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PENNSYLVANIA ABANDONED MINE LAND
CAMPAIGN: SMCRA TITLE IV FEE
REAUTHORIZATION
Anne Daymut
Western Pennsylvania Coalition for Abandoned Mine Reclamation
SMCRA TITLE IV REAUTHORIZATION
 Review of the need
 Where are we in the process and what do we
support?
 How you can help
SMCRA REVIEW
 Surface Mine Control and Reclamation Act of
1977 regulates coal mining across the nation
 Title IV is a section of SMCRA that contains the
Abandoned Mine Land Fund, a mechanism for
abandoned mine reclamation
 A fee on current coal production
 Administered by OSMRE
 Distributed to AML-impacted states as annual grants
 Grants based on current and historical coal
production
 Grants fund State BAMRs admin and projects
THE NEED: TITLE IV REAUTHORIZATION
 As of November 2015, AML Fund Balance was
$2.5 Billion.
 $5 Billion P1 and P2 sites remaining in PA
alone, $15 Billion when AMD is included, based
on current inventory
 Set to expire in 2021, meaning no additional
fees will be collected after that time
 Was previously reauthorized in 2006 and took
several years
 Reauthorization Requires an Amendment to
SMCRA
PA AML CAMPAIGN
 Loosely organized group
 NGOs, Foundation, State
 Began 10 years before the 2006 SMCRA
Reauthorization, Have renewed conversations
over the last 2 years.
 Promotes AML/AMD reclamation
 Working with all interested parties
 Maintain communications
 Integrity
PA AML CAMPAIGN PROPOSAL (4 MAIN POINTS)
1. Extend SMCRA Fee Collection until 2036
2. Restructure the Fees to $0.35 for both
underground and surface coal both
Anthracite and Bituminous, $0.10 for lignite
and sub-Bituminous
3. Increase Minimum Program State Funds to
$5 Million annually
4. Exempt Title IV Grants from Sequestration
and return sequestered funds back to
states.
1. EXTEND FEE COLLECTION UNTIL 2036
 Based on requested funding levels, projected
future production, and estimated costs of
cleaning up inventoried sites, it will take 15
years to address most of the abandoned
mine problems.
2. RESTRUCTURE OF FEE
 Since the enactment of SMCRA in 1977, the per
ton reclamation fees have never accounted for
inflation while the cost of reclamation continues
to rise. We propose that the reclamation fee
should be restructured to 35 cents per ton of
coal produced by surface coal mining and
underground mining, except that the
reclamation fee for lignite coal shall be at a rate
of 2 per centum of the value of the coal at the
mine, or 10 cents per ton, whichever is less.
3. INCREASE MINIMUM PROGRAM STATE FUNDS
TO $5 MILLION
 Since 2006, this funding has been set at $3 million.
In recent years, minimum program states have
received significantly less due to sequestration.
Additionally, in recent years, OSMRE has
discontinued support to states and tribes with AML
emergencies forcing states and tribes to use annual
allotment to mitigate AML emergencies. Increasing
this amount would help make up for past under-
funding and ensure that states and tribes with
significant AML problems but low production would be
able to continue running effective programs. This
potentially affects ten states.
4. END SEQUESTRATION
 Funds in the AML Trust Fund collected through
SMCRA Title IV are not taxpayer funds, they are
dedicated funds which can only be used for AML
reclamation, and thus will not accomplish deficit
reduction. The only way to exempt these funds from
sequestration is to include it in legislation. If the AML
Fund grants continue to be subject to sequestration,
States will lose upwards of $188 Million and
Pennsylvania alone stands to lose upwards of $37
million over the remaining seven years of the current
AML program. The SMCRA Title IV grants should be
exempt from sequestration and all Title IV
sequestered funds should be given back to the
states, retroactive to FY 2013.
WE ALSO SUPPORT
 Establish line-item in OSM budget for emergency
projects
 Maintain priority ranking
 Maintain mandatory distribution
 Maintain 30% set-aside option
 Transfer of interest to the Combined Benefit Fund
 Maintain OSM’s Watershed Cooperative Agreement
Program
 Funding for Abandoned Mine Drainage Remediation
 Update of the Inventory
 Redevelopment of Abandoned Mine Lands
 Creation of jobs through reclamation and OM&R
WE ALSO SUPPORT:
 Emergency Projects: Section 410 of SMCRA requires
OSMRE to fund the emergency AML program using
OSMRE’s “discretionary share” under Section
(402)(g)(3)(B), which is entirely separate from state and
tribal non-emergency AML grant funding under Sections
(402)(g)(1), (g)(2), and (g)(5). In FY 2011, OSMRE
issued guidance to the states that the agency “will no
longer declare emergencies.” OSMRE has shifted
responsibility for emergencies to the states and tribes with
the expectation that they will utilize non-emergency AML
funding to address them. The result of this shift is that
states must utilize a portion of their P1/P2 AML funding to
address emergency projects. We urge congress to
restore emergency funding and allow states to use their
limited resources to address high priority inventories.
WE ALSO SUPPORT:
 Priority Ranking: States have the discretion to
use their allocations from the Fund for projects
falling into any of the three priorities.
 Mandatory Distributions: With the 2006
amendments to SMCRA, distributions to the
states were no longer subject to Congressional
appropriation and the distributions were made
mandatory. Mandatory distribution should
continue so Pennsylvania can receive the most
funding possible in a given year.
WE ALSO SUPPORT:
 Maintaining the 30% Set-Aside Option for States and
Tribes: Pennsylvania has taken advantage of this
provision to construct and maintain AMD treatment
systems. It is important to maintain the 30% Set-Aside
provision to maintain flexibility for use of funds.
 **Maintaining a Transfer of Interest to the Combined
Benefit Fund (CBF): Interest generated on the AMRF is
currently transferred to the CBF to defray health care
costs for retired miners and their dependents whose
companies have gone bankrupt or are no longer in
business. The CBF pays for health care expenses
remaining after Medicare and Medicaid reimbursement
and pays for prescription drugs. There are approximately
60,000 beneficiaries, whose average age is 78 years old.
WE ALSO SUPPORT:
 Continuing OSMRE’s Watershed Cooperative
Agreement Program (WCAP): Since 1996, WCAP has
distributed $15.2 Million to 178 reclamation project
constructed by non-profit watershed organizations.
WCAP has helped to leverage Millions of dollars of
additional state, private and foundation funding to projects
implemented by non-profit groups.
 Continued Focus on Abandoned Mine Drainage
Remediation.: Over 5,500 miles of Pennsylvania’s
streams are impaired by AMD and many are considered
to by Priority 3, placing less emphasis on their
remediation. It is widely accepted that the reclamation of
impaired streams improves property values and brings
much needed revenue to impoverished communities.
WE ALSO SUPPORT:
 Encouraging the Redevelopment of
Abandoned Mine Lands: As abandoned mine
lands are reclaimed, they offer potential
locations for economic development projects.
By developing and marketing abandoned mine
lands that would normally struggle to attract new
investment, these “grayfields” can be turned into
regional assets by creating economic
opportunities, preventing sprawl, and conserving
open space and natural resources.
HOW YOU CAN HELP
 A grassroots effort
 Watershed Organization Resolutions
 County Resolutions
 Outreach to Legislators
 Advocacy vs. Lobbying…Call me for advice
Cost to Reclaim Remaining High Priority AML in Pennsylvania
per Congressional District
Congressional District 3 (Kelly)
Congressional District 9 (Shuster)
Congressional District 11 (Barletta)
Congressional District 14 (Doyle)
Congressional District 5 (Thompson)
Congressional District 10 (Marino)
Congressional District 12 (Rothfus)
Congressional District 15 (Dent)
Congressional District 18 (Murphy)
Congressional District 17 (Cartwright)
*Of the 18 Pennsylvania Congressional
Districts, 10 have unreclaimed AML
Unreclaimed High Priority AML in Pennsylvania per
Congressional District
Congressional District 3 (Kelly)
Congressional District 9 (Shuster)
Congressional District 11 (Barletta)
Congressional District 14 (Doyle)
Congressional District 5 (Thompson)
Congressional District 10 (Marino)
Congressional District 12 (Rothfus)
Congressional District 15 (Dent)
Congressional District 18 (Murphy)
Congressional District 17 (Cartwright)
*Of the 18 Pennsylvania Congressional
Districts, 10 have unreclaimed AML
AMD-Impaired Stream Miles in Pennsylvania per
Congressional District
Congressional District 3 (Kelly)
Congressional District 9 (Shuster)
Congressional District 11 (Barletta)
Congressional District 14 (Doyle)
Congressional District 5 (Thompson)
Congressional District 10 (Marino)
Congressional District 15 (Dent)
Congressional District 18 (Murphy)
Congressional District 17 (Cartwright)
*Of the 18 Congressional Districts in Pennsylvania, 9 have AMD-impaired streams
Pennsylvania AML Issue Spending as of June 2015
Dangerous Highwalls
Subsidance
Mine Fires
Polluted Water
Dangerous Piles
Other P1 and P2 problems*
*Other P1 and P2 Problems include,
but are not limited to, dangerous gases,
mine openings, pits, and equipment.
CUSTOMIZABLE OUTREACH KIT
 Reauthorize SMCRA Poster
 Website
 Fact Sheet
 OSM’s Infographic with State/Tribe-specific data
 Short Video
 Longer video (yet to be published)
AMLCAMPAIGN.WPCAMR.ORG
AMLCAMPAIGN.WPCAMR.ORG
 News postings
 Links to legislation and hearings
 List of partners
 Supporting documentation
 OSMRE Infographic
 AML Campaign Fact Sheet
 PA AML Inventory maps per Congressional District
 Helpful presentations and success stories
 Sample resolutions
INFOGRAPHIC
MOVING FORWARD
 National Level
 Produce Longer Film featuring AML issues
nationwide
 Update website with new partner information and
Legislative roundup regularly
 PA AML Campaign
 Schedule Meetings with PA Delegation and
beyond
 Reach out to local governments and non-profits
 Resolutions
OTHER INITIATIVES
 Good Samaritan protection
 Operations, Maintenance, and Rehabilitation
funding
DISCUSSION
 Why is PA a leader in AMR?
 What is unique about environmental work in
PA?
 Is there a difference between environmental
work and watershed work?
 Why have watershed organizations been so
successful in PA?
 What can other states learn from PA?
THANK YOU
Anne Daymut
anne@wpcamr.org
724-832-3625

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  • 1. PENNSYLVANIA ABANDONED MINE LAND CAMPAIGN: SMCRA TITLE IV FEE REAUTHORIZATION Anne Daymut Western Pennsylvania Coalition for Abandoned Mine Reclamation
  • 2. SMCRA TITLE IV REAUTHORIZATION  Review of the need  Where are we in the process and what do we support?  How you can help
  • 3. SMCRA REVIEW  Surface Mine Control and Reclamation Act of 1977 regulates coal mining across the nation  Title IV is a section of SMCRA that contains the Abandoned Mine Land Fund, a mechanism for abandoned mine reclamation  A fee on current coal production  Administered by OSMRE  Distributed to AML-impacted states as annual grants  Grants based on current and historical coal production  Grants fund State BAMRs admin and projects
  • 4. THE NEED: TITLE IV REAUTHORIZATION  As of November 2015, AML Fund Balance was $2.5 Billion.  $5 Billion P1 and P2 sites remaining in PA alone, $15 Billion when AMD is included, based on current inventory  Set to expire in 2021, meaning no additional fees will be collected after that time  Was previously reauthorized in 2006 and took several years  Reauthorization Requires an Amendment to SMCRA
  • 5. PA AML CAMPAIGN  Loosely organized group  NGOs, Foundation, State  Began 10 years before the 2006 SMCRA Reauthorization, Have renewed conversations over the last 2 years.  Promotes AML/AMD reclamation  Working with all interested parties  Maintain communications  Integrity
  • 6. PA AML CAMPAIGN PROPOSAL (4 MAIN POINTS) 1. Extend SMCRA Fee Collection until 2036 2. Restructure the Fees to $0.35 for both underground and surface coal both Anthracite and Bituminous, $0.10 for lignite and sub-Bituminous 3. Increase Minimum Program State Funds to $5 Million annually 4. Exempt Title IV Grants from Sequestration and return sequestered funds back to states.
  • 7. 1. EXTEND FEE COLLECTION UNTIL 2036  Based on requested funding levels, projected future production, and estimated costs of cleaning up inventoried sites, it will take 15 years to address most of the abandoned mine problems.
  • 8. 2. RESTRUCTURE OF FEE  Since the enactment of SMCRA in 1977, the per ton reclamation fees have never accounted for inflation while the cost of reclamation continues to rise. We propose that the reclamation fee should be restructured to 35 cents per ton of coal produced by surface coal mining and underground mining, except that the reclamation fee for lignite coal shall be at a rate of 2 per centum of the value of the coal at the mine, or 10 cents per ton, whichever is less.
  • 9. 3. INCREASE MINIMUM PROGRAM STATE FUNDS TO $5 MILLION  Since 2006, this funding has been set at $3 million. In recent years, minimum program states have received significantly less due to sequestration. Additionally, in recent years, OSMRE has discontinued support to states and tribes with AML emergencies forcing states and tribes to use annual allotment to mitigate AML emergencies. Increasing this amount would help make up for past under- funding and ensure that states and tribes with significant AML problems but low production would be able to continue running effective programs. This potentially affects ten states.
  • 10. 4. END SEQUESTRATION  Funds in the AML Trust Fund collected through SMCRA Title IV are not taxpayer funds, they are dedicated funds which can only be used for AML reclamation, and thus will not accomplish deficit reduction. The only way to exempt these funds from sequestration is to include it in legislation. If the AML Fund grants continue to be subject to sequestration, States will lose upwards of $188 Million and Pennsylvania alone stands to lose upwards of $37 million over the remaining seven years of the current AML program. The SMCRA Title IV grants should be exempt from sequestration and all Title IV sequestered funds should be given back to the states, retroactive to FY 2013.
  • 11. WE ALSO SUPPORT  Establish line-item in OSM budget for emergency projects  Maintain priority ranking  Maintain mandatory distribution  Maintain 30% set-aside option  Transfer of interest to the Combined Benefit Fund  Maintain OSM’s Watershed Cooperative Agreement Program  Funding for Abandoned Mine Drainage Remediation  Update of the Inventory  Redevelopment of Abandoned Mine Lands  Creation of jobs through reclamation and OM&R
  • 12. WE ALSO SUPPORT:  Emergency Projects: Section 410 of SMCRA requires OSMRE to fund the emergency AML program using OSMRE’s “discretionary share” under Section (402)(g)(3)(B), which is entirely separate from state and tribal non-emergency AML grant funding under Sections (402)(g)(1), (g)(2), and (g)(5). In FY 2011, OSMRE issued guidance to the states that the agency “will no longer declare emergencies.” OSMRE has shifted responsibility for emergencies to the states and tribes with the expectation that they will utilize non-emergency AML funding to address them. The result of this shift is that states must utilize a portion of their P1/P2 AML funding to address emergency projects. We urge congress to restore emergency funding and allow states to use their limited resources to address high priority inventories.
  • 13. WE ALSO SUPPORT:  Priority Ranking: States have the discretion to use their allocations from the Fund for projects falling into any of the three priorities.  Mandatory Distributions: With the 2006 amendments to SMCRA, distributions to the states were no longer subject to Congressional appropriation and the distributions were made mandatory. Mandatory distribution should continue so Pennsylvania can receive the most funding possible in a given year.
  • 14. WE ALSO SUPPORT:  Maintaining the 30% Set-Aside Option for States and Tribes: Pennsylvania has taken advantage of this provision to construct and maintain AMD treatment systems. It is important to maintain the 30% Set-Aside provision to maintain flexibility for use of funds.  **Maintaining a Transfer of Interest to the Combined Benefit Fund (CBF): Interest generated on the AMRF is currently transferred to the CBF to defray health care costs for retired miners and their dependents whose companies have gone bankrupt or are no longer in business. The CBF pays for health care expenses remaining after Medicare and Medicaid reimbursement and pays for prescription drugs. There are approximately 60,000 beneficiaries, whose average age is 78 years old.
  • 15. WE ALSO SUPPORT:  Continuing OSMRE’s Watershed Cooperative Agreement Program (WCAP): Since 1996, WCAP has distributed $15.2 Million to 178 reclamation project constructed by non-profit watershed organizations. WCAP has helped to leverage Millions of dollars of additional state, private and foundation funding to projects implemented by non-profit groups.  Continued Focus on Abandoned Mine Drainage Remediation.: Over 5,500 miles of Pennsylvania’s streams are impaired by AMD and many are considered to by Priority 3, placing less emphasis on their remediation. It is widely accepted that the reclamation of impaired streams improves property values and brings much needed revenue to impoverished communities.
  • 16. WE ALSO SUPPORT:  Encouraging the Redevelopment of Abandoned Mine Lands: As abandoned mine lands are reclaimed, they offer potential locations for economic development projects. By developing and marketing abandoned mine lands that would normally struggle to attract new investment, these “grayfields” can be turned into regional assets by creating economic opportunities, preventing sprawl, and conserving open space and natural resources.
  • 17. HOW YOU CAN HELP  A grassroots effort  Watershed Organization Resolutions  County Resolutions  Outreach to Legislators  Advocacy vs. Lobbying…Call me for advice
  • 18. Cost to Reclaim Remaining High Priority AML in Pennsylvania per Congressional District Congressional District 3 (Kelly) Congressional District 9 (Shuster) Congressional District 11 (Barletta) Congressional District 14 (Doyle) Congressional District 5 (Thompson) Congressional District 10 (Marino) Congressional District 12 (Rothfus) Congressional District 15 (Dent) Congressional District 18 (Murphy) Congressional District 17 (Cartwright) *Of the 18 Pennsylvania Congressional Districts, 10 have unreclaimed AML
  • 19. Unreclaimed High Priority AML in Pennsylvania per Congressional District Congressional District 3 (Kelly) Congressional District 9 (Shuster) Congressional District 11 (Barletta) Congressional District 14 (Doyle) Congressional District 5 (Thompson) Congressional District 10 (Marino) Congressional District 12 (Rothfus) Congressional District 15 (Dent) Congressional District 18 (Murphy) Congressional District 17 (Cartwright) *Of the 18 Pennsylvania Congressional Districts, 10 have unreclaimed AML
  • 20. AMD-Impaired Stream Miles in Pennsylvania per Congressional District Congressional District 3 (Kelly) Congressional District 9 (Shuster) Congressional District 11 (Barletta) Congressional District 14 (Doyle) Congressional District 5 (Thompson) Congressional District 10 (Marino) Congressional District 15 (Dent) Congressional District 18 (Murphy) Congressional District 17 (Cartwright) *Of the 18 Congressional Districts in Pennsylvania, 9 have AMD-impaired streams
  • 21. Pennsylvania AML Issue Spending as of June 2015 Dangerous Highwalls Subsidance Mine Fires Polluted Water Dangerous Piles Other P1 and P2 problems* *Other P1 and P2 Problems include, but are not limited to, dangerous gases, mine openings, pits, and equipment.
  • 22. CUSTOMIZABLE OUTREACH KIT  Reauthorize SMCRA Poster  Website  Fact Sheet  OSM’s Infographic with State/Tribe-specific data  Short Video  Longer video (yet to be published)
  • 23.
  • 25. AMLCAMPAIGN.WPCAMR.ORG  News postings  Links to legislation and hearings  List of partners  Supporting documentation  OSMRE Infographic  AML Campaign Fact Sheet  PA AML Inventory maps per Congressional District  Helpful presentations and success stories  Sample resolutions
  • 27. MOVING FORWARD  National Level  Produce Longer Film featuring AML issues nationwide  Update website with new partner information and Legislative roundup regularly  PA AML Campaign  Schedule Meetings with PA Delegation and beyond  Reach out to local governments and non-profits  Resolutions
  • 28. OTHER INITIATIVES  Good Samaritan protection  Operations, Maintenance, and Rehabilitation funding
  • 29. DISCUSSION  Why is PA a leader in AMR?  What is unique about environmental work in PA?  Is there a difference between environmental work and watershed work?  Why have watershed organizations been so successful in PA?  What can other states learn from PA?

Editor's Notes

  1. ** The issue of health insurance was squared away recently my Mansion but they may still need support for their pensions.
  2. Information on website is PA-centric right now, but we can add information for other states. The Poster, inforgraphic, and all other supporting materials are customizable. The longer video will feature those of you who volunteer.