Coal Cleanup Taxpayer Protection Act of 2026
Sponsored By: Representative Lee, Summer L. [D-PA-12]
Introduced
Summary
Shifts coal-mine cleanup financial risk away from taxpayers. This bill would remake the Surface Mining Control and Reclamation Act bonding rules to require stronger financial assurances for coal mine reclamation.
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- Families and taxpayers: Would aim to reduce federal and state tax exposure to unpaid reclamation costs by banning self-bonding and requiring separate surety or collateral bonds.
- Coal operators and permit applicants: Would require a 7-year history of bond forfeitures and reclamation costs and a 5-year financial forecast to approve alternative bonding systems, force replacement of existing self-bonds at permit renewal or major modification, and allow executive compensation to be used as collateral.
- Bonding companies and regulators: Would require rules within 1 year to limit a single corporate surety's share in a State, set minimum collateral and reinsurance standards, ban coal-related property as bond collateral, and revalue nonliquid collateral every 3 years.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 0 benefits, 1 costs, 2 mixed.
Ban on self-bonds and alternative pools
If enacted, the Secretary would not accept self-bonds for Federal coal reclamation programs starting on enactment. Operators with self-bonds accepted before enactment would have to replace them by the earlier of the permit renewal date under section 506(d) or any major permit modification. The Secretary would have to notify State regulatory authorities within 90 days so States remove self-bond authority and require the same replacements. The bill would also let the Secretary approve alternative bonding systems for State or Federal programs only if they meet bonding goals and do not raise Federal or State financial liability. States seeking approval would need to submit a 7-year history of forfeitures and reclamation costs and a 5-year forecast showing fees, operator finances, market projections, participation counts, and estimated reclamation costs.
Tighter surety and collateral rules
If enacted, the Secretary would issue rules within one year to limit corporate surety use for coal reclamation bonds. The rules would cap how much one corporate surety may issue in a State, require a minimum share of reinsurance from surety bonds unrelated to the industry, and set minimum collateralization and cash-asset tests. Existing corporate surety bonds would need modification or replacement within one year after the rule is issued. The bill would ban using coal, coal mines, land above mines, coal processing facilities, coal waste disposal sites, and certain mining equipment as bond collateral. The Secretary would also require revaluation of noncash collateral three years after posting and every three years after, and would treat first-lien real estate and equipment as nonliquid while excluding cash, letters of credit, CDs, government bonds, and investment-grade securities.
Executive pay as bond collateral
If enacted, the Secretary could require applicants and affiliated companies to include executive compensation—salaries and bonuses—as collateral for coal mine reclamation bonds. This would let bond reviewers treat executive pay arrangements as backup for cleanup costs. Officers and executives could face changes to pay and contract arrangements because of this requirement.
Sponsors & CoSponsors
Sponsor
Lee, Summer L. [D-PA-12]
PA • D
Cosponsors
Rep. Deluzio, Christopher R. [D-PA-17]
PA • D
Sponsored 5/26/2026
Rep. Beyer, Donald S. [D-VA-8]
VA • D
Sponsored 5/26/2026
Roll Call Votes
No roll call votes available for this bill.
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