HB 2360

                                               PRINTER'S NO.    3137
              THE GENERAL ASSEMBLY OF PENNSYLVANIA
                  HOUSE BILL
                  No. 2360
                                         Session of
                                           2026
INTRODUCED BY PUGH, KUZMA, WALSH, ZIMMERMAN, PICKETT AND RADER,
   APRIL 6, 2026
REFERRED TO COMMITTEE ON ENVIRONMENTAL AND NATURAL RESOURCE
   PROTECTION, APRIL 6, 2026
                             AN ACT
1 Establishing the Chesapeake Bay Grant-Only Compliance Program;
2    imposing duties on the Department of Environmental
3    Protection; providing for the prohibition of certain fees
4    relating to municipal separate storm sewer system permit
5    compliance and Chesapeake Bay requirements, for grants to
6    fund compliance costs, for limitation on enforcement and for
7    preemption; and making repeals.
8    The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1.   Short title.
11    This act shall be known and may be cited as the Chesapeake
12 Bay Grant-Only Compliance Program Act.
13 Section 2.   Definitions.
14    The following words and phrases when used in this act shall
15 have the meanings given to them in this section unless the
16 context clearly indicates otherwise:
17    "Chesapeake Bay requirement."   A requirement relating to
18 Chesapeake Bay nutrient reduction, Chesapeake Bay sediment
19 reduction or storm water management activity required solely to
20 satisfy a Chesapeake Bay obligation.
1    "Department."      The Department of Environmental Protection of
2 the Commonwealth.
3    "Fee."      A charge, assessment, rate, surcharge or other
4 monetary exaction imposed directly or indirectly, regardless of
5 the label, method of calculation or billing mechanism.
6    "Municipal separate storm sewer system" or "MS4."       As defined
7 in 40 CFR 122.26(b)(18) and (19) (relating to storm water
8 discharges (applicable to State NPDES programs, see § 123.25)).
9    "MS4 requirement."      A requirement relating to an MS4,
10 including a permit requirement.
11    "Program."      The Chesapeake Bay Grant-Only Compliance Program
12 established under section 4(a).
13    "Property owner."      A natural person, partnership,
14 corporation, nonprofit entity, institution, authority or
15 governmental entity that owns real property within this
16 Commonwealth.
17    "Public body."      A municipality, municipal authority,
18 political subdivision or other public body in this Commonwealth.
19 Section 3.     Prohibition on certain fees.
20    (a)   Prohibition.--A public body may not impose, levy,
21 collect or enforce a fee on a property owner for any of the
22 following purposes:
23(1)    To comply with an MS4 requirement.
24(2)    To comply with a Chesapeake Bay requirement.
25    (b)   Prohibited authorization.--A public body may not adopt,
26 enforce or rely on an ordinance, resolution, regulation, policy
27 or other measure that authorizes a fee for a purpose prohibited
28 under subsection (a).
29 Section 4.     Chesapeake Bay Grant-Only Compliance Program.
30    (a)   Establishment.--The Chesapeake Bay Grant-Only Compliance
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1 Program is established in the department. The department shall
2 administer the program to provide grants to public bodies for
3 costs incurred to comply with MS4 requirements and Chesapeake
4 Bay requirements.
5    (b)   Award and use of grants.--Subject to the availability of
6 money, the department shall award grants under the program to a
7 public body that is subject to an MS4 requirement or Chesapeake
8 Bay requirement. A grant awarded under the program may be used
9 only for costs incurred to comply with MS4 requirements and
10 Chesapeake Bay requirements.
11    (c)   Exclusive source of funding.--Except for a grant match
12 required of a public body, compliance with MS4 requirements and
13 Chesapeake Bay requirements shall be funded exclusively through
14 Federal funds, Commonwealth funds or other grant funding
15 administered by the Commonwealth.
16    (d)   Collaboration.--The department shall collaborate with
17 Federal and State agencies to secure funding for the program.
18 Section 5.   Limitation on enforcement.
19    The department may not enforce an MS4 requirement or
20 Chesapeake Bay requirement against a public body unless
21 sufficient grant funding is available to pay 100% of the cost of
22 compliance, as determined by the governing body of the public
23 body.
24 Section 6.   Preemption.
25    This act shall preempt an ordinance, resolution, regulation,
26 policy or other measure of a public body to the extent that the
27 ordinance, resolution, regulation, policy or other measure
28 authorizes the imposition, levy, collection or enforcement of a
29 fee for a purpose prohibited under section 3.
30 Section 7.   Repeals.
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1    The following are repealed insofar as they are construed to
2 authorize the imposition, levy, collection or enforcement of a
3 fee for a purpose prohibited under section 3:
4(1)    Section 2705 of the act of May 1, 1933 (P.L.103,
5    No.69), known as The Second Class Township Code.
6(2)    53 Pa.C.S. § 5607(d)(34) (relating to purposes and
7    powers).
8 Section 8.    Effective date.
9    This act shall take effect in 60 days.
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