Deb Haaland Secretary at U.S. Department of Interior | Official website
The Department of the Interior has announced the allocation of $775 million to 21 states for the cleanup of orphaned oil and gas wells. This funding is part of President Biden’s Investing in America agenda, which aims to address legacy pollution, create jobs, and mitigate environmental risks. Over $1 billion has already been distributed under this initiative.
Through the Bipartisan Infrastructure Law, the Department is making a historic investment in tackling legacy pollution, including $4.7 billion dedicated to plugging orphaned wells. The funds are distributed through initial grants, formula grants, and performance grants.
Since the enactment of the Bipartisan Infrastructure Law, more than 8,200 orphaned wells have been plugged nationwide. Investments from the Department’s Orphaned Well Program Office are estimated to have supported over 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 is enabling us to confront long-standing environmental injustices by making a historic investment to plug orphaned wells throughout the country,” 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 safeguard our environment.”
Orphaned oil and gas wells pose significant health and safety threats by contaminating surface and groundwater, releasing toxic air pollutants, and leaking methane—a potent greenhouse gas contributing to climate change. Plugging these wells supports broader efforts under the U.S. Methane Emissions Reduction Action Plan and advances President Biden’s Justice40 Initiative.
Since August 2022, $565 million in initial grants have been awarded to 25 states; $444 million in Phase 1 formula grants have gone to 18 states; and one state received a $2 million performance grant. The Phase 2 Formula Grant guidance released today opens applications for an estimated $775 million in formula grant funds. States are encouraged to use project labor agreements and unionized workforces for well plugging activities.
The 21 eligible states must submit their applications by December 13, 2024. Additional phases of funding will be available in future cycles.
In addition to state funding, the Bipartisan Infrastructure Law allocated $250 million for cleaning up well sites on federal lands such as national parks and wildlife refuges—nearly $150 million has been allocated over three years. Tribal communities also received close to $40 million in September 2023.