OFFICE OF SURFACE MINING RECLAMATION & ENFORCEMENT
For Release January 29, 1992
Alan Cole (202) 208-2719

INTERIOR FISCAL 1993 BUDGET SUPPORTS FEDERAl, AND STATE SURFACE
MINING PROGRAMS

Harry M. Snyder, Director of the Interior Department's Office of
Surface Mining Reclamation and Enforcement (OSM), today said
President Bush's Fiscal Year 1993 budget request for the Interior
Department includes $269,633,000 for state and Federal programs to
protect the environment during coal mining, ensure prompt
reclamation, and clean up abandoned mine lands (AML).

"The Bush Administration's Budget supports our regulatory and AML
reclamation programs, plus those of the 24 coal states and 3 Indian
Tribes that receive Federal funds from the Interior Department for
their surface mining programs," Snyder said.  "The budget calls for
increased funding for state regulatory programs and gives strong
support to Secretary Lujan's initiatives."

Snyder said the OSM budget features program improvements in
abandoned mine reclamation aimed at strengthening Federalism and
increasing the capability of states to handle AML emergencies.

The Federalism initiative will reduce the administrative burden on
states through a move toward consolidated grant funding of state
AML programs.  The initiative calls for completing certain policy
and regulatory changes this year so that consolidated grants can be
awarded to states starting in 1993.

"Consolidated AML grants will simplify the grant application
process," Snyder said. "Instead of getting advance approval for
evenly individual AML project before OSM awards a state grant for
AML reclamation, states will be able to apply for funds to cover a
full year's AML work, including administrative costs."

"Empowering the states in this manner visibly recognizes the
states' record of accomplishment in AML work, reflects the states'
ability to operate effective AML programs, and eliminates
duplicative administrative costs," Snyder said.  OSM's role in the
AML program will move away from detailed pre-award review toward
after-the-fact oversight, he added.

The budget also calls for transferring responsibility for emergency
AML reclamation to the states.  However, OSM will continue handling
emergency project responsibilities for states that do not have
approved reclamation programs, and on tribal lands.

"Transferring responsibility for emergency AML reclamation projects
to the states is a major initiative needed so the states can
administer their own emergency programs, paid for out of their
grant allocations of Federal AML funds," Snyder said.  The proposal
is consistent with OSM's goal of providing a single delivery system
for all AML reclamation work, Snyder noted.  Moreover, he pointed
out, the states have developed considerable expertise in performing
AML reclamation; seven of them have already implemented their own
emergency reclamation program.

The OSM budget request is in line with deficit reduction goals, yet
provides ample working funds for AML reclamation, including new
project starts as well as ongoing work, Snyder noted.  Increases
for regulatory programs are offset by AML reductions, for an
overall OSM budget decrease of $29.4 million from fiscal 1992.

The regulation and technology component of OSM's fiscal 1993 budget
request comes to $113,482,000, an increase of $2.3 million over
fiscal 1992, while the AML component is $156,151,000, down $31.7
million from fiscal 1992.

Regulatory program grants to states are budgeted at $52.1 million
in the fiscal 1993 request, up $3.6 million from fiscal 1992.  The
funds are for OSM grants that match state expenses
dollar-for-dollar to operate programs for issuing coal mine
permits, inspecting surface coal mines, enforcing environmental
standards, and ensuring complete reclamation of surface coal mines.

Funds for state and Indian AML grants are budgeted at $130.5
million, down $4.8 million from fiscal 1992.  This will enable OSM
to continue to provide sufficient funding for states to start new
reclamation projects and complete ongoing ones, as well as handle
AML emergencies.  Through AML grants, OSM pays 100 percent of state
and tribal costs for reclaiming lands that were abandoned
u~reclaimed, or inadequately reclaimed, before enactment of the
1977 Surface Mining Control and Reclamation Act (SMCRA).

The AML program, including AML grants to states and Tribes, is
funded by production fees of 35 cents per ton of surface mined
coal, 15 cents per ton of coal mined underground, and 10 cents per
ton of lignite, which OSM collects from coal producers. Proceeds go
to a specially earmarked, interest-bearing U.S. Treasury fund until
Congress makes appropriations for AML work.

As part of OSM's plan to eliminate dual delivery mechanisms for
abandoned mine reclamation, the Rural Abandoned Mine Program
(RAMP), conducted by the Department of Agriculture, is proposed for
transfer to state reclamation programs.  This represents a budget
decrease of $11,849,000 for fiscal 1993.

OSM administers national standards requiring environmental
protection during coal mining and land reclamation afterward, and
OSM reclaims abandoned mine lands.  The agency provides support and
oversight for approved state regulatory and reclamation programs,
and directly carries out such activities on Federal and Indian
lands.  OSM was established in the Interior Department under
authority of SMCRA.

-DOI-