I 
114TH CONGRESS 
2D SESSION 
H. R. 5500 
To protect taxpayers from liability associated with the reclamation of surface 
coal mining operations, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 16, 2016 
Mr. CARTWRIGHT (for himself, Mr. GRIJALVA, Mrs. DINGELL, Mr. BEYER, 
Ms. MCCOLLUM, Ms. NORTON, Mrs. WATSON COLEMAN, Mr. ELLISON, 
Mr. HUFFMAN, Mr. POCAN, Ms. SLAUGHTER, Mr. TONKO, Ms. LEE, Ms. 
TSONGAS, Mrs. CAPPS, Mr. CONNOLLY, Mr. BLUMENAUER, Mr. LAN-
GEVIN, Mr. LOWENTHAL, Mr. POLIS, Mr. FARR, Mrs. NAPOLITANO, Mr. 
VAN HOLLEN, Mr. HONDA, Mr. TED LIEU of California, Ms. EDWARDS, 
Ms. CLARK of Massachusetts, Mr. MCGOVERN, Mrs. LAWRENCE, Ms. 
EDDIE BERNICE JOHNSON of Texas, Mr. MCDERMOTT, Mr. FATTAH, 
Ms. BROWNLEY of California, Mr. MOULTON, and Mr. CA´RDENAS) intro-
duced the following bill; which was referred to the Committee on Natural 
Resources 
A BILL 
To protect taxpayers from liability associated with the rec-
lamation of surface coal mining operations, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives 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’’. 
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SEC. 2. SURFACE COAL MINING BONDING. 
Section 509 of the Surface Mining Control and Rec-
lamation Act of 1977 (30 U.S.C. 1259) is amended— 
(1) by striking subsection (c) and inserting the 
following: 
‘‘(c) ALTERNATIVE BONDING SYSTEM.—The Sec-
retary may approve as part of a State or Federal program 
an alternative system that will— 
‘‘(1) achieve the objectives and purposes of the 
bonding program pursuant to this section; and 
‘‘(2) result in no greater risk of financial liabil-
ity to the Federal Government or a State govern-
ment than the bonding program under this section.’’; 
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 sub-
section as a ‘self-bond’); but 
‘‘(ii) may accept a separate surety or 
collateral bond, consistent with the terms 
under subsection (b). 
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‘‘(B) EXISTING
SELF-BONDS.—For coal 
mining operations covered by a self-bond ac-
cepted by the Secretary prior to the date of en-
actment 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.— 
‘‘(A) IN
GENERAL.—Not later than 90 
days after the date of enactment of this sub-
section, the Secretary shall notify all State reg-
ulatory authorities that allow applicants to self- 
bond that the approved regulatory programs of 
the State regulatory authority must be amend-
ed— 
‘‘(i) to remove the authority for appli-
cants to self-bond; and 
‘‘(ii) 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 
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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 per-
mit 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 Sec-
retary shall issue rules establishing limitations on 
surety bonds accepted under this section to minimize 
the risk of financial liability to the Federal Govern-
ment or a State government, including rules regard-
ing— 
‘‘(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 re-
quired for corporate surety bonds; and 
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‘‘(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.—Real property 
posted as collateral for a bond may not include— 
‘‘(1) coal; 
‘‘(2) a coal mine; 
‘‘(3) land that includes a coal mine; 
‘‘(4) land that is located above a coal mine; 
‘‘(5) a coal processing facility; 
‘‘(6) a coal waste disposal site; 
‘‘(7) coal mining equipment unlikely to retain 
salvage or resale value; or 
‘‘(8) any other property determined by the Sec-
retary. 
‘‘(i) EXECUTIVE COMPENSATION.—The Secretary 
may require the inclusion of executive compensation, in-
cluding salaries and bonuses of officers and executives, of 
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an applicant under this section, and any affiliated com-
pany, as collateral for a bond under this section.’’. 
Æ 
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