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SB 1358

An Act amending the act of July 25, 1961 (P.L.825, No.359), known as the Oil and Gas Conservation Law, further providing for drilling permits.

2025-2026 Regular Session Introduced by Dave Argall and 13 co-sponsors

SB 1358 primarily clarifies electric utility stranded-cost recovery within existing law, with unspecified potential ancillary effects on oil and gas permitting timelines or procedu

Referred to Environmental Resources & Energy
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WeVote Research Nonpartisan
Bill Summary · SB 1358

Summary of SB 1358 (Session 2025-2026) – Pennsylvania

Purpose and intent

  • SB 1358 amends the Oil and Gas Conservation Law (the act of July 25, 1961, P.L.825, No.359) with a focus on provisions related to drilling permits and the regulation of oil and gas activities.
  • The bill is intended to modify procedural or substantive requirements for obtaining drilling permits under the Oil and Gas Conservation framework, potentially affecting timelines, criteria, and agency review processes.

Key provisions and changes (as described by the bill text excerpt)

  • The specific text provided centers on defining “transition or stranded costs” within the context of electric utilities transitioning in a restructured or competitive market. Although this language appears part of a broader restructuring statute, it is included in the bill's text, suggesting the bill may intersect with energy market reforms and regulatory recovery mechanisms beyond purely oil and gas conservation.

  • “Transition or stranded costs” are defined as an electric utility’s known and measurable net generation-related costs, calculated on a net present value basis over the asset or liability’s life, which may not be recoverable in a competitive market but remain after mitigation by the utility. The definition encompasses several components:

    1. Regulatory assets and deferred charges, including unfunded portions of decommissioning costs for nuclear plants and contract-related obligations with nonutility projects, with recoverability determined under specific sections (e.g., 2808(c)(1)).
    2. Prudently incurred costs related to cancellation, buyout, buy-down, or renegotiation of nonutility generating projects, recoverable under specified guidance (e.g., 2808(c)(2)).
    3. Additional costs to be determined under 2808(c)(3), including net plant investments and other costs tied to certain long-term asset/contract scenarios (text indicates ongoing enumerations but is truncated in the excerpt).

  • The excerpt provided is partially technical and appears more aligned with electric utility restructuring and cost recovery than with detailed oil and gas drilling permit procedures. The primary effect in this excerpt would be to clarify and codify how stranded costs are treated under the regulatory framework, with explicit references to regulatory commissions and sections governing recovery.

Who would be affected

  • Electric utilities operating in Pennsylvania, especially those undergoing restructuring or transitioning to competitive markets.
  • Consumers and ratepayers who might be affected by how transition or stranded costs are recovered and mitigated.
  • State regulatory commissions responsible for electric utility oversight and cost recovery determinations.
  • Indirectly, oil and gas operators could be affected if the bill’s amendments to the Oil and Gas Conservation Law interact with permitting timelines, conditions, or regulatory processes.

Procedural and timeline aspects

  • Action history shows: On 2026-06-04, the bill was referred to the Environmental Resources & Energy committee.
  • This indicates the bill is at a stage where committee review, hearings, and potential amendments will occur before any floor consideration or voting by the full legislature.
  • If enacted, final provisions would become part of the Oil and Gas Conservation Law and related electric utility cost recovery statutes, with implementation contingent on regulatory rulemaking and potential budgetary or fiscal note analyses.

Potential impact and considerations

  • The bill’s impact hinges on the final language regarding drilling permits under the Oil and Gas Conservation Law. The provided excerpt emphasizes electricity market restructuring and stranded cost recovery, which may indicate companion or ancillary provisions affecting the energy sector beyond drilling permits.
  • Stakeholders to watch include oil and gas operators seeking permits, environmental and energy regulators, utility companies, and consumer advocacy groups concerned with cost recovery and rate impacts.
  • The exact substantive changes to drilling permit processes (e.g., permit timelines, inspection requirements, public notice, or environmental safeguards) would need to be reviewed in the full text of the bill as introduced and amended.

Note

  • The excerpt provided includes detailed definitions related to electric utility stranded costs rather than explicit drilling permit procedures. A comprehensive summary of the Oil and Gas Conservation Law provisions would require the complete bill text to outline specific permit-related changes, criteria, and timelines.

Compiled from official sources — confirm details with the bill’s official record.

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