A bill to amend the Powerplant and Industrial Fuel Use Act of 1978 to further the objectives of national energy policy of conserving oil and natural gas through removing excessive burdens on the production of coal.

Amends the Powerplant and Industrial Fuel Use Act of 1978 to limit to 12 1/2 percent of the value of the coal produced yearly the amount of all State and local severance taxes or fees on coal mined from Indian or Federal lands and shipped in interstate commerce to any powerplant or major installation.