The coal industry is objecting to an Obama administration proposal that mine operators should come up with more money to cover the cost of regulating surface mining.

The idea is being floated by the Office of Surface Mining Reclamation and Enforcement to help cut spending $16.7 million. The agency's proposed $146.1 million budget for fiscal 2011 would cut spending on regulating ongoing coal operations in favor of focusing on abandoned mines.

The agency is encouraging coal states to increase revenue from the industry to cover the difference. Director Joe Pizarchik says the proposal reflects Obama's commitment to cut subsidies for fossil fuel industries including coal, oil and natural gas.

The National Mining Association says the idea will hurt employment and increase power bills.

©2010 The Associated Press. All rights reserved.