Title: COAL Reform Act of 2017
Policy area: Energy

Summary:
Coal Oversight and Leasing Reform Act of 2017or the COAL Reform Act of 2017
This bill amends the Mineral Leasing Act to revise the U.S. coal leasing program.
The bill repeals the requirement that the Department of the Interior offer at least 50% of total acreage for coal leasing in any one-year under a deferred bonus payment system.
A proposed lease sale shall not be held until the Bureau of Land Management (BLM)	determines, and includes in a formal appraisal report, the fair market value of the coal to be extracted.	Interior shall make certain data available to the public, including the BLM appraisal reports and information on lease sales.
Coal lease modifications shall not result in revenue reduction and may not exceed 160 acres.
Interior shall prepare, periodically revise, and maintain a coal leasing program consisting of a schedule of proposed lease sales indicating the size, timing, and location of leasing activity that will best meet national needs for the five-year period following approval of the program.	The bill revises the conditions of a coal lease, including lease terms, rental rates, and royalties.
The BLM shall promulgate regulations for inspections and enforcement of coal operations, including oversight of state inspection and enforcement programs. The BLM may also assess civil penalties for noncompliance.
There shall be a moratorium on new coal lease sales until this bill is implemented by Interior.


[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 737 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                 S. 737

To amend the Mineral Leasing Act to improve coal leasing, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 27, 2017

  Mr. Markey introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
To amend the Mineral Leasing Act to improve coal leasing, 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 Oversight and 
Leasing Reform Act of 2017'' or the ``COAL Reform Act of 2017''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Deferred bonus payments.
Sec. 3. Confidentiality requirements for consultants.
Sec. 4. Exploration data.
Sec. 5. Fair market value.
Sec. 6. Public availability data.
Sec. 7. Lease modifications.
Sec. 8. Findings necessary for coal lease modifications.
Sec. 9. Size of coal leasing modifications.
Sec. 10. Coal leasing program.
Sec. 11. Rental rates.
Sec. 12. Primary term of lease.
Sec. 13. Minimum value.
Sec. 14. Inspection and enforcement.
Sec. 15. Civil penalties.
Sec. 16. Moratorium on new coal lease sales pending implementation.

SEC. 2. DEFERRED BONUS PAYMENTS.

    Section 2(a) of the Mineral Leasing Act (30 U.S.C. 201(a)) is 
amended--
            (1) in paragraph (1), by striking the second and third 
        sentences; and
            (2) by striking paragraphs (4) and (5).

SEC. 3. CONFIDENTIALITY REQUIREMENTS FOR CONSULTANTS.

    Section 2(a) of the Mineral Leasing Act (30 U.S.C. 201(a)) (as 
amended by section 2(2)) is amended by adding at the end the 
following:--
            ``(4) Confidentiality requirements for consultants.--If the 
        Secretary uses an independent consultant in evaluating a lease 
        sale, the independent consultant shall be subject to a 
        nondisclosure agreement and any other confidentiality 
        requirements the Secretary determines necessary.''.

SEC. 4. EXPLORATION DATA.

    Section 2(b)(3) of the Mineral Leasing Act (30 U.S.C. 202(b)(3)) is 
amended by adding at the end the following: ``Subject to applicable 
penalties for submitting false data, the licensee shall certify the 
accuracy of the data submitted under this paragraph. The Secretary 
shall consider whether to independently verify the data submitted under 
this paragraph. The Secretary shall conduct and document any 
inspections of exploration activities conducted under this section.''.

SEC. 5. FAIR MARKET VALUE.

    Section 2 of the Mineral Leasing Act is amended by inserting after 
subsection (d) (30 U.S.C. 202a) the following:
    ``(e) Fair Market Value.--
            ``(1) In general.--A proposed lease sale shall not be held 
        under this section until the date on which the Secretary of the 
        Interior (acting through the Director of the Bureau of Land 
        Management) (referred to in this subsection as the 
        `Secretary'), in consultation with the applicable Bureau of 
        Land Management field office with jurisdiction over the leasing 
        tract subject to the proposed lease sale and the Office of 
        Valuation Services of the Department of the Interior, makes a 
        determination with respect to the fair market value of the coal 
        to be extracted under the proposed lease.
            ``(2) Considerations and requirements.--In making a 
        determination of fair market value under paragraph (1), the 
        Secretary--
                    ``(A)(i) shall account for the export potential of 
                the coal to be extracted under the proposed lease, 
                including--
                            ``(I) conducting an analysis of whether the 
                        coal extracted under the proposed lease would 
                        be exported, the potential export markets for 
                        the coal, and the price at which the coal could 
                        be sold in export markets; and
                            ``(II) providing in the appraisal report 
                        under paragraph (4) an assessment of export 
                        activity for coal extracted from other leases 
                        under this section; and
                    ``(ii) for purposes of the analysis under clause 
                (i)(I) and the assessment under clause (i)(II), may 
                consult with other agencies with relevant expertise 
                relating to coal exports, such as the Energy 
                Information Administration;
                    ``(B) shall use a comparable lease sale approach 
                and income approach for purposes of calculating fair 
                market value;
                    ``(C) shall not rely on any information from lease 
                sales conducted more than 5 years before the date of 
                the proposed lease sale for purposes of calculating 
                fair market value; and
                    ``(D) shall consider domestic coal reserve 
                estimates.
            ``(3) Appraisal report.--The Secretary shall include a fair 
        market value determination with respect to a lease under 
        paragraph (1) in a formal, documented appraisal report that 
        provides verification of the consultation required under that 
        paragraph by including the signatures of the individuals 
        representing the offices consulted under that paragraph in the 
        completed appraisal report.
            ``(4) GAO report.--Not later than 2 years after the date of 
        enactment of this subsection, the Comptroller General of the 
        United States shall submit to the appropriate committees of 
        Congress a report that describes whether the Secretary has 
        complied with the requirements of paragraph (2)(A) in making 
        fair market value determinations of leases under this 
        subsection.
            ``(5) Minimum bids.--Notwithstanding any other provision of 
        this Act, the Secretary may not accept a bid for a lease to 
        extract coal under this Act that is less than the fair market 
        value of the coal to be extracted under the lease, even if a 
        bid is above the minimum bid requirement.''.

SEC. 6. PUBLIC AVAILABILITY OF DATA.

    Section 2 of the Mineral Leasing Act (as amended by section 5) is 
amended by adding at the end the following:
    ``(f) Public Availability of Appraisal Reports.--Any appraisal 
report conducted under this section shall be made publicly available on 
the website of the Bureau of Land Management, with appropriate 
redactions of or protections for confidential material or information.
    ``(g) Public Availability of Lease Sales, High Bids, Royalty 
Payments, and Revenue.--The Secretary shall track and make publicly 
available on the website of the Bureau of Land Management information 
on individual and total lease sales, high bids, royalty payments, and 
revenue relating to activities conducted under this section.''.

SEC. 7. LEASE MODIFICATIONS.

    Section 3(a)(1) of the Mineral Leasing Act (30 U.S.C. 203(a)(1)) is 
amended by inserting ``and on completion of a fair market value 
determination under subsection (e)(1) with respect to the 
modifications'' after ``under paragraph (2)''.

SEC. 8. FINDINGS NECESSARY FOR COAL LEASE MODIFICATIONS.

    Section 3(a)(2) of the Mineral Leasing Act (30 U.S.C. 203(a)(2)) is 
amended--
            (1) in subparagraph (B), by striking ``and'' after the 
        semicolon at the end;
            (2) in subparagraph (C), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(D) would not result in a reduction of revenue.''.

SEC. 9. SIZE OF COAL LEASING MODIFICATIONS.

    Section 3(a)(3)(A) of the Mineral Leasing Act (30 U.S.C. 
203(a)(3)(A)) is amended by striking ``960 acres'' and inserting ``160 
acres''.

SEC. 10. COAL LEASING PROGRAM.

    The Mineral Leasing Act is amended by inserting after section 3 (30 
U.S.C. 203) the following:

``SEC. 4. COAL LEASING PROGRAM.

    ``(a) In General.--The Secretary shall prepare, periodically 
revise, and maintain a coal leasing program to implement this Act.
    ``(b) Content.--The leasing program shall consist of a schedule of 
proposed lease sales indicating, as precisely as practicable, the size, 
timing, and location of leasing activity that the Secretary determines 
will best meet national needs for the 5-year period following the 
approval or reapproval of the program.
    ``(c) Principles.--The leasing program shall be prepared and 
maintained in a manner consistent with the following principles:
            ``(1) Leasing activities for coal subject to this Act shall 
        be conducted--
                    ``(A) to ensure receipt of fair market value for 
                the land leased and the rights conveyed by the Federal 
                Government;
                    ``(B) to maximize competition for Federal coal 
                leases; and
                    ``(C) to maximize the financial return per ton of 
                coal leased for taxpayers of the United States.
            ``(2) Management of coal subject to this Act shall be 
        conducted in a manner that considers--
                    ``(A) the economic, social, and environmental 
                values of Federal land and the coal resource; and
                    ``(B) the potential impact of coal leasing on other 
                resource values and the natural and human environments.
            ``(3) Timing and location of exploration, development, and 
        production of coal among or within the coal-bearing 
        physiographic regions shall be based on a consideration of--
                    ``(A) existing information concerning the 
                geographical, geological, and ecological 
                characteristics of the regions;
                    ``(B) an equitable sharing of developmental 
                benefits and environmental risks among or within the 
                various regions;
                    ``(C) the location of the regions with respect to, 
                and the relative needs of, regional and national energy 
                markets;
                    ``(D) the location of the regions with respect to 
                other anticipated uses of the resources and space of 
                the regions;
                    ``(E) the interest of potential coal producers in 
                the development of coal resources as indicated by 
                exploration or nomination;
                    ``(F) laws, goals, and policies of affected States 
                that have been specifically identified by the Governors 
                of the States as relevant matters for the consideration 
                of the Secretary;
                    ``(G) the relative environmental sensitivity and 
                natural productivity of different areas containing the 
                coal; and
                    ``(H) relevant environmental and predictive 
                information for the different areas.
            ``(4) The Secretary shall select the timing and location of 
        leasing, to the maximum extent practicable, so as to obtain a 
        proper balance between--
                    ``(A) the potential for environmental damage;
                    ``(B) the potential for the discovery of coal; and
                    ``(C) the potential for adverse impact on areas 
                containing the coal.
            ``(5) The Secretary shall develop the plan and manage coal 
        leasing and development in a manner that considers the impact 
        of coal leasing and development on climate change.
    ``(d) Estimated Appropriations and Staff.--The leasing program 
shall include estimates of the appropriations and staff required--
            ``(1) to obtain resource information and any other 
        information needed to prepare the leasing program required by 
        this section;
            ``(2) to analyze and interpret the exploratory data and any 
        other information that may be compiled under this Act;
            ``(3) to conduct environmental studies and prepare any 
        environmental impact statement required in accordance with this 
        Act and section 102(2)(C) of the National Environmental Policy 
        Act of 1969 (42 U.S.C. 4332(2)(C)); and
            ``(4) to supervise operations conducted pursuant to each 
        lease in the manner necessary to ensure due diligence in the 
        exploration and development of the lease area and compliance 
        with the requirement of applicable laws (including regulations) 
        and with the terms of the lease.
    ``(e) Proposed Leasing Program.--
            ``(1) In general.--During the preparation of any proposed 
        leasing program under this section, the Secretary--
                    ``(A) shall invite and consider suggestions for the 
                program from--
                            ``(i) any interested Federal agency, 
                        including the Department of Justice, in 
                        consultation with the Federal Trade Commission; 
                        and
                            ``(ii) the Governor of any State that may 
                        become an affected State under the proposed 
                        program; and
                    ``(B) may invite or consider any suggestions from--
                            ``(i) the executive of any affected local 
                        government in an affected State, which have 
                        been previously submitted to the Governor of 
                        the State; and
                            ``(ii) any other person.
            ``(2) Review and comments by affected states.--
                    ``(A) In general.--After preparation and at least 
                60 days before publication of a proposed leasing 
                program in the Federal Register pursuant to paragraph 
                (3), the Secretary shall submit a copy of the proposed 
                program to the Governor of each affected State for 
                review and comment.
                    ``(B) Local governments.--The Governor of a State 
                may solicit comments from the executives of local 
                governments in the State that the Governor, at the 
                discretion of the Governor, determines will be affected 
                by the proposed program.
                    ``(C) Reply by secretary.--If any comment by a 
                Governor is received by the Secretary at least 15 days 
                before submission to Congress pursuant to such 
                paragraph (3) and includes a request for any 
                modification of the proposed program, the Secretary 
                shall reply in writing--
                            ``(i)(I) granting or denying the request in 
                        whole or in part; or
                            ``(II) granting the request in such 
                        modified form as the Secretary considers 
                        appropriate; and
                            ``(ii) stating the reasons for the actions 
                        of the Secretary.
                    ``(D) Correspondence.--All correspondence between 
                the Secretary and Governor of any affected State under 
                this paragraph, together with any additional 
                information and data relating to the correspondence, 
                shall accompany the proposed program when the proposed 
                program is submitted to Congress.
            ``(3) Submission and publication.--
                    ``(A) In general.--Not later than 270 days after 
                the date of enactment of the COAL Reform Act of 2017, 
                the Secretary shall--
                            ``(i) submit a proposed leasing program to 
                        Congress, the Attorney General, and the 
                        Governors of affected States; and
                            ``(ii) publish the proposed program in the 
                        Federal Register.
                    ``(B) Local governments.--A Governor shall, on 
                request, submit a copy of the proposed leasing program 
                to the executive of any local government affected by 
                the proposed program.
    ``(f) Administration.--
            ``(1) In general.--Not later than 90 days after the date of 
        publication of a proposed leasing program, the Attorney General 
        may, after consultation with the Federal Trade Commission, 
        submit comments on the anticipated effects of the proposed 
        program on competition.
            ``(2) Other comments.--Any State, local government, or 
        other person may submit comments and recommendations as to any 
        aspect of the proposed program.
            ``(3) Response by secretary.--
                    ``(A) In general.--At least 60 days before 
                approving a proposed leasing program, the Secretary 
                shall submit the proposed program to the President and 
                Congress, together with any comments received.
                    ``(B) Recommendations.--The submission shall 
                indicate why any specific recommendation of the 
                Attorney General or a State or local government was not 
                accepted.
            ``(4) New leases.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), after the leasing program has been 
                approved by the Secretary or the date that is 18 months 
                after the date of enactment of the COAL Reform Act of 
                2017 (whichever first occurs), no lease shall be issued 
                under this Act unless the lease--
                            ``(i) is for an area included in the 
                        approved leasing program; and
                            ``(ii) contains provisions that are 
                        consistent with the approved leasing program.
                    ``(B) Continued leasing.--Leasing shall be 
                permitted to continue until the program is approved and 
                while the program is under judicial or administrative 
                review pursuant to this Act.
    ``(g) Review and Revision.--
            ``(1) Review.--The Secretary shall review the leasing 
        program approved under this section at least once each year.
            ``(2) Revisions.--
                    ``(A) In general.--The Secretary may revise and 
                reapprove the leasing program at any time.
                    ``(B) Procedure.--The Secretary shall revise and 
                reapprove the leasing program in the same manner at the 
                original plan unless the revision is not significant, 
                as determined by the Secretary.
    ``(h) Procedures.--
            ``(1) In general.--The Secretary shall, by regulation, 
        establish procedures for--
                    ``(A) receipt and consideration of nominations for 
                any area to be offered for lease or to be excluded from 
                leasing;
                    ``(B) public notice of and participation in 
                development of the leasing program;
                    ``(C) review by State and local governments that 
                may be impacted by the proposed leasing; and
                    ``(D) periodic consultation with State and local 
                governments, coal lessees and permittees, and 
                representatives of other individuals or organizations 
                engaged in activity in areas covered by leases.
            ``(2) Revisions.--The procedures shall be applicable to any 
        significant revision or reapproval of the leasing program.
    ``(i) Information Requested by Secretary.--
            ``(1) In general.--The Secretary may obtain from public 
        sources, or purchase from private sources, any survey, data, 
        report, or other information (including interpretations of such 
        data, survey, report, or other information) that may be 
        necessary to assist the Secretary in preparing any 
        environmental impact statement and in making other evaluations 
        required by this Act.
            ``(2) Confidential information.--
                    ``(A) In general.--Data of a classified nature 
                provided to the Secretary under this subsection shall 
                remain confidential for such period of time as agreed 
                to by the head of the department or agency from whom 
                the information is requested.
                    ``(B) Period.--The Secretary shall maintain the 
                confidentiality of all privileged or proprietary data 
                or information for such period of time as is provided 
                for in this Act, established by regulation, or agreed 
                to by the parties.
    ``(j) Information Provided by Other Federal Agencies.--
            ``(1) In general.--The head of a Federal department or 
        agency--
                    ``(A) shall provide the Secretary with any 
                nonprivileged or nonproprietary information the 
                Secretary requests to assist the Secretary in preparing 
                the leasing program; and
                    ``(B) may provide the Secretary with any privileged 
                or proprietary information the Secretary requests to 
                assist the Secretary in preparing the leasing program.
            ``(2) Confidential information.--Privileged or proprietary 
        information provided to the Secretary under this subsection 
        shall remain confidential for such period of time as agreed to 
        by the head of the department or agency from whom the 
        information is requested.
            ``(3) Existing resources.--In carrying out this subsection, 
        the Secretary may use the existing capabilities and resources 
        of a Federal department or agency by appropriate agreement.
    ``(k) Regulations.--Not later than 180 days after the date of 
enactment of the COAL Reform Act of 2017, the Secretary shall issue 
such regulations as are necessary to carry out this section, including 
regulations that (to the maximum extent practicable)--
            ``(1) minimize discretion by State offices of the 
        Department of the Interior in conducting lease sales; and
            ``(2) maximize the financial return for taxpayers of the 
        United States.''.

SEC. 11. RENTAL RATES.

    Section 7(a) of the Mineral Leasing Act (30 U.S.C. 207) is amended 
in the third sentence by inserting ``at a rental rate of not less than 
$100 per acre (as reviewed and, if appropriate, adjusted by the 
Secretary every 5 years)'' before the period at the end.

SEC. 12. PRIMARY TERM OF LEASE.

    Section 7 of the Mineral Leasing Act (30 U.S.C. 207) is amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by striking ``twenty'' 
                and inserting ``10'';
                    (B) in the second sentence, by striking ``ten'' and 
                inserting ``5''; and
                    (C) in the sixth sentence--
                            (i) by striking ``twenty'' and inserting 
                        ``10''; and
                            (ii) by striking ``ten'' and inserting 
                        ``5''; and
            (2) in subsection (b)(5), by striking ``20'' and inserting 
        ``10''.

SEC. 13. MINIMUM VALUE.

    The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended--
            (1) in sections 7(a) and 14 (30 U.S.C. 207(a), 223), by 
        striking ``12\1/2\ per centum'' each place it appears and 
        inserting ``18.75 percent'';
            (2) in section 17 (30 U.S.C. 226)--
                    (A) in subsection (b)--
                            (i) in paragraph (1)(A), in the fifth 
                        sentence, by striking ``12.5 percent'' and 
                        inserting ``18.75 percent''; and
                            (ii) in paragraph (2)(A)(ii)--
                                    (I) by striking ``12\1/2\ per 
                                centum'' and inserting ``18.75 
                                percent''; and
                                    (II) by striking ``(k)(1)(c)'' and 
                                inserting ``(k)(1)(C)'';
                    (B) in subsection (c)(1), in the second sentence, 
                by striking ``12.5 percent'' and inserting ``18.75 
                percent''; and
                    (C) in subsections (l) and (n)(1)(C), by striking 
                ``12\1/2\ per centum'' each place it appears and 
                inserting ``18.75 percent'';
            (3) in section 18 (41 Stat. 443), by striking ``12\1/2\ per 
        centum'' and inserting ``18.75 percent''; and
            (4) in sections 19, 20, and 31(f)(4) (30 U.S.C. 228, 229, 
        188(f)(4)), by striking ``12\1/2\ per centum'' each place it 
        appears and inserting ``18.75 percent''.

SEC. 14. INSPECTION AND ENFORCEMENT.

    Section 41 of the Mineral Leasing Act (30 U.S.C. 195) is amended by 
adding at the end the following:
    ``(g) Inspection and Enforcement.--
            ``(1) In general.--The Director of the Bureau of Land 
        Management shall promulgate regulations for inspections and 
        enforcement of coal operations carried out under this Act to 
        ensure consistent and effective inspections and enforcement.
            ``(2) Inclusions.--The regulations promulgated pursuant to 
        paragraph (1) shall--
                    ``(A) provide for oversight of State inspection and 
                enforcement programs for coal operations by the 
                Washington, District of Columbia office of the Bureau 
                of Land Management;
                    ``(B) standardize inspection and enforcement 
                practices for all State offices of the Bureau of Land 
                Management;
                    ``(C) require documentation of inspection and 
                enforcement activities and the recordation of all 
                inspection results in a central database; and
                    ``(D) require periodic unannounced inspections.''.

SEC. 15. CIVIL PENALTIES.

    Section 41 of the Mineral Leasing Act (30 U.S.C. 195) (as amended 
by section 14) is amended by adding at the end the following:
    ``(h) BLM Authority To Assess Civil Penalties.--
            ``(1) In general.--The Director of the Bureau of Land 
        Management may include in a notice of noncompliance issued to a 
        person subject to the requirements of this Act an assessment of 
        a civil penalty in accordance with paragraph (2).
            ``(2) Maximum amount.--Subject to paragraph (3), a penalty 
        assessed pursuant to paragraph (1) shall not exceed $100,000 
        per incident per day.
            ``(3) Adjustment.--The Secretary may increase the maximum 
        amount described in paragraph (2) after notice and opportunity 
        for public comment.''.

SEC. 16. MORATORIUM ON NEW COAL LEASE SALES PENDING IMPLEMENTATION.

    Notwithstanding any other provision of law, the Secretary of the 
Interior shall not conduct a new lease sale, or enter into a new lease, 
for coal subject to the Mineral Leasing Act (30 U.S.C. 181 et seq.) 
until the Secretary certifies to Congress that this Act and the 
amendments made by this Act have been implemented.
                                 <all>