BRIDGE Production Act of 2025
The BRIDGE Production Act of 2025 would aggressively ramp up offshore oil and gas leasing on the Outer Continental Shelf (OCS). It requires the Interior Department to conduct a minimum of 26 offshore lease sales over 10 years (20 in the Gulf of Mexico region and 6 in the Cook Inlet Planning Area in Alaska), sets specific timing and acreage targets for each sale, and creates new incentives and streamlined approvals intended to speed production. The bill also revises royalty structures to reduce baseline rates (with a cap), introduces a First Production Incentive Pilot Program to reward early production, and establishes hard enforcement mechanisms (including court-ordered sales and a special master) if the Secretary fails to meet requirements. It further aims to prevent delays by mandating a continuous leasing program and a minimum number of lease sales beginning in 2035, with various provisions to streamline environmental reviews and regulatory processes for these lease actions. In short, the bill seeks to lock in a rapid, high-volume offshore leasing schedule, reduce some royalty protections, speed up the path from lease to production, and limit judicial and regulatory obstacles that could delay offshore oil and gas development, while also specifying certain environmental review requirements for streamlined actions.
Key Points
- 1Offshore lease sale mandate and schedule
- 2- Requires not fewer than 26 offshore lease sales over 10 years (20 in the Gulf of Mexico region, 6 in the Cook Inlet Planning Area, Alaska).
- 3- Sets specific dates for Gulf and Alaska lease sales and requires minimum acreage offerings (Gulf: at least 80 million acres or all remaining unleased acres; Cook Inlet: at least 1 million acres or all remaining unleased acres).
- 4- Definitional scope for where sales occur and which planning-area boundaries apply; includes a rule that a high enough bid would trigger issuance of a lease within 90 days of sale.
- 5Royalty structure changes and incentives
- 6- amends royalty rate provisions to set a new floor of 12.5% (instead of higher floors) while keeping the maximum at 18.75%.
- 7- creates a First Production Incentive Pilot Program: a royalty reduction to 10% for the first 7 years of production if first production occurs within 3 years of lease issuance; capped at no more than 25 leases; requires an application within 60 days after milestone; requires a report to Congress by end of 2030.
- 8Compliance and regulatory streamlining for these lease actions
- 9- During a 2-year window after enactment, certain regulatory and environmental reviews (as described in the act) are deemed sufficient to satisfy applicable federal requirements (Endangered Species Act, Marine Mammal Protection Act, National Environmental Policy Act, National Historic Preservation Act, and Coastal Zone Management Act consistency determinations) for Gulf lease sales and related activities.
- 10- A provision also removes or limits certain constraints (e.g., Balaenoptera ricei protections) for Gulf operations to avoid delaying offshore oil and gas activities.
- 11Enforcement mechanisms and oversight
- 12- If the Interior Secretary fails to hold a required lease sale, affected bidders can sue to compel action; courts can order the sale within a 120-day window and may appoint a special master to oversee compliance.
- 13- Establishes timeframes, remedies, and rules around penalties and extensions for noncompliance, with limited opportunities for delay.
- 14Continuous leasing program
- 15- Amends Section 18 to require a continuous 5-year leasing program with final programs approved at least 120 days before the current program expires.
- 16- Requires a draft proposed program 24 months before expiration and sets a default schedule if the subsequent five-year program is delayed, including:
- 17- Gulf of Mexico: two region-wide lease sales per year.
- 18- Alaska: five region-wide lease sales over the period.
- 19- Default program would streamline environmental reviews (deemed sufficient) and require expedited bid acceptance and lease issuance (within 90 days after a sale).
- 20Minimum lease sales requirement (from 2035)
- 21- Beginning January 1, 2035, leasing programs must provide at least 15 offshore lease sales over a 5-year period.
- 22- If a court finds a program noncompliant, a replacement schedule would kick in:
- 23- Gulf of Mexico: 2 lease sales per year (10 total) with all unleased acreage in the Gulf, using similar terms to a prior Gulf-wide sale but with a cap on net royalty at 18.75%.
- 24- Alaska: 5 region-wide Alaska sales across the 5-year period with all unleased acreage and terms aligned to Cook Inlet sale standards, but with a net royalty cap of 16.75%.
- 25- Streamlining provisions would apply to these replacement sales as well (no additional NEPA or ESA analyses required; waivers allowed; 90-day bid-acceptance rule).