According to the Associated Press, Kentucky governor Steve Beshear will sign the legislation, known as House Bill 283. It will cost coal operators an additional $US800,000 annually and be used to pay operating costs for the Kentucky Division of Mine Permits and to hire more staff to expedite permitting.

The legislation, which will go into effect as soon as Beshear signs it, was developed jointly by the governor’s administration, lawmakers and local industry in anticipation of new coal mines to create jobs for the state’s unemployed workforce.

"I am pleased that the industry, the administration and the General Assembly were able to work together to increase the number of coal mining permit applications that can be reviewed during these tight budgetary times," Beshear told the news service.

The new legislation is "a clear public-private partnership to make certain the state has the funds it needs to accomplish its mission", Kentucky Coal Association president Bill Bissett said.

Under current law, mining permit applications are $375. New fee structures mean that coal companies will pay between $750 and $2500, depending on whether the operator is expanding a current mine or building a new one.

The revenue will mean an elimination of permit application backlogs, as staffers will be hired solely to review permit applications, while the office increases its staff from 96 to 106.

The dedicated staff is expected to process more than 500 mine permit applications annually in the state.

The higher fees are already being collected from Kentucky operators under a regulation Beshear implemented last year. However, according to AP, that regulation was due to expire in April.

State Representative Jim Gooch said the backlog was delaying mine openings and keeping the state’s jobless rate high during an ongoing recession.

"In this bad economy, mining is one of the few bright spots," Gooch told the news service.

"We have people who need jobs badly, and we needed to do this so that they can go to work."