[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3585 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 3585
To amend the Energy Policy Act of 2005 to require the Secretary of the
Interior to establish a program to plug, remediate, and reclaim
orphaned oil and gas wells and surrounding land, to provide funds to
State and Tribal governments to plug, remediate, and reclaim orphaned
oil and gas wells and surrounding land, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 28, 2021
Mrs. Fletcher (for herself and Mr. Armstrong) introduced the following
bill; which was referred to the Committee on Natural Resources
_______________________________________________________________________
A BILL
To amend the Energy Policy Act of 2005 to require the Secretary of the
Interior to establish a program to plug, remediate, and reclaim
orphaned oil and gas wells and surrounding land, to provide funds to
State and Tribal governments to plug, remediate, and reclaim orphaned
oil and gas wells and surrounding land, 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 ``Revive Economic Growth and Reclaim
Orphaned Wells Act of 2021'' or the ``REGROW Act of 2021''.
SEC. 2. ORPHANED WELL SITE PLUGGING, REMEDIATION, AND RESTORATION.
Section 349 of the Energy Policy Act of 2005 (42 U.S.C. 15907) is
amended to read as follows:
``SEC. 349. ORPHANED WELL SITE PLUGGING, REMEDIATION, AND RESTORATION.
``(a) Definitions.--In this section:
``(1) Federal land.--The term `Federal land' means land
administered by a land management agency within--
``(A) the Department of Agriculture; or
``(B) the Department of the Interior.
``(2) Idled well.--The term `idled well' means a well--
``(A) that has been nonoperational for not fewer
than 4 years; and
``(B) for which there is no anticipated beneficial
future use.
``(3) Indian tribe.--The term `Indian Tribe' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 5304).
``(4) Operator.--The term `operator', with respect to an
oil or gas operation, means any entity, including a lessee or
operating rights owner, that has provided to a relevant
authority a written statement that the entity is responsible
for the oil or gas operation, or any portion of the operation.
``(5) Orphaned well.--The term `orphaned well'--
``(A) with respect to Federal land or Tribal land,
means a well--
``(i) that is not used for an authorized
purpose, such as production, injection, or
monitoring; and
``(ii)(I) for which no operator can be
located; or
``(II) the operator of which is unable--
``(aa) to plug the well; and
``(bb) to remediate and reclaim the
well site; and
``(B) with respect to State or private land--
``(i) has the meaning given the term by the
applicable State; or
``(ii) if that State uses different
terminology, has the meaning given another term
used by the State to describe a well eligible
for plugging, remediation, and reclamation by
the State.
``(6) Tribal land.--The term `Tribal land' means any land
or interest in land owned by an Indian Tribe, the title to
which is--
``(A) held in trust by the United States; or
``(B) subject to a restriction against alienation
under Federal law.
``(b) Federal Program.--
``(1) Establishment.--Not later than 60 days after the date
of enactment of the Revive Economic Growth and Reclaim Orphaned
Wells Act of 2021, the Secretary shall establish a program to
plug, remediate, and reclaim orphaned wells located on Federal
land.
``(2) Included activities.--The program under this
subsection shall--
``(A) include a method of--
``(i) identifying, characterizing, and
inventorying orphaned wells and associated
pipelines, facilities, and infrastructure on
Federal land; and
``(ii) ranking those orphaned wells for
priority in plugging, remediation, and
reclamation, based on--
``(I) public health and safety;
``(II) potential environmental
harm; and
``(III) other subsurface impacts or
land use priorities;
``(B) distribute funding in accordance with the
priorities established under subparagraph (A)(ii) for--
``(i) plugging orphaned wells;
``(ii) remediating and reclaiming well pads
and facilities associated with orphaned wells;
``(iii) remediating soil and restoring
native species habitat that has been degraded
due to the presence of orphaned wells and
associated pipelines, facilities, and
infrastructure; and
``(iv) remediating land adjacent to
orphaned wells and decommissioning or removing
associated pipelines, facilities, and
infrastructure;
``(C) provide a public accounting of the costs of
plugging, remediation, and reclamation for each
orphaned well;
``(D) seek to determine the identities of
potentially responsible parties associated with the
orphaned well (or a surety or guarantor of such a
party), to the extent such information can be
ascertained, and make efforts to obtain reimbursement
for expenditures to the extent practicable;
``(E) measure and track--
``(i) emissions of methane and other gases
associated with orphaned wells; and
``(ii) contamination of groundwater or
surface water associated with orphaned wells;
and
``(F) identify and address any disproportionate
burden of adverse human health or environmental effects
of orphaned wells on communities of color, low-income
communities, and Tribal and indigenous communities.
``(3) Idled wells.--The Secretary, acting through the
Director of the Bureau of Land Management, shall--
``(A) periodically review all idled wells on
Federal land; and
``(B) reduce the inventory of idled wells on
Federal land.
``(4) Cooperation and consultation.--In carrying out the
program under this subsection, the Secretary shall--
``(A) work cooperatively with--
``(i) the Secretary of Agriculture;
``(ii) affected Indian Tribes; and
``(iii) each State within which Federal
land is located; and
``(B) consult with--
``(i) the Secretary of Energy; and
``(ii) the Interstate Oil and Gas Compact
Commission.
``(c) Funding for State Programs.--
``(1) In general.--The Secretary shall provide to States,
in accordance with this subsection--
``(A) initial grants under paragraph (3);
``(B) formula grants under paragraph (4); and
``(C) performance grants under paragraph (5).
``(2) Activities.--
``(A) In general.--A State may use funding provided
under this subsection for any of the following
purposes:
``(i) To plug, remediate, and reclaim
orphaned wells located on State-owned or
privately owned land.
``(ii) To identify and characterize
undocumented orphaned wells on State and
private land.
``(iii) To rank orphaned wells based on
factors including--
``(I) public health and safety;
``(II) potential environmental
harm; and
``(III) 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--
``(I) emissions of methane and
other gases associated with orphaned
wells; and
``(II) contamination of groundwater
or surface water associated with
orphaned wells.
``(vi) To remediate soil and restore native
species habitat that has been degraded due to
the presence of orphaned wells and associated
pipelines, facilities, and infrastructure.
``(vii) To remediate land adjacent to
orphaned wells and decommission or remove
associated pipelines, facilities, and
infrastructure.
``(viii) To identify and address any
disproportionate burden of adverse human health
or environmental effects of orphaned wells on
communities of color, low-income communities,
and Tribal and indigenous communities.
``(ix) Subject to subparagraph (B), to
administer a program to carry out any
activities described in clauses (i) through
(viii).
``(B) Administrative cost limitation.--
``(i) In general.--Except as provided in
clause (ii), a State shall not use more than 10
percent of the funds received under this
subsection during a fiscal year for
administrative costs under subparagraph
(A)(ix).
``(ii) Exception.--The limitation under
clause (i) shall not apply to funds used by a
State as described in paragraph (3)(A)(ii).
``(3) Initial grants.--
``(A) In general.--The Secretary shall distribute--
``(i) not more than $25,000,000 to each
State that submits to the Secretary, by not
later than 180 days after the date of enactment
of the Revive Economic Growth and Reclaim
Orphaned Wells Act of 2021, a request for
funding under this clause, including--
``(I) an estimate of the number of
jobs that will be created or saved
through the activities proposed to be
funded; and
``(II) a certification that--
``(aa) the State is a
Member State or Associate
Member State of the Interstate
Oil and Gas Compact Commission;
``(bb) there are 1 or more
documented orphaned wells
located in the State; and
``(cc) the State will use
not less than 90 percent of the
funding requested under this
subsection to issue new
contracts, amend existing
contracts, or issue grants for
plugging, remediation, and
reclamation work by not later
than 90 days after the date of
receipt of the funds; 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) the State--
``(AA) has in
effect a plugging,
remediation, and
reclamation program for
orphaned wells; or
``(BB) the capacity
to initiate such a
program; or
``(bb) the funds provided
under this paragraph will be
used to carry out any
administrative actions
necessary to develop an
application for a formula grant
under paragraph (4) or a
performance grant under
paragraph (5).
``(B) Distribution.--The Secretary shall distribute
funds to a State under this paragraph by not later than
the date that is 30 days after the date on which the
State submits to the Secretary the certification
required under clause (i)(II) or (ii)(III) of
subparagraph (A), as applicable.
``(C) Deadline for expenditure.--A State that
receives funds under this paragraph shall reimburse the
Secretary in an amount equal to the amount of the funds
that remain unobligated on the date that is 1 year
after the date of receipt of the funds.
``(D) Report.--Not later than 15 months after the
date on which a State receives funds under this
paragraph, the State shall submit to the Secretary a
report that describes the means by which the State used
the funds in accordance with the certification
submitted by the State under subparagraph (A).
``(4) Formula grants.--
``(A) Establishment.--
``(i) In general.--The Secretary shall
establish a formula for the distribution to
each State described in clause (ii) of funds
under this paragraph.
``(ii) Description of states.--A State
referred to in clause (i) is a State that, by
not later than 45 days after the date of
enactment of the Revive Economic Growth and
Reclaim Orphaned Wells Act of 2021, submits to
the Secretary a notice of the intent of the
State to submit an application under
subparagraph (B), including a description of
the factors described in clause (iii) with
respect to the State.
``(iii) Factors.--The formula established
under clause (i) shall account for, with
respect to an applicant State, the following
factors:
``(I) Job losses in the oil and gas
industry in the State during the
period--
``(aa) beginning on March
1, 2020; and
``(bb) ending on the date
of enactment of the Revive
Economic Growth and Reclaim
Orphaned Wells Act of 2021.
``(II) The number of documented
orphaned wells located in the State,
and the projected cost--
``(aa) to plug or reclaim
those orphaned wells;
``(bb) to reclaim adjacent
land; and
``(cc) to decommission or
remove associated pipelines,
facilities, and infrastructure.
``(iv) Publication.--Not later than 75 days
after the date of enactment of this Act, the
Secretary shall publish on a public website the
amount that each State is eligible to receive
under the formula under this subparagraph.
``(B) Application.--To be eligible to receive a
formula grant under this paragraph, a State shall
submit to the Secretary an application that includes--
``(i) a description of--
``(I) the State program for
orphaned well 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 to carry out
proposed activities using the grant;
``(II) the activities to be carried
out with the grant, including an
identification of the estimated health,
safety, habitat, and environmental
benefits of plugging, remediating, or
reclaiming orphaned wells; and
``(III) the means by which the
information regarding the activities of
the State under this paragraph will be
made available on a public website;
``(ii) an estimate of--
``(I) the number of orphaned wells
in the State that will be plugged,
remediated, or reclaimed;
``(II) the projected cost of--
``(aa) plugging,
remediating, or reclaiming
orphaned wells;
``(bb) remediating or
reclaiming adjacent land; and
``(cc) decommissioning or
removing associated pipelines,
facilities, and infrastructure;
``(III) the amount of that
projected 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
land;
``(IV) the number of jobs that will
be created or saved through the
activities to be funded under this
paragraph; and
``(V) the amount of funds to be
spent on administrative costs;
``(iii) a certification that any financial
assurance instruments available to cover
plugging, remediation, or reclamation costs
will be used by the State; and
``(iv) the definitions and processes used
by the State to formally identify a well as--
``(I) an orphaned well; or
``(II) if the State uses different
terminology, otherwise eligible for
plugging, remediation, and reclamation
by the State.
``(C) Distribution.--The Secretary shall distribute
funds to a State under this paragraph by not later than
the date that is 60 days after the date on which the
State submits to the Secretary a completed application
under subparagraph (B).
``(D) Deadline for expenditure.--A State that
receives funds under this paragraph shall reimburse the
Secretary in an amount equal to the amount of the funds
that remain unobligated on the date that is 5 years
after the date of receipt of the funds.
``(E) Consultation.--In making a determination
under this paragraph regarding the eligibility of a
State to receive a formula grant, the Secretary shall
consult with--
``(i) the Administrator of the
Environmental Protection Agency;
``(ii) the Secretary of Energy; and
``(iii) the Interstate Oil and Gas Compact
Commission.
``(5) Performance grants.--
``(A) Establishment.--The Secretary shall provide
to States, in accordance with this paragraph--
``(i) regulatory improvement grants under
subparagraph (E); and
``(ii) matching grants under subparagraph
(F).
``(B) Application.--To be eligible to receive a
grant under this paragraph, a State shall submit to the
Secretary an application including--
``(i) each element described in an
application for a grant under paragraph (4)(B);
``(ii) activities carried out by the State
to address orphaned wells located in the State,
including--
``(I) increasing State spending on
well plugging, remediation, and
reclamation; or
``(II) improving regulation of oil
and gas wells; and
``(iii) the means by which the State will
use funds provided under this paragraph--
``(I) to lower unemployment in the
State; and
``(II) to improve economic
conditions in economically distressed
areas of the State.
``(C) Distribution.--The Secretary shall distribute
funds to a State under this paragraph by not later than
the date that is 60 days after the date on which the
State submits to the Secretary a completed application
under subparagraph (B).
``(D) Consultation.--In making a determination
under this paragraph regarding the eligibility of a
State to receive a grant under subparagraph (E) or (F),
the Secretary shall consult with--
``(i) the Administrator of the
Environmental Protection Agency;
``(ii) the Secretary of Energy; and
``(iii) the Interstate Oil and Gas Compact
Commission.
``(E) Regulatory improvement grants.--
``(i) In general.--Beginning on the date
that is 180 days after the date on which an
initial grant is provided to a State under
paragraph (3), the Secretary shall provide to
the State a regulatory improvement grant under
this subparagraph, if the State meets, during
the 10-year period ending on the date on which
the State submits to the Secretary an
application under subparagraph (B), one of the
following criteria:
``(I) The State has strengthened
plugging standards and procedures
designed 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.
``(II) The State has made
improvements to State programs designed
to reduce future orphaned well burdens,
such as financial assurance reform,
alternative funding mechanisms for
orphaned well programs, and reforms to
programs relating to well transfer or
temporary abandonment.
``(ii) Limitations.--
``(I) Number.--The Secretary may
issue to a State under this
subparagraph not more than 1 grant for
each criterion described in subclause
(I) or (II) of clause (i).
``(II) Maximum amount.--The amount
of a single grant provided to a State
under this subparagraph shall be not
more than $20,000,000.
``(iii) Reimbursement for failure to
maintain protections.--A State that receives a
grant under this subparagraph shall reimburse
the Secretary in an amount equal to the amount
of the grant in any case in which, during the
10-year period beginning on the date of receipt
of the grant, the State enacts a law or
regulation that, if in effect on the date of
submission of the application under
subparagraph (B), would have prevented the
State from being eligible to receive the grant
under clause (i).
``(F) Matching grants.--
``(i) In general.--Beginning on the date
that is 180 days after the date on which an
initial grant is provided to a State under
paragraph (3), the Secretary shall provide to
the State funding, in an amount equal to the
difference between--
``(I) the average annual amount
expended by the State during the period
of fiscal years 2010 through 2019--
``(aa) to plug, remediate,
and reclaim orphaned wells; and
``(bb) to decommission or
remove associated pipelines,
facilities, or infrastructure;
and
``(II) the amount that the State
certifies to the Secretary the State
will expend, during the fiscal year in
which the State will receive the grant
under this subparagraph--
``(aa) to plug, remediate,
and reclaim orphaned wells;
``(bb) to remediate or
reclaim adjacent land; and
``(cc) to decommission or
remove associated pipelines,
facilities, and infrastructure.
``(ii) Limitations.--
``(I) Fiscal year.--The Secretary
may issue to a State under this
subparagraph not more than 1 grant for
each fiscal year.
``(II) Total funds provided.--The
Secretary may provide to a State under
this subparagraph a total amount equal
to not more than $30,000,000 during the
period of fiscal years 2021 through
2030.
``(d) Tribal Orphaned Well Site Plugging, Remediation, and
Restoration.--
``(1) Establishment.--The Secretary shall establish in the
Bureau of Indian Affairs a program under which the Secretary
shall provide to Indian Tribes grants in accordance with this
subsection.
``(2) Eligible activities.--
``(A) In general.--An Indian Tribe may use a grant
received under this subsection--
``(i) to plug, remediate, or reclaim an
orphaned well on Tribal land of the Indian
Tribe;
``(ii) to remediate soil and restore native
species habitat that has been degraded due to
the presence of an orphaned well or associated
pipelines, facilities, or infrastructure on
Tribal land;
``(iii) to remediate Tribal land adjacent
to orphaned wells and decommission or remove
associated pipelines, facilities, and
infrastructure;
``(iv) to provide an online public
accounting of the cost of plugging,
remediation, and reclamation for each orphaned
well site on Tribal land;
``(v) to identify and characterize
undocumented orphaned wells on Tribal land; and
``(vi) to develop or administer a Tribal
program to carry out any activities described
in clauses (i) through (v).
``(B) Administrative cost limitation.--
``(i) In general.--Except as provided in
clause (ii), an Indian Tribe shall not use more
than 10 percent of the funds received under
this subsection during a fiscal year for
administrative costs under subparagraph
(A)(vi).
``(ii) Exception.--The limitation under
clause (i) shall not apply to any funds used to
carry out an administrative action necessary
for the development of a Tribal program
described in subparagraph (A)(vi).
``(3) Factors for consideration.--In determining whether to
provide to an Indian Tribe a grant under this subsection, the
Secretary shall take into consideration--
``(A) the unemployment rate of the Indian Tribe on
the date on which the Indian Tribe submits an
application under paragraph (4); and
``(B) the estimated number of orphaned wells on the
Tribal land of the Indian Tribe.
``(4) Application.--To be eligible to receive a grant under
this subsection, an Indian Tribe shall submit to the Secretary
an application that includes--
``(A) a description of--
``(i) the Tribal program for orphaned well
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
Indian Tribe to carry out the proposed
activities, or plans to develop such a program;
and
``(ii) the activities to be carried out
with the grant, including an identification of
the estimated health, safety, habitat, and
environmental benefits of plugging,
remediating, or reclaiming orphaned wells and
remediating or reclaiming adjacent land; and
``(B) an estimate of--
``(i) the number of orphaned wells that
will be plugged, remediated, or reclaimed; and
``(ii) the projected cost of--
``(I) plugging, remediating, or
reclaiming orphaned wells;
``(II) remediating or reclaiming
adjacent land; and
``(III) decommissioning or removing
associated pipelines, facilities, and
infrastructure.
``(5) Distribution.--The Secretary shall distribute funds
to an Indian Tribe under this subsection by not later than the
date that is 60 days after the date on which the Indian Tribe
submits to the Secretary a completed application under
paragraph (4).
``(6) Deadline for expenditure.--An Indian Tribe that
receives funds under this subsection shall reimburse the
Secretary in an amount equal to the amount of the funds that
remain unobligated on the date that is 5 years after the date
of receipt of the funds.
``(7) Delegation to secretary.--
``(A) In general.--An Indian Tribe on the Tribal
land of which is located an orphaned well may submit to
the Secretary a request for the Secretary to administer
and carry out plugging, remediation, and reclamation
activities relating to the orphaned well on behalf of
the Indian Tribe.
``(B) Treatment.--For the purposes of subsection
(b), an orphaned well with respect to which an Indian
Tribe of jurisdiction has submitted to the Secretary a
request under subparagraph (A) shall be considered to
be located on Federal land administered by a land
management agency within the Department of the
Interior.
``(e) Technical Assistance.--The Secretary of Energy, in
cooperation with the Secretary and the Interstate Oil and Gas Compact
Commission, shall provide technical assistance to the Federal land
management agencies and oil and gas producing States and Indian Tribes
to support practical and economical remedies for environmental problems
caused by orphaned wells on Federal land, Tribal land, and State and
private land, including the sharing of best practices in the management
of oil and gas well inventories to ensure the availability of funds to
plug, remediate, and restore oil and gas well sites on cessation of
operation.
``(f) Report to Congress.--Not later than 1 year after the date of
enactment of the Revive Economic Growth and Reclaim Orphaned Wells Act
of 2021, and not less frequently than annually thereafter, the
Secretary shall submit to the Committees on Appropriations and Energy
and Natural Resources of the Senate and the Committees on
Appropriations and Natural Resources of the House of Representatives a
report describing the program established and grants awarded under this
section, including--
``(1) an updated inventory of wells located on Federal
land, Tribal land, and State and private land that are--
``(A) orphaned wells; or
``(B) at risk of becoming orphaned wells;
``(2) an estimate of the quantities of--
``(A) methane and other gasses emitted from
orphaned wells; and
``(B) emissions reduced as a result of plugging,
remediating, and reclaiming orphaned wells;
``(3) the number of jobs created and saved through the
plugging, remediation, and reclamation of orphaned wells; and
``(4) the acreage of habitat restored using grants awarded
to plug, remediate, and reclaim orphaned wells and to remediate
or reclaim adjacent land, together with a description of the
purposes for which that land is likely to be used in the
future.
``(g) Effect of Section.--
``(1) No expansion of liability.--Nothing in this section
establishes or expands the responsibility or liability of any
entity with respect to--
``(A) plugging any well; or
``(B) remediating or reclaiming any well site.
``(2) Tribal land.--Nothing in this section--
``(A) relieves the Secretary of any obligation
under section 3 of the Act of May 11, 1938 (25 U.S.C.
396c; 52 Stat. 348, chapter 198), to plug, remediate,
or reclaim an orphaned well located on Tribal land; or
``(B) absolves the United States from a
responsibility to plug, remediate, or reclaim an
orphaned well located on Tribal land or any other
responsibility to an Indian Tribe, including any
responsibility that derives from--
``(i) the trust relationship between the
United States and Indian Tribes;
``(ii) any treaty, law, or Executive order;
or
``(iii) any agreement between the United
States and an Indian Tribe.
``(3) Owner or operator not absolved.--Nothing in this
section absolves the owner or operator of an oil or gas well of
any potential liability for--
``(A) reimbursement of any plugging or reclamation
costs associated with the well; or
``(B) any adverse effect of the well on the
environment.
``(h) Funding.--
``(1) In general.--Out of any funds in the Treasury not
otherwise appropriated, the Secretary of the Treasury shall
transfer the following amounts, to remain available until
September 30, 2030:
``(A) To the Secretary--
``(i) $250,000,000 to carry out the program
under subsection (b);
``(ii) $775,000,000 to provide grants under
subsection (c)(3);
``(iii) $2,000,000,000 to provide grants
under subsection (c)(4);
``(iv) $1,500,000,000 to provide grants
under subsection (c)(5); and
``(v) $150,000,000 to carry out the program
under subsection (d).
``(B) To the Secretary of Energy, $30,000,000 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--
``(i) identifying and characterizing
undocumented orphaned wells; and
``(ii) mitigating the environmental risks
of undocumented orphaned wells.
``(C) To the Interstate Oil and Gas Compact
Commission, $2,000,000 to carry out this section.
``(2) Receipt and acceptance.--The Secretary, the Secretary
of Energy, and the Interstate Oil and Gas Compact Commission
shall be entitled to receive, shall accept, and shall use to
carry out this section the funds transferred under
subparagraphs (A), (B), and (C), respectively, of paragraph
(1), without further appropriation.''.
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