SB 1319: Corporation Commission; processes for cities and counties to seek certain reimbursement; fair market value; requiring application to request use of certain funds; creating the Remediation Assistance Revolving Fund. Emergency. - Oklahoma

Floor (House) → Floor (Senate) · 6 edits

MODERATE

The bill was moved from the House to the Senate floor, resulting in significant substantive changes to the funding mechanism and scope. The House version created a new 'Remediation Assistance Revolving Fund' for general environmental emergencies, while the Senate version replaced this with a specific 'Corporation Commission Plugging Fund' dedicated solely to seeping natural gas incidents. Additionally, the Senate version added a mandatory excise tax to maintain the fund and set a specific sunset date of July 1, 2031.

Scope change

The bill's scope narrowed from general environmental emergencies (including brine or oil) to specifically address seeping natural gas incidents, aligning the legislation with existing statutes for that specific hazard.

FISCAL

Replaced the general 'Remediation Assistance Revolving Fund' with a specific 'Corporation Commission Plugging Fund'.

Added a requirement for an excise tax on oil and gas to replenish the fund if it falls below a $5 million threshold.

TIMELINE

Established a sunset date of July 1, 2031, for the fund and the associated tax provisions.

SCOPE

Narrowed eligibility criteria to specifically address seeping natural gas, removing broader references to brine, oil, and general contamination.

REQUIREMENT

Added a requirement that homeowners must prove contamination occurred from an abandoned well to qualify for assistance.

Removed the provision allowing the city or county to acquire title to contaminated property, shifting the focus entirely to remediation.

SB1319 (3-24-26) (FRIX) FS FA1.PDF → Floor (House) · 5 edits

MODERATE

The bill was converted from a Senate substitute version to a House Floor version, incorporating amendments by the Appropriations and Budget Committee. The most significant substantive change is the addition of a new subsection (B) requiring homeowners to file a formal application with the Corporation Commission to receive remediation assistance, replacing the previous text that did not explicitly mandate this step. The bill also clarifies that the fund cannot be used for damages, limits assistance to specific cleanup and purchase costs, and adds a requirement for the Corporation Commission to follow specific state statutes before spending funds.

Scope change

The bill's scope remains focused on environmental emergencies involving brine or oil contamination, but the process for accessing funds has been formalized to require a specific application and review process by the Corporation Commission.

REQUIREMENT

Added a mandatory application process where homeowners must file with the Corporation Commission to request remediation assistance.

Added a requirement that the Corporation Commission must comply with Section 85.41A of Title 74 of the Oklahoma Statutes before making any expenditures from the fund.

Added a specific prohibition stating the fund cannot be used to pay for any damages.

ELIGIBILITY

Clarified that the fund can be used to purchase contaminated property at fair market value, with title potentially held by the city or county rather than just the Land Office.

TECHNICAL

Changed the document header from 'FLOOR SUBSTITUTE' to 'COMMITTEE SUBSTITUTE' and updated the list of House sponsors to include Boles and Bashore.

House Committee Substitute for Senate Bill → SB1319 (3-24-26) (FRIX) FS FA1.PDF · 3 edits

MINOR

The bill was reclassified from a 'Committee Substitute' to a 'Floor Substitute,' indicating it has moved to the final stage of legislative consideration. The core policy text regarding the creation of a revolving fund for environmental remediation remains substantively unchanged, though minor formatting adjustments were made to the header and page numbering.

TECHNICAL

The bill title was changed from 'Committee Substitute' to 'Floor Substitute,' reflecting its progression in the legislative process.

Minor formatting adjustments were made to the header section, including the removal of the 'Engrossed' designation and slight spacing changes.

Page numbering and request numbers (Req. No.) were updated to reflect the new version of the document.

Proposed Committee Substitute (sub committee) 1 → House Committee Substitute for Senate Bill · 4 edits

MODERATE

The bill was completely rewritten to change its title and numbering, replacing the 'Proposed Subcommittee Substitute' with a 'Committee Substitute' to reflect its progression through the legislative process. The substantive policy language regarding the Corporation Commission's emergency remediation fund remains identical to the previous version.

TECHNICAL

The document title and header were updated from 'Proposed Subcommittee Substitute' to 'Committee Substitute' to indicate the bill has moved from the subcommittee stage to the full committee stage.

The bill's internal reference numbers were updated from 17283 to 17461 to reflect the new committee version.

The bill's effective date was updated from April 2, 2026, to April 15, 2026.

The author attribution was updated to reflect the House Committee's adoption of the amendment by Chris Sneed.

Enrolled (final version) → Proposed Committee Substitute (sub committee) 1 · 6 edits

MODERATE

The bill was completely rewritten to shift the process from cities/counties seeking reimbursement to homeowners directly applying for assistance. The new version allows homeowners to receive funds for cleanup and property purchase without first exhausting insurance claims, whereas the original bill required cities to buy the homes first and prohibited direct homeowner payments. This significantly expands eligibility for individual homeowners and changes the administrative workflow from a municipal-led process to a direct homeowner application.

Scope change

The bill's scope expanded from a municipal reimbursement program to a direct homeowner assistance program, allowing individuals to apply for funds regardless of whether their city or county has initiated the process.

ELIGIBILITY

Changed the applicant from cities and counties to individual homeowners, allowing residents to apply directly for remediation assistance.

REQUIREMENT

Removed the requirement that homeowners must pursue insurance claims before receiving state assistance, though they must still pursue them in good faith.

Removed the requirement that cities or counties must acquire title to the property before requesting reimbursement from the fund.

FISCAL

Expanded the definition of allowable expenses to explicitly include the cost of purchasing the residence and property at fair market value, in addition to cleanup costs.

ENFORCEMENT

Removed the provision holding homeowners personally liable for reimbursement if they fail to pursue insurance claims in good faith.

SCOPE

Added the Oklahoma Energy Resources Board as an agency that may handle referrals for environmental emergencies outside the Corporation Commission's jurisdiction.

Engrossed → Enrolled (final version) · 6 edits · May 29, 2026

MODERATE

The bill was finalized and enrolled, changing the sponsors to include three additional House members. The most significant substantive change is that the program's eligibility was expanded from individual homeowners to include cities and counties, which must now acquire title and remove contaminated homes before seeking reimbursement. The process was also adjusted to allow the Department of Environmental Quality to use the fund for remediation costs if no other funding is available, and new provisions were added to hold homeowners personally liable if they fail to pursue insurance claims in good faith.

Scope change

The bill's scope expanded from assisting individual homeowners to also allowing cities and counties to seek reimbursement for acquiring and removing contaminated residential properties.

ELIGIBILITY

Eligibility was changed from individual homeowners to include cities and counties, which must now acquire title and remove the home before requesting reimbursement.

FISCAL

The fund can now be used to reimburse the Department of Environmental Quality for remediation costs if no other eligible funding sources exist.

ENFORCEMENT

New provisions hold homeowners personally liable if the fund is not reimbursed or if they fail to pursue insurance claims in good faith, with the Attorney General authorized to bring legal action.

DEFINITION

Fair market value is now specifically defined as the greater of the county assessor's valuation or a comparative market analysis from the preceding three to six months.

REQUIREMENT

The bill now requires cities and counties to begin the acquisition process before requesting reimbursement, whereas the original version focused on homeowner applications.

TECHNICAL

The bill was transitioned from 'Engrossed' to 'Enrolled' status, adding the signatures of additional House sponsors and final passage dates.

Amended And Engrossed → Engrossed · 5 edits · May 14, 2026

MODERATE

The bill was amended to shift the primary responsibility for environmental remediation from cities and counties to individual homeowners. The new version allows homeowners directly to apply for state assistance to clean up contamination caused by substances like brine or oil, whereas the previous version required cities or counties to purchase homes first before seeking reimbursement. This change simplifies the process for residents and clarifies that the state fund cannot be used to pay for general property damage claims.

Scope change

The bill's scope expanded to include individual homeowners as direct applicants for remediation assistance, replacing the previous requirement that cities or counties must acquire title to the property first.

ELIGIBILITY

Eligibility was changed from cities or counties seeking reimbursement for purchased homes to individual homeowners applying directly for assistance.

REQUIREMENT

New requirements mandate that homeowners must act in good faith to pursue all available insurance and damage claims before receiving state aid.

DEFINITION

Clarified that the state fund covers remediation costs (cleaning up contamination) but explicitly excludes payment for damages to personal property.

ENFORCEMENT

Added provisions allowing the Attorney General to sue homeowners who fail to reimburse the state fund or do not pursue insurance claims in good faith.

SCOPE

Removed the requirement for cities or counties to acquire property title before requesting reimbursement, streamlining the process for individual residents.

Introduced → Amended And Engrossed · 5 edits · May 14, 2026

MODERATE

The bill was completely rewritten to shift focus from individual homeowners to cities and counties. The original version allowed homeowners to apply directly for financial help if their homes were contaminated by oil or gas. The new version requires local governments to buy contaminated homes at fair market value, remove them, and then apply for reimbursement from a new 'Remediation Assistance Revolving Fund'.

Scope change

The bill's scope changed from providing direct relief to individual homeowners to establishing a program where cities and counties purchase and remediate contaminated properties.

ELIGIBILITY

Removed the ability for individual homeowners to directly apply for monetary assistance from the Corporation Commission Plugging Fund.

REQUIREMENT

Added a requirement for cities and counties to acquire title to contaminated homes and remove them before requesting reimbursement.

FISCAL

Created a new 'Remediation Assistance Revolving Fund' to replace the direct expenditure authority of the original 'Corporation Commission Plugging Fund'.

ENFORCEMENT

Added provisions holding homeowners personally liable if they fail to pursue insurance claims in good faith or reimburse the fund.

SCOPE

Expanded the scope to include a process for referring cases involving naturally occurring breakouts to the Department of Environmental Quality.

Corporation Commission; processes for cities and counties to seek certain reimbursement; fair market value; requiring application to request use of certain funds; creating the Remediation Assistance Revolving Fund. Emergency.

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