Pennsylvania AML/AMD Program and Funding Overview

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1 Pennsylvania AML/AMD Program and Funding Overview 8th West Branch Susquehanna Restoration Symposium April 14-15, 2016 Toftrees Golf Resort and Conference Center State College, Pennsylvania Tom Wolf, Secretary John Quigley, Secretary

2 BAMR Fund Management Responsibilities

3 Active AML Program Grants (as of 02/29/2016) Total amount of active grants (2014, 2015, 2016, and AML Pilot) is $203,538,674 Total expenditures to date are $71,001,573 Open commitments on active construction projects is $75,896,655 Each annual AML grant has a 3-year performance period Balance for future projects is $9,033,154 Note - Personnel, Equipment, Administration, & Indirect Costs for PA s AML Program are not Tallied Here

4 New 2016 AML Grant for Pennsylvania Final 2016 AML Grant Award was approved by OSM on February 5, 2016 and is $42,982,188 DEP plans to transfer $9,386,000 into the AMD Set-Aside Account (21.8%)

5 $30 million AML Pilot Program New AML (economic development) Pilot Program was authorized by Congress under the Consolidated Appropriations Act and provides an additional $30 million of US Treasury Funds to PA s AML Program Awaiting guidance from OSMRE on use of Pilot Funds DEP has developed a preliminary list of projects Once guidance is received from OSMRE and reviewed by DEP, project list will be shared with outside stakeholders PA submitted a grant application on March 28 to OSMRE to make the funding available for projects

6 Acid Mine Drainage Set-Aside Fund (as of 02/29/2016) Current fund balance was $68,514,737 $18,660,157 is designated for future operation and maintenance (O&M) costs at active and passive treatment systems $49,854,580 is available for program operating costs and additional AMD treatment projects

7 Acid Mine Drainage Set-Aside Fund The AMD fund supports the operation of 6 active treatment plants The FY14-15 cost of operation of those plants was $1,588,157 The AMD fund also supports the O&M costs for 50 passive treatment systems constructed by BAMR and potentially the over 250 passive treatment systems built by watershed groups and non-profits

8 Capital Budget Projects BAMR currently has approval for 3 capital budget projects totaling $22,200,000 2 Active Treatment Plants $10 M Cresson/Clearfield Creek $9 M Wehrum/Blacklick Creek 1 Stream Reconstruction Project $3.2 M Alvan/Great Trough Creek

9 Capital Budget Projects BAMR has Capital Budget Requests for 7 projects totaling ~$42.5 Million which require Governor and Legislative approval. Projects Include: $13.5 M - Little Conemaugh Treatment Plant (Cambria County) $16.5 M - Dolph Mine Fire (Lackawanna County) $11.2 M - Weisner Hollow Coal Refuse Disposal Site (Jefferson County) $1.3 M for 4 Schuylkill River Project Dam Rehabilitation Projects Flat Rock Dam Facilities (Philadelphia County) New Kernsville Dam Facilities (Schuylkill County) Auburn Dam Facilities (Schuylkill County) Tamaqua Dam Facilities (Schuylkill County)

10 Third-party AMD Trust Funds (as of 03/28/2016) BAMR is designated to direct the actions of the trustee on 7 AMD trust funds; assets of these trust funds total $15,028,596 The trust funds cover the O&M of 2 active AMD treatment plants and numerous passive treatment systems

11 Third-party AMD Trust Funds (as of 03/28/2016) Barnes & Tucker Trust: $7,868, Bennett Branch Trust: $ 362,857,55 Indianola Trust: $ 426, Lancashire Trust: $3,237, Passive Treatment Trust: $ 501, SRBC Community Foundation for the Alleghenies Trust: $2,632,131.04

12 BAMR/PA AML Program Update

13 AMD Set-Aside Program The announcement of the return of the AMD Set-Aside Program back to BAMR as part of the reorganization of DEP was made on December 14, A total of 29 staff were transferred of which 16 of those staff operate and maintain DEP s active and passive AMD treatment facilities The transfer of the AMD Program became effective on January 19, 2016.

14 Hollywood AMD Treatment Facility Bennett Branch Watershed Clearfield County

15 Status of AMD Set-Aside Program Guidelines The original Technical Guidance Document was published in DRAFT form on February 21, 2015 Based on the comments received, a revised/updated version has been developed A Comment and Response Document (CRD) based on the comments received has also been developed The revised TGD and CRD are currently undergoing legal review within DEP Following Legal approval and review by the DEP Policy Office, the final TGD and CRD will be published in the PA Bulletin.

16 AMD Set-Aside Program Evaluation Outside Stakeholder Input AMD Program Evaluation Stakeholder Groups Voiced Significant and Ongoing Concern for O&M of ~250 Previously Built AMD Treatment Systems Also concerned that most are not located in Qualified Hydrologic Units (QHUs) Additionally, O,M & R Workgroup Examined O&M Need Determined need could be as much as ~$3 million/year Could climb to $4 million/year assuming 5 new systems/year

17 AMD Set-Aside Program Moving Forward Plan to develop and/or consider many new QHUs to include most AMD impacted watersheds in PA Continue to make AMD Set-Aside funds available through the DEP Grant Center for O&M of AMD Treatment Systems constructed by watershed groups and non-profits in approved QHUs Continue to make AMD Set-Aside funds available through the DEP Grant Center for construction of a limited number of new AMD Treatment Systems in approved QHUs

18 Justification Under current SMCRA, PA should receive AML Grants of at least $30-40 million/year for the next 20 years Can set aside up to 30% for AMD Treatment If AML Fee Collection Authority is not Reauthorized in 2021, a decision to stop constructing new facilities and banking all future set-aside amounts for long-term O&M would need to be made around 2025 RECLAIM Act would change this scenario by ending AML Grants around 2025

19 OSMRE s AML Grant Projections for PA (Developed by OSMRE October 5, 2015 Don t Consider Sequestration) YEAR Grant Amount 2015 $ $ $ $ $ $ $ $ $59.6 YEAR Grant Amount 2024 $ $ $ $ $ $ $ $ $64.6

20 DEP to construct several large-scale AMD Treatment Facilities Cresson AMD Treatment Plant in Cambria County (Clearfield Creek/Susquehanna River Basin) (Capital Budget Funds + AMD Set- Aside for Design) Wehrum AMD Treatment Plant in Indiana County (Blacklick Creek/Ohio River Basin) (Capital Budget Funds + AMD Set-Aside for Design) Little Conemaugh River AMD Treatment Plant in Cambria County (Conemaugh River/Ohio River Basin) (Capital Budget Funds Requested + AMD Set-Aside possibly for Design) Recommend 1-2 more Large-scale AMD Treatment Facilities in both the Bituminous District and the Anthracite District

21 Proposed Federal RECLAIM Act The RECLAIM Act (HR 4456) was introduced in Congress by Congressman Hal Rogers of KY and a bipartisan group of Reps. on February 3, 2016 Similar to AMLER proposal put forward by the administration last year Would accelerate payments of $1 billion from the AML Trust Fund over 5 year period (FY 2017-FY2021)

22 Proposed Federal RECLAIM Act PA would stand to receive $67,567,852 per year for 5 years The intent of the projects funded by the program is to revitalize coal communities impacted by abandoned mine lands and the recent downturn in coal mining and coal-fired power generation

23 Proposed Federal RECLAIM Act DEP began last year to develop a preliminary list of potential projects and a strawman proposal (Based on the administration s AMLER Proposal) on how this program might be implemented Once questions are answered and details are provided by OSM and Congress, DEP will be sharing ideas and seeking input from outside stakeholder groups Governor Wolf sent a letter of support to PA s congressional delegation recommending funding come to PA through the normal AML grant process

24 AML Grant Projections for PA w/reclaim YEAR Grant Amount 2015 $ $ $ $ $ $ $ $ $35.8 YEAR Grant Amount 2024 $ $ $ $ $ $ $ $ $ 0 Without Title IV Reauthorization, AML Program Ends in 2026 Developed by Jointly by IMCC/OSMRE in 2015 based on AMLER Proposal

25 A few PA AML Program Statistics ( ) BAMR responded to an average of 625 Inquiries (requests for assistance)/year BAMR completed an average of 132 AD/BD projects/year BAMR awarded an average of 40 contracts for reclamation projects /year with a total contract amount of $27.5 million/year PA s AML Program restored an average of 777 acres of AML/year

26 AML Emergency Program OSM conducted the federal AML Emergency Program in PA from 1981 until October 2010 when they notified PA that would cease the program BAMR established and conducted the AML Accelerated Response Program for suddenly occurring, high-priority AML problems from October 2010 until June 2015 In June 2015, BAMR submitted a Letter of Intent to OSM to take delegation and establish an AML Emergency Program Currently operating under an interim approval from OSM and developing a Reclamation Plan Amendment to permanently establish the AML Emergency Program.

27 BAMR AML Emergency Program Since 2011, BAMR averages 73 AML Emergencies costing $3.9 million annually Addressed 72 AML Emergencies during Contracted Projects 62 AD/BD Projects Construction Cost ~$11.3 million As of April 14, 2016, BAMR has Initiated work on 17 AML Emergencies so far in 2016

28 Example Emergency Project Plymouth Borough, Luzerne County (Anthracite District) Youth Baseball Field

29 Some Major AML Hazard Projects Underway (>$2 million) Powderly Underground Mine Fire Project in Lackawanna County ($8.9 million) Jeanesville Underground Mine Fire Emergency Project in Carbon County ($9.5 million) Ehrenfeld Coal Refuse Pile Removal Project in Cambria County ($13.5 million) + (an additional $12.7million disposal cost)

30 Jeanesville Mine Fire Carbon County

31 Ehrenfeld Refuse Pile Cambria County

32 Some Major AML Hazard Projects Underway (>$2 million) Curry Hill/Avondale Surface Mine Reclamation Project in Luzerne County ($2.7 million) Hazelton Airport Surface Mine Reclamation Project in Luzerne County ($4.1 million) Phillips North Underground Mine Fire Project in Fayette County ($6.9 million) Renton Underground Mine Fire Project in Allegheny County ($6.6 million)

33 Curry Hill/Avondale Strip Pit Luzerne County

34 Hazleton Airport Surface Mine Restoration Project Luzerne County

35 Other AML Program Updates SMCRA Title IV Reauthorization Good Samaritan Clean Water Act (CWA) Liability PA Budget Issues and Impacts on BAMR MSHA Jurisdiction on Title IV AML Projects

36 Questions? Contact Information:

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