Energy Workers Health Improvement and Compensation Fund Act

Bill Number

H.R. 4905

Origin Chamber

House

Congress

119th Congress, Session 1

Status

Introduced

Latest Action

2025-08-05: Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2025-08-09T03:38:24Z

AI-Generated Summary

Purpose of the Legislation

This bill, titled the "Energy Workers Health Improvement and Compensation Fund Act," aims to create a federal trust fund to help pay for medical costs faced by oil and gas workers and their families due to health problems linked to their work environment, such as exposure to pollutants from oil and gas sites.

Key Provisions

• Creation of the Fund: Establishes the "Energy Workers Health Compensation Fund" as a trust fund in the U.S. Treasury. The fund is financed by mandatory payments from oil companies (defined as those with over $50 million in annual revenue engaged in oil or natural gas exploration or extraction).
• Payments are based on the total compensation (including salaries, bonuses, and deferred pay) given to each company's 10 highest-paid employees in the previous year, due by March 31 annually.
• Penalties apply if payments are less than 98% of the required amount (an extra 10% of the shortfall).
• Companies can make optional extra contributions up to the required amount, but no tax deductions are allowed for any payments or contributions under the bill.
• Compensation for Medical Expenses: Eligible workers (or their family members) can receive reimbursements from the fund for out-of-pocket medical costs not covered by private insurance, Medicare, or Medicaid. Covered conditions include:
• Asthma.
• Heat-related illnesses.
• Other respiratory or cardiovascular diseases identified by the Secretary of Labor (in consultation with the Assistant Secretary for Occupational Safety and Health) as linked to methane emissions, smog, particulate matter, or volatile organic compounds.
• Claims are processed in the order received, with payments made directly from the fund without needing additional congressional approval.
• Commission on Health Outcomes: Within 90 days of enactment, the Secretary of Labor must create a commission to study and improve health for oil and gas workers.
• Membership includes representatives from federal agencies (e.g., Health and Human Services, Labor, National Institutes of Health, Occupational Safety and Health Administration), immigration and labor advocacy groups, and eligible workers from key oil-producing states (Alaska, Colorado, Louisiana, New Mexico, North Dakota, Texas).
• The commission holds hearings, gathers evidence, and develops recommendations for federal actions to study and enhance worker health.
• Recommendations must be submitted publicly within 18 months to the Secretary and relevant congressional committees; the Secretary responds in writing within 90 days.
• Members serve without pay but may receive travel expenses; vacancies are filled as original appointments.
• Reporting Requirements: The Secretary of Labor must report annually to the commission on fund deposits and payments made.
• Definitions:
• Eligible worker: Anyone who has worked at or near an oil/gas site for at least one year, or lived within 20 miles of such a site for at least one year, and was employed by an oil company or its contractor.
• Family member: Spouse, child, or parent of an eligible worker who has lived near a site for at least one year.
• Secretary: Refers to the Secretary of Labor.

Significant Changes to Existing Law

This bill introduces entirely new mechanisms not present in current U.S. law:

• A dedicated trust fund financed by private oil company contributions tied to executive pay, with no tax benefits—unlike typical worker compensation programs (e.g., under the Department of Labor's existing systems) that rely on insurance or general appropriations.
• Specific reimbursements for health issues tied to oil/gas environmental exposures, expanding beyond standard occupational health laws like the Occupational Safety and Health Act, which focus on prevention rather than post-exposure medical compensation.
• Creation of a new advisory commission with mandated reporting and recommendations, adding a layer of oversight and research not previously required for this sector.

Potential Impacts

• On Citizens: Provides financial relief for medical bills to thousands of current and former oil/gas workers and nearby residents (including families), potentially improving access to care for pollution-related illnesses in oil-producing regions. However, eligibility is limited to those with at least one year of exposure or residency.
• On Government Agencies: Shifts administrative burden to the Department of Labor for managing the fund, processing claims, establishing the commission, and issuing reports—without needing yearly budget approvals for fund use. Could strain resources if claims volume is high.
• On Oil Companies: Imposes new annual costs based on executive compensation (potentially millions per company), with penalties for shortfalls, which may increase operational expenses and affect profitability. No international relations impacts are mentioned, though it could indirectly influence U.S. energy policy discussions abroad.
• Broader Effects: May encourage better health monitoring in the industry but could face implementation challenges if the fund underperforms due to disputes over payments or disease determinations.

Main Stakeholders Affected

• Energy Workers and Families: Primary beneficiaries, including those in extraction roles or living near sites in states like Texas and North Dakota, who gain access to reimbursements.
• Oil and Gas Companies: Required to fund the program, facing direct financial obligations and potential scrutiny on executive pay.
• Federal Government Agencies: Department of Labor (oversight and administration); Departments of Health and Human Services, Labor, and others (via commission representation).
• Advocacy Groups: Labor unions and immigration advocates involved in the commission, influencing recommendations.
• Congressional Committees: Energy and Natural Resources, Health/Education/Labor/Pensions (Senate); Energy and Commerce, Natural Resources (House)—receiving reports and recommendations.
• Residents Near Oil Sites: Indirectly affected through eligibility for family members, particularly in rural or underserved areas.

Notable Legal, Constitutional, or Political Implications

• Legal: The bill's mandatory contributions from private companies to a federal fund could raise questions under contract or property rights laws, as payments are non-deductible and enforced by the Secretary of Labor. Disease determinations by the Secretary introduce administrative discretion, potentially leading to legal challenges over eligibility or coverage.
• Constitutional: May implicate the Commerce Clause (regulating interstate energy industry) and Takings Clause (if contributions are seen as uncompensated seizures of company funds), though framed as a worker protection measure. The trust fund's "without further appropriation" clause streamlines spending but could test separation of powers if seen as bypassing Congress.
• Political: Positions the federal government as intervening in the oil industry's health impacts, potentially polarizing debates between worker protections/environmental concerns and industry costs. The state-specific worker representation on the commission highlights regional politics in energy-dependent areas, and tying funding to executive pay could spark broader discussions on corporate accountability.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Vasquez, Gabe [D-NM-2]

Recent Actions

• 2025-08-05: Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-08-05: Referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-08-05: Introduced in House
• 2025-08-05: Introduced in House

Bill Versions

• Energy Workers Health Improvement and Compensation Fund Act — issued 2025-08-05 — PDF (9 pages)