[House Report 117-541]
[From the U.S. Government Publishing Office]
117th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 117-541
======================================================================
ABANDONED WELL REMEDIATION RESEARCH AND DEVELOPMENT ACT
_______
October 7, 2022.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Ms. Johnson of Texas, from the Committee on Science, Space, and
Technology, submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 4270]
[Including cost estimate of the Congressional Budget Office]
The Committee on Science, Space, and Technology, to whom
was referred the bill (H.R. 4270) to amend the Energy Policy
Act of 2005 to direct the Secretary of Energy to carry out a
research, development, and demonstration program with respect
to abandoned wells, and for other purposes, having considered
the same, reports favorably thereon with an amendment and
recommends that the bill as amended do pass.
CONTENTS
Page
I. Amendment........................................................
II. Purpose of the Bill............................................. 3
III. Background and Need for the Legislation......................... 3
IV. Committee Hearings.............................................. 3
V. Committee Consideration and Votes............................... 4
VI. Summary of Major Provisions of the Bill......................... 4
VII. Section-By-Section Analysis (By Title and Section).............. 4
VIII. Committee Views................................................. 5
IX. Cost Estimate................................................... 5
X. Congressional Budget Office Cost Estimate....................... 5
XI. Compliance with Public Law 104-4 (Unfunded Mandates)............ 6
XII. Committee Oversight Findings and Recommendations................ 6
XIII. Statement on General Performance Goals and Objectives........... 6
XIV. Federal Advisory Committee Statement............................ 6
XV. Duplication of Federal Programs................................. 7
XVI. Earmark Identification.......................................... 7
XVII. Applicability to the Legislative Branch......................... 7
XVIII.Statement on Preemption of State, Local, or Tribal Law.......... 7
XIX. Changes in Existing Law Made by the Bill, As Reported........... 7
XX. Minority Views................................................. 10
XXI. Proceedings of Full Committee Markup........................... 11
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Abandoned Well Remediation Research
and Development Act''.
SEC. 2. AMENDMENT TO THE ENERGY POLICY ACT OF 2005.
The Energy Policy Act of 2005 is amended--
(1) in subtitle F of title IX (42 U.S.C. 16291 et seq.), by
inserting after section 969D the following:
``SEC. 969E. ABANDONED WELLS RESEARCH, DEVELOPMENT, AND DEMONSTRATION
PROGRAM.
``(a) Establishment.--Not later than 120 days after the date of
enactment of the Abandoned Well Remediation Research and Development
Act, the Secretary of Energy shall, in coordination with relevant
Federal and state agencies and entities, establish a research,
development, and demonstration program to improve--
``(1) data collection on the location of abandoned wells;
``(2) the plugging, remediation, reclamation, and repurposing
of abandoned wells; and
``(3) strategies to mitigate potential environmental impacts
of documented and undocumented abandoned wells.
``(b) Activities.--The research, development, and demonstration under
subsection (a) shall include activities to improve--
``(1) remote sensor capabilities, LiDAR capabilities, optical
gas imaging, magnetic survey technology, and any other
technologies relevant to the efficient identification of
abandoned wells;
``(2) understanding of how certain parameters of abandoned
wells affect methane emission rates of such wells, including
paramaters such as well age, well depth, geology, construction,
case material, and geographic region;
``(3) the efficiency and cost-efficacy of processes for
plugging, remediating, reclaiming, and repurposing abandoned
wells, including--
``(A) improvement of processes and technologies for
the unique challenges associated with plugging remote
abandoned wells;
``(B) use of low carbon, lightweight cement or use of
alternative materials and additives for plugging
purposes; and
``(C) repurposing of abandoned wells for alternative
uses, including geothermal power production or carbon
capture, utilization, and storage; and
``(4) understanding of the impacts of abandoned wells on
groundwater quality and contamination.
``(c) Coordination.--In carrying out the program established in (a),
the Secretary shall ensure coordination of these activities with
institutions of higher education, the Department of Energy National
Laboratories, and the private sector.
``(d) Abandoned Well Defined.--In this section, the term `abandoned
well' means a well originally drilled in connection with oil and gas
operations that is not being used, has not been plugged, and has no
anticipated use in oil and gas operations.
``(e) Authorization of Appropriations.--There are authorized to be
appropriated for purposes of this section--
``(1) $30,000,000 for fiscal year 2022;
``(2) $31,250,000 for fiscal year 2023;
``(3) $32,500,000 for fiscal year 2024;
``(4) $33,750,000 for fiscal year 2025; and
``(5) $35,000,000 for fiscal year 2026.''; and
(2) in section 1(b) (42 U.S.C. 15801 note), in the table of
contents, by inserting after the matter related to section 969D
the following:
``Sec. 969E. Abandoned wells research, development, and demonstration
program.''.
II. Purpose of the Bill
The purpose of the bill is to amend the Energy Act of 2005
to create an abandoned wells research, development, and
demonstration program at the Department of Energy (DOE) with
respect to abandoned wells, and for other purposes. H.R. 4270
is sponsored by Mr. Lamb and co-sponsored by Chairwoman
Johnson, Ranking Member Lucas, and Mrs. Bice.
III. Background and Need for the Legislation
Abandoned oil and gas wells are a growing problem in the
U.S. as we transition to a clean energy economy. Some unplugged
wells date back as early as the 1850s and continually emit
methane and cause environmental damage. It is unclear how many
abandoned wells there are in the country with estimates ranging
from 700,000 to 3,000,000. The current plugging and remediation
process is challenging due to factors such as difficulty
locating wells, minimal understanding of methane emission
rates, and cost barriers.
There is a need for federal investment to address these
challenges, and the Department of Energy is well equipped to
carry out this research utilizing the Fossil Energy and Carbon
Management Office and through the national lab network.
Improving the plugging and remediation process for abandoned
wells could reduce the costs of plugging these wells--which
currently range between $30,000 to $1,000,000 per well, improve
the efficiency of remediation, mitigate environmental harms,
and reduce methane emissions. This includes improving the
process for plugging remote wells, developing a greater
understanding of what causes ``super emitters'', researching
use of low carbon cement for plugging, and repurposing
abandoned wells for geothermal power production and carbon
capture, utilization, and storage. The program will also
improve technology to pinpoint and map the location of wells,
as an understanding of location and number of abandoned wells
in the country would be essential to developing a broad
plugging program.
IV. Committee Hearings
Pursuant to clause 3(c)(6) of rule XIII of the Rules of the
House of Representatives, the Committee designates the
following hearings as having been used to develop or consider
the legislation:
On May 27th, 2021, the Full Committee held a hearing titled
``Overview of the Science and Energy Research Enterprise of the
U.S. Department of Energy,'' that examined the research,
development, demonstration, and commercialization programs and
activities carried out by DOE. This included a discussion on
how DOE can best address abandoned oil and gas wells through
Research and Development to locate abandoned wells, improve the
plugging and remediation process, mitigate environmental harms,
and reduce methane emissions.
The following witness testified:
The Honorable Jennifer Granholm, Secretary
of Energy, U.S. Department of Energy.
V. Committee Consideration and Votes
The Committee on Science, Space, and Technology met to
consider H.R. 4270 on January 19, 2022.
Mr. Weber offered an amendment to clarify the focus of
research and development on strategies to mitigate potential
environmental impacts of abandoned wells. The amendment was
agreed to by a voice vote.
Mr. McNerney offered an amendment to improve the
understanding of how abandoned wells impact groundwater quality
and contamination as an authorized activity. The amendment was
agreed to by a voice vote.
Mr. Perlmutter offered an amendment to expand relevant
stakeholders in the abandoned well program to specifically
include universities, national labs, and the private sector.
The amendment was agreed to by a voice vote.
Chairwoman Johnson moved that the Committee favorably
report the bill, H.R. 4270, as amended, to the House of
Representatives with the recommendation that the bill be
approved. The motion was agreed to by a voice vote.
VI. Summary of Major Provisions of the Bill
The Abandoned Well Remediation Research and Development Act
directs the Secretary of Energy to establish a program of
research, development, and demonstration of technologies,
methods, and mitigation strategies to support and accelerate
the remediation of abandoned wells. This is in order to reduce
emissions, mitigate environmental harms, and assist the mapping
of abandoned wells.
VII. Section-by-Section Analysis (By Title and Section)
Sec. 1. Short title
Abandoned Well Remediation Research and Development Act.
Sec. 2. Amendment to the Energy Policy Act of 2005
This section authorizes a DOE research, development, and
demonstration program to improve data collection on the
location of abandoned wells, the plugging, remediation,
reclamation, and repurposing of abandoned wells, and strategies
to mitigate potential environmental impacts of abandoned wells.
It authorizes research, development, and demonstration
activities to improve relevant technologies to the efficient
identification of abandoned wells. This section also authorizes
activities to improve understanding of how certain parameters
of abandoned wells affect methane emission rates of such wells.
It authorizes activities to address the efficiency and cost-
efficacy of processes for plugging, remediating, reclaiming,
and repurposing abandoned wells. Finally, the program
authorizes activities to improve understanding of the impacts
of abandoned wells on groundwater quality and contamination.
It authorizes the appropriation of $30 million for this
program in FY22, rising to $35 million in FY26.
VIII. Committee Views
It is the view of the Committee that in carrying out the
directive laid out in the bill to improve understanding of how
certain parameters of abandoned wells affect methane emission
rates of such wells, that special attention is paid to super
emitters, or wells that emit much more methane that other
similar wells. A deeper understanding of what causes super
emitters would help limit methane emissions, as super emitters
account for a high percentage of abandoned well emissions.
IX. Cost Estimate
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives, the Committee adopts as its own the
estimate of new budget authority, entitlement authority, or tax
expenditures or revenues contained in the cost estimate
prepared by the Director of the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1974.
X. Congressional Budget Office Cost Estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, May 5, 2022.
Hon. Eddie Bernice Johnson,
Chairwoman, Committee on Science, Space, and Technology,
House of Representatives, Washington, DC.
Dear Madam Chairwoman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 4270, the
Abandoned Well Remediation Research and Development Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Aaron
Krupkin.
Sincerely,
Phillip L. Swagel,
Director.
Enclosure.
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H.R. 4270 would authorize the appropriation of specific
amounts each year from 2022 through 2026, totaling $163
million, for the Department of Energy (DOE), in coordination
with other federal and state agencies, to establish an
abandoned oil and gas well research and demonstration program.
Under the program, DOE would focus on developing technologies
and strategies to improve abandoned well identification,
increase the efficiency of abandoned well plugging and
repurposing, and mitigate the effects of abandoned wells on the
environment.
For this estimate, CBO assumes that the bill will be
enacted near the end of fiscal year 2022 and that the specified
amounts will be appropriated each year. However, the
Infrastructure Investment and Jobs Act (Public Law 117-58)
appropriated $30 million to DOE for similar activities in
2022--an amount equal to what H.R. 4270 would authorize for
that same year. Accordingly, CBO's estimate of the budgetary
effects of the bill reflects authorizations totaling $133
million over the 2022-2026 period--the difference between the
amounts specified in the bill and the amounts provided under
current law.
Based on historical spending patterns for similar programs,
CBO estimates that implementing H.R. 4270 would cost $69
million over the 2022-2026 period and $64 million after 2026.
The costs of the legislation, detailed in Table 1, largely
fall within budget function 270 (energy).
TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 4270
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, millions of dollars--
-------------------------------------------------------------------------------------------
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2022-2026 2022-2031
--------------------------------------------------------------------------------------------------------------------------------------------------------
Authorizationa.............................................. 0 31 33 34 35 0 0 0 0 0 133 133
Estimated Outlays........................................... 0 5 14 22 28 26 19 11 6 2 69 133
--------------------------------------------------------------------------------------------------------------------------------------------------------
aH.R. 4270 would authorize the appropriation of $30 million in 2022 for the Department of Energy to conduct the activities required under the bill.
However, the Infrastructure Investment and Jobs Act (Public Law 117-58) appropriated that amount in 2022 for similar activities. As a result, CBO
estimates that H.R. 4270 would not affect spending subject to appropriation in 2022.
The CBO staff contact for this estimate is Aaron Krupkin.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Director of Budget Analysis.
XI. Compliance With Public Law 104-4 (Unfunded Mandates)
H.R. 4270 contains no unfunded mandates.
XII. Committee Oversight Findings and Recommendations
The Committee's oversight findings and recommendations are
reflected in the body of this report.
XIII. Statement on General Performance Goals and Objectives
Pursuant to clause (3)(c) of rule XIII of the Rules of the
House of Representatives, the goals of H.R. 4270 are to
accelerate the remediation of abandoned wells.
XIV. Federal Advisory Committee Statement
No Federal Advisory Committees are created by H.R. 4270.
XV. Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee finds that no provision
of H.R. 4270 establishes or reauthorizes a program of the
federal government known to be duplicative of another federal
program, including any program that was included in a report to
Congress pursuant to section 21 of Public Law 111-139 or the
most recent Catalog of Federal Domestic Assistance.
XVI. Earmark Identification
Pursuant to clauses 9(e), 9(f), and 9(g) of rule XXI, the
Committee finds that H.R. 4270 contains no earmarks, limited
tax benefits, or limited tariff benefits.
XVII. Applicability to the Legislative Branch
The Committee finds that H.R. 4270 does not relate to the
terms and conditions of employment or access to public services
or accommodations within the meaning of section 102(b)(3) of
the Congressional Accountability Act (Public Law 104-1).
XVIII. Statement on Preemption of State, Local, or Tribal Law
This bill is not intended to preempt any state, local, or
tribal law.
XIX. Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (new matter is
printed in italics and existing law in which no change is
proposed is shown in roman):
ENERGY POLICY ACT OF 2005
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy
Policy Act of 2005''.
(b) Table of Contents.--The table of contents for this Act is
as follows:
Sec. 1. Short title; table of contents.
* * * * * * *
TITLE IX--RESEARCH AND DEVELOPMENT
* * * * * * *
Subtitle F--Fossil Energy
* * * * * * *
Sec. 969E. Abandoned wells research, development, and demonstration
program.
* * * * * * *
TITLE IX--RESEARCH AND DEVELOPMENT
* * * * * * *
Subtitle F--Fossil Energy
* * * * * * *
SEC. 969E. ABANDONED WELLS RESEARCH, DEVELOPMENT, AND DEMONSTRATION
PROGRAM.
(a) Establishment.--Not later than 120 days after the date of
enactment of the Abandoned Well Remediation Research and
Development Act, the Secretary of Energy shall, in coordination
with relevant Federal and state agencies and entities,
establish a research, development, and demonstration program to
improve--
(1) data collection on the location of abandoned
wells;
(2) the plugging, remediation, reclamation, and
repurposing of abandoned wells; and
(3) strategies to mitigate potential environmental
impacts of documented and undocumented abandoned wells.
(b) Activities.--The research, development, and demonstration
under subsection (a) shall include activities to improve--
(1) remote sensor capabilities, LiDAR capabilities,
optical gas imaging, magnetic survey technology, and
any other technologies relevant to the efficient
identification of abandoned wells;
(2) understanding of how certain parameters of
abandoned wells affect methane emission rates of such
wells, including paramaters such as well age, well
depth, geology, construction, case material, and
geographic region;
(3) the efficiency and cost-efficacy of processes for
plugging, remediating, reclaiming, and repurposing
abandoned wells, including--
(A) improvement of processes and technologies
for the unique challenges associated with
plugging remote abandoned wells;
(B) use of low carbon, lightweight cement or
use of alternative materials and additives for
plugging purposes; and
(C) repurposing of abandoned wells for
alternative uses, including geothermal power
production or carbon capture, utilization, and
storage; and
(4) understanding of the impacts of abandoned wells
on groundwater quality and contamination.
(c) Coordination.--In carrying out the program established in
(a), the Secretary shall ensure coordination of these
activities with institutions of higher education, the
Department of Energy National Laboratories, and the private
sector.
(d) Abandoned Well Defined.--In this section, the term
``abandoned well'' means a well originally drilled in
connection with oil and gas operations that is not being used,
has not been plugged, and has no anticipated use in oil and gas
operations.
(e) Authorization of Appropriations.--There are authorized to
be appropriated for purposes of this section--
(1) $30,000,000 for fiscal year 2022;
(2) $31,250,000 for fiscal year 2023;
(3) $32,500,000 for fiscal year 2024;
(4) $33,750,000 for fiscal year 2025; and
(5) $35,000,000 for fiscal year 2026.
* * * * * * *
XX. Minority Views
It is the view of Representative Bice that both operating
and orphaned wells can involve confidential business
information and proprietary data that belongs to the property
holder or well owner. As the Department undertakes new research
to understand emissions of wells and associated monitoring
technologies, it is the view of the Minority that these
activities should not include or lead to mapping, monitoring,
or collection of data associated with privately owned wells
without the consent of the necessary companies or parties.
Stephanie I. Bice.
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