What does Preamble of Offshore Leasing Standards and Accountability Act of 2026 do?

This bill amends the Outer Continental Shelf Lands Act. It aims to establish fitness to operate standards for offshore oil and gas operators. The bill also seeks to establish decommissioning escrow accounts for these operators. The bill's purpose is '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.'

What does SHORT TITLE. of Offshore Leasing Standards and Accountability Act of 2026 do?

This bill is formally titled the Offshore Leasing Standards and Accountability Act of 2026.

What does FITNESS TO OPERATE STANDARDS FOR OIL AND GAS OPERATORS ON THE of Offshore Leasing Standards and Accountability Act of 2026 do?

This section amends the Outer Continental Shelf Lands Act to establish fitness to operate standards for offshore oil and gas activities. The Secretary may not issue, extend, or approve transfers of leases, easements, or rights-of-way unless the recipient responsible party is certified as fit to operate. Certification is based on past compliance with environmental and safety laws, financial solvency, and other criteria established by regulation. Recipients must demonstrate compliance with various requirements, including a 10-year history of adhering to environmental and safety laws and possessing an investment-grade credit rating. The Secretary will annually assess certifications and may suspend them, impose penalties, or require decommissioning plans if non-compliance is found. The Secretary is required to issue or revise regulations within one year to establish these standards and processes. The Secretary must submit annual reports to Congress detailing assessments, decommissioning cost estimates, and funds held in decommissioning escrow accounts.

What does DECOMMISSIONING ESCROW ACCOUNTS. of Offshore Leasing Standards and Accountability Act of 2026 do?

This section amends the Outer Continental Shelf Lands Act to establish escrow accounts for decommissioning liability. Leaseholders must make payments to an interest-bearing escrow account to cover the total cost of decommissioning oil and gas infrastructure. The Secretary, or an independent third-party, will calculate and periodically update a probabilistic estimate of decommissioning costs. Initial cost estimates must be calculated before a new lease is issued, and reevaluations are required at least every two years. The Secretary will establish a mandatory payment schedule for these escrow accounts. Lease extensions or transfers are contingent upon payment schedules and outstanding balances. Funds in the escrow account can only be used for decommissioning purposes and require Secretary approval. Interest earned on escrow account funds becomes part of the principal. After decommissioning, any remaining funds are returned to parties who made payments, excluding funds from joint and several liability. If payments are delinquent, the Secretary can raise the royalty rate or suspend the lease.

What does RESTRICTION ON TEMPORARY ABANDONMENT OF WELLS. of Offshore Leasing Standards and Accountability Act of 2026 do?

This section amends Section 5 of the Outer Continental Shelf Lands Act. The Secretary is restricted from approving temporary abandonment of oil wells for longer than 3 years. The Secretary may only approve temporary abandonment after an economic analysis validates potential operational stability or environmental impact mitigation. The Secretary may extend the temporary abandonment period to 5 years on a one-time basis if necessary for operational stability or environmental safety.

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Offshore Leasing Standards and Accountability Act of 2026

Last updated: 6/9/2026 · Introduced: 6/9/2026

Author: Adam Schiff (D-CA)

TL;DR (AI)

This bill establishes fitness-to-operate standards for offshore oil and gas operators, requiring them to demonstrate compliance with environmental and safety laws and financial solvency before leases can be issued or extended.
It mandates the creation of decommissioning escrow accounts where leaseholders must make payments to cover the total cost of decommissioning oil and gas infrastructure, with funds used solely for that purpose.
The bill limits the approval of temporary well abandonments to a maximum of three years, with potential extensions to five years only under specific operational or environmental circumstances.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 3 more.

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