Coal Royalty Fairness and Communities Investment Act of 2021
Bill: H.R.4799 | Sponsor: Rep. Cartwright, Matt (D-PA)
Policy area: Energy

Summary:
Coal Royalty Fairness and Communities Investment Act of 2021
This bill addresses coal royalties and the economic vitality of coal communities, including by (1)	requiring the coal lease royalty to be at least 12.5% of the assessment value of federal coal (currently, 12.5% of the value as defined by regulation); (2)	establishing the Coal Area Economic Revitalization Fund; (3)	providing grant assistance to impacted communities for economic and workforce development programs; (4)	providing financial assistance for the design, construction, and operation of large-scale projects to capture and store carbon dioxide emissions from industrial sources; and (5)	providing technical assistance and educational outreach to impacted communities.

To amend the Mineral Leasing Act to make certain improvements in the 
        laws relating to coal royalties, and for other purposes.

    Be it enacted by the Senate and House of Representatives 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 2021''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

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. Establishment of Fund.
Sec. 202. Federal economic and workforce development assistance 
                            programs.
Sec. 203. Carbon capture and sequestration.
Sec. 204. Additional Federal agency participation.
Sec. 205. Definitions.

      TITLE I--VALUATION OF FEDERAL 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 sentence; and
            (2) by adding at the end the following:
    ``(d) Royalties.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Assessment value.--
                            ``(i) In general.--The term `assessment 
                        value', with respect to Federal coal, means the 
                        gross proceeds accruing to the lessee or the 
                        affiliate of the lessee's first arm's length 
                        contract for the sale of Federal coal.
                            ``(ii) Exception.--If the Secretary cannot 
                        identify any arm's length contract for the sale 
                        of Federal coal, then the assessment value 
                        means a price imputed by the Secretary based on 
                        the coal price index.
                    ``(B) Arm's length contract.--The term `arm's 
                length contract' means a contract, agreement, or 
                transaction for the sale of Federal coal that is 
                between parties that are independent of each other and 
                that are not affiliates.
                    ``(C) Affiliate.--The term `affiliate', with 
                respect to a lessee, means a party that controls, is 
                controlled by, or is under common control with the 
                lessee, and includes a parent or subsidiary company.
                    ``(D) Coal price index.--The term `coal price 
                index' means the schedule of average market prices of 
                Federal coal (in United States dollars) at final sale, 
                based on the quality and type of the Federal coal, as 
                determined by the Secretary, in consultation with the 
                Administrator of the Energy Information Administration.
                    ``(E) Secretary.--The term `Secretary' means the 
                Secretary of the Interior.
            ``(2) Payment rate.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a lease shall require payment of a 
                royalty in such amount as the Secretary shall 
                determine, which shall not be less than 12.5 percent of 
                the assessment value of Federal coal.
                    ``(B) Exception.--In the case of Federal coal 
                recovered by an underground mining operation, the 
                Secretary may establish such lower royalty payment rate 
                as the Secretary determines to be appropriate in lieu 
                of the royalty payment rate described in subparagraph 
                (A).
            ``(3) Administration.--
                    ``(A) Reporting.--The Secretary shall ensure that 
                any purchaser of Federal coal shall annually submit to 
                the Secretary a report containing such information as 
                the Secretary determines to be necessary to carry out 
                this subsection.
                    ``(B) Audits.--To carry out this subsection, the 
                Secretary may examine the records of any person engaged 
                in the purchase, sale, transportation, or marketing of 
                Federal coal.
            ``(4) Coal price index.--
                    ``(A) In general.--The Secretary shall compile in a 
                coal price index the assessment values of coal by type 
                and quality of coal.
                    ``(B) Publication.--Not less frequently than 
                quarterly, the Secretary shall publish in the Federal 
                Register and on a public website 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 information; and
                            ``(iii) any other information the Secretary 
                        considers appropriate to ensure transparency.
                    ``(C) Other information.--If a person believes that 
                the coal price index does not accurately reflect the 
                assessment value of the coal produced by the person, 
                the person may petition the Secretary to use 
                information supplied by the person in lieu of the coal 
                price index for the purpose of determining the 
                assessment value of the coal produced by such person, 
                including all information the Secretary requires to 
                accurately determine the assessment value and audit the 
                records of the person.
            ``(5) Reviews.--
                    ``(A) In general.--To ensure a transparent, fair, 
                and efficient administration of the Federal coal 
                program, and to ensure that citizens of the United 
                States receive a fair return on Federal coal, not later 
                than 3 years after the date of the enactment of this 
                subsection and every 3 years thereafter during the 15-
                year period beginning on such date, the Comptroller 
                General of the United States shall submit to Congress a 
                report containing the results of a review conducted by 
                the Comptroller General of the Federal coal program, 
                including the administration of this subsection.
                    ``(B) Consultation.--In conducting a review 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.--In conducting a review under 
                this paragraph, the Comptroller General shall review--
                            ``(i) the total volume of coal production 
                        from Federal land;
                            ``(ii) the total volume of remaining coal 
                        reserves on Federal land;
                            ``(iii) the total amount of 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 General.
            ``(6) Study.--The Secretary shall seek to enter into an 
        agreement with the National Academy of Sciences to conduct a 
        study to determine the most equitable method for valuation of 
        coal produced on Federal lands for purposes of Federal coal 
        leases. Not later than 18 months after the date of the 
        enactment of this subsection, and every five years thereafter, 
        the Secretary shall submit to Congress a report containing the 
        findings, of such study.''.

      TITLE II--PROGRAMS TO REINVEST IN COAL-IMPACTED COMMUNITIES

SEC. 201. ESTABLISHMENT OF FUND.

    (a) Establishment.--There is established in the Treasury of the 
United States a separate account, to be administered by the Secretary 
(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 Coal Area Economic Revitalization Fund $75,000,000.
    (c) Availability of Amounts.--
            (1) In general.--Subject to subsection (d) and 
        notwithstanding any other provision of law, for each fiscal 
        year, of the amounts deposited in the Coal Area Economic 
        Revitalization Fund under subsection (b), there shall be made 
        available, without further appropriation, the following 
        amounts:
                    (A) $70,000,000 to the Secretary to provide grant 
                assistance under covered programs for eligible 
                projects, in accordance with section 202.
                    (B) $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 203.
            (2) Special rule.--If, with respect to a fiscal year, the 
        amounts in the Coal Area Economic Revitalization Fund are 
        insufficient to carry out paragraph (1), there shall be made 
        available, without further appropriation, the following:
                    (A) To the Secretary for the purposes described in 
                paragraph (1)(A), 93.333 percent of the amounts 
                available in the Fund.
                    (B) To the Secretary of Energy for the purposes 
                described in paragraph (1)(B), 6.666 percent of the 
                amounts available in the fund.
    (d) Administrative Expenses.--A participating agency that receives 
funds under subsection (c) 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 deposited in the Coal Area 
Economic Revitalization Fund shall remain available without fiscal year 
limitation until expended.

SEC. 202. FEDERAL ECONOMIC AND WORKFORCE DEVELOPMENT ASSISTANCE 
              PROGRAMS.

    (a) In General.--The Secretary, acting through the Economic 
Development Administration, shall use the amounts made available under 
section 201(c)(1) to provide grant assistance under covered programs 
described in subsection (c) for eligible projects described in 
subsection (d).
    (b) Allocation of Funds for Covered Programs.--
            (1) In general.--The Secretary shall--
                    (A) allocate amounts made available to carry out 
                this section among the covered programs in accordance 
                with the criteria described in paragraph (2); and
                    (B) not later than 30 days after allocations are 
                determined under subparagraph (A), provide public 
                notice of the availability of grant assistance under 
                this section through a Federal Funding Opportunity 
                announcement.
            (2) Allocation criteria.--Not later than 120 days after the 
        date of enactment of this Act, the Secretary shall establish 
        and publish criteria for the allocation of amounts made 
        available to carry out this section among the covered programs.
    (c) Covered Programs.--
            (1) In general.--On allocation by the Secretary of amounts 
        from the Coal Area Economic Revitalization Fund for a covered 
        program under this section, the head of the applicable 
        participating agency shall manage grant selection (including 
        eligibility requirements in addition to the eligibility 
        requirements listed in subsection (d)), awards, and execution 
        of projects with respect to such amounts.
            (2) Terms and conditions.--Except as otherwise provided in 
        this section, projects that receive 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.
    (d) Eligible Projects.--
            (1) Project purposes.--A project shall be eligible 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, evaluate needs and 
                resources, or develop comprehensive economic 
                development strategic plans;
                    (B) to undergo in-depth labor market analysis and 
                workforce development and dislocated worker planning 
                associated with the provision of training and 
                employment services;
                    (C) to implement linked economic and workforce 
                development strategies to promote local and regional 
                economic growth;
                    (D) to accelerate job creation by leveraging local 
                assets;
                    (E) to train and place workers in family-
                supporting, high-demand jobs (including registered 
                apprenticeship and other on-the-job training models);
                    (F) to create linkages between community 
                stakeholders, economic development organization, public 
                and private entities, and the labor force that drive 
                local and regional economic growth; or
                    (G) to carry out other purposes approved by the 
                Secretary.
            (2) Priority.--In selecting projects to receive assistance 
        under this section, the head of a participating agency shall--
                    (A) give priority to project applications that 
                establish a clear linkage between the proposed project 
                and the means by which the project will result in local 
                and regional economic growth and diversification, job 
                creation, or job training and reemployment for 
                dislocated workers, without regard to any formula used 
                by a participating agency to disburse other funds; and
                    (B) consult directly with impacted communities to 
                determine the greatest needs of the impacted 
                communities and give priority to projects that address 
                those needs.
            (3) Specific activities and costs to be considered.--In 
        providing assistance under this section for projects for 
        economic diversification, the head of a participating agency 
        shall give consideration for priority, at a minimum, to the 
        following activities and costs:
                    (A) Analysis activities that build from strategic 
                economic development plans, including--
                            (i) economic and workforce data collection; 
                        and
                            (ii) supply chain and industry cluster 
                        analysis.
                    (B) Outreach and targeted assistance to economic 
                development organizations, unions, workers, and other 
                stakeholders.
                    (C) Remediation and redevelopment of coal economy 
                sites, as appropriate.
                    (D) Provision of business planning and market 
                exploration services.
                    (E) Development of business incubator programs.
                    (F) Facilitation of access to private capital 
                investment and capacity building to effectively use 
                capital investment.
                    (G) Promotion of exports from entities in the 
                impacted area.
                    (H) Workforce training and dislocated worker 
                services and supports for impacted workers.
                    (I) Costs associated with registered apprenticeship 
                and on-the-job training models.
                    (J) Temporary or short-term relocation or commuting 
                costs for available jobs in other parts of the 
                applicable State or region.
                    (K) Staffing, operating, and administrative costs 
                for the recipient organization.
                    (L) Comprehensive strategies that--
                            (i) integrate all of the activities and 
                        costs described in subparagraphs (A) through 
                        (K); and
                            (ii) leverage other investments from the 
                        applicable participating agency and other 
                        Federal departments and agencies.
    (e) Coordination of Activities.--The Secretary shall--
            (1) provide a single staff point of Federal contact (with 
        staffing assistance from other participating agencies, as 
        needed) for grants awarded under this section; and
            (2) coordinate cross-agency activities at the regional 
        level that direct additional Federal resources to impacted 
        communities.

SEC. 203. CARBON CAPTURE AND SEQUESTRATION.

    The Secretary of Energy shall use the amounts made available under 
section 201(c)(2) to provide financial assistance for the design, 
construction, and operation of large-scale projects to capture and 
store carbon dioxide emissions from industrial sources.

SEC. 204. ADDITIONAL FEDERAL AGENCY PARTICIPATION.

    (a) In General.--The Federal departments and agencies described in 
subsection (b) shall provide to impacted communities technical 
assistance and educational outreach to fund partnerships, in 
coordination with available resources.
    (b) Description of Departments and Agencies.--The Federal 
departments and agencies referred to in subsection (a) are--
            (1) the Rural Business-Cooperative Service of the 
        Department of Agriculture;
            (2) the Office of Solid Waste and Emergency Response of the 
        Environmental Protection Agency;
            (3) the Department of Energy;
            (4) the Community Development Financial Institutions Fund 
        of the Department of the Treasury;
            (5) SelectUSA and the National Institute of Standards and 
        Technology--Manufacturing Extension Partnerships of the 
        Department of Commerce;
            (6) the Corporation for National and Community Service; and
            (7) the Office of Surface Mining Reclamation and 
        Enforcement of the Department of the Interior.

SEC. 205. DEFINITIONS.

    In this title:
            (1) Coal economy.--The term ``coal economy'' means the 
        complete supply chain of coal reliant 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 Partnership Planning program 
                of the Economic Development 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 Demonstration 
                Projects program of the Appalachian Regional 
                Commission.
            (3) Impacted community.--The term ``impacted community'' 
        means a community or Indian tribe (as such term is defined in 
        section 4 of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450b)) in the United States that has 
        been negatively impacted as a result of changes in the coal 
        economy, including a negative impact on its economy, 
        environment, employment, retirement benefits, infrastructure, 
        public health, or education.
            (4) Participating agency.--The term ``participating 
        agency'' means a Federal agency that has primary authority over 
        a covered program.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
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