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Rule2025-20831

Prior Balance Replacement Funds

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Published

November 24, 2025

Effective

January 23, 2026

Issuing agencies

Interior DepartmentSurface Mining Reclamation and Enforcement Office

Abstract

This direct final rule revises the Federal regulations to rescind references to prior balance replacement funds, which are moneys from the United States Treasury's General Fund that replaced State or Tribal share funds that were allocated before October 1, 2007, but never appropriated by Congress, and to make minor conforming language changes.

Full Text

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<title>Federal Register, Volume 90 Issue 224 (Monday, November 24, 2025)</title>
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[Federal Register Volume 90, Number 224 (Monday, November 24, 2025)]
[Rules and Regulations]
[Pages 52862-52865]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-20831]

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DEPARTMENT OF THE INTERIOR

Office of Surface Mining Reclamation and Enforcement

30 CFR Parts 872, 874, 875, 879, 886, and 887

[Docket No. OSM-2025-0016; S1D1S SS08011000 SX064A000 256S180110; S2D2S
SS08011000 SX064A000 25XS501520]
RIN 1029-AD00

Prior Balance Replacement Funds

AGENCY: Office of Surface Mining Reclamation and Enforcement, Interior.

ACTION: Direct final rule; request for comments.

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SUMMARY: This direct final rule revises the Federal regulations to
rescind references to prior balance replacement funds, which are moneys
from the United States Treasury's General Fund that replaced State or
Tribal share funds that were allocated before October 1, 2007, but
never appropriated by Congress, and to make minor conforming language
changes.

DATES: The final rule is effective January 23, 2026, unless significant
adverse comments are received by December 24, 2025. If significant
adverse comments are received, notice will be published in the Federal
Register before the effective date either withdrawing the rule or
issuing a new final rule that responds to significant adverse comments.

ADDRESSES: You may submit comments by one of the following methods:
<bullet> Electronically: Go to the Federal eRulemaking Portal:
<a href="https://www.regulations.gov">https://www.regulations.gov</a> and search for Docket Number OSM-2025-0016.
Follow the instructions for submitting comments.
<bullet> By hard copy: Submit by U.S. mail to Division of
Regulatory Support, Office of Surface Mining Reclamation and
Enforcement, Department of the Interior, Attn: James Tyree, 1849 C
Street NW, Mail Stop 4557, Washington, DC 20240.

FOR FURTHER INFORMATION CONTACT: James Tyree, Chief, Division of
Regulatory Support, (202) 208-4479, <a href="/cdn-cgi/l/email-protection#bdd7c9c4cfd8d8fdd2ced0cfd893dad2cb"><span class="__cf_email__" data-cfemail="d4bea0ada6b1b194bba7b9a6b1fab3bba2">[email&#160;protected]</span></a>. Individuals in
the United States who are deaf, deafblind, hard of hearing, or have a
speech disability may dial 711 (TTY, TDD, or TeleBraille) to access
telecommunications relay services. Individuals outside the United
States should use the relay services offered within their country to
make international calls to the point-of-contact in the United States.

SUPPLEMENTARY INFORMATION: The Federal regulations at 30 CFR chapter
VII, subchapter R contain various references to prior balance
replacement funds, which are moneys from the United States Treasury's
General Fund that replaced State or Tribal share funds that were
allocated before October 1, 2007, but never appropriated by Congress.
Section 411(h)(1) of the Surface Mining Control and Reclamation Act of
1977 (SMCRA) required the Office of Surface Mining Reclamation and
Enforcement (OSMRE) to distribute prior balance replacement funds to
eligible States and Tribes for seven years, beginning October 1, 2008.
As the distribution of prior balance replacement funds is complete, the
Department of the Interior (Department) and OSMRE have determined that
all remaining references to prior balance replacement funds in 30 CFR
chapter VII, subchapter R should be rescinded and that the remaining
language in 30

[[Page 52863]]

CFR 872.21(b) should be lightly edited to improve clarity and ensure
correct grammar and punctuation. To the extent States or Tribes may
have any unspent prior balance replacement funds, those funds will be
governed by the regulations that were in place at the time of the
initial grant award.
In addition, the Federal regulations at 30 CFR 872.35(a) currently
refer to a $490 million cap on the amount of funds available each
fiscal year to be transferred by the Secretary of the Treasury to the
Secretary of the Interior for payments under section 402(i) of SMCRA.
However, the Bipartisan American Miners Act of 2019 amended section
402(i) of SMCRA to raise the cap on the amount of Treasury funds
available for transfer from $490 million to $750 million. The
Department and OSMRE have determined that 30 CFR 872.35(a) should be
amended to be consistent with SMCRA and accurately reflect the $750
million cap.
The Department has determined that these reasons, independently and
alone, justify amending the regulatory language and rescinding all
remaining references to prior balance replacement funds in 30 CFR
chapter VII, subchapter R. The Department has no interest in
maintaining rules that are obsolete or inconsistent with applicable
law.
The Department is issuing this rule as a direct final rule.
Although the Administrative Procedure Act (APA, 5 U.S.C. 551-559)
generally requires agencies to engage in notice and comment rulemaking,
section 553 of the APA provides an exception when the agency ``for good
cause finds'' that notice and comment are ``impracticable, unnecessary,
or contrary to the public interest.'' Id. Sec. 553(b)(B). The
Department has determined that notice and comment are unnecessary
because this rule is noncontroversial; of a minor, technical nature;
involves little agency discretion; and is unlikely to receive any
significant adverse comments. Significant adverse comments are those
that oppose the amendment or rescission of the regulatory language and
raise, alone or in combination, (1) reasons why the amendment or
recission of the regulatory language is inappropriate, including
challenges to the amendment's or recission's underlying premise, or (2)
serious unintended consequences of the amendment or recission. A
comment recommending an addition to the rule will not be considered
significant and adverse unless the comment explains how this direct
final rule would be ineffective without the addition.

Procedural Determinations

Executive Order 12630--Governmental Actions and Interference With
Constitutionally Protected Property Rights

This rule does not result in a taking of private property or
otherwise have regulatory takings implications under Executive Order
12630. The rule amends and rescinds obsolete regulatory language;
therefore, the rule will not result in private property being taken for
public use without just compensation. A takings implication assessment
is not required.

Executive Order 12866--Regulatory Planning and Review and Executive
Order 13563--Improving Regulation and Regulatory Review

Executive Order 12866 provides that the Office of Information and
Regulatory Affairs (OIRA) in the Office of Management and Budget (OMB)
will review all significant rules. OIRA has determined that this rule
is not significant.
Executive Order 13563 reaffirms the principles of Executive Order
12866, while calling for improvements in the Nation's regulatory system
to promote predictability, reduce uncertainty, and use the best, most
innovative, and least burdensome tools for achieving regulatory ends.
Executive Order 13563 directs agencies to consider regulatory
approaches that reduce burdens and maintain flexibility and freedom of
choice for the public where these approaches are relevant, feasible,
and consistent with regulatory objectives. Executive Order 13563
emphasizes further that agencies must base regulations on the best
available science and that the rulemaking process must allow for public
participation and an open exchange of ideas. The Department developed
this rule in a manner consistent with these requirements.

Executive Order 12988--Civil Justice Reform

This direct final rule complies with the requirements of Executive
Order 12988. Among other things, this rule:
(a) Meets the criteria of section 3(a) requiring that all
regulations be reviewed to eliminate errors and ambiguity and be
written to minimize litigation;
(b) Meets the criteria of section 3(b)(2) requiring that all
regulations be written in clear language and contain clear legal
standards.

Executive Order 13132--Federalism

Under the criteria of section 1 of Executive Order 13132, this rule
does not have sufficient federalism implications to warrant the
preparation of a federalism summary impact statement. This rule will
not have substantial direct effects on the States, on the relationship
between the national government and the States, or on the distribution
of power and responsibilities among the various levels of government. A
federalism summary impact statement is not required.

Executive Order 13175--Consultation and Coordination With Indian Tribal
Governments

The Department of the Interior strives to strengthen its
government-to-government relationship with Indian tribes through a
commitment to consultation with Tribes and recognition of their right
to self-governance and Tribal sovereignty. The Department evaluated
this direct final rule under Executive Order 13175 and the Department's
consultation policies and determined that it has no substantial direct
effects on federally recognized Indian tribes and that consultation
under the Department's Tribal consultation policies is not required.
The rule merely revises the Federal regulations to remove or amend
obsolete regulatory language.

Executive Order 13211--Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use

This direct final rule is not a significant energy action as
defined in Executive Order 13211. Therefore, a Statement of Energy
Effects is not required.

National Environmental Policy Act

This direct final rule does not constitute a major Federal action
significantly affecting the quality of the human environment. A
detailed statement under the National Environmental Policy Act (NEPA,
42 U.S.C. 4321 et seq.) is not required because this rule is covered by
a categorical exclusion applicable to regulatory functions ``that are
of an administrative, financial, legal, technical, or procedural
nature.'' 43 CFR 46.210(i). In addition, the Department has determined
that this rule does not involve any of the extraordinary circumstances
listed in 43 CFR 46.215 that would require further analysis under NEPA.

Paperwork Reduction Act

This rule does not impose any new information collection burden
under the Paperwork Reduction Act. OMB

[[Page 52864]]

previously approved the information collection activities contained in
the existing regulations and assigned OMB control numbers 1029-0054,
1029-0113, 1029-0103, 1029-0059, and 1029-0107. This rule does not
impose an information collection burden because the Department is not
making any changes to the information collection requirements.

Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA, 5 U.S.C. 601-612) requires an
agency to prepare a regulatory flexibility analysis for all rules
unless the agency certifies that the rule will not have a significant
economic impact on a substantial number of small entities. The RFA
applies only to rules for which an agency is required to first publish
a proposed rule. See 5 U.S.C. 603(a) and 604(a). As the Department is
not required to publish a notice of proposed rulemaking for this direct
final rule, the RFA does not apply.

Congressional Review Act

This rule is not a major rule under the Congressional Review Act, 5
U.S.C. 804(2). Specifically, the direct final rule: (a) will not have
an annual effect on the economy of $100 million or more; (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) will not have significant adverse effects on
competition, employment, investment, productivity, innovation, or on
the ability of United States-based enterprises to compete with foreign-
based enterprises in domestic and export markets.

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. The rule
merely revises the Federal regulations to remove or amend obsolete
regulatory language that is no longer used. 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

30 CFR Part 872

Indians--lands, Surface mining, Underground mining.

30 CFR Part 874

Indians--lands, Surface mining, Underground mining.

30 CFR Part 875

Indians--lands, Reporting and recordkeeping requirements, Surface
mining, Underground mining.

30 CFR Part 879

Indians--lands, Reporting and recordkeeping requirements, Surface
mining, Underground mining.

30 CFR Part 886

Grant programs--natural resources, Indians--lands, Reporting and
recordkeeping requirements, Surface mining, Underground mining.

30 CFR Part 887

Grant programs--natural resources, Insurance, Surface mining,
Underground mining.

Leslie Shockley Beyer,
Assistant Secretary, Land and Minerals Management

For the reasons stated in the preamble, the Department of the
Interior amends 30 CFR parts 872, 874, 875, 879, 886, and 887 as
follows:

PART 872--MONEYS AVAILABLE TO ELIGIBLE STATES AND INDIAN TRIBES

0
1. The authority citation for part 872 continues to read as follows:

Authority: 30 U.S.C. 1201 et seq., Pub. L. 117-58.

0
2. In Sec. 872.21, revise paragraph (b) to read as follows:
* * * * *
(b) Historic coal funds also include:
(1) Moneys we reallocated under section 411(h)(1)(A)(ii) of SMCRA,
which will be available to supplement grants beginning with Federal
fiscal year 2036; and
(2) Moneys we reallocate based on certified in lieu funds
distributed under sections 401(f)(3)(A)(i) and 411(h)(4) of SMCRA and
Sec. 872.32 of this chapter, which will be available to supplement
grants in Federal fiscal years 2009 through 2035.
0
3. In Sec. 872.26, revise paragraphs (b)(3) and (b)(4) to read as
follows:
* * * * *
(b) * * *
(1) * * *
(2) * * *
(3) The total amount you receive annually from State share funds
(Sec. 872.14) or Tribal share funds (Sec. 872.17) and historic coal
funds (Sec. 872.21) must be less than $3 million; and
(4) You must need more than the total of funds you will receive
from State or Tribal share and historic coal funds to reclaim Priority
1 and 2 coal problems under sections 403(a)(1) and (2) of SMCRA in your
State or on Indian lands within your jurisdiction.
* * * * *

0
4. In section 872.35, revise paragraph (a) to read as follows:

Sec. 872.35 When will OSMRE reduce the amount of certified in lieu
funds distributed to you?

(a) In any fiscal year in which the amount of Treasury funds
required to be transferred under Sec. 872.33 of this chapter and under
section 402(i)(1) of SMCRA exceeds the maximum annual limit of $750
million, we will adjust the amount of these payments to reduce them to
the level of the cap. Each distribution or transfer for the FY will be
reduced by the same percentage.
* * * * *

PART 874--GENERAL RECLAMATION REQUIREMENTS

0
5. The authority citation for part 874 continues to read as follows: