This legislation, titled the Bond Improvement and Reclamation Assurance Act of 2026, significantly amends the Surface Mining Control and Reclamation Act of 1977 to enhance the adequacy of permit performance bonds for surface coal mining operations. It revises how bond amounts are determined, requiring regulatory authorities to consider factors such as the impact of inflation over the reclamation period, the costs associated with an unplanned or early mine closure, and any additional expenses incurred by the regulatory authority if it must undertake reclamation due to bond forfeiture. A new rebuttable presumption sets the mine closure at five years after permit issuance for bond calculation, and a minimum bond amount of $52,593, adjusted for inflation, is established.

The bill further mandates that bond amounts be adjusted periodically, particularly when affected land acreages change, reclamation costs shift due to factors like long-term water pollution discharge or coal market conditions, or upon permit renewal or transfer. Crucially, before approving a permit transfer or revision, the regulatory authority must recalculate the bond amount. This ensures that the financial assurance remains sufficient throughout the mine's lifecycle and ownership changes.

Additionally, the legislation introduces joint and several liability for permittees and "covered persons," defined as individuals or entities owning or controlling 30 percent or more of the permittee's capital interests, for all reclamation costs, including postmining water pollution treatment. Inspectors are also required to report any conditions that could increase reclamation costs or necessitate a bond adjustment. Finally, the Secretary of the Interior is directed to issue regulations within 90 days to establish guidelines and benchmarks for minimum bond amounts, utilizing data from recent reclamation projects resulting from bond forfeitures.