Deb Haaland Secretary at U.S. Department of Interior | Official website
The Department of the Interior announced today that $76.4 million from President Biden’s Investing in America agenda will be allocated to Pennsylvania for the cleanup of orphaned oil and gas wells. This funding aims to plug approximately 550 wells over the next five years, creating union jobs, stimulating economic growth, and mitigating environmental and public health risks associated with methane leaks.
This initiative is part of the Bipartisan Infrastructure Law, which includes a $4.7 billion investment to address legacy pollution by plugging orphaned wells. The law provides grants in three categories: initial grants, formula grants, and performance grants. Since August 2022, $565 million in initial grant funding has been awarded to 25 states, including $25 million to Pennsylvania.
Today's announcement is part of an overall $660 million in Phase 1 formula grant funding being released incrementally. As part of this award, Pennsylvania will detect and measure methane emissions from orphaned wells, screen for water impacts, and prioritize cleanup efforts near disadvantaged communities.
“President Biden’s Investing in America agenda is empowering communities across the country to confront long-standing environmental injustices by making a historic investment to plug orphaned oil and gas wells,” said Secretary Deb Haaland. “These investments are good for our climate, for the health of our communities, and for American workers. With this additional funding, Pennsylvania will put more people to work to clean up these toxic sites, reduce methane emissions and safeguard our environment.”
Since the enactment of the Bipartisan Infrastructure Law, over 8,200 orphaned wells have been plugged nationwide, including over 200 in Pennsylvania. These efforts are estimated to have supported over 7,200 jobs and contributed more than $900 million to the economy over the last two fiscal years.
Orphaned oil and gas wells pose significant health and safety threats by contaminating air and water quality through surface water contamination and methane leaks—a potent greenhouse gas contributing significantly to climate change. The plugging program supports broader Biden-Harris administration efforts under the U.S. Methane Emissions Reduction Action Plan.
The Department’s program aligns with the administration's Justice40 Initiative which aims to deliver 40 percent of certain federal investment benefits to marginalized communities affected by pollution.
In addition to initial grants ($775 million) and performance grants ($1.5 billion), states can access $2 billion through multiple phases of formula grants. In August, $775 million was made available in Phase 2 formula grants with Pennsylvania eligible for $114.6 million; applications are due by December 13, 2024.
The Bipartisan Infrastructure Law also allocated $250 million for well site cleanups on public lands like national parks and forests; nearly $150 million has been disbursed so far alongside over $52 million awarded to Tribal communities.
###