The Department of the Interior has issued draft guidance on how states can apply for up to $40 million each in Regulatory Improvement Grant funding under President Biden’s Bipartisan Infrastructure Law. This funding aims to create jobs and clean up orphaned oil and gas wells across the United States. The announcement also marks the beginning of a public comment period to gather feedback on the draft guidance.
This initiative is part of a larger effort through the Bipartisan Infrastructure Law, which represents the largest investment in addressing legacy pollution in U.S. history, including $4.7 billion allocated for plugging orphaned wells. To date, nearly $1.1 billion in grants have been awarded to 25 states, resulting in the plugging of more than 8,800 orphaned wells since the law's enactment.
“The Department of the Interior is moving quickly to implement this once-in-a-generation investment in tackling legacy pollution, provided through President Biden’s Investing in America agenda,” said Secretary Deb Haaland. “Addressing orphaned wells cuts methane emissions, advances environmental justice for communities that have too long been left behind, and creates jobs. As we prepare to issue another round of grants to help states accomplish this vital work, we are eager to hear from diverse voices on this draft guidance.”
Orphaned oil and gas wells pose significant health and safety threats by contaminating surface and groundwater, releasing toxic air pollutants, polluting drinking water sources, 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.
Under the Bipartisan Infrastructure Law, three types of grants are available: initial grants, formula grants, and performance grants. Approximately $1.5 billion is available in performance grants divided into Matching Grants and Regulatory Improvement Grants categories. In May, final Matching Grant guidance was released allowing states to apply for these funds.
States can now apply for two types of Regulatory Improvement Grants: Plugging Standards Grants and Program Improvement Grants. Each state can receive up to $20 million per grant type for a total of $40 million per state under today's announcement.
The Department’s program aligns with the Biden-Harris administration’s Justice40 Initiative aimed at delivering 40 percent of certain federal investments' benefits to disadvantaged communities overburdened by pollution. As of June 30, 2024, 44% of over 8,800 plugged wells funded by Bipartisan Infrastructure Law were located in disadvantaged communities.
Comments on the draft grant guidance can be submitted via email at orphanedwells@ios.doi.gov until November 12, 2024.
