Bill · S. 4715· Senate(119-S-4715)
Offshore Leasing Standards and Accountability Act of 2026
- Introduced
- 6/9/2026
- Last activity
- 7/15/2026 — Committee on Energy and Natural Resources Subcommittee on Public Lands, Forests, and Mining. Hearings held.
- Sponsored by
- Adam Schiff
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
This bill, the "Offshore Leasing Standards and Accountability Act of 2026," aims to amend the Outer Continental Shelf Lands Act. It establishes "fitness to operate" standards that oil and gas operators must meet to receive or maintain leases. The legislation also creates mandatory interest-bearing escrow accounts to fund the decommissioning of offshore infrastructure. Additionally, it places restrictions on how long an oil well can remain in temporary abandonment status. The goal is to ensure operators have the financial capacity and safety record required to handle their environmental obligations.
Yes· 3 of 4
Does this better protect air, water and wildlife?+8
The bill establishes strict fitness standards and mandatory escrow accounts to ensure proper decommissioning of offshore infrastructure.
Does this make the government pay for what it commits to?+6
The bill mandates interest-bearing escrow accounts to ensure funds are available for environmental decommissioning.
Does this make what the government does easier for the public to see?+5
The bill requires the Secretary to submit annual reports to Congress regarding compliance and decommissioning costs.
The opposite
Would business owners be better off under this?-7
The bill imposes significant new financial requirements, including mandatory escrow payments and strict fitness-to-operate standards.
Who it would affect, and how
Potential Positive Impacts for People
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Ensuring Financial Responsibility for Cleanup: The bill requires operators to make payments into an interest-saring escrow account to fully meet the total cost of decommissioning infrastructure (Section 3, subsection k-1). This ensures funds are available to end operations, plug wells, and return areas to required environmental conditions (Section 2, subsection e-2).
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Holding Unsafe or Non-Compliant Operators Accountable: The Secretary is prohibited from issuing or extending leases unless the party is certified as "fit to operate" (Section 2, subsection a). This certification is based on past compliance with environmental and safety laws, as well as financial solvency (Section 2, subsection b-1).
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Mitigating Environmental and Safety Risks: Operators must demonstrate the capacity to maintain up-to-date risk mitigation technologies, environmental protection measures, and worker safety measures, including effective blow-out preventer systems (Section 2, subsection b-2-A-viii-II).
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Preventing Long-term Abandoned Wells: The bill limits the time an oil well can stay in "temporary abandonment" status to a maximum of 3 years, with a possible one-time extension to 5 years under specific circumstances (Section 4, subsection l-1). This is intended to ensure operational stability or mitigate environmental impacts.
Potential Negative Impacts for People
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Increased Financial Burdens on Operators: The bill requires significant upfront payments into escrow accounts; for example, a new lease may require an initial payment of 25 percent of the average cost to decommission similar infrastructure or 25 percent of the total projected costs (Section 3, subsection k-3-D).
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Strict Requirements for Lease Approval: To be certified as fit to operate, companies must meet several stringent criteria, such as having an investment-grade credit rating and not having filed for bankruptcy within the last 10 years (Section 2, subsection b-2-A-vi and vii).
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Strict Penalties for Non-Compliance: If an operator fails to make required payments into their escrow account, the Secretary can raise the royalty rate for that lease to recover funds or suspend the lease entirely (Section s, subsection k-5).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Environment Energy And Infrastructure
- Improves Environmental Protections+8
- Economy And Finance
- Improves Fiscal Responsibility+6
- Governance And Ideology
- Improves Government Transparency+5
- Demographic And Interest Groups
- Good For Union Workers+3Good For Business Owners-7
- 7/15/2026
- Committee on Energy and Natural Resources Subcommittee on Public Lands, Forests, and Mining. Hearings held.
- 6/9/2026
- Read twice and referred to the Committee on Energy and Natural Resources.
- 1 Cosponsor added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Alex PadillaDemocrat · California