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CHAPTER 4-110

ANNUAL DISTRIBUTION OF TITLE IV GRANT FUNDS

4-110-00 What does this chapter do?

4-110-10 Where do these requirements come from?

4-110-20 What is a mandatory distribution?

4-110-30 What types of Title IV funding are included in the annual AML mandatory

distribution?

4-110-40 What are our offices responsible for in the mandatory distribution process?

4-110-50 How do we process the annual AML mandatory distribution?

4-110-60 How will we distribute appropriated Title IV Funds to you?

4-110-00 What does this chapter do?

This chapter explains our process for distributing Title IV grant funds. The annual distribution 

process identifies the total Abandoned Mine Land (AML) funding available for this fiscal year, 

which types of AML funds are included, and how much is available to each eligible state and 

tribe. After this process is completed, the funds identified for your state or tribe are available for 

us, the Office of Surface Mining Reclamation and Enforcement (OSMRE), to award to you in a 

grant. 

4-110-10 Where do these requirements come from?

Title IV of the Surface Mining Control and Reclamation Act of 1977 (SMCRA), Public Law 95-

87, as amended, authorizes multiple types of AML funds. It establishes how they are distributed 

or appropriated, and how we must make them available to you, that have approved reclamation 

programs. 

4-110-20 What is a mandatory distribution?

The mandatory annual distribution authorized by SMCRA is the source of most of your AML 

funding. These funds do not have to be appropriated each year by Congress. The funds are “off 

budget” and not included in our annual funding request or subject to appropriations laws that 

provide most Federal funds.

4-110-30 What types of Title IV funding are included in the annual AML mandatory

distribution?

SMCRA authorizes a mandatory annual distribution for the following types of Title IV funds. 

You must have an approved reclamation program to receive any of these funds: 

A. State or Tribal Share Funds.

1. It is authorized in section 402(g)(1) of SMCRA. Its source is the AML Fund. We

abbreviate it in our accounting system as SS.
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2. We distribute it only to uncertified states and tribes. 

3. Each year we will distribute 50% of the reclamation fee collections for coal 

produced in the previous fiscal year (FY) in your state, or on Indian lands within 

your tribe’s jurisdiction. 

4. We will phase in State Share Funds at 50% of the total that is required for FY 

2008 and 2009, 75% for FY 2010 and 2011, and fully fund it in FY 2012 through 

2022.

B. Historic Coal Funds.

1. They are authorized in section 402(g)(5) of SMCRA. Its source is the AML 

Fund, and we abbreviate them as HC. 

2. We distribute them to uncertified states and tribes. You are eligible for historic 

coal if you have an inventory of unfunded Priority 1 and 2 coal problems greater 

than your State or Tribal Share Funding. 

3. Total annual historic coal funding is 30% of total national reclamation fee 

collections for coal produced in the previous FY. It also includes 60% of any 

other revenues to the AML fund except interest from investment activities. It also 

includes money we transfer from State or Tribal Share after we distribute the 

equivalent amounts for Treasury Prior Balance Replacement Funds or Certified in 

Lieu Funds to certified states and tribes. 

4. We divide total historic coal between the eligible states by formula based on 

historic coal mining production in each state before the passage of SMCRA. 

5. We will phase in Historic Coal Funds at 50% of the total that is required for FY 

2008 and 2009, 75% for FY 2010 and 2011, and fully fund it for FY 2012 through 

2022.

C. Minimum Program Make-up Funds.

1. They are authorized in section 402(g)(8) of SMCRA. Its source is the AML 

Fund. Minimum Program Make-up Funds is the only mandatory distribution 

from the Secretary’s 20% share of total reclamation fee collections. We 

abbreviate it as FE.

2. SMCRA sets a minimum funding level of $3,000,000 for each uncertified state or 

tribal program. You are eligible for Minimum Program Make-up Funds if you 

have an inventory of unfunded Priority 1 and 2 coal problems greater than the 

total funding your state or tribe would otherwise receive. 
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3. If an eligible state or tribe would otherwise receive less than $3,000,000, we 

distribute enough Minimum Program Make-up Funds to increase your total 

funding from all shares to $3,000,000. 

4. We will phase in Minimum Program Make-up Funds at 50% of the total that is 

required for FY 2008 and 2009, 75% for FY 2010 and 2011, and fully fund it for 

FY 2012 through 2022.

D. Prior Balance Replacement Funds.

1. They are authorized in section 411(h)(1) of SMCRA. Its source is the General 

Fund of the Treasury. Our accounting system abbreviates Prior Balance 

Replacement Funds for uncertified states as HU, and for certified states and tribes 

as HS.

2. We distribute them to all states and tribes which had an unappropriated balance of 

State or Tribal Share Funds in the AML Fund as of October 1, 2007. Both 

uncertified and certified states and tribes may receive them. 

3. Each state or tribe will receive total payments of prior balance replacement funds 

equal to its unappropriated prior balance. We divide the total into seven equal 

annual payments. We distributed the first payment in FY 2008. 

4. When we distribute Prior Balance Replacement Funds, we transfer the equivalent 

amounts in the AML Fund from State or Tribal Share to Historic Coal Funds. We 

will distribute these funds to eligible states and tribes in FY 2023, and in 

subsequent years.

5. We will not phase in these payments. 

E. Certified in lieu funds.

1. They are authorized in section 411(h)(2) of SMCRA. Its source is the General 

Fund of the Treasury. We abbreviate them as H2.

2. We distribute them to certified states and tribes only.

3. We distribute an amount equal to 50% of reclamation fee collections on coal 

produced in the previous FY in your state, or on lands under your tribe’s 

jurisdiction. We distribute these funds in lieu of the AML Fund moneys for the 

State and Tribal Share that they are no longer eligible to receive. 
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4. When we distribute Certified in Lieu Funds, we transfer the equivalent amounts in

the AML Fund to Historic Coal and distribute them each year as part of the

Historic Coal distribution.

5. We will phase in Certified in Lieu Funds at 25% of the total otherwise required in

FY 2009, 50% in FY 2010, 75% in FY 2011, and fully fund them in FY 2012

through 2022. We will distribute the amounts we held back during the phase-in

as two equal payments in FY 2018 and 2019.

4-110-40 What are our offices responsible for in the mandatory distribution process?

A. The Director approves the distribution of Title IV funds.

B. The Division of Reclamation Support (DRS) issues distribution instructions, reviews the

final distribution calculation for correct application of policy and procedures, and

recommends approval of the distribution. DRS also has the lead role in answering policy

questions regarding AML distribution.

C. The Division of Financial Management (DFM) determines the amount of Title IV funds

to be distributed to each state and tribe in accordance with this chapter. DFM provides an

electronic version of the annual distribution to be posted on the OSMRE web site. DFM

and the Office of Planning, Analysis and Budget (OPAB) coordinate to ensure that the

allotments are properly recorded in the financial system. DFM has the lead role in

answering questions regarding financial figures used in the distribution.

D. OPAB works with the DFM to request a warrant from Treasury for the approved amount

of Treasury funds to be distributed. OPAB allots all distributed funds to the regions.

E. The regional directors (RDs) and the regional and field offices provide technical

assistance and training to the states and tribes to explain the annual distribution process

and calculations. They review the proposed distribution to verify that their states and

tribes are properly handled. They answer questions about how the distribution affects

each program, and the options available to the state or tribe to use the distributed funds.

4-110-50 How do we process the annual AML mandatory distribution?

A. DRS will define the distribution parameters based on SMCRA and OSMRE regulations

and directives. Before the reclamation fee collection cut-off date each FY, DRS will send

DFM a memorandum with detailed procedures for calculating this FY’s mandatory

distribution.

B. DRS will also send DFM an Enhanced Abandoned Mine Land Inventory System (eAMLIS) report showing the total cost of the unfunded Priority 1 and 2 coal problem areas 

remaining in each state or tribal inventory. The report will be used to determine eligibility 

for Historic Coal and Minimum Program Make-up Funds. 
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C. DFM will determine the amount of reclamation fee collections for coal produced in the 

previous FY for each state and tribe. In order to expedite the distribution, DFM will cut 

off collections for each FY on November 30 or as close as administratively feasible. 

Collections for each FY will be net of any adjustments made to prior year collections. 

D. Within seven days of the collections cut-off date, DFM will send their proposed 

distribution to DRS. DFM will prepare a distribution package showing distribution 

amounts, calculations, and supporting data.

E. DRS will review the calculations to assure correct application of policies and parameters. 

DRS will also send the proposed distribution to the RDs for their review. DRS will work 

with DFM to resolve any concerns. Within seven days of receipt of the distribution 

package from DFM, DRS will prepare a memorandum outlining its acceptance of 

distribution calculations and requesting the Director's approval.

F. The OSMRE Director will approve the AML grant distribution.

G. OPAB will request a warrant from the Department of the Treasury for the approved 

amount.

H. DRS will send the approved distribution package to OPAB and DFM. OPAB and DFM 

will coordinate implementation of the distribution in the budget and financial systems. 

The distribution will also be provided to RDs for use in their offices and by states and 

tribes. DFM will provide an electronic version of the approved distribution package for 

posting on the OSMRE web site. 

4-110-60 How will we distribute appropriated Title IV Funds to you?

Congress may appropriate additional Title IV grant funds for state and tribal reclamation 

programs each year. We will distribute these funds to you as soon as practicable after we receive 

the appropriation. DRS will develop distributions based on the requirements of the 

appropriations law. The Director will approve the distributions. DRS will provide the 

distribution to OPAB and DFM and the RDs. OPAB and DFM will coordinate implementation 

of the distribution in the budget and financial systems, and will provide the distribution to the 

public.

State emergency program grant funding must be appropriated. We will distribute funding based 

on your requests. DRS will ask the RDs to obtain estimates from you for your emergency 

program needs in the upcoming fiscal year. Emergency grant estimates should not include 

amounts for contingencies or extremely large one-time events. State emergency program 

requests will be reviewed by the ROs. The ROs will send state estimates and regional 

recommendations to DRS.