Congressional Research Service: 'Black Lung Program, Black Lung Disability Trust Fund & Excise Tax on Coal' (Part 1 of 2)
The report was written by disability policy analyst
Here are excerpts:
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SUMMARY
The federal government pays benefits to coal miners affected by coal workers' pneumoconiosis (CWP, commonly referred to as black lung disease) and other lung diseases linked to coal mining in cases where responsible mine operators are not able to pay. In 2023, the monthly benefit for a miner with no dependents is
The primary source of revenue for the trust fund is an excise tax on coal produced and sold domestically (the black lung excise tax, BLET). If BLET revenue is not sufficient to finance Black Lung Program benefits, the trust fund may borrow from the general fund of the
The BLET rates on coal are
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Contents
Federal Black Lung Program ... 1
Black Lung Disease ... 1
Federal Black Lung Program ... 2
Part B ... 3
Part C ... 3
Operator Responsibility ... 3
Federal Payment of Benefits and Expenses ... 4
Eligibility for Black Lung Benefits ... 4
Clinical and Legal Pneumoconiosis ... 5
Eligibility Presumptions ... 6
Black Lung Program Benefits ... 8
Medical Benefits ... 8
Disability Benefits ... 8
Survivors' Benefits ... 10
Black Lung Disability Trust Fund Revenues ... 11
Excise Tax on Coal ... 11
Legislative History ... 14
Borrowing and Debt ... 15
Other Revenue Sources ... 17
Fines, Penalties, and Interest ... 17
Collection from Responsible Mine Operators ... 17
Financial Condition and Outlook ... 18
Figures
Figure 1. Black
Figure 2. Black
Figure 3. Coal Excise Tax Collections ... 13
Figure 4. Black Lung Disability Trust Fund Debt ... 16
Tables
Table 1. Eligibility Presumptions Provided in the BLBA, as Amended by Section 1556 of the Affordable Care Act (ACA) ... 8
Table 2. Monthly Black Lung Benefit Amounts for CY2023 ... 9
Contacts
Author Information ... 18
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The federal government pays benefits to coal miners affected by coal workers' pneumoconiosis (CWP, commonly referred to as black lung disease) and other lung diseases linked to coal mining in cases where the responsible mine operators are not able to pay. Benefit payments and related administrative expenses are paid out of the
The excise tax rates on coal are
Throughout its history, the
Federal Black Lung Program
Black Lung Disease
Coal workers' pneumoconiosis (CWP, commonly referred to as black lung disease) is an interstitial lung disease caused by the inhalation of coal dust./2
Like in other types of pneumoconioses, the inhalation of coal dust results in the scarring of the lung tissue and affects the gas-exchanging ability of the lungs to remove carbon dioxide and take oxygen into the bloodstream./3
Exposure to coal dust over an extended period of time can lead to CWP and continued exposure can lead to the progression from the early stages of CWP referred to as "simple CWP," to more advanced stages of scarring referred to as "complicated CWP" or progressive massive fibrosis (PMF). There is no cure for CWP and PMF. CWP can lead to loss of lung function, the need for lung transplantation, and premature death. CWP can be identified by observing light spots, or opacities, in x-ray images of the lungs and can be classified using guidelines established by the
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1 For general information on the
2 For additional information on CWP, see the website of the
3 Other types of pneumoconioses include silicosis caused by the inhalation of silica dust, and asbestosis caused by the inhalation of asbestos fibers. For additional information on pneumoconioses, see the website of NIOSH at https://www.cdc.gov/niosh/topics/pneumoconioses/.
4 For additional information on the ILO classification system, see the website of NIOSH at https://www.cdc.gov/niosh/topics/chestradiography/ilo.html.
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Despite technological advances in mining dust control, mandatory chest x-rays for miners,/5 free CWP surveillance offered to miners by the
In 2017 researchers discovered, among coal miners mostly living in
This cluster of miners with PMF includes a relatively high number of miners with less than 20 years of mining experience as well as cases of PMF in current miners. The occurrence of this advanced stage of CWP in short-tenured and current miners is noteworthy since MSHA standards require that any miner with evidence of CWP be given the option, without loss of compensation or other penalty, to work in an area of the mining operation in which the average concentration of coal dust in the air is continuously maintained at or below an established level that is lower than the permissible exposure level for all miners with the goal of preventing the progression of CWP./12
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5 Title 30, Section 843(a), of the
6 For additional information on the NIOSH Coal Workers' Health Surveillance Program, see the NIOSH website at https://www.cdc.gov/niosh/topics/cwhsp/default.html.
7 The major pieces of enacted coal mine safety and health legislation are the Federal Coal Mine Safety and Health Act of 1969 (P.L. 91-173), the Federal Mine Safety and Health Amendments Act of 1977 (P.L. 95-164), and the Mine Improvement and New Emergency Response Act of 2006 (MINER Act, P.L. 109-236).
8 The MSHA standards for underground coal mine safety and health are published in Chapter 1, Subchapter O, of Part 30 of the C.F.R. In 2015, MSHA revised its standards on exposure to respirable coal dust to lower exposure limits for coal miners (
9
10
11
12 30 C.F.R. Sec.90.3. The concentration limits of respirable coal dust are 1.5 milligrams per cubic meter (mg/m3 ) of air for all miners and 0.5 mg/m3 for miners with evidence of CWP.
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Federal Black Lung Program
The federal Black Lung Program was created in 1969 with the enactment of Title IV of the
The Coal Act also established mandatory safety and health standards for coal mines, including standards limiting exposure of miners to coal dust and giving miners with CWP the option of being moved, without loss of compensation or penalty, to an area of the mine with lower dust concentrations. The Coal Act was later amended by the Black Lung Benefits Act of 1972 (BLBA, P.L. 92-303).
Part B
The Coal Act established Part B of the federal Black Lung Program to provide cash benefits to miners totally disabled due to CWP and to the survivors of miners who die from CWP./13
Part B only applies to cases filed on or before
Part C
The Coal Act established Part C of the Federal Black Lung Program for cases filed after
If a state's workers' compensation system is not determined by DOL to meet these standards, then Part C benefits are to be paid by the each miner's coal employer, or, if no such employer is available to pay benefits, by the federal government.
In 1973,
To date, no state workers' compensation system has been approved by DOL under Part C of the BLBA.
Operator Responsibility
Because no state's workers' compensation system has been determined to be sufficient to pay benefits under Part C, each operator of an underground coal mine is responsible for the payment of benefits to that operator's miners. Operators are required to provide for these benefits either by purchasing insurance for benefits or through self-insurance approved by DOL.
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13 Although Part B did not originally include medical benefits, these benefits are now available to Part B claimants under Part C and are paid by the responsible mine operators or the
14 For additional information on the LHWCA, see CRS Report R41506,
15
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A self-insured operator is required to purchase an indemnity bond or provide another form of security (such as a deposit of negotiable securities in a
When a claim for benefits is approved, benefits are to be paid by the "responsible" operator, which is generally the last coal operator to employ the miner./17
If a company has acquired the assets of a mine operator, then that company is considered a "successor operator" and is responsible for the payment of claims related to the original operator./18
Federal Payment of Benefits and Expenses
The federal government pays benefits in cases in which the responsible operator no longer exists and has no successor operator, or is unable to pay benefits. The federal government pays benefits when an operator has not made payment within 30 days of a determination of eligibility or when benefits are otherwise due to be paid. Initially, under Part C of the Coal Act, these federal benefits were paid out of general revenue. However, pursuant to the Black Lung Benefits Revenue Act of 1977 (P.L. 95-227), these benefits are now paid from the
The trust fund is also used for the following federal Black Lung Program-related expenses:
* the payment of benefits for miners whose last coal mine employment was before
* reimbursement to the
* the repayment and payment of interest on advances made from the general fund to the trust fund;
* the payment of administrative expenses related to Part C of the BLBA and the coal excise tax incurred after
* the reimbursement of coal operators who paid Part C benefits before
Eligibility for Black Lung Benefits
A miner is eligible for benefits if that miner is totally disabled due to pneumoconiosis arising out of coal mine employment. The survivors of a miner are eligible for benefits if the miner's death was due to pneumoconiosis arising out of coal mine employment.
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16 20 C.F.R. Sec.726.101.
17 20 C.F.R. Sec.725.495.
18 20 C.F.R. Sec.725.492.
19 26 U.S.C. Sec.9501(d).
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Benefits are only available to miners and their survivors. The BLBA defines a miner as
'any individual who works or has worked in or around a coal mine or coal preparation facility in the extraction or preparation of coal. Such term also includes an individual who works or has worked in coal mine construction or transportation in or around a coal mine, to the extent such individual was exposed to coal dust as a result of such employment.'/20
Thus, other workers who may be exposed to coal dust in their work, such as railroad workers or workers at coal-fired power plants are not eligible for benefits. Persons who live near coal mines or power plants are also not eligible for benefits even if they are exposed to coal dust. In addition, while a miner's family members may receive benefits as survivors and the number of family members can increase the amount of a miner's monthly benefits, family members may not claim benefits on their own due to exposure to coal dust in the home such as from cleaning the miner's soiled clothing.
The BLBA defines pneumoconiosis for the purposes of benefit eligibility as "a chronic dust disease of the lung and its sequelae, including respiratory and pulmonary impairments, arising out of coal mine employment."/21 The BLBA directs the Secretary of Labor to develop, through regulations, standards for determining if a miner is totally disabled due to pneumoconiosis or died due to pneumoconiosis./22
Clinical and Legal Pneumoconiosis
The federal Black Lung Program regulations provide that the definition of pneumoconiosis includes medical or "clinical" pneumoconiosis and statutory or "legal" pneumoconiosis. Clinical pneumoconiosis is defined as follows:
'"Clinical pneumoconiosis" consists of those diseases recognized by the medical community as pneumoconioses, i.e., the conditions characterized by permanent deposition of substantial amounts of particulate matter in the lungs and the fibrotic reaction of the lung tissue to that deposition caused by dust exposure in coal mine employment. This definition includes, but is not limited to, coal workers' pneumoconiosis, anthracosilicosis, anthracosis, anthrosilicosis, massive pulmonary fibrosis, silicosis or silicotuberculosis, arising out of coal mine employment.'/23
Legal pneumoconiosis is defined as
'any chronic lung disease or impairment and its sequelae arising out of coal mine employment. This definition includes, but is not limited to, any chronic restrictive or obstructive pulmonary disease arising out of coal mine employment.'/24
Through these definitions, DOL has established that benefits are available not just to miners with CWP, but also to those miners with other respiratory diseases arising out of coal mine employment such as chronic obstructive pulmonary disease (COPD) even though these diseases are not pneumoconioses and may be linked to other factors unrelated to exposure to coal dust such as cigarette smoking./25
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20 30 U.S.C. Sec.902(d).
21 30 U.S.C. Sec.902(b).
22 30 U.S.C. Sec.921(b). These regulations are at 20 C.F.R. Sec.Sec.718.201-718.206.
23 20 C.F.R. Sec.718.201(a)(1).
24 20 C.F.R. Sec.718.201(a)(2).
25 For example, deaths due to COPD are strongly linked to cigarette smoking. The
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Eligibility Presumptions
The BLBA contains five presumptions used to determine if a miner is eligible for black lung benefits./26 Three of these presumptions are "rebuttable," meaning that, in the absence of contrary evidence, eligibility is presumed. One presumption is "irrebutable" and eligibility for Black Lung program benefits is established if the statutory requirements of the presumption are met. Three of these presumptions apply to current Black Lung Program claims while two apply only to cases filed before the end of 1981. Table 1 provides a summary of the following five presumptions provided by the BLBA./27
1. A rebuttable presumption that the pneumoconiosis of a miner who was employed in mining for at least 10 years was caused by his or her employment.
2. A rebuttable presumption that the death of a miner who worked in mining for at least 10 years and who died of any respirable disease, was due to pneumoconiosis. This presumption does not apply to claims filed on or after
3. An irrebuttable presumption that a miner with any chronic lung disease which meets certain statutory tests or diagnoses is totally disabled due to pneumoconiosis or died due to pneumoconiosis.
4. A rebuttable presumption that a miner employed in mining for at least 15 years, and who has a chest x-ray that is interpreted as negative with respect to certain statutory standards but who has other evidence of a totally disabling respiratory or pulmonary impairment, is totally disabled due to pneumoconiosis or died due to pneumoconiosis. This presumption may only be rebutted by the Secretary of Labor establishing that the miner does not or did not have pneumoconiosis or that the miner's respiratory or pulmonary impairment did not arise out of connection to mine employment.
5. A presumption that a miner who died on or before
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26 30 U.S.C. Sec.921(c).
27 The presumption number corresponds to the paragraph number in Subsection (c) of Section 411 of the Black Lung Benefits Act (30 U.S.C. Sec.921(c)).
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Affordable Care Act Amendments
The Patient Protection and Affordable Care Act (commonly referred to as the Affordable Care Act (ACA), P.L. 111-148) included two provisions that amended the BLBA to reinstate one of the eligibility presumptions and a provision affecting survivors' benefits. The effect of these changes was to increase the opportunity to establish eligibility through the statutory presumptions and make it easier for certain survivors to receive benefits.
Pursuant to Section 202(a) of the Black Lung Benefits Amendments of 1981, the fourth presumption did not apply to cases filed on or after
The BLBA provides that, for Part C claims, the survivors of a miner who was determined to be eligible to receive benefits at the time of his or her death are not required to file new claims for benefits or revalidate any claim for benefits, thus permitting the payment of survivors' benefits in these cases even if the miner's death was not caused by pneumoconiosis./28 Pursuant to Section 203(a)(6) of the Black Lung Benefits Amendments of 1981, this provision did not apply to claims filed on or after
The amendments to the BLBA provided in Section 1556 of the ACA apply to any claims filed under Part B or C of the act after
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28 30 U.S.C. Sec.932(l).
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Table 1. Eligibility Presumptions Provided in the BLBA, as Amended by Section 1556 of the Affordable Care Act (ACA)
Source:
a. The presumption number corresponds to the paragraph number in Subsection (c) of Section 411 of the Black Lung Benefits Act (30 U.S.C. Sec.921(c)) and listed in this report.
b. Prior to the enactment of the ACA, this presumption did not apply to claims filed on or after
c. This presumption is not listed in the law as either rebuttable or irrebuttable, but based on the requirements of this presumption, it can be classified as rebuttable.
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Black Lung Program Benefits
Medical Benefits
Eligible miners receiving benefits under Parts B and C are entitled to medical coverage for their pneumoconiosis and related disability. This medical coverage is provided at no cost to the miner and can generally be obtained from the miner's choice of medical providers.
Disability Benefits
Eligible miners are also entitled to cash disability benefits. The basic benefit rate is set at 37.5% of the basic pay rate at GS-2, Step 1, on the federal pay schedule without any locality adjustment./29 If the miner has one dependent (a spouse or minor child), the miner is eligible for a benefit of 150% of the basic benefit. A miner with two dependents is eligible for 175% of the basic benefit and a miner with three or more dependents is eligible for 200% of the basic benefit.
Benefits may also be paid to the divorced spouse of a miner if the marriage lasted at least 10 years and the divorced spouse was dependent on the miner for at least half of the spouse's support at the time of the miner's disability. A child is considered a dependent until the child marries or reaches age 18, unless the child is either disabled using the
While the total amount paid in cash disability benefits has fallen over time, it has stabilized in recent years as illustrated in Figure 1. More is paid in compensation than is paid in medical benefits.
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Table 2. Monthly Black Lung Benefit Amounts for CY2023
Source:
Notes: Benefits listed are for Part C claims, which are rounded up to the nearest
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29 The 2023 General Schedule (Base) pay rates are available on the website of the
30 The SSDI definition of disability is provided at Title 42, Section 423, of the
31 Section 224 of the Social Security Act (42 U.S.C. Sec.424) provides that in cases in which a person receives both SSDI and workers' compensation benefits in a given month, the amount of the monthly SSDI benefit or the workers' compensation benefit is reduced, but not below zero, until the combined amount of the benefits equals 80% of the person's pre-disability wage depending on the type of workers' compensation benefit. In the case of Part C benefits, the persons' SSDI benefit is reduced.
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Figure 1. Black
Source:
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Survivors' Benefits
Certain survivors of a miner whose death was due to pneumoconiosis are eligible for cash benefits. In the case of a surviving spouse or divorced spouse, the spouse's benefit is equal to what the miner would have received and is based on the number of dependents of the spouse as provided in Table 2. If there is no surviving spouse, then benefits are awarded to the surviving minor children in equal shares. If there are no surviving minor children, then benefits can be paid to the miner's dependent parents or dependent siblings. If there are no eligible survivors, no benefits are paid upon the miner's death and benefits do not go to the miner's estate or to any other person, including a person named by the miner in a will. The number of miners and survivors receiving benefits has declined over time, as illustrated in Figure 2.
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Figure 2. Black
Source:
Notes: Data is taken from
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Continues with Part 2 of 2
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The report is posted at: https://crsreports.congress.gov/product/pdf/R/R45261
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