Coal Cleanup Taxpayer Protection Act of 2026
- Bill Number
- H.R. 9029
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Environmental Protection
- Status
- Introduced
- Latest Action
- 2026-05-26: Referred to the House Committee on Natural Resources.
- Last Updated
- 2026-06-29T18:13:13Z
AI-Generated Summary
Purpose
The legislation aims to protect taxpayers from financial liability related to the cleanup and reclamation of surface coal mining sites by strengthening bonding requirements under federal law.
Key Provisions
- Short Title: The bill is named the "Coal Cleanup Taxpayer Protection Act of 2026."
- Amendments to Bonding Rules: It updates Section 509 of the Surface Mining Control and Reclamation Act of 1977, focusing on alternative bonding systems, self-bonding, surety bonds, collateral, and executive compensation.
- Alternative Bonding System: Allows approval of state or federal alternative systems only if they meet core objectives and carry no greater financial risk to governments than standard bonding. States must submit detailed reports including 7-year histories of bond forfeitures and reclamation costs, plus 5-year financial forecasts based on fees, operator performance, market trends, participation numbers, and estimated costs.
- Self-Bonding Restrictions: Prohibits new self-bonds (where the mining company uses its own assets as security) in federal programs. Existing self-bonds must be replaced with other acceptable bonds by permit renewal or major modification. States must amend their programs within 90 days to remove self-bonding authority and require similar replacements.
- Surety Bond Limits: Requires new rules within one year to cap risks, such as limiting one surety's share of bonds in a state, requiring reinsurance on non-mining bonds, mandating collateral, and setting minimum cash assets for sureties. Existing corporate bonds must be adjusted within one year of the rules.
- Collateral Limits: Bars using coal mines, related land, processing facilities, waste sites, or low-value equipment as collateral for bonds. Non-liquid collateral must be re-evaluated every three years.
- Executive Compensation: Allows the Secretary to require salaries and bonuses of company officers as additional collateral for bonds.
Significant Changes to Existing Law
This bill modifies the Surface Mining Control and Reclamation Act of 1977 by eliminating self-bonding options, adding strict reporting and forecasting requirements for alternative systems, imposing new limits on surety bonds and collateral, and introducing executive pay as possible security. These replace prior flexibility in bonding with more protective measures against government shortfalls.
Potential Impacts
- Government Agencies: Increases oversight duties for the Secretary of the Interior and state regulators, including program amendments, rule-making, and bond evaluations, potentially raising administrative costs.
- Citizens and Taxpayers: Reduces the chance of public funds covering incomplete mine cleanups by ensuring stronger financial guarantees from operators.
- International Relations: No direct effects identified, as the bill focuses on domestic mining operations.
- Mining Industry: Operators face higher costs and requirements to secure third-party bonds or other collateral, which could affect project timelines and finances.
Main Stakeholders Affected
- Coal mining operators and permit holders, who must adjust bonding practices.
- State regulatory authorities, required to update approved programs.
- The federal Office of Surface Mining Reclamation and Enforcement (under the Secretary), responsible for approvals and new rules.
- Taxpayers, who gain protection from reclamation liabilities.
- Surety companies and financial institutions involved in issuing bonds or providing collateral.
Notable Legal, Constitutional, or Political Implications
The bill reinforces federal authority over state mining programs by mandating amendments, which could raise federalism questions about state autonomy in environmental regulation. It emphasizes taxpayer safeguards without altering core constitutional mining rights but may face political debate over balancing industry burdens with public fiscal protection. No international or major constitutional conflicts are evident in the text.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (2)
Rep. Deluzio, Christopher R. [D-PA-17], Rep. Beyer, Donald S. [D-VA-8]
Recent Actions
- 2026-05-26: Referred to the House Committee on Natural Resources.
- 2026-05-26: Introduced in House
- 2026-05-26: Introduced in House
Bill Versions
- Coal Cleanup Taxpayer Protection Act of 2026 — issued 2026-05-26 — PDF (8 pages)