FY20_AML_PilotProjectEligibilityGuidance Rev2021

GUIDANCE FOR PROJECT ELIGIBILITY UNDER THE ABANDONED MINE LAND RECLAMATION
ECONOMIC DEVELOPMENT PILOT PROGRAM FOR FISCAL YEAR 2020
I.

OVERVIEW
Pursuant to the Consolidated Appropriations Act, 2020 (Public Law 116-94), the Department of the
Interior’s (DOI) Office of Surface Mining Reclamation and Enforcement (OSMRE) has made funding
available for projects in the Abandoned Mine Land Reclamation Economic Development Pilot Program
(AML Pilot) for Fiscal Year (FY) 2020. This Pilot Program will provide grants to the six Appalachian
States with the highest amount of unfunded Priority 1 and Priority 2 Abandoned Mine Land (AML)
problems based on OSMRE’s AML inventory data as of September 30, 2019. Accordingly, the
following States will each receive $25 million - Kentucky, Pennsylvania, and West Virginia; while
Alabama, Ohio, and Virginia will each receive $10 million in order to accelerate the remediation of AML
sites with economic and community development end uses. In addition, the three Tribes with an
approved AML reclamation program will each receive an equal portion of $10 million (Hopi Tribe - $3.33
million, Crow Tribe - $3.33 million, and Navajo Nation - $3.33 million). The Pilot Program is intended to
explore and implement strategies to return legacy coal sites to productive uses.
State/Tribal AML Programs, in consultation with State, Tribal, and local economic/community
development authorities, must develop eligible projects that demonstrate a nexus with AML land and
water reclamation, and economic and community development. This AML Pilot is an opportunity for
local communities and States/Tribes to return impacted areas to productive reuse, which should be
defined by the States/Tribes in cooperation with local communities, to achieve the economic and
community development goals identified for the community and/or region.
The purpose of this guidance document is to provide State/Tribal AML Programs with general criteria
by which potential projects will be evaluated for eligibility and successful selection. This guidance is
intended to ensure that projects meet the economic and community development nexus criteria, as the
current AML program does not require such criteria. As such, the AML Pilot Program offers a nontraditional approach to the reclamation of impacted mine lands. A uniform approach is not expected in
every State/Tribe; however, this guidance is intended to assist States/Tribes in their selection of
projects.
State/Tribal AML Programs are encouraged to collaborate with their respective State/Tribal and local
economic development authorities and local communities to identify potential projects and apply funds
from the AML Pilot to projects that will offer the greatest benefits for communities. The AML Pilot offers
States, Tribes, and local communities flexibility in deciding which projects offer the greatest
opportunities within their communities.

II. ELIGIBLE PROJECTS
Sites eligible under the AML Pilot:
•

Unreclaimed Priority 1, Priority 2, or Priority 3 sites (i.e., AML lands and polluted waters) listed in eAMLIS.

•

Previously reclaimed AML lands and polluted waters.

•

Land adjacent to unreclaimed or previously reclaimed AML lands and polluted waters as justified by
the State, Tribe, and/or the communities impacted by historic coal production.

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Please note: Currently permitted Title V mine sites are not eligible to receive AML Pilot funds.
Formerly permitted mine sites reclaimed after August 3, 1977 that are adjacent to, or connected with,
an eligible AML Pilot project may be included in AML Pilot funding.
III. ECONOMIC AND COMMUNITY DEVELOPMENT NEXUS
The economic and community development nexus can be demonstrated by States/Tribes in different
ways depending on whether the proposed project is intended to: (1) incorporate economic and
community development related activities as part of the project itself (Category A projects), or (2)
involve primary reclamation activities only in order to create the conditions for future economic and
community development that occurs post-reclamation (Category B projects).
When selecting projects, States/Tribes are encouraged to consider the following:
“Category A” Projects (Reclamation with Development):
This is a project intended to include economic and community development related activities as part
of the project itself, as well as reclamation activities, likely to result in positive economic and
community development outcomes that can be measured.
In order to provide accountability, State/Tribal AML Programs will need to demonstrate that
favorable conditions are created by the reclamation of the site. However, the Consolidated
Appropriations Act did not specify criteria or metrics by which projects are evaluated since projectrelated outcomes will vary based on the project type. State/Tribal AML Programs should, to the
extent possible, differentiate between post-project measures of future economic development in the
medium to long term, and more short-term measures associated with economic development
activities (e.g., infrastructure construction) that are included in the project itself. OSMRE recognizes
that the metrics for productive reuse will vary based on the type of project selected. However, State
and Tribal AML Programs will be required to report economic benefits and performance measures
associated with awarded projects (see Section X). The following provides examples of measures a
State/Tribe may wish to report:
o
o
o
o
o
o
o
o

Jobs created (beyond those jobs necessary to conduct reclamation);
Businesses created, or served, or improved;
Infrastructure created (impact could be measured by the linear feet, acreage, square feet, or
other unit of measure for the expected amount of water, sewer, utility, or other form of
infrastructure installed, constructed or repaired);
Increased, enhanced, or restored infrastructure system capacity;
Communities served or improved;
Households served or improved;
New or existing workers or students served or improved; and
Number of visitors (overnight and daytime).

“Category B” Projects (Reclamation for Potential Development):
This is a project reasonably likely to create favorable conditions for the economic development of
the project site or promote the general welfare through economic and community development of
the area in which the project is conducted.
Such “favorable conditions” may be demonstrated by any one of the following:

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o
o

Documentation of the role of the project in the area’s economic development strategy or
other economic and community development planning process.
Documentation of the planned economic and community use of the project site after the
primary reclamation activities are completed. Examples include contracts, agreements in
principle, or other evidence that, once reclaimed, the site is reasonably anticipated to be
used for one or more industrial, commercial, residential, agricultural or recreational
purposes.

It is recommended that the documentation and outcomes noted above are submitted during the vetting
process (described more fully below). The documentation and outcomes noted above will be required
when seeking an Authorization to Proceed (ATP).
Project description examples are provided below:
Example of Acceptable Category A Project: The Big Sky Outdoor Recreation Trail project will consist of
two sections of trail infrastructure development: 1) reclamation and construction on abandoned mine
lands to create 10 miles of trails within the Big Sky Outdoor Recreation Trail Network, using AML Pilot
funding; and 2) construction of trail facilities and five miles of feeder trails on adjacent properties that
will connect to the Big Sky Outdoor Recreation Trail Network, leveraging private funding. This project is
consistent with a Comprehensive Economic Development Strategy (CEDS) developed by the region
and focuses on tourism and recreation as an economic growth opportunity. By investing in the
infrastructure for both local and visiting outdoor enthusiasts, the region will attract visitors and develop
local businesses around the emerging cluster of outdoor recreation outfitters and manufacturers,
restaurants, hospitality businesses, and other related businesses.
Example of Acceptable, Category B Project: This project will reclaim 10 acres of abandoned mine land,
a site that will later be used to build a community center with Internet access, job placement and
vocational training facilities. The need for the community center was identified in a documented
community planning process and approved by local government officials.
Examples of Unacceptable Projects: 1) The project is not located on or adjacent to an unreclaimed or
previously reclaimed AML site. 2) The project does not sufficiently demonstrate a nexus to economic
and community development. 3)The performance measure for economic and community development
is being categorized as future industrial development but it is not associated with a local economic or
community development planning process and/or does not have the support of local government
officials.
IV. USE OF FUNDS AND LEVERAGING OTHER FUNDING SOURCES
AML Pilot grant recipients must comply with all applicable Federal grant award requirements, including
but not limited to the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (2 CFR Part 200). States, Tribes, and local communities have the flexibility to use
AML Pilot funds for both the reclamation of impacted lands and waters and brick and mortar needs
related to the end-use development project. The Pilot Program offers maximum flexibility in this regard,
letting States, Tribes, and local communities balance the needs of an individual project with the ability
to fund other priority Pilot projects.
Where resources may help expand a project’s scope or outcome, States, Tribes, and local communities
are encouraged to identify and leverage other public and private funding sources to be used in
conjunction with funding provided through the AML Pilot. In particular, States and Tribes are
encouraged to review opportunities for leveraging funds and other resources made available by other
Federal offices. This includes the Appalachian Regional Commission (ARC) and the Economic
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Development Administration (EDA)1. A non-exhaustive list of examples of funding combinations
includes:
•

AML Pilot $ + Private $
Additional funds could demonstrate economic and community development with a nexus to an AML
site.

•

AML Pilot $ + AML $
Monies will need to be tracked separately. OSMRE’s existing account structure can accommodate
this tracking.

•

AML Pilot $ + ARC $
Combining, coordinating, or matching AML Pilot funds with ARC funds could demonstrate economic
and community development with a nexus to an AML site. AML Pilot funds or other AML funds can
be used as matching funds for projects funded by ARC.

•

AML Pilot $ + EDA $
Combining, coordinating, or matching AML Pilot funds with EDA funds could demonstrate economic
and community development with a nexus to an AML site to leverage other funding sources such as
funds awarded by EDA.

•

AML Pilot $ + USDA $
Opportunities for combining, coordinating, or matching AML Pilot funds with USDA rural
development funds in certain areas may also be available.

V. DEVELOPING AML PILOT PROJECTS
Each State/Tribal AML Program is responsible for developing eligible AML Pilot projects. AML Pilot
project proposals should include a description of how, when, where, and for what reclamation,
economic or community development purposes AML Pilot funds will be used. States/Tribes should
provide summary level information about the project’s purpose, cost, partnerships and/or leveraged
funds (if applicable), and the expected economic benefits that lead to the project’s selection. The
State/Tribe should also include information on the intended sub-recipient of funds. Eligible grant subrecipients are typically limited to State, Tribal, and local governments, economic development
organizations, local communities, and non-government organizations. These sub-recipients, who are
also considered sub-grantees may sub-contract project-related activities as appropriate, only after an
Authorization to Proceed (ATP) has been issued for the specific project.
Once State/Tribal AML Programs, working with their local economic development authorities and local
communities, conceptually develop their AML Pilot project proposals, these proposals must then be
submitted to the servicing OSMRE Field Office. OSMRE will work with the State and Tribal AML
Programs to conduct a review of these proposed projects on a rolling basis. OSMRE’s review and
approval process occurs in two phases.
First, OSMRE will vet project proposals to identify at the early stage any concerns about the project or
its eligibility. OSMRE will advise the State/Tribe of any concerns with the project or will provide
confirmation that the project does not raise any concerns at this early stage. Once the proposed
project has been vetted, and if it receives OSMRE’s preliminary approval, the State/Tribe should then

1

Information about federal funding opportunities and additional funding and other resources (e.g., technical assistance) can be
found at: www.eda.gov/coal/ and www.arc.gov.
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proceed to develop the detailed project design, technical analysis, legal and regulatory requirements
necessary, so that the project can advance to the next phase.
The second and final phase involves the environmental review, e-AMLIS update, and OSMRE’s
issuance of an ATP. Please note that each AML Pilot project with preliminary approval requires the
issuance of an ATP.
VI. PUBLIC ENGAGEMENT
When developing eligible projects for the AML Pilot, State/Tribal AML Programs should ensure public
engagement at the local level through communication with State, Tribal, and local economic
development programs. These organizations are well-suited for understanding and achieving
economic and community development end uses and goals.
States/Tribes are encouraged to utilize best practices for public engagement that are already in place
or develop a process for public outreach and communication with local citizens and public organizations
that best meets their unique circumstances. Some examples of public engagement include, but are not
limited to, notification of local citizens of the intent/purpose of a project via meetings, print media, and
social media; and partnering with organizations that inherently facilitate public outreach and
communication. Documentation of public outreach must be submitted when seeking an ATP.
VII. PROJECT BENEFITS, EXPECTED OUTCOMES OR PERFORMANCE MEASURES
States and Tribes are urged to demonstrate the success of their Pilot Program by tracking and
reporting on as many economic measures as practical for each selected AML Pilot project.
States/Tribes can identify, track and define the success of projects in many ways. However, State and
Tribal AML Programs will be required to report economic benefits and performance measures
associated with awarded projects (see Section X). Examples of significant measures of success are
provided below:
o
o
o
o
o
o
o
o
o
o
o
o
o
o

Jobs created (beyond those jobs necessary to conduct reclamation);
Businesses created, served, or improved;
Infrastructure created (impact could be measured by the linear feet, acreage, square feet, or
other unit of measure for the expected amount of water, sewer, utility, or other form of
infrastructure installed, constructed or repaired);
Revenues increased (export or domestic sales);
Patients served or improved;
Participants served or improved;
Organizations served or improved;
Increased, enhanced, or restored infrastructure system capacity (includes energy capacity,
broadband accessibility);
Communities served or improved;
Households served or improved;
Housing units constructed or rehabilitated;
New or existing workers or students served or improved;
Number of visitors (overnight and daytime); and
Quantifiable recreational opportunities created.

VIII. COMPLIANCE WITH THE NATIONAL ENVIRONMENTAL POLICY ACT
OSMRE has determined that the provisions of the National Environmental Policy Act (NEPA) apply to
all AML Pilot projects funded under Public Law 116-94. NEPA regulations issued by the White House
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Council on Environmental Quality (CEQ) are found at Title 40, Parts 1500-1508 of the Code of Federal
Regulations (40 CFR Parts 1500-1508, 42 U.S.C. 4371 et seq.).
In accordance with NEPA regulations, analysis of the “Federal action” is applicable to the approval of
AML Pilot projects, as they are “Federally assisted activities” due to the allocation of Federal funds
which must be “approved” by “other regulatory decisions.” See OSMRE REG-1, Handbook on
Procedures for Implementing the National Environmental Policy Act (NEPA Handbook) (Revised 2019).
Public Law 116-94 provides OSMRE with the authority to allocate funding to Alabama, Kentucky, Ohio,
Pennsylvania, Virginia, West Virginia, the Crow Tribe, the Hopi Tribe, and the Navajo Nation for eligible
projects that involve abandoned mine land reclamation and related economic and community
development activities.
Based on the significance of the actual and potential impacts of the proposed action, there are three
types of NEPA analysis:
1) Categorical Exclusion (CE);
2) Environmental Assessment (EA), which may result in a Finding of No Significant Impact (FONSI);
3) Environmental Impact Statement (EIS).
The Department’s NEPA regulations make clear, in the absence of an applicable CE, that an EA, and in
some cases, an EIS must be prepared for the proposed Federal action. Title 43 of the Code of Federal
Regulations (CFR) Part 46.205(A) states:
If a proposed action does not meet the criteria for any of the listed Departmental categorical exclusions or any of the
individual bureau categorical exclusions, then the proposed action must be analyzed in an environmental assessment or
environmental impact statement.

Based on OSMRE’s experience, it is anticipated an EA will be required for most AML Pilot projects.
Definitions of the three types of NEPA analysis are outlined below.
Categorical Exclusion
A CE is the first threshold of NEPA analysis for a proposed Federal action. The NEPA regulations
allow for projects that meet certain criteria and are sufficiently minor in scope and effect to be
categorically excluded so that neither an EA nor an EIS is required. For these types of projects,
OSMRE has created and received approval from CEQ for a CE. This CE is contained in the DOI
Departmental Manual (DM), Chapter 13 [516 DM 13.5 (33)] and applies to AML reclamation projects
that meet specific criteria.
Environmental Assessment
If a determination is made that a CE does not apply to a proposed Federal action, then an EA is
prepared. The EA determines whether a Federal action has the potential to cause significant
environmental effects. If no significant environmental effect is found, the decision document will result
in a FONSI and the project may continue. However, if a significant effect is found, then the project
must go through the more rigorous EIS process.
Environmental Impact Statement
An EIS is prepared if the proposed major Federal action is determined to significantly affect the quality
of the human environment. The determination whether to perform an EIS must be made with respect to
any “Federal action” deemed major or significant (see 40 CFR 1508.18). The regulatory requirements
for an EIS are more detailed and rigorous than the requirements for an EA.
Project participants are strongly encouraged to utilize this guidance and look closely at the parameters
of the three types of NEPA analyses outlined above and refer to the NEPA Handbook to align their
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proposed projects accordingly in order to best understand their likely level of NEPA threshold prior to
OSMRE’s review.
IX.

PURCHASE OF REAL PROPERTY
The following guidance on real property applies to all AML Pilot projects including the current fiscal year
(FY 2020) and all previous years of the AML Pilot Program (FY 2016 – FY 2019). The requirements for
the acquisition, use, management, and disposal of real property acquired under a AML Pilot grant are
established under the Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards (2 CFR Part 200), the Financial Assistance Interior Regulation (FAIR) Act (2 CFR
Part 1402), and the Uniform Relocation Assistance and Real Property Acquisitions Policies Act of 1970
(P.L. 91-646) (49 CFR Part 24). Other applicable provisions are also found in sections 407 and 409 of
SMCRA (30 U.S.C. 1237, 30 U.S.C. 1239), and OSMRE regulations referenced in 30 CFR Part 879.
Real property means land or an interest in land, such as an easement. Real property may include land
improvements, structures and appurtenances thereto, but excludes moveable machinery and
equipment. OSMRE recognizes that on rare occasions it may be necessary to acquire land using AML
Pilot funds to facilitate the accelerated economic development of a Pilot project. State/Tribal AML
programs should clearly demonstrate in the proposal that acquisition of the property is necessary to
achieve the goals of the AML Pilot project.
Whenever a State/Tribal Program is seeking approval to use AML Pilot funds to purchase an interest in
real property, the SF-429-B, Request to Acquire, Improve, or Furnish, must be submitted to OSMRE.
All aspects of the purchase must be in compliance with applicable laws and regulations relating to real
estate purchases.
When such purchases occur, while OSMRE does not typically become the owner of the land, OSMRE
does retain an interest. At a minimum, that interest is to ensure that State/Tribal AML Program
maintains the land in accordance with the purpose and conditions set out in the financial assistance
award. When the land is no longer needed or utilized for that purpose, in accordance with 2 CFR Part
200, the State/Tribal AML Program must dispose of or revert title to the land in accordance with award
documents, deed, or other legal instrument.
Designation as Recipient/Sub-recipient
The State/Tribal AML Program that receives an AML Pilot grant which funds the purchase of real
property will always be designated the recipient. Any other State/Tribal Agency, local government,
institution of higher education, or non-profit organization that holds title to real property purchased using
AML Pilot funds will be designated a sub-recipient. It is incumbent upon the State/Tribal AML Program,
as the recipient, to provide the sub-recipient with all relevant terms and conditions of the AML Pilot
grant.
Fair Market Value & Appraisals
The Federal contribution from the AML Pilot funds to the purchase price of the property must not
exceed the appraised fair market value. Real property that will be purchased with funds from financial
assistance actions must be appraised in accordance with the Uniform Appraisal Standards for Federal
Land Acquisitions (UASFLA or the “Yellow Book”) by an independent real property appraiser licensed
or certified by the state in which the property is located. A property appraisal by a state-certified
appraiser shall be prepared for the acquisition of the subject property. The appraiser should be
certified for all general property appraisals (49 CFR Part 24.103).

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Deed of Transfer
The deed of transfer must specify that the property will be used for the purposes of the Pilot project. If
the non-Federal entity dissolves or is unable to continue managing the property as intended, the
property must be transferred (with the original deed restrictions) to another non-Federal entity with the
same goals. The new non-Federal entity must continue to operate and maintain the property as
appropriate. The deed of transfer must also specify that if the property is no longer needed for the
purposes stated in the deed, the owner will notify and consult with State/Tribal AML Program and
DOI/OSMRE for appropriate disposition instructions.
Tracking Data on Real Property
OSMRE requires that the State/Tribal AML Program submit a report annually on the status of real
property acquired using AML Pilot funds for the period of time in which the Federal government retains
an interest. If the interest in the land will be held for less than 15 years, reports must be submitted
annually. If the interest in the land will be held for 15 years or more, then the recipient must submit
reports annually for the first three years and then every five years thereafter (2 CFR Part 200.329).
X.

REPORTING REQUIREMENTS
The following guidance on reporting requirements applies to all AML Pilot projects including the current
fiscal year (FY 2020) and all previous years of the AML Pilot Program (FY 2016 – FY 2019). This
program is deemed by Congress as a “pilot” and involves the significant expenditure of Federal funds.
As such, OSMRE is obligated to report to Congress and the public on the use of AML Pilot funds, as
well as the benefits derived from their use. To this end, OSMRE will compile an Annual AML Pilot
Program Report that will evaluate the economic impact of the Program and the status of AML Pilot
projects within each State and Tribe. To assist OSMRE in preparing this report, each State and Tribal
AML Program must provide information on their AML Pilot projects to OSMRE no later than September
30 of each year. In addition to the annual grant and performance reporting, State and Tribal AML
programs are required to submit the following information:
•
•
•

A list of AML Pilot projects that received AML Pilot grants for each funding year.
A summary of the process used by each State/Tribe to solicit, develop and select projects.
Current status of each AML Pilot project, including:
o AML Pilot funding amount requested vs. actual amount received;
o All other funding source(s) leveraged (e.g., in-kind services, private contribution, AML grants,
etc.);
o Total amount expended on the project to date and the amount expected to be spent;
o Project partners;
o Economic benefits/performance measures accomplished to date;
o Expected benefits/outstanding performance measures to be accomplished and timelines for
completion.
o The status of any real property purchased for purposes of the AML Pilot approved activity.
***

Paperwork Reduction Act Statement

This information is being collected to comply with the regulatory requirements of 30 CFR §§ 872.14 through 872.18, and as outlined in Section 401(c)
of the Surface Mining Control and Reclamation Act of 1977 (SMCRA). This authorizes OSMRE to collect information pursuant to the Consolidated
Appropriations Act, 2020 (Public Law 116-94) relating to the Abandoned Mine Land Reclamation Economic Development Pilot Program (AML Pilot).
Burden Estimates
In order to apply, respondents apply though their respective state reclamation agency. Public burden for state reclamation agencies are from 100 to
200 hours per project to conduct project eligibility reviews, and from 70 to 100 hours per project for project applicants and project partners to
collect data and submit project applications. The state reclamation agencies work with the project partners to complete the documentation and
submit projects for final approval with OSMRE. Direct comments regarding the burden estimate or any other aspect of this form to the Information
Collection Clearance Officer, Office of Surface Mining Reclamation and Enforcement, Room 4556 MIB, 1849 C Street., NW, Washington, D.C., 20240.
You are not required to respond to this collection of information unless it displays a current, valid OMB control number.
Approved by OMB, No. 1029-0054
Guidance for Project Eligibility Under the FY2020 AML Pilot
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