This funding, available to 27 states, will be utilized to plug orphan wells that were left behind by the oil and gas industry.
The Biden administration, through the Interior Department, has unveiled significant funding of more than $650 million from the Bipartisan Infrastructure Law to tackle the issue of abandoned oil and gas wells
Orphan wells pose considerable safety and health risks, primarily due to methane leaks. Methane is a potent greenhouse gas and contributes significantly to climate change as it has a greater capacity to trap heat in the atmosphere compared to carbon dioxide.
According to estimates by the Environmental Defense Fund, approximately 14 million Americans reside within close proximity to an orphaned well. Furthermore, Biden administration research indicates that communities of color, which have been disproportionately affected by redlining practices, are particularly impacted by this infrastructure, hosting a higher concentration of urban gas and oil wells.
Interior Secretary Deb Haaland emphasized the positive impacts of these investments on the environment, community health, and employment opportunities
She stated that the additional funding will enable states to employ more workers to clean up these hazardous sites, reduce methane emissions, and protect the environment. Kansas, for instance, has already received initial funding of $25 million from the Biden administration for plugging its abandoned wells and is eligible for an additional $25 million from the new funding. Overall, the bipartisan law designates a total of $4.7 billion for managing orphan wells, including the $2 billion in grants from the Biden administration which the current $660 million funding derives.
In August 2022, the Biden administration had previously announced $560 million in grants to address orphaned wells. So far, eligible states have utilized the Biden administration that funding to plug nearly 3,000 wells.
States now have until December 31 to apply for the next round of grants. The Biden administration grant amounts will vary, ranging from $1.6 million for Alabama to $79.6 million for Texas. Furthermore, the Biden administration plans to offer performance grants under the infrastructure law, with guidance on this aspect set to be issued later this year.
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