Interior Makes $775M Available To Plug Abandoned Oil Wells
Many parents often tell their kids that when they are done using something, clean it up. The federal government is emphasizing that same message for orphaned oil and gas wells by providing federal funds to clean up legacy pollution.
The Department of the Interior (DOI) recently made available $775 million for 21 states in Phase 2 formula grants under a new round of funding to clean up harmful methane leaks and reduce environmental and public health risks to surface water and groundwater resources. DOI is making a combination of initial grants, formula grants and performance grants available to tackle this issue.
Plugging orphaned wells supports broader Biden-Harris administration efforts under the U.S. Methane Emissions Reduction Action Plan. In addition, it also supports the administration’s Justice40 Initiative that sets a goal to deliver 40% of the overall benefits of certain federal investments to disadvantaged communities that have been historically marginalized by underinvestment and overburdened by pollution.
Since August 2022, DOI has awarded $565 million in initial grants to 25 states, $444 million in Phase 1 formula grants to 18 states and $2 million in performance grants to one state. DOI recently issued guidance for this new round of funding that encourages states to use project labor agreements and a unionized project workforce for the plugging, remediation and reclamation of wells.
The guidance also requires states to: (1) measure methane emissions from orphaned wells plugged with formula grants; (2) screen for groundwater and surface water impacts caused by orphaned wells; and (3) include their prioritization methods polluting wells creating burdens for nearby disadvantaged communities. The deadline for the 21 eligible states to submit applications under the Formula 2 grant program is Dec. 13, 2024. Additional phases of funding will be available in the future, according to DOI.
States currently eligible under this announcement are Alabama, Alaska, California, Colorado, Illinois, Kansas, Kentucky, Louisiana, Missouri, Montana, Nebraska, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas, Utah, West Virginia and Wyoming.
Join us for our following Thompson Grants events:
Federal Grants Forum State and Local Governments | Sept. 10-11, 2024 | Virtual Event
Nonprofit Legal, Finance, & Grants Conference | Oct. 1-2, 2024 | Arlington, Va.
