brian bradley, pa dep, “pennsylvania aml/amd program and funding overview”
TRANSCRIPT
Pennsylvania AML/AMD Program and Funding Overview
2016 PA Abandoned Mine Reclamation Conference
June 22-23,2016Indiana University of Pennsylvania
Kovalchick Conference Center Indiana, Pennsylvania
Patrick McDonnell, Acting SecretaryTom Wolf, Governor
BAMR Fund Management Responsibilities
2016 AML Grant for Pennsylvania
• Final 2016 AML Grant Award was approved by OSMRE on February 5, 2016 and is $42,982,188
• DEP transferred $9,386,000 into the AMD Set-Aside Account (21.8%)
$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
• OSMRE developed guidance on use of Pilot Funds• DEP’s proposed list of projects was just released• PA submitted a grant application on March 28 to OSMRE
to make the funding available for projects, the grant application was approved on June 6
Active AML Program Grants (as of 5/31/2016)
• Total amount of active grants (2014, 2015, 2016, and AML Pilot) is $203,538,674
• Each annual AML grant has a 3-year performance period
• Total expenditures to date are $80,345,386• Open commitments on active construction
projects is $73,449,818• Balance for future projects is $36,052,431
Note - Personnel, Equipment, Administration, & Indirect Costs for PA’s AML Program are not Tallied Here
Some Major AML Hazard Projects Underway (>$8 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)
Jeanesville Mine Fire – Carbon County
Ehrenfeld Refuse Pile – Cambria County
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)
Curry Hill/Avondale Strip Pit – Luzerne County
Hazleton Airport Surface Mine Restoration Project – Luzerne County
Acid Mine Drainage Set-Aside Fund (as of 4/30/2016)
• Current fund balance is $73,749,404• $18,715,889 is designated for future
operation and maintenance (O&M) costs at active and passive treatment systems
• $55,033,515 is available for program operating costs and additional AMD treatment projects
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
Hollywood AMD Treatment FacilityBennett Branch Watershed
Clearfield County
$14.6M construction cost (Cap. Budget + GG + AMD Set-aside)
Capital Budget Projects
• BAMR currently has approval for 3 capital budget projects totaling $22,200,0002 Active Treatment Plants
⁻ $10 M – Cresson/Clearfield Creek⁻ $9 M – Wehrum/Blacklick Creek
1 Stream Reconstruction Project⁻ $3.2 M – Alvan/Great Trough Creek
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)
Third-party AMD Trust Funds (as of 03/28/2016)
• BAMR is designated to direct the actions of the trustee on 6 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
Third-party AMD Trust Funds (as of 03/28/2016)
• Barnes & Tucker Trust: $7,868,276.08 • Bennett Branch Trust: $ 362,857,55• Indianola Trust: $ 426,425.32• Lancashire Trust: $3,237,804.85• Passive Treatment Trust: $ 501,100.79• SRBC – Community Foundation for the
Alleghenies Trust: $2,632,131.04
AML & AMDProgram Update
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, 2015
• 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
Status of AMD Set-Aside Program Guidelines
• The original Technical Guidance Document 370-5500-001 was published in DRAFT form on February 21, 2015
• Based on the comments received, a revised/updated version was developed
• A Comment and Response Document (CRD) based on the comments received was also developed
• First legal review is complete and the final TGD and CRD documents are being prepared
• Next is final legal approval and review by the DEP Policy Office, the final TGD and CRD will be published in the PA Bulletin
AMD Set-Aside Program Evaluation - 2015
• 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
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
Guiding Factors
• 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
OSMRE’s AML Grant Projections for PA(Developed by OSMRE October 5, 2015 – Does not Consider Sequestration)
YEAR Grant Amount• 2015 $43.9 [$47.5]• 2016 $46.6 [$46.1]• 2017 $45.4 • 2018 $69.0 • 2019 $69.5 • 2020 $49.9 • 2021 $57.1 • 2022 $58.9 • 2023 $59.6
YEAR Grant Amount • 2024 $54.5 • 2025 $54.6 • 2026 $54.6 • 2027 $57.0 • 2028 $57.5 • 2029 $57.8 • 2030 $57.8 • 2031 $59.7 • 2032 $64.6
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
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)
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
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 OSMRE 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
AML Grant Projections for PA w/RECLAIM
YEAR Grant Amount• 2015 $43.9 • 2016 $46.6 • 2017 $45.4 +$67.5• 2018 $69.0 +$67.5• 2019 $69.5 +$67.5• 2020 $49.9 +$67.5• 2021 $57.1 +$67.5• 2022 $58.9 • 2023 $35.8
YEAR Grant Amount • 2024 $35.8 • 2025 $35.8 • 2026 $8.2 • 2027 $ 0 • 2028 $ 0 • 2029 $ 0 • 2030 $ 0 • 2031 $ 0• 2032 $ 0
Developed by Jointly by IMCC/OSMRE in 2015 based on AMLER Proposal
Without Title IVReauthorization,AML ProgramEnds in 2026
PA AML Program Statistics (2012-2015)
• 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
AML Emergency Program
• OSMRE conducted the federal AML Emergency Program in PA until October 2010
• 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 OSMRE to take delegation and establish an AML Emergency Program
• Currently operating under an interim approval from OSMRE and developing a Reclamation Plan Amendment to permanently establish the AML Emergency Program.
BAMR AML Emergency Program
• Since 2011, BAMR averages 73 AML Emergencies costing $3.9 million annually
• Addressed 72 AML Emergencies during 2015– 10 Contracted Projects– 62 AD/BD Projects– Construction Cost ~$11.3 million
• As of June 17, 2016, BAMR has Initiated work on 30 AML Emergencies so far in 2016
Example Emergency Project – Plymouth Borough, Luzerne County (Anthracite District)
Youth Baseball Field
Other AML Program Updates
• US House Appropriations Committee approved an additional $90M pilot for the proposed FFY 2017 budget – PA would receive $25M
• SMCRA Title IV Reauthorization – Focus on 115th Congress
• Good Samaritan Clean Water Act (CWA) Liability
