Virginia SB 825: Coal Surface Mining Reclamation Fund; surface mining pool bond fees.

Bill Text

2026 SESSION

INTRODUCED

26104708D

SENATE BILL NO. 825

Offered January 23, 2026

A BILL to amend and reenact §§ 45.2-1044, 45.2-1045, and 45.2-1046 of the Code of Virginia, relating to Coal Surface Mining Reclamation Fund; surface mining pool bond fees.

—————

Patron—Hackworth

—————

Referred to Committee on Agriculture, Conservation and Natural Resources

—————

Be it enacted by the General Assembly of Virginia:

1. That §§ 45.2-1044, 45.2-1045, and 45.2-1046 of the Code of Virginia are amended and reenacted as follows:

§ 45.2-1044. Participation in Fund.

A. Participation in the Fund is open to any operator applying for a permit under this chapter who can demonstrate to the Director a history of at least three consecutive years of compliance under this chapter or any other comparable state or federal act as approved by the Director.

B. Participation in the Fund is optional as to each permit application, and approval of such participation by the Division, upon payment by the operator of all entrance fees to the Fund required by this article, shall constitute compliance with all requirements of § 45.2-1016 and regulations issued pursuant thereto. Such participation shall relieve the operator of all bonding requirements except those set forth in this article. Nothing in this article shall preclude compliance with § 45.2-1016 in lieu of participation in the Fund, prior to commencement of such participation. Commencement of participation in the Fund, as to the applicable permit, constitutes an irrevocable commitment to participate therein as to the applicable permit and for the duration of the coal surface mining operations covered thereunder.

C. For any mining operation bonded under this article, the total cumulative amount of exposed highwall shall not exceed 1,500 linear feet unless (i) an operational justification is provided to the Director's satisfaction and (ii) a bond for the proposed additional area has been submitted in accordance with subsection D. The width of the coal pit shall be limited to two mining cuts or 500 feet, whichever is less, measured perpendicular from the most advanced highwall to the coal outcrop or to the nearest point of rough backfilling and grading.

D. The Director may allow extended distances for rough backfilling and grading beyond those established in this section if the applicant (i) can demonstrate to the Director a history of at least seven consecutive years of compliance with this chapter or with any other comparable state or federal act or and (ii) submits a bond for the proposed additional area beyond 3,000 feet in each approved work area or beyond 6,000 feet for purposes of the entire permit's footage. The additional bond shall be equal to the ratio of the extended distance to the distance specified in subsection C, multiplied by an approved cost estimate of reclamation prepared for the permit $60 for each foot of extension beyond 3,000 feet in each approved work area or beyond 6,000 feet for purposes of the entire permit's footage.

§ 45.2-1045. Initial payments into Fund; renewal payments; bonds.

A. Any operator filing a permit application for a coal surface mining operation participating in the pool fund shall pay into the Fund, as an entrance fee, a sum equal to $1,000 $2,000 for each applicable permit application. An entrance fee of $5,000 shall be required of each operator who elects to participate in the Fund if the Director has determined that the total balance of the Fund is less than $1.75 million $5 million. The entrance fee shall be reduced to $1,000 when the total Fund balance is greater than $2 million $7.5 million. A renewal fee of $1,000 $2,000 shall be required of each permittee in the Fund at permit renewal.

1. For the purposes of this section, all planned expenditures shall be deducted from the balance of the Fund during each calendar quarter, including any forfeiture on which engineering cost estimates have been prepared but no money from the Fund has actually been expended.

2. If the actual expenditures from the Fund are less than the engineering cost estimate, the difference shall be credited to the balance of the Fund during the calendar quarter in which the final expenditure is made from the Fund to accomplish the reclamation.

B. In addition to the initial payments into the Fund described in subsection A, every operator who participates in the Fund shall furnish to the Fund a bond that meets the criteria of § 45.2-1016 and regulations issued pursuant thereto as follows:

1. For an underground mining operation participating in the Fund prior to July 1, 1991, the amount of $1,000 per acre covered by each permit. In no event shall such total bond be less than $40,000, except that on a permit that has completed all mining and for which a completion report was approved prior to July 1, 1991, the total bond shall not be less than $10,000.

2. For an underground mining operation entering the Fund on or after July 1, 1991, and for any addi