Offshore Leasing Standards and Accountability Act of 2026
Sponsored By: Representative Min, Dave [D-CA-47]
Introduced
Summary
A new fitness-to-operate certification regime would block issuance, transfers, or extensions of offshore oil and gas leases unless operators meet strict safety, environmental, and financial standards. The proposal also would require leaseholders to fully fund decommissioning in an interest-bearing escrow and would limit temporary well abandonment to three years, with a one-time five-year extension allowed with validated economic justification.
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- Operators and parent companies would need to demonstrate no environmental or safety violations in the prior 10 years, an investment-grade credit rating, no recent bankruptcies, and enough financial capacity to cover decommissioning, staffing, and risk-mitigation.
- Leaseholders would fund an interest-bearing escrow that must reach the estimated total decommissioning costs within five years. Initial payments must equal at least 25% of a typical-lease estimate or 25% of the proposed facility costs, and cost estimates must be reevaluated at least every two years.
- The Secretary would gain enforcement tools to suspend certifications and leases, raise royalty rates to recover delinquent escrow payments after 60 days, and provide annual reports to Congress on compliance, enforcement, and decommissioning cost estimates.
*Authorizes $30.0 million per year for fiscal years 2027–2031 to implement the fitness regime, increasing federal spending by that amount over those years.*
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 1 benefits, 1 costs, 2 mixed.
Mandatory decommissioning escrow payments
If enacted, leaseholders would have to put money into interest-bearing escrow accounts to pay full decommissioning costs. Before a new lease or plan approval, the first payment would be the larger of 25% of the average decommissioning cost for similar-depth leases or 25% of the total decommissioning cost for the proposed infrastructure. The Secretary would set schedules so escrow is fully funded within five years and would require updated cost estimates at least every two years. If payments are more than 60 days late, the Secretary could raise royalty rates to recover delinquent amounts within six months or suspend the lease.
Funding for fitness program setup
If enacted, the bill would authorize $30 million per year for fiscal years 2027 through 2031 to set up and run the Interior Department's fitness-to-operate certification program. The money would help the agency write rules, process applications, and do oversight related to the new certification requirements. This funding is specifically for implementing the fitness-to-operate section of the bill.
New fitness-to-operate certification rules
If enacted, the Interior Secretary would have one year to write rules for a fitness-to-operate certificate for anyone getting, extending, or transferring an offshore lease, easement, or right-of-way. Applicants would have to disclose decommissioning liabilities (domestic and global), past inspections, non-producing wells, and a 15-year safety and spill record. Minimum qualifications would include a 10-year clean history for violations and bankruptcies, no unpaid rents or royalties, and an investment-grade credit rating for the recipient and any parent. The Secretary would verify certificates annually and could suspend certificates or leases, impose fines, or require extra financial assurances for noncompliance.
Shorter limits on idle offshore wells
If enacted, temporary abandonment of an offshore well would generally be limited to three years unless the operator submits an economic analysis that the Secretary validates. The Secretary could allow one one-time extension per well to a maximum of five years if a validated analysis shows the extension is needed for safety or operational stability. These limits would make long-term idle wells less common and require operators to justify longer holds with a validated economic case.
Sponsors & CoSponsors
Sponsor
Min, Dave [D-CA-47]
CA • D
Cosponsors
Rep. Huffman, Jared [D-CA-2]
CA • D
Sponsored 5/26/2026
Rep. Ansari, Yassamin [D-AZ-3]
AZ • D
Sponsored 5/26/2026
Rep. Grijalva, Adelita S. [D-AZ-7]
AZ • D
Sponsored 5/26/2026
Rep. Dexter, Maxine [D-OR-3]
OR • D
Sponsored 5/26/2026
Rep. Brownley, Julia [D-CA-26]
CA • D
Sponsored 6/2/2026
Rep. Lieu, Ted [D-CA-36]
CA • D
Sponsored 6/2/2026
Rep. Carbajal, Salud O. [D-CA-24]
CA • D
Sponsored 6/2/2026
Rep. Tlaib, Rashida [D-MI-12]
MI • D
Sponsored 6/2/2026
Rep. Levin, Mike [D-CA-49]
CA • D
Sponsored 6/10/2026
Rep. Mullin, Kevin [D-CA-15]
CA • D
Sponsored 6/10/2026
Rep. Garcia, Robert [D-CA-42]
CA • D
Sponsored 6/25/2026
Rep. Lofgren, Zoe [D-CA-18]
CA • D
Sponsored 6/25/2026
Rep. Carson, André [D-IN-7]
IN • D
Sponsored 7/13/2026
Rep. Chu, Judy [D-CA-28]
CA • D
Sponsored 7/13/2026
Rep. Bonamici, Suzanne [D-OR-1]
OR • D
Sponsored 7/15/2026
Rep. Vargas, Juan [D-CA-52]
CA • D
Sponsored 7/21/2026
Rep. Casten, Sean [D-IL-6]
IL • D
Sponsored 7/27/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov