eric cavazza, et al., pa dep, "preparing for smcra reauthorization in 2021"
TRANSCRIPT
Preparing for SMCRA Reauthorization in 2021
Eric E. Cavazza, P.E., PA-DEPand
Ryan Ellis, IMCC
June 26, 2015
• 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
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
Changes in Projections Since 2006
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)
PA’s AML Grant Amounts and Projections
Year
Gra
nt A
mou
nt in
$ M
illi
on
AML Fees Generated in PA
•AML Fees Paid by PA’s Coal Producers o 2012 - $8.2 milliono 2013 - $8.3 milliono 2014 - $8.4 million
(Note that PA receives a significant net gain in AML Funding)
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.
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)
• 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…
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
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
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
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
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
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.
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
• 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
• 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
• 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
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
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
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
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
Congress
• Current Congressional Landscape
• Communicating with Congress
• Congressional Support
• Who Will be Champions for AML?
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
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
Environmental and Citizen Groups
• National Groups• Watershed Groups• Potential Interplay between Title IV
and Title V Issues• Larger Sustainability Issues and
Concerns
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
• 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
• 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
• 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
• Declining Coal Production• Relative Importance of AML
Projects• Justifying our Existence• Productive partnerships
Present Issues and Future Challenges (cont)
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
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
