Sponsors
The bill increases predictability and reduces default risk for federal coal lease revenues but does so by imposing a higher upfront cash requirement on bidders and by spreading government receipts over a decade rather than delivering a lump sum.
Taxpayers will face lower risk of lost revenue because bidders must include the first installment with their bid, reducing the likelihood of default on deferred bonus payments and improving federal oversight.
Coal lease bidders (including small businesses and utilities) gain predictable payment terms because bonus payments are set on a fixed 10-year, equal-installment schedule, which improves bidding and financial planning.
Small bidders will face a higher immediate cash burden because they must include the first installment with their bid, which could reduce competition and favor larger firms.
Taxpayers and the Treasury receive bonus revenue more slowly because spreading payments over ten years delays full receipt compared with a lump-sum payment.
Based on analysis of 2 sections of legislative text.
Introduced March 9, 2026 by Harriet Hageman · Last progress March 9, 2026
Requires that bonus payments for coal leases issued under the cited Mineral Leasing Act subsection and using a deferred bonus payment system be paid in ten equal annual installments. The first installment must be paid when the bidder submits the lease bid, and the remaining nine installments are paid annually thereafter.