PRIA Logo™
119-s-4715119th CongressWALLET

Offshore Leasing Standards and Accountability Act of 2026

Sponsored By: Senator Schiff, Adam B. [D-CA]

In Committee

Summary

This bill would create a mandatory _fitness-to-operate_ certification for companies seeking Outer Continental Shelf oil and gas leases and pair it with strict decommissioning and financial safeguards. It ties lease eligibility to environmental compliance, financial solvency, and readiness to clean up wells.

Personalized for You

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 1 costs, 2 mixed.

Annual reporting and program funding

If enacted, the Secretary would report to Congress within one year after issuing fitness regulations and every year after. Reports would list failed fitness assessments by person and lease, enforcement actions, decommissioning cost estimates, and escrow balances. The bill would also authorize $30 million per year for each fiscal year 2027 through 2031 to carry out the fitness-to-operate program.

Mandatory decommissioning escrow accounts

If enacted, each OCS leaseholder would have to pay into an interest-bearing escrow to cover full decommissioning costs. The Secretary would estimate costs before new leases and update estimates at least every 2 years. New leases would require an initial payment equal to the larger of 25% of the average decommission cost at similar depths or 25% of the total proposed cost. Payment schedules must collect total costs within five years. Escrow funds would earn interest, not be used as collateral, and 60-day payment delinquencies could trigger a royalty increase to recover the amount within six months or lease suspension.

Shorter temporary abandonment limits for wells

If enacted, the Secretary would not approve temporary abandonment of an OCS oil well for more than three years. The Secretary could grant one one-time extension to five years for an individual well if needed for operational stability or environmental safety. Approval to place a well into temporary abandonment would require a submitted and validated economic analysis showing the abandonment would improve operational stability or mitigate environmental impacts.

New fitness checks for offshore operators

If enacted, no new OCS lease, extension, or transfer could go to a party unless that party and covered entities are certified fit to operate. The Secretary would issue regulations within one year setting standards. Applicants would need to show past compliance, financial solvency, an investment-grade rating or secured decommissioning funds, and disclose 15 years of incidents and decommissioning liabilities. The Secretary would review certifications yearly and could suspend certification, fine operators, order extra financial assurances, or order decommissioning for noncompliance.

Sponsors & CoSponsors

Sponsor

Schiff, Adam B. [D-CA]

CA • D

Cosponsors

  • Sen. Padilla, Alex [D-CA]

    CA • D

    Sponsored 6/9/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
Back to Legislation