H.R. 8542 — Offshore Parity Act of 2026

This section states the purposes of the Act: (1) to provide equity to Louisiana, Mississippi, and Alabama by delegating management of submerged lands in the Gulf of America from 3 geographical miles to 3 marine leagues seaward if the states meet certain conditions not later than five years after enactment; (2) to protect the rights of lessees, operators, and holders of leases, easements, rights-of-use, and rights-of-way when delegating such authority to the states; and (3) to improve fisheries management by authorizing the states to oversee it within the expanded seaward boundaries.

This section amends the Outer Continental Shelf Lands Act (OCSLA) (1) by adding a new section 34 that authorizes the Secretary of the Interior, upon written request by Louisiana, Mississippi, or Alabama before five years after enactment of the Offshore Parity Act of 2026, to delegate relevant OCSLA authorities (except under sections 14 and 20) to the state for granting and managing oil, gas, and other energy leases on the state's "expanded submerged lands" (i.e., outer Continental Shelf area between three geographical miles and three marine leagues seaward of the coastline as of the day before enactment), if the Secretary determines the state has adequate resources, will effectively administer applicable rules, and the delegation imposes no unreasonable burden on lessees; and (2) by defining the "seaward boundary" of these states under OCSLA section 8(g) revenue-sharing provisions as three marine leagues seaward of the coastline (as of the day before enactment). New section 34 requires that (1) delegation excludes any lease or tract not wholly within expanded submerged lands; (2) applies to leases granted by the Secretary before enactment; (3) exempts the state from preparing or maintaining a five-year oil and gas leasing program under OCSLA section 18; (4) allows the state to collect and retain all rentals, royalties, and other sums from leases it grants after enactment (not subject to federal minimum bid or royalty requirements under section 8, or revenue disposition under section 9 or Gulf of Mexico Energy Security Act section 105), while leaving federal revenue disposition unchanged for pre-enactment leases; (5) excludes state-granted leases after enactment from citizen suits, court jurisdiction, and judicial review under OCSLA section 23; (6) requires the state to indemnify the United States for any liability to pre-delegation leaseholders arising from the delegation or state management (with the Secretary authorized to deduct final judgments from state payments under section 8(g)(2)); and (7) directs the Secretary to transfer surety bonds for pre-enactment leases to the state within 90 days, with the state responsible for decommissioning per federal law (or the Secretary if not transferred). (As background, OCSLA authorizes federal leasing of minerals on the outer Continental Shelf beyond state waters; this delegation shifts management of an approximately 7.6-mile-wide strip to these states, enabling them to retain new lease revenues.)

This section extends the seaward boundary of state waters under the Magnuson-Stevens Fishery Conservation and Management Act for Alabama, Louisiana, and Mississippi to 3 marine leagues (i.e., 9 nautical miles) seaward of the coastline (as defined in the Submerged Lands Act and existing as of the day before enactment; from 3 nautical miles generally). (As background, the act generally delegates fishery management authority to states within 3 nautical miles of shore, with federal authority applying in the exclusive economic zone from 3 to 200 nautical miles offshore.) It specifies that the extension does not limit federal authority over highly migratory species (e.g., tunas, swordfish), endangered or threatened species, fishery resources subject to international agreements, the exclusive economic zone beyond extended state waters, or activities related to national security or international obligations.