The Biden administration is recommending changes to a 151-year-old law that governs mining for copper, gold, and other hardrock minerals on U.S.-owned lands. These changes include making companies pay royalties on what they extract for the first time.

A plan led by the Interior Department also proposes the creation of a mine leasing system and the coordination of permitting efforts among various federal agencies. This initiative aligns with the White House’s push to boost domestic mining for minerals essential for electric vehicles, solar panels, and other clean energy technologies.

Currently, under a 1872 law, the U.S. does not collect royalties on minerals extracted from federal lands, a point of contention for Democratic lawmakers and environmental groups. The White House’s plan seeks to impose a variable 4% to 8% net royalty on hardrock minerals produced on federal lands, but it would require approval by Congress, which may be challenging given that the House is controlled by Republicans who have traditionally opposed such fees.

Despite potential political obstacles, an interagency working group, led by the Interior Department, highlighted the benefits of imposing royalties on approximately 750 hardrock mines on federal lands, mostly in the Western United States. This figure does not include around 70 coal mines, whose owners are already required to pay federal royalties.

The working group argued that a royalty system would ensure that American taxpayers receive fair compensation for minerals extracted from federal lands. Additionally, the fees could fund programs to streamline mining permits, address environmental concerns related to abandoned mines, and support states and tribal governments that provide infrastructure and services to mining-dependent communities.

The United States stands out among other countries like Australia, Canada, and Chile, which already collect royalties on minerals. Furthermore, at least a dozen Western states in the U.S. already collect royalties on hardrock mining.

Deputy Interior Secretary Tommy Beaudreau, who chaired the working group, referred to the plan as a “modernized approach” that balances the needs of the clean energy economy with environmental and societal obligations.

Tribes and environmental groups welcomed the proposed reforms but urged President Joe Biden to go further in protecting communities, sacred places, and water resources. The White House initiated the working group last year to fulfill Biden’s commitment to increasing the production of minerals such as lithium and nickel for electric vehicles and clean energy technologies.

While some see these reforms as a positive first step, others, including Rich Nolan, the president and CEO of the National Mining Association, believe they will create additional obstacles for responsible domestic mining and increase reliance on imports from countries with questionable labor and environmental practices.

Wyoming Sen. John Barrasso, the top Republican on the Senate Energy and Natural Resources panel, criticized the proposed reforms, arguing that they would harm the affordability and reliability of energy and lead to increased reliance on critical minerals from countries with labor and environmental concerns.