HouseH.R. 9035119th Congress
Ending Fossil Fuel Bailouts Act of 2026
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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9035 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 9035
To amend title 11 of the United States Code to ensure oil, gas, and
coal companies that are debtors in bankruptcy fulfill environmental
reclamation obligations.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 26, 2026
Mr. Min (for himself, Mr. Huffman, Ms. Ansari, Mrs. Grijalva, and Ms.
Dexter) introduced the following bill; which was referred to the
Committee on the Judiciary, and in addition to the Committee on Natural
Resources, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend title 11 of the United States Code to ensure oil, gas, and
coal companies that are debtors in bankruptcy fulfill environmental
reclamation obligations.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Ending Fossil Fuel Bailouts Act of
2026''.
SEC. 2. DEFINITIONS.
Section 101 of title 11 of the United States Code is amended--
(1) by inserting after paragraph (5) the following:
``(5A) The term `coal' has the meaning given such term in
section 2 of chapter 1156 of the Act of August 31, 1954 (68
Stat. 1009; 30 U.S.C. 552).'';
(2) by inserting after paragraph (17) the following:
``(17A) The term `executive officer' with respect to a
fossil fuel company means--
``(A) the president, or any officer in charge, of a
principal business unit, division or function of the
fossil fuel company, such as sales, administration or
finance;
``(B) any officer of the fossil fuel company who
performs a policy-making function; or
``(C) any other individual who performs similar
policy making functions for a fossil fuel company.'';
(3) by inserting after paragraph (26) the following:
``(26A) The term `fossil fuel company' means an entity that
has engaged in the exploration, production, refinement, or
distribution of oil, gas, coal, or any derivative of oil, gas,
or coal for profit.
``(26B) The term `gas' means natural gas as defined in
section 2(1) of the Natural Gas Policy Act of 1978.'';
(4) by redesignating paragraphs (40A) and (40B) as
paragraphs (40B) and (40C); and
(5) by inserting after paragraph (40) the following:
``(40A) The term `oil' has the meaning given such term in
section 311(a)(1) of the Federal Water Pollution Control
Act.''.
SEC. 3. PRIORITIZATION OF EXPENSES.
(a) Cost Recovery.--Section 506 of title 11 of the United States
Code is amended--
(1) in subsection (c) by inserting ``Unless otherwise
provided by this section,'' before ``The trustee may recover
from property''; and
(2) by inserting after subsection (d) the following:
``(e) With respect to the accumulated and projected reclamation
costs associated with the complete cleanup of fossil fuel operations
and retirement of fossil fuel assets pursuant to applicable Federal,
State, and local laws and reclamation requirements, the trustee shall--
``(1) consider such costs as necessary costs and expenses
for preserving, or disposing of, such property securing an
allowed secured claim pursuant to subsection (c); and
``(2) recover from the property securing an allowed secured
claim such sums necessary to fulfill all fossil fuel
reclamation costs.''.
(b) Prioritization of Unsecured Claims.--Section 507 of title 11 of
the United States Code is amended by adding at the end the following:
``(e) With respect to a debtor that is a fossil fuel company, the
following expenses and claims have priority in the following order:
``(1) Wages, salaries, commissions, and benefits pursuant
to subsections (4) and (5) owed to an employee that is not an
executive officer of the company.
``(2) Accumulated and projected reclamation costs
associated with the complete cleanup of fossil fuel operations
and retirement of fossil fuel assets pursuant to applicable
Federal, State, and local laws and reclamation requirements,
with priority given to costs in the following order:
``(A) Any unfulfilled environmental bond
obligation.
``(B) Environmental reclamation requirements or
administrative or civil penalties administered by
Federal, State, or local governments, including
requirements or penalties pursuant to--
``(i) Federal Water Pollution Control Act
(33 U.S.C. 1251 et seq.);
``(ii) the Clean Air Act (42 U.S.C. 7401 et
seq.);
``(iii) the Comprehensive Environmental
Response, Compensation, and Liability Act of
1980 (42 U.S.C. 9601 et seq.);
``(iv) the Endangered Species Act of 1973
(16 U.S.C. 1531 et seq.);
``(v) the Surface Mining Control and
Reclamation Act of 1977 (30 U.S.C. 1201 et
seq.);
``(vi) the Outer Continental Shelf Lands
Act (43 U.S.C. 1331 et seq.);
``(vii) the Mineral Leasing Act (30 U.S.C.
181 et seq.);
``(viii) the Safe Drinking Water Act (42
U.S.C. 300f et seq.); or
``(ix) any similar environmental law of a
State where such operations and assets are
situation.
``(3) Any unsecured claim.
``(4) A claim by a shareholder of the fossil fuel company
debtor.
``(5) The order of claims described in section 507(a).
``(f) With respect to a debtor that is a fossil fuel company, the
estate of which has insufficient funds to cover the claims described in
paragraphs (1) and (2) of subsection (e)--
``(1) the court may recover the compensation of the
executive officers of the debtor that is a fossil fuel company
during the 5-year period preceding the date of the filing of
the petition; and
``(2) the following entities shall be strictly liable under
the rules of joint and several liability to cover those claims:
``(A) A private equity firm that owns a share in
the fossil fuel company debtor.
``(B) A parent company of the fossil fuel company
debtor.
``(C) A hedge fund that owns a share in the fossil
fuel company debtor.''.
SEC. 4. LIMITATIONS ON DISCHARGEABILITY.
Section 523(a) of title 11 of the United States Code is amended--
(1) in paragraph (19) by striking ``or'' at the end;
(2) in paragraph (20) by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(21) for an environmental bond; or
``(22) for the accumulated and projected reclamation costs
associated with the complete cleanup of fossil fuel operations
and retirement of fossil fuel assets pursuant to applicable
Federal, State, and local laws and reclamation requirements,
including--
``(A) the Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.);
``(B) the Clean Air Act (42 U.S.C. 7401 et seq.);
``(C) the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (42 U.S.C. 9601
et seq.);
``(D) the Endangered Species Act of 1973 (16 U.S.C.
1531 et seq.);
``(E) the Surface Mining Control and Reclamation
Act of 1977 (30 U.S.C. 1201 et seq.);
``(F) the Outer Continental Shelf Lands Act (43
U.S.C. 1331 et seq.);
``(G) the Mineral Leasing Act (30 U.S.C. 181 et
seq.);
``(H) the Safe Drinking Water Act (42 U.S.C. 300f
et seq.); and
``(I) any similar environmental law of a State
where such operations and assets are situated.''.
SEC. 5. PROHIBITION ON ABANDONMENT OF FOSSIL FUEL ASSETS.
Section 554 of title 11 of the United States Code is amended by
adding at the end the following:
``(e) No property of the estate may be abandoned as burdensome to
the estate under this section if the property was or may be utilized to
facilitate the exploration, production, refinement, or distribution of
oil, gas, coal, or any derivative of oil, gas, or coal.''.
SEC. 6. EXTENSION TO LOOK-BACK PERIOD FOR FRAUDULENT TRANSFERS AND
OBLIGATIONS.
Section 548(a) of title 11 of the United States Code is amended--
(1) in paragraph (1) by striking ``The trustee'' and
inserting ``Unless specified otherwise in this section, the
trustee''; and
(2) by adding at the end the following:
``(3) With respect to a debtor that is a fossil fuel
company, the trustee may avoid any transfer (including any
transfer to or for the benefit of an insider under an
employment contract) of an interest of the debtor in property,
or any obligation (including any obligation to or for the
benefit of an insider under an employment contract) incurred by
the debtor, that was made or incurred on or within 10 years
before the date of the filing of the petition if the debtor
acted pursuant to subparagraphs (A) and (B) of paragraph
(1).''.
SEC. 7. LIMITATION ON TRANSFER OF CERTAIN LEASES.
(a) Definitions.--In this section:
(1) Covered lease.--The term ``covered lease'' means--
(A) an oil, gas, or coal lease issued under the
Mineral Leasing Act (30 U.S.C. 181 et seq.); and
(B) a lease issued under the Outer Continental
Shelf Lands Act (43 U.S.C. 1331 et seq.).
(2) Secretary.--The term ``Secretary'' means the Secretary
of the Interior.
(b) Limitation.--The Secretary shall include in each covered lease
issued after the date of enactment of this Act a provision prohibiting
the leaseholder from transferring the covered lease to another person
if the lessee has filed a petition for bankruptcy under title 11 of the
United States Code.
SEC. 8. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.
(a) Effective Date.--Except as provided in subsection (b), this Act
and the amendments made by this Act shall take effect on the date of
the enactment of this Act.
(b) Application of Amendments.--The amendments made by this Act
shall apply only to cases commenced under title 11 of the United States
Code on and after the date of enactment of this Act.
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