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Offshore Leasing Standards and Accountability Act of 2026
Introduced May 26, 2026 · Last action May 26, 2026 — Referred to the House Committee on Natural Resources.
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Summary
This legislation is called the Offshore Leasing Standards and Accountability Act of 2026. Referred to the House Committee on Natural Resources.
Full bill text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9034 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 9034
To amend the Outer Continental Shelf Lands Act to establish fitness to
operate standards and decommissioning escrow accounts for offshore oil
and gas operators, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 26, 2026
Mr. Min (for himself, Mr. Huffman, Ms. Ansari, Mrs. Grijalva, and Ms.
Dexter) introduced the following bill; which was referred to the
Committee on Natural Resources
_______________________________________________________________________
A BILL
To amend the Outer Continental Shelf Lands Act to establish fitness to
operate standards and decommissioning escrow accounts for offshore oil
and gas operators, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Offshore Leasing Standards and
Accountability Act of 2026''.
SEC. 2. FITNESS TO OPERATE STANDARDS FOR OIL AND GAS OPERATORS ON THE
OUTER CONTINENTAL SHELF.
(a) In General.--The Outer Continental Shelf Lands Act (43 U.S.C.
1331 et seq.) is amended by adding at the end the following:
``SEC. 34. FITNESS TO OPERATE STANDARDS FOR OFFSHORE OIL AND GAS
ACTIVITIES.
``(a) Requirement for Approvals.--Beginning on the date on which
the Secretary issues or revises regulations under subsection (b)(5),
the Secretary may not issue, extend the term of, or approve the
transfer of a lease, easement, or right-of-way for oil or gas
exploration, development, or production on the outer Continental Shelf
with respect to a recipient responsible party unless the recipient
responsible party is certified as fit to operate in accordance with
subsection (b).
``(b) Certification of Fitness To Operate.--
``(1) In general.--The Secretary shall certify a recipient
responsible party as fit to operate based on--
``(A) the past compliance of the recipient
responsible party, and any covered entity of the
recipient responsible party, with Federal, State, and
local environmental and safety laws and regulations,
including deadlines and requirements related to
environmental reclamation, decommissioning, and worker
safety;
``(B) the financial solvency and capacity of the
recipient responsible party, and any covered entity of
the recipient responsible party, to weather market
shocks and fulfill current and projected
decommissioning liabilities; and
``(C) any other criteria with respect to the
recipient responsible party, and any covered entity of
the recipient responsible party, the Secretary may
establish by regulation.
``(2) Minimum qualifications.--The Secretary may not
certify a recipient responsible party as fit to operate unless
the recipient responsible party--
``(A) demonstrates, and the Secretary verifies,
that--
``(i) the recipient responsible party, and
any covered entity of the recipient responsible
party, did not violate any deadline or
requirement of Federal, State, or local
environmental or safety laws or regulations
related to environmental reclamation,
decommissioning, or worker safety during the
period of 10 years ending on (as applicable)
the date on which the request for certification
was made or the date on which the Secretary
makes an assessment under paragraph (4)(B);
``(ii) the recipient responsible party, and
any covered entity of the recipient responsible
party, are not in violation of this Act or any
other Federal, State, or local environmental or
safety law or regulation, including with
respect to any overdue decommissioning orders
for oil and gas infrastructure located on the
outer Continental Shelf;
``(iii) the recipient responsible party,
and any covered entity of the recipient
responsible party, took timely and effective
corrective actions to address any worker safety
incidents, oil spills, or other unauthorized
pollutant discharges, and infrastructure
failures or disruptions disclosed under
paragraph (B)(iv);
``(iv) the recipient responsible party, and
any covered entity of the recipient responsible
party, do not owe any rentals, royalties, or
other fees for any Federal or State lease,
easement, or right-of-way;
``(v) a Federal or State authority did not
reduce the rate for royalties on oil or gas
produced under any Federal or State lease held
by the recipient responsible party, or any
covered entity of the recipient responsible
party, during the period of 10 years ending on
(as applicable) the date on which the request
for certification was made or the date on which
the Secretary makes an assessment under
paragraph (4)(B);
``(vi) the recipient responsible party, and
any parent company of the recipient responsible
party, possess an investment grade credit
rating from a nationally recognized statistical
rating organization, as such term is defined in
section 3(a)(62) of the Securities Exchange Act
of 1934;
``(vii) the recipient responsible party,
and any parent company of the recipient
responsible party, have not filed a petition
for bankruptcy under title 11, United States
Code, during the period of 10 years ending on
(as applicable) the date on which the request
for certification was made or the date on which
the Secretary makes an assessment under
paragraph (4)(B); and
``(viii) the recipient responsible party,
and any covered entity of the recipient
responsible party, have sufficient financial
capacity to--
``(I) fulfill all current and
projected decommissioning liabilities,
including demonstration that the
liabilities disclosed under
subparagraph (B)(i)(I) are fully
collateralized or otherwise financially
secured;
``(II) implement and maintain up-
to-date risk mitigation technologies,
environmental protection measures, and
worker safety measures, including the
use of effective blow-out preventer
systems and well-control processes
pursuant to the requirements specified
in section 250.730 of title 30, Code of
Federal Regulations (or any successor
regulations); and
``(III) support a sufficient amount
of staff needed for maintenance and
oversight of oil and gas infrastructure
on the outer Continental Shelf in
accordance with environmental, health,
and safety requirements; and
``(B) provides to the Secretary a disclosure of--
``(i) current and projected decommissioning
liabilities of the recipient responsible party,
and any covered entity of the recipient
responsible party, related to all leases,
easements, and rights-of-way administered by a
Federal or State authority, including--
``(I) domestic and global oil and
gas decommissioning liabilities; and
``(II) the value of decommissioning
obligations relative to the proven
value of oil and gas reserves of the
areas subject to such leases,
easements, and rights-of-way;
``(ii) past results of inspections of oil
and gas infrastructure operated by the
recipient responsible party and any covered
entity of the recipient responsible party;
``(iii) the number, length of ownership,
and decommissioning status of each non-
producing oil and gas well located on an area
subject to a State or Federal oil and gas lease
held by the recipient responsible party or any
covered entity of the recipient responsible
party; and
``(iv) the number of worker safety
incidents, oil spills or other unauthorized
pollutant discharges, and infrastructure
failures or disruptions that have occurred on
areas subject to State and Federal oil and gas
leases held by the recipient responsible party,
or any covered entity of the recipient
responsible party, during the period of 15
years ending on (as applicable) the date on
which the request for certification was made or
the date on which the Secretary makes an
assessment under paragraph (4)(B).
``(3) Initial request for certification.--A recipient
responsible party may request to be certified as fit to operate
pursuant to the process established by regulation under
paragraph (5).
``(4) Maintenance of certification.--
``(A) Requirement.--A certification that the holder
of a lease, easement, or right-of-way for oil or gas
exploration, development, or production on the outer
Continental Shelf issued, extended, or transferred
after the date on which the Secretary issues or revises
regulations under paragraph (5) is fit to operate shall
be maintained in accordance with subparagraph (B).
``(B) Annual compliance verification.--
``(i) In general.--The Secretary shall
annually assess whether each holder of a lease,
easement, or right-of-way described in
subparagraph (A) remains in compliance with
standards established pursuant to paragraph
(5).
``(ii) Suspension of certification.--If the
Secretary determines under subparagraph (A)
that a holder of a lease, easement, or right-
of-way described in subparagraph (A) is not in
compliance with the standards established
pursuant to paragraph (5), the Secretary shall
suspend the certification and impose one or
more of the following penalties until such
holder complies with such standards:
``(I) Suspend the applicable lease,
easement, or right-of-way pursuant to
section 5(a)(1).
``(II) Issue fines or other civil
penalties.
``(III) Require supplemental
financial assurance in an amount equal
to the total expected cost of
decommissioning.
``(IV) Issue an order to the holder
of the lease, easement, or right-of-way
to commence decommissioning, including
a requirement that such entity develop
and submit a decommissioning plan
pursuant to section 250.1704 of title
30, Code of Federal Regulations (or
successor regulations) for approval by
the Secretary, and issue a notice to
any previous holders of the lease,
easement, or right-of-way to commence
joint and several liability
proceedings.
``(5) Regulations.--Not later than 1 year after the date of
enactment of this section, the Secretary shall issue or revise
regulations to--
``(A) establish standards which the Secretary shall
use to determine whether to certify a recipient
responsible party as fit to operate;
``(B) establish a process for recipient responsible
parties to request such certification; and
``(C) carry out any other requirements of this
section.
``(c) Report to Congress.--Not later than 1 year after the
Secretary issues or revises regulations under subsection (b)(5), and
annually thereafter, the Secretary shall submit to Congress a report
that includes--
``(1) a summary of the most recent assessments made under
subsection (b)(4)(B), including a list of--
``(A) each person that holds an active or inactive
lease, easement, or right-of-way for oil or gas
exploration, development, or production on the outer
Continental Shelf that failed to meet any of the
standards established pursuant to subsection (b)(5);
``(B) the specific standards for which the person
is or was non-compliant, disaggregated by--
``(i) person; and
``(ii) lease, easement, and right-of-way;
and
``(C) enforcement actions taken by the Department
of the Interior against each person identified under
subparagraph (A);
``(2) decommissioning cost estimates for each lease,
easement, and right-of-way for oil or gas exploration,
development, or production on the outer Continental Shelf, as
calculated by the Secretary pursuant to section 5(k)(2), and
any modifications to such estimates since the previous report;
and
``(3) the amount of funds currently held in each
decommissioning escrow accounts established pursuant to section
5(k).
``(d) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary $30,000,000 for each of fiscal years 2027
through 2031 to carry out the requirements of this section.
``(e) Definitions.--In this section:
``(1) Covered entity.--The term `covered entity', with
respect to a recipient responsible party, means--
``(A) any parent company of the recipient
responsible party;
``(B) any subsidiary company of the recipient
responsible party;
``(C) any entity that the recipient responsible
party enters into a contract with to construct,
develop, or operate a facility on the outer Continental
Shelf; and
``(D) any entity that--
``(i) shares officers, directors, or key
managerial personnel with any entity specified
in subparagraph (A) or (B); or
``(ii) is a predecessor to any entity
specified in subparagraph (A) or (B).
``(2) Decommissioning.--The term `decommissioning', with
respect to oil and gas infrastructure on the outer Continental
Shelf, means--
``(A) ending oil and gas operations;
``(B) permanently plugging all wells;
``(C) monitoring the efficacy of activities to end
such operations, including monitoring the safety and
soundness of plugged wells; and
``(D) returning the area subject to the lease,
easement, or right-of-way to a condition that meets the
environmental reclamation requirements of the
Department of the Interior and any other Federal agency
that has jurisdiction over such operations.
``(3) Parent company.--The term `parent company' means a
company that directly or indirectly controls another company.
``(4) Recipient responsible party.--The term `recipient
responsible party' means a person seeking the issuance,
extension, or transfer of a lease, easement, or right-of-way
for oil or gas exploration, development, or production on the
outer Continental Shelf.
``(5) Subsidiary company.--The term `subsidiary company'--
``(A) means any company that is owned or controlled
directly or indirectly by another company; and
``(B) includes any subsidiary of the company that
is so owned or controlled.''.
(b) Conforming Amendment.--Section 5(b) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1334(b)) is amended by inserting ``,
including the regulations issued or revised under section 34 relating
to fitness to operate'' after ``regulations issued under this Act''.
SEC. 3. DECOMMISSIONING ESCROW ACCOUNTS.
Section 5 of the Outer Continental Shelf Lands Act (43 U.S.C. 1334)
is amended by adding at the end the following:
``(k) Escrow Account for Decommissioning Liability.--
``(1) In general.--The holder of an oil and gas lease
shall, in accordance with this subsection, make payments to an
interest-bearing escrow account, established and administered
by the Secretary, in order to fully meet the total cost of
decommissioning the oil and gas infrastructure located on the
area subject to the lease.
``(2) Decommissioning cost estimate.--
``(A) In general.--For each oil and gas lease, the
Secretary, or an independent third-party entity
designated by the Secretary, shall calculate and
periodically update a probabilistic estimate of the
total cost of decommissioning existing and proposed oil
and gas infrastructure, including platforms, wells, and
pipelines, located on the area subject to such lease.
``(B) Initial estimate.--The Secretary, or the
independent third-party, shall calculate an initial
estimate of the total costs described in subparagraph
(A) prior to the issuance of a new lease.
``(C) Reevaluation and updates.--The Secretary, or
the independent third-party, shall reevaluate and, if
necessary, update the estimate of the total costs
described in subparagraph (A) at a minimum--
``(i) not less frequently than once every 2
years, to reflect any changes in such total
costs;
``(ii) prior to the approval of a
development and production plan pursuant to
section 25;
``(iii) prior to the end of the schedule
for payments established under paragraph (3);
and
``(iv) following the disbursal of funds
from the escrow accounts for a use approved
under paragraph (4).
``(3) Payment schedule.--
``(A) In general.--The Secretary shall establish a
mandatory schedule for payments required by paragraph
(1).
``(B) Deadlines to establish schedules.--
``(i) New leases.--With respect to the
issuance, extension, or transfer of an oil and
gas lease after the date of enactment of this
subsection, the Secretary shall establish the
schedule for payments prior to such issuance,
extension, or transfer.
``(ii) Existing leases.--With respect to
any lease in effect as of the date of enactment
of this subsection, the Secretary shall
establish the schedule for payments by not
later than 1 year after such date of enactment.
``(C) Minimum payments by 5 years.--Each schedule
of payments established under subparagraph (A) shall
provide that the total amount of payments made to the
escrow account by the date that is 5 years after the
schedule is established be not less than the total
decommissioning costs for all oil and gas
infrastructure located on the area of the applicable
lease.
``(D) Initial payments.--No lease may be issued,
and no development and production plan may be approved
under section 25, unless the recipient responsible
party or leaseholder makes a payment to the escrow
account in an amount equal to the greater of--
``(i) 25 percent of the average cost to
decommission oil and gas infrastructure located
on a typical lease at similar depths; and
``(ii) 25 percent of the total
decommissioning costs for all oil and gas
infrastructure proposed to be installed on the
area subject to the lease pursuant to the plan.
``(E) Lease extensions and transfers.--
``(i) Missed payments.--The Secretary may
not extend the term of, or approve the transfer
of, a lease if the holder of the lease owes any
outstanding payments to the escrow account.
``(ii) Adoption of payment schedule.--The
Secretary may not approve the transfer of a
lease unless the recipient responsible party
agrees to adopt the schedule for payments
established for the lease.
``(F) Adjustments.--The Secretary shall adjust a
schedule for payments established under subparagraph
(A) to reflect any update to the applicable cost
estimate under paragraph (2)(C).
``(G) Supplemental financial assurances.--If the
combined amount of the funds in an escrow account for a
lease and any supplemental financial assurances
provided by the holder of the lease exceeds the total
decommissioning cost estimate calculated by the
Secretary pursuant to paragraph (2), the Secretary
shall correspondingly reduce the supplemental financial
assurances required until the combined figure is
equivalent to the decommissioning cost estimate.
``(H) Interest.--Any interest paid on funds in an
escrow account established under paragraph (1) shall
become part of the principal funds in the account.
``(I) Amounts from joint and several liability.--
All funds accrued from previous holders of an oil and
gas lease as a result of joint and several liability
for the purposes of decommissioning shall be deposited
into the corresponding escrow account.
``(J) Return of remaining funds after
decommissioning.--After decommissioning is complete,
any funds remaining in an escrow account for a lease
established under paragraph (1) shall be returned to
any parties that made payments to the escrow account,
excluding any amounts deposited pursuant to
subparagraph (I), based on the proportion of the
payments made by the respective party.
``(4) Use of funds.--
``(A) In general.--The holder of a lease may only
use funds in an escrow account established under
paragraph (1)--
``(i) for the purposes of decommissioning
the oil and gas infrastructure located on the
area subject to the lease; and
``(ii) if the use is approved by the
Secretary.
``(B) No use as collateral.--No person may commit
funds held in an escrow account established under
paragraph (1) as collateral.
``(5) Penalties.--If the required payments into an escrow
account established under paragraph (1) are delinquent by more
than 60 days, the Secretary shall--
``(A) raise the royalty rate for the applicable
lease at a rate sufficient to recover the delinquent
amount within 6 months and deposit the recovered amount
into the applicable escrow account established under
paragraph (1); or
``(B) suspend the lease, pursuant to section
5(a)(2), until the holder of the lease provides the
delinquent amount.
``(6) Definitions.--In this subsection, the terms
`decommissioning', `parent company', and `recipient responsible
party' have the meanings given such terms, respectively, in
section 34.''.
SEC. 4. RESTRICTION ON TEMPORARY ABANDONMENT OF WELLS.
Section 5 of the Outer Continental Shelf Lands Act (43 U.S.C. 1334)
is amended by adding at the end the following:
``(l) Restriction on Temporary Abandonment of Wells.--
``(1) In general.--The Secretary--
``(A) may not approve the placement of an oil well
in temporary abandonment status for a period longer
than 3 years; and
``(B) may only approve such placement after
submission and validation of an accompanying economic
analysis verifying the potential for temporary
abandonment to improve operational stability of the oil
well or mitigate environmental impacts of operating the
oil well.
``(2) Extension.--Notwithstanding paragraph (1)(A), the
Secretary may, on a one-time basis for an oil well, extend the
maximum period the oil well may be placed in temporary
abandonment status to 5 years if the Secretary determines such
extension is necessary to ensure operational stability or
environmental safety.''.
<all>Official legislative text sourced from the public record (cached on CivicsHQ).
Official source
View the original bill, actions, and full legislative record on Congress.gov.
Status
In Committee
- 1Introduced
- 2Committee
- 3Floor
- 4Passed
- 5Signed
Timeline reflects current normalized status only. Full action history is not yet stored in the API.
Sponsors
- Rep. Min, Dave [D-CA-47]DHouseCA
Cosponsors
- Rep. Ansari, Yassamin [D-AZ-3]
- Rep. Bonamici, Suzanne [D-OR-1]
- Rep. Brownley, Julia [D-CA-26]
- Rep. Carbajal, Salud O. [D-CA-24]
- Rep. Carson, André [D-IN-7]
- Rep. Casten, Sean [D-IL-6]
- Rep. Chu, Judy [D-CA-28]
- Rep. Dexter, Maxine [D-OR-3]
- Rep. Garcia, Robert [D-CA-42]
- Rep. Grijalva, Adelita S. [D-AZ-7]
- Rep. Huffman, Jared [D-CA-2]
- Rep. Levin, Mike [D-CA-49]
- Rep. Lieu, Ted [D-CA-36]
- Rep. Lofgren, Zoe [D-CA-18]
- Rep. Mullin, Kevin [D-CA-15]
- Rep. Tlaib, Rashida [D-MI-12]
- Rep. Vargas, Juan [D-CA-52]
Votes
Voting records are not yet available for this bill.