Abandoned Mine Land Reclamation Program
The Abandoned Mine Land (AML) Reclamation Program uses fees paid by present-day coal mining companies to reclaim
coal mines abandoned before 1977. This makes these areas safer for people and the environment. The Surface Mining Control and Reclamation Act (SMCRA) of 1977 created this program. The program sets standards for today’s coal companies as they reclaim past mining areas while they mine others and to post bonds to cover the cost if unable to reclaim current coal mines.
Abandoned mine land areas
Abandoned mines pose risks to people and the environment. They can contaminate ground water, emit toxic waste, and cause injury when unsteady infrastructures collapse.
State and tribal AML programs rate abandoned mine areas on a priority scale of 1 to 3, as defined by federal law. Mines rated 1 and 2 are high priority and are addressed first, with a few exceptions.
- Priority 1: Protection of public health, safety, and property from extreme danger of adverse effects of coal mining practices pre-1977, including restoration of land, water, and the environment
- Priority 2: Protection of public health and safety from adverse effects of coal mining practices pre-1977, including restoration of land, water, and the environment
- Priority 3: Restoration of land and water resources and the environment previously degraded by adverse effects of coal mining practices pre-1977
Map of sites
To see AML data by location, visit OSMRE’s data site and click on ‘Mapping’ in the navigation bar.
To see data by completed, funded, and unfunded sites, click on ‘Summary.’
Areas undergoing or requiring reclamation
The federal AML Reclamation Program distributes funds for reclamation to the state and tribal AML programs with remaining Priority 1 and 2 sites.
State and tribal AML programs use funds to prepare for reclamation projects, including:
- permitting processes
- environmental assessments
- site surveys
- development of reclamation plans
After completing project preparation, funds are used for construction to reclaim the site.
OSMRE is required to report measurable goals to Congress. One of their key measures is the number of abandoned mine land acres reclaimed.
Revenue and disbursements
Fees paid by coal mine operators fund the AML Reclamation Program.
Companies pay a per-ton fee to OSMRE:
- $0.28/ton on surface mined coal
- $0.12/ton on deep-mined coal (subsurface)
- $0.08/ton on lignite
Congress set the current rates when the fee was extended in the Tax Relief and Health Care Act of 2006, lowering the rates 20% from the original amounts set in 1977.
Interest from AML fees pays for a portion of the costs for health care plans for the United Mine Workers of America (UMWA).
Distribution to states
Since passage of the Tax Relief and Health Care Act of 2006, distribution of AML grants are mandatory. Prior to 2006, distribution was subject to Congress’ annual appropriations process.
The amount states and tribes receive each year in annual payments varies depending on the fees collected during the previous fiscal year (i.e., this fiscal year’s fees fund next fiscal year’s grants).
The statute requires the government to distribute AML Reclamation Program funds collected during the previous fiscal year as follows:
- State and tribal share grants: Non-certified states receive 50% of the AML revenue originating from coal production in their states. This accounts for 50% of overall distribution of AML fees in a given year. Certified states receive amounts equal to their respective share grant totals sourced from the Treasury’s General Fund.
- Historic coal grants: 30% of overall AML fees go toward Historic Coal Grants for non-certified states. OSMRE allocates Historic Coal grants based on each state’s percentage of coal tonnage produced prior to 1977. Congress created Historic Coal grants so that states with large numbers of abandoned mines, but little current coal production, would not be left without funds to reclaim them.
- Federal expenditures (including minimum program make-up grants): 20% of AML fees goes toward federal expenditures. These funds must first be used to fund Minimum Program Make-Up grants to non-certified states. These ensure that non-certified states receive at least $3 million a year or the amount necessary to reclaim their remaining high priority AML areas, whichever is lower. OSMRE uses the remaining amount to fund operations, emergency projects, and other efforts.
Review OSMRE grant distribution reports to track annual state grants.
State and tribal spending
State and tribal AML programs use funds to prepare for reclamation through an extensive permitting process, environmental assessments, site surveys, and the development of reclamation plans. Generally, states and tribes must reclaim all Priority 1 and 2 coal sites before using AML funds on Priority 3 coal sites, but a number of exceptions exist.
In addition to scheduled reclamation projects, states and tribes can use AML funds for related efforts, such as:
- covering the costs of administering and enforcing their AML programs
- funding emergency AML reclamation projects
- setting aside annual funds (up to 30%) for projects related to acid mine drainage
OSMRE also maintains a list of contacts for states, Indian tribes, and OSMRE offices.
When a state or tribe has reclaimed high priority coal sites, they may be eligible for “certification.” The source of their funds from the Department of the Interior’s Office of Surface Mining Reclamation and Enforcement (OSMRE) changes; instead of receiving funds from AML fees, they receive funds from the General Fund of the U.S. Treasury. These funds can be used for other purposes, including reclaiming abandoned hardrock mine sites. A certified state or tribe may still have abandoned coal mine areas to reclaim.
You can track certified states and tribes by reviewing the annual AML grant distributions.
The AML fund
Prior to 2006, companies often paid more money into the AML fund each year than Congress chose to appropriate. A large, unappropriated balance grew over time.
Growth of the AML fund’s unappropriated balance
Interest on the fund
In 1990, Congress authorized the federal government to invest the unappropriated balance in U.S. Treasury Securities. Since then, the unappropriated balance has earned $1.5 billion in interest. Since 1996, almost all of the interest on the AML fund has gone toward paying a portion of the cost for some health care plans for the United Mine Workers of America.
Grants to states and tribes
By 2007, the state and tribal share of the unappropriated balance had reached $1.34 billion.
Congress resolved to pay states’ and tribes’ unappropriated balance out in the form of “Prior Balance Replacement Grants,” which pay states and tribes 50% of what companies operating in their jurisdictions paid into the AML Fund from 2008–2014. Payments were made over 7 years in equal, annual installments.
OSMRE paid states and tribes a collective total of $1.3 billion in roughly equal installments over the course of seven years. This money did not come directly from the AML Fund, but was sourced directly from the Treasury’s General Fund.
The fund today
As of November 2017, the fund’s balance stood at $2.387 billion. The reauthorization for AML fees expires in fiscal year 2021. The unappropriated balance has been divided into different allocations to be used starting in fiscal year 2023, as follows:
Allocation of unappropriated balance
- Historic coal grants: 68.3%
- Federal expenses (subject to congressional appropriation): 19.9%
- States and tribes: 10.7%
- Reserve for United Mine Workers of America (UMWA) health care plans and retirement funds: 5.1%