[Congressional Bills 109th Congress] [From the U.S. Government Publishing Office] [S. 2616 Introduced in Senate (IS)] 109th CONGRESS 2d Session S. 2616 To amend the Surface Mining Control and Reclamation Act of 1977 and the Mineral Leasing Act to improve surface mining control and reclamation, and for other purposes. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES April 7, 2006 Mr. Santorum (for himself and Mr. Specter) introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To amend the Surface Mining Control and Reclamation Act of 1977 and the Mineral Leasing Act to improve surface mining control and reclamation, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Surface Mining Control and Reclamation Act Amendments of 2006''. (b) Table of Contents.--The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. TITLE I--MINING CONTROL AND RECLAMATION Sec. 101. Abandoned Mine Reclamation Fund and purposes. Sec. 102. Reclamation fee. Sec. 103. Objectives of Fund. Sec. 104. Reclamation of rural land. Sec. 105. Liens. Sec. 106. Certification. Sec. 107. Remining incentives. Sec. 108. Extension of limitation on application of prohibition on issuance of permit. TITLE II--MINERAL LEASING Sec. 201. Mineral Leasing. TITLE III--COAL INDUSTRY RETIREE HEALTH BENEFIT ACT Sec. 301. Certain related persons and successors in interest relieved of liability if premiums prepaid. Sec. 302. Transfers to funds; premium relief. Sec. 303. Other provisions. TITLE I--MINING CONTROL AND RECLAMATION SEC. 101. ABANDONED MINE RECLAMATION FUND AND PURPOSES. (a) In General.--Section 401 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1231) is amended-- (1) in subsection (c)-- (A) by striking paragraphs (2) and (6); and (B) by redesignating paragraphs (3), (4), and (5) and paragraphs (7) through (13) as paragraphs (2) through (11), respectively; (2) in subsection (d), by striking ``Moneys'' and inserting ``Except as provided in subsection (f), moneys''; (3) in subsection (e)-- (A) in the second sentence, by striking ``the needs of such fund'' and inserting ``achieving the purposes of the transfers under section 402(h)''; and (B) in the third sentence, by inserting before the period the following: ``for the purpose of the transfers under section 402(h)''; and (4) by adding at the end the following: ``(f) General Limitation on Obligation Authority.-- ``(1) In general.--From amounts deposited into the fund under subsection (b), the Secretary shall distribute during each fiscal year beginning after September 30, 2007, an amount determined under paragraph (2). ``(2) Amounts.-- ``(A) For fiscal years 2008 through 2022.--For each of fiscal years 2008 through 2022, the amount distributed by the Secretary under this subsection shall be equal to-- ``(i) the amount deposited into the fund under subsection (b) for the preceding fiscal year; minus ``(ii) the amount expended by the Secretary under section 402(g)(3)(D) for the preceding fiscal year. ``(B) Fiscal years 2023 and thereafter.--For fiscal year 2023 and each fiscal year thereafter, to the extent that funds are available, the Secretary shall distribute an amount equal to the amount distributed under subparagraph (A) during fiscal year 2022. ``(3) Distribution.--For each fiscal year, of the amount to be distributed pursuant to paragraph (2), the Secretary shall distribute-- ``(A) the amount allocated under section 402(g)(5), plus any amount reallocated under section 411(h)(4), for grants to States and Indian tribes under section 402(g)(5); ``(B) from any amounts not distributed under subparagraph (A), the amount allocated under section 402(g)(8); and ``(C) from any amounts not distributed under subparagraphs (A) and (B), in any area under section 402(g)(3) or 402(g)(4). ``(4) Availability.--Amounts in the fund available to the Secretary for obligation under this subsection shall be available until expended. ``(5) Addition.-- ``(A) In general.--Subject to subparagraph (B), the amount distributed under this subsection for each fiscal year shall be in addition to the amount appropriated from the fund during the fiscal year. ``(B) Exceptions.--Notwithstanding paragraph (3), the amount distributed under this subsection for the first 4 fiscal years beginning on and after October 1, 2007, shall be equal to the following percentage of the amount otherwise required to be distributed: ``(i) 50 percent in fiscal year 2008. ``(ii) 50 percent in fiscal year 2009. ``(iii) 75 percent in fiscal year 2010. ``(iv) 75 percent in fiscal year 2011.''. (b) Conforming Amendment.--Section 712(b) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1302(b)) is amended by striking ``section 401(c)(11)'' and inserting ``section 401(c)(9)''. SEC. 102. RECLAMATION FEE. (a) Amounts.-- (1) Fiscal years 2008-2012.--Effective October 1, 2007, section 402(a) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(a)) is amended-- (A) by striking ``35'' and inserting ``31.5''; (B) by striking ``15'' and inserting ``13.5''; and (C) by striking ``10 cents'' and inserting ``9 cents''. (2) Fiscal years 2013-2021.--Effective October 1, 2012, section 402(a) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(a)) (as amended by paragraph (1)) is amended-- (A) by striking ``31.5'' and inserting ``28''; (B) by striking ``13.5'' and inserting ``12''; and (C) by striking ``9 cents'' and inserting ``8 cents''. (b) Duration.--Effective June 30, 2006, section 402(b) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(b)) is amended by striking ``June 30, 2006'' and all that follows through the end of the sentence and inserting ``September 30, 2021.''. (c) Allocation of Funds.--Section 402(g) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(g)) is amended-- (1) in paragraph (1)(D)-- (A) by inserting ``(except for grants awarded during fiscal years 2008, 2009, and 2010 to the extent not expended within 5 years)'' after ``this paragraph''; and (B) by striking ``in any area under paragraph (2), (3), (4), or (5)'' and inserting ``under paragraph (5)''; (2) by striking paragraph (2) and inserting: ``(2) In making the grants referred to in paragraph (1)(C) and the grants referred to in paragraph (5), the Secretary shall ensure strict compliance by the States and Indian tribes with the priorities described in section 403(a) until a certification is made under section 411(a).''; (3) in paragraph (3)-- (A) in the matter preceding subparagraph (A), by striking ``paragraphs (2) and'' and inserting ``paragraph''; (B) in subparagraph (A), by striking ``401(c)(11)'' and inserting ``401(c)(9)''; and (C) by adding at the end the following: ``(E) For the purpose of paragraph (8).''; (4) in paragraph (5)-- (A) by inserting ``(A)'' after ``(5)''; (B) in the first sentence, by striking ``40'' and inserting ``60''; (C) in the last sentence, by striking ``Funds allocated or expended by the Secretary under paragraphs (2), (3), or (4)'' and inserting ``Funds made available under paragraph (3) or (4)''; and (D) by adding at the end the following: ``(B) Any amount that is reallocated and available under section 411(h)(3) shall be in addition to amounts that are allocated under subparagraph (A).''; and (5) by striking paragraphs (6) through (8) and inserting the following: ``(6)(A) Any State with an approved abandoned mine reclamation program pursuant to section 405 may receive and retain, without regard to the 3-year limitation referred to in paragraph (1)(D), up to 30 percent of the total of the grants made annually to the State under paragraphs (1) and (5) if those amounts are deposited into an acid mine drainage abatement and treatment fund established under State law, from which amounts (together with all interest earned on the amounts) are expended by the State for the abatement of the causes and the treatment of the effects of acid mine drainage in a comprehensive manner within qualified hydrologic units affected by coal mining practices. ``(B) In this paragraph, the term `qualified hydrologic unit' means a hydrologic unit-- ``(i) in which the water quality has been significantly affected by acid mine drainage from coal mining practices in a manner that adversely impacts biological resources; and ``(ii) that contains land and water that are-- ``(I) eligible pursuant to section 404 and include any of the priorities described in section 403(a); and ``(II) the subject of expenditures by the State from the forfeiture of bonds required under section 509 or from other States sources to abate and treat acid mine drainage. ``(7) In complying with the priorities described in section 403(a), any State or Indian tribe may use amounts available in grants made annually to the State or tribe under paragraphs (1) and (5) for the reclamation of eligible land and water described in section 403(a)(3) before the completion of reclamation projects under paragraphs (1) and (2) of section 403(a) only if the expenditure of funds for the reclamation is done in conjunction with the expenditure of funds for reclamation projects under paragraphs (1) and (2) of section 403(a). ``(8)(A) In making the grants referred to in paragraph (1)(C), the Secretary, using amounts allocated to a State or Indian tribe under subparagraph (A) or (B) of paragraph (1) or to the extent amounts are available to the Secretary under section 401(f), shall ensure that the total grant awards of not less than $3,000,000 annually are made to each State and each Indian tribe. ``(B) Notwithstanding any other provision of law, this paragraph applies to the States of Tennessee and Missouri.''. (d) Transfers of Interest Earned by Abandoned Mine Reclamation Fund.--Section 402 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232) is amended by striking subsection (h) and inserting the following: ``(h) Transfers of Interest Earned by Fund.-- ``(1) In general.-- ``(A) Transfers to combined benefit fund.--As soon as practicable after the beginning of fiscal year 2007 and each fiscal year thereafter, and before making any allocation with respect to the fiscal year under subsection (g), the Secretary shall use an amount not to exceed the amount of interest that the Secretary estimates will be earned and paid to the fund during the fiscal year to make the transfer described in paragraph (2)(A). ``(B) Transfers to 1992 and 1993 plans.--As soon as practicable after the beginning of fiscal year 2008 and each fiscal year thereafter, and before making any allocation with respect to the fiscal year under subsection (g), the Secretary shall use an amount not to exceed the amount of interest that the Secretary estimates will be earned and paid to the fund during the fiscal year (reduced by the amount used under subparagraph (A)) to make the transfers described in paragraphs (2)(B) and (2)(C). ``(2) Transfers described.--The transfers referred to in paragraph (1) are the following: ``(A) United mine workers of america combined benefit fund.--A transfer to the United Mine Workers of America Combined Benefit Fund equal to the amount that the trustees of the Combined Benefit Fund estimate will be expended from the fund for the fiscal year in which the transfer is made, reduced by-- ``(i) the amount the trustees of the Combined Benefit Fund estimate the Combined Benefit Fund will receive during the fiscal year in-- ``(I) required premiums; and ``(II) payments paid by Federal agencies in connection with benefits provided by the Combined Benefit Fund; and ``(ii) the amount the trustees of the Combined Benefit Fund estimate will be expended during the fiscal year to provide health benefits to beneficiaries who are unassigned beneficiaries solely as a result of the application of section 9706(h)(1) of the Internal Revenue Code of 1986, but only to the extent that such amount does not exceed the amounts described in section 35(c)(1) of the Mineral Leasing Act (30 U.S.C. 191(c)) that the Secretary estimates will be available to pay such estimated expenditures. ``(B) United mine workers of america 1992 benefit plan.--A transfer to the United Mine Workers of America 1992 Benefit Plan, in an amount equal to the difference between-- ``(i) the amount that the trustees of the 1992 UMWA Benefit Plan estimate will be expended from the 1992 UMWA Benefit Plan during the next calendar year to provide the benefits required by the 1992 UMWA Benefit Plan on the date of enactment of this subparagraph; minus ``(ii) the amount that the trustees of the 1992 UMWA Benefit Plan estimate the 1992 UMWA Benefit Plan will receive during the next calendar year in required monthly per beneficiary premiums, including the amount of any security provided to the 1992 UMWA Benefit Plan that is available for use in the provision of benefits. ``(C) Multiemployer health benefit plan.--A transfer to the Multiemployer Health Benefit Plan established after July 20, 1992, by the parties that are the settlors of the 1992 UMWA Benefit Plan referred to in subparagraph (B), in an amount equal to-- ``(i) the amount that the trustees of the Multiemployer Health Benefit Plan estimate will be expended from the Plan during the next calendar year, to provide benefits no greater than those provided by the Plan as of December 31, 2006; and ``(ii) calculated with respect to those beneficiaries actually enrolled in the Plan as of December 31, 2006, who are eligible to receive benefits under the Plan on the first day of the calendar year for which the transfer is made. ``(D) Individuals considered enrolled.--For purposes of subparagraph (C), any individual who was eligible to receive benefits from the Plan as of the date of enactment of this subsection, even though benefits were being provided to the individual pursuant to a settlement agreement approved by order of a bankruptcy court entered on or before September 30, 2004, will be considered to be actually enrolled in the Plan and shall receive benefits from the Plan beginning on December 31, 2006. ``(3) Adjustment.--If, for any fiscal year, the amount of a transfer under subparagraph (A), (B), or (C) of paragraph (2) is more or less than the amount required to be transferred under that subparagraph, the Secretary shall appropriately adjust the amount transferred under that subparagraph for the next fiscal year. ``(4) Additional amounts.-- ``(A) Previously credited interest.-- Notwithstanding any other provision of law, any interest credited to the fund that has not previously been transferred to the Combined Benefit Fund referred to in paragraph (2)(A) under this section shall be used-- ``(i) to transfer to the Combined Benefit Fund such amounts as are estimated by the trustees of the Combined Benefit Fund to offset the amount of any deficit in net assets in the Combined Benefit Fund; and ``(ii) to the extent any such interest remains after the transfer under clause (i), to make the transfers described in subparagraphs (A), (B), and (C) of paragraph (2). ``(B) Previously allocated amounts.--All amounts allocated under subsection (g)(2) before the date of enactment of this subparagraph for the program described in section 406, but not appropriated before that date, shall be available to the Secretary to make the transfers described in paragraph (2). ``(5) Limitations.-- ``(A) Availability of funds for next fiscal year.-- The Secretary may make transfers under subparagraphs (B) and (C) of paragraph (2) for a calendar year only if the Secretary determines, using actuarial projections provided by the trustees of the Combined Benefit Fund referred to in paragraph (2)(A), that amounts will be available under paragraph (1), after the transfer, for the next fiscal year for making the transfer under paragraph (2)(A). ``(B) Rate of contributions of obligors.-- ``(i) In general.-- ``(I) Rate.--A transfer under paragraph (2)(C) shall not be made for a calendar year unless the persons that are obligated to contribute to the plan referred to in paragraph (2)(C) on the date of the transfer are obligated to make the contributions at rates that are no less than those in effect on the date of enactment of this subsection. ``(II) Application.--The contributions described in subclause (I) shall be applied first to the provision of benefits to those plan beneficiaries who are not described in paragraph (2)(C)(ii). ``(ii) Initial contributions.--From the date of enactment of the Surface Mining Control and Reclamation Act Amendments of 2006 through December 31, 2010, the persons that, on the date of enactment of that Act, are obligated to contribute to the plan referred to in paragraph (2)(C) shall be obligated, collectively, to make contributions equal to the amount required to be transferred under paragraph (2)(C), less the amount actually transferred due to the operation of subparagraph (C). ``(iii) Division.--The collective annual contribution obligation required under clause (ii) shall be divided among the persons subject to the obligation, and applied uniformly, based on the hours worked for which contributions referred to in clause (i) would be owed. ``(C) Phase-in of transfers.--For each of calendar years 2008 through 2010, the transfers required under subparagraphs (B) and (C) of paragraph (2) shall equal the following amounts: ``(i) For calendar year 2008, the Secretary shall make transfers equal to 25 percent of the amounts that would otherwise be required under subparagraphs (B) and (C) of paragraph (2). ``(ii) For calendar year 2009, the Secretary shall make transfers equal to 50 percent of the amounts that would otherwise be required under subparagraphs (B) and (C) of paragraph (2). ``(iii) For calendar year 2010, the Secretary shall make transfers equal to 75 percent of the amounts that would otherwise be required under subparagraphs (B) and (C) of paragraph (2).''. SEC. 103. OBJECTIVES OF FUND. Section 403 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1233) is amended-- (1) in subsection (a)-- (A) in paragraph (1), by striking ``general welfare,''; (B) in paragraph (2)-- (i) by striking ``health, safety, and general welfare'' and inserting ``health and safety''; and (ii) by inserting ``and'' after the semicolon at the end; (C) in paragraph (3), by striking the semicolon at the end and inserting a period; and (D) by striking paragraphs (4) and (5); (2) in subsection (b)-- (A) by striking the subsection heading and inserting ``Water Supply Restoration.--''; and (B) in paragraph (1), by striking ``up to 30 percent of the''; and (3) in the second sentence of subsection (c), by inserting ``, subject to the approval of the Secretary,'' after ``amendments''. SEC. 104. RECLAMATION OF RURAL LAND. (a) Administration.--Section 406(h) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1236(h)) is amended by striking ``Soil Conservation Service'' and inserting ``Natural Resources Conservation Service''. (b) Authorization of Appropriations for Carrying Out Rural Land Reclamation.--Section 406 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1236) is amended by adding at the end the following: ``(i) There are authorized to be appropriated to the Secretary of Agriculture, from amounts in the Treasury other than amounts in the fund, such sums as may be necessary to carry out this section.''. SEC. 105. LIENS. Section 408(a) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1238) is amended in the last sentence by striking ``who owned the surface prior to May 2, 1977, and''. SEC. 106. CERTIFICATION. Section 411 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1240a) is amended-- (1) in subsection (a)-- (A) by inserting ``(1)'' before the first sentence; and (B) by adding at the end the following: ``(2)(A) The Secretary may, on the initiative of the Secretary, make the certification referred to in paragraph (1) on behalf of any State or Indian tribe referred to in paragraph (1) if on the basis of the inventory referred to in section 403(c) all reclamation projects relating to the priorities described in section 403(a) for eligible land and water pursuant to section 404 in the State or tribe have been completed. ``(B) The Secretary shall only make the certification after notice in the Federal Register and opportunity for public comment.''; and (2) by adding at the end the following: ``(h) Payments to States and Indian Tribes.-- ``(1) In general.-- ``(A) Payments.--From funds referred to in section 35(a) of the Mineral Leasing Act (30 U.S.C. 191(a)) that are paid into the Treasury after the date of the enactment of this subsection and that are available to be paid to States under section 35 of that Act, reserved as part of the reclamation fund under that section, or paid under section 35(c) of that Act, the Secretary shall make payments to States or Indian tribes for the amount due for the aggregate unappropriated amount allocated to the State or Indian tribe under subparagraph (A) or (B) of section 402(g)(1). ``(B) Amount due.--In this paragraph, the term `amount due' means the unappropriated amount allocated to a State or Indian tribe before October 1, 2007, under subparagraph (A) or (B) of section 402(g)(1). ``(C) Schedule.--Subject to subparagraph (E), payments under subparagraph (A) shall be made in 10 equal annual installments, beginning with fiscal year 2008. ``(D) Use of funds.-- ``(i) Certified states and indian tribes.-- A State or Indian tribe that makes a certification under subsection (a) in which the Secretary concurs shall use any amounts provided under this paragraph for the purposes established by the State legislature or tribal council of the Indian tribe, with priority given for addressing the impacts of mineral development. ``(ii) Uncertified states and indian tribes.--A State or Indian tribe that has not made a certification under subsection (a) in which the Secretary has concurred shall use any amounts provided under this paragraph for the purposes described in section 403. ``(E) Phase-in of payments.-- ``(i) In general.--Notwithstanding any other provision of this Act, the first 3 annual installments paid to any State or Indian tribe beginning with fiscal year 2008 shall be reduced, respectively, to 25 percent, 50 percent, and 75 percent of the amounts otherwise required under subparagraph (A). ``(ii) Installments.--Amounts withheld from the first 3 annual installments as provided under subparagraph (C) shall be paid in 2 equal annual installments beginning with fiscal year 2018. ``(2) Subsequent state and indian tribe share for certain certified states and indian tribes.-- ``(A) In general.--From moneys referred to in section 35(a) of the Mineral Leasing Act (30 U.S.C. 191(a)) that are paid into the Treasury after the date of the enactment of this subsection and that are available to be paid to States or Indian tribes under section 35(c) of that Act, the Secretary shall pay to each qualified State or Indian tribe, on a proportional basis, an amount equal to the sum of the aggregate unappropriated amount allocated on or after October 1, 2007, to the qualified State or Indian tribe under subparagraph (A) or (B) of section 402(g)(1). ``(B) Qualified state or indian tribe defined.--In this paragraph the term `qualified State or Indian tribe' means a State or Indian tribe for which a certification is made under subsection (a) in which the Secretary concurs and in which there are public domain lands available for leasing under the Mineral Leasing Act (30 U.S.C. 181 et seq.). ``(3) Manner of payment.-- ``(A) In general.--Subject to subparagraph (B), payments to States or Indian tribes under this subsection shall be made, without regard to any limitation in section 401(d), in the same manner as if paid under section 35 of the Mineral Leasing Act (30 U.S.C. 191) and concurrently with payments to States under that section. ``(B) Initial payments.--The first 3 payments made to any State or Indian tribe shall be reduced to 25 percent, 50 percent, and 75 percent, respectively, of the amounts otherwise required under paragraph (2)(A). ``(4) Reallocation.-- ``(A) In general.--The amount allocated to any State or Indian tribe under subparagraph (A) or (B) of section 402(g)(1) that is paid to the State or Indian tribe as a result of a payment under paragraph (1) or (2) shall be reallocated and available for grants under section 402(g)(5). ``(B) Allocation.--The grants shall be allocated based on the amount of coal historically produced before August 3, 1977, in the same manner as under section 402(g)(5).'' SEC. 107. REMINING INCENTIVES. Title IV of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1231 et seq.) is amended by adding at the following: ``SEC. 415. REMINING INCENTIVES. ``(a) In General.--Notwithstanding any other provision of this Act, the Secretary may, after opportunity for public comment, promulgate regulations that describe conditions under which amounts in the fund may be used to provide incentives to promote remining of eligible land under section 404 in a manner that leverages the use of amounts from the fund to achieve more reclamation with respect to the eligible land than would be achieved without the incentives. ``(b) Requirements.--Any regulations promulgated under subsection (a) shall specify that the incentives shall apply only if the Secretary determines, with the concurrence of the State regulatory authority referred to in title V, that, without the incentives, the eligible land would not be likely to be remined and reclaimed. ``(c) Incentives.-- ``(1) In general.--Incentives that may be considered for inclusion in the regulations promulgated under subsection (a) include, but are not limited to-- ``(A) a rebate or waiver of the reclamation fees required under section 402(a); and ``(B) the use of amounts in the fund to provide financial assurance for remining operations in lieu of all or a portion of the performance bonds required under section 509. ``(2) Limitations.-- ``(A) Use.--A rebate or waiver under paragraph (1)(A) shall be used only for operations that-- ``(i) remove or reprocess abandoned coal mine waste; or ``(ii) conduct remining activities that meet the priorities specified in paragraph (1) or (2) of section 403(a). ``(B) Amount.--The amount of a rebate or waiver provided as an incentive under paragraph (1)(A) to remine or reclaim eligible land shall not exceed the estimated cost of reclaiming the eligible land under this section.''. SEC. 108. EXTENSION OF LIMITATION ON APPLICATION OF PROHIBITION ON ISSUANCE OF PERMIT. Section 510(e) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1260(e)) is amended in the last sentence by striking ``2004'' and inserting ``2020''. TITLE II--MINERAL LEASING SEC. 201. MINERAL LEASING. Section 35 of the Mineral Leasing Act (30 U.S.C. 191) is amended-- (1) in subsection (a)-- (A) by striking ``subsection (b)'' and inserting ``subsections (b), (c), and (d)''; (B) by striking ``50 per centum thereof shall be paid by the Secretary of the Treasury to the State other than Alaska'' and inserting ``each State other than Alaska shall be paid by the Secretary of the Treasury an amount equal to 50 per centum of the amount received''; and (C) by inserting ``of the total'' after ``40 per centum''; (2) in subsection (b)-- (A) by striking ``(b) In determining'' and inserting the following: ``(b) Determination of Payment Amounts.-- ``(1) In general.--In determining''; and (B) by adding at the end the following: ``(3) Basis for payment calculation.--The calculation of the 50 per centum to be paid to States under subsection (a) shall be made based on all money received, and shall not be reduced by payments made under subsection (c).''; and (3) by adding at the end the following: ``(c) Amounts Received From Coal Leases.--From amounts referred to in subsection (a) that are from sales, bonuses, royalties (including interest charges), and rentals collected from coal leases and are paid into the Treasury of the United States after the date of the enactment of this subsection, the Secretary shall for fiscal year 2008 and each fiscal year thereafter, make the following payments: ``(1) The amount that the trustees of the Combined Fund (as defined in section 9701(a)(5) of the Internal Revenue Code of 1986) estimate will be expended from premium accounts maintained by the fund for the fiscal year to provide benefits for beneficiaries who are unassigned beneficiaries solely as a result of the application of section 9706(h)(1) of the Internal Revenue Code of 1986, subject to the following limitations: ``(A) For fiscal year 2008, the amount paid under this paragraph shall equal 45 percent of the amount that would otherwise be required. ``(B) For fiscal year 2009, the amount paid under this paragraph shall equal 60 percent of the amount that would otherwise be required. ``(C) For fiscal year 2010, the amount paid under this paragraph shall equal 85 percent of the amount that would otherwise be required. ``(2) On certification by the trustees of any plan described in section 402(h)(2) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(h)(2)) that the amount available for transfer by the Secretary pursuant to that section (determined after application of any limitation under section 402(h)(5) of such Act) is less than the amount required to be transferred, the Secretary shall pay to the plan (after the subtractions for payments made under subsection (e)) the amount necessary to meet the requirement of section 402(h)(2) of that Act. ``(3) To the Combined Fund (as defined in section 9701(a)(5) of the Internal Revenue Code of 1986), $9,000,000 on October 1, 2007, $9,000,000 on October 1, 2008, and $9,000,000 on October 1, 2009 (which amounts shall not be exceeded) to provide a refund of any premium (as described in section 9704(a) of the Internal Revenue Code of 1986) paid on or before September 7, 2000, to the Combined Fund, plus interest on the premium calculated at the rate of 7.5 percent per year, on a proportional basis and to be paid not later than 60 days after the date on which each payment is received by the Combined Fund, to those signatory operators (to the extent that the Combined Fund has not previously returned the premium amounts to the operators), or any related persons to the operators (as defined in section 9701(c) of the Internal Revenue Code of 1986), or their heirs, successors, or assigns who have been denied the refunds as the result of final judgments or settlements if prior to the date of enactment of this subsection the signatory operator (or any related person to the operator)-- ``(A) had all of its beneficiary assignments made under section 9706 of the Internal Revenue Code of 1986 voided by the Commissioner of the Social Security Administration; ``(B) was subject to a final judgment or final settlement of litigation adverse to a claim by the operator that the assignment of beneficiaries under section 9706 of the Internal Revenue Code of 1986 was unconstitutional as applied to the operator; and ``(C) paid to the Combined Fund any premium amount that had not been refunded. ``(4) From any additional available moneys referred to in this subsection, payments for amounts referred to in sections 411(h)(1)(A) and 411(h)(2)(A) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1240a(h)(1)(A) and 1240a(h)(2)(A)). ``(d) The calculation of the 40 per centum to be paid to the reclamation fund under subsection (a) shall be made based on all money received, and shall not be reduced by payments made under subsection (c). ``(e)(1) Notwithstanding subsection (a), for each of fiscal years 2007 through 2021, from all excess receipts received from sales, bonuses, royalties (including interest charges), and rentals collected from coal leases and referred to in subsection (a) that are deposited into the Treasury, all excess receipts up to $320,000,000 shall be used by the Secretary to make payments to meet the requirements of section 402(h)(2) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(h)(2)). ``(2) For purposes of paragraph (1), excess receipts shall be the amount calculated on the basis of the difference between the prevailing market prices on which the sales, bonuses, royalties, and rentals were made and 110 percent of the projected market prices for that fiscal year, as contained in the economic assumptions underlying the Concurrent Resolution on the Budget, under section 301 of the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. 632). ``(3) Funds for payment under paragraph (1) shall be available to the Secretary for obligation under this Act without fiscal year limitation, to remain available until expended. ``(f) In the event that amounts available to the Secretary of the Treasury for the payments described in subsection (c) are insufficient for the Secretary to make each described payment in full for any fiscal year, the Secretary shall adjust the payments so that-- ``(1) each payment for the fiscal year is a percentage of the amount described; and ``(2) the percentage paid is the same for all payments made under those subsections for the fiscal year.''. TITLE III--COAL INDUSTRY RETIREE HEALTH BENEFIT ACT SEC. 301. CERTAIN RELATED PERSONS AND SUCCESSORS IN INTEREST RELIEVED OF LIABILITY IF PREMIUMS PREPAID. (a) Combined Benefit Fund.-- (1) In general.--Section 9704 of the Internal Revenue Code of 1986 (relating to liability of assigned operators) is amended by adding at the end the following new subsection: ``(j) Prepayment of Premium Liability.-- ``(1) In general.--If-- ``(A) 1 or more assigned operators to which this subsection applies (or any related person to any such assigned operator) are members of a controlled group of corporations (within the meaning of section 52(a)) the common parent of which-- ``(i) is a corporation the shares of which are publicly traded on a United States exchange, and ``(ii) is jointly and severally liable for any premium under this section which (but for this subsection) would be required to be paid by the assigned operators or related person, and ``(B) a payment meeting the requirements of paragraph (3) is made to the Combined Fund by or on behalf of the assigned operators or related person, then such common parent (and no other person) shall be liable for any premium under this section for which the assigned operators or related person would otherwise be liable. ``(2) Assigned operators to which subsection applies.--This subsection shall apply to any assigned operator if-- ``(A) the assigned operator (or a related person to the assigned operator)-- ``(i) made contributions to the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan for employment during the period covered by the 1988 agreement; and ``(ii) is not a 1988 agreement operator; and ``(B) the assigned operator (and all related persons to the assigned operator) are not actively engaged in the production of coal as of July 1, 2005. A person shall not fail to be treated as an assigned operator to which this subsection applies solely because the person ceases to be an assigned operator by reason of section 9706(h)(1) if the person otherwise meets the requirements of this subsection and is liable for the payment of premiums under section 9706(h)(3). ``(3) Requirements.--A payment meets the requirements of this paragraph if-- ``(A) the amount of the payment is not less than the present value of the total premium liability under this chapter with respect to the Combined Fund of the assigned operators or related persons described in paragraph (1) or their assignees, as determined by the operator's or related person's enrolled actuary (as defined in section 7701(a)(35)) using actuarial methods and assumptions each of which is reasonable and which are reasonable in the aggregate, as determined by such enrolled actuary; ``(B) a signed actuarial report is filed with the Secretary of Labor by such enrolled actuary containing-- ``(i) the date of the actuarial valuation applicable to the report; and ``(ii) a statement by the enrolled actuary signing the report that to the best of the actuary's knowledge the report is complete and accurate and that in the actuary's opinion the actuarial assumptions used are in the aggregate reasonably related to the experience of the operator and to reasonable expectations; and ``(C) 90 calendar days have elapsed after the report required by subparagraph (B) is filed with the Secretary of Labor, and the Secretary of Labor has not notified the assigned operator in writing that the requirements of this paragraph have not been satisfied. ``(4) Use of prepayment.--The Combined Fund shall-- ``(A) establish and maintain an account for each assigned operator or related person by, or on whose behalf, a payment described in paragraph (3) was made, ``(B) credit such account with such payment (and any earnings thereon), and ``(C) use all amounts in such account exclusively to pay premiums that would (but for this subsection) be required to be paid by the assigned operator. Upon termination of the obligations for the premium liability of any assigned operator or related person for which such account is maintained, all funds remaining in such account (and earnings thereon) shall be refunded to such person as may be designated by the common parent described in paragraph (1)(A).''. (b) Individual Employer Plans.--Section 9711(c) of the Internal Revenue Code of 1986 (relating to joint and several liability) is amended to read as follows: ``(c) Joint and Several Liability of Related Persons.-- ``(1) In general.--Except as provided in paragraph (2), each related person of a last signatory operator to which subsection (a) or (b) applies shall be jointly and severally liable with the last signatory operator for the provision of health care coverage described in subsection (a) or (b). ``(2) Liability limited if security provided.--If-- ``(A) 1 or more last signatory operators to which this paragraph applies (or any related person to any such last signatory operator) are members of a controlled group of corporations (within the meaning of section 52(a)) the common parent of which-- ``(i) is a corporation the shares of which are publicly traded on a United States exchange, and ``(ii) is jointly and severally liable for the provision of health care under this section which, but for this paragraph, would be required to be provided by the last signatory operators or related person, and ``(B) security meeting the requirements of paragraph (4) is provided by or on behalf of the last signatory operators or related person, then, as of the date the security is provided, such common parent (and no other person) shall be liable for the provision of health care under this section which the last signatory operators or related person would otherwise be required to provide. ``(3) Last signatory operators to which paragraph (2) applies.--This subsection shall apply to any last signatory operator if-- ``(A) the last signatory operator is an assigned operator meeting the requirements of section 9704(j)(2), or ``(B) the last signatory operator is not an assigned operator and-- ``(i) the last signatory operator (or a related person to the last signatory operator)-- ``(I) made contributions to the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan for employment during the period covered by the 1988 agreement; and ``(II) is not a 1988 agreement operator; and ``(ii) the last signatory operator (and all related persons to the last signatory operator) are not actively engaged in the production of coal as of July 1, 2005. ``(4) Security.--Security meets the requirements of this paragraph if-- ``(A) the security-- ``(i) is in the form of a bond, letter of credit, or cash escrow, ``(ii) is provided to the trustees of the 1992 UMWA Benefit Plan solely for the purpose of paying premiums for beneficiaries who would be described in section 9712(b)(2)(B) if the requirements of this section were not met by the last signatory operator, and ``(iii) is in an amount equal to 1 year of liability of the last signatory operator under this section, determined by using the average cost of such operator's liability during the prior 3 calendar years; ``(B) the security is in addition to any other security required under any other provision of this title; and ``(C) the security remains in place for 5 years. ``(5) Refunds of security.--The full amount of any security provided under this subsection (and earnings thereon) shall be refunded to the last signatory operator as of the earlier of-- ``(A) the termination of the obligations of the last signatory operator under this section, or ``(B) the end of the 5-year period described in paragraph (4)(C).'' (c) 1992 UMWA Benefit Plan.--Section 9712(d)(4) of the Internal Revenue Code of 1986 (relating to joint and several liability) is amended by adding at the end the following new sentence: ``The provisions of section 9711(c)(2) shall apply to any last signatory operator described in section 9711(c)(3) and if security meeting the requirements of section 9711(c)(4) is provided, the common parent described in section 9711(c)(2) shall be exclusively responsible for any liability for premiums under this section which, but for this sentence, would be required to be paid by the last signatory operator or any related person.''. (d) Successor in Interest.--Section 9701(c) of the Internal Revenue Code of 1986 (relating to terms relating to operators) is amended by adding at the end the following new paragraph: ``(8) Successor in interest.-- ``(A) Safe harbor.--The term `successor in interest' shall not include any person who-- ``(i) is an unrelated person to an eligible seller described in subparagraph (C); and ``(ii) purchases for fair market value assets, or all of the stock, of a related person to such seller, in a bona fide, arm's- length sale. ``(B) Unrelated person.--The term `unrelated person' means a purchaser who does not bear a relationship to the eligible seller described in section 267(b). ``(C) Eligible seller.--For purposes of this paragraph, the term `eligible seller' means an assigned operator described in section 9704(j)(2), a last signatory operator described in section 9711(c)(3), or a related person to such assigned operator or last signatory operator.'' (e) Effective Date.--The amendments made by this section shall take effect on the date of the enactment of this Act and the amendment made by subsection (d) shall apply to transactions after the date of the enactment of this Act. SEC. 302. TRANSFERS TO FUNDS; PREMIUM RELIEF. (a) Combined Fund.-- (1) Federal transfers under certain mining laws.--Section 9705(b) of the Internal Revenue Code of 1986 (relating to transfers from Abandoned Mine Reclamation Fund) is amended-- (A) by inserting ``or under the Mineral Leasing Act (30 U.S.C. 191)'' before the period at the end of paragraph (1), (B) by striking paragraph (2) and inserting the following new paragraph: ``(2) Use of funds.--Any amount transferred under paragraph (1) for any fiscal year shall be used to pay benefits and administrative costs of beneficiaries of the Combined Fund or for such other purposes as are specifically provided in the Acts described in paragraph (1).'', and (C) by striking ``From Abandoned Mine Reclamation Fund'' and inserting ``Under Certain Federal Mining Laws''. (2) Modifications of premiums to reflect transfers under mining laws.-- (A) Elimination of unassigned beneficiaries premium.--Section 9704(d) of such Code (establishing unassigned beneficiaries premium) is amended to read as follows: ``(d) Unassigned Beneficiaries Premium.-- ``(1) Plan years ending on or before september 30, 2006.-- For plan years ending on or before September 30, 2006, the unassigned beneficiaries premium for any assigned operator shall be equal to the applicable percentage of the product of the per beneficiary premium for the plan year multiplied by the number of eligible beneficiaries who are not assigned under section 9706 to any person for such plan year. ``(2) Plan years beginning on or after october 1, 2006.-- ``(A) In general.--For plan years beginning on or after October 1, 2006, subject to subparagraph (B), there shall be no unassigned beneficiaries premium, and benefit costs with respect to eligible beneficiaries who are not assigned under section 9706 to any person for any such plan year shall be paid from amounts transferred under section 9705(b). ``(B) Inadequate transfers.--If, for any plan year beginning on or after October 1, 2006, the amounts transferred under section 9705(b) are less than the amounts required to be transferred to the Combined Fund under section 402(h)(2)(A) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(h)(2)(A)) or paragraphs (1) and (2) of section 35(c) of the Mineral Leasing Act (30 U.S.C. 191(c) (1) and (2)), then the unassigned beneficiaries premium for any assigned operator shall be equal to the operator's applicable percentage of the amount required to be so transferred which was not so transferred.'' (B) Premium accounts.-- (i) Crediting of accounts.--Section 9704(e)(1) of such Code (relating to premium accounts; adjustments) is amended by inserting ``and amounts transferred under section 9705(b)'' after ``premiums received''. (ii) Surpluses attributable to public funding.--Section 9704(e)(3)(A) of such Code is amended by adding at the end the following new sentence: ``Amounts credited to an account from amounts transferred under section 9705(b) shall not be taken into account in determining whether there is a surplus in the account for purposes of this paragraph.'' (C) Applicable percentage.--Section 9704(f)(2) of such Code (relating to annual adjustments) is amended by adding at the end the following new subparagraph: ``(C) In the case of plan years beginning on or after October 1, 2007, the total number of assigned eligible beneficiaries shall be reduced by the eligible beneficiaries whose assignments have been revoked under section 9706(h).'' (3) Assignments and reassignment.--Section 9706 of the Internal Revenue Code of 1986 (relating to assignment of eligible beneficiaries) is amended by adding at the end the following: ``(h) Assignments as of October 1, 2007.-- ``(1) In general.--Subject to the premium obligation set forth in paragraph (3), the Commissioner of Social Security shall-- ``(A) revoke all assignments to persons other than 1988 agreement operators for purposes of assessing premiums for plan years beginning on and after October 1, 2007; and ``(B) make no further assignments to persons other than 1988 agreement operators, except that no individual who becomes an unassigned beneficiary by reason of subparagraph (A) may be assigned to a 1988 agreement operator. ``(2) Reassignment upon purchase.--This subsection shall not be construed to prohibit the reassignment under subsection (b)(2) of an eligible beneficiary. ``(3) Liability of persons during three fiscal years beginning on and after october 1, 2007.--In the case of each of the fiscal years beginning on October 1, 2007, 2008, and 2009, each person other than a 1988 agreement operator shall pay to the Combined Fund the following percentage of the amount of annual premiums that such person would otherwise be required to pay under section 9704(a), determined on the basis of assignments in effect without regard to the revocation of assignments under paragraph (1)(A): ``(A) For the fiscal year beginning on October 1, 2007, 55 percent. ``(B) For the fiscal year beginning on October 1, 2008, 40 percent. ``(C) For the fiscal year beginning on October 1, 2009, 15 percent.'' (4) Effective date.--The amendments made by this subsection shall apply to plan years of the Combined Fund beginning after September 30, 2006. (b) 1992 UMWA Benefit and Other Plans.-- (1) Transfers to plans.--Section 9712(a) of the Internal Revenue Code of 1986 (relating to the establishment and coverage of the 1992 UMWA Benefit Plan) is amended by adding at the end the following: ``(3) Transfers under other federal statutes.-- ``(A) In general.--The 1992 UMWA Benefit Plan shall include any amount transferred to the plan under section 402(h) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(h)) and section 35 of the Mineral Leasing Act (30 U.S.C. 191). ``(B) Use of funds.--Any amount transferred under subparagraph (A) for any fiscal year shall be used to provide the health benefits described in subsection (c) with respect to any beneficiary for whom no monthly per beneficiary premium is paid pursuant to paragraph (1)(A) or (3) of subsection (d). ``(4) Special rule for 1993 plan.-- ``(A) In general.--The plan described in section 402(h)(2)(C) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(h)(2)(C)) shall include any amount transferred to the plan under section 402(h) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(h)) and section 35 of the Mineral Leasing Act (30 U.S.C. 191). ``(B) Use of funds.--Any amount transferred under subparagraph (A) for any fiscal year shall be used to provide the health benefits described in section 402(h)(2)(C)(i) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(h)(2)(C)(i)) to individuals described in section 402(h)(2)(C)(ii) of such Act (30 U.S.C. 1232(h)(2)(C)(ii))''. (2) Premium adjustments.-- (A) In general.--Section 9712(d)(1) of such Code (relating to guarantee of benefits) is amended to read as follows: ``(1) In general.--All 1988 last signatory operators shall be responsible for financing the benefits described in subsection (c) by meeting the following requirements in accordance with the contribution requirements established in the 1992 UMWA Benefit Plan: ``(A) The payment of a monthly per beneficiary premium by each 1988 last signatory operator for each eligible beneficiary of such operator who is described in subsection (b)(2) and who is receiving benefits under the 1992 UMWA benefit plan. ``(B) The provision of a security (in the form of a bond, letter of credit, or cash escrow) in an amount equal to a portion of the projected future cost to the 1992 UMWA Benefit Plan of providing health benefits for eligible and potentially eligible beneficiaries attributable to the 1988 last signatory operator. ``(C) If the amounts transferred under subsection (a)(3) are less than the amounts required to be transferred to the 1992 UMWA Benefit Plan under section 402(h)(2)(B) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(h)(2)(B)) and section 35(c)(2) of the Mineral Leasing Act (30 U.S.C. 191(c)(2)), the payment of an additional backstop premium by each 1988 last signatory operator which is equal to such operator's share of the amounts required to be so transferred but which were not so transferred, determined on the basis of the number of eligible and potentially eligible beneficiaries attributable to the operator.'' (B) Conforming amendments.--Section 9712(d) of such Code is amended-- (i) in paragraph (2)(B), by striking ``prefunding'' and inserting ``backstop'', and (ii) in paragraph (3), by striking ``paragraph (1)(B)'' and inserting ``paragraph (1) (A)''. (C) Effective date.--The amendments made by this paragraph shall apply to fiscal years beginning on or after October 1, 2010. SEC. 303. OTHER PROVISIONS. (a) Board of Trustees.--Section 9702(b) of the Internal Revenue Code of 1986 (relating to board of trustees of the Combined Fund) is amended to read as follows: ``(b) Board of Trustees.-- ``(1) In general.--For purposes of subsection (a), the board of trustees for the Combined Fund shall be appointed as follows: ``(A) 2 individuals who represent employers in the coal mining industry shall be designated by the BCOA; ``(B) 2 individuals designated by the United Mine Workers of America; and ``(C) 3 individuals selected by the individuals appointed under subparagraphs (A) and (B). ``(2) Successor trustees.--Any successor trustee shall be appointed in the same manner as the trustee being succeeded. The plan establishing the Combined Fund shall provide for the removal of trustees. ``(3) Special rule.--If the BCOA ceases to exist, any trustee or successor under paragraph (1)(A) shall be designated by the 3 employers who were members of the BCOA on the enactment date and who have been assigned the greatest number of eligible beneficiaries under section 9706.'' (b) Enforcement of Obligations.-- (1) Failure to pay premiums.--Section 9707(a) of the Internal Revenue Code of 1986 is amended to read as follows: ``(a) Failures to Pay.-- ``(1) Premiums for eligible beneficiaries.--There is hereby imposed a penalty on the failure of any assigned operator to pay any premium required to be paid under section 9704 with respect to any eligible beneficiary. ``(2) Contributions required under the mining laws.--There is hereby imposed a penalty on the failure of any person to make a contribution required under section 402(h)(5)(B)(ii) of the Surface Mining Control and Reclamation Act of 1977 to a plan referred to in section 402(h)(2)(C) of such Act. For purposes of applying this section, each such required monthly contribution for the hours worked of any individual shall be treated as if it were a premium required to be paid under section 9704 with respect to an eligible beneficiary.'' (2) Civil enforcement.--Section 9721 of such Code is amended to read as follows: ``SEC. 9721. CIVIL ENFORCEMENT. ``The provisions of section 4301 of the Employee Retirement Income Security Act of 1974 shall apply, in the same manner as any claim arising out of an obligation to pay withdrawal liability under subtitle E of title IV of such Act, to any claim-- ``(1) arising out of an obligation to pay any amount required to be paid by this chapter; or ``(2) arising out of an obligation to pay any amount required by section 402(h)(5)(B)(ii) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(h)(5)(B)(ii)).'' <all>