,i #aafth ,,congress #ast ,session ,h4 ,r4 #ddce ,,in ,,the ,,house ,,of ,,representatives ,september #bj1 #bjai,mr4 ,cartwright 7for himself1 ,mr4 ,grijalva1 ,mrs4 ,dingell1 ,mrs4 ,napolitano1 ,mr4 ,raskin1 ,mr4 ,lowenthal1 and ,ms4 ,lee of ,california7 introduced the following bill2 which was referred to the ,committee on ,natural ,resources ,a ,,bill ,to amend the ,surface ,mining ,control and ,reclamation ,act of #aigg to protect taxpayers from liability associated with the reclamation of surface coal mining operations1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,coal ,cleanup ,taxpayer ,protection ,act of #bjai 4 #b4 ,surface coal mining bonding ,section #eji of the ,surface ,mining ,control and ,reclamation ,act of #aigg 7#cj ,u4,s4,c4 #abei7 is amended-- 7#a7 by striking subsection 7c7 and inserting the following3 7c7 ,alternative ,bonding ,system 7#a7 ,in general ,subject to paragraph 7#b71 the ,secretary may approve as part of a ,state or ,federal program an alternative system that will-- 7,a7 achieve the objectives and purposes of the bonding program pursuant to this section2 and 7,b7 result in no greater risk of financial liability to the ,federal ,government or a ,state government than the bonding program under this section4 7#b7 ,report required ,the ,secretary may only approve an alternative bonding system for a ,state under paragraph 7#a7 if such ,state submits a report to the ,secretary that provides the following information3 7,a7 ,a history of bond forfeitures and reclamation costs in such ,state in the seven-year period ending on the date on which the report is submitted1 including-- 7i7 in the case of any bond forfeiture1 whether the money collected to make up the difference between the bond and reclamation cost was sufficient to complete the reclamation as specified in the permit2 and 7ii7 an engineer's estimate of the cost to complete reclamation of mines for which such ,state has not yet determined the cost of reclamation4 7,b7 ,a five-year forecast proving the proposed bond pool will be financially sound based on-- 7i7 the proposed annual or per ton fees paid by mining operators2 7ii7 the past and anticipated financial performance of participating mining operators2 7iii7 market projections for the five- year period beginning on the date of the submission of such report2 7iv7 the anticipated number of mining operators participating in each year2 and 7v7 anticipated reclamation costs1 including known reclamation costs and an engineer's estimate of costs not yet known4 2 and 7#b7 by adding at the end the following3 7f7 ,self-,bonding 7#a7 ,federal programs 7,a7 ,in general ,effective on the date of enactment of this subsection1 the ,secretary-- 7i7 may not accept the bond of the applicant itself 7referred to in this subsection as a self-bond72 and 7ii7 may accept a separate surety or collateral bond1 consistent with subsection 7b74 7,b7 ,existing self-bonds ,for coal mining operations covered by a self-bond accepted by the ,secretary prior to the date of enactment of this subsection1 the permittee shall replace the self-bond with another form of bond acceptable to the ,secretary under this section by not later than the earlier of-- 7i7 the date of renewal of the permit under section #ejf7;d72 and 7ii7 the date of any major permit modification under section #ejf4 7#b7 ,state programs ,not later than #ij days after the date of enactment of this subsection1 the ,secretary shall notify all ,state regulatory authorities that allow applicants to self-bond that the approved regulatory programs of the ,state regulatory authority must be amended-- 7,a7 to remove the authority for applicants to self-bond2 and 7,b7 to require coal mining operations covered by a self-bond accepted by the ,state regulatory authority prior to the date of enactment of this subsection to replace the self-bond with another form of bond acceptable under this section by not later than the earlier of-- 7i7 the date of renewal of the permit under section #ejf7;d72 and 7ii7 the date of any major permit modification under section #ejf4 7g7 ,bonds issued by surety 7#a7 ,in general ,not later than #a year after the date of enactment of this subsection1 the ,secretary shall issue rules establishing limitations on surety bonds accepted under this section to minimize the risk of financial liability to the ,federal ,government or a ,state government1 including rules regarding-- 7,a7 the maximum quantity of corporate surety bonds issued by any #a corporate surety as a percentage of the total quantity of coal mine reclamation bonds in any #a ,state2 7,b7 the minimum percentage of surety bonds unrelated to activities regulated pursuant to this ,act required to reinsure corporate surety bonds2 7,c7 the minimum collateralization required for corporate surety bonds2 and 7,d7 the minimum amount of cash assets required to be held by a corporate surety as a percentage of coal mine reclamation bonds issued by the corporate surety4 7#b7 ,existing corporate bonds ,corporate surety bonds in existence on the date of enactment of this subsection must be modified or replaced as necessary by not later than #a year after the date on which the rule is issued under paragraph 7#a74 7h7 ,collateral requirements 7#a7 ,real property ,real property posted as collateral for a bond may not include-- 7,a7 coal2 7,b7 a coal mine2 7,c7 land that includes a coal mine2 7,d7 land that is located above a coal mine2 7,e7 a coal processing facility2 7,f7 a coal waste disposal site2 7,g7 coal mining equipment unlikely to retain salvage or resale value2 or 7,h7 any other property determined by the ,secretary4 7#b7 ,re-evaluation 7,a7 ,the ,secretary shall re-evaluate the value of any nonliquid collateral1 as that term is defined in subparagraph 7,b71 #c years after such collateral is posted for a bond and every three years thereafter4 7,b7 ,in this paragraph1 nonliquid collateral has the meaning given to it by the ,secretary1 except that such term-- 7i7 includes the first lien interests in real estate and equipment2 and 7ii7 does not include-- 7,i7 cash2 7,,ii7 letters of credit2 7,,iii7 certificates of deposit2 7,,iv7 ,federal1 ,state1 or municipal bonds2 and 7,v7 investment grade securities4 7i7 ,executive compensation ,the ,secretary may require the inclusion of executive compensation1 including salaries and bonuses of officers and executives1 of an applicant under this section1 and any affiliated company1 as collateral for a bond under this section4 4