Guidance for Project Eligibility Under the FY18 AML Pilot Page 1 of 8

GUIDANCE FOR PROJECT ELIGIBILITY UNDER THE ABANDONED MINE LAND RECLAMATION 

ECONOMIC DEVELOPMENT PILOT PROGRAM FOR FISCAL YEAR 2018

I. OVERVIEW

Pursuant to the Consolidated Appropriations Act, 2018 (Public Law 115-141), the Department of the 

Interior’s (DOI) Office of Surface Mining Reclamation and Enforcement (OSMRE) has made funding 

available for projects in the Abandoned Mine Land Reclamation Economic Development Pilot Program 

(AML Pilot) for Fiscal Year (FY) 2018. This Pilot Program will provide grants to the six Appalachian 

States with the highest amount of unfunded Priority 1 and Priority 2 Abandoned Mine Land (AML) 

problems based on OSMRE’s AML inventory data as of September 30, 2017. Accordingly, the 

following States will each receive $25 million - Kentucky, Pennsylvania, and West Virginia; while 

Alabama, Ohio, and Virginia will each receive $10 million in order to accelerate the remediation of AML 

sites with economic and community development end uses. In addition, the three Tribes with an 

approved AML reclamation program will each receive an equal portion of $10 million (Hopi Tribe - $3.33 

million, Crow Tribe - $3.33 million, and Navajo Nation - $3.33 million). The Pilot Program is intended to 

explore and implement strategies to return legacy coal sites to productive uses.

State/Tribal AML Programs, in consultation with State/Tribal, local economic, and community 

development authorities, must develop eligible projects that demonstrate a nexus with AML land and 

water reclamation, and economic and community development. This AML Pilot is an opportunity for 

local communities and States/Tribes to return impacted areas to productive reuse, which should be 

defined by the States/Tribes in cooperation with local communities, to achieve the economic and 

community development goals identified for the community and/or region.

The purpose of this guidance document is to provide State/Tribal AML Programs with general criteria 

by which potential projects will be evaluated for eligibility and successful selection. This guidance is 

intended to ensure that projects meet the economic and community development nexus criteria, as the 

current AML program does not require such criteria. As such, the AML Pilot Program offers a nontraditional approach to the reclamation of impacted mine lands. A uniform approach is not expected in 

every State/Tribe; however, this guidance is intended to assist States/Tribes in their selection of 

projects.

State/Tribal AML Programs are encouraged to collaborate with their respective State/Tribal and local 

economic development authorities and local communities to identify potential projects and apply funds 

from the AML Pilot to projects that will offer the greatest benefits for communities. The AML Pilot offers 

States, Tribes, and local communities flexibility in deciding which projects offer the greatest 

opportunities within their communities.

II. ELIGIBLE PROJECTS

Sites eligible under the AML Pilot:

 Unreclaimed Priority 1, Priority 2, or Priority 3 sites (i.e., AML lands and polluted waters) listed in eAMLIS.

 Previously reclaimed AML lands and polluted waters.

 Land adjacent to unreclaimed or previously reclaimed AML lands and polluted waters as justified by 

the State, Tribe, and/or the communities impacted by historic coal production.
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Please note: Currently permitted Title V mine sites are not eligible to receive AML Pilot funds.

Formerly permitted mine sites reclaimed after August 3, 1977 that are adjacent to, or connected with,

an eligible AML Pilot project may be included in AML Pilot funding.

III. ECONOMIC AND COMMUNITY DEVELOPMENT NEXUS

The economic and community development nexus can be demonstrated by States/Tribes in different 

ways depending on whether the proposed project is intended to: (1) incorporate economic and 

community development related activities as part of the project itself (Category A projects), or (2) 

involve primary reclamation activities only in order to create the conditions for future economic and 

community development that occurs post-reclamation (Category B projects).

When selecting projects, States/Tribes are encouraged to consider the following:

“Category A” Projects (Reclamation with Development):

This is a project intended to include economic and community development related activities as part 

of the project itself, as well as reclamation activities, likely to result in positive economic and 

community development outcomes that can be measured.

In order to provide accountability, State/Tribal AML Programs will need to demonstrate that 

favorable conditions are created by the reclamation of the site. However, the Consolidated 

Appropriations Act did not specify criteria or metrics by which projects are evaluated since projectrelated outcomes will vary based on the project type. State/Tribal AML Programs should, to the 

extent possible, differentiate between post-project measures of future economic development in the 

medium to long term, and more short-term measures associated with economic development 

activities (e.g., infrastructure construction) that are included in the project itself. OSMRE recognizes 

that the metrics for productive reuse will vary based on the type of project selected. However, State 

and Tribal AML Programs will be required to report economic benefits and performance measures 

associated with awarded projects (see Section X). The following provides examples of measures a 

State/Tribe may wish to report:

o Jobs created (beyond those jobs necessary to conduct reclamation);

o Businesses created, or served, or improved;

o Infrastructure created (impact could be measured by the linear feet, acreage, square feet, or 

other unit of measure for the expected amount of water, sewer, utility, or other form of 

infrastructure installed, constructed or repaired);

o Increased, enhanced, or restored infrastructure system capacity;

o Communities served or improved;

o Households served or improved;

o New or existing workers or students served or improved; and

o Number of visitors (overnight and daytime).

“Category B” Projects (Reclamation for Potential Development):

This is a project reasonably likely to create favorable conditions for the economic development of 

the project site or promote the general welfare through economic and community development of 

the area in which the project is conducted.

Such “favorable conditions” may be demonstrated by any one of the following:
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o Documentation of the role of the project in the area’s economic development strategy or 

other economic and community development planning process.

o Documentation of the planned economic and community use of the project site after the 

primary reclamation activities are completed. Examples include contracts, agreements in 

principle, or other evidence that, once reclaimed, the site is reasonably anticipated to be 

used for one or more industrial, commercial, residential, agricultural or recreational 

purposes.

It is recommended that the documentation and outcomes noted above are submitted during the vetting 

process (described more fully below). The documentation and outcomes noted above will be required 

when seeking an Authorization to Proceed (ATP).

Project description examples are provided below:

Example of Acceptable Category A Project: The Big Sky Outdoor Recreation Trail project will consist of 

two sections of trail infrastructure development: 1) reclamation and construction on abandoned mine 

lands to create 10 miles of trails within the Big Sky Outdoor Recreation Trail Network, using AML Pilot 

funding; and 2) construction of trail facilities and five miles of feeder trails on adjacent properties that 

will connect to the Big Sky Outdoor Recreation Trail Network, leveraging private funding. This project is 

consistent with a Comprehensive Economic Development Strategy (CEDS) developed by the region 

and focuses on tourism and recreation as an economic growth opportunity. By investing in the 

infrastructure for both local and visiting outdoor enthusiasts, the region will attract visitors and develop 

local businesses around the emerging cluster of outdoor recreation outfitters and manufacturers, 

restaurants, hospitality businesses, and other related businesses.

Example of Acceptable Category A Project: This project will install waterline, broadband, utilities, and 

local access road to a 10 acre AML site. This project includes acid mine drainage cleanup activities to 

prepare the site for future business site development. The site is targeted for manufacturing and 

industry tenants, based on agreements in principle with two prospective manufacturing tenants.

Additional funds include $1 million in private investment.

Example of Acceptable, Category B Project: This project will reclaim 10 acres of abandoned mine land, 

a site that will later be used to build a community center with Internet access, job placement and 

vocational training facilities. The need for the community center was identified in a documented 

community planning process and approved by local government officials.

Examples of Unacceptable Projects: 1) The project is not located on or adjacent to an unreclaimed or 

previously reclaimed AML site. 2) The project does not sufficiently demonstrate a nexus to economic 

and community development. 3)The performance measure for economic and community development 

is being categorized as future industrial development but it is not associated with a local economic or 

community development planning process and/or does not have the support of local government 

officials.

IV. USE OF FUNDS AND LEVERAGING OTHER FUNDING SOURCES

AML Pilot grant recipients must comply with all applicable Federal grant award requirements, including 

but not limited to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for 

Federal Awards (2 CFR Part 200). States, Tribes, and local communities have the flexibility to use 

AML Pilot funds for both the reclamation of impacted lands and waters and brick and mortar needs 

related to the end-use development project. The Pilot Program offers maximum flexibility in this regard, 

letting States, Tribes, and local communities balance the needs of an individual project with the ability 

to fund other priority Pilot projects.
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Where resources may help expand a project’s scope or outcome, States, Tribes, and local communities 

are encouraged to identify and leverage other public and private funding sources to be used in 

conjunction with funding provided through the AML Pilot. In particular, States and Tribes are 

encouraged to review opportunities for leveraging funds and other resources made available by other 

Federal offices. This includes the Appalachian Regional Commission (ARC) and the Economic 

Development Administration (EDA)1. A non-exhaustive list of examples of funding combinations 

includes:

 AML Pilot $ + Private $

Additional funds could demonstrate economic and community development with a nexus to an AML 

site.

 AML Pilot $ + AML $

Monies will need to be tracked separately. OSMRE’s existing account structure can accommodate 

this tracking.

 AML Pilot $ + ARC $

Combining, coordinating, or matching AML Pilot funds with ARC funds could demonstrate economic 

and community development with a nexus to an AML site. AML Pilot funds or other AML funds can 

be used as matching funds for projects funded by ARC.

 AML Pilot $ + EDA $

Combining, coordinating, or matching AML Pilot funds with EDA funds could demonstrate economic 

and community development with a nexus to an AML site to leverage other funding sources such as 

funds awarded by EDA.

 AML Pilot $ + USDA $

Opportunities for combining, coordinating, or matching AML Pilot funds with USDA rural 

development funds in certain areas may also be available.

V. DEVELOPING AML PILOT PROJECTS

Each State/Tribal AML Program is responsible for developing eligible AML Pilot projects. AML Pilot 

project proposals should include a description of how, when, where, and for what reclamation, 

economic or community development purposes AML Pilot funds will be used. States/Tribes should 

provide summary level information about the project’s purpose, cost, partnerships and/or leveraged 

funds (if applicable), and the expected economic benefits that lead to the project’s selection. The 

State/Tribe should also include information on the intended sub-recipient of funds. Eligible grant subrecipients are typically limited to State, Tribal, and local governments, economic development 

organizations, local communities, and non-government organizations. These sub-recipients, who are 

also considered sub-grantees may sub-contract project-related activities as appropriate, only after an 

Authorization to Proceed (ATP) has been issued for the specific project.

Once State/Tribal AML Programs, working with their local economic development authorities and local 

communities, conceptually develop their AML Pilot project proposals, these proposals must then be 

submitted to the servicing OSMRE Field Office. OSMRE will work with the State and Tribal AML 

Programs to conduct a review of these proposed projects on a rolling basis. OSMRE’s review and 

approval process occurs in two phases. 

 

1

Information about federal funding opportunities and additional funding and other resources (e.g., technical assistance) can be 

found at: www.eda.gov/coal/ and www.arc.gov.
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First, OSMRE will vet project proposals to identify at the early stage any concerns about the project or 

its eligibility. OSMRE will advise the State/Tribe of any concerns with the project, or will provide 

confirmation that the project does not raise any concerns at this early stage. Once the proposed 

project has been vetted, and if it receives OSMRE’s preliminary approval, the State/Tribe should then 

proceed to develop the detailed project design, technical analysis, legal and regulatory requirements 

necessary, so that the project can advance to the next phase.

The second and final phase involves the environmental review and OSMRE’s issuance of an ATP. 

Please note that each preliminarily-approved AML Pilot project requires the issuance of an 

authorization to proceed. 

VI. PUBLIC ENGAGEMENT

When developing eligible projects for the AML Pilot, State/Tribal AML Programs should ensure public 

engagement at the local level through communication with State, Tribal, and local economic 

development programs. These organizations are well-suited for understanding and achieving 

economic and community development end uses and goals.

States/Tribes are encouraged to utilize best practices for public engagement that are already in place,

or develop a process for public outreach and communication with local citizens and public organizations 

that best meets their unique circumstances. Some examples of public engagement include, but are not 

limited to, notification of local citizens of the intent/purpose of a project via meetings, print media, and 

social media; and partnering with organizations that inherently facilitate public outreach and 

communication. Documentation of public outreach must be submitted when seeking an ATP.

VII. PROJECT BENEFITS, EXPECTED OUTCOMES OR PERFORMANCE MEASURES

States and Tribes are urged to demonstrate the success of their Pilot Program by tracking and 

reporting on as many economic measures as practical for each selected AML Pilot project. 

States/Tribes can identify, track and define the success of projects in many ways. However, State and 

Tribal AML Programs will be required to report economic benefits and performance measures 

associated with awarded projects (see Section X). Examples of significant measures of success are 

provided below:

o Jobs created (beyond those jobs necessary to conduct reclamation);

o Businesses created, or served, or improved;

o Infrastructure created (impact could be measured by the linear feet, acreage, square feet, or 

other unit of measure for the expected amount of water, sewer, utility, or other form of 

infrastructure installed, constructed or repaired);

o Revenues increased (export or domestic sales);

o Patients served or improved;

o Participants served or improved;

o Organizations served or improved;

o Increased, enhanced, or restored infrastructure system capacity (includes energy capacity, 

broadband accessibility);

o Communities served or improved;

o Households served or improved;

o Housing units constructed or rehabilitated;

o New or existing workers or students served or improved; and

o Number of visitors (overnight and daytime).
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VIII. COMPLIANCE WITH THE NATIONAL ENVIRONMENTAL POLICY ACT

OSMRE has determined that the provisions of the National Environmental Policy Act (NEPA) apply to 

all AML Pilot projects funded under Public Law 115-141. NEPA regulations issued by the White House 

Council on Environmental Quality (CEQ) are found at Title 40, Parts 1500-1508 of the Code of Federal 

Regulations (40 CFR Parts 1500-1508, 42 U.S.C. 4371 et seq.).

In accordance with NEPA regulations, analysis of the “Federal action” is applicable to the approval of 

AML Pilot projects, as they are “Federally assisted activities” due to the allocation of Federal funds 

which must be “approved” by “other regulatory decisions.” Public Law 115-141 provides OSMRE with 

the authority to allocate funding to Alabama, Kentucky, Ohio, Pennsylvania, Virginia, West Virginia, the 

Crow Tribe, the Hopi Tribe, and the Navajo Nation for eligible projects that involve abandoned mine 

land reclamation and related economic and community development activities.

Based on the significance of the actual and potential impacts of the proposed action, there are three 

types of NEPA analysis:

1) Categorical Exclusion (CE);

2) Environmental Assessment (EA), which may result in a Finding of No Significant Impact (FONSI); 

and

3) Environmental Impact Statement (EIS).

The Department’s NEPA regulations make clear, in the absence of an applicable CE, that an EA, and in 

some cases, an EIS must be prepared for the proposed Federal action. Title 43 of the Code of Federal 

Regulations (CFR) Part 46.205(A) states:

If a proposed action does not meet the criteria for any of the listed Departmental categorical exclusions or any of the 

individual bureau categorical exclusions, then the proposed action must be analyzed in an environmental assessment or 

environmental impact statement.

However, based on the aforementioned and OSMRE’s experience with the traditional Title IV - AML 

sites, it is anticipated a CE or an EA will suffice for most AML Pilot projects. These definitions are 

outlined below.

Categorical Exclusion

A CE is the first threshold of NEPA analysis for a proposed Federal action. The NEPA regulations 

account for projects that are sufficiently minor in scope and effect so that neither an EA nor an EIS 

needs to be prepared. For these types of projects, OSMRE has created and received approval from

CEQ for a CE for certain types of AML projects. This CE is contained in the DOI Departmental Manual 

(DM), Chapter 13 [516 DM 13.5 (33)], and applies to AML projects that meet the following criteria:

No more than 100 acres; no hazardous wastes; no explosives; no hazardous or explosive gases; no dangerous 

impoundments; no mine fires and refuse fires; no undisturbed, noncommercial borrow or disposal sites, no dangerous 

slides where abatement has the potential for damaging inhabited property; no subsidence involving the placement of 

material into underground mine voids through drilled holes to address more than one structure, and no unresolved 

issues with agencies, persons, or groups or adverse effects requiring specialized mitigation.

Environmental Assessment

If a determination is made that a CE does not apply to a proposed Federal action, then an EA is 

prepared. The EA determines whether a Federal action has the potential to cause significant 

environmental effects. If no significant environmental effect is found, the decision document will result 

in a FONSI and the project may continue. However, if a significant effect is found, then the project 

must go through the more rigorous EIS process.
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Environmental Impact Statement

An EIS is prepared if the proposed major Federal action is determined to significantly affect the quality 

of the human environment. The determination whether to perform an EIS must be made with respect to 

any “Federal action” deemed major or significant (see 40 CFR 1508.18). The regulatory requirements 

for an EIS are more detailed and rigorous than the requirements for an EA.

Project participants are strongly encouraged to utilize this guidance and look closely at the parameters 

of the three types of NEPA analyses outlined above to align their proposed projects accordingly in order 

to best understand their likely level of NEPA threshold prior to OSMRE’s review.

IX. PURCHASE OF REAL PROPERTY 

The requirements for the acquisition, use, management, and disposal of real property acquired under a 

AML Pilot grant are established under the Uniform Administrative Requirements, Cost Principles, and 

Audit Requirements for Federal Awards (2 CFR Part 200) and the Uniform Relocation Assistance and 

Real Property Acquisitions Policies Act of 1970 (P.L. 91-646) (49 CFR Part 24). Other applicable 

provisions are also found in sections 407 and 409 of SMCRA (30 U.S.C. 1237, 30 U.S.C. 1239), and 

OSMRE regulations referenced in 30 CFR Part 879.

Real property means land or an interest in land, such as an easement. Real property may include land 

improvements, structures and appurtenances thereto, but excludes moveable machinery and

equipment. OSMRE recognizes that on rare occasions it may be necessary to acquire land using AML 

Pilot funds to facilitate the accelerated economic development of a Pilot project. State/Tribal AML 

programs should clearly demonstrate in the proposal that acquisition of the property is necessary to 

achieve the goals of the AML Pilot project.

Whenever a State/Tribal Program is seeking approval to use AML Pilot funds to purchase an interest in 

real property, the SF-429-B, Request to Acquire, Improve, or Furnish, must be submitted to OSMRE. 

All aspects of the purchase must be in compliance with applicable laws and regulations relating to real 

estate purchases.

When such purchases occur, while OSMRE does not typically become the owner of the land, OSMRE

does retain an interest. At a minimum, that interest is to ensure that State/Tribal AML Program 

maintains the land in accordance with the purpose and conditions set out in the financial assistance 

award. When the land is no longer needed, or utilized, for that purpose, in accordance with 2 CFR Part 

200, the State/Tribal AML Program must dispose of or revert title to the land in accordance with award 

documents, deed, or other legal instrument.

Designation as Recipient/Sub-recipient

The State/Tribal AML Program that receives an AML Pilot grant which funds the purchase of real 

property will always be designated the recipient. Any other State/Tribal Agency, local government, 

institution of higher education, or non-profit organization that holds title to real property purchased using 

AML Pilot funds will be designated a sub-recipient. It is incumbent upon the State/Tribal AML Program, 

as the recipient, to provide the sub-recipient with all relevant terms and conditions of the AML Pilot 

grant.

Fair Market Value & Appraisals

The Federal contribution from the AML Pilot funds to the purchase price of the property must not 

exceed the appraised fair market value. Real property that will be purchased with funds from financial 

assistance actions must be appraised in accordance with the Uniform Appraisal Standards for Federal 

Land Acquisitions (UASFLA or the “Yellow Book”) by an independent real property appraiser licensed 

or certified by the state in which the property is located. A property appraisal by a state-certified 
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appraiser shall be prepared for the acquisition of the subject property. The appraiser should be 

certified for all general property appraisals (49 CFR Part 24.103).

Deed of Transfer

The deed of transfer must specify that the property will be used for the purposes of the Pilot project. If 

the non-Federal entity dissolves or is unable to continue managing the property as intended, the 

property must be transferred (with the original deed restrictions) to another non-Federal entity with the 

same goals. The new non-Federal entity must continue to operate and maintain the property as 

appropriate. The deed of transfer must also specify that if the property is no longer needed for the 

purposes stated in the deed, the owner will notify and consult with State/Tribal AML Program and 

DOI/OSMRE for appropriate disposition instructions.

Tracking Data on Real Property

OSMRE requires that the State/Tribal AML Program submit a report annually on the status of real 

property acquired using AML Pilot funds for the period of time in which the Federal government retains

an interest. If the interest in the land will be held for less than 15 years, reports must be submitted 

annually. If the interest in the land will be held for 15 years or more, then the recipient must submit 

reports annually for the first three years and then every five years thereafter (2 CFR Part 200.329).

X. REPORTING REQUIREMENTS

This program is deemed by Congress as a “pilot” and involves the significant expenditure of Federal 

funds. As such, OSMRE is obligated to report to Congress and the public on the use of AML Pilot 

funds, as well as the benefits derived from their use. To this end, OSMRE will compile an Annual AML

Pilot Program Report that will evaluate the economic impact of the Program and the status of AML Pilot 

projects within each State and Tribe. To assist OSMRE in preparing this report, each State and Tribal 

AML Program will be required to provide information on their AML Pilot projects to OSMRE no later 

than September 30 of each year. In addition to regular grant performance reporting, State and Tribal 

AML programs are required to submit the following information:

 A list of AML Pilot projects that received AML Pilot Grants for each funding year. 

 A summary of the process used by each State/Tribe to solicit, develop and select projects. 

 Current status of each AML Pilot project, including:

o AML Pilot funding amount requested vs. actual amount received;

o All other funding source(s) leveraged (e.g., in-kind services, private contribution, AML grants, 

etc.);

o Total amount expended on the project to date and the amount expected to be spent;

o Project partners;

o Economic benefits/performance measures accomplished to date;

o Expected benefits/outstanding performance measures to be accomplished and timelines for 

completion. 

* * *

If you have any questions or need additional assistance, please contact Sterling Rideout or 

Yolande Norman at 202-208-4264 or your servicing OSMRE Field Office