I 
117TH CONGRESS 
1ST SESSION H. R. 4799 
To amend the Mineral Leasing Act to make certain improvements in the 
laws relating to coal royalties, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 29, 2021 
Mr. CARTWRIGHT
(for himself, Mr. HUFFMAN, Mr. LOWENTHAL, Mr. 
MOULTON, and Mr. RYAN) introduced the following bill; which was re-
ferred to the Committee on Natural Resources, and in addition to the 
Committee on Energy and Commerce, for a period to be subsequently de-
termined by the Speaker, in each case for consideration of such provisions 
as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Mineral Leasing Act to make certain improve-
ments in the laws relating to coal royalties, 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Coal Royalty Fairness and Communities Investment Act 
of 2021’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows: 
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Sec. 1. Short title; table of contents. 
TITLE I—VALUATION OF FEDERAL COAL FOR PURPOSES OF 
ROYALTIES 
Sec. 101. Valuation of coal royalties. 
TITLE II—PROGRAMS TO REINVEST IN COAL-IMPACTED 
COMMUNITIES 
Sec. 201. Establishment of Fund. 
Sec. 202. Federal economic and workforce development assistance programs. 
Sec. 203. Carbon capture and sequestration. 
Sec. 204. Additional Federal agency participation. 
Sec. 205. Definitions. 
TITLE I—VALUATION OF FED-
ERAL COAL FOR PURPOSES 
OF ROYALTIES 
SEC. 101. VALUATION OF COAL ROYALTIES. 
Section 7 of the Mineral Leasing Act (30 U.S.C. 207) 
is amended— 
(1) in subsection (a), by striking the fourth sen-
tence; and 
(2) by adding at the end the following: 
‘‘(d) ROYALTIES.— 
‘‘(1) DEFINITIONS.—In this subsection: 
‘‘(A) ASSESSMENT VALUE.— 
‘‘(i) IN GENERAL.—The term ‘assess-
ment value’, with respect to Federal coal, 
means the gross proceeds accruing to the 
lessee or the affiliate of the lessee’s first 
arm’s length contract for the sale of Fed-
eral coal. 
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‘‘(ii) EXCEPTION.—If the Secretary 
cannot identify any arm’s length contract 
for the sale of Federal coal, then the as-
sessment value means a price imputed by 
the Secretary based on the coal price 
index. 
‘‘(B) ARM’S
LENGTH
CONTRACT.—The 
term ‘arm’s length contract’ means a contract, 
agreement, or transaction for the sale of Fed-
eral coal that is between parties that are inde-
pendent of each other and that are not affili-
ates. 
‘‘(C) AFFILIATE.—The term ‘affiliate’, 
with respect to a lessee, means a party that 
controls, is controlled by, or is under common 
control with the lessee, and includes a parent or 
subsidiary company. 
‘‘(D) COAL PRICE INDEX.—The term ‘coal 
price index’ means the schedule of average mar-
ket prices of Federal coal (in United States dol-
lars) at final sale, based on the quality and type 
of the Federal coal, as determined by the Sec-
retary, in consultation with the Administrator 
of the Energy Information Administration. 
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‘‘(E) SECRETARY.—The term ‘Secretary’ 
means the Secretary of the Interior. 
‘‘(2) PAYMENT RATE.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), a lease shall require pay-
ment of a royalty in such amount as the Sec-
retary shall determine, which shall not be less 
than 12.5 percent of the assessment value of 
Federal coal. 
‘‘(B) EXCEPTION.—In the case of Federal 
coal recovered by an underground mining oper-
ation, the Secretary may establish such lower 
royalty payment rate as the Secretary deter-
mines to be appropriate in lieu of the royalty 
payment rate described in subparagraph (A). 
‘‘(3) ADMINISTRATION.— 
‘‘(A) REPORTING.—The Secretary shall en-
sure that any purchaser of Federal coal shall 
annually submit to the Secretary a report con-
taining such information as the Secretary deter-
mines to be necessary to carry out this sub-
section. 
‘‘(B) AUDITS.—To carry out this sub-
section, the Secretary may examine the records 
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of any person engaged in the purchase, sale, 
transportation, or marketing of Federal coal. 
‘‘(4) COAL PRICE INDEX.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
compile in a coal price index the assessment 
values of coal by type and quality of coal. 
‘‘(B) PUBLICATION.—Not less frequently 
than quarterly, the Secretary shall publish in 
the Federal Register and on a public website 
the coal price index, along with a methodo-
logical description, including— 
‘‘(i) the method of calculation; 
‘‘(ii) the data used to calculate the 
coal price index in an aggregate manner 
that does not reveal proprietary informa-
tion; and 
‘‘(iii) any other information the Sec-
retary considers appropriate to ensure 
transparency. 
‘‘(C) OTHER INFORMATION.—If a person 
believes that the coal price index does not accu-
rately reflect the assessment value of the coal 
produced by the person, the person may peti-
tion the Secretary to use information supplied 
by the person in lieu of the coal price index for 
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the purpose of determining the assessment 
value of the coal produced by such person, in-
cluding all information the Secretary requires 
to accurately determine the assessment value 
and audit the records of the person. 
‘‘(5) REVIEWS.— 
‘‘(A) IN
GENERAL.—To ensure a trans-
parent, fair, and efficient administration of the 
Federal coal program, and to ensure that citi-
zens of the United States receive a fair return 
on Federal coal, not later than 3 years after the 
date of the enactment of this subsection and 
every 3 years thereafter during the 15-year pe-
riod beginning on such date, the Comptroller 
General of the United States shall submit to 
Congress a report containing the results of a 
review conducted by the Comptroller General of 
the Federal coal program, including the admin-
istration of this subsection. 
‘‘(B) CONSULTATION.—In conducting a re-
view under this paragraph, the Comptroller 
General shall consult with— 
‘‘(i) the Secretary; 
‘‘(ii) the Director of the Bureau of 
Land Management; 
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‘‘(iii) the Secretary of Transportation; 
and 
‘‘(iv) the Secretary of Energy. 
‘‘(C) INCLUSIONS.—In conducting a review 
under this paragraph, the Comptroller General 
shall review— 
‘‘(i) the total volume of coal produc-
tion from Federal land; 
‘‘(ii) the total volume of remaining 
coal reserves on Federal land; 
‘‘(iii) the total amount of revenues 
generated from the Federal coal program, 
itemized by type of revenue, including lease 
bonus payments and royalties; 
‘‘(iv) market prices for coal; 
‘‘(v) market prices for transportation 
costs and any other deductible costs; and 
‘‘(vi) the appropriateness of royalty 
rates. 
‘‘(D) FORMAT.—The Comptroller General 
shall report information in a review under this 
paragraph— 
‘‘(i) in the aggregate for the United 
States; and 
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‘‘(ii) categorized by State for at least 
the top 10 Federal coal-producing States, 
as determined by the Comptroller General. 
‘‘(6) STUDY.—The Secretary shall seek to enter 
into an agreement with the National Academy of 
Sciences to conduct a study to determine the most 
equitable method for valuation of coal produced on 
Federal lands for purposes of Federal coal leases. 
Not later than 18 months after the date of the en-
actment of this subsection, and every five years 
thereafter, the Secretary shall submit to Congress a 
report containing the findings, of such study.’’. 
TITLE II—PROGRAMS TO REIN-
VEST 
IN 
COAL-IMPACTED 
COMMUNITIES 
SEC. 201. ESTABLISHMENT OF FUND. 
(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States a separate account, to be 
administered by the Secretary (acting through the Eco-
nomic Development Administration), to be known as the 
‘‘Coal Area Economic Revitalization Fund’’. 
(b) DEPOSITS.—Of the amount of royalty revenues 
collected by the United States for each fiscal year from 
coal leases under section 7 of the Mineral Leasing Act (30 
U.S.C. 207) (as amended by section 101(2)), to the extent 
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the revenues are available, there shall be deposited in the 
Coal Area Economic Revitalization Fund $75,000,000. 
(c) AVAILABILITY OF AMOUNTS.— 
(1) IN
GENERAL.—Subject to subsection (d) 
and notwithstanding any other provision of law, for 
each fiscal year, of the amounts deposited in the 
Coal Area Economic Revitalization Fund under sub-
section (b), there shall be made available, without 
further appropriation, the following amounts: 
(A) $70,000,000 to the Secretary to pro-
vide grant assistance under covered programs 
for eligible projects, in accordance with section 
202. 
(B) $5,000,000 to the Secretary of Energy 
to provide funding for large-scale projects to 
capture and store carbon dioxide emissions 
from industrial sources, in accordance with sec-
tion 203. 
(2) SPECIAL RULE.—If, with respect to a fiscal 
year, the amounts in the Coal Area Economic Revi-
talization Fund are insufficient to carry out para-
graph (1), there shall be made available, without 
further appropriation, the following: 
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(A) To the Secretary for the purposes de-
scribed in paragraph (1)(A), 93.333 percent of 
the amounts available in the Fund. 
(B) To the Secretary of Energy for the 
purposes described in paragraph (1)(B), 6.666 
percent of the amounts available in the fund. 
(d) ADMINISTRATIVE EXPENSES.—A participating 
agency that receives funds under subsection (c) may not 
use not more than 2 percent of the amount the agency 
receives for each fiscal year to cover the administrative 
expenses of the participating agency in carrying out the 
covered program. 
(e) PERIOD OF AVAILABILITY.—The amounts depos-
ited in the Coal Area Economic Revitalization Fund shall 
remain available without fiscal year limitation until ex-
pended. 
SEC. 202. FEDERAL ECONOMIC AND WORKFORCE DEVELOP-
MENT ASSISTANCE PROGRAMS. 
(a) IN GENERAL.—The Secretary, acting through the 
Economic Development Administration, shall use the 
amounts made available under section 201(c)(1) to pro-
vide grant assistance under covered programs described 
in subsection (c) for eligible projects described in sub-
section (d). 
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(b) ALLOCATION
OF FUNDS
FOR COVERED PRO-
GRAMS.— 
(1) IN GENERAL.—The Secretary shall— 
(A) allocate amounts made available to 
carry out this section among the covered pro-
grams in accordance with the criteria described 
in paragraph (2); and 
(B) not later than 30 days after allocations 
are determined under subparagraph (A), pro-
vide public notice of the availability of grant as-
sistance under this section through a Federal 
Funding Opportunity announcement. 
(2) ALLOCATION
CRITERIA.—Not later than 
120 days after the date of enactment of this Act, the 
Secretary shall establish and publish criteria for the 
allocation of amounts made available to carry out 
this section among the covered programs. 
(c) COVERED PROGRAMS.— 
(1) IN GENERAL.—On allocation by the Sec-
retary of amounts from the Coal Area Economic Re-
vitalization Fund for a covered program under this 
section, the head of the applicable participating 
agency shall manage grant selection (including eligi-
bility requirements in addition to the eligibility re-
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quirements listed in subsection (d)), awards, and 
execution of projects with respect to such amounts. 
(2) TERMS AND CONDITIONS.—Except as other-
wise provided in this section, projects that receive 
grant assistance under this section shall be subject 
to the eligibility rules, permitted activities, and re-
porting requirements of the covered program under 
which the grant is made. 
(d) ELIGIBLE PROJECTS.— 
(1) PROJECT PURPOSES.—A project shall be el-
igible for assistance under this section if the purpose 
of the project is to assist impacted communities— 
(A) to organize community stakeholders, 
analyze and inventory community assets, evalu-
ate needs and resources, or develop comprehen-
sive economic development strategic plans; 
(B) to undergo in-depth labor market anal-
ysis and workforce development and dislocated 
worker planning associated with the provision 
of training and employment services; 
(C) to implement linked economic and 
workforce development strategies to promote 
local and regional economic growth; 
(D) to accelerate job creation by leveraging 
local assets; 
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(E) to train and place workers in family- 
supporting, high-demand jobs (including reg-
istered apprenticeship and other on-the-job 
training models); 
(F) to create linkages between community 
stakeholders, economic development organiza-
tion, public and private entities, and the labor 
force that drive local and regional economic 
growth; or 
(G) to carry out other purposes approved 
by the Secretary. 
(2) PRIORITY.—In selecting projects to receive 
assistance under this section, the head of a partici-
pating agency shall— 
(A) give priority to project applications 
that establish a clear linkage between the pro-
posed project and the means by which the 
project will result in local and regional economic 
growth and diversification, job creation, or job 
training and reemployment for dislocated work-
ers, without regard to any formula used by a 
participating agency to disburse other funds; 
and 
(B) consult directly with impacted commu-
nities to determine the greatest needs of the im-
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pacted communities and give priority to projects 
that address those needs. 
(3) SPECIFIC
ACTIVITIES
AND
COSTS
TO
BE 
CONSIDERED.—In providing assistance under this 
section for projects for economic diversification, the 
head of a participating agency shall give consider-
ation for priority, at a minimum, to the following ac-
tivities and costs: 
(A) Analysis activities that build from stra-
tegic economic development plans, including— 
(i) economic and workforce data col-
lection; and 
(ii) supply chain and industry cluster 
analysis. 
(B) Outreach and targeted assistance to 
economic development organizations, unions, 
workers, and other stakeholders. 
(C) Remediation and redevelopment of coal 
economy sites, as appropriate. 
(D) Provision of business planning and 
market exploration services. 
(E) Development of business incubator 
programs. 
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(F) Facilitation of access to private capital 
investment and capacity building to effectively 
use capital investment. 
(G) Promotion of exports from entities in 
the impacted area. 
(H) Workforce training and dislocated 
worker services and supports for impacted 
workers. 
(I) Costs associated with registered ap-
prenticeship and on-the-job training models. 
(J) Temporary or short-term relocation or 
commuting costs for available jobs in other 
parts of the applicable State or region. 
(K) Staffing, operating, and administrative 
costs for the recipient organization. 
(L) Comprehensive strategies that— 
(i) integrate all of the activities and 
costs described in subparagraphs (A) 
through (K); and 
(ii) leverage other investments from 
the applicable participating agency and 
other Federal departments and agencies. 
(e) COORDINATION OF ACTIVITIES.—The Secretary 
shall— 
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(1) provide a single staff point of Federal con-
tact (with staffing assistance from other partici-
pating agencies, as needed) for grants awarded 
under this section; and 
(2) coordinate cross-agency activities at the re-
gional level that direct additional Federal resources 
to impacted communities. 
SEC. 203. CARBON CAPTURE AND SEQUESTRATION. 
The Secretary of Energy shall use the amounts made 
available under section 201(c)(2) to provide financial as-
sistance for the design, construction, and operation of 
large-scale projects to capture and store carbon dioxide 
emissions from industrial sources. 
SEC. 204. ADDITIONAL FEDERAL AGENCY PARTICIPATION. 
(a) IN GENERAL.—The Federal departments and 
agencies described in subsection (b) shall provide to im-
pacted communities technical assistance and educational 
outreach to fund partnerships, in coordination with avail-
able resources. 
(b) DESCRIPTION
OF DEPARTMENTS
AND AGEN-
CIES.—The Federal departments and agencies referred to 
in subsection (a) are— 
(1) the Rural Business-Cooperative Service of 
the Department of Agriculture; 
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(2) the Office of Solid Waste and Emergency 
Response of the Environmental Protection Agency; 
(3) the Department of Energy; 
(4) the Community Development Financial In-
stitutions Fund of the Department of the Treasury; 
(5) SelectUSA and the National Institute of 
Standards and Technology—Manufacturing Exten-
sion Partnerships of the Department of Commerce; 
(6) the Corporation for National and Commu-
nity Service; and 
(7) the Office of Surface Mining Reclamation 
and Enforcement of the Department of the Interior. 
SEC. 205. DEFINITIONS. 
In this title: 
(1) COAL
ECONOMY.—The term ‘‘coal econ-
omy’’ means the complete supply chain of coal reli-
ant industries, including coal mining, coal-fired 
power plants, and related transportation, logistics, 
and manufacturing. 
(2) COVERED
PROGRAM.—The term ‘‘covered 
program’’ means any of the following: 
(A) The Assistance to Coal Communities, 
Economic Adjustment Assistance, and Partner-
ship Planning program of the Economic Devel-
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opment Administration of the Department of 
Commerce. 
(B) The Dislocated Worker National 
Emergency Grants program of the Employment 
and Training Administration of the Department 
of Labor. 
(C) The Regional Innovation Clusters and 
Growth Accelerators program of the Small 
Business Administration. 
(D) The Technical Assistance and Dem-
onstration Projects program of the Appalachian 
Regional Commission. 
(3) IMPACTED
COMMUNITY.—The term ‘‘im-
pacted community’’ means a community or Indian 
tribe (as such term is defined in section 4 of the In-
dian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b)) in the United States that has 
been negatively impacted as a result of changes in 
the coal economy, including a negative impact on its 
economy, environment, employment, retirement ben-
efits, infrastructure, public health, or education. 
(4) PARTICIPATING AGENCY.—The term ‘‘par-
ticipating agency’’ means a Federal agency that has 
primary authority over a covered program. 
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(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Commerce. 
Æ 
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