S. 5378

119 S5378 IS: Outer Continental Shelf Lease Restoration Act of 2026
 U.S. Senate
 2026-08-07
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  2d Session  S. 5378  IN THE SENATE OF THE UNITED STATES   August 7, 2026   Mr. King  (for himself and  Mr. Padilla ) introduced the following bill; which was read twice and referred to the  Committee on Energy and Natural Resources    A BILL
To provide for the disposition of surrendered offshore wind energy lease areas, and for other purposes.
1.
Short title
This Act may be cited as the   Outer Continental Shelf Lease Restoration Act of 2026  .
2.
Disposition of surrendered offshore wind energy lease areas
(a)
Definitions
In this Act:
(1)
Adjacent lease
The term  adjacent lease  means—
(A)
a covered lease that shares not less than 1 boundary point with a terminated lease area; or
(B)
a covered lease acquired by a leaseholder during the same lease sale as the terminated lease area.
(2)
Covered entity
The term  covered entity , with respect to the surrender of a covered lease, means a lessee (including any parent, subsidiary, successor, or affiliate of that lessee) that was party to the surrender of that covered lease.
(3)
Covered lease
The term  covered lease  means a lease issued pursuant to section 8(p) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1337(p) ) for wind energy development.
(4)
OCS block
The term  OCS block  means a block, or a portion of a block, as delineated on the official Outer Continental Shelf protraction diagrams and lease maps maintained by the Marine Minerals Administration.
(5)
Per-acre price
The term  per-acre price , with respect to a covered lease, means the amount equal to the per-acre minimum bid price outlined in the Final Sale Notice for a covered lease.
(6)
Secretary
The term  Secretary  means the Secretary of the Interior.
(7)
Surrender
The term  surrender  means the termination, cancellation, or relinquishment, whether characterized as voluntary or otherwise, of a covered lease, including termination effected through a settlement agreement, memorandum of agreement, or other negotiated instrument between a lessee and the Secretary occurring on or after January 20, 2025.
(8)
Terminated lease area
The term  terminated lease area  means acreage on the Outer Continental Shelf the use or potential use of which for wind energy development was terminated by the surrender of a covered lease.
(b)
Ratification of prior environmental reviews
(1)
In general
Congress ratifies and approves the environmental reviews, analyses, and consultations conducted in connection with the designation of each terminated lease area as a wind energy area and the issuance of the applicable surrendered covered lease, including any environmental impact statement, environmental assessment, record of decision, and consultation required under—
(A)
section 7 of the Endangered Species Act of 1973 ( 16 U.S.C. 1536 ); or
(B)
the Marine Mammal Protection Act of 1972 ( 16 U.S.C. 1361 et seq. ).
(2)
Effect
The reviews, analyses, and consultations described in paragraph (1) are considered to satisfy all requirements of the National Environmental Policy Act of 1969 ( 42 U.S.C. 4321 et seq. ) and any other provision of Federal law applicable to the issuance or vesting of a covered lease under subsection (c), and no additional review, analysis, or consultation shall be required as a condition of, or to give effect to, a conveyance pursuant to this Act.
(3)
Project-level review preserved
Nothing in this subsection affects the environmental review, analysis, or consultation otherwise required in connection with the review and approval of a site assessment plan, construction and operations plan, or general activities plan submitted for a covered lease vested pursuant to this Act.
(c)
Conveyance to holders of adjacent leases
(1)
Offer
Effective on the date of enactment of this Act (or, for the surrender of a covered lease occurring after that date of enactment, on the applicable date of surrender), each holder of an adjacent lease (referred to in this subsection as an  adjacent leaseholder ) shall gain the right to acquire an applicable terminated lease area, or the apportioned share of that terminated lease area as determined under paragraph (4), at a price equal to the per-acre price multiplied by the acreage of the offered terminated lease area.
(2)
Issuance and vesting
(A)
Issuance
On submission of the amount described in paragraph (1) by an adjacent leaseholder to the Treasury of the United States, the Secretary shall issue a lease of the terminated lease area, or the apportioned share of that terminated lease area as determined under paragraph (4), to the applicable adjacent leaseholder without any further action, approval, execution, or issuance required by the Secretary.
(B)
Vesting
A lease issued to an applicable leaseholder under subparagraph (A) shall be considered vested in that applicable leaseholder.
(3)
Terms
A lease issued and vested under paragraph (2) shall be subject to the same terms, conditions, and stipulations as are applicable to the applicable adjacent lease of the adjacent leaseholder, with a term commencing on the date of vesting under that paragraph.
(4)
Apportionment among multiple adjacent leaseholders
(A)
In general
If a terminated lease area shares a boundary with more than 1 adjacent lease—
(i)
each OCS block within the terminated lease area shall be assigned to the adjacent lease whose boundary is nearest to the geographic center of that OCS block, determined by a line of equidistance where a block lies equidistant from 2 or more adjacent leases;
(ii)
the apportioned share offered to each adjacent leaseholder shall consist of the OCS blocks assigned under clause (i); and
(iii)
each adjacent leaseholder may exercise the right to acquire the applicable OCS blocks assigned under clause (i) independently of any other adjacent leaseholder.
(B)
Unclaimed share
If an adjacent leaseholder does not submit payment of the amount described in paragraph (1), the terminated lease area or apportioned share of that terminated lease area offered to that adjacent leaseholder shall be made available and disposed of pursuant to subsection (d).
(d)
Disposition of unclaimed areas
(1)
In general
A terminated lease area or the apportioned share of a terminated lease area that is not issued and vested under subsection (c) shall be returned to the inventory of areas available for leasing pursuant to section 8(p) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1337(p) ).
(2)
Lease sale
(A)
In general
Not later than 90 days after a terminated lease area or apportioned share of a terminated lease area is returned to inventory under paragraph (1), the Secretary shall offer the terminated lease area or apportioned share of a terminated lease area for lease.
(B)
Terms and conditions
A terminated lease area or apportioned share of a terminated lease area offered under subparagraph (A) shall be offered with the same terms and conditions, including financial terms, under which the area was most recently offered before the surrender of the applicable covered lease.
(3)
Ineligibility of covered entities
A covered entity that has surrendered a terminated lease area is ineligible to acquire, bid for, or hold any interest in that terminated lease area pursuant to the conveyance or disposition requirements of subsection (c), this subsection, or any other applicable law.
(e)
Limitations on oil and gas leasing and permitting
(1)
In general
Except as provided in paragraph (2), the Secretary may not issue any new oil or gas lease under section 8(a) of the Outer Continental Shelf Lands Act ( 43 U.S.C. 1337(a) ), or issue any new permit for oil or gas exploration, development, or production activity on the Outer Continental Shelf pursuant to that Act, until—
(A)
each conveyance of a terminated lease area for which payment has been made under subsection (c) has been given full effect; and
(B)
the Secretary has offered under subsection (d) every terminated lease area or apportioned share of a terminated lease area that was unclaimed.
(2)
Exception
The limitations described in paragraph (1) shall not apply to the extent necessary to comply with an obligation under a lease or permit issued before the date of enactment of this Act.
(f)
Effect on settlement agreements
(1)
In general
A conveyance under subsection (c) or a disposition under subsection (d) shall not—
(A)
reinstate any covered lease held by a covered entity before the surrender of the covered lease;
(B)
restore any right of a covered entity in a terminated lease area; or
(C)
entitle a covered entity to any additional payment.
(2)
Consideration
Nothing in this Act shall require the return of any consideration paid by a covered entity in connection with the surrender of a covered lease.
(g)
Judicial review
(1)
In general
No court shall have jurisdiction to review any conveyance, vesting, apportionment, or disposition under this Act.
(2)
Jurisdiction
(A)
In general
The United States Court of Appeals for the District of Columbia Circuit shall have original and exclusive jurisdiction over any claim alleging—
(i)
the invalidity of this Act; or
(ii)
that an action taken pursuant to this Act is beyond the scope of authority conferred by this Act.
(B)
Deadline
A claim described in subparagraph (A) shall be filed by not later than 90 days after the date of enactment of this Act, or the date that the challenged action is taken, as applicable.