Sponsors (3)
The bill shifts more immediate financial responsibility and transparency onto bondholders and states—reducing taxpayer exposure to unpaid mine reclamation costs—but raises compliance, liquidity, and administrative burdens for operators and regulators that could limit activity or raise prices.
Taxpayers and the public face a lower risk of shouldering unfunded mine reclamation costs because the bill bans self-bonding, restricts risky forms of collateral, and requires regular revaluation of nonliquid collateral so posted security better matches liabilities.
State regulators and the bonding market will see stronger bond reliability because the bill limits concentration among corporate sureties and requires reinsurance/collateral standards, reducing the chance that a few firms' failures leave reclamation unsecured.
State governments must obtain more detailed forfeiture and forecast reports before approving alternative bonding systems, improving transparency and giving regulators and the public better information about reclamation funding risks.
Small and mid-sized permit holders and affiliated companies will likely face higher upfront bonding costs, cash collateral requirements, or liquidity pressure (including replacing self-bonds at renewal), which could force some operators to reduce activity, delay projects, or raise prices for consumers.
State and local regulatory agencies that relied on self-bonding must quickly revise programs and processes, creating administrative burdens and transitional costs for regulators and operators during implementation.
Restrictions on commonly used nonliquid collateral (land, equipment, coal) will make it harder for some operators to post acceptable security, potentially reducing access to permits or shifting costs to consumers if operators must secure more expensive forms of collateral or exit the market.
Based on analysis of 2 sections of legislative text.
Bars federally accepted self-bonds, tightens acceptable collateral and surety rules, and requires state reporting and forecasts before approving alternative bonding systems.
Official title: To amend the Surface Mining Control and Reclamation Act of 1977 to protect taxpayers from liability associated with the reclamation of surface coal mining operations, and for other purposes.
Introduced May 26, 2026 by Summer Lee · Last progress May 26, 2026
Creates stricter federal rules for financial assurances tied to coal mine reclamation. It bans federally accepted self-bonds immediately, requires states to end self-bond authority on the same schedule, tightens what assets can serve as collateral, demands multi-year forfeiture and cost histories and forecasts before approving alternative bonding systems, and directs the Secretary to issue rules within a year limiting corporate surety exposure and requiring updates to existing corporate surety bonds. The bill is aimed at reducing taxpayer and state exposure to unpaid mine reclamation costs by increasing oversight, tightening acceptable collateral, requiring financial reporting and forecasts for alternative bonding systems, and making executive compensation potentially includable as collateral where necessary.