.C. 1232(h)), as amended by 
this Act, in the same manner as are other amounts available for such 
transfers.
    (2) Notwithstanding any other provision of law, interest credited 
to the fund established by section 401 of the Surface Mining Control 
and Reclamation Act of 1977 (30 U.S.C. 1231) that is not transferred to 
the Combined Benefit Fund referred to in section 402(h) of such Act (30 
U.S.C. 1232(h)), as amended by this Act, prior to the date of enactment 
of this Act shall be available in fiscal year 2004 and thereafter for 
the transfers referred to in section 402(h) of such Act (30 U.S.C. 
1232(h)), as amended by this Act, in the same manner as are other 
amounts available for such transfers.
    (b) Inventory.--Within one year after the date of enactment of this 
Act, the Secretary of the Interior shall complete a review of all 
additions made, pursuant to amendments offered by States and Indian 
tribes after December 31, 1998, to the inventory referred to in section 
403(c) of the Surface Mining Control and Reclamation Act of 1977 (30 
U.S.C. 1233(c)) to ensure that such additions reflect eligible lands 
and waters pursuant to section 404 of such Act (30 U.S.C. 1234) that 
meet the priorities set forth in paragraphs (1) and (2) of section 
403(a) of such Act (30 U.S.C. 1233(a)(1) and (2)), and are correctly 
identified pursuant to such priorities. Any lands or waters that were 
included in the inventory pursuant to the general welfare standard set 
forth in section 403(a) of such Act (30 U.S.C. 1233(a)) before the date 
of enactment of this Act that are determined in the review to no longer 
meet the criteria set forth in paragraphs (1) and (2) of section 403(a) 
of such Act, as amended by this Act, shall be removed from the 
inventory.