I 
114TH CONGRESS 
1ST SESSION H. R. 3303 
To amend the Mineral Leasing Act to improve coal royalties, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 29, 2015 
Mr. CARTWRIGHT (for himself, Mr. RYAN of Ohio, Mr. LOWENTHAL, and Mr. 
GRIJALVA) introduced the following bill; which was referred to the Com-
mittee on Natural Resources, and in addition to the Committees on En-
ergy and Commerce, Transportation and Infrastructure, and Financial 
Services, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To amend the Mineral Leasing Act to improve 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 2015’’. 
(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. Definitions. 
Sec. 202. Establishment of Fund. 
Sec. 203. Federal economic and workforce development assistance programs. 
Sec. 204. Carbon capture and sequestration. 
Sec. 205. Additional Federal agency participation. 
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— 
‘‘(I) the price of Federal coal 
paid by the purchaser at final sale; or 
‘‘(II) a price imputed by the Sec-
retary based on the coal price index. 
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‘‘(ii) EXCLUSIONS.—The term ‘assess-
ment value’ does not include, as deter-
mined and to the extent determined to be 
appropriate by the Secretary— 
‘‘(I) transportation costs, as de-
termined in accordance with the 
transportation cost index; or 
‘‘(II) the cost of coal washing. 
‘‘(B) BROKER.—The term ‘broker’ means 
a person that resells Federal coal. 
‘‘(C) 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. 
‘‘(D) PURCHASER.— 
‘‘(i) IN
GENERAL.—The term ‘pur-
chaser’ means a person that— 
‘‘(I) purchases or contracts to 
purchase Federal coal— 
‘‘(aa) directly from a coal 
mine operator; or 
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‘‘(bb) 
indirectly 
from 
a 
broker; and 
‘‘(II) uses that Federal coal in 
any industrial or energy conversion 
process. 
‘‘(ii) EXCLUSION.—The term ‘pur-
chaser’ does not include— 
‘‘(I) a coal broker; or 
‘‘(II) any other third-party inter-
mediary. 
‘‘(E) QUALITY.—The term ‘quality’, with 
respect to Federal coal, means the quality of 
Federal coal measured in British thermal units, 
sulfur, moisture, and other criteria determined 
to be appropriate by the Secretary. 
‘‘(F) SECRETARY.—The term ‘Secretary’ 
means the Secretary of the Interior. 
‘‘(G) TRANSPORTATION COST INDEX.—The 
term ‘transportation cost index’ means the 
transportation cost index established under 
paragraph (7). 
‘‘(H) TYPE.—The term ‘type’, with respect 
to Federal coal, means a general category of 
coal, such as metallurgical coal or steam coal, 
as determined by the Secretary. 
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‘‘(B) AUDITS.—To carry out this sub-
section, the Secretary may examine the records 
of any person engaged in the purchase, sale, 
transportation, or marketing of Federal coal. 
‘‘(5) COAL PRICE INDEX.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
compile the assessment values of coal by type 
and quality of coal in a coal price index. 
‘‘(B) PUBLICATION.—Not less frequently 
than quarterly, the Secretary shall publish the 
coal price index, along with a methodological 
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 
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by the person in lieu of the coal price index, in-
cluding all information the Secretary requires 
to accurately determine the assessment value 
and audit the records of the person. 
‘‘(6) EXPORTS.— 
‘‘(A) IN GENERAL.—In assessing royalties 
for the export of Federal coal under this sub-
section, the Secretary may obtain from the ex-
porter of the Federal coal such information as 
the Secretary determines to be necessary to 
carry out this subsection. 
‘‘(B) ASSESSMENT VALUE OF EXPORTED 
COAL.—Subject to subparagraph (C), in deter-
mining the assessment value of Federal coal 
that is exported, the Secretary shall— 
‘‘(i) use the price of coal free on board 
the marine vessel used to transport the 
coal overseas at the port of origin; and 
‘‘(ii) limit any deductions that apply 
to the assessment value of the Federal coal 
to costs incurred prior to being free on-
board the vessel. 
‘‘(C) UNCERTAIN EXPORT PRICE.—If the 
Secretary cannot determine the value of ex-
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ported coal in accordance with subparagraph 
(B), the Secretary shall— 
‘‘(i) assess royalties under this sub-
section based on the coal price index for 
coal of a similar quantity and type; and 
‘‘(ii) limit any deductions that apply 
to the assessment value of the Federal coal 
to costs incurred within the contiguous 
United States. 
‘‘(7) TRANSPORTATION COST INDEX.— 
‘‘(A) IN GENERAL.—Subject to the other 
provisions of this paragraph, the Secretary, in 
consultation with the Secretary of Energy and 
the Secretary of Transportation (in consultation 
with the Surface Transportation Board and 
others), shall— 
‘‘(i) compile in a transportation cost 
index the average costs of transporting 
coal; and 
‘‘(ii) determine the amount of any 
transportation cost deduction under this 
subsection, on the basis of the transpor-
tation cost index. 
‘‘(B) 
UNIT
OF
MEASUREMENT.—The 
transportation cost index shall be based on the 
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average transportation costs per ton of coal or 
another unit of measurement determined by the 
Secretary. 
‘‘(C) DIFFERENCES
IN
TRANSPORTATION 
COSTS.—The transportation cost index shall 
take into consideration differences in the costs 
of transportation, as determined by the Sec-
retary, based on— 
‘‘(i) the mode of transportation; 
‘‘(ii) the geographic region, and 
‘‘(iii) other characteristics of the 
transportation industry that the Secretary 
considers to be necessary to calculate a 
fair, transparent, and accurate transpor-
tation cost index. 
‘‘(D) EXCLUSIONS.—The transportation 
cost index shall not include costs associated 
with, as determined by the Secretary— 
‘‘(i) take-or-pay contract penalties; 
‘‘(ii) liquidated damages; 
‘‘(iii) the speculative aspects of trans-
portation transactions; or 
‘‘(iv) any other costs that are not di-
rectly associated with moving Federal coal 
from 1 location to another location. 
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‘‘(E) PUBLICATION.—Not less than twice 
annually, the Secretary shall publish the trans-
portation cost index, along with a methodo-
logical description, including— 
‘‘(i) the method of calculation; 
‘‘(ii) the data used to calculate the 
transportation cost index, in an aggregate 
manner that does not reveal proprietary in-
formation; and 
‘‘(iii) any other information the Sec-
retary considers to be appropriate to en-
sure transparency. 
‘‘(F) OTHER INFORMATION.—If a person 
believes that the transportation cost index does 
not accurately reflect the transportation costs 
of the person, the person may petition the Sec-
retary to use information supplied by the per-
son (other than costs descried in subparagraph 
(D)) in lieu of the transportation cost index, in-
cluding all information the Secretary requires 
to accurately determine cost and audit the 
records of the person. 
‘‘(8) REVIEWS.— 
‘‘(A) IN
GENERAL.—To ensure a trans-
parent, fair, and efficient administration of the 
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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 enactment of this subsection and every 
3 years thereafter during the 15-year period be-
ginning on that date of enactment, the Comp-
troller General of the United States shall sub-
mit to Congress a report that describes a review 
of the Federal coal program, including the ad-
ministration 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; 
‘‘(iii) the Secretary of Transportation; 
and 
‘‘(iv) the Secretary of Energy. 
‘‘(C) INCLUSIONS.—A review under this 
paragraph shall include a review of— 
‘‘(i) the total volume of coal produc-
tion from Federal land; 
‘‘(ii) the total volume of remaining 
coal reserves on Federal land; 
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‘‘(iii) the total 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 
‘‘(ii) categorized by State for at least 
the top 10 Federal coal-producing States, 
as determined by the Comptroller Gen-
eral.’’. 
TITLE II—PROGRAMS TO REIN-
VEST 
IN 
COAL-IMPACTED 
COMMUNITIES 
SEC. 201. DEFINITIONS. 
In this title: 
(1) COAL
ECONOMY.—The term ‘‘coal econ-
omy’’ means the complete supply chain of coal reli-
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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-
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) FUND.—The term ‘‘Fund’’ means the Coal 
Area Economic Revitalization Fund established by 
section 202(a). 
(4) IMPACTED
COMMUNITY.—The term ‘‘im-
pacted community’’ means a community or Indian 
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tribe (as defined in section 4 of the Indian Self-De-
termination and Education Assistance Act (25 
U.S.C. 450b)) in the United States that has been 
negatively impacted by changes in the coal economy. 
(5) PARTICIPATING AGENCY.—The term ‘‘par-
ticipating agency’’ means a Federal agency that has 
primary authority over a covered program. 
SEC. 202. ESTABLISHMENT OF FUND. 
(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States a separate account, to be 
administered by the Secretary of Commerce (acting 
through the Economic 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 
the revenues are available, there shall be deposited in the 
Fund $105,000,000. 
(c) AVAILABILITY OF AMOUNTS.—Subject to sub-
section (d) and notwithstanding any other provision of 
law, for each fiscal year, of the amounts deposited in the 
Fund under subsection (b), there shall be made available, 
without further appropriation, the following or a pro rata 
amount: 
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(1) $100,000,000 to the Secretary of Commerce 
to provide grant assistance under covered programs, 
in accordance with section 203. 
(2) $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 section 204. 
(d) ADMINISTRATIVE EXPENSES.—A participating 
agency 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 Fund shall be available without fiscal year limi-
tation. 
SEC. 203. FEDERAL ECONOMIC AND WORKFORCE DEVELOP-
MENT ASSISTANCE PROGRAMS. 
(a) IN GENERAL.—The Secretary of Commerce, act-
ing through the Economic Development Administration 
(referred to in this section as the ‘‘Secretary’’), shall use 
the amounts made available to carry out this section under 
section 202(c)(1) to provide grant assistance under cov-
ered programs for eligible projects described in subsection 
(e). 
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(b) PURPOSE.—The purpose of this section is to pro-
vide funding to impacted communities by targeting Fed-
eral economic and workforce development assistance pro-
grams that seek— 
(1) to diversify regional, State, tribal, and local 
economies; 
(2) to create jobs in new and existing indus-
tries; 
(3) to attract new sources of job-creating in-
vestment; and 
(4) to provide a range of workforce services and 
skills training, including work-based learning oppor-
tunities, resulting in industry-recognized credentials 
for high-quality, in-demand jobs. 
(c) 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) provide public notice of the availability 
of grant assistance under this section through 
a Federal Funding Opportunity announcement. 
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(2) ALLOCATION
CRITERIA.—The Secretary 
shall establish and publish criteria for the allocation 
of funds to carry out this section among the covered 
programs in a manner that carries out the purpose 
described in subsection (b), as determined by the 
Secretary. 
(d) COVERED PROGRAMS.— 
(1) IN GENERAL.—On allocation by the Sec-
retary of amounts from the Fund for a covered pro-
gram under this section, the head of the applicable 
participating agency shall manage grant selection 
(including eligibility requirements), awards, and exe-
cution of projects with respect to those amounts. 
(2) TERMS AND CONDITIONS.—Except as other-
wise provided in this section, projects receiving grant 
assistance under this section shall be subject to the 
eligibility rules, permitted activities, and reporting 
requirements of the covered program under which 
the grant is made. 
(e) 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-
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