Offshore Leasing Standards and Accountability Act of 2026
- Bill Number
- H.R. 9034
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Energy
- Status
- Introduced
- Latest Action
- 2026-05-26: Referred to the House Committee on Natural Resources.
- Last Updated
- 2026-06-30T20:33:54Z
AI-Generated Summary
Offshore Leasing Standards and Accountability Act of 2026
Purpose
This legislation amends the Outer Continental Shelf Lands Act to create stricter standards for companies seeking to operate offshore oil and gas leases. It aims to ensure operators are financially stable and compliant with safety and environmental rules, while requiring dedicated funds for the eventual cleanup and removal of oil and gas infrastructure.
Key Provisions
- Fitness to Operate Standards: The Secretary of the Interior must certify companies as "fit to operate" before issuing, extending, or transferring leases. Certification requires a 10-year record of compliance with environmental and safety laws, no recent bankruptcy filings, an investment-grade credit rating for the company and parent, full financial capacity to cover decommissioning costs, and detailed disclosures on liabilities, incidents, and well status.
- Decommissioning Escrow Accounts: Lease holders must pay into government-managed, interest-bearing escrow accounts to cover the full estimated cost of ending operations, plugging wells, and restoring sites. Payments follow a schedule, with at least 25% upfront for new leases or plans, and full funding required within five years. Funds can only be used for approved decommissioning and cannot serve as collateral.
- Restrictions on Temporary Well Abandonment: Wells cannot remain in temporary abandonment status for more than three years (extendable once to five years) without an economic analysis showing benefits for stability or environmental protection.
- Enforcement and Reporting: Noncompliance can lead to lease suspension, fines, required additional financial assurances, or orders to begin decommissioning. The Secretary must issue annual reports to Congress on compliance, cost estimates, and escrow balances. Regulations must be issued within one year, with $30 million authorized annually for implementation.
Significant Changes to Existing Law
The bill adds new sections (34, 5(k), and 5(l)) to the Outer Continental Shelf Lands Act. It introduces mandatory fitness certification tied to lease approvals, replaces or supplements existing financial assurance requirements with escrow accounts for decommissioning, and imposes time limits on temporary well abandonment. These represent expansions beyond prior rules on lease transfers and environmental compliance.
Potential Impacts
- Government Agencies: Increases workload for the Department of the Interior in verifying certifications, calculating costs, managing escrow accounts, and conducting annual reviews. Additional funding supports these duties.
- Citizens and Environment: Aims to reduce risks of unfunded cleanups, oil spills, and safety incidents by ensuring operators have resources and a clean compliance history.
- International Relations: No direct effects specified, though stricter U.S. standards could influence global offshore practices or trade in energy resources.
- Industry Operations: Operators face higher upfront costs, ongoing payments, and potential barriers to lease activities if they cannot meet certification or funding thresholds.
Main Stakeholders Affected
- Offshore oil and gas companies and their parent/subsidiary entities.
- The Department of the Interior and its bureaus responsible for leasing and oversight.
- Previous lease holders subject to joint liability for decommissioning.
- Coastal communities and workers potentially impacted by safer operations or changes in industry activity.
- Congress, through required reporting.
Notable Legal, Constitutional, or Political Implications
The bill strengthens federal regulatory authority over Outer Continental Shelf activities by linking lease rights to ongoing compliance and financial security. It may raise questions about the scope of agency discretion in certifications and cost estimates, as well as the balance between industry access and environmental protections. No constitutional issues are addressed in the text.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (12)
Rep. Huffman, Jared [D-CA-2], Rep. Ansari, Yassamin [D-AZ-3], Rep. Grijalva, Adelita S. [D-AZ-7], Rep. Dexter, Maxine [D-OR-3], Rep. Brownley, Julia [D-CA-26], Rep. Lieu, Ted [D-CA-36], Rep. Carbajal, Salud O. [D-CA-24], Rep. Tlaib, Rashida [D-MI-12], Rep. Levin, Mike [D-CA-49], Rep. Mullin, Kevin [D-CA-15], Rep. Garcia, Robert [D-CA-42], Rep. Lofgren, Zoe [D-CA-18]
Recent Actions
- 2026-05-26: Referred to the House Committee on Natural Resources.
- 2026-05-26: Introduced in House
- 2026-05-26: Introduced in House
Bill Versions
- Offshore Leasing Standards and Accountability Act of 2026 — issued 2026-05-26 — PDF (22 pages)