West Virginia Regulatory Program, 12739-12744 [2020-03751]
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Federal Register / Vol. 85, No. 43 / Wednesday, March 4, 2020 / Rules and Regulations
substantial number of small entities. In
making the determination as to whether
this rule would have a significant
economic impact, the Department relied
upon the data and assumptions for the
corresponding Federal regulations.
Small Business Regulatory Enforcement
Fairness Act
This rule is not a major rule under 5
U.S.C. 804(2), the Small Business
Regulatory Enforcement Fairness Act.
This rule: (a) Does not have an annual
effect on the economy of $100 million;
(b) will not cause a major increase in
costs or prices for consumers,
individual industries, Federal, State, or
local government agencies, or
geographic regions; and (c) does not
have significant adverse effects on
competition, employment, investment,
productivity, innovation, or the ability
of U.S.-based enterprises to compete
with foreign-based enterprises. This
determination is based on an analysis of
the corresponding Federal regulations,
which were determined not to
constitute a major rule.
Original amendment
submission date
*
February 20, 2019 ........
Dated: October 17, 2019.
Alfred L. Clayborne,
Regional Director, DOI Unified Regions 3,
4 and 6.
For the reasons set out in the
preamble, 30 CFR part 913 is amended
as set forth below:
PART 913—ILLINOIS
1. The authority citation for part 913
continues to read as follows:
■
Authority: 30 U.S.C. 1201 et seq.
2. Section 913.15 is amended in the
table by adding an entry for ‘‘225 ILCS
720/1.06(e); 62 IAC 1701.Appendix A;
1703.10; 1773.15, 1773.25; 1774.13;
1778.9, 1778.13, 1778.14, 1778.15’’ in
chronological order by ‘‘Date of final
publication’’ to read as follows:
■
§ 913.15 Approval of Illinois regulatory
program amendments.
*
*
*
*
*
Editorial note: This document was
received for publication by the Office of the
Federal Register on February 20, 2020.
Citation/description
*
*
*
*
*
*
March 4, 2020 ............. 225 ILCS 720/1.06(e); 62 IAC 1701.Appendix A; 1703.10; 1773.15, 1773.25; 1774.13;
1778.9, 1778.13, 1778.14, 1778.15.
BILLING CODE 4310–05–P
DEPARTMENT OF THE INTERIOR
Office of Surface Mining Reclamation
and Enforcement
30 CFR Part 948
[SATS No: WV–122–FOR; Docket ID OSM–
2013–0011 S1D1S SS08011000 SX064A000
201S180110 S2D2S SS08011000 SX064A000
20XS501520]
West Virginia Regulatory Program
Office of Surface Mining
Reclamation and Enforcement, Interior.
ACTION: Final rule; approval of
amendments.
AGENCY:
We, the Office of Surface
Mining Reclamation and Enforcement
(OSMRE), are approving amendments to
the West Virginia regulatory program
(the West Virginia program), under the
Surface Mining Control and
Reclamation Act of 1977 (SMCRA or the
Act) that contains both West Virginia
statutory and regulatory revisions. West
Virginia initially submitted an
SUMMARY:
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List of Subjects in 30 CFR Part 913
Intergovernmental relations, Surface
mining, Underground mining.
Date of final
publication
[FR Doc. 2020–03753 Filed 3–3–20; 8:45 am]
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Unfunded Mandates Reform Act
This rule does not impose an
unfunded mandate on State, local, or
Tribal governments, or the private sector
of more than $100 million per year. The
rule does not have a significant or
unique effect on State, local, or Tribal
governments or the private sector. This
determination is based on an analysis of
the corresponding Federal regulations,
which were determined not to impose
an unfunded mandate. Therefore, a
statement containing the information
required by the Unfunded Mandates
Reform Act (2 U.S.C. 1531 et seq.) is not
required.
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amendment to revise its West Virginia
Surface Coal Mining and Reclamation
Act (WVSCMRA). Senate Bill 462
amends the West Virginia Code to
conform to the State’s requirements for
informal conferences and decisions on
surface coal mining permit applications
with parallel provisions of Federal law.
Committee Substitute for House Bill
2352 amends the West Virginia Code to
provide tax incentives for coal mine
operators who reclaim bond forfeiture
sites. Subsequently, West Virginia
submitted another amendment
consisting of a Special Reclamation Tax
Credit Rule to implement the proposed
statutory revisions providing tax
incentives to coal mine operators to
reclaim bond forfeiture sites.
DATES: This rule is effective April 3,
2020.
Mr.
Ben Owens, Acting Director, Charleston
Field Office, Telephone: (304) 347–
7158. Email: chfo@osmre.gov.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
I. Background on the West Virginia Program
II. Submission of the Amendments
III. OSMRE’s Findings
IV. Summary and Disposition of Comments
V. OSMRE’s Decision
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VI. Statutory and Executive Order Reviews
I. Background on the West Virginia
Program
Section 503(a) of the Act permits a
State to assume primacy for the
regulation of surface coal mining and
reclamation operations on non-Federal
and non-Indian lands within its borders
by demonstrating that its program
includes, among other things, State laws
and regulations that govern surface coal
mining and reclamation operations in
accordance with the Act and consistent
with the implementing Federal
regulations. See 30 U.S.C. 1253(a)(1)
and (7). On the basis of this criteria, the
Secretary of the Interior conditionally
approved the West Virginia program on
January 21, 1981. You can find
background information on the West
Virginia program, including the
Secretary’s findings, the disposition of
comments, and conditions of approval
of the West Virginia program in the
January 21, 1981, Federal Register (46
FR 5915). You can also find later actions
concerning West Virginia’s program and
program amendments at 30 CFR 948.10,
948.12, 948.13, 948.15, and 948.16.
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II. Submission of the Amendments
By letter dated August 14, 2013, and
received electronically by us on August
16, 2013 (Administrative Record
Number 1587), the West Virginia
Department of Environmental Protection
(WVDEP) submitted an amendment to
its permanent regulatory program under
SMCRA (30 U.S.C. 1201 et seq.). The
amendment included changes to West
Virginia’s statute, the West Virginia
Code (W. Va. Code), as contained in
Enrolled Committee Substitute for
House Bill 2352 and Enrolled Senate
Bill 462.
Committee Substitute for House Bill
2352 amends W. Va. Code sec. 22–3–
11(g) and (h) to provide tax incentives
for mine operators who reclaim bond
forfeiture sites. On April 13, 2013, the
West Virginia Legislature adopted the
Committee Substitute for House Bill
2352. On April 29, 2013, the Governor
signed the statutory revisions into law.
These changes became effective under
State law on July 12, 2013.
Senate Bill 462 amends W. Va. Code
secs. 22–3–20 and 21 to ensure the
State’s requirements for informal
conferences and decisions on surface
coal mining permit applications
conform, more closely, with parallel
provisions of Federal law. The West
Virginia Legislature passed Senate Bill
462 on April 11, 2013, and the Governor
signed it into law on April 29, 2013. The
changes became effective under West
Virginia law on July 10, 2013. We
announced West Virginia’s proposed
amendments in the May 20, 2014,
Federal Register (79 FR 28858). In that
notice we also opened the public
comment period and provided an
opportunity for a public hearing on the
provisions (Administrative Record
Number WV–1588). The public
comment period closed on June 19,
2014.
On June 6, 2014, the West Virginia
State Tax Department filed a Special
Reclamation Tax Credit Rule with the
Secretary of State to implement the
special reclamation tax incentive
revisions at W. Va. Code sec. 22–3–11(g)
and (h) for coal mine operators who
reclaim bond forfeiture sites within the
State. The Committee Substitute for
Senate Bill 167 authorized the statutory
revisions. On March 8, 2014, the West
Virginia Legislature passed the revisions
to the statute. The Governor approved
the bill on March 31, 2014. On August
7, 2014, WVDEP submitted the
proposed rule to us at a meeting of the
Special Reclamation Fund Advisory
Council (Administrative Record Number
WV–1597). The Special Reclamation
Tax Credit Rule is set forth in the West
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Virginia regulations, known as the West
Virginia Code of State Rules (CSR) at
secs. 110–29–1 through 6. We
announced the proposed regulatory
revisions in the Federal Register on
November 13, 2014 (79 FR 67396) and
reopened the comment period to
provide the public 15 additional days to
comment on the proposed rule
(Administrative Record Number WV–
1598). The public comment period
closed on November 28, 2014.
III. OSMRE’s Findings
Following are OSMRE’s findings
about West Virginia’s amendments
under SMCRA and the Federal
regulations at 30 CFR 732.15 and
732.17. As discussed below, we are
approving the proposed State statutory
and regulatory amendments with certain
understandings. Any non-substantive
wording or editorial changes that are not
specifically discussed below have been
approved without further discussion.
However, the full text of the program
amendment is available at https://
www.regulations.gov.
A. W. Va. Code Sec. 22–3–11(g) and
(h)—Special Reclamation Tax Incentive
In accordance with Committee
Substitute for House Bill 2352, the State
proposes to add new language to sec.
22–3–11(g) and (h) of the W. Va. Code,
which encompasses the WVSCMRA,
providing coal mine operators with tax
incentives to reclaim bond forfeiture
sites within the State.
Subsection (g)(3)(A) provides that a
tax credit shall be granted against the
special reclamation tax imposed by
subsection (i) of W. Va. Code sec. 22–
3–11 to any coal mine operator who
performs reclamation or remediation at
a bond forfeiture site, which otherwise
would have been reclaimed using funds
from the Special Reclamation Fund or
Special Reclamation Water Trust Fund.
West Virginia Code sec. 22–3–11(i),
which is part of the West Virginia
program, imposes a tonnage tax upon
mined, cleaned coal. Proceeds generated
by this tax are deposited in the Special
Reclamation Fund and the Special
Reclamation Water Trust Fund. West
Virginia Code sec. 22–3–11(g)(3)(B)
provides that the amount of the
reclamation tax credit granted shall be
equal to the amount that the Tax
Commissioner determines, based on the
project costs as shown in the records of
the Secretary, that would have been
spent from the Special Reclamation
Fund or Special Reclamation Water
Trust Fund to accomplish the
reclamation or remediation performed
by the coal mine operator. This also
includes expenditures for water
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treatment. West Virginia Code sec. 22–
3–11(g)(3)(C) provides that to claim the
credit, the mine operator must file with
the Tax Commissioner a written
application seeking the amount of the
credit earned. Within 30 days of receipt
of the application, the Tax
Commissioner will issue a certification
of the amount of tax credit to be
allocated to the eligible taxpayer. If the
amount of the credit is less than the
amount applied for, the Tax
Commissioner must set forth in writing
the reasons for the difference. If no
certification is issued within the 30-day
period, the application will be deemed
certified. Any decision of the Tax
Commissioner is appealable pursuant to
the West Virginia Tax Procedure and
Administration Act as set forth in
Chapter 11, Article 10 of the West
Virginia Code. Applications for
certification of the proposed tax credit
must contain the information required
and be in the detail and format as
required by the Tax Commissioner.
These proposed revisions are
intended to provide tax incentives for
coal mine operators who reclaim bond
forfeiture sites within the State that
would normally be reclaimed by
WVDEP’s Office of Special Reclamation
(OSR) through the State’s alternative
bonding system, which is commonly
known as the Special Reclamation
Fund. We are approving W. Va. Code
sec. 22–3–11(g)(3) with the
understanding that the reclamation of a
bond forfeiture site by another party
must be done in a timely manner and
in accordance with the approved
reclamation plan or modification
thereof, including the treatment of any
water pollution discharge. Each
reclamation plan should include a
description of the measures an operator
must take during the reclamation
process to ensure the protection of the
quality and quantity of surface water
and groundwater systems. In addition,
discharges from bond forfeiture sites
within West Virginia are subject to
National Pollutant Discharge
Elimination System (NPDES) permitting
requirements, including compliance
with applicable water quality standards.
An operator must demonstrate
compliance with applicable effluent
limitations and water quality standards
to ensure that the hydrologic balance is
preserved. Furthermore, as provided by
W. Va. Code sec. 22–3–11(g)(3)(B),
reimbursement for such reclamation
must be limited to the amount of money
that OSR would have expended to
complete the bond forfeiture
reclamation project. Finally, if the Tax
Commissioner fails to issue a tax credit
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certification within the required time
period, as provided by W. Va. Code sec.
22–3–11(g)(3)(C), the amount of
reimbursement provided to the operator
cannot exceed the estimated cost of
reclamation by the State. Given these
requirements, we find that the proposed
revisions at W. Va. Code sec. 22–3–
11(g)(3) are not inconsistent with the
Federal bonding requirements at
sections 509 and 519 of SMCRA (30
U.S.C. 1259 and 1269) and 30 CFR
800.11(e) and 30 CFR 800.50. Therefore,
we approve West Virginia’s submission.
The proposed addition of W. Va. Code
sec. 22–3–11(h) grants the Tax
Commissioner authority to promulgate
rules for legislative approval to carry out
the purposes of this section. The preexisting subsections (i) through (o) have
been re-lettered to conform to the
proposed changes.
The promulgation of legislative rules
by the West Virginia Tax Commissioner,
as provided by subsection (h), to
implement the tax incentive
requirements at subsection (g) are
addressed in Finding D below. The
other changes to W. Va. Code sec. 22–
3–11(i) through (o) are found to be nonsubstantive; thus, requiring no further
action.
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B. W. Va. Code Sec. 22–3–20—Informal
Conference
In accordance with Senate Bill 462,
West Virginia proposes to revise
language extending the time to hold
informal conferences on surface coal
mining permit applications. Proposed
subsection 20(b) provides when an
informal conference will be held on a
surface coal mining permit application.
The State currently requires that
informal conferences be held within
three weeks after the public comment
period closes. Under the proposed
amendment, the Secretary must hold the
informal conference on the surface coal
mining permit application within a
reasonable time after the close of the
public comment period.
As proposed, subsection 20(b)
provides that if any person with an
interest that may be adversely affected
by the mining operation or the officer or
head of any Federal, state, or local
governmental agency may file written
objections and request an informal
conference within 30 days of the last
publication of the required legal
advertisement. Upon a request, the
Secretary shall hold an informal
conference in the locality of the
proposed mining operation within a
reasonable time after the close of the
public comment period. West Virginia
did not explain its decision for changing
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the timeframe for holding an informal
conference on a permit application.
While the Federal regulations at 30
CFR 773.6(c)(2) also require the
regulatory authority to hold an informal
conference ‘‘within a reasonable time
following the receipt of the request,’’ we
encourage West Virginia to consider
modifying its regulations at W. Va. CSR
sec. 38–2–3.2.d and W. Va. CSR sec. 38–
2–3.27.c.2 and specify a deadline for
holding an informal conference on a
permit application. When crafting the
Federal regulations, we granted the
regulatory authority discretion to
determine what was ‘‘reasonable’’ in
accordance with its approved program.
Failure to hold a timely informal
conference could result in unnecessary
delays in rendering a decision on a
permit application. Nevertheless, we
find that the proposed revision at W. Va.
Code sec. 22–3–20(b) is not inconsistent
with the Federal informal conference
provisions at 30 CFR 773.6(c) and
773.7(a) and section 513 and 514 of
SMCRA (30 U.S.C. 1263 and 1264).
Therefore, we are approving the
proposed amendment to W. Va. Code
sec. 22–3–20(b).
C. W. Va. Code Sec. 22–3–21—Informal
Conference
In accordance with Senate Bill 462,
West Virginia proposes to extend the
time in which the Secretary must issue
or deny a permit application. Currently,
if an informal conference is held, the
Secretary must issue a decision granting
or denying a permit, in whole, or in
part, within 30 days of the informal
conference. Under the proposed
revision, West Virginia seeks to extend
the time for the Secretary to issue or
deny a surface coal mining permit from
30 days to 60 days.
The proposed State revision mirrors
the Federal provisions at 30 CFR
773.7(a) and section 514 of SMCRA (30
U.S.C. 1264). We find the proposed
revision at W. Va. Code sec. 22–3–21(a)
to be no less effective than the Federal
informal conference provisions at 30
CFR 773.7 and no less stringent than
section 514 of SMCRA. Therefore, we
are approving the proposed amendment
to W. Va. Code sec. 22–3–21.
D. W. Va. CSR Sec. 110–29–1—Special
Reclamation Tax Credit
This proposed amendment to the
West Virginia regulations clarifies and
implements the proposed revisions to
W. Va. Code sec. 22–3–11(g) and (h)
relating to special reclamation tax
incentives for mine operators who
reclaim bond forfeiture sites within
West Virginia. West Virginia proposes to
add the Special Reclamation Tax Credit
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regulations it proposed in W. Va. CSR
secs. 110–29–1 through 110–29–6,
which would represent a new section of
the West Virginia regulations.
As discussed in OSMRE’s November
13, 2014, Federal Register (79 FR 6739),
non-substantive additions to W. Va. CSR
sec. 110–29–2 include definitions of
‘‘Act,’’ ‘‘Bond forfeited mine site,’’
‘‘Secretary,’’ and ‘‘Tax Commissioner.’’
Therefore, no further action is required
regarding those changes.
Proposed W. Va. CSR sec. 110–29–1.5
clarifies that the special reclamation tax
credit is only available to qualified
operators for taxable years beginning on
or after July 12, 2013. In addition, W.
Va. CSR sec. 110–29–3.3 provides that
the tax credit may only be taken against
the special reclamation tax imposed
under W Va. Code sec. 22–3–11.
Proposed W. Va. CSR sec. 110–29–2.4
defines ‘‘qualified operator’’ as any
person who obtains a permit under the
WVSCMRA to mine coal and perform
reclamation on a bond forfeited mine
site and that qualifies for the special
reclamation tax credit.
Proposed W. Va. CSR sec. 110–29–4
sets forth requirements governing the
application for and the amount of the
tax credit. Subsection 4 provides that a
qualified operator may reclaim the bond
forfeited mine site pursuant to either an
Article 3 [surface or underground
mining] permit or a reclamation
agreement. The amount of tax credit
granted to the qualified operator is
based on the amount of money that
would have been spent from the Special
Reclamation Fund and the Special
Reclamation Water Trust Fund on the
bond-forfeited site for land reclamation
and/or water treatment as determined
and certified by the WVDEP Secretary.
Proposed W. Va. CSR sec. 110–29–5
specifies operator eligibility
requirements for the tax credit and the
limitation of the tax credit. An operator
is not eligible to receive a tax credit for
performing reclamation on a mine site
that he or she has previously forfeited.
A qualified operator may use the tax
credit to offset payment of, or liability
for, the special reclamation tax for the
tax year or carry it forward for use in
future tax years until no credit is
remaining.
Proposed W. Va. CSR sec. 110–29–6
contains general procedures to claim
and administer the tax credit. The
qualified operator must provide
complete and accurate forms and other
information to claim the tax credit. In
addition, the qualified operator must
maintain records to verify the validity of
its eligibility for the tax credit and the
amount of tax credit claimed. Finally,
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the Tax Commissioner has the authority
to audit the qualified operator.
West Virginia currently has 268 bond
forfeiture sites in various stages of land
reclamation. In addition, water
treatment activities are ongoing at 163
bond forfeiture sites, and water
discharges at other bond forfeiture sites
are being evaluated and may require
treatment by the State. The proposed
special reclamation tax credit
requirements are intended to provide
the WVDEP an alternative means of
reclaiming bond forfeiture sites under
West Virginia’s alternative bonding
program. However, bond forfeiture
reclamation, including water treatment,
by a qualified operator or other party
must comply with the same standards
established under the approved
program. Nothing in the proposed rule,
as described above, can modify or
supersede West Virginia’s permanent
regulatory program requirements as
approved by OSMRE. It is with this
understanding that we find the
proposed Special Reclamation Tax
Credit provisions at W. Va. CSR secs.
110–29–1 through 6 to be no less
stringent than the Federal statutory
bonding requirements at sections 509
and 519 of SMCRA and no less effective
than the Federal regulations at 30 CFR
800.11(e) and 800.50. Therefore, we
approve the proposed amendment.
IV. Summary and Disposition of
Comments
Public Comments
We requested public comments on the
proposed amendments; however, we did
not receive any public comments.
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Federal Agency Comments
On May 22, 2014, and September 22,
2014, under 30 CFR 732.17(h)(11)(i) and
section 503(b) of SMCRA (30 U.S.C.
1253), we requested comments on the
amendments from various Federal
agencies with an actual or potential
interest in the West Virginia program
(Administrative Record Numbers WV–
1589 and WV–1601).
The Mine Safety and Health
Administration, U.S. Department of
Labor (MSHA) submitted its response
on June 27, 2014, (Administrative
Record Number 1591). MSHA did not
have any comments on the proposed
changes to the revisions in West
Virginia’s permanent surface coal
mining regulatory program.
The Bureau of Land Management
(BLM) submitted its response on June
30, 2014, (Administrative Record
Number 1592). The BLM did not have
any comments on the proposed changes
to the revisions in West Virginia’s
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permanent surface coal mining
regulatory program.
The Natural Resources Conservation
Services (NRCS) submitted its response
on June 27, 2014, (Administrative
Record Number 1593). The NRCS did
not have any comments on the proposed
changes to the revisions in West
Virginia’s permanent surface coal
mining regulatory program.
Environmental Protection Agency (EPA)
Comments and Concurrence
Under 30 CFR 732.17(h)(11)(ii), we
are required to get a written concurrence
from EPA for those provisions of the
program amendment that relate to air or
water quality standards issued under
the authority of the Clean Water Act (33
U.S.C. 1251 et seq.) or the Clean Air Act
(42 U.S.C. 7401 et seq.). None of the
revisions that West Virginia proposed to
make in this amendment pertain to air
or water quality standards. Therefore,
we did not ask EPA to concur on the
amendment. However, on May 22, 2014
and September 22, 2014, under 30 CFR
732.17(h)(11)(i), we requested
comments from the EPA on the
amendments (Administrative Record
Nos. 1589 and 1601). EPA did submit
the following comments on the
proposed State amendments.
On July 24, 2014, EPA Region III
provided us with comments on the
State’s statutory proposal to provide
operators tax incentives for reclaiming
bond forfeiture sites. According to EPA,
discharges from bond forfeiture sites are
subject to NPDES permitting
requirements, including compliance
with applicable water quality standards.
In addition, the concept of reclamation
includes protection and/or restoration of
the hydrologic balance, including water
quality. EPA noted that each
reclamation plan should include a
detailed description of the measures to
be taken during the reclamation process
to ensure the protection of the quality of
surface and ground water systems, both
on-site and off-site. EPA stated that the
reclamation plan and funding
mechanisms should account for the
need to comply with applicable
provisions of the Clean Water Act. EPA
acknowledged that it supports all efforts
toward finding the most effective
approaches for mitigating future
drainage problems from bond forfeiture
mining operations. According to EPA, to
prevent and/or remediate perpetual
postmining drainage problems, it is
important to have both a well-funded
bonding program and incentives for
operators to assist with reclamation of
bond forfeiture mine sites.
On October 20, 2014, EPA submitted
a response to our request for comments
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on the State’s proposed Special
Reclamation Tax Credit Rule. EPA
acknowledged that it had reviewed the
proposed amendment, but it would not
be providing comments on it. However,
they appreciated the opportunity to
review the proposed revisions.
As discussed herein, we are
approving the proposed amendments
with the understanding that discharges
from bond forfeiture sites within West
Virginia will comply with NPDES
permitting requirements, including
applicable water quality standards.
Furthermore, we agree that West
Virginia’s alternative bonding system
must provide sufficient revenue to
ensure that discharges from bond
forfeiture sites will comply with
applicable Clean Water Act provisions.
We also agree that to prevent and/or
remediate perpetual postmining
drainage problems, it is important to
have both a well-funded bonding
program and incentives for operators to
assist with the reclamation of bond
forfeiture mine sites. Finally, we find
that the proposed amendments, if
implemented as discussed herein,
should ensure that WVDEP will be able
to achieve these objectives, while
providing operators incentives to assist
in the reclamation of bond forfeiture
sites within West Virginia.
State Historical Preservation Officer
(SHPO) and the Advisory Council on
Historic Preservation (ACHP)
Under Federal regulations at 30 CFR
732.17(h)(4), we are required to solicit
comments from the SHPO and ACHP on
amendments that may have an effect on
historic properties. Although we
requested comments on both proposed
State statutory and regulatory
amendments, we did not receive
comments from the SHPO or ACHP on
either amendment.
V. OSMRE’s Decision
Based on the above findings, we are
approving amendments that provide tax
incentives for operators who reclaim
bond forfeiture sites and revisions to
West Virginia’s informal conference
provisions as submitted by WVDEP on
August 14, 2013 (Administrative Record
Number WV–1587). However, as
discussed in Finding A, above, we are
approving the revisions to W. Va. Code
sec. 22–3–11(g) with the understanding
that the reclamation of a bond forfeiture
site by another party must be done in a
timely manner and in accordance with
the approved reclamation plan or
modification thereof. In addition,
discharges from bond forfeiture sites are
subject to NPDES permitting
requirements, including applicable
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water quality standards. Reimbursement
for such reclamation must be limited to
the amount of money that WVDEP
would have expended to complete the
bond forfeiture reclamation project.
Finally, if the Tax Commissioner fails to
issue a tax credit certification within the
required time period, the amount of
reimbursement provided to the operator
cannot exceed the estimated cost of
reclamation by the State. If, in future
oversight reviews, we should determine
that West Virginia is not applying these
provisions in accordance with our
approval, other amendments may be
required.
We are also approving the State’s
Special Reclamation Tax Credit Rule,
found at W. Va. CSR secs. 110–29–1
through 6 as submitted by WVDEP on
August 7, 2014 (Administrative Record
Number WV–1597). West Virginia’s
proposed revisions at W. Va. Code sec.
22–3–11(g) clarify the special
reclamation tax incentive provisions.
However, as discussed above in Finding
D, we are approving the Special
Reclamation Tax Credit Rule with
certain stipulations. Reclamation,
including water treatment, by a
qualified operator or other party at a
bond forfeiture site under this
amendment must comply with the same
standards as required under the
approved program. In addition, nothing
in the proposed amendment can modify
or supersede West Virginia’s permanent
regulatory program requirements as
approved by us.
To implement these decisions, we are
amending the Federal regulations at 30
CFR part 948 to codify decisions
concerning the West Virginia program.
In accordance with the Administrative
Procedure Act (5 U.S.C. 553(d)(3)), this
rule will take effect 30 days after the
date of publication. Section 503(a) of
SMCRA (30 U.S.C. 1253(a)) requires that
a State program demonstrate that such
State has the capability of carrying out
the provisions of the Act and meeting its
purposes. SMCRA requires consistency
of State and Federal standards.
VI. Statutory and Executive Order
Reviews
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Executive Order 12630—Governmental
Actions and Interference With
Constitutionally Protected Property
Rights
This rule would not affect a taking of
private property or otherwise have
taking implications that would result in
property being taken for government use
without just compensation under the
law. Therefore, a takings implication
assessment is not required. This
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determination is based on an analysis of
the corresponding Federal regulations.
Executive Order 12866—Regulatory
Planning and Review and 13563—
Improving Regulation and Regulatory
Review
Executive Order 12866 provides that
the Office of Information and Regulatory
Affairs in the Office of Management and
Budget (OMB) will review all significant
rules. Pursuant to OMB guidance, dated
October 12, 1993, the approval of state
program amendments is exempted from
OMB review under Executive Order
12866. Executive Order 13563, which
reaffirms and supplements Executive
Order 12866, retains this exemption.
Executive Order 13771—Reducing
Regulation and Controlling Regulatory
Costs
State program amendments are not
regulatory actions under Executive
Order 13771 because they are exempt
from review under Executive Order
12866.
Executive Order 12988—Civil Justice
Reform
The Department of the Interior has
reviewed this rule as required by section
3(a) of Executive Order 12988. The
Department has determined that this
Federal Register notification meets the
criteria of Section 3 of Executive Order
12988, which is intended to ensure that
the agency reviews its legislation and
proposed regulations to eliminate
drafting errors and ambiguity; that the
agency writes its legislation and
regulations to minimize litigation, and
that the agency’s legislation and
regulations provide a clear legal
standard for affected conduct rather
than a general standard, and promote
simplification and burden reduction.
Because Section 3 focuses on the quality
of Federal legislation and regulations,
the Department limited its review under
this Executive order to the quality of
this Federal Register document and to
changes to the Federal regulations. The
review under this Executive order did
not extend to the language of the State
regulatory program or to the program
amendment that the State of West
Virginia drafted.
Executive Order 13132—Federalism
This rule is not a ‘‘[p]olicy that [has]
Federalism implications’’ as defined by
Section 1(a) of Executive Order 13132
because it does not have ‘‘substantial
direct effects on the States, or on the
distribution of power and
responsibilities among the various
levels of government.’’ Instead, this rule
approves an amendment to the West
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12743
Virginia program submitted and drafted
by that State. We reviewed the
submission with fundamental
federalism principles in mind as set
forth in Sections 2 and 3 of the
Executive order and with the principles
of cooperative federalism, as set forth in
SMCRA. See, e.g., 30 U.S.C. 1201(f).
Specifically, pursuant to Section
503(a)(1) and (7)(30 U.S.C. 1253(a)(1)
and (7)), we reviewed the program
amendment to ensure that it is ‘‘in
accordance with’’ the requirements of
SMCRA and ‘‘consistent with’’ the
regulations issued by the Secretary
pursuant to SMCRA.
Executive Order 13175—Consultation
and Coordination With Indian Tribal
Governments
The Department of the Interior strives
to strengthen its government-togovernment relationship with Tribes
through a commitment to consultation
with Tribes and recognition of their
right to self-governance and tribal
sovereignty. We have evaluated this rule
under the Department’s consultation
policy and under the criteria in
Executive Order 13175, and have
determined that it has no substantial
direct effects on federally recognized
Tribes or on the distribution of power
and responsibilities between the Federal
Government and Tribes. Therefore,
consultation under the Department’s
tribal consultation policy is not
required. The basis for this
determination is that our decision is on
the West Virginia program, which does
not include Tribal lands or regulation of
activities on Tribal lands. Tribal lands
are regulated independently under the
applicable, approved Federal program.
Executive Order 13211—Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use
Executive Order 13211 requires
agencies to prepare a Statement of
Energy Effects for a rulemaking that is:
(1) Considered significant under
Executive Order 12866, and (2) likely to
have a significant adverse effect on the
supply, distribution, or use of energy.
Because this rule is exempt from review
under Executive Order 12866 and is not
a significant energy action under the
definition in Executive Order 13211, a
Statement of Energy Effects is not
required.
Executive Order 13045—Protection of
Children From Environmental Health
Risks and Safety Risks
This rule is not subject to Executive
Order 13045 because this is not an
economically significant regulatory
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Federal Register / Vol. 85, No. 43 / Wednesday, March 4, 2020 / Rules and Regulations
action as defined by Executive Order
12866; and this action does not address
environmental health or safety risks
disproportionately affecting children.
National Environmental Policy Act
Consistent with sections 501(a) and
702(d) of SMCRA (30 U.S.C. 1251(a) and
1292(d), respectively) and the U.S.
Department of the Interior Departmental
Manual, part 516, section 13.5(A), state
program amendments are not major
Federal actions within the meaning of
section 102(2)(C) of the National
Environmental Policy Act (42 U.S.C.
4332(2)(C)).
National Technology Transfer and
Advancement Act
Section 12(d) of the National
Technology Transfer and Advancement
Act (NTTAA) (15 U.S.C. 3701 et seq.)
directs us to use voluntary consensus
standards in our regulatory activities
unless to do so would be inconsistent
with applicable law or otherwise
impractical. (OMB Circular A–119 at p.
14). This action is not subject to the
requirements of section 12(d) of the
NTTAA because application of those
requirements would be inconsistent
with SMCRA.
Paperwork Reduction Act
This rule does not include requests
and requirements of an individual,
partnership, or corporation to obtain
information and report it to a Federal
agency. As this rule does not contain
information collection requirements, a
submission to OMB under the
Paperwork Reduction Act (44 U.S.C.
3501 et seq.) is not required.
Original amendment submission
dates
*
*
August 14, 2013 .............................
August 7, 2014.
Regulatory Flexibility Act
This rule will not have a significant
economic impact on a substantial
number of small entities under the
Regulatory Flexibility Act (5 U.S.C. 601
et seq.). The State submittal, which is
the subject of this rule, is based upon
corresponding Federal regulations for
which an economic analysis was
prepared and certification made that
such regulations would not have a
significant economic effect upon a
substantial number of small entities. In
making the determination as to whether
this rule would have a significant
economic impact, the Department relied
upon the data and assumptions for the
corresponding Federal regulations.
Small Business Regulatory Enforcement
Fairness Act
This rule is not a major rule under 5
U.S.C. 804(2), the Small Business
Regulatory Enforcement Fairness Act.
This rule: (a) Does not have an annual
effect on the economy of $100 million;
(b) will not cause a major increase in
costs or prices for consumers,
individual industries, Federal, State, or
local government agencies, or
geographic regions; and (c) does not
have significant adverse effects on
competition, employment, investment,
productivity, innovation, or the ability
of U.S. based enterprises to compete
with foreign-based enterprises. This
determination is based on an analysis of
the corresponding Federal regulations,
which were determined not to
constitute a major rule.
Unfunded Mandates Reform Act
This rule will not impose an
unfunded mandate on State, local, or
Tribal governments, or the private sector
of more than $100 million per year. The
Date of publication of final rule
rule does not have a significant or
unique effect on State, local, or Tribal
governments or the private sector. This
determination is based on an analysis of
the corresponding Federal regulations,
which were determined not to impose
an unfunded mandate. Therefore, a
statement containing the information
required by the Unfunded Mandates
Reform Act (2 U.S.C. 1531 et seq.) is not
required.
List of Subjects in 30 CFR Part 948
Intergovernmental relations, Surface
mining, Underground mining.
Dated: October 11, 2019.
Thomas D. Shope,
Regional Director, North Atlantic—
Appalachian Region.
Editorial note: This document was
received for publication by the Office of the
Federal Register on February 20, 2020.
For the reasons set out in the
preamble, 30 CFR part 948 is amended
as set forth below:
PART 948—WEST VIRGINIA
1. The authority citation for part 948
continues to read as follows:
■
Authority: 30 U.S.C. 1201 et seq.
2. Section 948.15 is amended by
adding the entry ‘‘W.Va. Code 22–3–
11(g) and (h) (qualified) W. Va. Code
22–3–20 W. Va. Code 22–3–21 CSR
110–29–1 through 6, Special
Reclamation Tax Credit Rule
(qualified)’’ to the table in chronological
order by ‘‘Date of publication of final
rule’’ to read as follows:
■
§ 948.15 Approval of West Virginia
regulatory program amendments.
*
*
*
*
*
*
*
*
March 4, 2020 ................................ W.Va. Code 22–3–11(g) and (h) (qualified) W.Va. Code 22–3–20, W.
Va. Code 22–3–21, CSR 110–29–1 through 6, Special Reclamation
Tax Credit Rule (qualified).
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Agencies
[Federal Register Volume 85, Number 43 (Wednesday, March 4, 2020)]
[Rules and Regulations]
[Pages 12739-12744]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03751]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Office of Surface Mining Reclamation and Enforcement
30 CFR Part 948
[SATS No: WV-122-FOR; Docket ID OSM-2013-0011 S1D1S SS08011000
SX064A000 201S180110 S2D2S SS08011000 SX064A000 20XS501520]
West Virginia Regulatory Program
AGENCY: Office of Surface Mining Reclamation and Enforcement, Interior.
ACTION: Final rule; approval of amendments.
-----------------------------------------------------------------------
SUMMARY: We, the Office of Surface Mining Reclamation and Enforcement
(OSMRE), are approving amendments to the West Virginia regulatory
program (the West Virginia program), under the Surface Mining Control
and Reclamation Act of 1977 (SMCRA or the Act) that contains both West
Virginia statutory and regulatory revisions. West Virginia initially
submitted an amendment to revise its West Virginia Surface Coal Mining
and Reclamation Act (WVSCMRA). Senate Bill 462 amends the West Virginia
Code to conform to the State's requirements for informal conferences
and decisions on surface coal mining permit applications with parallel
provisions of Federal law. Committee Substitute for House Bill 2352
amends the West Virginia Code to provide tax incentives for coal mine
operators who reclaim bond forfeiture sites. Subsequently, West
Virginia submitted another amendment consisting of a Special
Reclamation Tax Credit Rule to implement the proposed statutory
revisions providing tax incentives to coal mine operators to reclaim
bond forfeiture sites.
DATES: This rule is effective April 3, 2020.
FOR FURTHER INFORMATION CONTACT: Mr. Ben Owens, Acting Director,
Charleston Field Office, Telephone: (304) 347-7158. Email:
[email protected].
SUPPLEMENTARY INFORMATION:
I. Background on the West Virginia Program
II. Submission of the Amendments
III. OSMRE's Findings
IV. Summary and Disposition of Comments
V. OSMRE's Decision
VI. Statutory and Executive Order Reviews
I. Background on the West Virginia Program
Section 503(a) of the Act permits a State to assume primacy for the
regulation of surface coal mining and reclamation operations on non-
Federal and non-Indian lands within its borders by demonstrating that
its program includes, among other things, State laws and regulations
that govern surface coal mining and reclamation operations in
accordance with the Act and consistent with the implementing Federal
regulations. See 30 U.S.C. 1253(a)(1) and (7). On the basis of this
criteria, the Secretary of the Interior conditionally approved the West
Virginia program on January 21, 1981. You can find background
information on the West Virginia program, including the Secretary's
findings, the disposition of comments, and conditions of approval of
the West Virginia program in the January 21, 1981, Federal Register (46
FR 5915). You can also find later actions concerning West Virginia's
program and program amendments at 30 CFR 948.10, 948.12, 948.13,
948.15, and 948.16.
[[Page 12740]]
II. Submission of the Amendments
By letter dated August 14, 2013, and received electronically by us
on August 16, 2013 (Administrative Record Number 1587), the West
Virginia Department of Environmental Protection (WVDEP) submitted an
amendment to its permanent regulatory program under SMCRA (30 U.S.C.
1201 et seq.). The amendment included changes to West Virginia's
statute, the West Virginia Code (W. Va. Code), as contained in Enrolled
Committee Substitute for House Bill 2352 and Enrolled Senate Bill 462.
Committee Substitute for House Bill 2352 amends W. Va. Code sec.
22-3-11(g) and (h) to provide tax incentives for mine operators who
reclaim bond forfeiture sites. On April 13, 2013, the West Virginia
Legislature adopted the Committee Substitute for House Bill 2352. On
April 29, 2013, the Governor signed the statutory revisions into law.
These changes became effective under State law on July 12, 2013.
Senate Bill 462 amends W. Va. Code secs. 22-3-20 and 21 to ensure
the State's requirements for informal conferences and decisions on
surface coal mining permit applications conform, more closely, with
parallel provisions of Federal law. The West Virginia Legislature
passed Senate Bill 462 on April 11, 2013, and the Governor signed it
into law on April 29, 2013. The changes became effective under West
Virginia law on July 10, 2013. We announced West Virginia's proposed
amendments in the May 20, 2014, Federal Register (79 FR 28858). In that
notice we also opened the public comment period and provided an
opportunity for a public hearing on the provisions (Administrative
Record Number WV-1588). The public comment period closed on June 19,
2014.
On June 6, 2014, the West Virginia State Tax Department filed a
Special Reclamation Tax Credit Rule with the Secretary of State to
implement the special reclamation tax incentive revisions at W. Va.
Code sec. 22-3-11(g) and (h) for coal mine operators who reclaim bond
forfeiture sites within the State. The Committee Substitute for Senate
Bill 167 authorized the statutory revisions. On March 8, 2014, the West
Virginia Legislature passed the revisions to the statute. The Governor
approved the bill on March 31, 2014. On August 7, 2014, WVDEP submitted
the proposed rule to us at a meeting of the Special Reclamation Fund
Advisory Council (Administrative Record Number WV-1597). The Special
Reclamation Tax Credit Rule is set forth in the West Virginia
regulations, known as the West Virginia Code of State Rules (CSR) at
secs. 110-29-1 through 6. We announced the proposed regulatory
revisions in the Federal Register on November 13, 2014 (79 FR 67396)
and reopened the comment period to provide the public 15 additional
days to comment on the proposed rule (Administrative Record Number WV-
1598). The public comment period closed on November 28, 2014.
III. OSMRE's Findings
Following are OSMRE's findings about West Virginia's amendments
under SMCRA and the Federal regulations at 30 CFR 732.15 and 732.17. As
discussed below, we are approving the proposed State statutory and
regulatory amendments with certain understandings. Any non-substantive
wording or editorial changes that are not specifically discussed below
have been approved without further discussion. However, the full text
of the program amendment is available at https://www.regulations.gov.
A. W. Va. Code Sec. 22-3-11(g) and (h)--Special Reclamation Tax
Incentive
In accordance with Committee Substitute for House Bill 2352, the
State proposes to add new language to sec. 22-3-11(g) and (h) of the W.
Va. Code, which encompasses the WVSCMRA, providing coal mine operators
with tax incentives to reclaim bond forfeiture sites within the State.
Subsection (g)(3)(A) provides that a tax credit shall be granted
against the special reclamation tax imposed by subsection (i) of W. Va.
Code sec. 22-3-11 to any coal mine operator who performs reclamation or
remediation at a bond forfeiture site, which otherwise would have been
reclaimed using funds from the Special Reclamation Fund or Special
Reclamation Water Trust Fund. West Virginia Code sec. 22-3-11(i), which
is part of the West Virginia program, imposes a tonnage tax upon mined,
cleaned coal. Proceeds generated by this tax are deposited in the
Special Reclamation Fund and the Special Reclamation Water Trust Fund.
West Virginia Code sec. 22-3-11(g)(3)(B) provides that the amount of
the reclamation tax credit granted shall be equal to the amount that
the Tax Commissioner determines, based on the project costs as shown in
the records of the Secretary, that would have been spent from the
Special Reclamation Fund or Special Reclamation Water Trust Fund to
accomplish the reclamation or remediation performed by the coal mine
operator. This also includes expenditures for water treatment. West
Virginia Code sec. 22-3-11(g)(3)(C) provides that to claim the credit,
the mine operator must file with the Tax Commissioner a written
application seeking the amount of the credit earned. Within 30 days of
receipt of the application, the Tax Commissioner will issue a
certification of the amount of tax credit to be allocated to the
eligible taxpayer. If the amount of the credit is less than the amount
applied for, the Tax Commissioner must set forth in writing the reasons
for the difference. If no certification is issued within the 30-day
period, the application will be deemed certified. Any decision of the
Tax Commissioner is appealable pursuant to the West Virginia Tax
Procedure and Administration Act as set forth in Chapter 11, Article 10
of the West Virginia Code. Applications for certification of the
proposed tax credit must contain the information required and be in the
detail and format as required by the Tax Commissioner.
These proposed revisions are intended to provide tax incentives for
coal mine operators who reclaim bond forfeiture sites within the State
that would normally be reclaimed by WVDEP's Office of Special
Reclamation (OSR) through the State's alternative bonding system, which
is commonly known as the Special Reclamation Fund. We are approving W.
Va. Code sec. 22-3-11(g)(3) with the understanding that the reclamation
of a bond forfeiture site by another party must be done in a timely
manner and in accordance with the approved reclamation plan or
modification thereof, including the treatment of any water pollution
discharge. Each reclamation plan should include a description of the
measures an operator must take during the reclamation process to ensure
the protection of the quality and quantity of surface water and
groundwater systems. In addition, discharges from bond forfeiture sites
within West Virginia are subject to National Pollutant Discharge
Elimination System (NPDES) permitting requirements, including
compliance with applicable water quality standards. An operator must
demonstrate compliance with applicable effluent limitations and water
quality standards to ensure that the hydrologic balance is preserved.
Furthermore, as provided by W. Va. Code sec. 22-3-11(g)(3)(B),
reimbursement for such reclamation must be limited to the amount of
money that OSR would have expended to complete the bond forfeiture
reclamation project. Finally, if the Tax Commissioner fails to issue a
tax credit
[[Page 12741]]
certification within the required time period, as provided by W. Va.
Code sec. 22-3-11(g)(3)(C), the amount of reimbursement provided to the
operator cannot exceed the estimated cost of reclamation by the State.
Given these requirements, we find that the proposed revisions at W. Va.
Code sec. 22-3-11(g)(3) are not inconsistent with the Federal bonding
requirements at sections 509 and 519 of SMCRA (30 U.S.C. 1259 and 1269)
and 30 CFR 800.11(e) and 30 CFR 800.50. Therefore, we approve West
Virginia's submission.
The proposed addition of W. Va. Code sec. 22-3-11(h) grants the Tax
Commissioner authority to promulgate rules for legislative approval to
carry out the purposes of this section. The pre-existing subsections
(i) through (o) have been re-lettered to conform to the proposed
changes.
The promulgation of legislative rules by the West Virginia Tax
Commissioner, as provided by subsection (h), to implement the tax
incentive requirements at subsection (g) are addressed in Finding D
below. The other changes to W. Va. Code sec. 22-3-11(i) through (o) are
found to be non-substantive; thus, requiring no further action.
B. W. Va. Code Sec. 22-3-20--Informal Conference
In accordance with Senate Bill 462, West Virginia proposes to
revise language extending the time to hold informal conferences on
surface coal mining permit applications. Proposed subsection 20(b)
provides when an informal conference will be held on a surface coal
mining permit application. The State currently requires that informal
conferences be held within three weeks after the public comment period
closes. Under the proposed amendment, the Secretary must hold the
informal conference on the surface coal mining permit application
within a reasonable time after the close of the public comment period.
As proposed, subsection 20(b) provides that if any person with an
interest that may be adversely affected by the mining operation or the
officer or head of any Federal, state, or local governmental agency may
file written objections and request an informal conference within 30
days of the last publication of the required legal advertisement. Upon
a request, the Secretary shall hold an informal conference in the
locality of the proposed mining operation within a reasonable time
after the close of the public comment period. West Virginia did not
explain its decision for changing the timeframe for holding an informal
conference on a permit application.
While the Federal regulations at 30 CFR 773.6(c)(2) also require
the regulatory authority to hold an informal conference ``within a
reasonable time following the receipt of the request,'' we encourage
West Virginia to consider modifying its regulations at W. Va. CSR sec.
38-2-3.2.d and W. Va. CSR sec. 38-2-3.27.c.2 and specify a deadline for
holding an informal conference on a permit application. When crafting
the Federal regulations, we granted the regulatory authority discretion
to determine what was ``reasonable'' in accordance with its approved
program. Failure to hold a timely informal conference could result in
unnecessary delays in rendering a decision on a permit application.
Nevertheless, we find that the proposed revision at W. Va. Code sec.
22-3-20(b) is not inconsistent with the Federal informal conference
provisions at 30 CFR 773.6(c) and 773.7(a) and section 513 and 514 of
SMCRA (30 U.S.C. 1263 and 1264). Therefore, we are approving the
proposed amendment to W. Va. Code sec. 22-3-20(b).
C. W. Va. Code Sec. 22-3-21--Informal Conference
In accordance with Senate Bill 462, West Virginia proposes to
extend the time in which the Secretary must issue or deny a permit
application. Currently, if an informal conference is held, the
Secretary must issue a decision granting or denying a permit, in whole,
or in part, within 30 days of the informal conference. Under the
proposed revision, West Virginia seeks to extend the time for the
Secretary to issue or deny a surface coal mining permit from 30 days to
60 days.
The proposed State revision mirrors the Federal provisions at 30
CFR 773.7(a) and section 514 of SMCRA (30 U.S.C. 1264). We find the
proposed revision at W. Va. Code sec. 22-3-21(a) to be no less
effective than the Federal informal conference provisions at 30 CFR
773.7 and no less stringent than section 514 of SMCRA. Therefore, we
are approving the proposed amendment to W. Va. Code sec. 22-3-21.
D. W. Va. CSR Sec. 110-29-1--Special Reclamation Tax Credit
This proposed amendment to the West Virginia regulations clarifies
and implements the proposed revisions to W. Va. Code sec. 22-3-11(g)
and (h) relating to special reclamation tax incentives for mine
operators who reclaim bond forfeiture sites within West Virginia. West
Virginia proposes to add the Special Reclamation Tax Credit regulations
it proposed in W. Va. CSR secs. 110-29-1 through 110-29-6, which would
represent a new section of the West Virginia regulations.
As discussed in OSMRE's November 13, 2014, Federal Register (79 FR
6739), non-substantive additions to W. Va. CSR sec. 110-29-2 include
definitions of ``Act,'' ``Bond forfeited mine site,'' ``Secretary,''
and ``Tax Commissioner.'' Therefore, no further action is required
regarding those changes.
Proposed W. Va. CSR sec. 110-29-1.5 clarifies that the special
reclamation tax credit is only available to qualified operators for
taxable years beginning on or after July 12, 2013. In addition, W. Va.
CSR sec. 110-29-3.3 provides that the tax credit may only be taken
against the special reclamation tax imposed under W Va. Code sec. 22-3-
11.
Proposed W. Va. CSR sec. 110-29-2.4 defines ``qualified operator''
as any person who obtains a permit under the WVSCMRA to mine coal and
perform reclamation on a bond forfeited mine site and that qualifies
for the special reclamation tax credit.
Proposed W. Va. CSR sec. 110-29-4 sets forth requirements governing
the application for and the amount of the tax credit. Subsection 4
provides that a qualified operator may reclaim the bond forfeited mine
site pursuant to either an Article 3 [surface or underground mining]
permit or a reclamation agreement. The amount of tax credit granted to
the qualified operator is based on the amount of money that would have
been spent from the Special Reclamation Fund and the Special
Reclamation Water Trust Fund on the bond-forfeited site for land
reclamation and/or water treatment as determined and certified by the
WVDEP Secretary.
Proposed W. Va. CSR sec. 110-29-5 specifies operator eligibility
requirements for the tax credit and the limitation of the tax credit.
An operator is not eligible to receive a tax credit for performing
reclamation on a mine site that he or she has previously forfeited. A
qualified operator may use the tax credit to offset payment of, or
liability for, the special reclamation tax for the tax year or carry it
forward for use in future tax years until no credit is remaining.
Proposed W. Va. CSR sec. 110-29-6 contains general procedures to
claim and administer the tax credit. The qualified operator must
provide complete and accurate forms and other information to claim the
tax credit. In addition, the qualified operator must maintain records
to verify the validity of its eligibility for the tax credit and the
amount of tax credit claimed. Finally,
[[Page 12742]]
the Tax Commissioner has the authority to audit the qualified operator.
West Virginia currently has 268 bond forfeiture sites in various
stages of land reclamation. In addition, water treatment activities are
ongoing at 163 bond forfeiture sites, and water discharges at other
bond forfeiture sites are being evaluated and may require treatment by
the State. The proposed special reclamation tax credit requirements are
intended to provide the WVDEP an alternative means of reclaiming bond
forfeiture sites under West Virginia's alternative bonding program.
However, bond forfeiture reclamation, including water treatment, by a
qualified operator or other party must comply with the same standards
established under the approved program. Nothing in the proposed rule,
as described above, can modify or supersede West Virginia's permanent
regulatory program requirements as approved by OSMRE. It is with this
understanding that we find the proposed Special Reclamation Tax Credit
provisions at W. Va. CSR secs. 110-29-1 through 6 to be no less
stringent than the Federal statutory bonding requirements at sections
509 and 519 of SMCRA and no less effective than the Federal regulations
at 30 CFR 800.11(e) and 800.50. Therefore, we approve the proposed
amendment.
IV. Summary and Disposition of Comments
Public Comments
We requested public comments on the proposed amendments; however,
we did not receive any public comments.
Federal Agency Comments
On May 22, 2014, and September 22, 2014, under 30 CFR
732.17(h)(11)(i) and section 503(b) of SMCRA (30 U.S.C. 1253), we
requested comments on the amendments from various Federal agencies with
an actual or potential interest in the West Virginia program
(Administrative Record Numbers WV-1589 and WV-1601).
The Mine Safety and Health Administration, U.S. Department of Labor
(MSHA) submitted its response on June 27, 2014, (Administrative Record
Number 1591). MSHA did not have any comments on the proposed changes to
the revisions in West Virginia's permanent surface coal mining
regulatory program.
The Bureau of Land Management (BLM) submitted its response on June
30, 2014, (Administrative Record Number 1592). The BLM did not have any
comments on the proposed changes to the revisions in West Virginia's
permanent surface coal mining regulatory program.
The Natural Resources Conservation Services (NRCS) submitted its
response on June 27, 2014, (Administrative Record Number 1593). The
NRCS did not have any comments on the proposed changes to the revisions
in West Virginia's permanent surface coal mining regulatory program.
Environmental Protection Agency (EPA) Comments and Concurrence
Under 30 CFR 732.17(h)(11)(ii), we are required to get a written
concurrence from EPA for those provisions of the program amendment that
relate to air or water quality standards issued under the authority of
the Clean Water Act (33 U.S.C. 1251 et seq.) or the Clean Air Act (42
U.S.C. 7401 et seq.). None of the revisions that West Virginia proposed
to make in this amendment pertain to air or water quality standards.
Therefore, we did not ask EPA to concur on the amendment. However, on
May 22, 2014 and September 22, 2014, under 30 CFR 732.17(h)(11)(i), we
requested comments from the EPA on the amendments (Administrative
Record Nos. 1589 and 1601). EPA did submit the following comments on
the proposed State amendments.
On July 24, 2014, EPA Region III provided us with comments on the
State's statutory proposal to provide operators tax incentives for
reclaiming bond forfeiture sites. According to EPA, discharges from
bond forfeiture sites are subject to NPDES permitting requirements,
including compliance with applicable water quality standards. In
addition, the concept of reclamation includes protection and/or
restoration of the hydrologic balance, including water quality. EPA
noted that each reclamation plan should include a detailed description
of the measures to be taken during the reclamation process to ensure
the protection of the quality of surface and ground water systems, both
on-site and off-site. EPA stated that the reclamation plan and funding
mechanisms should account for the need to comply with applicable
provisions of the Clean Water Act. EPA acknowledged that it supports
all efforts toward finding the most effective approaches for mitigating
future drainage problems from bond forfeiture mining operations.
According to EPA, to prevent and/or remediate perpetual postmining
drainage problems, it is important to have both a well-funded bonding
program and incentives for operators to assist with reclamation of bond
forfeiture mine sites.
On October 20, 2014, EPA submitted a response to our request for
comments on the State's proposed Special Reclamation Tax Credit Rule.
EPA acknowledged that it had reviewed the proposed amendment, but it
would not be providing comments on it. However, they appreciated the
opportunity to review the proposed revisions.
As discussed herein, we are approving the proposed amendments with
the understanding that discharges from bond forfeiture sites within
West Virginia will comply with NPDES permitting requirements, including
applicable water quality standards. Furthermore, we agree that West
Virginia's alternative bonding system must provide sufficient revenue
to ensure that discharges from bond forfeiture sites will comply with
applicable Clean Water Act provisions. We also agree that to prevent
and/or remediate perpetual postmining drainage problems, it is
important to have both a well-funded bonding program and incentives for
operators to assist with the reclamation of bond forfeiture mine sites.
Finally, we find that the proposed amendments, if implemented as
discussed herein, should ensure that WVDEP will be able to achieve
these objectives, while providing operators incentives to assist in the
reclamation of bond forfeiture sites within West Virginia.
State Historical Preservation Officer (SHPO) and the Advisory Council
on Historic Preservation (ACHP)
Under Federal regulations at 30 CFR 732.17(h)(4), we are required
to solicit comments from the SHPO and ACHP on amendments that may have
an effect on historic properties. Although we requested comments on
both proposed State statutory and regulatory amendments, we did not
receive comments from the SHPO or ACHP on either amendment.
V. OSMRE's Decision
Based on the above findings, we are approving amendments that
provide tax incentives for operators who reclaim bond forfeiture sites
and revisions to West Virginia's informal conference provisions as
submitted by WVDEP on August 14, 2013 (Administrative Record Number WV-
1587). However, as discussed in Finding A, above, we are approving the
revisions to W. Va. Code sec. 22-3-11(g) with the understanding that
the reclamation of a bond forfeiture site by another party must be done
in a timely manner and in accordance with the approved reclamation plan
or modification thereof. In addition, discharges from bond forfeiture
sites are subject to NPDES permitting requirements, including
applicable
[[Page 12743]]
water quality standards. Reimbursement for such reclamation must be
limited to the amount of money that WVDEP would have expended to
complete the bond forfeiture reclamation project. Finally, if the Tax
Commissioner fails to issue a tax credit certification within the
required time period, the amount of reimbursement provided to the
operator cannot exceed the estimated cost of reclamation by the State.
If, in future oversight reviews, we should determine that West Virginia
is not applying these provisions in accordance with our approval, other
amendments may be required.
We are also approving the State's Special Reclamation Tax Credit
Rule, found at W. Va. CSR secs. 110-29-1 through 6 as submitted by
WVDEP on August 7, 2014 (Administrative Record Number WV-1597). West
Virginia's proposed revisions at W. Va. Code sec. 22-3-11(g) clarify
the special reclamation tax incentive provisions. However, as discussed
above in Finding D, we are approving the Special Reclamation Tax Credit
Rule with certain stipulations. Reclamation, including water treatment,
by a qualified operator or other party at a bond forfeiture site under
this amendment must comply with the same standards as required under
the approved program. In addition, nothing in the proposed amendment
can modify or supersede West Virginia's permanent regulatory program
requirements as approved by us.
To implement these decisions, we are amending the Federal
regulations at 30 CFR part 948 to codify decisions concerning the West
Virginia program. In accordance with the Administrative Procedure Act
(5 U.S.C. 553(d)(3)), this rule will take effect 30 days after the date
of publication. Section 503(a) of SMCRA (30 U.S.C. 1253(a)) requires
that a State program demonstrate that such State has the capability of
carrying out the provisions of the Act and meeting its purposes. SMCRA
requires consistency of State and Federal standards.
VI. Statutory and Executive Order Reviews
Executive Order 12630--Governmental Actions and Interference With
Constitutionally Protected Property Rights
This rule would not affect a taking of private property or
otherwise have taking implications that would result in property being
taken for government use without just compensation under the law.
Therefore, a takings implication assessment is not required. This
determination is based on an analysis of the corresponding Federal
regulations.
Executive Order 12866--Regulatory Planning and Review and 13563--
Improving Regulation and Regulatory Review
Executive Order 12866 provides that the Office of Information and
Regulatory Affairs in the Office of Management and Budget (OMB) will
review all significant rules. Pursuant to OMB guidance, dated October
12, 1993, the approval of state program amendments is exempted from OMB
review under Executive Order 12866. Executive Order 13563, which
reaffirms and supplements Executive Order 12866, retains this
exemption.
Executive Order 13771--Reducing Regulation and Controlling Regulatory
Costs
State program amendments are not regulatory actions under Executive
Order 13771 because they are exempt from review under Executive Order
12866.
Executive Order 12988--Civil Justice Reform
The Department of the Interior has reviewed this rule as required
by section 3(a) of Executive Order 12988. The Department has determined
that this Federal Register notification meets the criteria of Section 3
of Executive Order 12988, which is intended to ensure that the agency
reviews its legislation and proposed regulations to eliminate drafting
errors and ambiguity; that the agency writes its legislation and
regulations to minimize litigation, and that the agency's legislation
and regulations provide a clear legal standard for affected conduct
rather than a general standard, and promote simplification and burden
reduction. Because Section 3 focuses on the quality of Federal
legislation and regulations, the Department limited its review under
this Executive order to the quality of this Federal Register document
and to changes to the Federal regulations. The review under this
Executive order did not extend to the language of the State regulatory
program or to the program amendment that the State of West Virginia
drafted.
Executive Order 13132--Federalism
This rule is not a ``[p]olicy that [has] Federalism implications''
as defined by Section 1(a) of Executive Order 13132 because it does not
have ``substantial direct effects on the States, or on the distribution
of power and responsibilities among the various levels of government.''
Instead, this rule approves an amendment to the West Virginia program
submitted and drafted by that State. We reviewed the submission with
fundamental federalism principles in mind as set forth in Sections 2
and 3 of the Executive order and with the principles of cooperative
federalism, as set forth in SMCRA. See, e.g., 30 U.S.C. 1201(f).
Specifically, pursuant to Section 503(a)(1) and (7)(30 U.S.C.
1253(a)(1) and (7)), we reviewed the program amendment to ensure that
it is ``in accordance with'' the requirements of SMCRA and ``consistent
with'' the regulations issued by the Secretary pursuant to SMCRA.
Executive Order 13175--Consultation and Coordination With Indian Tribal
Governments
The Department of the Interior strives to strengthen its
government-to-government relationship with Tribes through a commitment
to consultation with Tribes and recognition of their right to self-
governance and tribal sovereignty. We have evaluated this rule under
the Department's consultation policy and under the criteria in
Executive Order 13175, and have determined that it has no substantial
direct effects on federally recognized Tribes or on the distribution of
power and responsibilities between the Federal Government and Tribes.
Therefore, consultation under the Department's tribal consultation
policy is not required. The basis for this determination is that our
decision is on the West Virginia program, which does not include Tribal
lands or regulation of activities on Tribal lands. Tribal lands are
regulated independently under the applicable, approved Federal program.
Executive Order 13211--Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
Executive Order 13211 requires agencies to prepare a Statement of
Energy Effects for a rulemaking that is: (1) Considered significant
under Executive Order 12866, and (2) likely to have a significant
adverse effect on the supply, distribution, or use of energy. Because
this rule is exempt from review under Executive Order 12866 and is not
a significant energy action under the definition in Executive Order
13211, a Statement of Energy Effects is not required.
Executive Order 13045--Protection of Children From Environmental Health
Risks and Safety Risks
This rule is not subject to Executive Order 13045 because this is
not an economically significant regulatory
[[Page 12744]]
action as defined by Executive Order 12866; and this action does not
address environmental health or safety risks disproportionately
affecting children.
National Environmental Policy Act
Consistent with sections 501(a) and 702(d) of SMCRA (30 U.S.C.
1251(a) and 1292(d), respectively) and the U.S. Department of the
Interior Departmental Manual, part 516, section 13.5(A), state program
amendments are not major Federal actions within the meaning of section
102(2)(C) of the National Environmental Policy Act (42 U.S.C.
4332(2)(C)).
National Technology Transfer and Advancement Act
Section 12(d) of the National Technology Transfer and Advancement
Act (NTTAA) (15 U.S.C. 3701 et seq.) directs us to use voluntary
consensus standards in our regulatory activities unless to do so would
be inconsistent with applicable law or otherwise impractical. (OMB
Circular A-119 at p. 14). This action is not subject to the
requirements of section 12(d) of the NTTAA because application of those
requirements would be inconsistent with SMCRA.
Paperwork Reduction Act
This rule does not include requests and requirements of an
individual, partnership, or corporation to obtain information and
report it to a Federal agency. As this rule does not contain
information collection requirements, a submission to OMB under the
Paperwork Reduction Act (44 U.S.C. 3501 et seq.) is not required.
Regulatory Flexibility Act
This rule will not have a significant economic impact on a
substantial number of small entities under the Regulatory Flexibility
Act (5 U.S.C. 601 et seq.). The State submittal, which is the subject
of this rule, is based upon corresponding Federal regulations for which
an economic analysis was prepared and certification made that such
regulations would not have a significant economic effect upon a
substantial number of small entities. In making the determination as to
whether this rule would have a significant economic impact, the
Department relied upon the data and assumptions for the corresponding
Federal regulations.
Small Business Regulatory Enforcement Fairness Act
This rule is not a major rule under 5 U.S.C. 804(2), the Small
Business Regulatory Enforcement Fairness Act. This rule: (a) Does not
have an annual effect on the economy of $100 million; (b) will not
cause a major increase in costs or prices for consumers, individual
industries, Federal, State, or local government agencies, or geographic
regions; and (c) does not have significant adverse effects on
competition, employment, investment, productivity, innovation, or the
ability of U.S. based enterprises to compete with foreign-based
enterprises. This determination is based on an analysis of the
corresponding Federal regulations, which were determined not to
constitute a major rule.
Unfunded Mandates Reform Act
This rule will not impose an unfunded mandate on State, local, or
Tribal governments, or the private sector of more than $100 million per
year. The rule does not have a significant or unique effect on State,
local, or Tribal governments or the private sector. This determination
is based on an analysis of the corresponding Federal regulations, which
were determined not to impose an unfunded mandate. Therefore, a
statement containing the information required by the Unfunded Mandates
Reform Act (2 U.S.C. 1531 et seq.) is not required.
List of Subjects in 30 CFR Part 948
Intergovernmental relations, Surface mining, Underground mining.
Dated: October 11, 2019.
Thomas D. Shope,
Regional Director, North Atlantic--Appalachian Region.
Editorial note: This document was received for publication by
the Office of the Federal Register on February 20, 2020.
For the reasons set out in the preamble, 30 CFR part 948 is amended
as set forth below:
PART 948--WEST VIRGINIA
0
1. The authority citation for part 948 continues to read as follows:
Authority: 30 U.S.C. 1201 et seq.
0
2. Section 948.15 is amended by adding the entry ``W.Va. Code 22-3-
11(g) and (h) (qualified) W. Va. Code 22-3-20 W. Va. Code 22-3-21 CSR
110-29-1 through 6, Special Reclamation Tax Credit Rule (qualified)''
to the table in chronological order by ``Date of publication of final
rule'' to read as follows:
Sec. 948.15 Approval of West Virginia regulatory program amendments.
* * * * *
------------------------------------------------------------------------
Date of
Original amendment submission publication of Citation/description
dates final rule
------------------------------------------------------------------------
* * * * * * *
August 14, 2013............... March 4, 2020.... W.Va. Code 22-3-11(g)
August 7, 2014................ and (h) (qualified)
W.Va. Code 22-3-20,
W. Va. Code 22-3-21,
CSR 110-29-1 through
6, Special
Reclamation Tax
Credit Rule
(qualified).
------------------------------------------------------------------------
[FR Doc. 2020-03751 Filed 3-3-20; 8:45 am]
BILLING CODE 4310-05-P