WeVote
Log In

Bill

Bill

HR 9029

Coal Cleanup Taxpayer Protection Act of 2026

119th Congress Introduced by Chris Deluzio and 1 co-sponsor

H.R. 9029 strengthens coal mine reclamation bonds by ending self-bonding, tightening collateral and surety rules, and making operators provide broader financial safeguards to prote

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 9029

Overview

  • Bill: H.R. 9029
  • Session: 119th Congress
  • Title: Coal Cleanup Taxpayer Protection Act of 2026
  • Purpose: Amend the Surface Mining Control and Reclamation Act of 1977 to shift greater financial protection onto mining operators and ensure taxpayers are not financially liable for reclamation through coal mining bonds.

Main purpose and intent

  • Strengthen and reform the bonding framework for surface coal mining to reduce risk to the federal and state governments for post-mining reclamation costs.
  • Move away from self-bonding and impose stricter bonding and collateral requirements.
  • Establish federal rules to standardize and supervise bonding practices, including alternative bonding options and stricter financial safeguards.

Key provisions and changes

  1. Alternative bonding system (Section 509, amended)

    • The Secretary may approve an alternative bonding system for a State or Federal program if it achieves the same objectives as the current bonding program and does not increase financial liability to the Federal or State governments.
    • States proposing an alternative must provide a report with:
      • A 7-year history of bond forfeitures and reclamation costs, including whether forfeited funds were sufficient to complete reclamation, and engineers’ cost estimates for remaining unreclaimed mines.
      • A 5-year forecast showing financial soundness based on operator fees, performance, market projections, number of participating operators, and projected reclamation costs (including engineer estimates for unknown costs).

  2. Self-bonding and bonding reform (Section 2, subsection f)

    • Federal programs:
      • New policy: No self-bonding accepted for federal programs.
      • If a self-bond was accepted before enactment, the permittee must replace it with another bond form by the earlier of permit renewal or major permit modification.
    • State programs:
      • Within 90 days of enactment, states must amend approved programs to remove self-bond authority.
      • For existing self-bonded operations, replacement must occur by the earlier of permit renewal or major modification.

  3. Bonding standards for sureties (Section 2, subsection g)

    • Within 1 year post-enactment, the Secretary must issue rules to limit surety bonds to reduce federal/state liability, including:
      • Maximum percentage of corporate surety bonds issued by a single surety in a state.
      • Minimum percentage of surety bonds that must be reinsured by non-corporate entities.
      • Minimum collateralization for corporate sureties.
      • Minimum cash assets required as a share of bonds held by corporate sureties.
    • Existing corporate bonds must be modified or replaced to meet these rules within 1 year after the rule is issued.

  4. Collateral requirements (Section 2, subsection h)

    • Prohibits real property collateral that is coal-related assets (e.g., coal itself, mines, land above mines, coal processing facilities, waste sites, etc.) from being used as bond collateral.
    • Requires periodic re-evaluation of nonliquid collateral (every 3 years) with definitions expanding to include first liens on real estate and equipment, but excludes cash, letters of credit, certain securities, and government bonds.

  5. Executive compensation as collateral (Section 2, subsection i)

    • Allows the Secretary to require the inclusion of executive compensation (salaries and bonuses) of an applicant and affiliated companies as collateral for a bond.

Who would be affected

  • Coal mining operators and permittees across federal and state programs, particularly those subject to surface coal mining bonding requirements.
  • State regulatory authorities administering bonding programs.
  • Surety companies issuing bonds for coal mine reclamation.
  • Federal and state governments (potentially shifting financial risk burden away from taxpayers).

Procedural and timeline aspects

  • Enactment date not specified for certain provisions; key timelines include:
    • Self-bond replacement by operators: by the earlier of permit renewal or major modification.
    • State program amendments: within 90 days of enactment.
    • Bonding rule revisions for sureties: within 1 year after enactment.
    • Reassessment of collateral: ongoing every 3 years after collateral is posted.

Summary

H.R. 9029 aims to protect taxpayers by weakening self-bonding, tightening bonding standards, and introducing stricter financial safeguards for coal mining reclamation. It requires States to transition away from self-bonding, standardizes and strengthens bond collateral and surety requirements, and introduces executive compensation as potential collateral. It also allows the Secretary to approve alternative bonding systems only if they match current protections and do not increase fiscal risk, contingent on detailed financial and reclamation cost analyses from States.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.