HB 2360 — An Act establishing the Chesapeake Bay Grant-Only Compliance Program; imposing duties on the Department of Environmental Protection; providing for the prohibition of certain fees relating to municipal separate storm sewer system permit compliance and Chesapeake Bay requirements, for grants to fund compliance costs, for limitation on enforcement and for preemption; and making repeals.

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

20260HB2360PN3137                     - 2 -
 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.

20260HB2360PN3137                   - 3 -
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.




20260HB2360PN3137                   - 4 -