[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.

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    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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