To amend the Internal Revenue Code of 1986 to repeal the percentage depletion allowance for certain hardrock mines, and for other purposes.

March 7, 2005

Mr. FEINGOLD introduced the following bill; which was read twice and referred to the Committee on Finance

To amend the Internal Revenue Code of 1986 to repeal the percentage depletion allowance for certain hardrock mines, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Elimination of Double Subsidies for the Hardrock Mining Industry Act of 2005'.

SEC. 2. REPEAL OF PERCENTAGE DEPLETION ALLOWANCE FOR CERTAIN HARDROCK MINES.

(a) In General- Section 613(a) of the Internal Revenue Code of 1986 (relating to percentage depletion) is amended by inserting `(other than hardrock mines located on lands subject to the general mining laws or on land patented under the general mining laws)' after `In the case of the mines'.

(b) General Mining Laws Defined- Section 613 of the Internal Revenue Code of 1986 is amended by adding at the end the following:

`(f) General Mining Laws- For purposes of subsection (a), the term `general mining laws' means those Acts which generally comprise chapters 2, 12A, and 16, and sections 161 and 162 of title 30 of the United States Code.'.

(c) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2004.

SEC. 3. ABANDONED MINE RECLAMATION FUND.

(a) In General- Subchapter A of chapter 98 of the Internal Revenue Code of 1986 (relating to establishment of trust funds) is amended by adding at the end the following:

`SEC. 9511. ABANDONED MINE RECLAMATION FUND.

`(a) Creation of Trust Fund- There is established in the Treasury of the United States a trust fund to be known as the `Abandoned Mine Reclamation Trust Fund' (in this section referred to as `Trust Fund'), consisting of such amounts as may be appropriated or credited to the Trust Fund as provided in this section or section 9602(b).

`(b) Transfers to Trust Fund- There are hereby appropriated to the Trust Fund amounts equivalent to 25 percent of the additional revenues received in the Treasury by reason of the amendments made by section 2 of the Elimination of Double Subsidies for the Hardrock Mining Industry Act of 2005.

`(c) Expenditures From Trust Fund-

`(1) IN GENERAL- Amounts in the Trust Fund shall be available, as provided in appropriation Acts, to the Secretary of the Interior for--

`(A) the reclamation and restoration of lands and water resources described in paragraph (2) adversely affected by mineral (other than coal and fluid minerals) and mineral material mining, including--

`(i) reclamation and restoration of abandoned surface mine areas and abandoned milling and processing areas,

`(ii) sealing, filling, and grading abandoned deep mine entries,

`(iii) planting on lands adversely affected by mining to prevent erosion and sedimentation,

`(iv) prevention, abatement, treatment, and control of water pollution created by abandoned mine drainage, and

`(v) control of surface subsidence due to abandoned deep mines, and

`(B) the expenses necessary to accomplish the purposes of this section.

`(2) LANDS AND WATER RESOURCES-

`(A) IN GENERAL- The lands and water resources described in this paragraph are lands within States that have land and water resources subject to the general mining laws or lands patented under the general mining laws--

`(i) which were mined or processed for minerals and mineral materials or which were affected by such mining or processing, and abandoned or left in an inadequate reclamation status before the date of the enactment of this section,

`(ii) for which the Secretary of the Interior makes a determination that there is no continuing reclamation responsibility under State or Federal law, and

`(iii) for which it can be established to the satisfaction of the Secretary of the Interior that such lands or resources do not contain minerals which could economically be extracted through remining of such lands or resources.

`(B) CERTAIN SITES AND AREAS EXCLUDED- The lands and water resources described in this paragraph shall not include sites and areas which are designated for remedial action under the Uranium Mill Tailings Radiation Control Act of 1978 (42 U.S.C. 7901 et seq.) or which are listed for remedial action under the Comprehensive Environmental Response Compensation and Liability Act of 1980 (42 U.S.C. 9601 et seq.).

`(3) GENERAL MINING LAWS- For purposes of paragraph (2), the term `general mining laws' means those Acts which generally comprise chapters 2, 12A, and 16, and sections 161 and 162 of title 30 of the United States Code.'.

(b) Conforming Amendment- The table of sections for subchapter A of chapter 98 of the Internal Revenue Code of 1986 is amended by adding at the end the following:

`Sec. 9511. Abandoned Mine Reclamation Trust Fund.'.

END