	Introduction

On July 16, 2015, the Office of Surface Mining Reclamation and Enforcement (OSM) of the Department of the Interior proposed a Stream Protection Rule. It would revise regulations that implement Title V of the Surface Mining Control and Reclamation Act (SMCRA), the law that governs the permitting of coal mining operations. Portions of the existing rules were promulgated more than 30 years ago. OSM asserts that updated rules, which have been under development for more than five years, are needed to reflect current science, technology, and modern mining practices. To stakeholders, the proposed rule raised a number of issues, including whether new federal rules are needed and, in particular, whether OSM's proposed approach will improve and strengthen implementation of the law. At the same time, some environmental advocacy groups that have generally supported OSM's efforts to strengthen regulation of coal mining operations now contended that the proposed rule was not strong enough. Thus, a related issue is whether an alternative regulatory approach with greater benefits but also increased costs would better achieve SMCRA's purposes. This report is intended to assist consideration of issues raised by the Stream Protection Rule. The report briefly describes SMCRA and the context for the 2015 proposed rule. It discusses major elements of the 2015 proposal and OSM's estimates of its impacts (costs and benefits). Finally, it highlights key elements of the final rule, which was released by OSM on December 19, 2016. In order to protect streams from sedimentation and channel disturbance, the 1983 buffer zone rules provided that no land within 100 feet of a perennial or intermittent stream shall be disturbed by surface mining activities, including the dumping of mining waste, unless the regulatory authority grants a variance that specifically authorizes surface mining activities closer to or through such a stream. As indicated since 2009, the proposal—now called the Stream Protection Rule—would apply to coal mining activities nationwide, not just Appalachia. However, it included elements from several of the other alternatives considered by OSM that would be more stringent than existing rules, such as new requirements for baseline data collection to determine the impacts of proposed mining operations, more specificity on reclamation plans, and more specificity on measures to protect fish and wildlife from adverse impacts of mining. Impacts of the Proposed Rule

The Draft RIA report presented OSM's estimates of costs and benefits of the proposed rule, and it also described uncertainties associated with the analyses. Costs54

OSM estimated that the coal industry will incur annual compliance costs of $52 million under the proposed rule, above baseline costs that would be incurred in the absence of the rule. The $52 million total consists of $45 million annually for surface coal mining operations and $7 million annually for underground mining operations. Nearly 46% of the expected compliance costs reflect new regulatory requirements on coal mining operations in the Appalachia region. Of the increased costs for operations in Appalachia, OSM estimated that 72% are for costs to surface mining operations there—or, 33% of the total cost of the rule. Qualitatively, the agency projected that the proposed rule would have several types of benefits. States also say that OSM has underestimated administrative costs to regulators that could result from the rule. Some states and mining industry groups have focused particular criticism on OSM for, in their view, failing to adequately consult with affected states during development of the proposed rule. Legislation was introduced in the 114 th Congress to halt or re-direct OSM's activities concerning the Stream Protection Rule. 1644 ), was passed by the House January 12, 2016. Opposition to the final revised rule by coal industry groups and some Members of Congress was immediate after its release, and legislation to overturn the rule was soon introduced, including H.J.Res. 11 and H.J.Res. If the final rule were overturned by legislative or presidential action in the 115 th Congress or by a court, existing rules (i.e., the 1983 stream buffer zone rule) would remain in place, unless or until new rules or guidance were issued.
On July 16, 2015, the Office of Surface Mining Reclamation and Enforcement (OSM) of the Department of the Interior proposed a Stream Protection Rule that would revise regulations implementing Title V of the Surface Mining Control and Reclamation Act (SMCRA). Revised rules are intended to avoid or minimize adverse impacts of coal mining on surface water, groundwater, fish, wildlife, and other natural resources by limiting the mining of coal in or through streams, placement of waste in streams and limiting the generation of mining waste. Some of the existing regulations that would be replaced by the proposed rule were promulgated more than 30 years ago. OSM asserts that updated rules, which have been under development since 2009, are needed to reflect current science, technology, and modern mining practices.
The proposal retained the core of existing rules in many respects, including the stream buffer zone rule. It requires that land within 100 feet of a perennial or intermittent stream shall not be disturbed by surface mining activities, including the dumping of mining waste, unless the regulatory authority grants a variance that specifically authorizes surface mining activities closer to or through such a stream. The 2015 proposed rule, called the Stream Protection Rule, also included new requirements for baseline data collection to determine the impacts of proposed mining operations, more specificity on reclamation plans, and more specificity on measures to protect fish and wildlife.
OSM estimated that the coal industry would incur annual compliance costs of $52 million under the proposal. These costs would be above baseline costs that would be incurred in the absence of the rule. Costs of the proposed rule were expected to consist of $45 million annually for surface coal mining operations and $7 million annually for underground mining operations. Nearly 46% of the expected compliance costs reflect new regulatory requirements on coal mining operations in Appalachian states. Of the increased costs in those states, OSM estimated that 72% are for costs to surface mining operations there—or, 33% of the total cost of the rule. Other regions also are expected to experience operational costs, but impacts are anticipated to vary across mine type (e.g., surface or underground) and region. Because of data limitations, OSM could not quantify benefits of the proposal, but qualitatively, the agency said that the rule is expected to reduce the adverse impacts of coal mining on water resources and aquatic habitat.
To stakeholders, OSM's Stream Protection Rule raised a number of questions, including whether new regulations are needed; if so, whether benefits of the proposed rule justify the projected compliance and associated costs; and whether an alternative regulatory approach with greater benefits but also increased costs would better achieve SMCRA's purposes.
Concern that OSM's efforts to develop a new rule would be costly and burdensome to the coal industry has led to strong congressional interest for some time. Oversight hearings have been held, and legislation was introduced in the 114th Congress to halt or re-direct OSM's initiatives, including H.R. 1644 (passed by the House January 12, 2016), S. 1458, and a provision of H.R. 2822. Mining industry groups were very critical of the costs of the proposal, while environmental groups that have generally supported strengthening SMCRA regulations contended that the rule should be stronger to provide more protection to streams. A number of states say that the rule would undermine state authority and that OSM failed to consult adequately with states during development of the rule.
OSM issued the final revised Stream Protection Rule on December 19, 2016. Opposition by coal industry groups and some Members of Congress was immediate, and legislation to overturn the rule was introduced, including H.J.Res. 11 and H.J.Res. 16 in the 115th Congress. If the final rule were overturned by legislative or presidential action, the existing rules (i.e., the 1983 stream buffer zone rule) would remain in place, unless or until new rules or guidance were issued.
This report briefly describes SMCRA and the context for the 2015 proposed rule. It discusses major elements of the proposal and OSM's estimates of its costs and benefits. It describes congressional activity concerning the proposed rule and highlights key elements of the final rule, which was released on December 19, 2016.