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.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``True Cost of Coal Act of 2012''.

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 established in the Treasury 
of the United States a trust fund to be known as the `Coal Mitigation 
Trust Fund', consisting of such amounts as may be appropriated or 
credited to such fund as provided in this section or section 9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby 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 
extraction).
    ``(c) Expenditures.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, amounts in the Coal Mitigation Trust Fund shall be 
        available, as provided by appropriation Acts, to eligible 
        States for mitigation of the following in connection with the 
        transportation 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 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 offset required 
        expenditures.--Amounts made available under paragraph (1) shall 
        not be used directly or indirectly for any expense which any 
        producer 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 following new item:

``Sec. 9512. Coal Mitigation Trust Fund.''.

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 section 168(c) of 
        the Internal Revenue Code of 1986 is amended by striking the 
        last row and inserting the following:


 
 
----------------------------------------------------------------------------------------------------------------
``Any railroad grading, tunnel bore, or specified coal port  50 years''.
 property..................................................
----------------------------------------------------------------------------------------------------------------

            (2) Alternative depreciation system.--The table contained 
        in section 168(g)(2)(C) of such Code is amended by striking 
        ``or water utility property'' and inserting ``, water utility 
        property, or specified coal port property''.
    (b) Specified Coal Port Property.--Subsection (e) of section 168 of 
such Code is amended by adding at the end the following new paragraph:
            ``(9) Specified coal port property.--The term `specified 
        coal port property' means any property which is part of a port 
        (including any wharfs, stockyards, or conveyers) if--
                    ``(A) it is reasonably anticipated at the time that 
                such property is placed in service that such port will 
                be used for the export of coal, and
                    ``(B) such port (after such property and any 
                related property is placed in service) would have the 
                capacity to export more than 1,000,000 tons of coal 
                annually.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 5. COVERING COAL CARS.

    (a) Amendment.--Subchapter II of chapter 201 of title 49, United 
States Code, is amended by adding at the end the following new section:
``Sec. 20168. Covering coal cars.
    ``The Secretary of Transportation shall issue regulations to 
require all rail cars transporting coal to be covered or to incorporate 
a suitable alternative technology that ensures that coal and coal dust 
do not escape the rail car or are treated to significantly reduce or 
eliminate the release of coal dust or other particulate matter during 
transportation.''.
    (b) Table of Sections.--The table of sections for subchapter II of 
chapter 201 of title 49, United States Code, is amended by adding at 
the end the following:

``20168. Covering coal cars.''.

Summary: True Cost of Coal Act of 2012 - Amends the Internal Revenue Code to: (1) impose a $10 per ton excise tax on the extraction of coal; (2) establish in the Treasury the Coal Mitigation Trust Fund to hold revenues from such tax; and (3) extend to 50 years the recovery period, for depreciation purposes, for specified coal port property used for the export of coal.

Allows expenditures from the Coal Mitigation Trust Fund to assist states in mitigating noise, vibration, traffic delays, pollution and other threats to public health, and emergencies in connection with the transportation of coal by rail, and to provide worker adjustment assistance.

Directs the Secretary of Transportation (DOT) to issue regulations to require all rail cars transporting coal to be covered or to incorporate a suitable alternative technology to ensure that coal and coal dust do not escape during transportation.