H.R. 7249: Bond Improvement and Reclamation Assurance Act of 2026

This bill, known as the Bond Improvement and Reclamation Assurance Act of 2026, aims to amend existing legislation related to surface coal mining and the associated reclamation processes. Specifically, it focuses on the requirements and adequacy of performance bonds that mining operators must secure to ensure proper reclamation of mined lands. Here’s a breakdown of its main provisions:

Permit Performance Bonds

The bill introduces changes to the requirements for permit performance bonds, which are financial guarantees that mining operators must post before they begin mining activities. Key elements include:

• Operators must file a bond with the regulatory authority upon approval of their mining permit application.
• The bond must cover the area of land where mining operations will take place, and for any additional areas, further bonds must be filed.
• The amount of the bond will be determined by the regulatory authority based on:
  • Reclamation requirements outlined in the permit.
  • The difficulty of reclamation influenced by factors such as site topography, geology, hydrology, and vegetation potential.
  • The bond must be sufficient to ensure that, should the bond be forfeited, the regulatory authority can complete the required reclamation work.
  • The bond amount must account for the presumption that the mine will close five years after the permit is issued.
• The bill mandates that the minimum bond amount must not be less than $52,593, with adjustments for inflation based on the Consumer Price Index.

Adjustments of Bonds

The legislation allows for adjustments to the bond amounts as circumstances change, including:

• Changes in affected land areas.
• Cost fluctuations for reclamation due to factors like water pollution, market conditions, or unexpected mine closures.
• Revisions to the permit or reclamation plan.

Revisions of Permits

Before a mining permit can be transferred or approved for revision, the regulatory authority must recalculate and potentially adjust the bond amount required. Notably:

• The existing permit holder and those involved (such as owners) remain liable for reclamation costs even if the permit is transferred.
• Individuals or entities holding a significant interest in the permit holder (30% or more) are also jointly liable.

Inspections and Monitoring

The bill enhances requirements for inspecting mining operations by:

• Mandating that inspectors inform regulatory authorities about any changes observed that might increase reclamation costs or require adjustments to the bond.
• Requiring that inspection information is made publicly accessible and provided electronically.

Rulemaking and Guidelines

It tasks the Secretary of the Interior with issuing regulations within 90 days of the bill's enactment to establish guidelines for determining minimum bond amounts based on data from recent reclamation projects. This aims to ensure that the bond requirements reflect the current realities of reclamation costs and challenges.

Conclusion

In summary, this bill seeks to enhance the financial safeguards related to surface coal mining by updating the requirements for performance bonds, ensuring that mining companies are adequately prepared to cover the costs of reclamation even in the event of unforeseen circumstances.

Relevant Companies

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