• States can apply for up to $40 million each.
• Orphaned wells threaten water and air quality.
• New guidance aims to create jobs.

January 16, 2025 — The Department of the Interior released final guidance yesterday, outlining how states can each apply for up to $40 million in Regulatory Improvement Grant funding under President Biden’s Bipartisan Infrastructure Law. The announcement completes the Department’s roll-out of all funding categories for orphaned well clean-up, available to states, Tribes, and federal agencies.

This initiative stems from the nation’s largest investment in addressing legacy pollution: $4.7 billion designated to plug orphaned oil and gas wells. These wells pose health and safety challenges, harming community spaces and contaminating surface and groundwater. They also emit toxic air pollutants and methane, a potent greenhouse gas. The Department reports that, so far, states have already plugged nearly 9,500 orphaned wells since the law’s enactment.

Secretary Deb Haaland emphasized the significance of this progress: “I am incredibly proud of the work the Department of the Interior has done to move quickly and efficiently to implement this once-in-a-generation investment in tackling legacy pollution, provided through President Biden’s Investing in America agenda. Addressing orphaned wells cuts methane emissions, advances environmental justice for communities that have too long been left behind, and creates jobs. By releasing the final guidance today, this Department has accomplished a significant milestone for the orphaned wells program that will lead to improved lives, cleaner air and water, and economic revitalizations nationwide.”

Regulatory Improvement Grants.

Under the final guidance, states may pursue two types of Regulatory Improvement Grants. The Plugging Standards Grants (up to $20 million each) encourage states to establish protocols that effectively plug wells and protect natural resources, health, and safety. The Program Improvement Grants (up to $20 million each) promote reforms designed to lower the future burden of orphaned wells by advocating stronger financial assurance and alternative funding mechanisms.

Funding is also allocated to Tribes and federal land managers. More than $81 million has already been awarded to Tribes, and $250 million is set aside for clean-up efforts on public lands, including national parks and wildlife refuges. This approach aligns with the Biden-Harris administration’s environmental justice goals under the Justice40 Initiative, aiming to support disadvantaged communities nationwide.

Image of an abandoned oil well from the Department of Interior press release.

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