Coal Cleanup Taxpayer Protection Act of 2026

Key Points

• The bill bans coal mining companies from using "self-bonding," a practice where companies promise to pay for mine cleanup based only on their own financial strength, without putting up real money or insurance. This closes a loophole that has left taxpayers on the hook when companies go bankrupt.
• Companies with existing self-bonds must replace them with real financial guarantees (like cash or surety bonds) by the time they renew or significantly change their mining permits.
• Coal mines, coal itself, mining equipment, and land above mines can no longer be used as collateral for cleanup bonds. This ensures the assets backing the bond actually hold value if a company fails.
• The government could require mining company executives' salaries and bonuses to be put up as collateral for cleanup bonds, creating a strong personal financial incentive for leaders to ensure proper reclamation.
• States using alternative bonding pools must submit detailed reports with 7 years of forfeiture history and a 5-year financial forecast proving the pool is solvent before the Secretary can approve them.

Votes

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Related Bills

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