H.R. 9029: Coal Cleanup Taxpayer Protection Act of 2026

The "Coal Cleanup Taxpayer Protection Act of 2026" is a proposed bill that aims to modify existing laws governing the reclamation of coal mining operations to reduce financial risks for taxpayers. Below are the key provisions of the bill in simple terms:

1. Purpose and Intent

The bill is designed to protect taxpayers from potential liabilities associated with the restoration and reclamation of lands affected by surface coal mining activities. It seeks to ensure that companies involved in coal mining are financially responsible for the costs associated with cleaning up after their operations.

2. Changes to Bonding Requirements

The bill proposes several important changes to how bonds, which ensure that mining companies can cover reclamation costs, are handled:

• Alternative Bonding Systems: States may establish alternative bonding systems as long as they meet specific requirements ensuring that they do not increase financial risks to taxpayers.
• Self-Bonding Restrictions: The bill prohibits companies from using their own financial assurances (known as self-bonds) and requires them to provide bonds from external surety companies or other collateral for older permits. This aims to prevent situations where a company might underfund reclamation efforts.

3. Reporting Requirements

States that wish to use an alternative bonding system must submit thorough reports to the Secretary. These reports must include:

• A history of reclamation costs and any bond forfeitures over the past seven years.
• An estimate of future reclamation costs and forecasts demonstrating that the proposed bonding systems will be financially viable.

4. Bond Issuance and Management

The bill mandates the Secretary to create rules regarding:

• The limitations on the amount of bonds a single corporate surety can issue to mitigate risks to taxpayers.
• The asset and collateral requirements for those sureties to ensure they remain financially stable and can cover reclamation costs.

5. Restrictions on Collateral

Under the new rules, certain assets cannot be used as collateral for reclamation bonds, including:

• Coal itself
• Coal mines or property above coal mines
• Coal processing facilities and related sites

6. Reevaluation of Nonliquid Collateral

For collateral that is not cash, property values must be regularly reassessed to ensure they still meet the required standards, with evaluations occurring every three years.

7. Executive Compensation Inclusion

The bill allows the Secretary to require mining companies to include information about executive compensation when determining whether to approve bonds, thus ensuring that financial responsibility is taken into account when assessing a company's commitment to reclamation obligations.

8. Implementation Timeline

State regulatory authorities will need to amend their bonding rules within a specific timeline after the bill becomes law, ensuring alignment with the new federal requirements.

Relevant Companies

• ARCH - Arch Resources Inc. may be affected as it operates coal mining and reclamation activities and will need to adjust its bonding practices.
• CLF - Cleveland-Cliffs Inc. has operations that will require compliance if they are found to have self-bonding arrangements.