[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2415 Reported in House (RH)]
<DOC>
Union Calendar No. 464
117th CONGRESS
2d Session
H. R. 2415
[Report No. 117-645]
To amend the Energy Policy Act of 2005 to require the Secretary of the
Interior to establish a program to permanently plug, remediate, and
reclaim orphaned wells and the surrounding lands and to provide funds
to States and Tribal Governments to permanently plug, remediate, and
reclaim orphaned wells and the surrounding lands, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 8, 2021
Ms. Leger Fernandez (for herself, Mr. Grijalva, Mr. Lowenthal, Ms.
Castor of Florida, and Mr. Michael F. Doyle of Pennsylvania) introduced
the following bill; which was referred to the Committee on Natural
Resources
December 15, 2022
Additional sponsors: Mr. Cartwright, Ms. DeGette, Mr. Cohen, Ms.
Barragan, Ms. Velazquez, Ms. Norton, Ms. Tlaib, Mr. Espaillat, Mr.
Soto, Mr. Huffman, Mr. Blumenauer, Mrs. Napolitano, Mr. Welch, Mr.
Levin of California, Ms. Ross, Mr. Garcia of Illinois, Ms. Porter, Mr.
Pocan, Mr. Sires, Mr. Jones, Mr. Yarmuth, Ms. Newman, Ms. Dean, Mr.
Scott of Virginia, Mr. Carbajal, Mr. McNerney, Mr. Carson, Ms.
Stansbury, Mr. Carter of Louisiana, and Mr. Levin of Michigan
December 15, 2022
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on April
8, 2021]
_______________________________________________________________________
A BILL
To amend the Energy Policy Act of 2005 to require the Secretary of the
Interior to establish a program to permanently plug, remediate, and
reclaim orphaned wells and the surrounding lands and to provide funds
to States and Tribal Governments to permanently plug, remediate, and
reclaim orphaned wells and the surrounding lands, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Orphaned Well Cleanup and Jobs Act
of 2021''.
SEC. 2. ORPHANED WELL SITE PLUGGING, REMEDIATION, AND RESTORATION.
(a) In General.--Section 349 of the Energy Policy Act of 2005
(Public Law 109-58; 42 U.S.C. 15907) is amended to read as follows:
``SEC. 349. ORPHANED WELL SITE PLUGGING, REMEDIATION, AND RESTORATION.
``(a) Federal Program.--
``(1) Establishment.--The Secretary, in cooperation with
the Secretary of Agriculture and affected Indian Tribes, shall
establish a program not later than 180 days after the date of
enactment of this section to permanently plug orphaned wells
and remediate and reclaim orphaned wells located on land
administered by the land management agencies within the
Department of the Interior and the Department of Agriculture.
``(2) Activities.--The program under paragraph (1) shall--
``(A) include a means of identifying,
characterizing, and inventorying orphaned wells on
Federal lands and ranking orphaned wells for priority
in permanent plugging, remediation, and reclamation,
based on public health and safety, potential
environmental harm, and other land use priorities;
``(B) distribute funding according to the
priorities identified under subparagraph (A) for--
``(i) permanently plugging orphaned wells;
``(ii) remediating and reclaiming well pads
and access roads associated with orphaned
wells;
``(iii) remediating soil and restoring
native species habitat that has been degraded
due to the presence of orphaned wells; and
``(iv) remediating lands, including access
roads, adjacent to orphaned wells and
decommissioning or removing pipelines,
facilities, and infrastructure associated with
the orphaned well;
``(C) provide a public accounting of the costs of
permanently plugging, remediating, and reclaiming each
orphaned well;
``(D) seek to determine the identities of
potentially responsible parties associated with the
orphaned well, or their sureties or guarantors, to the
extent such information can be ascertained, and make
efforts to obtain reimbursement for expenditures to the
extent practicable;
``(E) to the maximum extent possible, support
research and development efforts aimed at
investigating, measuring, and tracking emissions of
methane and other gases associated with orphaned wells;
``(F) measure and track contamination of
groundwater or surface water associated with orphaned
wells; and
``(G) reduce the negative effects of orphaned wells
on environmental justice communities.
``(3) Define orphaned well.--Not later than 180 days after
the date of enactment of this section, the Secretary shall
issue a final rule defining the term `orphaned well' as such
term applies to Federal and Tribal land for the purposes of
this section.
``(4) Idled wells.--
``(A) In general.--The Secretary, acting through
the Director of the Bureau of Land Management, shall
annually review all idled wells on Federal lands and
take such measures as such Director determines
appropriate to reduce such Director's idled well
inventory.
``(B) Definition of idled well.--Not later than 6
months after the date of enactment of this section, the
Secretary, acting through the Director of the Bureau of
Land Management, shall establish a definition for the
term `idled well' for the purposes of this section.
``(5) Cooperation and consultations.--In carrying out the
program under paragraph (1), the Secretary shall--
``(A) work cooperatively with the Secretary of
Agriculture and the States within which Federal land is
located; and
``(B) consult with affected Indian Tribes, the
Secretary of Energy, and the Interstate Oil and Gas
Compact Commission.
``(b) State Orphaned Well Site Plugging, Remediation, and
Restoration.--
``(1) In general.--
``(A) Activities.--The Secretary shall provide
funding to States as described in this section for any
of the following purposes:
``(i) To permanently plug, remediate, and
reclaim orphaned wells located on State- and
privately-owned land.
``(ii) To identify and characterize
undocumented orphaned wells on State and
private lands.
``(iii) To rank orphaned wells on State and
private lands based on factors including public
health and safety, potential environmental
harm, and other land use priorities.
``(iv) To make information regarding the
use of funds received under this subsection
available on a public website.
``(v) To measure and track emissions of
methane and other gases associated with
orphaned wells.
``(vi) To measure and track contamination
of groundwater or surface water associated with
orphaned wells.
``(vii) To remediate soil and restore
native species habitat that have been degraded
due to the presence of orphaned wells.
``(viii) To remediate lands, including
access roads, adjacent to orphaned wells and
decommission or remove pipelines, facilities,
and infrastructure associated with the orphaned
well.
``(ix) To take such measures as such State
determines necessary to reduce the negative
effects of orphaned wells on environmental
justice communities.
``(x) To administer a program to carry out
activities described in clauses (i) through
(ix).
``(B) Limitation.--Except for funds received by a
State under paragraph (2)(A)(ii), a State may not use
more than 10 percent of the funds received under this
section in any fiscal year for the purpose described in
paragraph (1)(A)(x).
``(2) Initial grants.--
``(A) In general.--The Secretary shall distribute--
``(i) not more than $25,000,000 to each
State that--
``(I) is a Member State or
Associate Member State of the
Interstate Oil and Gas Compact
Commission;
``(II) requests funding under this
clause not later than 6 months after
the date of enactment of this section;
``(III) has at least one documented
orphaned well;
``(IV) certifies to the Secretary
that such State can use at least 90
percent of the requested funding to
issue new contracts, amend existing
contracts, or issue grants for
permanent plugging, remediation, and
reclamation work within 180 days of
receipt of funds; and
``(V) describes to the Secretary
how funds received under this clause
will employ individuals who have lost
employment during the period beginning
on March 1, 2020, and ending on the
date on which such State requests
funding under subclause (II); and
``(ii) not more than $5,000,000 to each
State that--
``(I) requests funding under this
clause;
``(II) does not receive a grant
under clause (i); and
``(III) certifies to the Secretary
that--
``(aa) such State has a
permanent plugging,
remediation, and reclamation
program for orphaned wells or
the capacity to start such a
program; or
``(bb) such funds will be
used to conduct the
administrative work necessary
to put together an application
to receive funds under
paragraph (3).
``(B) Distribution.--The Secretary shall disburse
funds to a State under this subparagraph not later than
30 days after such State makes a certification to the
Secretary that such State is eligible to receive such
funds.
``(C) 2 years to expend funds.--
``(i) In general.--A State that receives
funds under this paragraph shall reimburse the
Secretary in an amount equal to the amount of
any unobligated funds that remain 2 years after
the date on which such State receives funds
under this paragraph.
``(ii) Use of reimbursed funds.--The
Secretary may use funds reimbursed under this
subparagraph to carry out any activity under
subsection (a)(2).
``(D) Report.--
``(i) In general.--Not later than 15 months
after the date on which a State receives funds
under this paragraph, such State shall submit a
report to the Secretary detailing how the State
adhered to the certifications required by
subparagraph (A).
``(ii) Public access.--The Secretary shall
make available on a publicly accessible website
each report submitted under clause (i).
``(3) Formula grants.--
``(A) Formula.--
``(i) In general.--The Secretary shall
establish a formula for the distribution of
funds under this paragraph to the States
described in clause (ii). Such formula, with
respect to an applicant State, shall account
for the following factors:
``(I) The job losses in the oil and
gas industry between March 1, 2020, and
the date of enactment of this section.
``(II) The number of documented
orphaned wells and associated
facilities and the projected cost to
permanently plug and reclaim such
wells.
``(ii) Notification.--A State is described
in this clause if, not later than 45 days after
the date of enactment of this section, such
State submits a notice to the Secretary that
such State intends to submit an application
under subparagraph (B) and includes in such
notification the information described in
subclauses (I) through (II) of clause (i) with
respect to such State.
``(iii) Publication.--The Secretary shall,
not later than 30 days after the date described
in clause (ii), publish on a public website the
amount that each State described in clause (ii)
is eligible to receive under the formula
established under clause (i).
``(B) Application.--A State may apply to receive
funds under this paragraph by submitting an application
including--
``(i) a description of--
``(I) the State program for
orphaned well permanent plugging,
remediation, and restoration, including
legal authorities, processes used to
identify and prioritize orphaned wells,
procurement mechanisms, and other
program elements demonstrating the
readiness of the State program to carry
out the proposed activities;
``(II) the activities to be carried
out with the grant, including an
identification of the estimated health,
safety, habitat, and environmental
benefits of permanent plugging,
remediating, or reclaiming the orphaned
wells; and
``(III) how the information
regarding the State's activities under
this subsection will be made available
on a public website;
``(ii) an estimate of--
``(I) the number of orphaned wells
that will be permanently plugged,
remediated, or reclaimed;
``(II) the projected cost of
permanently plugging, remediating, or
reclaiming orphaned wells, adjacent
lands, and access roads;
``(III) the amount of that cost
that will be offset by the forfeiture
of financial assurance instruments, the
estimated salvage of well-site
equipment, or other proceeds from the
orphaned wells and adjacent lands;
``(IV) the number of jobs that will
be created or saved through the
activities to be funded under this
subsection; and
``(V) the amount of funds to be
spent on administrative costs;
``(iii) a certification that any financial
assurance instruments, including bonds,
available to cover permanent plugging,
remediation, or reclamation costs will be used
by the State; and
``(iv) the definitions and processes used
by the State to formally declare a well
orphaned or, if the State uses different
terminology, otherwise eligible for permanent
plugging, remediation, and reclamation by the
State, including the steps the State has taken
to identify the well's most recent operator.
``(C) Review of state definitions and processes.--
The Secretary may only distribute funds to a State
under this paragraph if the Secretary determines that--
``(i) such State has taken appropriate
steps to protect taxpayers from unnecessarily
paying for permanent plugging, remediation, and
reclamation costs;
``(ii) the processes of such State for
declaring a well eligible for permanent
plugging by the State are reasonable; and
``(iii) the definition provided by the
State for the term `orphaned well' (or an
alternate term, if applicable), if such term
differs from the definition given such term in
subsection (i)(5)(A)(ii), is reasonable.
``(D) 5 years to expend funds.--A State that
receives funds under this paragraph shall reimburse the
Secretary in an amount equal to the amount of any
unobligated funds that remain 5 years after the date on
which such State receives funds under this paragraph.
``(E) Consultation.--In making a determination
under this paragraph regarding the eligibility of a
State to receive funds, the Secretary shall consult
with the Administrator of the Environmental Protection
Agency, the Secretary of Energy, and the Interstate Oil
and Gas Compact Commission.
``(F) Consideration timeline.--Not later than 60
days after receiving a completed application that meets
the requirements of this section from a State under
this paragraph, the Secretary shall issue a grant to
such State.
``(4) Discretionary grants.--
``(A) In general.--
``(i) Regulatory improvement grant.--
``(I) In general.--Beginning on the
date that is 6 months after the date on
which the first grant is issued under
paragraph (2), the Secretary may
provide funding in an amount not to
exceed $20,000,000 per grant to a State
if the State meets one of the following
criteria:
``(aa) The State--
``(AA) requires, or
will require by the
date that is not later
than five years after
the date of enactment
of the Orphaned Well
Cleanup and Jobs Act of
2021, the operator of
each well subject to
regulation by the State
to capture (which such
term means the physical
containment of gas for
transportation to
market or productive
use, including
reinjection and other
on-site uses) at least
98 percent of all gas
produced each year from
each such well; and
``(BB) prohibits,
or will prohibit by the
date that is not later
than five years after
the date of enactment
of the Orphaned Well
Cleanup and Jobs Act of
2021, venting and
flaring of gas produced
from each such well,
except in the case of
emergencies or
equipment failures as
defined under the
applicable law of such
State.
``(bb) During the period of
10 years that precedes the date
on which the State applies for
a grant under this paragraph,
the State strengthened its
plugging standards and
procedures to ensure that wells
located in the State are
plugged in an effective manner
that protects groundwater and
other natural resources, public
health and safety, and the
environment.
``(cc) The State has made
improvements to State programs
designed to prevent future
orphaned well burdens, such as
bonding reform or other
financial assurance reform,
alternative funding mechanisms
for orphaned well programs, and
reforms to well transfer and
temporary abandonment programs
in the 10 years preceding the
date that the States applies
for a grant under this
paragraph.
``(II) Limitation.--The Secretary
may only issue one grant per criterion
per State under this clause.
``(ii) Matching grant.--
``(I) In general.--Beginning on the
date that is 6 months after the date on
which the first grant is issued under
paragraph (2), the Secretary may
provide funding to a State in an amount
equal to the difference between--
``(aa) the amount of funds
such State expended on average
in fiscal years 2010 through
2019 to permanently plug,
remediate, and reclaim orphaned
wells and associated
facilities; and
``(bb) the amount of funds
such State certifies to the
Secretary such State will
expend for such purposes in the
fiscal year in which such State
will receive such grant.
``(II) Annual grant.--The Secretary
may issue one grant per State per
fiscal year under this clause.
``(III) Limitation on total funds
provided to a state.--The Secretary may
not provide a total of more than
$30,000,000 to a State under this
clause during the period of fiscal
years 2021 through 2031.
``(B) Application.--
``(i) In general.--A State may apply to
receive funds under this paragraph by
submitting an application including--
``(I) each of the elements required
in an application under paragraph
(3)(B);
``(II) a description of measures
such State has taken to address
orphaned wells, including by increasing
State spending on well permanent
plugging, remediation, and reclamation
and by improving regulation of oil and
gas wells; and
``(III) a description of how such
State will use such funds to--
``(aa) lower unemployment
in such State; and
``(bb) improve economic
conditions in economically
distressed areas of such State.
``(ii) Consultation.--In making a
determination to issue a grant under this
paragraph, the Secretary shall consult with the
Administrator of the Environmental Protection
Agency and the Secretary of Energy.
``(iii) Reimbursement for failure to
maintain protections.--A State that receives
funds under this paragraph shall reimburse the
Secretary any funds received if, during the 10
year period beginning on the date of receipt of
funds under this paragraph, such State enacts a
statute or regulation that, if such statute or
regulation were in effect when the State
submitted an application under this paragraph,
would have prevented such State from being
eligible to receive funds under subparagraph
(A)(i)(I).
``(iv) Consideration timeline.--Not later
than 60 days after receiving an application
from an eligible State under this paragraph,
the Secretary shall make a grant or reject such
application.
``(5) State report.--
``(A) In general.--Each State that receives funding
under this subsection shall submit a report to the
Secretary each year that provides--
``(i) the number of orphaned wells that
have been permanently plugged, remediated, or
reclaimed;
``(ii) the cost of permanently plugging,
remediating, or reclaiming orphaned wells,
adjacent lands, and access roads;
``(iii) the amount of that cost offset by
the forfeiture of financial assurance
instruments, the salvage of well-site
equipment, or other proceeds from the orphaned
wells;
``(iv) an estimate of the number of jobs
created or saved through the activities funded
under this subsection;
``(v) the funds spent on administrative
costs;
``(vi) a description of how the State is
working to decrease the effects of orphaned
wells on environmental justice communities; and
``(vii) survey results from State efforts
to identify undocumented orphaned wells.
``(B) Public access.--The Secretary shall make
available on a publicly accessible website each report
submitted under subparagraph (A).
``(c) Tribal Orphaned Well Site Plugging, Remediation, and
Restoration.--
``(1) Establishment.--The Secretary shall establish a
program in the Bureau of Indian Affairs to provide grants to
Indian Tribes for the purposes described in paragraph (2).
``(2) Activities.--The purposes described in this paragraph
are to--
``(A) permanently plug, remediate, and reclaim
orphaned wells on Tribal land;
``(B) remediate soil and restore native species
habitat that has been degraded due to the presence of
orphaned wells on Tribal land;
``(C) remediate lands, including access roads,
adjacent to orphaned wells and decommission or remove
pipelines, facilities, and infrastructure associated
with the orphaned well on Tribal lands;
``(D) provide an online public accounting of the
cost of permanent plugging, remediation, and
reclamation for each orphaned well site on Tribal land,
excluding confidential or sensitive Tribal trust or
business information (as determined by the Secretary);
``(E) identify and characterize undocumented
orphaned wells on Tribal land; and
``(F) administer a Tribal program to carry out
activities described in subparagraphs (A) through (E).
``(3) Considerations.--In making a determination to issue a
grant under this subsection, the Secretary shall take into
account the number of documented orphaned wells on the land of
the Indian Tribe and the projected cost to permanently plug and
reclaim such wells.
``(4) Application.--An Indian Tribe may apply to receive
funds under this paragraph by submitting an application that
includes--
``(A) a description of--
``(i) the Tribal program for orphaned well
permanent plugging, remediation, and
restoration, including legal authorities,
processes used to identify and prioritize
orphaned wells, procurement mechanisms, and
other program elements demonstrating the
readiness of the Tribal program to carry out
the proposed activities; and
``(ii) the activities to be carried out
with the grant, including an identification of
the estimated health, safety, and habitat, and
environmental benefits of permanently plugging,
remediating, or reclaiming the orphaned wells,
adjacent lands, and access roads; and
``(B) an estimate of--
``(i) the number of orphaned wells that
will be permanently plugged, remediated, or
reclaimed; and
``(ii) the projected costs of permanently
plugging, remediating, or reclaiming the
orphaned wells and any adjacent lands or access
roads.
``(5) Limitation.--An Indian Tribe may not use more than 15
percent of the funds received under this subsection in a fiscal
year for the purposes described in paragraph (2)(F).
``(6) Consideration timeline.--The Secretary shall issue or
deny a grant under this subsection not later than 60 days after
the date of receipt of the complete application under paragraph
(4).
``(7) 8 years to expend funds.--An Indian Tribe that
receives funds under this subsection shall reimburse the
Secretary in an amount equal to the amount of any unobligated
funds that remain 8 years after the date on which such Indian
Tribe receives funds under this subsection.
``(8) Deferral of plugging and remediation.--An Indian
Tribe with an orphaned well within such Indian Tribe's
jurisdiction may request that the Secretary administer and
carry out permanent plugging, remediation, and reclamation work
with respect to such orphaned well. For the purposes of
subsection (a), any orphaned well with respect to which the
Indian Tribe with jurisdiction has made such a request shall be
treated as if such orphaned well is on land administered by a
land management agency within the Department of the Interior.
``(d) Technical Assistance.--The Secretary of Energy, in
cooperation with the Secretary and the Interstate Oil and Gas Compact
Commission, shall provide technical assistance to Federal land
management agencies and oil and gas producing States and Indian Tribes
to ensure practical and economical remedies are used to address
environmental problems caused by orphaned wells on Federal, State,
Tribal, or private land, including the sharing of best practices in the
management of oil and gas well inventories to ensure the availability
of funds to permanently plug, remediate, and restore oil and gas well
sites when operations cease.
``(e) Report to Congress.--Not later than 1 year after the date of
enactment of this section, and every year thereafter, the Secretary
shall submit to the Committees on Appropriations and Energy and Natural
Resources of the Senate and to the Committees on Appropriations and
Natural Resources of the House of Representatives a report on the
program established and grants awarded under this section, including--
``(1) an updated inventory of--
``(A) orphaned wells on Federal, Tribal, State, and
private land; and
``(B) wells at-risk of becoming orphaned on
Federal, Tribal, State, and private land;
``(2) to the maximum extent practical, an estimate of--
``(A) the amount of methane and other gasses
emitted from orphaned wells; and
``(B) the amount of emissions reduced as a result
of permanently plugging and reclaiming orphaned wells;
``(3) the number of jobs created and saved through the
permanent plugging, remediation, and reclamation of orphaned
wells; and
``(4) the acreage of habitat restored using grants awarded
to permanently plug, remediate, and reclaim orphaned wells and
adjacent lands, including access roads, and a description of
how such land is likely to be used in the future.
``(f) Idled Well Fees.--
``(1) In general.--The Secretary shall, not later than 180
days after the date of enactment of this section, issue
regulations to require each operator of an idled well on
Federal land to pay an annual, nonrefundable fee for each such
idled well in accordance with this subsection.
``(2) Amounts.--Except as provided in paragraph (5), the
amount of the fee shall be as follows:
``(A) $500 for each well that has been considered
an idled well for at least 1 year, but not more than 5
years.
``(B) $1,500 for each well that has been considered
an idled well for at least 5 years, but not more than
10 years.
``(C) $3,500 for each well that has been considered
an idled well for at least 10 years, but not more than
15 years.
``(D) $7,500 for each well that has been considered
an idled well for at least 15 years.
``(3) Due date.--An owner of an idled well that is required
to pay a fee under this subsection shall submit to the
Secretary such fee by not later than May 1 of each year.
``(4) Civil penalty.--If the operator of a idled well fails
to pay the full amount of a fee under this subsection, the
Secretary may assess a civil penalty against the operator under
section 109 of the Federal Oil and Gas Royalty Management Act
of 1982 (30 U.S.C. 1719) as if such failure to pay were a
violation under such section.
``(5) Adjustment for inflation.--The Secretary shall, by
regulation not less than once every 4 years, adjust each fee
under this subsection to account for inflation based on the
Consumer Price Index for All Urban Consumers (as published by
the Bureau of Labor Statistics of the Department of Labor).
``(6) Use of fees.--The Secretary, acting through the
Director of the Bureau of Land Management, shall use any fees
collected under this subsection for the following purposes:
``(A) 50 percent of such amounts shall be used
for--
``(i) inventorying and tracking orphaned
wells on Federal lands;
``(ii) permanently plugging orphaned wells
on Federal lands;
``(iii) remediating and reclaiming well
pads and access roads associated with orphaned
wells on Federal lands;
``(iv) remediating soil and restoring
native species habitat that have been degraded
due to the presence of orphaned wells on
Federal land; and
``(v) remediating lands, including access
roads, adjacent to orphaned wells and
decommissioning or removing pipelines,
facilities, and infrastructure associated with
orphaned wells.
``(B) 50 percent of such amounts shall be used to
carry out part 3163 of title 43, Code of Federal
Regulations (or any successor regulation).
``(g) Savings Clauses and Prevailing Wage Requirements.--
``(1) No expansion of liability.--Nothing in this section
establishes or expands the responsibility or liability of any
entity with respect to permanently plugging a well or
remediating or reclaiming a well site.
``(2) Prevailing wage.--Any entity carrying out a project
authorized by this section shall be required to pay prevailing
wages in accordance with subchapter IV of chapter 31 of title
40, United States Code (commonly known as the Davis-Bacon Act).
``(3) Tribal land.--Nothing in this section may be
construed to relieve the Secretary of any obligation imposed by
section 3 of the Act of May 11, 1938 (25 U.S.C. 396c), or to
absolve the United States from any responsibility to an Indian
Tribe, including those which derive from the trust relationship
or from any treaties, statutes, Executive orders, or agreements
between the United States and an Indian Tribe, to permanently
plug, remediate, or reclaim orphaned wells located on Tribal
lands.
``(4) Owner or operator not absolved.--Nothing in this
section may be construed to absolve the owner or operator of an
oil or gas well of potential liability for reimbursement of
permanent plugging and reclamation costs or adverse effects on
the environment.
``(h) American Iron, Steel, and Manufactured Products.--
``(1) Definitions.--In this subsection:
``(A) Iron or steel manufactured product.--The term
`iron or steel manufactured product' includes any
construction material or end product (as those terms
are defined in subpart 25.003 of the Federal
Acquisition Regulation) that does not otherwise qualify
as an iron or steel product, including--
``(i) an electrical component;
``(ii) a non-ferrous building material,
including--
``(I) aluminum and
polyvinylchloride;
``(II) glass;
``(III) fiber optics;
``(IV) plastic;
``(V) wood;
``(VI) masonry;
``(VII) rubber;
``(VIII) manufactured stone; and
``(IX) any other non-ferrous
metals; and
``(iii) an unmanufactured construction
material.
``(B) Produced in the united states.--
``(i) In general.--The term `produced in
the United States'--
``(I) with respect to an iron or
steel product or an iron or steel
manufactured product, means that all
manufacturing processes for, and
materials and components of, the iron
or steel product or iron or steel
manufactured product, from the initial
melting stage through the application
of coatings, occurred in the United
States; and
``(II) with respect to an iron or
steel manufactured product, means
that--
``(aa) the iron or steel
manufactured product was
manufactured in the United
States; and
``(bb) the cost of the
components of the iron or steel
manufactured product that were
mined, produced, or
manufactured in the United
States is greater than 60
percent of the total cost of
the components of the iron or
steel manufactured product.
``(ii) Exclusions.--The term `produced in
the United States', with respect to an iron or
steel product or iron or steel manufactured
product, does not include an iron or steel
product or an iron or steel manufactured
product the materials and components of which
were manufactured--
``(I) abroad from semi-finished
steel or iron from the United States;
or
``(II) in the United States from
semi-finished steel or iron of foreign
origin.
``(2) Requirement.--Funds made available under this section
may not be used for an orphaned well plugging or remediation
project unless all of the iron and steel products and steel
manufactured products used in the project are produced in the
United States.
``(3) Waiver.--
``(A) In general.--On request of the recipient of a
grant under this section, the Secretary may grant for
the project of the recipient of the grant a waiver of
the requirement described in paragraph (2) if the
Secretary finds that--
``(i) the application of paragraph (2)
would be inconsistent with the public interest;
``(ii) iron or steel products or iron or
steel manufactured products are not produced in
the United States--
``(I) in sufficient and reasonably
available quantities; or
``(II) of a satisfactory quality;
or
``(iii) the inclusion of iron or steel
products or iron or steel manufactured products
in the United States would increase the cost of
the overall project by greater than 25 percent.
``(B) Public notice.--On receipt of a request for a
waiver under subparagraph (A), the Secretary shall--
``(i) make available to the public,
including by electronic means, including on the
official public website of the Department, on
an informal basis, a copy of the request and
all information available to the Secretary
relating to the request; and
``(ii) provide for informal public input on
the request for a period of not fewer than 15
days before making with respect to the request
the finding described in subparagraph (A).
``(i) Definitions.--In this section:
``(1) Environmental justice community.--The term
`environmental justice community' means any community with
significant representation of communities of color, low-income
communities, or Tribal and indigenous communities, that
experiences, or is at risk of experiencing higher or more
adverse human health or environmental effects.
``(2) Idled well.--The term `idled well'--
``(A) if the Secretary has not established a
definition under subsection (a)(4)(B), means a well
that has been non-operational for at least two
consecutive years for which there is no anticipated
beneficial future use; or
``(B) has the meaning given to such term by the
Secretary under subsection (a)(4)(B).
``(3) Indian tribe.--The term `Indian Tribe' means the
governing body of any Indian or Alaska Native Tribe, band,
nation, pueblo, village, community, component band, or
component reservation individually identified (including
parenthetically) in the most recent list published pursuant to
section 104 of the Federally Recognized Indian Tribe List Act
of 1994 (25 U.S.C. 5131).
``(4) Operator.--The term `operator' means, with respect to
an oil or gas operation, any entity, including the lessee or
operating rights owner, who has stated in writing to a relevant
authority that such entity is responsible for such operation or
a portion thereof.
``(5) Orphaned well.--The term `orphaned well'--
``(A) with respect to Federal and Tribal land--
``(i) has the meaning given to such term by
the Secretary under subsection (a)(3); or
``(ii) if the Secretary has not defined the
term under such subsection, means a well that
is not being used for authorized purposes such
as production, injection, or monitoring and for
which either no operator can be found or the
operator is unable to permanently plug the well
and remediate and reclaim the well site; and
``(B) with respect to State or private land--
``(i) has the meaning given to such term by
such State if the Secretary determines under
subsection (b)(3)(C)(iii) that such definition
is reasonable; or
``(ii) has the meaning given in
subparagraph (A).
``(6) Tribal land.--The term `Tribal land' means any land
or minerals, or interests in land or minerals, owned by any
Indian Tribe, the title to which is held in trust by the United
States, or is subject to a restriction against alienation under
the laws of the United States.
``(j) Authorization of Appropriations.--There are authorized to be
appropriated for fiscal year 2021, to remain available until September
30, 2031--
``(1) to the Secretary--
``(A) $400,000,000 to carry out the program under
subsection (a);
``(B) $1,500,000,000--
``(i) to provide grants under paragraph (2)
of subsection (b); and
``(ii) to provide, beginning on the date
that is 18 months after amounts are made
available to carry out this section, grants
under paragraph (4) of such subsection;
``(C) $3,500,000,000 to provide grants under
paragraph (3) of such subsection;
``(D) $2,250,000,000 to provide grants under
paragraph (4) of such subsection; and
``(E) $300,000,000 to carry out subsection (c);
``(2) to the Secretary of Energy, $48,000,000 to conduct
research and development activities in cooperation with the
Interstate Oil and Gas Compact Commission to assist the Federal
land management agencies, States, and Indian Tribes in
identifying and characterizing undocumented orphaned wells and
mitigating the environmental risks of undocumented orphaned
wells; and
``(3) to the Interstate Oil and Gas Compact Commission,
$2,000,000 to carry out this section.''.
(b) Clerical Amendment.--Section 1(b) of the Energy Policy Act of
2005 is amended in the table of contents by amending the item relating
to section 349 to read as follows:
``Sec. 349. Orphaned well site plugging, remediation, and
restoration.''.
SEC. 3. AMENDMENT TO MINERAL LEASING ACT.
Section 17(g) of the Mineral Leasing Act (30 U.S.C. 226(g)) is
amended by inserting ``The Secretary concerned shall review the
adequacy of each such bond, surety, or other financial arrangement
anytime a lease issued under this section is transferred. Each such
bond, surety, or other financial arrangement shall be considered
inadequate if such bond, surety, or other financial arrangement is for
less than $150,000 in the case of an arrangement for an individual
surface-disturbing activity of each entity on an individual oil or gas
lease in a State, or $500,000 in the case of an arrangement for all
surface-disturbing activities of each entity on all oil and gas leases
in a State.'' after ``on the lease.''.
Union Calendar No. 464
117th CONGRESS
2d Session
H. R. 2415
[Report No. 117-645]
_______________________________________________________________________
A BILL
To amend the Energy Policy Act of 2005 to require the Secretary of the
Interior to establish a program to permanently plug, remediate, and
reclaim orphaned wells and the surrounding lands and to provide funds
to States and Tribal Governments to permanently plug, remediate, and
reclaim orphaned wells and the surrounding lands, and for other
purposes.
_______________________________________________________________________
December 15, 2022
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed