Agency: Department of the Interior
Description:
To provide funding for States to plug, remediate, and reclaim orphaned wells located on State-owned or privately owned land. Funds may also be used to identify undocumented orphaned wells and measure the environmental and public health impacts of orphaned wells, among other related uses.
Bill Section:
40601
New or Existing:
New
Potential Cost:
$4,275,000,000
Timeline:
FY22-30
Implementation Status/Rulemaking:
On January 31, 2022, DOI announced the availability of $650 million in Initial Grants and a draft allocation of $500 million in Phase One Formula Grants: Source
On August 25, 2022, DOI awarded $560 million in Initial State Grants to 24 states: Source
On July 10, 2023. DOI announced $1.93 million in total Formula Grant eligibility for states, including $653 million in Phase One Formula Grants: Source
On January 19, 2023 the Office of Inspector General released a report on Infrastructure Investment and Jobs Act funding to address orphaned wells: Source
On January 12, 2024, DOI awarded the first Phase 1 formula grant, $80 million, to Texas: Source
On February 23, 2024, DOI published draft guidance for states to apply for Performance Grants: Source
A map of DOI IIJA-funded projects, including the Orphaned Well Site Plugging, Remediation, And Restoration, is available Source
TCS Notes:
Initial Grants: $775 million total for initial grants of between $5 million and $25 million to each qualifying State that applied before May 14, 2022.
Formula Grants: $2 billion in total formula funding available to States that submitted a Notice of Intent by December 30, 2021.The funding formula will account for the number of documented orphaned wells in each states, the estimated costs to reclaim documented orphaned wells, and job losses in the oil and gas industry in the State between March 1, 2020 and November 15, 2021.
Performance Grants: $1.5 billion in discretionary grants to States that have improved the regulation of oil and gas wells within the State over the last 10 years or that have used State funds for well plugging, remediation, and reclamation. States must maintain eligible laws or regulations for 10 years after receipt of the grant. These grants are also referred to as Regulatory Improvement Grants (for States that improve the regulation of oil and gas wells) and Matching Grants (for States that increase their own spending).
Under this program, States have 1 years to obligate Initial Grant funds and 5 years to obligate Formula Grant funds.