H.R. 9035

[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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