immediately exercise the appropriate authority under 
section 410 of this Act. 
‘‘(b) INITIAL PROGRAM SITES
AND BOND FOR-
FEITURE SITES WITH INSOLVENT SURETIES.— 
‘‘(1) Sites of surface coal mining operations 
conducted after August 3, 1977, and lands and wa-
ters affected by such operations are also eligible for 
reclamation or drainage abatement expenditures 
under this title of this Act if they were left in an in-
adequate reclamation status and if the Secretary or 
the State, with the concurrence of the Secretary, 
makes either of the following findings: 
‘‘(A) A finding that the surface coal min-
ing operation occurred during the period begin-
ning on August 3, 1977, and ending on or be-
fore the effective date of the State regulatory 
program approved by the Secretary pursuant to 
section 503 of this Act for the State in which 
the site is located, and that any funds for rec-
lamation or abatement which are available pur-
suant to a bond or other form of financial guar-
antee or from any other source are not suffi-
cient to provide for adequate reclamation or 
abatement at the site.
‘‘(B) A finding that the surface coal min-
ing operation occurred during the period begin-
ning on August 3, 1977, and ending on or be-
fore November 5, 1990, and that the surety for 
the mining operation became insolvent during 
that period, and, as of November 5, 1990, 
funds immediately available from proceedings 
relating to that insolvency, or from any finan-
cial guarantee or other source, are not suffi-
cient to provide for adequate reclamation or 
abatement at the site. 
‘‘(2) All sites referred to in paragraph (1) with-
in any State shall be reclaimed before the State or 
the Secretary may make the certification referred to 
in section 411 of this Act. 
‘‘(3) Amounts collected from assessment of civil 
penalties under section 518 of this Act are author-
ized to be appropriated for the purposes of this sub-
section.’’. 
(15) Section 405 is amended by— 
(A) in subsection (d), striking ‘‘sections 
402 and 410’’ and inserting in its place ‘‘sec-
tions 402, 414, and 415’’;
(B) in subsection (f), striking paragraph 
(5) in its entirety and redesignating paragraphs 
(6) and (7) as paragraphs (5) and (6); 
(C) in subsection (f)(6), striking the colon 
after ‘‘grant’’ and inserting ‘‘and’’ before 
‘‘type’’; 
(D) in subsection (g), striking the colon 
after ‘‘include’’ and inserting ‘‘subsection (f) 
of’’ before ‘‘this section’’; and 
(E) amending subsection (h) to read as fol-
lows: 
‘‘(h) GRANT OF FUNDS.— 
‘‘(1) IN GENERAL.—Upon approval of the State 
Reclamation Plan under this section and of the sur-
face coal mining regulatory program pursuant to 
section 503 of this Act, the Secretary shall grant, on 
an annual basis, funds to the State to implement the 
State reclamation program as approved by the Sec-
retary. 
‘‘(2) APPLICATION
PROCESSING
DEADLINE.— 
Within 60 days of receipt of a complete abandoned 
mine reclamation fund grant application from any 
eligible State, the Secretary shall grant to that State 
any and all funds available for such purposes in the 
applicable appropriations Act.
‘‘(3) DISPOSITION OF UNEXPENDED FUNDS.— 
Except as provided in paragraph (5), any funds not 
expended within 3 years after the date of any grant 
award shall be available for reallocation or expendi-
ture by the Secretary for any purpose under section 
403(b) of this Act. 
‘‘(4) SOURCE OF FUNDS.—In awarding grants 
to States and Indian tribes that were not certified 
under section 411 as of September 30, 2005, the 
Secretary shall exhaust the funds dedicated to those 
States and tribes in section 401(d)(2)(B) before 
awarding any funds allocated to those States and 
tribes under section 403(b)(1). 
‘‘(5) STATE
SET-ASIDE.—Any State with an 
abandoned mine reclamation program approved 
under subsection (d) may retain, without regard to 
the 3-year limitation referred to in paragraph (3), 
up to 10 percent of the total amount of the grants 
awarded annually to the State under paragraph (1), 
excluding grants made under the authority of section 
403(b)(2), if those amounts are deposited into either 
of the following: 
‘‘(A) A special trust fund established under 
State law that may earn interest and from 
which the State may make expenditures solely
to achieve the priorities stated in section 403(a) 
after the State is no longer eligible to receive an 
allocation under section 403(b)(1) of this Act. 
‘‘(B) An acid mine drainage abatement 
and treatment fund established under State law 
and from which the State may make expendi-
tures solely for abatement of the causes of acid 
mine drainage and treatment of the effects of 
that drainage in a comprehensive manner with-
in qualified hydrologic units affected by coal 
mining practices. Any interest earned by this 
fund shall be expended for the purposes of this 
paragraph. 
For purposes of this paragraph, the term ‘qualified 
hydrologic unit’ means a hydrologic unit in which 
water quality has been significantly affected by acid 
mine drainage from coal mining practices in a man-
ner that adversely impacts biological resources and 
which contains lands and waters that— 
‘‘(i) meet the eligibility requirements of 
section 404 and at least one of the priorities in 
paragraphs (1), (2), and (3) of section 403(a); 
and 
‘‘(ii) either are or are proposed to be the 
subject of expenditures by the State from bond
forfeiture proceeds under section 509 of this 
Act, or from other State sources, to abate or 
treat acid mine drainage. 
‘‘(6) PRIORITY CONSIDERATION.—In awarding 
grants under this subsection, the Secretary shall give 
priority consideration to a State that receives an al-
location under section 403(b) that is determined 
under clause (ii) or (iii) of paragraph (2) of that sec-
tion.’’. 
(16) Section 406 is amended by— 
(A) striking the word ‘‘Soil’’ wherever it 
appears in subsection (h) and inserting in its 
place the words ‘‘Natural Resources’’; and 
(B) adding the following new subsection at 
the end: 
‘‘(i) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary of Agri-
culture, from the general fund of the Treasury, such sums 
as may be necessary to carry out the provisions of this 
section.’’. 
(17) In section 408(a), the last sentence is 
amended by striking ‘‘, in accordance with this sub-
section, who owned the surface prior to May 2, 
1977, and’’. 
(18) Section 409 is amended—