The bill amends the Code of West Virginia to enhance surface mining reclamation requirements, particularly concerning the special reclamation fund and bonding obligations. It establishes that bond amounts must reflect actual reclamation costs instead of a fixed range and introduces conditions for bonding companies to support the fund's viability. The bill also requires collaboration between the tax department and the department of environmental protection for accurate reporting and timely payments into the special reclamation fund. Additionally, mining operations must keep their payments current to retain their permits. Key changes include the formation of a special reclamation fund advisory council, a biennial review of the fund's fiscal soundness, and a limit on bonding companies holding no more than 33% of total bonded amounts for new bonds issued after July 1, 2025.

Furthermore, the bill provides a tax credit for mine operators who conduct reclamation at bond forfeiture sites, retroactive to January 1, 2012, and mandates the Tax Commissioner to report coal production tonnage monthly to ensure compliance with reclamation fund contributions. It also requires quarterly updates to actuarial studies of the Special Reclamation Fund and the Special Reclamation Water Trust Fund starting July 2022. The Secretary is tasked with exploring alternative programs for financially sound operators, such as an incremental bonding program. The bill clarifies that the special reclamation tax does not constitute an increase in the minimum severance tax and mandates that all collected funds be deposited into the Special Reclamation Fund and Special Reclamation Water Trust Fund, ultimately aiming to protect taxpayers from financial liabilities associated with reclamation costs.

Statutes affected:
Introduced Version: 22-1-17, 22-3-11