I 
113TH CONGRESS 
1ST SESSION H. R. 2396 
To amend the Internal Revenue Code of 1986 to establish the Coal Mitigation 
Trust Fund funded by the imposition of a tax on the extraction of 
coal, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 17, 2013 
Mr. MCDERMOTT introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on 
Transportation and Infrastructure, for a period to be subsequently deter-
mined 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 Internal Revenue Code of 1986 to establish 
the Coal Mitigation Trust Fund funded by the imposition 
of a tax on the extraction of coal, 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 ‘‘True Cost of Coal Act 
of 2013’’. 
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SEC. 2. COAL MITIGATION TRUST FUND. 
(a) IN GENERAL.—Subchapter A of chapter 98 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new section: 
‘‘SEC. 9512. COAL MITIGATION TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
to be known as the ‘Coal Mitigation Trust Fund’, con-
sisting of such amounts as may be appropriated or cred-
ited to such fund as provided in this section or section 
9602(b). 
‘‘(b) TRANSFERS TO TRUST FUND.—There are here-
by appropriated to the Coal Mitigation Trust Fund 
amounts equivalent to the taxes received in the Treasury 
under section 4122 (relating to excise tax on coal extrac-
tion). 
‘‘(c) EXPENDITURES.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, amounts in the Coal Mitiga-
tion Trust Fund shall be available, as provided by 
appropriation Acts, to eligible States for mitigation 
of the following in connection with the transpor-
tation of coal by rail: noise, vibration, traffic delays, 
pollution and other threats to public health, and 
emergencies. Such amounts shall also be so available 
for related worker adjustment assistance. Any 
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amounts made available to an eligible State under 
this paragraph shall remain available until expended 
for a purpose described in this paragraph. 
‘‘(2) 
ALLOCATION
AMONG
STATES.—Any 
amounts made available under paragraph (1) shall 
be made available to the eligible States in an amount 
which bears the same ratio to the population of such 
State as the aggregate amount made available bears 
to the aggregate populations of all the eligible 
States. 
‘‘(3) ELIGIBLE STATES.—For purposes of this 
subsection, the term ‘eligible State’ means any State 
in which not less than 2,500,000 tons of coal per 
year is transported by rail. 
‘‘(4) AMOUNTS MADE AVAILABLE NOT TO OFF-
SET
REQUIRED
EXPENDITURES.—Amounts made 
available under paragraph (1) shall not be used di-
rectly or indirectly for any expense which any pro-
ducer or transporter of coal is legally required to 
provide.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 9512. Coal Mitigation Trust Fund.’’. 
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SEC. 3. EXCISE TAX ON COAL EXTRACTION. 
(a) IN GENERAL.—Subchapter B of chapter 32 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new section: 
‘‘SEC. 4122. EXCISE TAX ON COAL EXTRACTION. 
‘‘(a) IN GENERAL.—There is hereby imposed on the 
extraction of coal in the United States a tax equal to $10 
per ton. 
‘‘(b) CROSS REFERENCE.—For definitions of ‘United 
States’ and ‘ton’, see section 4121(c).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter B of chapter 32 of such Code is amended 
by adding at the end the following new item: 
‘‘Sec. 4122. Excise tax on coal extraction.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to coal extracted after the date 
of the enactment of this Act. 
SEC. 4. EXTENSION OF RECOVERY PERIOD FOR SPECIFIED 
COAL PORT PROPERTY. 
(a) 50-YEAR RECOVERY PERIOD
FOR SPECIFIED 
COAL PORTS.— 
(1) IN GENERAL.—The table contained in sec-
tion 168(c) of the Internal Revenue Code of 1986 is 
amended by striking the last row and inserting the 
following: 
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