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
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.