Interior Department Releases Draft Guidance for States to Access up to $1.5B to Address Legacy Pollution

Investments to date through the Department’s Orphaned Wells Program Office, created by this historic law, are estimated to have supported 7,213 jobs and contributed over $900 million across the country. 

Orphaned oil and gas wells are polluting backyards, recreation areas, and community spaces across the country. Methane leaking from many of these unplugged wells is a serious safety hazard and is a significant cause of climate change, being more than 25 times as potent as carbon dioxide at trapping heat in the atmosphere. 

Under the Bipartisan Infrastructure Law, several types of funding are available for states, Tribes and the federal government to access a total of $4.7 billion to address orphaned wells across the country. To date, $645 million in grant funding has been allocated from the Department to 25 states, including initial grants to help inventory and assess states’ needs. 

As part of the orphaned well program, the Bipartisan Infrastructure Law provides $1.5 billion for state performance grants, which fall into two categories: Matching Grants and Regulatory Improvement Grants. 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.

By incentivizing states to increase their own spending on plugging and reclaiming orphaned wells, these grants will help address the thousands of orphaned wells across the country that pollute groundwater, threaten local communities and contribute to climate change. In the coming months, information will be made available on how states can apply for Regulatory Improvement Grants. 

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, nearly $150 million of which has been allocated over the past three years.

The public and stakeholders are invited to submit comments on the draft guidance, via email, to orphanedwells@ios.doi.gov, by 11:59 PM PT on March 22, 2024.