$775 million from “Investing in America” ​​agenda for states to plug neglected oil and gas wells

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Bipartisan infrastructure bill funding tackles legacy pollution and boosts economic growth across the country

WASHINGTON — The Department of the Interior today announced the availability of $775 million to 21 states to clean up legacy pollution through President Biden’s Investing in America agenda. These historic funds to clean up neglected oil and gas wells and drilling sites — of which more than $1 billion has already been distributed — will create good-paying jobs, spur economic growth, eliminate harmful methane leaks, and reduce environmental and public health risks to surface and groundwater resources critical to American communities and ecosystems.

Through the Bipartisan Infrastructure Law, the Department is making the largest investment in tackling old pollution in U.S. history, including $4.7 billion to plug orphan wells. This includes grants to states in three categories: initial grants, formula grants, and performance grants.

Connecting is in progress Across the country, and since the passage of the Bipartisan Infrastructure Law, states have plugged more than 8,200 orphaned wells. Nationwide, investments through the Department’s Orphaned Well Program Office are estimated to have supported more than 7,200 jobs and contributed more than $900 million to the economy over the past two fiscal years.

“President Biden’s Investing in America agenda empowers us to address longstanding environmental injustices by making a historic investment to close neglected water wells across the country,” he said. Secretary Deb Haaland“These investments are good for our climate, for the health of our communities, and for American workers. With this third round of additional funding, states will put more people to work to clean up these toxic sites, reduce methane emissions, and protect our environment.”

Abandoned oil and gas wells are polluting backyards, recreation areas and community spaces across the country. Many of these wells pose serious threats to health and safety by contaminating surface and groundwater, releasing toxic air pollutants and leaking methane – a “super pollutant” that is a leading cause of climate change and is many times more powerful than carbon dioxide in trapping heat in the atmosphere. Closing orphaned wells supports broader efforts by the Biden-Harris administration under the U.S. Methane Emissions Reduction Action Plan. This effort also advances the Justice40 initiative which aims to deliver 40 percent of the total benefits of certain federal investments to underserved communities that have historically been marginalized by underinvestment and overburdened by pollution.

Since August 2022the Department has awarded $565 million in initial grants to 25 states, $444 million in Phase 1 formula grants to 18 states, and a $2 million performance grant to one state. The Phase 2 Formula Grant accompaniment Released today marks the start of the next application window for states to apply for an estimated $775 million in formula grant funds. The guidance encourages states to use project labor agreements and a union project staff for well plugging, remediation and reclamation, and requires states to:

• Measure methane emissions from abandoned wells that have been plugged using subsidy formulas.
• Monitor the effects of abandoned wells on groundwater and surface water.
• Please explain how they use their prioritization methods to prevent well contamination and the burden this places on disadvantaged communities nearby.

The 21 states eligible for a Phase 2 formula grant have until December 13, 2024, to submit their applications. Additional funding phases will be available in the future.

In addition to providing historic funding to states, the Bipartisan Infrastructure Act allocated $250 million to Clean up well locations in national parks, national forests, national wildlife refuges, and other public lands, with nearly $150 million allocated over the past three years. This funding for states and federal land managers is in addition to the nearly $40 million allocated to Tribal communities from September 2023.

Total and Phase 2 State Formula Subsidy Admission Requirements

*The amount a state receives in Phase 1 determines how much the state is eligible to apply for in Phase 2. Kansas, Oklahoma, and Pennsylvania's Phase 1 applications are still being reviewed. Arizona, Arkansas, Indiana, Michigan, and Mississippi received their entire formula grant eligibility in Phase 1 and are therefore not eligible for additional funding in Phase 2

** the range of total Formula Grant funding available to states in Phase 2.

Thanks to US Department of the Interior.