I 
118TH CONGRESS 
2D SESSION 
H. R. 7940 
To amend the Surface Mining Control and Reclamation Act of 1977 to 
protect taxpayers from liability associated with the reclamation of surface 
coal mining operations, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 11, 2024 
Mr. CARTWRIGHT (for himself, Mrs. DINGELL, Mr. CLEAVER, Mr. GRIJALVA, 
Mr. HUFFMAN, Ms. JAYAPAL, Mr. NADLER, Mrs. NAPOLITANO, Ms. 
NORTON, Ms. OCASIO-CORTEZ, Ms. TLAIB, and Ms. LEE of Pennsyl-
vania) introduced the following bill; which was referred to the Committee 
on Natural Resources 
A BILL 
To amend the Surface Mining Control and Reclamation Act 
of 1977 to protect taxpayers from liability associated 
with the reclamation 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 of 2024’’. 
VerDate Sep 11 2014 
02:57 Apr 23, 2024
Jkt 049200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H7940.IH
H7940
kjohnson on DSK7ZCZBW3PROD with $$_JOB
SEC. 2. SURFACE COAL MINING BONDING. 
Section 509 of the Surface Mining Control and Rec-
lamation Act of 1977 (30 U.S.C. 1259) is amended— 
(1) by striking subsection (c) and inserting the 
following: 
‘‘(c) ALTERNATIVE BONDING SYSTEM.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the Secretary may approve as part of a State or 
Federal program an alternative system that will— 
‘‘(A) achieve the objectives and purposes of 
the bonding program pursuant to this section; 
and 
‘‘(B) result in no greater risk of financial 
liability to the Federal Government or a State 
government than the bonding program under 
this section. 
‘‘(2) REPORT REQUIRED.—The Secretary may 
only approve an alternative bonding system for a 
State under paragraph (1) if such State submits a 
report to the Secretary that provides the following 
information: 
‘‘(A) A history of bond forfeitures and rec-
lamation costs in such State in the 7-year pe-
riod ending on the date on which the report is 
submitted, including— 
VerDate Sep 11 2014 
02:57 Apr 23, 2024
Jkt 049200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H7940.IH
H7940
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(i) in the case of any bond forfeiture, 
whether the money collected to make up 
the difference between the bond and rec-
lamation cost was sufficient to complete 
the reclamation as specified in the permit; 
and 
‘‘(ii) an engineer’s estimate of the cost 
to complete reclamation of mines for which 
such State has not yet determined the cost 
of reclamation. 
‘‘(B) A 5-year forecast proving the pro-
posed bond pool will be financially sound based 
on— 
‘‘(i) the proposed annual or per ton 
fees paid by mining operators; 
‘‘(ii) the past and anticipated financial 
performance of participating mining opera-
tors; 
‘‘(iii) market projections for the 5- 
year period beginning on the date of the 
submission of such report; 
‘‘(iv) the anticipated number of min-
ing operators participating in each year; 
and 
VerDate Sep 11 2014 
02:57 Apr 23, 2024
Jkt 049200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H7940.IH
H7940
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(v) anticipated reclamation costs, in-
cluding known reclamation costs and an 
engineer’s estimate of costs not yet 
known.’’; and 
(2) by adding at the end the following: 
‘‘(f) SELF-BONDING.— 
‘‘(1) FEDERAL PROGRAMS.— 
‘‘(A) IN GENERAL.—Effective on the date 
of enactment of this subsection, the Secretary— 
‘‘(i) may not accept the bond of the 
applicant itself (referred to in this sub-
section as a ‘self-bond’); and 
‘‘(ii) may accept a separate surety or 
collateral bond, consistent with subsection 
(b). 
‘‘(B) EXISTING
SELF-BONDS.—For coal 
mining operations covered by a self-bond ac-
cepted by the Secretary prior to the date of en-
actment of this subsection, the permittee shall 
replace the self-bond with another form of bond 
acceptable to the Secretary under this section 
by not later than the earlier of— 
‘‘(i) the date of renewal of the permit 
under section 506(d); and 
VerDate Sep 11 2014 
02:57 Apr 23, 2024
Jkt 049200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H7940.IH
H7940
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(ii) the date of any major permit 
modification under section 506. 
‘‘(2) STATE
PROGRAMS.—Not later than 90 
days after the date of enactment of this subsection, 
the Secretary shall notify all State regulatory au-
thorities that allow applicants to self-bond that the 
approved regulatory programs of the State regu-
latory authority must be amended— 
‘‘(A) to remove the authority for applicants 
to self-bond; and 
‘‘(B) to require coal mining operations cov-
ered by a self-bond accepted by the State regu-
latory authority prior to the date of enactment 
of this subsection to replace the self-bond with 
another form of bond acceptable under this sec-
tion 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. 
‘‘(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 
VerDate Sep 11 2014 
02:57 Apr 23, 2024
Jkt 049200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H7940.IH
H7940
kjohnson on DSK7ZCZBW3PROD with $$_JOB
the risk of financial liability to the Federal Govern-
ment or a State government, including rules regard-
ing— 
‘‘(A) the maximum quantity of corporate 
surety bonds issued by any 1 corporate surety 
as a percentage of the total quantity of coal 
mine reclamation bonds in any 1 State; 
‘‘(B) the minimum percentage of surety 
bonds unrelated to activities regulated pursuant 
to this Act required to reinsure corporate surety 
bonds; 
‘‘(C) the minimum collateralization re-
quired for corporate surety bonds; and 
‘‘(D) the minimum amount of cash assets 
required to be held by a corporate surety as a 
percentage of coal mine reclamation bonds 
issued by the corporate surety. 
‘‘(2) EXISTING CORPORATE BONDS.—Corporate 
surety bonds in existence on the date of enactment 
of this subsection must be modified or replaced as 
necessary by not later than 1 year after the date on 
which the rule is issued under paragraph (1). 
‘‘(h) COLLATERAL REQUIREMENTS.— 
‘‘(1) REAL PROPERTY.—Real property posted 
as collateral for a bond may not include— 
VerDate Sep 11 2014 
02:57 Apr 23, 2024
Jkt 049200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H7940.IH
H7940
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(A) coal; 
‘‘(B) a coal mine; 
‘‘(C) land that includes a coal mine; 
‘‘(D) land that is located above a coal 
mine; 
‘‘(E) a coal processing facility; 
‘‘(F) a coal waste disposal site; 
‘‘(G) coal mining equipment unlikely to re-
tain salvage or resale value; or 
‘‘(H) any other property determined by the 
Secretary. 
‘‘(2) RE-EVALUATION.— 
‘‘(A) The Secretary shall re-evaluate the 
value of any nonliquid collateral, as that term 
is defined in subparagraph (B), 3 years after 
such collateral is posted for a bond and every 
three years thereafter. 
‘‘(B) In this paragraph, ‘nonliquid collat-
eral’ has the meaning given to it by the Sec-
retary, except that such term— 
‘‘(i) includes the first lien interests in 
real estate and equipment; and 
‘‘(ii) does not include— 
‘‘(I) cash; 
‘‘(II) letters of credit; 
VerDate Sep 11 2014 
02:57 Apr 23, 2024
Jkt 049200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H7940.IH
H7940
kjohnson on DSK7ZCZBW3PROD with $$_JOB
‘‘(III) certificates of deposit; 
‘‘(IV) Federal, State, or munic-
ipal bonds; and 
‘‘(V) investment grade securities. 
‘‘(i) EXECUTIVE COMPENSATION.—The Secretary 
may require the inclusion of executive compensation, in-
cluding salaries and bonuses of officers and executives, of 
an applicant under this section, and any affiliated com-
pany, as collateral for a bond under this section.’’. 
Æ 
VerDate Sep 11 2014 
02:57 Apr 23, 2024
Jkt 049200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6301
E:\BILLS\H7940.IH
H7940
kjohnson on DSK7ZCZBW3PROD with $$_JOB