HB2626 HFIN FBM 2-19                        HOUSE COMMITTEE ON FINANCE

FLOOR BOOK MEMO

HOUSE BILL 2626 (ABANDONED LAND RECLAMATION FUND)

Sponsors:   Delegates Ashley and Ireland

Attorney:    McO   / Assistant:

Date:           February 19, 2015

Title:           OK

Fiscal Note:          Yes

Code:          §22-2-4 (amend)

Purpose: The bill would modify limitations on the use of federal grant funds allocated to this State to address water and land reclamation needs arising from the effects of coal mining that occurred predominantly before 1977. These funds arise from federal reclamation fees imposed upon current coal production. The grants are deposited into the State’s Abandoned Land Reclamation Fund. The changes proposed by the bill would mirror previous changes to those limitations in federal law. Specifically, the bill would remove the 30% limitation that once existed in federal law upon the expenditure of funds allocated to the state “for the purpose of protecting, repairing, replacing, constructing or enhancing facilities relating to water supply, including water distribution facilities and treatment plants, to replace water supplies adversely affected by coal surface-mining practices.” Also in conformance with federal law, the bill would increase from 10% to 30% the limitation that once existed in federal law upon the use of the grant funds for distribution by the Secretary of the State’s Department of Environmental Protection into either the State’s Reclamation and Restoration Fund or the State’s Acid Mine Drainage Abatement and Treatment Fund. The purposes for these two funds are described in the bill and would remain unchanged.

Committee Action: The bill was reported without amendment.

Effective Date:     Regular