This bill amends title 11 of the U.S. Code to ensure that oil, gas, and coal companies, defined as "fossil fuel companies," fulfill their environmental reclamation obligations when they declare bankruptcy. It introduces new definitions for "coal," "executive officer," "fossil fuel company," "gas," and "oil" to clarify the scope of the amendments. The primary goal is to prevent these companies from evading cleanup responsibilities by filing for bankruptcy. The legislation significantly alters the prioritization of expenses in bankruptcy proceedings for fossil fuel companies. It mandates that accumulated and projected reclamation costs are considered necessary expenses for preserving property securing a claim. Furthermore, it establishes a new priority order, placing non-executive employee wages and environmental reclamation costs (including unfulfilled environmental bond obligations and penalties under various environmental laws) above other unsecured claims and shareholder claims. To ensure these obligations are met, the bill allows courts to recover executive officer compensation from the five years preceding bankruptcy if funds are insufficient. It also imposes strict joint and several liability on private equity firms, parent companies, and hedge funds that own shares in the bankrupt fossil fuel company for these reclamation costs. Additionally, environmental bond obligations and reclamation costs are made non-dischargeable in bankruptcy, preventing companies from shedding these debts. The bill also prohibits the abandonment of any fossil fuel assets as burdensome to the estate, ensuring that properties used for exploration, production, refinement, or distribution of fossil fuels cannot be simply left behind. It extends the look-back period for fraudulent transfers by fossil fuel companies to 10 years, allowing trustees more time to recover assets. Finally, it mandates that new oil, gas, or coal leases issued by the Secretary of the Interior include a provision prohibiting their transfer if the leaseholder files for bankruptcy.
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Timeline
Introduced in House
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.
Introduced in House
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.
Finance and Financial Sector
Ending Fossil Fuel Bailouts Act of 2026
USA119th CongressHR-9035| House
| Updated: 5/26/2026
This bill amends title 11 of the U.S. Code to ensure that oil, gas, and coal companies, defined as "fossil fuel companies," fulfill their environmental reclamation obligations when they declare bankruptcy. It introduces new definitions for "coal," "executive officer," "fossil fuel company," "gas," and "oil" to clarify the scope of the amendments. The primary goal is to prevent these companies from evading cleanup responsibilities by filing for bankruptcy. The legislation significantly alters the prioritization of expenses in bankruptcy proceedings for fossil fuel companies. It mandates that accumulated and projected reclamation costs are considered necessary expenses for preserving property securing a claim. Furthermore, it establishes a new priority order, placing non-executive employee wages and environmental reclamation costs (including unfulfilled environmental bond obligations and penalties under various environmental laws) above other unsecured claims and shareholder claims. To ensure these obligations are met, the bill allows courts to recover executive officer compensation from the five years preceding bankruptcy if funds are insufficient. It also imposes strict joint and several liability on private equity firms, parent companies, and hedge funds that own shares in the bankrupt fossil fuel company for these reclamation costs. Additionally, environmental bond obligations and reclamation costs are made non-dischargeable in bankruptcy, preventing companies from shedding these debts. The bill also prohibits the abandonment of any fossil fuel assets as burdensome to the estate, ensuring that properties used for exploration, production, refinement, or distribution of fossil fuels cannot be simply left behind. It extends the look-back period for fraudulent transfers by fossil fuel companies to 10 years, allowing trustees more time to recover assets. Finally, it mandates that new oil, gas, or coal leases issued by the Secretary of the Interior include a provision prohibiting their transfer if the leaseholder files for bankruptcy.
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Timeline
Introduced in House
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.
Introduced in House
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.