Preliminary discussions and efforts have begun to reauthorize Title IV of the Surface Mining Control and Reclamation Act (SMCRA) to continue to provide funding for AML and AMD work across the country. Pennsylvania has been working with the National Association of Abandoned Mine Land Programs (NAAMLP) and the Interstate Mining Compact Commission (IMCC) to frame the issues and identify interested partners for the effort. A brief update of the efforts to date of these organizations and committees coupled with a brief presentation of the current state of SMCRA Title IV and the PA AML Program will be conducted followed by a question and answer session.

1. Preparing for SMCRA
Reauthorization in 2021
Eric E. Cavazza, P.E., PA-DEP
and
Ryan Ellis, IMCC
June 26, 2015

2. • AML Fee Collection Authority Expires in
September, 2021 (Provision of the 2006 Reauthorization)
• $7.21 Billion in Remaining High Priority AML
Problems Nationally According to OSM
• Last Reauthorization Effort Required 10 Years of
Effort
• States and Tribes are Beginning to Gear Up Now
for a Renewed Effort
• What Will Reauthorization Look Like This Time
Around?
Reauthorization on the Horizon

3. PA’s Perspective
• PA has $4.65 Billion in Remaining High Priority
AML Problems on Federal AMLIS Inventory
• This does not include Priority 3 Problems such as
AMD which impairs over 5,500 miles of PA
Streams
• At current funding levels, it would take nearly 100
years to address current P1/P2 Inventory
• Many new P1/P2 Problems are Identified Each
Year (Many are AML Emergencies)
• AML Emergencies will Continue to Occur
• Ongoing O&M Costs for AMD Treatment Facilities

4. Changes in Projections Since 2006

5. AML Funding and Projections for PA
Grant
Amount
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Total AML
Grant
27.9 30.0 43.8 47.6 67.2 65.1 56.4 47.5 49.2 47.5 52.6 53.3
Amount
Sequestered
0.0 0.0 0.0 0.0 0.0 3.3 4.1 3.5 3.6 3.5 3.8 3.9
Actual Grant
Amount
27.9 30.0 43.8 47.6 67.2 61.8 52.4 44.0 45.6 44.0 48.8 49.4
AML
Emergencies
0.0 0.0 0.0 0.0 0.0 0.0 2.5 2.5 2.5 2.5 2.5 2.5
AMD Set-
Aside
5.7 6.3 9.7 11.6 17.4 15.9 9.0 9.1 10.0 9.7 10.7 10.9
Pennsylvania - SMCRA Title IV AML Grant Projections and Actual Grant Awards
(Amounts shown in $ millions)

6. PA’s AML Grant Amounts and Projections
Year
GrantAmountin$Million

7. AML Fees Generated in PA
•AML Fees Paid by PA’s Coal
Producers
o 2012 - $8.2 million
o 2013 - $8.3 million
o 2014 - $8.4 million
(Note that PA receives a significant net
gain in AML Funding)

8. PA AML Program Accomplishments
• For the most recent 3-year period of
2012-2014:
–BAMR completed an average of 176
reclamation projects/yr.
–Those projects reclaimed an average of
763 acres/yr of AML.
–The average Total Construction Cost for
those Projects was $23.2 million/yr.

9. PA AML Program Accomplishments
• BAMR Completes an Average of 73
Accelerated Response (Emergency)
Projects/yr. at a cost of ~$2 million/yr.
(Cost is for construction only)
• Currently managing 35 active
construction contracts that will restore
1,208 acres at a cost of $41.4 million
(As of June 2, 2015)

10. • How much money will be left over in
AML Trust Fund?
• How many unaddressed P1/P2 sites will
remain on the AMLIS inventory? Cost?
• Post-2021 AML fund allocation formula?
• Will states still run AML programs?
• What about AML Emergency programs?
If Fee Collection is not Reauthorized…

11. Efforts of NAAMLP
• Established a SMCRA Reauthorization
Committee in September 2014
• Four Subcommittees Established:
–Inventory Subcommittee
–Expenditures Subcommittee
–Combined Benefit Fund (CBF) Subcommittee
–“What happens if not reauthorized”
Subcommittee

12. Efforts of NAAMLP
• Working with IMCC and PA AML
Campaign
• Working with Trout Unlimited
• Coordinating with OSM
• Held Special Reauthorization Meeting
in St. Louis, MO on June 10, 2015
–Developing a NAAMLP Position Paper

13. Interstate Mining Compact Commission
• A multi-state governmental agency
• Represents the mining-related
natural resource and environmental
protection interests of its member
states
• Advisory role, not regulatory

14. IMCC
• First four states enter 1970 (KY, PA, NC, OK)
• Since then, 22 additional states have
enacted legislation bringing them into the
Compact
• Includes 3 associate member states -
provisionary membership as state pursues
enactment of legislation to become full
members

15. IMCC Initiatives
• Liason with Federal Government and Congress
• Monitoring of regulatory and legislative developments
• Development and communication of State positions
and recommendations on Federal rulemakings and
national legislation
• Information gathering and dissemination
• Coalition building with related State organizations
• Interaction with environmental and industry groups
• Public mining and minerals education outreaches

16. IMCC
• States are officially represented by their
Governors, who serve as Commissioners.
• Operates through committees composed of
appointed representatives of the Governors
• Generally, working with personnel from
Departments of Natural Resources or
Environmental Protection.

17. IMCC Reauthorization Efforts
• Working with Congressional Staff
• Coordinating with OSM
• Working with NAAMLP and PA AML
Campaign
• Working with Trout Unlimited
• Coordinating with the Alliance for
Appalachia

18. • Who Will the Players Be?
• What are Their Interests and Positions?
• How Have Things Changed since 2006?
• What are the Pressing Issues Today?
• Who Will be Our “Champions” on the
Hill?
• What Ground Work Needs to be Laid?
Key Reauthorization Questions

19. • The Unappropriated Balance
• AMLIS and Remaining AML Problems
• Fee Amounts Going Forward
• Program Elements – Changes Needed?
• Sequestration Impacts
• Keeping the Coalition Together
State and Tribal Issues

20. • How are States and Tribes Spending the
Money They Receive in Annual Grants?
• Interrelationship with Title V Programs –
the “Carrot and Stick” Approach
• Hardrock AML Reclamation Fee and
Program
• Good Samaritan Protections
• Keeping the Funding Off-Budget
Key Questions and Concerns

21. Key Issues being Evaluated for Reauthorization
• Duration of Fee Collection Authority
• Fee Amount and Fee Structure
• Sequestration
• Certified States/Tribes
– Limitation on Payments
– Decertification Options
• Minimum Program Funding

22. Key Issues being Evaluated for Reauthorization
• Priority Ranking Criteria
• Allocation Formula
• AML Fund Unappropriated Balance
• Off-Budget Appropriation
• Use of Title IV AML Funds for Local Match
of other Federal Funds
• Solvency of the UMWA CBF

23. Key Issues being Evaluated for Reauthorization
• AML Emergencies and Funding
• Watershed Cooperative Agreement
Program
• Future AML Set-Aside Programs
• MSHA Jurisdiction at AML Sites
• Streamlined Environmental Consultations

24. Key Issues being Evaluated for Reauthorization
• AMD Set-Aside Programs
• AMD Set-Aside for OM&R for non-Title IV
Funded AMD Treatment Systems
• Use of Title IV Funding to Support OSM
Administrative Costs
• Focusing Funding toward AML Projects
with an Economic Revitalization
Component

25. Congress
• Current Congressional Landscape
• Communicating with Congress
• Congressional Support
• Who Will be Champions for AML?

26. Key Congressional Committees
• Senate Energy and Natural Resources Committee ;
Public Lands, Forests, and Mining Subcommittee
• House Natural Resources Committee ; Energy and
Mineral Resources Subcommittee
• Senate Appropriations Committee; Interior,
Environment and Related Agencies Subcommittee
• House Appropriations Committee ; Interior,
Environment and Related Agencies Subcommittee

27. The Coal Industry
• Poor Health of Industry
• Role of National Mining Association
• Interrelationship between Coal and
Hardrock AML Reclamation
• Role of BCOA, especially with regard
to the UMW Combined Benefit
Fund
• CBF Shortfalls and Funding Needs

28. Environmental and Citizen Groups
• National Groups
• Watershed Groups
• Potential Interplay between Title IV
and Title V Issues
• Larger Sustainability Issues and
Concerns

29. Federal Government
• OSM’s Role as Fee Collector and
Oversight Authority
• Recent AML Legislative Proposals
• Program Priorities and Competing
Interests
• OMB’s Role re Administration Policy

30. • Large Unappropriated Balance Becomes a
Tempting Target
• Certified States (WY in Particular) Took A Hit
in 2010 with MAP-21
• Administration Proposals to Eliminate
Funding for Certified States and Tribes
• Adjustments to Project Priorities and
Program Protocols
Continuing Threats to AML Trust Fund

31. • Annual Percentage Cuts Apply to Certain
Mandatory Funding
• AML Trust Fund is NOT Exempt
• $40 million So Far; Upwards of $135 million by
2022
• States are Seeking Exemption for AML Funding
• Without It, Valuable Dollars and AML Work are Lost
• Combined Benefit Fund (part of AML Fund) is
Exempt
• Wreaks Havoc on Other Program Elements
Sequestration Impacts to AML Trust Fund

32. • Undelivered Orders
• Veracity of AMLIS
• Grant Administration
• “Staffing up” Impacts re Fixed Costs
• The Certification Landscape
• Status of Minimum Programs
Present Issues and Future Challenges

33. • Declining Coal Production
• Relative Importance of AML
Projects
• Justifying our Existence
• Productive partnerships
Present Issues and Future Challenges (cont)

34. NAAMLP/IMCC’s Planned Reauthorization Timeline
• Continue Data Gathering and Analysis
• Work with Partners to Draft Legislative
Proposal for Action in 2018+/-
• Be Prepared to React to Expedited
Timeline if Necessary
– Factors which could affect (speed up) the
proposed timeline
• Power Plus and AMLER
• Pending UMWA CBF and Pension Plan Insolvency

35. Congressional Outlook – Working toward 2021
• 114th Congress (2015-2016) –
Reauthorization strategies, AML
program oversight hearings
• 115th (2017-2018) – Legislative
solutions, Legislative hearings
• 116th (2019-2020) – Ultimate resolution
of Reauthorization package, pass
Reauthorization Legislation

36. Questions?
Contact Information:
ecavazza@pa.gov
814-472-1800
or
rellis@imcc.isa.us
703-709-8654