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[House Report 106-1014]
[From the U.S. Government Publishing Office]

                                                                       
106th Congress                                           Rept. 106-1014
                        HOUSE OF REPRESENTATIVES
 2d Session                                                      Part 1

======================================================================

 
   COAL ACCOUNTABILITY AND RETIRED EMPLOYEE ACT FOR THE 21ST CENTURY

                                _______
                                

                October 27, 2000.--Ordered to be printed

                                _______
                                

  Mr. Young of Alaska, from the Committee on Resources, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4144]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Resources, to whom was referred the bill 
(H.R. 4144) to provide for the allocation of interest accruing 
to the Abandoned Mine Reclamation Fund, and for other purposes, 
having considered the same, report favorably thereon with an 
amendment and recommend that the bill as amended do pass.
    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Coal Accountability and Retired 
Employee Act for the 21st Century''.

SEC. 2. TREATMENT OF CERTAIN FUNDS FOR MINER BENEFITS.

  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) for fiscal years 1992 through 
1995 that is not transferred to the combined benefit fund referred to 
in section 402(h)(2) of such Act (30 U.S.C. 1232(h)(2)) prior to the 
date of enactment of this Act shall be transferred to such combined 
benefit fund within 30 days after the date of enactment of this Act to 
pay the amount of any shortfall in any premium account for any plan 
year under the combined benefit fund. The entire amount transferred by 
this section is designated by the Congress as an emergency requirement 
pursuant to section 252(e) of the Balanced Budget and Emergency Deficit 
Control Act of 1985 (2 U.S.C. 902(e)).

                          PURPOSE OF THE BILL

    The purpose of H.R. 4144 is to provide for the allocation 
of interest accruing to the Abandoned Mine Reclamation Fund, 
and for other purposes.

                  BACKGROUND AND NEED FOR LEGISLATION

    H.R. 4144 would require the Office of Surface Mining (OSM) 
to transfer any remaining interest credited to the Abandoned 
Mine Land Reclamation Fund (AML) from fiscal years 1992 through 
1995 to the United Mine Workers of America Combined Benefit 
Fund (CBF).
    The Surface Mining Control and Reclamation Act of 1977 
(SMCRA, Public Law 95-87, codified at 30 U.S.C. 1201 et seq.) 
regulates surface coal mining operations by States and Indian 
tribes which host mineable coal deposits. Coal mines often went 
unreclaimed after the exhaustion of the coal resources until 
the federal government stepped in to create a level, highly 
regulated playing field through Title V of SMCRA to regulate 
the surface impacts of all active coal mines in the United 
States.
    Title IV of SMCRA provides for the restoration of pre-1977 
abandoned coal mines for instances where no former operator was 
obligated under State law to reclaim those sites. Title IV 
established the AML in the U.S. Treasury supported by a fee 
collected by OSM of 35 cents per ton of surface mined coal, 15 
cents per ton of underground mined coal, and 10 cents per ton 
of lignite. The AML fee is levied on all coal mined anywhere 
within the United States and was originally slated to expire in 
1992. Congress has acted twice to extend the fee collection 
authority. Section 6002 of Public Law 101-508 extended the fee 
to 1995; this law also established the AML as an interest-
bearing account. Section 19143 of Public Law 102-486 extended 
the fee to September 30, 2004, and mandated that a portion of 
the interest in the AML be transferred to the CBF. Public Law 
102-486 also required the AML fee to be extended beyond 2004 in 
the amount necessary to fulfill the interest- transfer 
obligation to the CBF.
    This interest transfer device relates back to the Coal Act 
of 1992, which established the CBF by merging earlier retiree 
benefit programs negotiated between the Bituminous Coal 
Operators Association and the United Mine Workers of America 
beginning in 1950 when President Harry Truman ordered the end 
of a United Mine Worker nationwide strike. These were later 
followed by other wage and benefit agreements, the latest in 
1988. The Coal Act created a ``reach back'' tax levied on 
former companies and individuals (no longer in the mining 
business) who signed those labor agreements to pay the 
escalating costs of retiree health benefits of their former 
workers.
    However, an ``unassigned beneficiaries'' class of mining 
retirees exists where no entity exists to cover the premiums on 
their retirement and health benefits. To protect the solvency 
of the CBF, Congress opted to allow the transfer to the CBF of 
not more than $70 million annually of interest from 
unappropriated balance of the AML trust fund for the unassigned 
class only. This transfer, which is not subject to 
appropriation, is made after an annual audit calculates the 
necessary amount. The transfer has never reached the maximum 
allowed and was approximately $42 million in 1999. However, 
because of solvency concerns generated by several court 
decisions which limited the class of ``reachback'' entities and 
the size of the premiums owed by the remaining companies, 
transfer of additional AML interest is necessary to cover these 
benefits.

                            COMMITTEE ACTION

    Congressman Nick J. Rahall II (D-WV) introduced H.R. 4144 
on March 30, 2000. The bill was referred to the Committee on 
Resources and within the Committee to the Subcommittee on 
Energy and Mineral Resources. The Subcommittee was discharged 
from consideration of the bill on April 11, 2000. On May 17, 
2000, the Subcommittee held a hearing on assessing future needs 
and uses of the Abandoned Mine Reclamation Fund established 
under Title IV of the Surface Mining Control and Reclamation 
Act of 1977. On July 26, 2000, the Full Resources Committee met 
to consider the bill. The bill was ordered favorably reported 
with an amendment in the nature of a substitute offered by 
Congresswoman Barbara Cubin (R-WY) by unanimous consent. The 
Cubin amendment in the nature of a substitute, as does the 
original bill, allows the transfer of AML interest to the CBF 
without the limitation in current law that such funds be used 
only to cover the premium costs of unassigned beneficiaries. 
The Cubin amendment, however, limits such transfer to the 
amount available from the AML interest accrued during the 
period fiscal years 1992 through 1995 (approximately $96.2 
million). Interest accruing to the AML in subsequent years will 
remain limited to transfer only for the unassigned 
beneficiaries' premium costs and remain capped at $70 million 
annually.

            COMMITTEE OVERSIGHT FINDINGS AND RECOMMENDATIONS

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Resources' oversight findings and recommendations 
are reflected in the body of this report.

                   CONSTITUTIONAL AUTHORITY STATEMENT

    Article I, section 8 of the Constitution of the United 
States grants Congress the authority to enact this bill.

                    COMPLIANCE WITH HOUSE RULE XIII

    1. Cost of Legislation. Clause 3(d)(2) of rule XIII of the 
Rules of the House of Representatives requires an estimate and 
a comparison by the Committee of the costs which would be 
incurred in carrying out this bill. However, clause 3(d)(3)(B) 
of that rule provides that this requirement does not apply when 
the Committee has included in its report a timely submitted 
cost estimate of the bill prepared by the Director of the 
Congressional Budget Office under section 402 of the 
Congressional Budget Act of 1974.
    2. Congressional Budget Act. As required by clause 3(c)(2) 
of rule XIII of the Rules of the House of Representatives and 
section 308(a) of the Congressional Budget Act of 1974, this 
bill does not contain any new budget authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures. According to the Congressional Budget Office, 
enactment of this bill would result in a net increase in direct 
spending in 2001 and 2002.
    3. Government Reform Oversight Findings. Under clause 
3(c)(4) of rule XIII of the Rules of the House of 
Representatives, the Committee has received no report of 
oversight findings and recommendations from the Committee on 
Government Reform on this bill.
    4. Congressional Budget Office Cost Estimate. Under clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 403 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for this bill from the Director of the Congressional Budget 
Office:

H.R. 4144--Coal Accountability and Retired Employee Act for the 21st 
        Century

    Summary: H.R. 4144 would require the Office of Surface 
Mining to transfer any remaining interest credited to the 
Abandoned Mine Land Reclamation Fund (AML) from fiscal years 
1992 through 1995 to the United Mine Workers of America 
Combined Benefit Fund (CBF). The Congress would designate the 
amount of the transfer as an emergency requirement pursuant to 
section 252(e) of the Balanced Budget and Emergency Deficit 
Control Act.
    CBO estimates the transfer would increase direct spending 
by $35 million in 2001 and $62 million in 2002. Because the 
transfer would be designated as an emergency requirement, that 
spending would not be subject to pay-as-you-go procedures.
    In addition, the legislation would decrease federal 
Medicaid spending by $1 million in 2001 and $2 million in 2002. 
Because federal Medicaid spending is mandatory, pay-as-you-go 
procedures would apply.
    H.R. 4144 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would result in Medicaid savings for state governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 4144 is shown in the following table. 
The costs of this legislation fall within budget function 550 
(health).

------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2001    2002    2003    2004    2005
------------------------------------------------------------------------
                       CHANGES IN DIRECT SPENDING

Interest Transfer from the AML
 Fund:
    Estimated Budget Authority..      97       0       0       0       0
    Estimated Outlays...........      35      62       0       0       0
Federal Share of Medicaid:
    Estimated Budget Authority..      -1      -2       0       0       0
    Estimated Outlays...........      -1      -2       0       0       0
Net Effect on Federal Spending:
    Estimated Budget Authority..      96      -2       0       0       0
    Estimated Outlays...........      34      60       0       0       0
------------------------------------------------------------------------

    Basis of estimate: H.R. 4144 would provide for the balance 
of the AML Fund from 1992 through 1995 to be transferred to the 
CBF within 30 days after the bill is enacted. According to the 
Office of Surface Mining, $97 million of the interest earned 
during that period remains in the fund. Therefore, CBO 
estimates that $97 million would be transferred to the CBF in 
2001 as a result of that provision.
    The money transferred would be used to cover the benefits 
of retired coal miners that would not otherwise be covered 
because premium collections were insufficient. CBO estimates 
that $35 million of the transfer would be used to pay for 
benefits in 2001 and $62 million would be spent in 2002.
    In the event of a deficit, the trustees of the CBF would 
first try to balance the fund through reducing spending on 
items and services other than health benefits. But if the 
deficit were large enough, they would have to cut benefits. For 
retired coal miners who are also enrolled in Medicaid, a 
portion of those benefits would be shifted to the Medicaid 
program. Under H.R. 4144, the $97-million transfer to the CBF 
would reduce the amount of benefits that would otherwise be 
shifted to Medicaid. That change would decrease federal 
Medicaid spending by $1 million in 2001 and $2 million in 2002.
    Pay-as-you-go considerations: The Balanced Budget and 
Emergency Deficit Control Act sets up pay-as-you-go procedures 
for legislation affecting direct spending or receipts. The net 
changes in outlays that are subject to pay-as-you-go procedures 
are shown in the following table. Because H.R. 4144 would 
exempt the transfer from the AML Fund from these provisions, it 
is not included. The table below only shows the bill's effect 
on the federal Medicaid spending. For the purposes of enforcing 
pay-as-you-go procedures, only the effects in the current year, 
the budget year, and the succeeding four years are counted.

----------------------------------------------------------------------------------------------------------------
                                                       By fiscal year, in millions of dollars--
                                    ----------------------------------------------------------------------------
                                      2000   2001   2002   2003   2004   2005   2006   2007   2008   2009   2010
----------------------------------------------------------------------------------------------------------------
Changes in outlays.................      0     -1     -2      0      0      0      0      0      0      0      0
Changes in receipts................                                 Not applicable
----------------------------------------------------------------------------------------------------------------

    Estimated impact on state, local, and tribal governments: 
H.R. 4144 contains no intergovernmental mandates as defined in 
UMRA. Because additional resources in the Combined Benefit Fund 
would provide health benefits to eligible retired coal miners, 
estimated Medicaid spending would decrease. Consequently, CBO 
estimates that states would save over $500,000 in 2001 and over 
$1.1 million in 2002 in the Medicaid program.
    Estimated impact on the private sector: This bill contains 
no new private-sector mandates as defined in UMRA.
    Estimate prepared by: Federal Costs: AML and CBF Funds: 
Cyndi Dudzinski Smith; Medicaid: Eric Rollins. Impact on State, 
Local, and Tribal Governments: Leo Lex. Impact on the Private 
Sector: Lauren Marks.
    Estimated approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                    COMPLIANCE WITH PUBLIC LAW 104-4

    This bill contains no unfunded mandates.

                PREEMPTION OF STATE, LOCAL OR TRIBAL LAW

    This bill is not intended to preempt any State, local or 
tribal law.

                        CHANGES IN EXISTING LAW

    If enacted, this bill would make no changes in existing 
law.

                                
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