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HB 1370

Motor Fuel Tax Code; repealer; reduction in federal excise tax on gasoline or diesel fuel; emergency.

2026 Regular Session Introduced by Brad Boles and 1 co-sponsor

Oklahoma extends oil/gas well cleanup fund by restructuring excise taxes and revenue allocation formulas to sustain environmental remediation operations.

Sent to Governor
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Bill Summary · HB 1370

Legislative bill overview

HB 1370 extends Oklahoma's Corporation Commission plugging fund—which finances the cleanup of abandoned oil and gas wells—by modifying its sunset date and funding mechanism. The bill adjusts the excise tax on oil and gas production and alters how revenue is allocated and capped, with changes to sales tax percentages and apportionment formulas.

Why is this important

Abandoned oil and gas wells pose environmental and public safety risks, including groundwater contamination and surface hazards. The plugging fund's extension and funding adjustments determine whether Oklahoma can sustain its well remediation program or faces gaps in cleanup activities. This directly impacts environmental liability, energy industry operating costs, and state revenue allocation.

Potential points of contention

  • Excise tax burden on operators: Modifying oil and gas excise taxes affects industry profitability and may influence production decisions or investment in Oklahoma versus other states
  • Fund sustainability and adequacy: Questions about whether adjusted apportionment caps and revised percentages generate sufficient revenue to address the backlog of approximately 5,000+ unplugged wells
  • Competing budget priorities: Revenue changes create tradeoffs with other state spending needs, particularly given the "emergency" designation suggesting time-sensitive fiscal impact

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

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