The Office of Surface Mining Reclamation and Enforcement (OSMRE), part of the Department of the Interior, has issued a direct final rule to revise federal regulations by rescinding an obsolete reference to prior balance replacement funds. Published in the Federal Register on November 24, 2025, this action removes language from 30 CFR 872.13(a)(5) that pertains to moneys distributed under the Surface Mining Control and Reclamation Act of 1977 (SMCRA). The rule becomes effective on January 23, 2026, unless significant adverse comments are received by December 24, 2025, in which case OSMRE may withdraw or amend it. This technical update eliminates outdated text without impacting current funding mechanisms for states and tribes involved in surface mining reclamation, addressing a provision that has been inactive since fiscal year 2015. The move reflects efforts to streamline regulations by removing completed obligations, ensuring clarity in how OSMRE allocates funds annually to eligible entities.
Background on Prior Balance Replacement Funds
The rescinded provision stems from amendments to SMCRA enacted through the Tax Relief and Health Care Act of 2006. Before October 1, 2007, certain state and tribal share funds were allocated under Title IV of SMCRA but never appropriated by Congress, creating a backlog known as 'prior balances.' To address this, Section 411(h)(1) of SMCRA mandated that OSMRE distribute replacement funds from the U.S. Treasury's General Fund to uncertified states and tribes over seven years, starting October 1, 2008. These payments compensated for the unappropriated amounts, supporting reclamation of abandoned coal mine lands. According to the Federal Register entry, the distribution concluded after the seventh year, rendering the regulatory reference obsolete. OSMRE's action aligns with broader departmental goals to maintain accurate and relevant regulations, as the agency stated: 'The Department has no interest in maintaining a rule that is obsolete.' This context highlights the rule's role in housekeeping, rather than substantive policy change.
Key Regulatory Changes and Rationale
The direct final rule specifically amends 30 CFR Part 872, which outlines the moneys OSMRE must distribute annually to eligible states and tribes with approved reclamation plans. The existing paragraph (a)(5) listed prior balance replacement funds among distributable categories, including state share funds, tribal share funds, historic coal funds, minimum program make-up funds, and certified in-lieu funds. By rescinding this paragraph, the rule renumbers the list but preserves the core framework for ongoing distributions. The rationale is straightforward: distributions ended in fiscal year 2015, and retaining the language serves no purpose. The entry emphasizes that this rescission is justified 'independently and alone' by the provision's obsolescence, with no need for broader policy revisions. OSMRE invoked the Administrative Procedure Act's good cause exception under 5 U.S.C. 553(b)(B), deeming notice-and-comment rulemaking unnecessary for this noncontroversial, technical adjustment. Comments are still invited, but only those deemed 'significant adverse'—such as challenges to the rescission's premise or unintended consequences—could lead to withdrawal.
Procedural and Legal Considerations
OSMRE's procedural determinations underscore the rule's minimal impact. Under Executive Order 12866 and 13563, the Office of Information and Regulatory Affairs determined it is not significant, as it imposes no new burdens and promotes regulatory efficiency. The rule complies with Executive Order 12988 by using clear language to minimize ambiguity and litigation risks. It has no federalism implications under Executive Order 13132, as it does not alter state-federal relationships or funding distributions. Tribal consultations under Executive Order 13175 were deemed unnecessary, given the lack of substantial direct effects on federally recognized tribes. Environmentally, the rule qualifies for a categorical exclusion under the National Environmental Policy Act (43 CFR 46.210(i)), as it is purely administrative. No new information collections are involved, per the Paperwork Reduction Act, and it is not a major rule under the Congressional Review Act or Unfunded Mandates Reform Act. These assessments reflect a low-profile regulatory action focused on precision rather than controversy.
Perspectives and Implications
Stakeholders, including states and tribes receiving SMCRA funds, may view this rescission as a positive step toward regulatory clarity, reducing confusion in interpreting 30 CFR 872.13. Environmental groups and mining oversight advocates could appreciate the emphasis on completed obligations, allowing focus on active reclamation efforts. Conversely, some might argue for broader SMCRA reforms, though the entry explicitly limits the rule to this narrow fix. Short-term implications include smoother administration of funds without references to defunct categories, potentially aiding compliance for grantees. Long-term, it sets a precedent for periodic regulatory cleanups, encouraging efficiency in federal oversight of mining reclamation. Different perspectives exist on direct final rules generally—supporters praise their expediency for minor changes, while critics note limited public input opportunities unless comments arise.
In summary, this rule represents a targeted effort to update federal regulations by removing obsolete language on prior balance replacement funds, ensuring SMCRA's funding provisions remain current. Potential next steps include monitoring for comments by the December 24, 2025, deadline, after which OSMRE may confirm the effective date or respond accordingly. Ongoing debates in surface mining policy could involve funding adequacy for reclamation amid climate challenges, though this action does not directly engage them. Challenges may arise if future appropriations revive similar mechanisms, but for now, the rescission maintains a streamlined regulatory landscape for states, tribes, and federal administrators.
