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Bill > HB1686

PA HB1686

PA HB1686
In oil and gas wells, further providing for definitions and for Oil and Gas Lease Fund and providing for Public Natural Resources Trust Fund.

summary

Introduced
07/01/2025
In Committee
07/01/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

Amending the act of April 9, 1929 (P.L.343, No.176), entitled "An act relating to the finances of the State government; providing for cancer control, prevention and research, for ambulatory surgical center data collection, for the Joint Underwriting Association, for entertainment business financial management firms, for private dam financial assurance and for reinstatement of item vetoes; providing for the settlement, assessment, collection, and lien of taxes, bonus, and all other accounts due the Commonwealth, the collection and recovery of fees and other money or property due or belonging to the Commonwealth, or any agency thereof, including escheated property and the proceeds of its sale, the custody and disbursement or other disposition of funds and securities belonging to or in the possession of the Commonwealth, and the settlement of claims against the Commonwealth, the resettlement of accounts and appeals to the courts, refunds of moneys erroneously paid to the Commonwealth, auditing the accounts of the Commonwealth and all agencies thereof, of all public officers collecting moneys payable to the Commonwealth, or any agency thereof, and all receipts of appropriations from the Commonwealth, authorizing the Commonwealth to issue tax anticipation notes to defray current expenses, implementing the provisions of section 7(a) of Article VIII of the Constitution of Pennsylvania authorizing and restricting the incurring of certain debt and imposing penalties; affecting every department, board, commission, and officer of the State government, every political subdivision of the State, and certain officers of such subdivisions, every person, association, and corporation required to pay, assess, or collect taxes, or to make returns or reports under the laws imposing taxes for State purposes, or to pay license fees or other moneys to the Commonwealth, or any agency thereof, every State depository and every debtor or creditor of the Commonwealth," in oil and gas wells, further providing for definitions and for Oil and Gas Lease Fund and providing for Public Natural Resources Trust Fund.

AI Summary

This bill establishes the Public Natural Resources Trust Fund, a new financial mechanism designed to manage and allocate revenue from oil and gas lease rents and royalties. Beginning in the 2025-2026 fiscal year, any rents and royalties exceeding $70 million will be transferred to this trust fund, which will accumulate until it reaches a principal balance of $700 million. Once the fund reaches this threshold, money can be disbursed for specific purposes including public land conservation, watershed protection, farmland preservation, habitat restoration, green infrastructure, abandoned well plugging, and scientific research related to natural resource conservation. The fund will distribute money in specific proportions: 57% allocated by the department (40% for community recreation grants and 60% for state park/forest projects) and 43% transferred to the Environmental Stewardship Fund (65% for environmental protection projects and 35% for farmland preservation). The bill also requires annual financial and expenditure reports from the State Treasurer and the department, as well as an annual audit by the Auditor General, to ensure transparency and accountability. Importantly, the trust fund is intended to supplement, not replace, existing general fund appropriations, and can only be used for specific natural resource and conservation-related purposes.

Committee Categories

Agriculture and Natural Resources

Sponsors (9)

Last Action

Referred to Environmental & Natural Resource Protection (on 07/01/2025)

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