A bill that state legislators say is good for the coal industry and Schuylkill County has been signed by Gov. Tom Corbett.
House Bill 1813 was passed in the House on Oct. 17 and Oct. 18 in the Senate. It was signed Wednesday and is effective in 60 days.
"Increasing the supply of coal across Pennsylvania is an issue that is important to residents living in the 125th District and many other regions of our state," said state Rep. Mike Tobash, R-125, the prime sponsor of the bill that amends the Surface Mining and Reclamation Act.
Tobash said the bill has several benefits, including making bonding more available for mine operators, lowering electric costs and providing jobs.
"Recently, the coal industry has drawn a lot of attention and I think it's important that we realize how far we've come as far as our current mining standards go and how valuable this energy resource is. Coal, particularly anthracite, has continuously been the most affordable form of electric generation in the state," Tobash said in a press release.
State Rep. Jerry Knowles, R-124, is also in favor of the legislation.
"It's good for the mining industry," he said. "I think it's good legislation."
The bill provides for a special fund, the Land Reclamation Financial Guarantee Account, that will be used to support the state-backed financial guarantees. The state Department of Environmental Protection will assess and collect the money that will be used in the event of mine operator forfeiture and other guarantees by the department.
It also provides for up to $500,000 from certain guarantees into another fund for use of re-mining assurances. Premiums or interest that is in the LRFG account can be transferred to the Reclamation Fee Operation and Maintenance account that supports the operation and maintenance of mine drainage treatment facilities.
It also provides for up to $2 million from the Gross Receipts Tax on sales of electric energy to be appropriated to the Reclamation Fee O&M account that deals with the mine drainage facilities starting in fiscal year 2013-14.
Costs to reclaim an acre of a coal mine site can be as high as $10,000, Tobash said.
Factors such as availability of coal reserves, financial stability of the applicant and environmental and safety hazards of the site will be considered for those seeking the land reclamation financial guarantee, the proposed legislation states.
"This is extremely important for our region," Tobash said.