The West Virginia Senate seems poised to go a invoice that might create a mutual insurance coverage firm devoted to coal mine reclamation prices.
Senate Invoice 1, backed by Senate President Craig Blair, would assist the state keep away from what Blair has referred to as a “monetary tsunami” from the reclamation of huge areas which have been spoiled by years of mining. A current state audit discovered that West Virginia could possibly be accountable for lots of of thousands and thousands of {dollars} in mine reclamation prices if firms holding bonds proceed to go defunct, in accordance with information experiences.
The Senate accredited the bill on its first studying at present, Jan. 24.
West Virginia for years has had a Particular Reclamation Fund, funded via a tax on coal, however the concern is that it could possibly be overwhelmed in coming years. The state additionally permits mining firms to submit bonds of as a lot as $5,000 per acre, however a state environmental company has mentioned that might cowl solely a fraction of the reclamation prices, and quite a few coal firms have gone bankrupt in recent times, information retailers have reported.
Federal legislation requires states to maintain sufficient funding accessible to reclaim areas the place allow holders have defaulted, and a current examine projected that prices may attain nearly $500 million over the following 20 years. The Sierra Membership environmental group final 12 months filed a lawsuit geared toward pressuring the federal authorities to intervene in the price of the mine cleanup.
Supporters of the West Virginia invoice acknowledged that the total liabilities of such a mutual insurance coverage firm usually are not but identified, however the invoice requires an preliminary funding of $50 million from the state. That will come from the state Division of Environmental Safety however could be repaid, with out curiosity, to the division as soon as the reclamation work is completed, the invoice explains.
The invoice additionally would authorize the mutual firm to subject efficiency bonds to mine operators.
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