Committee backs bill directing Blue Creek mine federal royalties to general fund, port, mining commission and a new grant program

The House Judiciary Committee gave House Bill 285 a favorable report after sponsor remarks and two adopted amendments that shape how federal coal-lease royalties from the new federal Blue Creek mine would be distributed and administered.

"This mine is WarriorMet Coal's new Blue Creek mine, and it's gonna have 300, 350, coal miners up there," the sponsor said, describing expected employment and the mine's regional workforce draw from Jefferson, Walker, Tuscaloosa and Fayette counties. The bill directs royalties from the federal lease so that the first $1,000,000 each year goes to the state general fund, the next $500,000 to the port (McDuffie Coal Terminal), the next $250,000 to the Alabama Surface Mining Commission, and any overflow into a new grant fund for economic and workforce development in the identified "impacted communities." The bill establishes a nine-member board with gubernatorial and legislative appointments and requires members to live in the four counties.

Representative Witt asked where the bill specifically ties to the Blue Creek mine and whether the distribution would affect other state mines; the sponsor said the statute relates specifically to that mine. Committee discussion noted historical receipts from the federal payment had been about $1.6 million in the highest year. To allow monitoring, one adopted amendment sets a distribution window beginning 01/01/2027 and ending 12/31/2030 and includes language to reimburse the secretary of workforce for administrative costs associated with running the grant program.

The committee adopted the amendments by voice vote and returned HB 285 with a favorable report. Members said the measure is intended to create ongoing workforce and economic development support for communities that will eventually experience mine closure and job loss.