Deb Haaland Secretary at U.S. Department of Interior | Official website
Secretary of the Interior Deb Haaland announced a $35.2 million investment through President Biden’s Investing in America agenda to continue reclaiming and restoring orphaned oil and gas wells in California. The announcement was made during the Biden-Harris administration’s Infrastructure Week. The funding is expected to help plug and remediate 206 high-risk orphaned oil and gas wells, decommission 47 production facilities, and remove approximately 70,000 feet of associated pipelines.
Secretary Haaland also unveiled new matching grant guidance for states to access $30 million each in additional funding for orphaned well clean up. Orphaned oil and gas wells have been identified as significant sources of pollution, contaminating surface and groundwater, releasing toxic air pollutants, and leaking methane – a potent greenhouse gas. The efforts to plug these wells are part of broader Biden-Harris administration initiatives under the U.S. Methane Emissions Reduction Action Plan.
The Department of the Interior has allocated $4.7 billion from the Bipartisan Infrastructure Law towards tackling legacy pollution, including plugging orphaned wells. This includes grants to states in three categories: initial grants, formula grants, and performance grants. Since August 2022, the Department has awarded $565 million in initial grant funding to 25 states, including $25 million to California.
“President Biden’s Investing in America agenda is creating jobs and revitalizing local economies while cleaning up harmful legacy pollution sites throughout the country,” said Secretary Deb Haaland. “With this historic funding, states like California are making significant progress in plugging wells and protecting communities."
Today's award for California is part of an overall $660 million in phase one formula grant funding being released on a rolling basis. As part of the award, California will detect and measure methane emissions from orphaned oil and gas wells, screen for groundwater and surface water impacts, and prioritize cleaning up wells near overburdened communities.
The Bipartisan Infrastructure Law also provides $1.5 billion for state performance grants, which fall into two sub-categories: matching grants and regulatory improvement grants. Secretary Haaland announced final guidance to states on how to apply for the up to $30 million in matching grant funding available to each state.
Eligible states may receive a matching grant from the Department equal to what the state commits to spend each fiscal year if that amount is greater than the average spent by the state between 2010 and 2019. The guidance released today is a result of robust engagement with state partners and public stakeholders.
Since the enactment of the Bipartisan Infrastructure Law, states have plugged more than 7,700 orphaned wells and reduced approximately 11,530 metric tons of potential methane emissions. In addition to providing historic funding to states, the Bipartisan Infrastructure Law allocated $250 million to clean up well sites in national parks, national forests, national wildlife refuges, and other public lands.
