Bond Improvement and Reclamation Assurance Act of 2026

Bill Number

H.R. 7249

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Energy

Status

Introduced

Latest Action

2026-01-27: Referred to the House Committee on Natural Resources.

Last Updated

2026-02-13T17:32:21Z

AI-Generated Summary

Purpose

The Bond Improvement and Reclamation Assurance Act of 2026 aims to strengthen the financial guarantees (known as performance bonds) required for surface coal mining permits. These bonds ensure that mined lands are properly reclaimed—restored to a usable state—if the mining company fails to do so. The legislation updates the Surface Mining Control and Reclamation Act of 1977 (SMCRA) to make bonds more reliable, especially in cases of unexpected mine closures or bond forfeitures, reducing the risk that taxpayers or governments must cover cleanup costs.

Key Provisions

• Bond Requirements (Amendments to Section 509 of SMCRA):
• Mining permit applicants must post a bond before operations begin, covering the initial permit area and additional bonds for future expansions.
• Bond amounts are set by regulatory authorities (federal or state agencies overseeing mining) based on reclamation needs, site conditions (like terrain, soil, water flow, and plant regrowth potential), and enough to fully fund reclamation if the government steps in.
• New factors for calculating bonds include: expected inflation over the reclamation period; costs from early or unplanned mine closures (with a default assumption that mines close after 5 years unless proven otherwise); and extra expenses if the government handles reclamation after bond forfeiture.
• A minimum bond of $52,593 per permit (adjusted annually for inflation using the Consumer Price Index) is required.

• Bond Adjustments (Amendments to Sections 509 and 511 of SMCRA):
• Bonds must be updated periodically for changes in land area, rising reclamation costs (e.g., due to water pollution, market shifts, unexpected closures, or plan changes), permit renewals, or transfers to new operators.
• For permit transfers, sales, or revisions, regulators must recalculate and require a new bond amount. Original permit holders and "covered persons" (those owning or controlling 30% or more of the company's capital, including their major controllers) remain jointly and severally liable—meaning they share full responsibility—for all reclamation costs, including long-term water treatment.

• Inspections and Monitoring (Amendments to Section 517 of SMCRA):
• Inspectors must immediately report to regulators any site changes that could raise reclamation costs, triggering potential bond increases.
• Inspection reports and related information must be made available to the public electronically, in addition to other formats.

• Rulemaking Requirements:
• Within 90 days of enactment, the Secretary of the Interior (through the Office of Surface Mining Reclamation and Enforcement) must issue regulations with guidelines and benchmarks for minimum bond amounts.
• These guidelines will use data from recent bond forfeiture cases where governments completed reclamation projects.

Significant Changes to Existing Law

• Introduces specific, mandatory factors for bond calculations (e.g., inflation, 5-year closure presumption, and forfeiture costs), which were not previously detailed, making bonds more forward-looking and adaptive.
• Establishes a nationwide minimum bond amount with inflation adjustments, replacing any prior variable or lower thresholds.
• Requires automatic bond recalculations for permit transfers or revisions, and extends liability to major company owners/controllers, closing potential gaps where previous operators could avoid responsibility.
• Enhances inspector duties to proactively identify bond adjustment needs and mandates electronic public access to inspection data, improving transparency over the original law's provisions.
• Mandates new federal guidelines based on real-world forfeiture data, providing standardized tools for regulators that did not exist before.

Potential Impacts

• Government Agencies: Federal (e.g., Department of the Interior) and state regulators will face increased administrative burdens from more frequent bond reviews and adjustments, but this could reduce long-term costs by ensuring bonds cover full reclamation, minimizing taxpayer-funded cleanups from forfeitures.
• Citizens and Environment: Improves protection for communities near mines by better funding land restoration and water pollution treatment, potentially reducing abandoned "orphan" mines and associated health/environmental risks; however, higher bond costs might indirectly raise energy prices if passed on by mining companies.
• Mining Industry: Operators may experience higher upfront and ongoing financial requirements, possibly slowing new projects or increasing operational costs, but it provides clearer rules for bond predictability.
• International Relations: No direct impacts, as the bill focuses on domestic coal mining regulations.

Main Stakeholders Affected

• Coal Mining Companies and Operators: Directly impacted by stricter bond amounts, adjustments, and extended liability, affecting their financial planning and operations.
• Federal and State Regulatory Authorities: Responsible for implementing bond calculations, inspections, and adjustments, with added rulemaking and monitoring duties.
• Environmental and Community Groups: Benefit from stronger reclamation assurances, gaining better access to public data for oversight.
• Taxpayers and Governments: Protected from bearing unreimbursed cleanup costs, though short-term administrative expenses may arise.

Notable Legal, Constitutional, or Political Implications

• Legal: Bolsters enforcement under SMCRA by clarifying bond adequacy standards, potentially leading to more disputes over calculations or liability in court; joint and several liability could expand who can be sued for reclamation failures, promoting accountability without altering core permitting processes.
• Constitutional: No apparent challenges, as it regulates private industry under Congress's commerce and environmental powers without infringing on property rights or due process in a novel way.
• Political: Addresses ongoing concerns about insufficient bonds contributing to environmental degradation and public costs, potentially appealing across party lines in mining-dependent regions; introduced by House members from coal-producing states, it balances industry regulation with reclamation priorities.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Deluzio, Christopher R. [D-PA-17]

Cosponsors (2)

Rep. Lee, Summer L. [D-PA-12], Rep. Beyer, Donald S. [D-VA-8]

Recent Actions

• 2026-01-27: Referred to the House Committee on Natural Resources.
• 2026-01-27: Introduced in House
• 2026-01-27: Introduced in House

Bill Versions

• Bond Improvement and Reclamation Assurance Act of 2026 — issued 2026-01-27 — PDF (8 pages)