[House Report 117-645]
[From the U.S. Government Publishing Office]


117th Congress    }                                     {       Report
                         HOUSE OF REPRESENTATIVES
 2d Session       }                                     {      117-645

======================================================================


 
               ORPHANED WELL CLEANUP AND JOBS ACT OF 2021

                                _______
                                

 December 15, 2022.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Grijalva, from the Committee on Natural Resources, submitted the 
                               following

                              R E P O R T

                             together with

                            DISSENTING VIEWS

                        [To accompany H.R. 2415]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Natural Resources, to whom was referred 
the bill (H.R. 2415) to amend the Energy Policy Act of 2005 to 
require the Secretary of the Interior to establish a program to 
permanently plug, remediate, and reclaim orphaned wells and the 
surrounding lands and to provide funds to States and Tribal 
Governments to permanently plug, remediate, and reclaim 
orphaned wells and the surrounding lands, and for other 
purposes, having considered the same, reports favorably thereon 
with an amendment and recommends that the bill as amended do 
pass.
    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 ``Orphaned Well Cleanup and Jobs Act of 
2021''.

SEC. 2. ORPHANED WELL SITE PLUGGING, REMEDIATION, AND RESTORATION.

  (a) In General.--Section 349 of the Energy Policy Act of 2005 (Public 
Law 109-58; 42 U.S.C. 15907) is amended to read as follows:

``SEC. 349. ORPHANED WELL SITE PLUGGING, REMEDIATION, AND RESTORATION.

  ``(a) Federal Program.--
          ``(1) Establishment.--The Secretary, in cooperation with the 
        Secretary of Agriculture and affected Indian Tribes, shall 
        establish a program not later than 180 days after the date of 
        enactment of this section to permanently plug orphaned wells 
        and remediate and reclaim orphaned wells located on land 
        administered by the land management agencies within the 
        Department of the Interior and the Department of Agriculture.
          ``(2) Activities.--The program under paragraph (1) shall--
                  ``(A) include a means of identifying, characterizing, 
                and inventorying orphaned wells on Federal lands and 
                ranking orphaned wells for priority in permanent 
                plugging, remediation, and reclamation, based on public 
                health and safety, potential environmental harm, and 
                other land use priorities;
                  ``(B) distribute funding according to the priorities 
                identified under subparagraph (A) for--
                          ``(i) permanently plugging orphaned wells;
                          ``(ii) remediating and reclaiming well pads 
                        and access roads associated with orphaned 
                        wells;
                          ``(iii) remediating soil and restoring native 
                        species habitat that has been degraded due to 
                        the presence of orphaned wells; and
                          ``(iv) remediating lands, including access 
                        roads, adjacent to orphaned wells and 
                        decommissioning or removing pipelines, 
                        facilities, and infrastructure associated with 
                        the orphaned well;
                  ``(C) provide a public accounting of the costs of 
                permanently plugging, remediating, and reclaiming each 
                orphaned well;
                  ``(D) seek to determine the identities of potentially 
                responsible parties associated with the orphaned well, 
                or their sureties or guarantors, to the extent such 
                information can be ascertained, and make efforts to 
                obtain reimbursement for expenditures to the extent 
                practicable;
                  ``(E) to the maximum extent possible, support 
                research and development efforts aimed at 
                investigating, measuring, and tracking emissions of 
                methane and other gases associated with orphaned wells;
                  ``(F) measure and track contamination of groundwater 
                or surface water associated with orphaned wells; and
                  ``(G) reduce the negative effects of orphaned wells 
                on environmental justice communities.
          ``(3) Define orphaned well.--Not later than 180 days after 
        the date of enactment of this section, the Secretary shall 
        issue a final rule defining the term `orphaned well' as such 
        term applies to Federal and Tribal land for the purposes of 
        this section.
          ``(4) Idled wells.--
                  ``(A) In general.--The Secretary, acting through the 
                Director of the Bureau of Land Management, shall 
                annually review all idled wells on Federal lands and 
                take such measures as such Director determines 
                appropriate to reduce such Director's idled well 
                inventory.
                  ``(B) Definition of idled well.--Not later than 6 
                months after the date of enactment of this section, the 
                Secretary, acting through the Director of the Bureau of 
                Land Management, shall establish a definition for the 
                term `idled well' for the purposes of this section.
          ``(5) Cooperation and consultations.--In carrying out the 
        program under paragraph (1), the Secretary shall--
                  ``(A) work cooperatively with the Secretary of 
                Agriculture and the States within which Federal land is 
                located; and
                  ``(B) consult with affected Indian Tribes, the 
                Secretary of Energy, and the Interstate Oil and Gas 
                Compact Commission.
  ``(b) State Orphaned Well Site Plugging, Remediation, and 
Restoration.--
          ``(1) In general.--
                  ``(A) Activities.--The Secretary shall provide 
                funding to States as described in this section for any 
                of the following purposes:
                          ``(i) To permanently plug, remediate, and 
                        reclaim orphaned wells located on State- and 
                        privately-owned land.
                          ``(ii) To identify and characterize 
                        undocumented orphaned wells on State and 
                        private lands.
                          ``(iii) To rank orphaned wells on State and 
                        private lands based on factors including public 
                        health and safety, potential environmental 
                        harm, and 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 emissions of 
                        methane and other gases associated with 
                        orphaned wells.
                          ``(vi) To measure and track contamination of 
                        groundwater or surface water associated with 
                        orphaned wells.
                          ``(vii) To remediate soil and restore native 
                        species habitat that have been degraded due to 
                        the presence of orphaned wells.
                          ``(viii) To remediate lands, including access 
                        roads, adjacent to orphaned wells and 
                        decommission or remove pipelines, facilities, 
                        and infrastructure associated with the orphaned 
                        well.
                          ``(ix) To take such measures as such State 
                        determines necessary to reduce the negative 
                        effects of orphaned wells on environmental 
                        justice communities.
                          ``(x) To administer a program to carry out 
                        activities described in clauses (i) through 
                        (ix).
                  ``(B) Limitation.--Except for funds received by a 
                State under paragraph (2)(A)(ii), a State may not use 
                more than 10 percent of the funds received under this 
                section in any fiscal year for the purpose described in 
                paragraph (1)(A)(x).
          ``(2) Initial grants.--
                  ``(A) In general.--The Secretary shall distribute--
                          ``(i) not more than $25,000,000 to each State 
                        that--
                                  ``(I) is a Member State or Associate 
                                Member State of the Interstate Oil and 
                                Gas Compact Commission;
                                  ``(II) requests funding under this 
                                clause not later than 6 months after 
                                the date of enactment of this section;
                                  ``(III) has at least one documented 
                                orphaned well;
                                  ``(IV) certifies to the Secretary 
                                that such State can use at least 90 
                                percent of the requested funding to 
                                issue new contracts, amend existing 
                                contracts, or issue grants for 
                                permanent plugging, remediation, and 
                                reclamation work within 180 days of 
                                receipt of funds; and
                                  ``(V) describes to the Secretary how 
                                funds received under this clause will 
                                employ individuals who have lost 
                                employment during the period beginning 
                                on March 1, 2020, and ending on the 
                                date on which such State requests 
                                funding under subclause (II); 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) such State has a 
                                        permanent plugging, 
                                        remediation, and reclamation 
                                        program for orphaned wells or 
                                        the capacity to start such a 
                                        program; or
                                          ``(bb) such funds will be 
                                        used to conduct the 
                                        administrative work necessary 
                                        to put together an application 
                                        to receive funds under 
                                        paragraph (3).
                  ``(B) Distribution.--The Secretary shall disburse 
                funds to a State under this subparagraph not later than 
                30 days after such State makes a certification to the 
                Secretary that such State is eligible to receive such 
                funds.
                  ``(C) 2 years to expend funds.--
                          ``(i) In general.--A State that receives 
                        funds under this paragraph shall reimburse the 
                        Secretary in an amount equal to the amount of 
                        any unobligated funds that remain 2 years after 
                        the date on which such State receives funds 
                        under this paragraph.
                          ``(ii) Use of reimbursed funds.--The 
                        Secretary may use funds reimbursed under this 
                        subparagraph to carry out any activity under 
                        subsection (a)(2).
                  ``(D) Report.--
                          ``(i) In general.--Not later than 15 months 
                        after the date on which a State receives funds 
                        under this paragraph, such State shall submit a 
                        report to the Secretary detailing how the State 
                        adhered to the certifications required by 
                        subparagraph (A).
                          ``(ii) Public access.--The Secretary shall 
                        make available on a publicly accessible website 
                        each report submitted under clause (i).
          ``(3) Formula grants.--
                  ``(A) Formula.--
                          ``(i) In general.--The Secretary shall 
                        establish a formula for the distribution of 
                        funds under this paragraph to the States 
                        described in clause (ii). Such formula, with 
                        respect to an applicant State, shall account 
                        for the following factors:
                                  ``(I) The job losses in the oil and 
                                gas industry between March 1, 2020, and 
                                the date of enactment of this section.
                                  ``(II) The number of documented 
                                orphaned wells and associated 
                                facilities and the projected cost to 
                                permanently plug and reclaim such 
                                wells.
                          ``(ii) Notification.--A State is described in 
                        this clause if, not later than 45 days after 
                        the date of enactment of this section, such 
                        State submits a notice to the Secretary that 
                        such State intends to submit an application 
                        under subparagraph (B) and includes in such 
                        notification the information described in 
                        subclauses (I) through (II) of clause (i) with 
                        respect to such State.
                          ``(iii) Publication.--The Secretary shall, 
                        not later than 30 days after the date described 
                        in clause (ii), publish on a public website the 
                        amount that each State described in clause (ii) 
                        is eligible to receive under the formula 
                        established under clause (i).
                  ``(B) Application.--A State may apply to receive 
                funds under this paragraph by submitting an application 
                including--
                          ``(i) a description of--
                                  ``(I) the State program for orphaned 
                                well permanent 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 program to carry 
                                out the proposed activities;
                                  ``(II) the activities to be carried 
                                out with the grant, including an 
                                identification of the estimated health, 
                                safety, habitat, and environmental 
                                benefits of permanent plugging, 
                                remediating, or reclaiming the orphaned 
                                wells; and
                                  ``(III) how the information regarding 
                                the State's activities under this 
                                subsection will be made available on a 
                                public website;
                          ``(ii) an estimate of--
                                  ``(I) the number of orphaned wells 
                                that will be permanently plugged, 
                                remediated, or reclaimed;
                                  ``(II) the projected cost of 
                                permanently plugging, remediating, or 
                                reclaiming orphaned wells, adjacent 
                                lands, and access roads;
                                  ``(III) the amount of that 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 lands;
                                  ``(IV) the number of jobs that will 
                                be created or saved through the 
                                activities to be funded under this 
                                subsection; and
                                  ``(V) the amount of funds to be spent 
                                on administrative costs;
                          ``(iii) a certification that any financial 
                        assurance instruments, including bonds, 
                        available to cover permanent plugging, 
                        remediation, or reclamation costs will be used 
                        by the State; and
                          ``(iv) the definitions and processes used by 
                        the State to formally declare a well orphaned 
                        or, if the State uses different terminology, 
                        otherwise eligible for permanent plugging, 
                        remediation, and reclamation by the State, 
                        including the steps the State has taken to 
                        identify the well's most recent operator.
                  ``(C) Review of state definitions and processes.--The 
                Secretary may only distribute funds to a State under 
                this paragraph if the Secretary determines that--
                          ``(i) such State has taken appropriate steps 
                        to protect taxpayers from unnecessarily paying 
                        for permanent plugging, remediation, and 
                        reclamation costs;
                          ``(ii) the processes of such State for 
                        declaring a well eligible for permanent 
                        plugging by the State are reasonable; and
                          ``(iii) the definition provided by the State 
                        for the term `orphaned well' (or an alternate 
                        term, if applicable), if such term differs from 
                        the definition given such term in subsection 
                        (i)(5)(A)(ii), is reasonable.
                  ``(D) 5 years to expend funds.--A State that receives 
                funds under this paragraph shall reimburse the 
                Secretary in an amount equal to the amount of any 
                unobligated funds that remain 5 years after the date on 
                which such State receives funds under this paragraph.
                  ``(E) Consultation.--In making a determination under 
                this paragraph regarding the eligibility of a State to 
                receive funds, the Secretary shall consult with the 
                Administrator of the Environmental Protection Agency, 
                the Secretary of Energy, and the Interstate Oil and Gas 
                Compact Commission.
                  ``(F) Consideration timeline.--Not later than 60 days 
                after receiving a completed application that meets the 
                requirements of this section from a State under this 
                paragraph, the Secretary shall issue a grant to such 
                State.
          ``(4) Discretionary grants.--
                  ``(A) In general.--
                          ``(i) Regulatory improvement grant.--
                                  ``(I) In general.--Beginning on the 
                                date that is 6 months after the date on 
                                which the first grant is issued under 
                                paragraph (2), the Secretary may 
                                provide funding in an amount not to 
                                exceed $20,000,000 per grant to a State 
                                if the State meets one of the following 
                                criteria:
                                          ``(aa) The State--
                                                  ``(AA) requires, or 
                                                will require by the 
                                                date that is not later 
                                                than five years after 
                                                the date of enactment 
                                                of the Orphaned Well 
                                                Cleanup and Jobs Act of 
                                                2021, the operator of 
                                                each well subject to 
                                                regulation by the State 
                                                to capture (which such 
                                                term means the physical 
                                                containment of gas for 
                                                transportation to 
                                                market or productive 
                                                use, including 
                                                reinjection and other 
                                                on-site uses) at least 
                                                98 percent of all gas 
                                                produced each year from 
                                                each such well; and
                                                  ``(BB) prohibits, or 
                                                will prohibit by the 
                                                date that is not later 
                                                than five years after 
                                                the date of enactment 
                                                of the Orphaned Well 
                                                Cleanup and Jobs Act of 
                                                2021, venting and 
                                                flaring of gas produced 
                                                from each such well, 
                                                except in the case of 
                                                emergencies or 
                                                equipment failures as 
                                                defined under the 
                                                applicable law of such 
                                                State.
                                          ``(bb) During the period of 
                                        10 years that precedes the date 
                                        on which the State applies for 
                                        a grant under this paragraph, 
                                        the State strengthened its 
                                        plugging standards and 
                                        procedures 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.
                                          ``(cc) The State has made 
                                        improvements to State programs 
                                        designed to prevent future 
                                        orphaned well burdens, such as 
                                        bonding reform or other 
                                        financial assurance reform, 
                                        alternative funding mechanisms 
                                        for orphaned well programs, and 
                                        reforms to well transfer and 
                                        temporary abandonment programs 
                                        in the 10 years preceding the 
                                        date that the States applies 
                                        for a grant under this 
                                        paragraph.
                                  ``(II) Limitation.--The Secretary may 
                                only issue one grant per criterion per 
                                State under this clause.
                          ``(ii) Matching grant.--
                                  ``(I) In general.--Beginning on the 
                                date that is 6 months after the date on 
                                which the first grant is issued under 
                                paragraph (2), the Secretary may 
                                provide funding to a State in an amount 
                                equal to the difference between--
                                          ``(aa) the amount of funds 
                                        such State expended on average 
                                        in fiscal years 2010 through 
                                        2019 to permanently plug, 
                                        remediate, and reclaim orphaned 
                                        wells and associated 
                                        facilities; and
                                          ``(bb) the amount of funds 
                                        such State certifies to the 
                                        Secretary such State will 
                                        expend for such purposes in the 
                                        fiscal year in which such State 
                                        will receive such grant.
                                  ``(II) Annual grant.--The Secretary 
                                may issue one grant per State per 
                                fiscal year under this clause.
                                  ``(III) Limitation on total funds 
                                provided to a state.--The Secretary may 
                                not provide a total of more than 
                                $30,000,000 to a State under this 
                                clause during the period of fiscal 
                                years 2021 through 2031.
                  ``(B) Application.--
                          ``(i) In general.--A State may apply to 
                        receive funds under this paragraph by 
                        submitting an application including--
                                  ``(I) each of the elements required 
                                in an application under paragraph 
                                (3)(B);
                                  ``(II) a description of measures such 
                                State has taken to address orphaned 
                                wells, including by increasing State 
                                spending on well permanent plugging, 
                                remediation, and reclamation and by 
                                improving regulation of oil and gas 
                                wells; and
                                  ``(III) a description of how such 
                                State will use such funds to--
                                          ``(aa) lower unemployment in 
                                        such State; and
                                          ``(bb) improve economic 
                                        conditions in economically 
                                        distressed areas of such State.
                          ``(ii) Consultation.--In making a 
                        determination to issue a grant under this 
                        paragraph, the Secretary shall consult with the 
                        Administrator of the Environmental Protection 
                        Agency and the Secretary of Energy.
                          ``(iii) Reimbursement for failure to maintain 
                        protections.--A State that receives funds under 
                        this paragraph shall reimburse the Secretary 
                        any funds received if, during the 10 year 
                        period beginning on the date of receipt of 
                        funds under this paragraph, such State enacts a 
                        statute or regulation that, if such statute or 
                        regulation were in effect when the State 
                        submitted an application under this paragraph, 
                        would have prevented such State from being 
                        eligible to receive funds under subparagraph 
                        (A)(i)(I).
                          ``(iv) Consideration timeline.--Not later 
                        than 60 days after receiving an application 
                        from an eligible State under this paragraph, 
                        the Secretary shall make a grant or reject such 
                        application.
          ``(5) State report.--
                  ``(A) In general.--Each State that receives funding 
                under this subsection shall submit a report to the 
                Secretary each year that provides--
                          ``(i) the number of orphaned wells that have 
                        been permanently plugged, remediated, or 
                        reclaimed;
                          ``(ii) the cost of permanently plugging, 
                        remediating, or reclaiming orphaned wells, 
                        adjacent lands, and access roads;
                          ``(iii) the amount of that cost offset by the 
                        forfeiture of financial assurance instruments, 
                        the salvage of well-site equipment, or other 
                        proceeds from the orphaned wells;
                          ``(iv) an estimate of the number of jobs 
                        created or saved through the activities funded 
                        under this subsection;
                          ``(v) the funds spent on administrative 
                        costs;
                          ``(vi) a description of how the State is 
                        working to decrease the effects of orphaned 
                        wells on environmental justice communities; and
                          ``(vii) survey results from State efforts to 
                        identify undocumented orphaned wells.
                  ``(B) Public access.--The Secretary shall make 
                available on a publicly accessible website each report 
                submitted under subparagraph (A).
  ``(c) Tribal Orphaned Well Site Plugging, Remediation, and 
Restoration.--
          ``(1) Establishment.--The Secretary shall establish a program 
        in the Bureau of Indian Affairs to provide grants to Indian 
        Tribes for the purposes described in paragraph (2).
          ``(2) Activities.--The purposes described in this paragraph 
        are to--
                  ``(A) permanently plug, remediate, and reclaim 
                orphaned wells on Tribal land;
                  ``(B) remediate soil and restore native species 
                habitat that has been degraded due to the presence of 
                orphaned wells on Tribal land;
                  ``(C) remediate lands, including access roads, 
                adjacent to orphaned wells and decommission or remove 
                pipelines, facilities, and infrastructure associated 
                with the orphaned well on Tribal lands;
                  ``(D) provide an online public accounting of the cost 
                of permanent plugging, remediation, and reclamation for 
                each orphaned well site on Tribal land, excluding 
                confidential or sensitive Tribal trust or business 
                information (as determined by the Secretary);
                  ``(E) identify and characterize undocumented orphaned 
                wells on Tribal land; and
                  ``(F) administer a Tribal program to carry out 
                activities described in subparagraphs (A) through (E).
          ``(3) Considerations.--In making a determination to issue a 
        grant under this subsection, the Secretary shall take into 
        account the number of documented orphaned wells on the land of 
        the Indian Tribe and the projected cost to permanently plug and 
        reclaim such wells.
          ``(4) Application.--An Indian Tribe may apply to receive 
        funds under this paragraph by submitting an application that 
        includes--
                  ``(A) a description of--
                          ``(i) the Tribal program for orphaned well 
                        permanent 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 Tribal program to carry out 
                        the proposed activities; and
                          ``(ii) the activities to be carried out with 
                        the grant, including an identification of the 
                        estimated health, safety, and habitat, and 
                        environmental benefits of permanently plugging, 
                        remediating, or reclaiming the orphaned wells, 
                        adjacent lands, and access roads; and
                  ``(B) an estimate of--
                          ``(i) the number of orphaned wells that will 
                        be permanently plugged, remediated, or 
                        reclaimed; and
                          ``(ii) the projected costs of permanently 
                        plugging, remediating, or reclaiming the 
                        orphaned wells and any adjacent lands or access 
                        roads.
          ``(5) Limitation.--An Indian Tribe may not use more than 15 
        percent of the funds received under this subsection in a fiscal 
        year for the purposes described in paragraph (2)(F).
          ``(6) Consideration timeline.--The Secretary shall issue or 
        deny a grant under this subsection not later than 60 days after 
        the date of receipt of the complete application under paragraph 
        (4).
          ``(7) 8 years to expend funds.--An Indian Tribe that receives 
        funds under this subsection shall reimburse the Secretary in an 
        amount equal to the amount of any unobligated funds that remain 
        8 years after the date on which such Indian Tribe receives 
        funds under this subsection.
          ``(8) Deferral of plugging and remediation.--An Indian Tribe 
        with an orphaned well within such Indian Tribe's jurisdiction 
        may request that the Secretary administer and carry out 
        permanent plugging, remediation, and reclamation work with 
        respect to such orphaned well. For the purposes of subsection 
        (a), any orphaned well with respect to which the Indian Tribe 
        with jurisdiction has made such a request shall be treated as 
        if such orphaned well is on land administered by a land 
        management agency within the Department of the Interior.
  ``(d) Technical Assistance.--The Secretary of Energy, in cooperation 
with the Secretary and the Interstate Oil and Gas Compact Commission, 
shall provide technical assistance to Federal land management agencies 
and oil and gas producing States and Indian Tribes to ensure practical 
and economical remedies are used to address environmental problems 
caused by orphaned wells on Federal, State, Tribal, or private land, 
including the sharing of best practices in the management of oil and 
gas well inventories to ensure the availability of funds to permanently 
plug, remediate, and restore oil and gas well sites when operations 
cease.
  ``(e) Report to Congress.--Not later than 1 year after the date of 
enactment of this section, and every year thereafter, the Secretary 
shall submit to the Committees on Appropriations and Energy and Natural 
Resources of the Senate and to the Committees on Appropriations and 
Natural Resources of the House of Representatives a report on the 
program established and grants awarded under this section, including--
          ``(1) an updated inventory of--
                  ``(A) orphaned wells on Federal, Tribal, State, and 
                private land; and
                  ``(B) wells at-risk of becoming orphaned on Federal, 
                Tribal, State, and private land;
          ``(2) to the maximum extent practical, an estimate of--
                  ``(A) the amount of methane and other gasses emitted 
                from orphaned wells; and
                  ``(B) the amount of emissions reduced as a result of 
                permanently plugging and reclaiming orphaned wells;
          ``(3) the number of jobs created and saved through the 
        permanent plugging, remediation, and reclamation of orphaned 
        wells; and
          ``(4) the acreage of habitat restored using grants awarded to 
        permanently plug, remediate, and reclaim orphaned wells and 
        adjacent lands, including access roads, and a description of 
        how such land is likely to be used in the future.
  ``(f) Idled Well Fees.--
          ``(1) In general.--The Secretary shall, not later than 180 
        days after the date of enactment of this section, issue 
        regulations to require each operator of an idled well on 
        Federal land to pay an annual, nonrefundable fee for each such 
        idled well in accordance with this subsection.
          ``(2) Amounts.--Except as provided in paragraph (5), the 
        amount of the fee shall be as follows:
                  ``(A) $500 for each well that has been considered an 
                idled well for at least 1 year, but not more than 5 
                years.
                  ``(B) $1,500 for each well that has been considered 
                an idled well for at least 5 years, but not more than 
                10 years.
                  ``(C) $3,500 for each well that has been considered 
                an idled well for at least 10 years, but not more than 
                15 years.
                  ``(D) $7,500 for each well that has been considered 
                an idled well for at least 15 years.
          ``(3) Due date.--An owner of an idled well that is required 
        to pay a fee under this subsection shall submit to the 
        Secretary such fee by not later than May 1 of each year.
          ``(4) Civil penalty.--If the operator of a idled well fails 
        to pay the full amount of a fee under this subsection, the 
        Secretary may assess a civil penalty against the operator under 
        section 109 of the Federal Oil and Gas Royalty Management Act 
        of 1982 (30 U.S.C. 1719) as if such failure to pay were a 
        violation under such section.
          ``(5) Adjustment for inflation.--The Secretary shall, by 
        regulation not less than once every 4 years, adjust each fee 
        under this subsection to account for inflation based on the 
        Consumer Price Index for All Urban Consumers (as published by 
        the Bureau of Labor Statistics of the Department of Labor).
          ``(6) Use of fees.--The Secretary, acting through the 
        Director of the Bureau of Land Management, shall use any fees 
        collected under this subsection for the following purposes:
                  ``(A) 50 percent of such amounts shall be used for--
                          ``(i) inventorying and tracking orphaned 
                        wells on Federal lands;
                          ``(ii) permanently plugging orphaned wells on 
                        Federal lands;
                          ``(iii) remediating and reclaiming well pads 
                        and access roads associated with orphaned wells 
                        on Federal lands;
                          ``(iv) remediating soil and restoring native 
                        species habitat that have been degraded due to 
                        the presence of orphaned wells on Federal land; 
                        and
                          ``(v) remediating lands, including access 
                        roads, adjacent to orphaned wells and 
                        decommissioning or removing pipelines, 
                        facilities, and infrastructure associated with 
                        orphaned wells.
                  ``(B) 50 percent of such amounts shall be used to 
                carry out part 3163 of title 43, Code of Federal 
                Regulations (or any successor regulation).
  ``(g) Savings Clauses and Prevailing Wage Requirements.--
          ``(1) No expansion of liability.--Nothing in this section 
        establishes or expands the responsibility or liability of any 
        entity with respect to permanently plugging a well or 
        remediating or reclaiming a well site.
          ``(2) Prevailing wage.--Any entity carrying out a project 
        authorized by this section shall be required to pay prevailing 
        wages in accordance with subchapter IV of chapter 31 of title 
        40, United States Code (commonly known as the Davis-Bacon Act).
          ``(3) Tribal land.--Nothing in this section may be construed 
        to relieve the Secretary of any obligation imposed by section 3 
        of the Act of May 11, 1938 (25 U.S.C. 396c), or to absolve the 
        United States from any responsibility to an Indian Tribe, 
        including those which derive from the trust relationship or 
        from any treaties, statutes, Executive orders, or agreements 
        between the United States and an Indian Tribe, to permanently 
        plug, remediate, or reclaim orphaned wells located on Tribal 
        lands.
          ``(4) Owner or operator not absolved.--Nothing in this 
        section may be construed to absolve the owner or operator of an 
        oil or gas well of potential liability for reimbursement of 
        permanent plugging and reclamation costs or adverse effects on 
        the environment.
  ``(h) American Iron, Steel, and Manufactured Products.--
          ``(1) Definitions.--In this subsection:
                  ``(A) Iron or steel manufactured product.--The term 
                `iron or steel manufactured product' includes any 
                construction material or end product (as those terms 
                are defined in subpart 25.003 of the Federal 
                Acquisition Regulation) that does not otherwise qualify 
                as an iron or steel product, including--
                          ``(i) an electrical component;
                          ``(ii) a non-ferrous building material, 
                        including--
                                  ``(I) aluminum and polyvinylchloride;
                                  ``(II) glass;
                                  ``(III) fiber optics;
                                  ``(IV) plastic;
                                  ``(V) wood;
                                  ``(VI) masonry;
                                  ``(VII) rubber;
                                  ``(VIII) manufactured stone; and
                                  ``(IX) any other non-ferrous metals; 
                                and
                          ``(iii) an unmanufactured construction 
                        material.
                  ``(B) Produced in the united states.--
                          ``(i) In general.--The term `produced in the 
                        United States'--
                                  ``(I) with respect to an iron or 
                                steel product or an iron or steel 
                                manufactured product, means that all 
                                manufacturing processes for, and 
                                materials and components of, the iron 
                                or steel product or iron or steel 
                                manufactured product, from the initial 
                                melting stage through the application 
                                of coatings, occurred in the United 
                                States; and
                                  ``(II) with respect to an iron or 
                                steel manufactured product, means 
                                that--
                                          ``(aa) the iron or steel 
                                        manufactured product was 
                                        manufactured in the United 
                                        States; and
                                          ``(bb) the cost of the 
                                        components of the iron or steel 
                                        manufactured product that were 
                                        mined, produced, or 
                                        manufactured in the United 
                                        States is greater than 60 
                                        percent of the total cost of 
                                        the components of the iron or 
                                        steel manufactured product.
                          ``(ii) Exclusions.--The term `produced in the 
                        United States', with respect to an iron or 
                        steel product or iron or steel manufactured 
                        product, does not include an iron or steel 
                        product or an iron or steel manufactured 
                        product the materials and components of which 
                        were manufactured--
                                  ``(I) abroad from semi-finished steel 
                                or iron from the United States; or
                                  ``(II) in the United States from 
                                semi-finished steel or iron of foreign 
                                origin.
          ``(2) Requirement.--Funds made available under this section 
        may not be used for an orphaned well plugging or remediation 
        project unless all of the iron and steel products and steel 
        manufactured products used in the project are produced in the 
        United States.
          ``(3) Waiver.--
                  ``(A) In general.--On request of the recipient of a 
                grant under this section, the Secretary may grant for 
                the project of the recipient of the grant a waiver of 
                the requirement described in paragraph (2) if the 
                Secretary finds that--
                          ``(i) the application of paragraph (2) would 
                        be inconsistent with the public interest;
                          ``(ii) iron or steel products or iron or 
                        steel manufactured products are not produced in 
                        the United States--
                                  ``(I) in sufficient and reasonably 
                                available quantities; or
                                  ``(II) of a satisfactory quality; or
                          ``(iii) the inclusion of iron or steel 
                        products or iron or steel manufactured products 
                        in the United States would increase the cost of 
                        the overall project by greater than 25 percent.
                  ``(B) Public notice.--On receipt of a request for a 
                waiver under subparagraph (A), the Secretary shall--
                          ``(i) make available to the public, including 
                        by electronic means, including on the official 
                        public website of the Department, on an 
                        informal basis, a copy of the request and all 
                        information available to the Secretary relating 
                        to the request; and
                          ``(ii) provide for informal public input on 
                        the request for a period of not fewer than 15 
                        days before making with respect to the request 
                        the finding described in subparagraph (A).
  ``(i) Definitions.--In this section:
          ``(1) Environmental justice community.--The term 
        `environmental justice community' means any community with 
        significant representation of communities of color, low-income 
        communities, or Tribal and indigenous communities, that 
        experiences, or is at risk of experiencing higher or more 
        adverse human health or environmental effects.
          ``(2) Idled well.--The term `idled well'--
                  ``(A) if the Secretary has not established a 
                definition under subsection (a)(4)(B), means a well 
                that has been non-operational for at least two 
                consecutive years for which there is no anticipated 
                beneficial future use; or
                  ``(B) has the meaning given to such term by the 
                Secretary under subsection (a)(4)(B).
          ``(3) Indian tribe.--The term `Indian Tribe' means the 
        governing body of any Indian or Alaska Native Tribe, band, 
        nation, pueblo, village, community, component band, or 
        component reservation individually identified (including 
        parenthetically) in the most recent list published pursuant to 
        section 104 of the Federally Recognized Indian Tribe List Act 
        of 1994 (25 U.S.C. 5131).
          ``(4) Operator.--The term `operator' means, with respect to 
        an oil or gas operation, any entity, including the lessee or 
        operating rights owner, who has stated in writing to a relevant 
        authority that such entity is responsible for such operation or 
        a portion thereof.
          ``(5) Orphaned well.--The term `orphaned well'--
                  ``(A) with respect to Federal and Tribal land--
                          ``(i) has the meaning given to such term by 
                        the Secretary under subsection (a)(3); or
                          ``(ii) if the Secretary has not defined the 
                        term under such subsection, means a well that 
                        is not being used for authorized purposes such 
                        as production, injection, or monitoring and for 
                        which either no operator can be found or the 
                        operator is unable to permanently plug the well 
                        and remediate and reclaim the well site; and
                  ``(B) with respect to State or private land--
                          ``(i) has the meaning given to such term by 
                        such State if the Secretary determines under 
                        subsection (b)(3)(C)(iii) that such definition 
                        is reasonable; or
                          ``(ii) has the meaning given in subparagraph 
                        (A).
          ``(6) Tribal land.--The term `Tribal land' means any land or 
        minerals, or interests in land or minerals, owned by any Indian 
        Tribe, the title to which is held in trust by the United 
        States, or is subject to a restriction against alienation under 
        the laws of the United States.
  ``(j) Authorization of Appropriations.--There are authorized to be 
appropriated for fiscal year 2021, to remain available until September 
30, 2031--
          ``(1) to the Secretary--
                  ``(A) $400,000,000 to carry out the program under 
                subsection (a);
                  ``(B) $1,500,000,000--
                          ``(i) to provide grants under paragraph (2) 
                        of subsection (b); and
                          ``(ii) to provide, beginning on the date that 
                        is 18 months after amounts are made available 
                        to carry out this section, grants under 
                        paragraph (4) of such subsection;
                  ``(C) $3,500,000,000 to provide grants under 
                paragraph (3) of such subsection;
                  ``(D) $2,250,000,000 to provide grants under 
                paragraph (4) of such subsection; and
                  ``(E) $300,000,000 to carry out subsection (c);
          ``(2) to the Secretary of Energy, $48,000,000 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 
        identifying and characterizing undocumented orphaned wells and 
        mitigating the environmental risks of undocumented orphaned 
        wells; and
          ``(3) to the Interstate Oil and Gas Compact Commission, 
        $2,000,000 to carry out this section.''.
  (b) Clerical Amendment.--Section 1(b) of the Energy Policy Act of 
2005 is amended in the table of contents by amending the item relating 
to section 349 to read as follows:

``Sec. 349. Orphaned well site plugging, remediation, and 
restoration.''.

SEC. 3. AMENDMENT TO MINERAL LEASING ACT.

  Section 17(g) of the Mineral Leasing Act (30 U.S.C. 226(g)) is 
amended by inserting ``The Secretary concerned shall review the 
adequacy of each such bond, surety, or other financial arrangement 
anytime a lease issued under this section is transferred. Each such 
bond, surety, or other financial arrangement shall be considered 
inadequate if such bond, surety, or other financial arrangement is for 
less than $150,000 in the case of an arrangement for an individual 
surface-disturbing activity of each entity on an individual oil or gas 
lease in a State, or $500,000 in the case of an arrangement for all 
surface-disturbing activities of each entity on all oil and gas leases 
in a State.'' after ``on the lease.''.

                          Purpose of the Bill

    The purpose of H.R. 2415 is to amend the Energy Policy Act 
of 2005 to require the Secretary of the Interior to establish a 
program to permanently plug, remediate, and reclaim orphaned 
wells and the surrounding lands and to provide funds to States 
and Tribal Governments to permanently plug, remediate, and 
reclaim orphaned wells and the surrounding lands.

                  Background and Need for Legislation

    When oil and gas wells reach the end of their productive 
lifespans, well owners must plug each well and reclaim the 
surrounding land to its original condition. Plugging involves 
removing any remaining pipelines and sealing the well shut with 
a cement plug. Reclamation involves removing structures and 
equipment on the surface and restoring vegetation around a well 
site to its original natural condition. Before drilling, oil 
and gas development companies provide regulators with a bond or 
other financial assurance instrument to cover plugging and 
reclamation costs if the company declares bankruptcy, 
dissolves, or otherwise fails to clean up the site. Bonds and 
other financial assurance mechanisms are intended to ensure 
taxpayers are not left paying for the cost of remediation. Bond 
amounts vary significantly by state and the number and type of 
wells they cover.
    Wells are ``orphaned'' when bonds are insufficient to cover 
plugging and reclamation expenses and there are no known 
responsible or liable parties. Taxpayers are eventually left to 
cover these reclamation costs. Orphaned wells exist on federal, 
tribal, state, and private lands, plaguing federal and state 
regulators. Decommissioned wells that have been properly closed 
and reclaimed are ``plugged and abandoned.'' Wells with no 
recent production that are unlikely to be appropriately plugged 
are ``abandoned.'' ``Idle'' or ``idled'' wells have not 
produced oil or gas for a fixed period: six months to several 
years, depending on the state or federal jurisdiction.
    It's difficult to approximate the number of orphaned oil 
and gas wells in the United States. A preliminary survey by the 
Interstate Oil and Gas Compact Commission (IOGCC), a consortium 
of 31 state oil and gas regulators, suggests that as of 2020, 
there were at least 69,000 known orphaned wells in the 
country.\1\ A large percent of these wells are in Kentucky, 
Pennsylvania, Texas, West Virginia, Kansas, and Illinois. The 
IOGCC also estimates there may be hundreds of thousands more 
undocumented orphaned wells dating from the early years of oil 
and gas production in the United States.
---------------------------------------------------------------------------
    \1\Building Back Better: Creating Jobs and Reducing Pollution by 
Plugging and Reclaiming Orphaned Wells: Hearing on H.R. 2415 Before the 
Subcomm. on Energy & Min. Res. of the H. Comm. on Nat. Res., 117th 
Cong. (Apr. 15, 2021) (not printed) (statement of Lori Wrotenbery, 
Exec. Dir., IOGCC, at 1-2), https://docs.house.gov/meetings/II/II06/
20210415/111449/HHRG-117-II06-Wstate-WrotenberyL-20210415.pdf.
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    In 2018, the Environmental Protection Agency (EPA) 
estimated there are around 3.2 million abandoned oil and gas 
wells in the United States, of which approximately 2 million 
are considered unplugged or remain improperly closed.\2\ The 
nonprofit organization Carbon Tracker estimates there are 2.6 
million unplugged U.S. wells,\3\ while another analysis 
estimates there are closer to 1.5 million abandoned or orphaned 
wells.\4\
---------------------------------------------------------------------------
    \2\EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks 1990-
2016: Abandoned Oil and Gas Wells 8 tbl.7 (2018), https://www.epa.gov/
sites/default/files/2018-04/documents/ghgemissions_abandoned_wells.pdf.
    \3\Robert Schuwerk & Greg Rogers, Carbon Tracker, Billion Dollar 
Orphans 9 (2020), available at https://carbontracker.org/reports/
billion-dollar-orphans/.
    \4\Matt Mayer, TGS-NOPEC Geophysical Co., Abandoned Wells--How Big 
is the Problem, and What Can Be Done? 1 (2020), https://www.tgs.com/
hubfs/Well%20Intel/Well-Intel-12-Abandoned-Wells-R01.pdf.
---------------------------------------------------------------------------
    The U.S. Department of the Interior (DOI) is responsible 
for oil and gas development on federal and tribal lands. Within 
DOI, the Bureau of Land Management (BLM) is primarily 
responsible for managing oil and gas resources. BLM administers 
more than 247 million acres of land and 700 million acres of 
subsurface mineral estate. BLM cooperates with the U.S. Forest 
Service (USFS) to coordinate access to federal oil and gas 
resources in national forests and with the Bureau of Indian 
Affairs (BIA) to manage oil and gas resources on tribal land.
    In April 2021, in a statement submitted to the 
congressional record during a hearing on H.R. 2415, DOI 
announced that across USFS, BLM, BIA, the National Park 
Service, and the U.S. Fish and Wildlife Service, there are more 
than 14,400 orphaned and likely orphaned wells on the federal 
lands managed by these agencies.\5\
---------------------------------------------------------------------------
    \5\See Building Back Better: Creating Jobs and Reducing Pollution 
by Plugging and Reclaiming Orphaned Wells: Hearing on H.R. 2415 Before 
the Subcomm. on Energy & Min. Res. of the H. Comm. on Nat. Res., 117th 
Cong. (Apr. 15, 2021) (not printed) (statement of the U.S. Dep't of the 
Interior, at 2), https://docs.house.gov/meetings/II/II06/20210415/
111449/HHRG-117-II06-20210415-SD002.pdf.
---------------------------------------------------------------------------
    In 2019, the U.S. Government Accountability Office (GAO) 
issued a report that found the bonds held by BLM insufficient 
to clean up orphaned wells because they do not reflect total 
reclamation costs.\6\ According to GAO, the average bond 
coverage for each well on BLM public land is $2,122.\7\ Yet 
eighty-four percent of bonds held would not fully cover 
reclamation costs even under a low-cost scenario.\8\ GAO 
estimated the typical cleanup costs for orphaned wells to be 
between $20,000 and $145,000 per well and recommended that BLM 
substantially increase minimum bond levels.\9\
---------------------------------------------------------------------------
    \6\GAO, GAO-19-615, Oil and Gas: Bureau of Land Management Should 
Address Risks From Insufficient Bonds to Reclaim Wells 14 (2019), 
https://www.gao.gov/assets/710/701949.pdf.
    \7\Id. at 11.
    \8\Id. at 15.
    \9\Id. at 24-25.
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    Abandoned oil and gas wells can leak natural gas and other 
pollutants, damaging local air quality and contributing to 
climate change. As the structural integrity of a wellbore 
decreases with time, gases can migrate from underground 
formations to the surface. Escaped gases can include methane, 
the primary component of natural gas and a potent greenhouse 
gas.\10\ Other hazards include ground-level ozone pollution, 
volatile organic compounds, and benzene,\11\ a known carcinogen 
that causes leukemia\12\ and is linked to low birth 
weights.\13\ According to the Centers for Disease Control and 
Prevention, exposure to ground-level ozone is linked to health 
problems such throat irritation, wheezing and breathing 
difficulties, and aggravation of respiratory illnesses like 
asthma, bronchitis, and emphysema.\14\
---------------------------------------------------------------------------
    \10\Nichola Groom, Special Report: Millions of Abandoned Oil Wells 
Are Leaking Methane, a Climate Menace, Reuters (June 16, 2020), https:/
/www.reuters.com/article/us-usa-drilling-abandoned-specialreport/
special-report-millions-of-abandoned-oil-wells-are-leaking-methane-a-
climate-menace-idUSKBN23N1NL.
    \11\Id.
    \12\See, e.g., Frolayne M. Carlos-Wallace et al., Parental, In 
Utero, and Early-Life Exposure to Benzene and the Risk of Childhood 
Leukemia: A Meta-Analysis, 183(1) Am. J. Epidemiology 1, 1 (2015), 
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4751231/pdf/kwv120.pdf 
(doi:10.1093/aje/kwv120); HHS, Agency for Toxic Substances & Disease 
Registry, Toxicological Profile for Benzene 6, 9 (2007), https://
www.atsdr.cdc.gov/toxprofiles/tp3.pdf.
    \13\See, e.g., Sammy Zahran et al., Maternal Benzene Exposure and 
Low Birth Weight Risk in the United States: A Natural Experiment In 
Gasoline Reformulation, 112 Env't Rsch. 139 (2012), available at 
https://doi.org/10.1016/j.envres.2011.11.008.
    \14\Ozone and Your Health, CDC, https://www.cdc.gov/air/ozone.html 
(last updated Sept. 4, 2019).
---------------------------------------------------------------------------
    According to a 2020 study, the United States has 
underestimated methane emissions from abandoned oil and gas 
wells by 20 percent,\15\ and states have underestimated the 
number of nonproducing wells by around 12 percent.\16\ In a 
2016 study, the National Academies of Sciences found abandoned 
wells in Pennsylvania emit 40,000 to 70,000 metric tons of 
methane per year--between 5 and 8 percent of the state's human-
caused methane emissions.\17\ A few high-emitting wells are 
responsible for most methane leaks, meaning plugging and 
remediating high-risk wells can substantially reduce methane 
emissions.
---------------------------------------------------------------------------
    \15\James P. Williams, Amara Regehr & Mary Kang, Methane Emissions 
from Abandoned Oil and Gas Wells in Canada and the United States, 55(1) 
Env't Sci. & Tech. 563 (2021), https://doi.org/10.1021/acs.est.0c04265 
(published online 2020), corrected as to other matters, 55(1) Env't 
Sci. & Tech. 3449 (2021), https://pubs.acs.org/doi/pdf/10.1021/
acs.est.1c00377.
    \16\Id.; see also Carlos Anchondo, U.S. Underestimates GHGs from 
Abandoned Oil Wells--Study, E&E News (Jan. 22, 2021), https://
www.eenews.net/energywire/stories/1063723223.
    \17\Mary Kang et al., Identification and Characterization of High 
Methane-Emitting Abandoned Oil and Gas Wells, 113(48) PNAS 13,636, 
13,639 (2016), available at https://doi.org/10.1073/pnas.160591311, 
corrected as to other matters, 114(29) PNAS E6025 (2017), available at 
https://www.pnas.org/doi/10.1073/pnas.1711230114.
---------------------------------------------------------------------------
    Improperly plugged wells can also cause oil, gas, or brine 
to leak into groundwater resources.\18\ ``Brine'' is saline 
water that naturally exists underground alongside oil and gas 
and can contain metals, naturally occurring organic compounds, 
and radioactive materials.\19\ Surface waters can be 
contaminated if fluids or gases rise from the well and spill 
onto the land or percolate into the soil. A 2011 study of 185 
groundwater contamination incidents in Ohio from 1983 to 2007 
found 41 incidents resulted from leakage by orphaned wells.\20\ 
Methane leaks from undocumented abandoned wells can also cause 
safety hazards, as seen in a 2007 explosion at a Colorado 
construction site, a 2011 explosion that destroyed a home in 
Pennsylvania, and a 2014 evacuation of an Ohio elementary 
school.\21\
---------------------------------------------------------------------------
    \18\See, e.g., Jacqueline Ho et al., Resources for the Future, 
Plugging the Gaps in Inactive Well Policy 7 (2016), https://
media.rff.org/documents/RFF-Rpt-PluggingInactiveWells.pdf.
    \19\See e.g., EPA, EPA-600-R-16-236Fa, Hydraulic Fracturing for Oil 
and Gas: Impacts from the Hydraulic Fracturing Water Cycle on Drinking 
Water Resources in the United States 3-11 n.1, 7-20 n.3 (2016), 
available at https://cfpub.epa.gov/ncea/hfstudy/
recordisplay.cfm?deid=332990.
    \20\Scott Kell, Ground Water Prot. Council, State Oil and Gas 
Agency Groundwater Investigations and Their Role in Advancing 
Regulatory Reforms 2, 37 (2011), https://www.atlanticaenergy.org/pdfs/
natural_gas/Environment/
State%20Oil%20&%20Gas%20Agency%20Groundwater%20Investigations_US_GWProCo
ucil.pdf.
    \21\Sophie Quinton, Why `Orphan' Oil and Gas Wells Are a Growing 
Problem for States, PEW Charitable Trusts (July 9, 2018), https://
www.pewtrusts.org/en/research-and-analysis/blogs/stateline/2018/07/09/
why-orphan-oil-and-gas-wells-are-a-growing-problem-for-states.
---------------------------------------------------------------------------
    Both environmental advocates and state regulators support 
distributing federal funds to states to plug and reclaim 
orphaned wells, as doing so would help with longstanding 
ecological issues while creating jobs for laid-off oil and gas 
workers. In May 2020, the IOGCC asked the Trump administration 
for stimulus funds ``to help keep oil and gas crews working 
during the current crisis'' by plugging abandoned wells.\22\ 
Analysts have estimated that this work could create between 
5,000 and 24,000 jobs,\23\ while the Ohio River Valley 
Institute estimated in an April 2021 report that plugging the 
538,000 abandoned oil and gas wells just in West Virginia, 
Pennsylvania, Ohio, and Kentucky over 20 years could create 
around 15,151 jobs, roughly equal to the number of jobs lost in 
the oil and gas industry in the region over the five years 
preceding the pandemic.\24\
---------------------------------------------------------------------------
    \22\Nichola Groom, States Ask Trump Administration to Pay Laid Off 
Oil Workers to Plug Abandoned Wells, Reuters (May 6, 2020), https://
www.reuters.com/article/us-global-oil-usa-wells/states-ask-trump-
administration-to-pay-laid-off-oil-workers-to-plug-abandoned-wells-
idUSKBN22I2KA.
    \23\See Kate Kelly & Jenny Rowland-Shea, How Congress Can Help 
Energy States Weather the Oil Bust During the Coronavirus Pandemic, 
Ctr. for Am. Progress (Apr. 29, 2020), https://
www.americanprogress.org/issues/green/reports/2020/04/29/484158/
congress-can-help-energy-states-weather-oil-bust-coronavirus-pandemic/.
    \24\Ted Boettner, Ohio River Valley Inst., Repairing the Damage 
From Hazardous Abandoned Oil & Gas Wells 8 (2021), https://
ohiorivervalleyinstitute.org/wp-content/uploads/2021/04/Repairing-the-
Damage-from-Hazardous-AOG-Wells-Report-1.pdf.
---------------------------------------------------------------------------
    H.R. 2415 would authorize funds to plug and reclaim 
orphaned oil and gas wells spread across the country that leak 
methane, contaminate groundwater, and pose safety risks. The 
bill would authorize $8 billion over ten years for cleaning up 
orphaned wells on public, tribal, state, and privately-owned 
lands. Of these funds, $400 million is for DOI and the 
Department of Agriculture to address wells on lands managed by 
the respective agencies, $300 million is for the Bureau of 
Indian Affairs to issue grants to tribes, and $7.25 billion is 
for three types of state grants to address wells on state and 
private lands.
    The bill would permit federal land managers, tribes, and 
states to use the funds for a variety of activities, including 
identifying and inventorying orphaned wells, plugging wells, 
remediating impacted soils and species habitat, reclaiming well 
sites, removing infrastructure, and identifying parties that 
may be liable for cleanup costs. DOI would manage the grant-
making process, and states would be eligible for grants after 
submitting detailed applications. Each state that receives 
funding would be required to submit a yearly report to DOI 
detailing how the grant was used and the results of the work. 
H.R. 2415 also contains two significant regulatory 
enhancements: increasing BLM's minimum bond requirements and 
requiring oil and gas operators to pay an annual fee for idled 
wells on public land.
    H.R. 3684, the Infrastructure Investment and Jobs Act\25\ 
(the ``IIJA,'' sometimes called the Bipartisan Infrastructure 
Framework or ``BIF'' or the Bipartisan InfrastructureLaw or 
``BIL''), signed into law on November 15, 2021, largely enacted 
the substance of H.R. 2415, by including more than $4.7 billion 
over nine years to plug and reclaim orphaned wells on federal, 
tribal, state, and privately owned lands.\26\ On May 25, 2022, 
DOI announced an initial $33 million (of $250 million total) in 
IIJA funding for projects to address 277 high-priority sites on 
federal public lands, national parks, national wildlife refuges 
and national forests.\27\ On August 25, 2022, DOI announced a 
first round of $560 million (of $4.275 billion) in grants to 
states to address sites in 24 states, and it confirmed that the 
Department is engaged in tribal consultations and listening 
sessions prior to opening applications for the $150 million 
tribal grant program.\28\
---------------------------------------------------------------------------
    \25\Pub. L. No. 117-58, 135 Stat. 429 (2021), https://
uscode.house.gov/statviewer.htm?volume=135&page=429.
    \26\Pub. L. No. 117-58, Sec. 40,601, 135 Stat. at 1080, https://
uscode.house.gov/statviewer.htm?volume=135&page=1080.
    \27\DOI, Press Release, Biden-Harris Administration Announces $33 
Million Infrastructure Investment to Address Legacy Pollution, Spur 
Good-Paying Jobs on Public Lands (May 25, 2022) (last edited May 27, 
2022), https://www.doi.gov/pressreleases/biden-harris-administration-
announces-33-million-infrastructure-investment-address.
    \28\DOI, Press Release, Through President Biden's Bipartisan 
Infrastructure Law, 24 States Set to Begin Plugging Over 10,000 
Orphaned Wells (Aug. 25, 2022) (last edited Aug. 31, 2022), https://
www.doi.gov/pressreleases/through-president-bidens-bipartisan-
infrastructure-law-24-states-set-begin-plugging.
---------------------------------------------------------------------------

                            Committee Action

    H.R. 2415 was introduced on April 8, 2021, by 
Representative Teresa Leger Fernandez (D-NM). The bill was 
referred solely to the Committee on Natural Resources, and 
within the Committee to the Subcommittee on Energy and Mineral 
Resources. On April 15, 2021, the Subcommittee held a hearing 
on the bill. On May 26, 2021, the Natural Resources Committee 
met to consider the bill. The Subcommittee was discharged by 
unanimous consent. Rep. Leger Fernandez offered an amendment in 
the nature of a substitute. Rep. Leger Fernandez offered an 
amendment designated Leger Fernandez #1 to the amendment in the 
nature of a substitute. The amendment was agreed to by voice 
vote. Rep. Yvette Herrell (R-NM) offered an amendment 
designated Herrell #1 to the amendment in the nature of a 
substitute. The amendment was not agreed to by a roll call vote 
of 16 yeas and 23 nays, as follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Matt Rosendale (R-MT) offered an amendment designated 
Rosendale #1 to the amendment in the nature of a substitute. 
The amendment was not agreed to by a roll call vote of 17 yeas 
and 23 nays, as follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Pete Stauber (R-MN) offered an amendment designated 
Stauber #1 to the amendment in the nature of a substitute. The 
amendment was not agreed to by a roll call vote of 17 yeas and 
23 nays, as follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Stauber offered an amendment designated Stauber #2 to 
the amendment in the nature of a substitute. The amendment was 
not agreed to by a roll call vote of 17 yeas and 22 nays, as 
follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Stauber offered an amendment designated Stauber #3 to 
the amendment in the nature of a substitute. The amendment was 
not agreed to by a roll call vote of 16 yeas and 23 nays, as 
follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Garret Graves (R-LA) offered an amendment designated 
Graves #1 to the amendment in the nature of a substitute. The 
amendment was not agreed to by a roll call vote of 16 yeas and 
22 nays, as follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Graves offered an amendment designated Graves #2 to 
the amendment in the nature of a substitute. The amendment was 
not agreed to by a roll call vote of 16 yeas and 23 nays, as 
follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Graves offered an amendment designated Graves #85 to 
the amendment in the nature of a substitute. The amendment was 
withdrawn. Rep. Graves offered an amendment designated Graves 
#88 to the amendment in the nature of a substitute. The 
amendment was not agreed to by a roll call vote of 17 yeas and 
20 nays, as follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

    Rep. Graves offered an amendment designated Graves #89 to 
the amendment in the nature of a substitute. The amendment was 
withdrawn. The amendment in the nature of a substitute offered 
by Rep. Leger Fernandez, as amended, was agreed to by voice 
vote. The bill, as amended, was adopted and ordered favorably 
reported to the House of Representatives by a roll call vote of 
22 yeas and 17 nays, as follows:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                                Hearings

    For the purposes of clause 3(c)(6) of House rule XIII, the 
following hearing was used to develop or consider this measure: 
hearing by the Subcommittee on Energy and Mineral Resources 
held on April 15, 2021.

                      Section-by-Section Analysis


Section 1. Short title

    Section 1 provides that this Act may be cited as the 
``Orphaned Well Cleanup and Jobs Act of 2021.''

Section 2. Orphaned well site plugging, remediation, and restoration

    Section 2 amends the Energy Policy Act of 2005 to include a 
new program for the remediation of orphaned oil and gas wells.
            Subsection (a)  Federal program
    Subsection (a) directs the Secretary of the Interior, in 
coordination with the Secretary of Agriculture and affected 
tribes, to establish a program to reclaim orphaned wells on 
federal land within 180 days of enactment. The federal program 
must include processes for identifying and inventorying 
orphaned wells on federal land, ranking orphaned wells by 
priority, plugging wells, reclaiming well pads and roads, 
restoring soil and native species, removing infrastructure, 
identifying parties potentially liable, supporting research and 
development, measuring water contamination, and reducing the 
effect of orphaned wells on environmental justice communities.
    Within 180 days of enactment, the Secretary of the Interior 
must issue a final rule defining the term ``orphaned well'' for 
federal and tribal land. Within 180 days, BLM must also 
establish a new definition for ``idled well,'' replacing the 
Energy Policy Act of 2005 definition that requires wells to be 
non-operational for seven years. The Secretary of the Interior 
is required to consult affected tribes, the Secretary of 
Energy, and the IOGCC and work cooperatively with the Secretary 
of Agriculture and states, to carry out the federal well-
plugging program.

  SUBSECTION (B)  STATE ORPHANED WELL SITE PLUGGING, REMEDIATION, AND 
                              RESTORATION

    Subsection (b) outlines the new program for remediating 
orphaned oil and gas wells on state- and privately-owned land. 
States should use provided funds to plug and reclaim orphaned 
wells on state- and privately-owned land, identify and 
characterize wells, rank those wells based on harm, make 
information on the use of funds publicly available, measure and 
track emissions, measure and track water contamination, 
remediate soil and restore habitat, and reduce effects of 
orphaned wells on environmental justice communities. No more 
than 10 percent of a state's funding may be used for 
administering the program.
    There are two tiers for ``initial grants'' to states:
           Each state that is a member of the IOGCC can 
        receive up to $25 million if they have at least one 
        documented orphaned well and certify that they can 
        obligate 90 percent of funds within 180 days and 
        describe how the funding will help put people back to 
        work who have lost their jobs since March 1, 2020.
           Up to $5 million is available to states that 
        don't qualify for a grant under the previous paragraph 
        but certify that they have an orphaned well cleanup 
        program, can start an orphaned well cleanup program, or 
        will use the funding to prepare an application for a 
        formula grant.
    After two years, any unspent funds will be returned to the 
Secretary to plug and reclaim wells on federal land. States are 
required to submit a publicly available report to the Secretary 
within 15 months of receiving funds detailing how the state 
adhered to the requirements.
    In addition to initial grants, the Secretary must establish 
a formula for the distribution of ``formula grants'' to states 
based on job losses in the oil and gas industry since March 1, 
2020, the number of documented oil and gas wells, and the 
amount of oil and gas produced in 2019 as determined by the 
Energy Information Administration. Within 30 days of the 
deadline for states to notify the Secretary of the Interior 
that they intend to apply for a formula grant, the Secretary 
will publish on a public website the amount each state is 
eligible to receive.
    States may apply to receive formula grant funding by 
submitting an application that includes a description of the 
state's orphaned well program, the activities that will be 
carried out with the grant money, the estimates of the job 
creation impact of the grant, and other details. States have 
five years to obligate formula grant funds. The Secretary is 
required to consult with the EPA Administrator, the Secretary 
of Energy, and the IOGCC when determining the eligibility of a 
state to receive funds. The Secretary is required to issue a 
formula grant to a state no later than 60 days after approving 
that state's application.
    This section also establishes the administration of 
``discretionary grants,'' which may be awarded by the Secretary 
beginning six months after the first initial grant is awarded. 
States may receive up to three $20 million regulatory 
improvement grants, with one grant allowed for states having 
done each of the following:
          1. Strengthened regulations restricting methane 
        emissions from oil and gas operations;
          2. Strengthened plugging and abandonment rules to 
        protect groundwater from oil and gas operations, or
          3. Made statutory or regulatory improvements designed 
        to reduce future orphaned well burdens, including but 
        not limited to bonding requirements or other financial 
        assurance reforms, alternative funding mechanisms for 
        orphaned well programs, or reforms to well transfer and 
        temporary abandonment programs.
    The Secretary can also issue one ``matching grant'' per 
state per fiscal year between 2021 and 2031 for grants equal to 
the amount of additional funding spent by a state on cleaning 
up orphaned wells and associated facilities in a given fiscal 
year, compared to the average the state spent on that activity 
between 2010 and 2019. The total amount of matching grant 
funding a state receives may not exceed $30 million. To prevent 
regulatory backsliding, this section requires that if a state 
that receives a regulatory improvement grant and reverses the 
improvement during the ten years following the state's 
acceptance of the grant, the state must reimburse the Interior 
Secretary for those funds. Each state that received a grant 
under this program must submit a report to the Secretary each 
year describing how the grant was used and the results of the 
work.
            Subsection (c)  Tribal orphaned well site plugging, 
                    remediation, and restoration
    Subsection (c) outlines the tribal orphaned well site 
plugging, remediation, and restoration program within the 
Bureau of Indian Affairs. When issuing grants to tribes, the 
Secretary is required to consider the unemployment rate of the 
tribe on the date of the grant application, the number of 
documented orphaned wells, and the projected cost to reclaim 
such wells.
    This subsection details the application requirements for 
tribes to receive grants. Tribes may use up to 15 percent of 
grant funding for administrative purposes. The Secretary must 
grant or deny an application within 60 days of receipt, and 
tribes must obligate funds within eight years of receiving 
them. Tribes can request the Department of the Interior conduct 
the plugging, remediation, and restoration work for tribal 
orphaned wells under the federal program established in 
subsection (a).
            Subsection (d)  Technical assistance
    Subsection (d) updates Sec. 349(g) of the Energy Policy Act 
of 2005 and allows the Secretary of Energy to work with the 
IOGCC and the Secretary of the Interior to provide technical 
assistance to federal land management agencies, states, and 
tribes to help address orphaned oil and gas wells.
            Subsection (e)  Report to Congress
    Subsection (e) requires that the Secretary submit a report 
to Congress each year that provides the following:
           An updated inventory of orphaned wells and 
        wells at-risk of becoming orphaned;
           An estimate of the amount of methane and 
        other gases emitted from orphaned wells and an estimate 
        of the emissions reduced as a result of plugging wells;
           The acreage of habitat restored; and
           The number of jobs created and saved through 
        plugging and reclaiming orphaned wells.
            Subsection (f)  Idled well fees
    Subsection (f) requires the Secretary of the Interior to 
issue regulations requiring operators to pay an annual fee for 
idled wells on federal land. These fees are based on the 
duration a well has been idled. Owners must pay this fee by May 
1 of each year. The Secretary can charge civil penalties if 
operators fail to pay the fees. Idled well fees must be 
adjusted for inflation at least once every four years. 50 
percent of funds from idled well fees will be used for 
inventorying, plugging, and remediating orphaned wells on 
federal land, and 50 percent of funds will be used by BLM to 
carry out inspections on oil and gas operations on federal 
land.
            Subsection (g)  Savings clauses and prevailing wage 
                    requirements
    Subsection (g) ensures that this Act does not absolve 
potentially responsible parties of responsibility for cleaning 
up orphaned well sites, impact state liability laws, or affect 
any of the federal government's responsibility to tribes. The 
subsection also requires that all employees of projects 
authorized under this Act are paid no less than local 
prevailing wages.
            Subsection (h)  American iron, steel, and manufactured 
                    products
    Subsection (h) requires, to the extent practicable, that 
funds not be used for an orphaned well plugging or remediation 
project unless all of the iron and steel products and iron and 
steel manufactured products used in the project are produced in 
the United States. Specifically, the subsection authorizes the 
Secretary, at the request of an applicant, to waive the 
prohibition if its enforcement would be inconsistent with the 
public interest; if the necessary products are not produced in 
the United States in adequate quantities or quality; or if the 
requirement would increase the cost of the project by more than 
25 percent. Before granting any such waiver, the Secretary must 
make the waiver request available to the public online, with 
all related information, and provide no fewer than 15 days for 
informal public input on the request.
            Subsection (i)  Definitions
    Subsection (i) defines key terms and provides temporary 
definitions for ``Idled Well'' and ``Orphaned Well'' until the 
Secretary of the Interior updates those definitions by 
regulation.
            Subsection (j)  Authorization of appropriations
    Subsection (j) authorizes the appropriation of funds to the 
Secretary of the Interior for use until all funds have been 
obligated, but no later than FY2031:
           $400,000,000 to carry out the work on 
        federal land under subsection (a).
           $1,500,000,000 for initial grants under 
        subsection (b), with funds left over from this round to 
        be carried over to the discretionary grants under 
        subsection (b).
           $3,500,000,000 for formula grants under 
        subsection (b).
           $2,250,000,000 for discretionary grants 
        under subsection (b).
           $300,000,000 for the tribal grant program 
        under subsection (c).
    This subsection also authorizes $48 million for the 
Secretary of Energy to conduct research and development 
activities, in cooperation with the IOGCC, to assist federal 
land managers, states, and tribes in identifying and 
characterizing undocumented orphaned wells and mitigating the 
environmental risks of these orphaned wells.
    The subsection also authorizes $2,000,000 to the IOGCC to 
assist the Secretary of the Interior and the Secretary of 
Energy in carrying out the Act.
    Total authorizations in the bill equal $8 billion.

Section 3. Amendment to the Mineral Leasing Act

    Section 3 eliminates the ability for a company to provide a 
single bond to cover all leases or operations on public lands 
nationwide and increases minimum bonding amounts for a single 
lease from $10,000 to $150,000, and for all of an operator's 
leases in a state from $150,000 to $500,000.

            Committee Oversight Findings and Recommendations

    Regarding clause 2(b)(1) of rule X and clause 3(c)(1) of 
rule XIII of the Rules of the House of Representatives, the 
Committee on Natural Resources' oversight findings and 
recommendations are reflected in the body of this report.

      Compliance With House Rule XIII and Congressional Budget Act

    1. Cost of Legislation and the Congressional Budget Act. 
With respect to the requirements of clause 3(c)(2) and (3) of 
rule XIII of the Rules of the House of Representatives and 
sections 308(a) and 402 of the Congressional Budget Act of 
1974, as well as clause 3(d) of rule XIII of the Rules of the 
House of Representatives, the Committee has received the 
following estimate for the bill from the Director of the 
Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, October 6, 2021.
Hon. Raul M. Grijalva,
Chairman, Committee on Natural Resources,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2415, the Orphaned 
Well Cleanup and Jobs Act of 2021.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Janani 
Shankaran.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    The bill would:
           Authorize appropriations totaling $8 billion 
        in 2021 for the Department of the Interior (DOI) to 
        establish an orphaned-well remediation program on 
        federal land and to provide grants to states and tribes 
        for similar purposes
           Direct DOI to collect fees for idled oil and 
        gas wells located on onshore federal land and to spend 
        such collections without further appropriation
    Estimated budgetary effects would mainly stem from:
         Spending of the authorized appropriations
         Collection and spending of the fees
    Areas of significant uncertainty include:
         Estimating the number of idled wells and the 
        amount of fees that would be collected
    Bill summary: H.R. 2415 would authorize appropriations 
totaling $8 billion in fiscal year 2021 for the Department of 
the Interior (DOI) to establish an orphaned-well remediation 
program on federal land and to provide grants to states and 
Indian tribes for similar purposes. The bill also would direct 
DOI to collect fees for idled (or nonoperational) oil and gas 
wells located on onshore federal land and would authorize the 
department to spend those fees without further appropriation 
for reclamation and related administration.
    Estimated Federal cost: The estimated budgetary effect of 
H.R. 2415 is shown in Table 1. The costs of the legislation 
fall primarily within budget function 300 (natural resources 
and environment).

                                                   TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 2415
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                      By fiscal year, millions of dollars--
                                                        ------------------------------------------------------------------------------------------------
                                                          2022    2023    2024    2025    2026    2027   2028   2029   2030   2031  2022-2026  2022-2031
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Increases in Direct Spending
 
Estimated Budget Authoritya............................       0       0       0       0       0      0      0      0      0      0         0          0
Estimated Outlays......................................     -25     -20     -10     -10      -5      0      0      0      0      0       -70        -70
 
                                                     Increases in Spending Subject to Appropriation
 
Authorizationb.........................................   8,000       0       0       0       0      0      0      0      0      0     8,000      8,000
Estimated Outlays......................................     455   1,925   1,895   1,895   1,545    255     25      5      0      0     7,715      8,000
--------------------------------------------------------------------------------------------------------------------------------------------------------
CBO estimates that enacting H.R. 2415 would increase revenues by an insignificant amount over the 2021-2031 period.
\a\Enacting the bill would increase offsetting receipts that could be subsequently spent without appropriation action. As a result, the budget authority
  nets to zero. Because outlays lag collections, net spending would be reduced in the first five years.
\b\The bill would authorize the appropriation of $8 billion in fiscal year 2021. Because fiscal year 2021 has ended, CBO has assumed for this estimate
  that the amounts would be provided in 2022.

    Basis of estimate: For this estimate, CBO assumes the 
legislation will be enacted by the end of calendar year 2021. 
Estimated spending is based on historical spending patterns for 
similar programs.
    Spending subject to appropriation: H.R. 2415 would 
authorize the appropriations totaling $8 billion in fiscal year 
2021. Because that fiscal year has ended, CBO assumes for this 
estimate that those amounts would be provided in 2022. On that 
basis and assuming appropriation of the specified amounts, CBO 
estimates that implementing the bill would cost $7.7 billion 
over the 2022-2026 period (see Table 2).
    The bill would require states and tribes either to obligate 
funds within 2 years to 10 years of their receipt or to 
reimburse unobligated amounts to DOI. CBO assumes that states 
would obligate the full amounts within the timeframes specified 
and that any administrative costs that DOI incurs would be 
covered by the amounts authorized.

               TABLE 2.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 2415
----------------------------------------------------------------------------------------------------------------
                                                                By fiscal year, millions of dollars--
                                                    ------------------------------------------------------------
                                                       2022a     2023      2024      2025      2026    2022-2026
----------------------------------------------------------------------------------------------------------------
Federal Program:
    Authorization..................................       400         0         0         0         0        400
    Estimated Outlays..............................        20        40        80        80        80        300
Initial Grants to States:
    Authorization..................................     1,500         0         0         0         0      1,500
    Estimated Outlays..............................       105       375       375       375       270      1,500
Formula Grants to States:
    Authorization..................................     3,500         0         0         0         0      3,500
    Estimated Outlays..............................       245       875       875       875       630      3,500
Regulatory Improvement and Matching Grants to
 States:
    Authorization..................................     2,250         0         0         0         0      2,250
    Estimated Outlays..............................         0       400       560       560       560      2,080
Grants to Tribes:
    Authorization..................................       300         0         0         0         0        300
    Estimated Outlays..............................        75       225         0         0         0        300
Department of Energy:
    Authorization..................................        50         0         0         0         0         50
    Estimated Outlays..............................        10        10         5         5         5         35
    Total Changes:
        Estimated Authorization....................     8,000         0         0         0         0      8,000
        Estimated Outlays..........................       455     1,925     1,895     1,895     1,545      7,715
----------------------------------------------------------------------------------------------------------------
\a\The bill would authorize appropriations totaling $8 billion in fiscal year 2021. Because fiscal year 2021 has
  ended, CBO has assumed for this estimate that the amounts for each activity would be provided in 2022.

    Federal program: H.R. 2415 would authorize the 
appropriation of $400 million for DOI, in cooperation with the 
Department of Agriculture and affected tribes, to establish a 
program to plug, remediate, and reclaim orphaned (or abandoned) 
oil and gas wells on federal land. DOI would be required to 
issue regulations to define and identify orphaned and idled 
wells. Based on historical spending patterns for similar 
activities, CBO estimates that implementing the provision would 
cost $300 million over the 2022-2026 period and $100 million 
after 2026.
    Grants to States: The bill would authorize appropriations 
for three different types of state grants totaling $7.25 
billion. Using information from DOI, CBO expects that the 
department would make grants available in four annual cycles, 
starting in 2022, and that the grants would be fully issued to 
states within one year of being awarded.
    Initial grants. Of that $7.25 billion, H.R. 2415 would 
authorize the appropriation of $1.5 billion for initial grants 
to states to plug, remediate, and reclaim orphaned wells on 
state and private lands; track methane emissions from wells; 
decommission pipelines and infrastructure; and complete other 
related activities. A group of 38 member and associate member 
states of the Interstate Oil and Gas Compact Commission (IOGCC) 
would be eligible to receive up to $25 million each in initial 
grants; 12 nonmember states could receive up to $5 million 
each. The remaining amounts would be available 18 months after 
the first grants are issued for regulatory improvement and 
matching grants, as discussed below. CBO estimates that 
providing those grants to states would cost $1.5 billion over 
the 2022-2026 period.
    Formula grants. The bill also would authorize the 
appropriation of $3.5 billion for DOI to award grants to states 
based on the volume of recent job losses in the oil and gas 
industry and on the projected costs to plug and reclaim 
orphaned wells. CBO estimates that outlays for the grants would 
total $3.5 billion over the 2022-2026 period.
    Regulatory improvement and matching grants. In addition to 
any amounts remaining after the initial grants are issued, H.R. 
2415 would authorize the appropriation of $2.25 billion for DOI 
to provide regulatory improvement and matching grants that 
would be capped at $90 million per state. To be eligible, a 
state would need to regulate gas capture and prohibit venting 
and flaring from oil and gas wells, strengthen well-plugging 
standards, or implement bonding reform and other funding 
mechanisms for orphaned-well programs. CBO estimates that 
providing the grants would cost $2.1 billion over the 2022-2026 
period; the remaining amounts would be spent after 2026.
    Tribal grants: H.R. 2415 would authorize the appropriation 
of $300 million for tribal grants to plug, remediate, and 
reclaim orphaned wells and to conduct related activities. CBO 
expects that those grants would be awarded in 2022 and that 
providing them would cost $300 million over the 2022-2026 
period.
    Department of Energy: The bill would authorize 
appropriations totaling $50 million for the Department of 
Energy and the IOGCC to conduct related research and 
development and to provide technical assistance to DOI, states, 
and tribes. Assuming appropriation of the authorized amounts 
and based on the timeframes provided under the bill for states 
and tribes to obligate the grant funds, CBO estimates that 
implementing that provision would cost $35 million over the 
2022-2026 period and $15 million after 2026.
    Other activities: H.R. 2415 would direct DOI to issue 
regulations for idled-well fees. Based on the costs of similar 
activities, CBO estimates that any costs incurred by DOI would 
be insignificant; any spending would be subject to the 
availability of appropriated funds.
    Section 3 would increase minimum bond amounts required 
under the Mineral Leasing Act. Forfeited bonds from onshore 
mineral leasing are recorded in the budget as discretionary 
offsetting collections and their spending is subject to 
appropriation. Assuming appropriation actions consistent with 
previous appropriation bills, CBO expects that any additional 
amounts forfeited under H.R. 2415 would be spent soon 
thereafter.
    Direct spending: CBO estimates that enacting H.R. 2415 
would reduce direct spending by $70 million over the 2022-2031 
period; those savings would result from the lag between the 
collection and spending of idled-well fees, as discussed below.
    Idled-well fees. H.R. 2415 would direct DOI to collect 
annual fees for idled wells located on onshore federal land as 
follows:
           $500 for each well considered idle for at 
        least 1 year but less than 5 years,
           $1,500 for each well considered idle for at 
        least 5 years but less than 10 years,
           $3,500 for each well considered idle for at 
        least 10 years but less than 15 years, and
         $7,500 for each well considered idle for at 
        least 15 years.
    Under the bill, a well would be considered idled if it has 
been nonoperational for at least two consecutive years and if 
there is no anticipated future beneficial use. Thus, a well 
that is considered idled for one year has been nonoperational 
for three years; a well that is considered idled for five years 
has been nonoperational for seven years; and so on. Fee 
collections are classified in the budget as offsetting receipts 
or reductions in direct spending.
    According to DOI, roughly 6,300 onshore wells on federal 
land have been nonoperational for at least seven years. DOI 
does not collect data on wells that have been nonoperational 
for shorter periods, and CBO is unaware of any comprehensive 
source of information on such wells. CBO also cannot assess 
whether idled wells would have an anticipated future beneficial 
use. We expect that the count of idled wells will increase over 
time under current law, but that under the bill, some operators 
would plug and reclaim idled wells to avoid paying fees. Using 
information from DOI, CBO estimates that between 6,000 and 
7,000 wells would be subject to fees annually under H.R. 2415. 
Receipts would total $350 million over the 2022-2031 period, in 
CBO's estimation. Most of that amount would come from wells 
considered idle for at least 15 years.
    Spending of idled well fees: Under H.R. 2415, the Bureau of 
Land Management would be authorized to spend collections from 
idled-well fees without further appropriation for orphaned-well 
reclamation and related administration. Based on historical 
spending patterns for similar activities, CBO estimates that 
the agency would spend, on average, about $28 million annually 
and $280 million over the 2022-2031 period.
    Revenues: Operators who fail to pay the fees would be 
subject to civil penalties, which are classified in the budget 
as revenues. However, CBO estimates that any penalties 
collected would be insignificant over the 2022-2031 period.
    Uncertainty: CBO's estimate of fee collections is 
uncertain; we cannot forecast with certainty the number of 
wells that would be subject to fees under H.R. 2415. The 
resulting direct spending also could differ from the estimate.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in Table 3.

TABLE 3.--CBO'S ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS OF H.R. 2415, THE ORPHANED WELL CLEANUP AND JOBS ACT OF 2021, AS ORDERED REPORTED BY THE
                                                  HOUSE COMMITTEE ON NATURAL RESOURCES ON MAY 26, 2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2022    2023    2024    2025    2026    2027    2028    2029    2030    2031   2022-2026  2022-2031
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               Net Decrease in the Deficit
 
Pay-As-You-Go Effect..............................     -25     -20     -10     -10      -5       0       0       0       0       0       -70        -70
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Increase in long-term deficits: None.
    Mandates: None.
    Estimate prepared by: Federal Costs: Janani Shankaran; 
Mandates: Lilia Ledezma.
    Estimate reviewed by: Susan Willie, Chief, Natural and 
Physical Resources Cost Estimates Unit, H. Samuel Papenfuss, 
Deputy Director of Budget Analysis; Theresa Gullo; Director of 
Budget Analysis.
    2. General Performance Goals and Objectives. As required by 
clause 3(c)(4) of rule XIII, the general performance goals and 
objectives of this bill are to amend the Energy Policy Act of 
2005 to require the Secretary of the Interior to establish a 
program to permanently plug, remediate, and reclaim orphaned 
wells and the surrounding lands and to provide funds to States 
and Tribal Governments to permanently plug, remediate, and 
reclaim orphaned wells and the surrounding lands.

                           Earmark Statement

    This bill does not contain any Congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined 
under clause 9(e), 9(f), and 9(g) of rule XXI of the Rules of 
the House of Representatives.

                 Unfunded Mandates Reform Act Statement

    According to CBO, this bill contains no unfunded mandates 
as defined by the Unfunded Mandates Reform Act.

                           Existing Programs

    This bill does not establish or reauthorize a program of 
the federal government known to be duplicative of another 
program. Such program was not included in any report from the 
Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139. The state and tribal grants 
that would have been established by this bill have now been 
enacted into law and are now listed in the most recent Catalog 
of Federal Domestic Assistance published pursuant to 31 U.S.C. 
Sec. 6104 as the Energy Community Revitalization Program (ECRP) 
(CFDA No. 15.018). The Catalog does not identify other programs 
as related to that listing.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
access to public services or accommodations within the meaning 
of section 102(b)(3) of the Congressional Accountability Act. 
The Committee finds that the legislation's provisions relating 
to the terms and conditions of employment relate only to the 
wages paid in carrying out projects funded by the bill. Because 
the bill does not provide funding for projects to be carried 
out by the legislative branch, these provisions are 
inapplicable to it.

               Preemption of State, Local, or Tribal Law

    Any preemptive effect of this bill over state, local, or 
tribal law is intended to be consistent with the bill's 
purposes and text and the Supremacy Clause of Article VI of the 
U.S. Constitution.

         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 (existing law 
proposed to be omitted is enclosed in black brackets, 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.
     * * * * * * *

                    Subtitle E--Production Incentives

     * * * * * * *
[Sec. 349. Orphaned, abandoned, or idled wells on Federal land.]
Sec. 349. Orphaned well site plugging, remediation, and restoration.

           *       *       *       *       *       *       *


TITLE III--OIL AND GAS

           *       *       *       *       *       *       *


Subtitle E--Production Incentives

           *       *       *       *       *       *       *


[SEC. 349. ORPHANED, ABANDONED, OR IDLED WELLS ON FEDERAL LAND.

  [(a) In General.--The Secretary, in cooperation with the 
Secretary of Agriculture, shall establish a program not later 
than 1 year after the date of enactment of this Act to 
remediate, reclaim, and close orphaned, abandoned, or idled oil 
and gas wells located on land administered by the land 
management agencies within the Department of the Interior and 
the Department of Agriculture.
  [(b) Activities.--The program under subsection (a) shall--
          [(1) include a means of ranking orphaned, abandoned, 
        or idled wells sites for priority in remediation, 
        reclamation, and closure, based on public health and 
        safety, potential environmental harm, and other land 
        use priorities;
          [(2) provide for identification and recovery of the 
        costs of remediation, reclamation, and closure from 
        persons or other entities currently providing a bond or 
        other financial assurance required under State or 
        Federal law for an oil or gas well that is orphaned, 
        abandoned, or idled; and
          [(3) provide for recovery from the persons or 
        entities identified under paragraph (2), or their 
        sureties or guarantors, of the costs of remediation, 
        reclamation, and closure of such wells.
  [(c) Cooperation and Consultations.--In carrying out the 
program under subsection (a), the Secretary shall--
          [(1) work cooperatively with the Secretary of 
        Agriculture and the States within which Federal land is 
        located; and
          [(2) consult with the Secretary of Energy and the 
        Interstate Oil and Gas Compact Commission.
  [(d) Plan.--Not later than 1 year after the date of enactment 
of this Act, the Secretary, in cooperation with the Secretary 
of Agriculture, shall submit to Congress a plan for carrying 
out the program under subsection (a).
  [(e) Idled Well.--For the purposes of this section, a well is 
idled if--
          [(1) the well has been nonoperational for at least 7 
        years; and
          [(2) there is no anticipated beneficial use for the 
        well.
  [(f) Federal Reimbursement for Orphaned Well Reclamation 
Pilot Program.--
          [(1) Reimbursement for remediating, reclaiming, and 
        closing wells on land subject to a new lease.--The 
        Secretary shall carry out a pilot program under which, 
        in issuing a new oil and gas lease on federally owned 
        land on which 1 or more orphaned wells are located, the 
        Secretary--
                  [(A) may require, other than as a condition 
                of the lease, that the lessee remediate, 
                reclaim, and close in accordance with standards 
                established by the Secretary, all orphaned 
                wells on the land leased; and
                  [(B) shall develop a program to reimburse a 
                lessee, through a royalty credit against the 
                Federal share of royalties owed or other means, 
                for the reasonable actual costs of remediating, 
                reclaiming, and closing the orphaned wells 
                pursuant to that requirement.
          [(2) Reimbursement for reclaiming orphaned wells on 
        other land.--In carrying out this subsection, the 
        Secretary--
                  [(A) may authorize any lessee under an oil 
                and gas lease on federally owned land to 
                reclaim in accordance with the Secretary's 
                standards--
                          [(i) an orphaned well on unleased 
                        federally owned land; or
                          [(ii) an orphaned well located on an 
                        existing lease on federally owned land 
                        for the reclamation of which the lessee 
                        is not legally responsible; and
                  [(B) shall develop a program to provide 
                reimbursement of 100 percent of the reasonable 
                actual costs of remediating, reclaiming, and 
                closing the orphaned well, through credits 
                against the Federal share of royalties or other 
                means.
          [(3) Regulations.--The Secretary may issue such 
        regulations as are appropriate to carry out this 
        subsection.
  [(g) Technical Assistance Program for Non-Federal Land.--
          [(1) In general.--The Secretary of Energy shall 
        establish a program to provide technical and financial 
        assistance to oil and gas producing States to 
        facilitate State efforts over a 10-year period to 
        ensure a practical and economical remedy for 
        environmental problems caused by orphaned or abandoned 
        oil and gas exploration or production well sites on 
        State or private land.
          [(2) Assistance.--The Secretary of Energy shall work 
        with the States, through the Interstate Oil and Gas 
        Compact Commission, to assist the States in quantifying 
        and mitigating environmental risks of onshore orphaned 
        or abandoned oil or gas wells on State and private 
        land.
          [(3) Activities.--The program under paragraph (1) 
        shall include--
                  [(A) mechanisms to facilitate identification, 
                if feasible, of the persons currently providing 
                a bond or other form of financial assurance 
                required under State or Federal law for an oil 
                or gas well that is orphaned or abandoned;
                  [(B) criteria for ranking orphaned or 
                abandoned well sites based on factors such as 
                public health and safety, potential 
                environmental harm, and other land use 
                priorities;
                  [(C) information and training programs on 
                best practices for remediation of different 
                types of sites; and
                  [(D) funding of State mitigation efforts on a 
                cost-shared basis.
  [(h) Authorization of Appropriations.--
          [(1) In general.--There are authorized to be 
        appropriated to carry out this section $25,000,000 for 
        each of fiscal years 2006 through 2010.
          [(2) Use.--Of the amounts authorized under paragraph 
        (1), $5,000,000 are authorized for each fiscal year for 
        activities under subsection (f).
  [(i) Federally Drilled Wells.--Out of any amounts in the 
Treasury not otherwise appropriated, $10,000,000 for fiscal 
year 2014, $36,000,000 for fiscal year 2015, and $4,000,000 for 
fiscal year 2019 shall be made available to the Secretary, 
without further appropriation and to remain available until 
expended, to remediate, reclaim, and close abandoned oil and 
gas wells on current or former National Petroleum Reserve 
land.]

SEC. 349. ORPHANED WELL SITE PLUGGING, REMEDIATION, AND RESTORATION.

  (a) Federal Program.--
          (1) Establishment.--The Secretary, in cooperation 
        with the Secretary of Agriculture and affected Indian 
        Tribes, shall establish a program not later than 180 
        days after the date of enactment of this section to 
        permanently plug orphaned wells and remediate and 
        reclaim orphaned wells located on land administered by 
        the land management agencies within the Department of 
        the Interior and the Department of Agriculture.
          (2) Activities.--The program under paragraph (1) 
        shall--
                  (A) include a means of identifying, 
                characterizing, and inventorying orphaned wells 
                on Federal lands and ranking orphaned wells for 
                priority in permanent plugging, remediation, 
                and reclamation, based on public health and 
                safety, potential environmental harm, and other 
                land use priorities;
                  (B) distribute funding according to the 
                priorities identified under subparagraph (A) 
                for--
                          (i) permanently plugging orphaned 
                        wells;
                          (ii) remediating and reclaiming well 
                        pads and access roads associated with 
                        orphaned wells;
                          (iii) remediating soil and restoring 
                        native species habitat that has been 
                        degraded due to the presence of 
                        orphaned wells; and
                          (iv) remediating lands, including 
                        access roads, adjacent to orphaned 
                        wells and decommissioning or removing 
                        pipelines, facilities, and 
                        infrastructure associated with the 
                        orphaned well;
                  (C) provide a public accounting of the costs 
                of permanently plugging, remediating, and 
                reclaiming each orphaned well;
                  (D) seek to determine the identities of 
                potentially responsible parties associated with 
                the orphaned well, or their sureties or 
                guarantors, to the extent such information can 
                be ascertained, and make efforts to obtain 
                reimbursement for expenditures to the extent 
                practicable;
                  (E) to the maximum extent possible, support 
                research and development efforts aimed at 
                investigating, measuring, and tracking 
                emissions of methane and other gases associated 
                with orphaned wells;
                  (F) measure and track contamination of 
                groundwater or surface water associated with 
                orphaned wells; and
                  (G) reduce the negative effects of orphaned 
                wells on environmental justice communities.
          (3) Define orphaned well.--Not later than 180 days 
        after the date of enactment of this section, the 
        Secretary shall issue a final rule defining the term 
        ``orphaned well'' as such term applies to Federal and 
        Tribal land for the purposes of this section.
          (4) Idled wells.--
                  (A) In general.--The Secretary, acting 
                through the Director of the Bureau of Land 
                Management, shall annually review all idled 
                wells on Federal lands and take such measures 
                as such Director determines appropriate to 
                reduce such Director's idled well inventory.
                  (B) Definition of idled well.--Not later than 
                6 months after the date of enactment of this 
                section, the Secretary, acting through the 
                Director of the Bureau of Land Management, 
                shall establish a definition for the term 
                ``idled well'' for the purposes of this 
                section.
          (5) Cooperation and consultations.--In carrying out 
        the program under paragraph (1), the Secretary shall--
                  (A) work cooperatively with the Secretary of 
                Agriculture and the States within which Federal 
                land is located; and
                  (B) consult with affected Indian Tribes, the 
                Secretary of Energy, and the Interstate Oil and 
                Gas Compact Commission.
  (b) State Orphaned Well Site Plugging, Remediation, and 
Restoration.--
          (1) In general.--
                  (A) Activities.--The Secretary shall provide 
                funding to States as described in this section 
                for any of the following purposes:
                          (i) To permanently plug, remediate, 
                        and reclaim orphaned wells located on 
                        State- and privately-owned land.
                          (ii) To identify and characterize 
                        undocumented orphaned wells on State 
                        and private lands.
                          (iii) To rank orphaned wells on State 
                        and private lands based on factors 
                        including public health and safety, 
                        potential environmental harm, and 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 emissions of 
                        methane and other gases associated with 
                        orphaned wells.
                          (vi) To measure and track 
                        contamination of groundwater or surface 
                        water associated with orphaned wells.
                          (vii) To remediate soil and restore 
                        native species habitat that have been 
                        degraded due to the presence of 
                        orphaned wells.
                          (viii) To remediate lands, including 
                        access roads, adjacent to orphaned 
                        wells and decommission or remove 
                        pipelines, facilities, and 
                        infrastructure associated with the 
                        orphaned well.
                          (ix) To take such measures as such 
                        State determines necessary to reduce 
                        the negative effects of orphaned wells 
                        on environmental justice communities.
                          (x) To administer a program to carry 
                        out activities described in clauses (i) 
                        through (ix).
                  (B) Limitation.--Except for funds received by 
                a State under paragraph (2)(A)(ii), a State may 
                not use more than 10 percent of the funds 
                received under this section in any fiscal year 
                for the purpose described in paragraph 
                (1)(A)(x).
          (2) Initial grants.--
                  (A) In general.--The Secretary shall 
                distribute--
                          (i) not more than $25,000,000 to each 
                        State that--
                                  (I) is a Member State or 
                                Associate Member State of the 
                                Interstate Oil and Gas Compact 
                                Commission;
                                  (II) requests funding under 
                                this clause not later than 6 
                                months after the date of 
                                enactment of this section;
                                  (III) has at least one 
                                documented orphaned well;
                                  (IV) certifies to the 
                                Secretary that such State can 
                                use at least 90 percent of the 
                                requested funding to issue new 
                                contracts, amend existing 
                                contracts, or issue grants for 
                                permanent plugging, 
                                remediation, and reclamation 
                                work within 180 days of receipt 
                                of funds; and
                                  (V) describes to the 
                                Secretary how funds received 
                                under this clause will employ 
                                individuals who have lost 
                                employment during the period 
                                beginning on March 1, 2020, and 
                                ending on the date on which 
                                such State requests funding 
                                under subclause (II); 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) such State has a 
                                        permanent plugging, 
                                        remediation, and 
                                        reclamation program for 
                                        orphaned wells or the 
                                        capacity to start such 
                                        a program; or
                                          (bb) such funds will 
                                        be used to conduct the 
                                        administrative work 
                                        necessary to put 
                                        together an application 
                                        to receive funds under 
                                        paragraph (3).
                  (B) Distribution.--The Secretary shall 
                disburse funds to a State under this 
                subparagraph not later than 30 days after such 
                State makes a certification to the Secretary 
                that such State is eligible to receive such 
                funds.
                  (C) 2 years to expend funds.--
                          (i) In general.--A State that 
                        receives funds under this paragraph 
                        shall reimburse the Secretary in an 
                        amount equal to the amount of any 
                        unobligated funds that remain 2 years 
                        after the date on which such State 
                        receives funds under this paragraph.
                          (ii) Use of reimbursed funds.--The 
                        Secretary may use funds reimbursed 
                        under this subparagraph to carry out 
                        any activity under subsection (a)(2).
                  (D) Report.--
                          (i) In general.--Not later than 15 
                        months after the date on which a State 
                        receives funds under this paragraph, 
                        such State shall submit a report to the 
                        Secretary detailing how the State 
                        adhered to the certifications required 
                        by subparagraph (A).
                          (ii) Public access.--The Secretary 
                        shall make available on a publicly 
                        accessible website each report 
                        submitted under clause (i).
          (3) Formula grants.--
                  (A) Formula.--
                          (i) In general.--The Secretary shall 
                        establish a formula for the 
                        distribution of funds under this 
                        paragraph to the States described in 
                        clause (ii). Such formula, with respect 
                        to an applicant State, shall account 
                        for the following factors:
                                  (I) The job losses in the oil 
                                and gas industry between March 
                                1, 2020, and the date of 
                                enactment of this section.
                                  (II) The number of documented 
                                orphaned wells and associated 
                                facilities and the projected 
                                cost to permanently plug and 
                                reclaim such wells.
                          (ii) Notification.--A State is 
                        described in this clause if, not later 
                        than 45 days after the date of 
                        enactment of this section, such State 
                        submits a notice to the Secretary that 
                        such State intends to submit an 
                        application under subparagraph (B) and 
                        includes in such notification the 
                        information described in subclauses (I) 
                        through (II) of clause (i) with respect 
                        to such State.
                          (iii) Publication.--The Secretary 
                        shall, not later than 30 days after the 
                        date described in clause (ii), publish 
                        on a public website the amount that 
                        each State described in clause (ii) is 
                        eligible to receive under the formula 
                        established under clause (i).
                  (B) Application.--A State may apply to 
                receive funds under this paragraph by 
                submitting an application including--
                          (i) a description of--
                                  (I) the State program for 
                                orphaned well permanent 
                                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 program 
                                to carry out the proposed 
                                activities;
                                  (II) the activities to be 
                                carried out with the grant, 
                                including an identification of 
                                the estimated health, safety, 
                                habitat, and environmental 
                                benefits of permanent plugging, 
                                remediating, or reclaiming the 
                                orphaned wells; and
                                  (III) how the information 
                                regarding the State's 
                                activities under this 
                                subsection will be made 
                                available on a public website;
                          (ii) an estimate of--
                                  (I) the number of orphaned 
                                wells that will be permanently 
                                plugged, remediated, or 
                                reclaimed;
                                  (II) the projected cost of 
                                permanently plugging, 
                                remediating, or reclaiming 
                                orphaned wells, adjacent lands, 
                                and access roads;
                                  (III) the amount of that 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 lands;
                                  (IV) the number of jobs that 
                                will be created or saved 
                                through the activities to be 
                                funded under this subsection; 
                                and
                                  (V) the amount of funds to be 
                                spent on administrative costs;
                          (iii) a certification that any 
                        financial assurance instruments, 
                        including bonds, available to cover 
                        permanent plugging, remediation, or 
                        reclamation costs will be used by the 
                        State; and
                          (iv) the definitions and processes 
                        used by the State to formally declare a 
                        well orphaned or, if the State uses 
                        different terminology, otherwise 
                        eligible for permanent plugging, 
                        remediation, and reclamation by the 
                        State, including the steps the State 
                        has taken to identify the well's most 
                        recent operator.
                  (C) Review of state definitions and 
                processes.--The Secretary may only distribute 
                funds to a State under this paragraph if the 
                Secretary determines that--
                          (i) such State has taken appropriate 
                        steps to protect taxpayers from 
                        unnecessarily paying for permanent 
                        plugging, remediation, and reclamation 
                        costs;
                          (ii) the processes of such State for 
                        declaring a well eligible for permanent 
                        plugging by the State are reasonable; 
                        and
                          (iii) the definition provided by the 
                        State for the term ``orphaned well'' 
                        (or an alternate term, if applicable), 
                        if such term differs from the 
                        definition given such term in 
                        subsection (i)(5)(A)(ii), is 
                        reasonable.
                  (D) 5 years to expend funds.--A State that 
                receives funds under this paragraph shall 
                reimburse the Secretary in an amount equal to 
                the amount of any unobligated funds that remain 
                5 years after the date on which such State 
                receives funds under this paragraph.
                  (E) Consultation.--In making a determination 
                under this paragraph regarding the eligibility 
                of a State to receive funds, the Secretary 
                shall consult with the Administrator of the 
                Environmental Protection Agency, the Secretary 
                of Energy, and the Interstate Oil and Gas 
                Compact Commission.
                  (F) Consideration timeline.--Not later than 
                60 days after receiving a completed application 
                that meets the requirements of this section 
                from a State under this paragraph, the 
                Secretary shall issue a grant to such State.
          (4) Discretionary grants.--
                  (A) In general.--
                          (i) Regulatory improvement grant.--
                                  (I) In general.--Beginning on 
                                the date that is 6 months after 
                                the date on which the first 
                                grant is issued under paragraph 
                                (2), the Secretary may provide 
                                funding in an amount not to 
                                exceed $20,000,000 per grant to 
                                a State if the State meets one 
                                of the following criteria:
                                          (aa) The State--
                                                  (AA) 
                                                requires, or 
                                                will require by 
                                                the date that 
                                                is not later 
                                                than five years 
                                                after the date 
                                                of enactment of 
                                                the Orphaned 
                                                Well Cleanup 
                                                and Jobs Act of 
                                                2021, the 
                                                operator of 
                                                each well 
                                                subject to 
                                                regulation by 
                                                the State to 
                                                capture (which 
                                                such term means 
                                                the physical 
                                                containment of 
                                                gas for 
                                                transportation 
                                                to market or 
                                                productive use, 
                                                including 
                                                reinjection and 
                                                other on-site 
                                                uses) at least 
                                                98 percent of 
                                                all gas 
                                                produced each 
                                                year from each 
                                                such well; and
                                                  (BB) 
                                                prohibits, or 
                                                will prohibit 
                                                by the date 
                                                that is not 
                                                later than five 
                                                years after the 
                                                date of 
                                                enactment of 
                                                the Orphaned 
                                                Well Cleanup 
                                                and Jobs Act of 
                                                2021, venting 
                                                and flaring of 
                                                gas produced 
                                                from each such 
                                                well, except in 
                                                the case of 
                                                emergencies or 
                                                equipment 
                                                failures as 
                                                defined under 
                                                the applicable 
                                                law of such 
                                                State.
                                          (bb) During the 
                                        period of 10 years that 
                                        precedes the date on 
                                        which the State applies 
                                        for a grant under this 
                                        paragraph, the State 
                                        strengthened its 
                                        plugging standards and 
                                        procedures 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.
                                          (cc) The State has 
                                        made improvements to 
                                        State programs designed 
                                        to prevent future 
                                        orphaned well burdens, 
                                        such as bonding reform 
                                        or other financial 
                                        assurance reform, 
                                        alternative funding 
                                        mechanisms for orphaned 
                                        well programs, and 
                                        reforms to well 
                                        transfer and temporary 
                                        abandonment programs in 
                                        the 10 years preceding 
                                        the date that the 
                                        States applies for a 
                                        grant under this 
                                        paragraph.
                                  (II) Limitation.--The 
                                Secretary may only issue one 
                                grant per criterion per State 
                                under this clause.
                          (ii) Matching grant.--
                                  (I) In general.--Beginning on 
                                the date that is 6 months after 
                                the date on which the first 
                                grant is issued under paragraph 
                                (2), the Secretary may provide 
                                funding to a State in an amount 
                                equal to the difference 
                                between--
                                          (aa) the amount of 
                                        funds such State 
                                        expended on average in 
                                        fiscal years 2010 
                                        through 2019 to 
                                        permanently plug, 
                                        remediate, and reclaim 
                                        orphaned wells and 
                                        associated facilities; 
                                        and
                                          (bb) the amount of 
                                        funds such State 
                                        certifies to the 
                                        Secretary such State 
                                        will expend for such 
                                        purposes in the fiscal 
                                        year in which such 
                                        State will receive such 
                                        grant.
                                  (II) Annual grant.--The 
                                Secretary may issue one grant 
                                per State per fiscal year under 
                                this clause.
                                  (III) Limitation on total 
                                funds provided to a state.--The 
                                Secretary may not provide a 
                                total of more than $30,000,000 
                                to a State under this clause 
                                during the period of fiscal 
                                years 2021 through 2031.
                  (B) Application.--
                          (i) In general.--A State may apply to 
                        receive funds under this paragraph by 
                        submitting an application including--
                                  (I) each of the elements 
                                required in an application 
                                under paragraph (3)(B);
                                  (II) a description of 
                                measures such State has taken 
                                to address orphaned wells, 
                                including by increasing State 
                                spending on well permanent 
                                plugging, remediation, and 
                                reclamation and by improving 
                                regulation of oil and gas 
                                wells; and
                                  (III) a description of how 
                                such State will use such funds 
                                to--
                                          (aa) lower 
                                        unemployment in such 
                                        State; and
                                          (bb) improve economic 
                                        conditions in 
                                        economically distressed 
                                        areas of such State.
                          (ii) Consultation.--In making a 
                        determination to issue a grant under 
                        this paragraph, the Secretary shall 
                        consult with the Administrator of the 
                        Environmental Protection Agency and the 
                        Secretary of Energy.
                          (iii) Reimbursement for failure to 
                        maintain protections.--A State that 
                        receives funds under this paragraph 
                        shall reimburse the Secretary any funds 
                        received if, during the 10 year period 
                        beginning on the date of receipt of 
                        funds under this paragraph, such State 
                        enacts a statute or regulation that, if 
                        such statute or regulation were in 
                        effect when the State submitted an 
                        application under this paragraph, would 
                        have prevented such State from being 
                        eligible to receive funds under 
                        subparagraph (A)(i)(I).
                          (iv) Consideration timeline.--Not 
                        later than 60 days after receiving an 
                        application from an eligible State 
                        under this paragraph, the Secretary 
                        shall make a grant or reject such 
                        application.
          (5) State report.--
                  (A) In general.--Each State that receives 
                funding under this subsection shall submit a 
                report to the Secretary each year that 
                provides--
                          (i) the number of orphaned wells that 
                        have been permanently plugged, 
                        remediated, or reclaimed;
                          (ii) the cost of permanently 
                        plugging, remediating, or reclaiming 
                        orphaned wells, adjacent lands, and 
                        access roads;
                          (iii) the amount of that cost offset 
                        by the forfeiture of financial 
                        assurance instruments, the salvage of 
                        well-site equipment, or other proceeds 
                        from the orphaned wells;
                          (iv) an estimate of the number of 
                        jobs created or saved through the 
                        activities funded under this 
                        subsection;
                          (v) the funds spent on administrative 
                        costs;
                          (vi) a description of how the State 
                        is working to decrease the effects of 
                        orphaned wells on environmental justice 
                        communities; and
                          (vii) survey results from State 
                        efforts to identify undocumented 
                        orphaned wells.
                  (B) Public access.--The Secretary shall make 
                available on a publicly accessible website each 
                report submitted under subparagraph (A).
  (c) Tribal Orphaned Well Site Plugging, Remediation, and 
Restoration.--
          (1) Establishment.--The Secretary shall establish a 
        program in the Bureau of Indian Affairs to provide 
        grants to Indian Tribes for the purposes described in 
        paragraph (2).
          (2) Activities.--The purposes described in this 
        paragraph are to--
                  (A) permanently plug, remediate, and reclaim 
                orphaned wells on Tribal land;
                  (B) remediate soil and restore native species 
                habitat that has been degraded due to the 
                presence of orphaned wells on Tribal land;
                  (C) remediate lands, including access roads, 
                adjacent to orphaned wells and decommission or 
                remove pipelines, facilities, and 
                infrastructure associated with the orphaned 
                well on Tribal lands;
                  (D) provide an online public accounting of 
                the cost of permanent plugging, remediation, 
                and reclamation for each orphaned well site on 
                Tribal land, excluding confidential or 
                sensitive Tribal trust or business information 
                (as determined by the Secretary);
                  (E) identify and characterize undocumented 
                orphaned wells on Tribal land; and
                  (F) administer a Tribal program to carry out 
                activities described in subparagraphs (A) 
                through (E).
          (3) Considerations.--In making a determination to 
        issue a grant under this subsection, the Secretary 
        shall take into account the number of documented 
        orphaned wells on the land of the Indian Tribe and the 
        projected cost to permanently plug and reclaim such 
        wells.
          (4) Application.--An Indian Tribe may apply to 
        receive funds under this paragraph by submitting an 
        application that includes--
                  (A) a description of--
                          (i) the Tribal program for orphaned 
                        well permanent 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 Tribal program to 
                        carry out the proposed activities; and
                          (ii) the activities to be carried out 
                        with the grant, including an 
                        identification of the estimated health, 
                        safety, and habitat, and environmental 
                        benefits of permanently plugging, 
                        remediating, or reclaiming the orphaned 
                        wells, adjacent lands, and access 
                        roads; and
                  (B) an estimate of--
                          (i) the number of orphaned wells that 
                        will be permanently plugged, 
                        remediated, or reclaimed; and
                          (ii) the projected costs of 
                        permanently plugging, remediating, or 
                        reclaiming the orphaned wells and any 
                        adjacent lands or access roads.
          (5) Limitation.--An Indian Tribe may not use more 
        than 15 percent of the funds received under this 
        subsection in a fiscal year for the purposes described 
        in paragraph (2)(F).
          (6) Consideration timeline.--The Secretary shall 
        issue or deny a grant under this subsection not later 
        than 60 days after the date of receipt of the complete 
        application under paragraph (4).
          (7) 8 years to expend funds.--An Indian Tribe that 
        receives funds under this subsection shall reimburse 
        the Secretary in an amount equal to the amount of any 
        unobligated funds that remain 8 years after the date on 
        which such Indian Tribe receives funds under this 
        subsection.
          (8) Deferral of plugging and remediation.--An Indian 
        Tribe with an orphaned well within such Indian Tribe's 
        jurisdiction may request that the Secretary administer 
        and carry out permanent plugging, remediation, and 
        reclamation work with respect to such orphaned well. 
        For the purposes of subsection (a), any orphaned well 
        with respect to which the Indian Tribe with 
        jurisdiction has made such a request shall be treated 
        as if such orphaned well is on land administered by a 
        land management agency within the Department of the 
        Interior.
  (d) Technical Assistance.--The Secretary of Energy, in 
cooperation with the Secretary and the Interstate Oil and Gas 
Compact Commission, shall provide technical assistance to 
Federal land management agencies and oil and gas producing 
States and Indian Tribes to ensure practical and economical 
remedies are used to address environmental problems caused by 
orphaned wells on Federal, State, Tribal, or private land, 
including the sharing of best practices in the management of 
oil and gas well inventories to ensure the availability of 
funds to permanently plug, remediate, and restore oil and gas 
well sites when operations cease.
  (e) Report to Congress.--Not later than 1 year after the date 
of enactment of this section, and every year thereafter, the 
Secretary shall submit to the Committees on Appropriations and 
Energy and Natural Resources of the Senate and to the 
Committees on Appropriations and Natural Resources of the House 
of Representatives a report on the program established and 
grants awarded under this section, including--
          (1) an updated inventory of--
                  (A) orphaned wells on Federal, Tribal, State, 
                and private land; and
                  (B) wells at-risk of becoming orphaned on 
                Federal, Tribal, State, and private land;
          (2) to the maximum extent practical, an estimate of--
                  (A) the amount of methane and other gasses 
                emitted from orphaned wells; and
                  (B) the amount of emissions reduced as a 
                result of permanently plugging and reclaiming 
                orphaned wells;
          (3) the number of jobs created and saved through the 
        permanent plugging, remediation, and reclamation of 
        orphaned wells; and
          (4) the acreage of habitat restored using grants 
        awarded to permanently plug, remediate, and reclaim 
        orphaned wells and adjacent lands, including access 
        roads, and a description of how such land is likely to 
        be used in the future.
  (f) Idled Well Fees.--
          (1) In general.--The Secretary shall, not later than 
        180 days after the date of enactment of this section, 
        issue regulations to require each operator of an idled 
        well on Federal land to pay an annual, nonrefundable 
        fee for each such idled well in accordance with this 
        subsection.
          (2) Amounts.--Except as provided in paragraph (5), 
        the amount of the fee shall be as follows:
                  (A) $500 for each well that has been 
                considered an idled well for at least 1 year, 
                but not more than 5 years.
                  (B) $1,500 for each well that has been 
                considered an idled well for at least 5 years, 
                but not more than 10 years.
                  (C) $3,500 for each well that has been 
                considered an idled well for at least 10 years, 
                but not more than 15 years.
                  (D) $7,500 for each well that has been 
                considered an idled well for at least 15 years.
          (3) Due date.--An owner of an idled well that is 
        required to pay a fee under this subsection shall 
        submit to the Secretary such fee by not later than May 
        1 of each year.
          (4) Civil penalty.--If the operator of a idled well 
        fails to pay the full amount of a fee under this 
        subsection, the Secretary may assess a civil penalty 
        against the operator under section 109 of the Federal 
        Oil and Gas Royalty Management Act of 1982 (30 U.S.C. 
        1719) as if such failure to pay were a violation under 
        such section.
          (5) Adjustment for inflation.--The Secretary shall, 
        by regulation not less than once every 4 years, adjust 
        each fee under this subsection to account for inflation 
        based on the Consumer Price Index for All Urban 
        Consumers (as published by the Bureau of Labor 
        Statistics of the Department of Labor).
          (6) Use of fees.--The Secretary, acting through the 
        Director of the Bureau of Land Management, shall use 
        any fees collected under this subsection for the 
        following purposes:
                  (A) 50 percent of such amounts shall be used 
                for--
                          (i) inventorying and tracking 
                        orphaned wells on Federal lands;
                          (ii) permanently plugging orphaned 
                        wells on Federal lands;
                          (iii) remediating and reclaiming well 
                        pads and access roads associated with 
                        orphaned wells on Federal lands;
                          (iv) remediating soil and restoring 
                        native species habitat that have been 
                        degraded due to the presence of 
                        orphaned wells on Federal land; and
                          (v) remediating lands, including 
                        access roads, adjacent to orphaned 
                        wells and decommissioning or removing 
                        pipelines, facilities, and 
                        infrastructure associated with orphaned 
                        wells.
                  (B) 50 percent of such amounts shall be used 
                to carry out part 3163 of title 43, Code of 
                Federal Regulations (or any successor 
                regulation).
  (g) Savings Clauses and Prevailing Wage Requirements.--
          (1) No expansion of liability.--Nothing in this 
        section establishes or expands the responsibility or 
        liability of any entity with respect to permanently 
        plugging a well or remediating or reclaiming a well 
        site.
          (2) Prevailing wage.--Any entity carrying out a 
        project authorized by this section shall be required to 
        pay prevailing wages in accordance with subchapter IV 
        of chapter 31 of title 40, United States Code (commonly 
        known as the Davis-Bacon Act).
          (3) Tribal land.--Nothing in this section may be 
        construed to relieve the Secretary of any obligation 
        imposed by section 3 of the Act of May 11, 1938 (25 
        U.S.C. 396c), or to absolve the United States from any 
        responsibility to an Indian Tribe, including those 
        which derive from the trust relationship or from any 
        treaties, statutes, Executive orders, or agreements 
        between the United States and an Indian Tribe, to 
        permanently plug, remediate, or reclaim orphaned wells 
        located on Tribal lands.
          (4) Owner or operator not absolved.--Nothing in this 
        section may be construed to absolve the owner or 
        operator of an oil or gas well of potential liability 
        for reimbursement of permanent plugging and reclamation 
        costs or adverse effects on the environment.
  (h) American Iron, Steel, and Manufactured Products.--
          (1) Definitions.--In this subsection:
                  (A) Iron or steel manufactured product.--The 
                term ``iron or steel manufactured product'' 
                includes any construction material or end 
                product (as those terms are defined in subpart 
                25.003 of the Federal Acquisition Regulation) 
                that does not otherwise qualify as an iron or 
                steel product, including--
                          (i) an electrical component;
                          (ii) a non-ferrous building material, 
                        including--
                                  (I) aluminum and 
                                polyvinylchloride;
                                  (II) glass;
                                  (III) fiber optics;
                                  (IV) plastic;
                                  (V) wood;
                                  (VI) masonry;
                                  (VII) rubber;
                                  (VIII) manufactured stone; 
                                and
                                  (IX) any other non-ferrous 
                                metals; and
                          (iii) an unmanufactured construction 
                        material.
                  (B) Produced in the united states.--
                          (i) In general.--The term ``produced 
                        in the United States''--
                                  (I) with respect to an iron 
                                or steel product or an iron or 
                                steel manufactured product, 
                                means that all manufacturing 
                                processes for, and materials 
                                and components of, the iron or 
                                steel product or iron or steel 
                                manufactured product, from the 
                                initial melting stage through 
                                the application of coatings, 
                                occurred in the United States; 
                                and
                                  (II) with respect to an iron 
                                or steel manufactured product, 
                                means that--
                                          (aa) the iron or 
                                        steel manufactured 
                                        product was 
                                        manufactured in the 
                                        United States; and
                                          (bb) the cost of the 
                                        components of the iron 
                                        or steel manufactured 
                                        product that were 
                                        mined, produced, or 
                                        manufactured in the 
                                        United States is 
                                        greater than 60 percent 
                                        of the total cost of 
                                        the components of the 
                                        iron or steel 
                                        manufactured product.
                          (ii) Exclusions.--The term ``produced 
                        in the United States'', with respect to 
                        an iron or steel product or iron or 
                        steel manufactured product, does not 
                        include an iron or steel product or an 
                        iron or steel manufactured product the 
                        materials and components of which were 
                        manufactured--
                                  (I) abroad from semi-finished 
                                steel or iron from the United 
                                States; or
                                  (II) in the United States 
                                from semi-finished steel or 
                                iron of foreign origin.
          (2) Requirement.--Funds made available under this 
        section may not be used for an orphaned well plugging 
        or remediation project unless all of the iron and steel 
        products and steel manufactured products used in the 
        project are produced in the United States.
          (3) Waiver.--
                  (A) In general.--On request of the recipient 
                of a grant under this section, the Secretary 
                may grant for the project of the recipient of 
                the grant a waiver of the requirement described 
                in paragraph (2) if the Secretary finds that--
                          (i) the application of paragraph (2) 
                        would be inconsistent with the public 
                        interest;
                          (ii) iron or steel products or iron 
                        or steel manufactured products are not 
                        produced in the United States--
                                  (I) in sufficient and 
                                reasonably available 
                                quantities; or
                                  (II) of a satisfactory 
                                quality; or
                          (iii) the inclusion of iron or steel 
                        products or iron or steel manufactured 
                        products in the United States would 
                        increase the cost of the overall 
                        project by greater than 25 percent.
                  (B) Public notice.--On receipt of a request 
                for a waiver under subparagraph (A), the 
                Secretary shall--
                          (i) make available to the public, 
                        including by electronic means, 
                        including on the official public 
                        website of the Department, on an 
                        informal basis, a copy of the request 
                        and all information available to the 
                        Secretary relating to the request; and
                          (ii) provide for informal public 
                        input on the request for a period of 
                        not fewer than 15 days before making 
                        with respect to the request the finding 
                        described in subparagraph (A).
  (i) Definitions.--In this section:
          (1) Environmental justice community.--The term 
        ``environmental justice community'' means any community 
        with significant representation of communities of 
        color, low-income communities, or Tribal and indigenous 
        communities, that experiences, or is at risk of 
        experiencing higher or more adverse human health or 
        environmental effects.
          (2) Idled well.--The term ``idled well''--
                  (A) if the Secretary has not established a 
                definition under subsection (a)(4)(B), means a 
                well that has been non-operational for at least 
                two consecutive years for which there is no 
                anticipated beneficial future use; or
                  (B) has the meaning given to such term by the 
                Secretary under subsection (a)(4)(B).
          (3) Indian tribe.--The term ``Indian Tribe'' means 
        the governing body of any Indian or Alaska Native 
        Tribe, band, nation, pueblo, village, community, 
        component band, or component reservation individually 
        identified (including parenthetically) in the most 
        recent list published pursuant to section 104 of the 
        Federally Recognized Indian Tribe List Act of 1994 (25 
        U.S.C. 5131).
          (4) Operator.--The term ``operator'' means, with 
        respect to an oil or gas operation, any entity, 
        including the lessee or operating rights owner, who has 
        stated in writing to a relevant authority that such 
        entity is responsible for such operation or a portion 
        thereof.
          (5) Orphaned well.--The term ``orphaned well''--
                  (A) with respect to Federal and Tribal land--
                          (i) has the meaning given to such 
                        term by the Secretary under subsection 
                        (a)(3); or
                          (ii) if the Secretary has not defined 
                        the term under such subsection, means a 
                        well that is not being used for 
                        authorized purposes such as production, 
                        injection, or monitoring and for which 
                        either no operator can be found or the 
                        operator is unable to permanently plug 
                        the well and remediate and reclaim the 
                        well site; and
                  (B) with respect to State or private land--
                          (i) has the meaning given to such 
                        term by such State if the Secretary 
                        determines under subsection 
                        (b)(3)(C)(iii) that such definition is 
                        reasonable; or
                          (ii) has the meaning given in 
                        subparagraph (A).
          (6) Tribal land.--The term ``Tribal land'' means any 
        land or minerals, or interests in land or minerals, 
        owned by any Indian Tribe, the title to which is held 
        in trust by the United States, or is subject to a 
        restriction against alienation under the laws of the 
        United States.
  (j) Authorization of Appropriations.--There are authorized to 
be appropriated for fiscal year 2021, to remain available until 
September 30, 2031--
          (1) to the Secretary--
                  (A) $400,000,000 to carry out the program 
                under subsection (a);
                  (B) $1,500,000,000--
                          (i) to provide grants under paragraph 
                        (2) of subsection (b); and
                          (ii) to provide, beginning on the 
                        date that is 18 months after amounts 
                        are made available to carry out this 
                        section, grants under paragraph (4) of 
                        such subsection;
                  (C) $3,500,000,000 to provide grants under 
                paragraph (3) of such subsection;
                  (D) $2,250,000,000 to provide grants under 
                paragraph (4) of such subsection; and
                  (E) $300,000,000 to carry out subsection (c);
          (2) to the Secretary of Energy, $48,000,000 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 identifying and 
        characterizing undocumented orphaned wells and 
        mitigating the environmental risks of undocumented 
        orphaned wells; and
          (3) to the Interstate Oil and Gas Compact Commission, 
        $2,000,000 to carry out this section.

           *       *       *       *       *       *       *

                              ----------                              


                          MINERAL LEASING ACT




           *       *       *       *       *       *       *
  Sec. 17. (a) All lands subject to disposition under this Act 
which are known or believed to contain oil or gas deposits may 
be leased by the Secretary.
  (b)(1)(A) All lands to be leased which are not subject to 
leasing under paragraphs (2) and (3) of this subsection shall 
be leased as provided in this paragraph to the highest 
responsible qualified bidder by competitive bidding under 
general regulations in units of not more than 2,560 acres, 
except in Alaska, where units shall be not more than 5,760 
acres. Such units shall be as nearly compact as possible. Lease 
sales shall be conducted by oral bidding, except as provided in 
subparagraph (C). Lease sales shall be held for each State 
where eligible lands are available at least quarterly and more 
frequently if the Secretary of the Interior determines such 
sales are necessary. A lease shall be conditioned upon the 
payment of a royalty at a rate of not less than 12.5 percent in 
amount or value of the production removed or sold from the 
lease. The Secretary shall accept the highest bid from a 
responsible qualified bidder which is equal to or greater than 
the national minimum acceptable bid, without evaluation of the 
value of the lands proposed for lease. Leases shall be issued 
within 60 days following payment by the successful bidder of 
the remainder of the bonus bid, if any, and the annual rental 
for the first lease year. All bids for less than the national 
minimum acceptable bid shall be rejected. Lands for which no 
bids are received or for which the highest bid is less than the 
national minimum acceptable bid shall be offered promptly 
within 30 days for leasing under subsection (c) of this section 
and shall remain available for leasing for a period of 2 years 
after the competitive lease sale.
  (B) The national minimum acceptable bid shall be $2 per acre 
for a period of 2 years from the date of enactment of the 
Federal Onshore Oil and Gas Leasing Reform Act of 1987. 
Thereafter, the Secretary, subject to paragraph (2)(B), may 
establish by regulation a higher national minimum acceptable 
bid for all leases based upon a finding that such action is 
necessary: (i) to enhance financial returns to the United 
States; and (ii) to promote more efficient management of oil 
and gas resources on Federal lands. Ninety days before the 
Secretary makes any change in the national minimum acceptable 
bid, the Secretary shall notify the Committee on Natural 
Resources of the United States House of Representatives and the 
Committee on Energy and Natural Resources of the United States 
Senate. The proposal or promulgation of any regulation to 
establish a national minimum acceptable bid shall not be 
considered a major Federal action subject to the requirements 
of section 102(2)(C) of the National Environmental Policy Act 
of 1969.
  (C) In order to diversify and expand the Nation's onshore 
leasing program to ensure the best return to the Federal 
taxpayer, reduce fraud, and secure the leasing process, the 
Secretary may conduct onshore lease sales through Internet-
based bidding methods. Each individual Internet-based lease 
sale shall conclude within 7 days.
  (2)(A)(i) If the lands to be leased are within a special tar 
sand area, they shall be leased to the highest responsible 
qualified bidder by competitive bidding under general 
regulations in units of not more than 5,760 acres, which shall 
be as nearly compact as possible, upon the payment by the 
lessee of such bonus as may be accepted by the Secretary.
  (ii) Royalty shall be 12\1/2\ per centum in amount of value 
of production removed or sold from the lease subject to section 
17(k)(1)(c).
  (iii) The Secretary may lease such additional lands in 
special tar sand areas as may be required in support of any 
operations necessary for the recovery of tar sands.
          (iv) No lease issued under this paragraph shall be 
        included in any chargeability limitation associated 
        with oil and gas leases.
  (B) For any area that contains any combination of tar sand 
and oil or gas (or both), the Secretary may issue under this 
Act, separately--
          (i) a lease for exploration for and extraction of tar 
        sand; and
          (ii) a lease for exploration for and development of 
        oil and gas.
  (C) A lease issued for tar sand shall be issued using the 
same bidding process, annual rental, and posting period as a 
lease issued for oil and gas, except that the minimum 
acceptable bid required for a lease issued for tar sand shall 
be $2 per acre.
  (D) The Secretary may waive, suspend, or alter any 
requirement under section 26 that a permittee under a permit 
authorizing prospecting for tar sand must exercise due 
diligence, to promote any resource covered by a combined 
hydrocarbon lease.
  (3)(A) If the United States held a vested future interest in 
a mineral estate that, immediately prior to becoming a vested 
present interest, was subject to a lease under which oil or gas 
was being produced, or had a well capable of producing, in 
paying quantities at an annual average production volume per 
well per day of either not more than 15 barrels per day of oil 
or condensate, or not more than 60,000 cubic feet of gas, the 
holder of the lease may elect to continue the lease as a 
noncompetitive lease under subsection (c)(1).
  (B) An election under this paragraph is effective--
          (i) in the case of an interest which vested after 
        January 1, 1990, and on or before the date of enactment 
        of this paragraph, if the election is made before the 
        date that is 1 year after the date of enactment of this 
        paragraph;
          (ii) in the case of an interest which vests within 1 
        year after the date of enactment of this paragraph, if 
        the election is made before the date that is 2 years 
        after the date of enactment of this paragraph; and
          (iii) in any case other than those described in 
        clause (i) or (ii), if the election is made prior to 
        the interest becoming a vested present interest.
  (C) Notwithstanding the consent requirement referenced in 
section 3 of the Mineral Leasing Act for Acquired Lands (30 
U.S.C. 352), the Secretary shall issue a noncompetitive lease 
under subsection (c)(1) to a holder who makes an election under 
subparagraph (A) and who is qualified to hold a lease under 
this Act. Such lease shall be subject to all terms and 
conditions under this Act that are applicable to leases issued 
under subsection (c)(1).
  (D) A lease issued pursuant to this paragraph shall continue 
so long as oil or gas continues to be produced in paying 
quantities.
  (E) This paragraph shall apply only to those lands under the 
administration of the Secretary of Agriculture where the United 
States acquired an interest in such lands pursuant to the Act 
of March 1, 1911 (36 Stat. 961 and following).
  (c)(1) If the lands to be leased are not leased under 
subsection (b)(1) of this section or are not subject to 
competitive leasing under subsection (b)(2) of this section, 
the person first making application for the lease who is 
qualified to hold a lease under this Act shall be entitled to a 
lease of such lands without competitive bidding, upon payment 
of a non-refundable application fee of at least $75. A lease 
under this subsection shall be conditioned upon the payment of 
a royalty at a rate of 12.5 percent in amount or value of the 
production removed or sold from the lease. Leases shall be 
issued within 60 days of the date on which the Secretary 
identifies the first responsible qualified applicant.
  (2)(A) Lands (i) which were posted for sale under subsection 
(b)(1) of this section but for which no bids were received or 
for which the highest bid was less than the national minimum 
acceptable bid and (ii) for which, at the end of the period 
referred to in subsection (b)(1) of this section no lease has 
been issued and no lease application is pending under paragraph 
(1) of this subsection, shall again be available for leasing 
only in accordance with subsection (b)(1) of this section.
  (B) The land in any lease which is issued under paragraph (1) 
of this subsection or under subsection (b)(1) of this section 
which lease terminates, expires, is cancelled or is 
relinquished shall again be available for leasing only in 
accordance with subsection (b)(1) of this section.
  (d) All leases issued under this section, as amended by the 
Federal Onshore Oil and Gas Leasing Reform Act of 1987, shall 
be conditioned upon payment by the lessee of a rental of not 
less than $1.50 per acre per year for the first through fifth 
years of the lease and not less than $2 per acre per year for 
each year thereafter. A minimum royalty in lieu of rental of 
not less than the rental which otherwise would be required for 
that lease year shall be payable at the expiration of each 
lease year beginning on or after a discovery of oil or gas in 
paying quantities on the lands leased.
  (e) Competitive and noncompetitive leases issued under this 
section shall be for a primary term of 10 years: Provided, 
however, That competitive leases issued in special tar sand 
areas shall also be for a primary term of ten years. Each such 
lease shall continue so long after its primary term as oil or 
gas is produced in paying quantities. Any lease issued under 
this section for land on which, or for which under an approved 
cooperative or unit plan of development or operation, actual 
drilling operations were commenced prior to the end of its 
primary term and are being diligently prosecuted at that time 
shall be extended for two years and so long thereafter as oil 
or gas is produced in paying quantities.
  (f) At least 45 days before offering lands for lease under 
this section, and at least 30 days before approving 
applications for permits to drill under the provisions of a 
lease or substantially modifying the terms of any lease issued 
under this section, the Secretary shall provide notice of the 
proposed action. Such notice shall be posted in the appropriate 
local office of the leasing and land management agencies. Such 
notice shall include the terms or modified lease terms and maps 
or a narrative description of the affected lands. Where the 
inclusion of maps in such notice is not practicable, maps of 
the affected lands shall be made available to the public for 
review. Such maps shall show the location of all tracts to be 
leased, and of all leases already issued in the general area. 
The requirements of this subsection are in addition to any 
public notice required by other law.
  (g) The Secretary of the Interior, or for National Forest 
lands, the Secretary of Agriculture, shall regulate all 
surface-disturbing activities conducted pursuant to any lease 
issued under this Act, and shall determine reclamation and 
other actions as required in the interest of conservation of 
surface resources. No permit to drill on an oil and gas lease 
issued under this Act may be granted without the analysis and 
approval by the Secretary concerned of a plan of operations 
covering proposed surface-disturbing activities within the 
lease area. The Secretary concerned shall, by rule or 
regulation, establish such standards as may be necessary to 
ensure that an adequate bond, surety, or other financial 
arrangement will be established prior to the commencement of 
surface-disturbing activities on any lease, to ensure the 
complete and timely reclamation of the lease tract, and the 
restoration of any lands or surface waters adversely affected 
by lease operations after the abandonment or cessation of oil 
and gas operations on the lease. The Secretary concerned shall 
review the adequacy of each such bond, surety, or other 
financial arrangement anytime a lease issued under this section 
is transferred. Each such bond, surety, or other financial 
arrangement shall be considered inadequate if such bond, 
surety, or other financial arrangement is for less than 
$150,000 in the case of an arrangement for an individual 
surface-disturbing activity of each entity on an individual oil 
or gas lease in a State, or $500,000 in the case of an 
arrangement for all surface-disturbing activities of each 
entity on all oil and gas leases in a State. The Secretary 
shall not issue a lease or leases or approve the assignment of 
any lease or leases under the terms of this section to any 
person, association, corporation, or any subsidiary, affiliate, 
or person controlled by or under common control with such 
person, association, or corporation, during any period in 
which, as determined by the Secretary of the Interior or 
Secretary of Agriculture, such entity has failed or refused to 
comply in any material respect with the reclamation 
requirements and other standards established under this section 
for any prior lease to which such requirements and standards 
applied. Prior to making such determination with respect to any 
such entity the concerned Secretary shall provide such entity 
with adequate notification and an opportunity to comply with 
such reclamation requirements and other standards and shall 
consider whether any administrative or judicial appeal is 
pending. Once the entity has complied with the reclamation 
requirement or other standard concerned an oil or gas lease may 
be issued to such entity under this Act.
  (h) The Secretary of the Interior may not issue any lease on 
National Forest System Lands reserved from the public domain 
over the objection of the Secretary of Agriculture.
  (i) No lease issued under this section which is subject to 
termination because of cessation of production shall be 
terminated for this cause so long as reworking or drilling 
operations which were commenced on the land prior to or within 
sixty days after cessation of production are conducted thereon 
with reasonable diligence, or so long as oil or gas is produced 
in paying quantities as a result of such operations. No lease 
issued under this section shall expire because operations or 
production is suspended under any order, or with the consent, 
of the Secretary. No lease issued under this section covering 
lands on which there is a well capable of producing oil or gas 
in paying quantities shall expire because the lessee fails to 
produce the same unless the lessee is allowed a reasonable 
time, which shall be not less than sixty days after notice by 
registered or certified mail, within which to place such well 
in producing status or unless, after such status is 
established, production is discontinued on the leased premises 
without permission granted by the Secretary under the 
provisions of this Act.
  (j) Whenever it appears to the Secretary that lands owned by 
the United States are being drained of oil or gas by wells 
drilled on adjacent lands, he may negotiate agreements whereby 
the United States, or the United States and its lessees, shall 
be compensated for such drainage. Such agreements shall be made 
with the consent of the lessees, if any, affected thereby. If 
such agreement is entered into, the primary term of any lease 
for which compensatory royalty is being paid, or any extension 
of such primary term, shall be extended for the period during 
which such compensatory royalty is paid and for a period of one 
year from discontinuance of such payment and so long thereafter 
as oil or gas is produced in paying quantities.
  (k) If, during the primary term or any extended term of any 
lease issued under this section, a verified statement is filed 
by any mining claimant pursuant to subsection (c) of section 7 
of the Multiple Mineral Development Act of August 13, 1954 (68 
Stat. 708), as amended (30 U.S.C. 527), whether such filing 
occur prior to enactment of the Mineral Leasing Act Revision of 
1960 or thereafter, asserting the existence of a conflicting 
unpatented mining claim or claims upon which diligent work is 
being prosecuted as to any lands covered by the lease, the 
running of time under such lease shall be suspended as to the 
lands involved from the first day of the month following the 
filing of such verified statement until a final decision is 
rendered in the matter.
  (l) The Secretary of the Interior shall, upon timely 
application therefor, issue a new lease in exchange for any 
lease issued for a term of twenty years, or any renewal 
thereof, or any lease issued prior to August 8, 1946, in 
exchange for a twenty-year lease, such new lease to be for a 
primary term of five years and so long thereafter as oil or gas 
is produced in paying quantities and at a royalty rate of not 
less than 12\1/2\ per centum in amount of value of the 
production removed or sold from such leases, except that the 
royalty rate shall be 12\1/2\ per centum in amount or value of 
the production removed or sold from said leases as to (1) such 
leases, or such parts of the lands subject thereto and the 
deposits underlying the same, as are not believed to be within 
the productive limits of any producing oil or gas deposit, as 
such productive limits are found by the Secretary to have 
existed on August 8, 1946; and (2) any production on a lease 
from an oil or gas deposit which was discovered after May 27, 
1941, by a well or wells drilled within the boundaries of the 
lease, and which is determined by the Secretary to be a new 
deposit; and (3) any production on or allocated to a lease 
pursuant to an approved cooperative or unit plan of development 
or operation from an oil or gas deposit which was discovered 
after May 27, 1941, on land committed to such plan, and which 
is determined by the Secretary to be a new deposit, where such 
lease, or a lease for which it is exchanged, was included in 
such plan at the time of discovery or was included in a duly 
executed and filed application for the approval of such plan at 
the time of discovery.
  (m) For the purpose of more properly conserving the natural 
resources of any oil or gas pool, field, or like area, or any 
part thereof (whether or not any part of said oil or gas pool, 
field, or like area, is then subject to any cooperative or unit 
plan of development or operation), lessees thereof and their 
representatives may unite with each other, or jointly or 
separately with others, in collective adopting and operating 
under a cooperative or unit plan of development or operation of 
such pool, field, or like area, or any part thereof, whenever 
determined and certified by the Secretary of the Interior to be 
necessary or advisable in the public interest. The Secretary is 
thereunto authorized, in his discretion, with the consent of 
the holders of leases involved, to establish, alter, change, or 
revoke drilling, producing, rental, minimum royalty, and 
royalty requirements of such leases and to make such 
regulations with reference to such leases, with like consent on 
the part of the lessees, in connection with the institution and 
operation of any such cooperative or unit plan as he may deem 
necessary or proper to secure the proper protection of the 
public interest. The Secretary may provide that oil and gas 
leases hereafter issued under this Act shall contain a 
provision requiring the lessee to operate under such a 
reasonable cooperative or unit plan, and he may prescribe such 
a plan under which such lessee shall operate, which shall 
adequately protect the rights of all parties in interest, 
including the United States.
  Any plan authorized by the preceding paragraph which includes 
lands owned by the United States may, in the discretion of the 
Secretary, contain a provision whereby authority is vested in 
the Secretary of the Interior, or any such person, committee, 
or State or Federal officer or agency as may be designated in 
the plan, to alter or modify from time to time the rate of 
prospecting and development and the quantity and rate of 
production under such plan. All leases operated under any such 
plan approved or prescribed by the Secretary shall be excepted 
in determining holdings or control under the provisions of any 
section of this Act.
  When separate tracts cannot be independently developed and 
operated in conformity with an established well-spacing or 
development program, any lease, or a portion thereof, may be 
pooled with other lands, whether or not owned by the United 
States, under a communitization or drilling agreement providing 
for an apportionment of production or royalties among the 
separate tracts of land comprising the drilling or spacing unit 
when determined by the Secretary of the Interior to be in the 
public interest, and operations or production pursuant to such 
an agreement shall be deemed to be operations or production as 
to each such lease committed thereto.
  Any lease issued for a term of twenty years, or any renewal 
thereof, or any portion of such lease that has become the 
subject of a cooperative or unit plan of development or 
operation of a pool, field, or like area, which plan has the 
approval of the Secretary of the Interior, shall continue in 
force until the termination of such plan. Any other lease 
issued under any section of this Act which has heretofore or 
may hereafter be committed to any such plan that contains a 
general provision for allocation of oil or gas shall continue 
in force and effect as to the land committed so long as the 
lease remains subject to the plan: Provided, That production is 
had in paying quantities under the plan prior to the expiration 
date of the term of such lease. Any lease heretofore or 
hereafter committed to any such plan embracing lands that are 
in part within and in part outside of the area covered by any 
such plan shall be segregated into separate leases as to the 
lands committed and the lands not committed as of the effective 
date of unitization: Provided, however, That any such lease as 
to the nonunitized portion shall continue in force and effect 
for the term thereof but for not less than two years from the 
date of such segregation and so long thereafter as oil or gas 
is produced in paying quantities. The minimum royalty or 
discovery rental under any lease that has become subject to any 
cooperative or unit plan of development or operation, or other 
plan that contains a general provision for allocation of oil or 
gas, shall be payable only with respect to the lands subject to 
such lease to which oil or gas shall be allocated under such 
plan. Any lease which shall be eliminated from any such 
approved or prescribed plan, or from any communitization or 
drilling agreement authorized by this section, and any lease 
which shall be in effect at the termination of any such 
approved or prescribed plan, or at the termination of any such 
communitization or drilling agreement, unless relinquished, 
shall continue in effect for the original term thereof, but for 
not less than two years, and so long thereafter as oil or gas 
is produced in paying quantities.
  The Secretary of the Interior is hereby authorized, on such 
conditions as he may prescribe, to approve operating, drilling, 
or development contracts made by one or more lessees of oil or 
gas leases, with one or more persons, associations, or 
corporations whenever, in his discretion, the conservation of 
natural products or the public convenience or necessity may 
require it or the interests of the United States may be best 
subserved thereby. All leases operated under such approved 
operating, drilling, or development contracts, and interests 
thereunder, shall be excepted in determining holdings or 
control under the provisions of this Act.
  The Secretary of the Interior, to avoid waste or to promote 
conservation of natural resources, may authorize the subsurface 
storage of oil or gas, whether or not produced from federally 
owned lands, in lands leased or subject to lease under this 
Act. Such authorization may provide for the payment of a 
storage fee or rental on such stored oil or gas or, in lieu of 
such fee or rental, for a royalty other than that prescribed in 
the lease when such stored oil or gas is produced in 
conjunction with oil or gas not previously produced. Any lease 
on which storage is so authorized shall be extended at least 
for the period of storage and so long thereafter as oil or gas 
not previously produced is produced in paying quantities.
  (n)(1)(A) The owner of (1) an oil and gas lease issued prior 
to the date of enactment of the Combined Hydrocarbon Leasing 
Act of 1981 or (2) a valid claim to any hydrocarbon resources 
leasable under this section based on a mineral location made 
prior to January 21, 1926, and located within a special tar 
sand area shall be entitled to convert such lease or claim to a 
combined hydrocarbon lease for a primary term of ten years upon 
the filing of an application within two years from the date of 
enactment of that Act containing an acceptable plan of 
operations which assures reasonable protection of the 
environment and diligent development of those resources 
requiring enhanced recovery methods of development or mining. 
For purposes of conversion, no claim shall be deemed invalid 
solely because it was located as a placer location rather than 
a lode location or vice versa, notwithstanding any previous 
adjudication on that issue.
  (B) The Secretary shall issue final regulations to implement 
this section within six months of the effective date of this 
Act. If any oil and gas lease eligible for conversion under 
this section would otherwise expire after the date of this Act 
and before six months following the issuance of implementing 
regulations, the lessee may preserve his conversion right under 
such lease for a period ending six months after the issuance of 
implementing regulations by filing with the Secretary, before 
the expiration of the lease, a notice of intent to file an 
application for conversion. Upon submission of a complete plan 
of operations in substantial compliance with the regulations 
promulgated by the Secretary for the filing of such plans, the 
Secretary shall suspend the running of the term of any oil and 
gas lease proposed for conversion until the plan is finally 
approved or disapproved. The Secretary shall act upon a 
proposed plan of operations within fifteen months of its 
submittal.
  (C) When an existing oil and gas lease is converted to a 
combined hydrocarbon lease, the royalty shall be that provided 
for in the original oil and gas lease and for a converted 
mining claim, 12\1/2\ per centum in amount or value of 
production removed or sold from the lease.
  (2) Except as provided in this section, nothing in the 
Combined Hydrocarbon Leasing Act of 1981 shall be construed to 
diminish or increase the rights of any lessee under any oil and 
gas lease issued prior to the enactment of such Act.
  (o) Certain Outstanding Oil and Gas.--(1) Prior to the 
commencement of surface-disturbing activities relating to the 
development of oil and gas deposits on lands described under 
paragraph (5), the Secretary of Agriculture shall require, 
pursuant to regulations promulgated by the Secretary, that such 
activities be subject to terms and conditions as provided under 
paragraph (2).
  (2) The terms and conditions referred to in paragraph (1) 
shall require that reasonable advance notice be furnished to 
the Secretary of Agriculture at least 60 days prior to the 
commencement of surface disturbing activities.
  (3) Advance notice under paragraph (2) shall include each of 
the following items of information:
          (A) A designated field representative.
          (B) A map showing the location and dimensions of all 
        improvements, including but not limited to, well sites 
        and road and pipeline accesses.
          (C) A plan of operations, of an interim character if 
        necessary, setting forth a schedule for construction 
        and drilling.
          (D) A plan of erosion and sedimentation control.
          (E) Proof of ownership of mineral title.
Nothing in this subsection shall be construed to affect any 
authority of the State in which the lands concerned are located 
to impose any requirements with respect to such oil and gas 
operations.
  (4) The person proposing to develop oil and gas deposits on 
lands described under paragraph (5) shall either--
          (A) permit the Secretary to market merchantable 
        timber owned by the United States on lands subject to 
        such activities; or
          (B) arrange to purchase merchantable timber on lands 
        subject to such surface disturbing activities from the 
        Secretary of Agriculture, or otherwise arrange for the 
        disposition of such merchantable timber, upon such 
        terms and upon such advance notice of the items 
        referred to in subparagraphs (A) through (E) of 
        paragraph (3) as the Secretary may accept.
  (5)(A) The lands referred to in this subsection are those 
lands referenced in subparagraph (B) which are under the 
administration of the Secretary of Agriculture where the United 
States acquired an interest in such lands pursuant to the Act 
of March 1, 1911 (36 Stat. 961 and following), but does not 
have an interest in oil and gas deposits that may be present 
under such lands. This subsection does not apply to any such 
lands where, under the provisions of its acquisition of an 
interest in the lands, the United States is to acquire any oil 
and gas deposits that may be present under such lands in the 
future but such interest has not yet vested with the United 
States.
  (B) This subsection shall only apply in the Allegheny 
National Forest.
  (p) Deadlines for Consideration of Applications for 
Permits.--
          (1) In general.--Not later than 10 days after the 
        date on which the Secretary receives an application for 
        any permit to drill, the Secretary shall--
                  (A) notify the applicant that the application 
                is complete; or
                  (B) notify the applicant that information is 
                missing and specify any information that is 
                required to be submitted for the application to 
                be complete.
          (2) Issuance or deferral.--Not later than 30 days 
        after the applicant for a permit has submitted a 
        complete application, the Secretary shall--
                  (A) issue the permit, if the requirements 
                under the National Environmental Policy Act of 
                1969 and other applicable law have been 
                completed within such timeframe; or
                  (B) defer the decision on the permit and 
                provide to the applicant a notice--
                          (i) that specifies any steps that the 
                        applicant could take for the permit to 
                        be issued; and
                          (ii) a list of actions that need to 
                        be taken by the agency to complete 
                        compliance with applicable law together 
                        with timelines and deadlines for 
                        completing such actions.
          (3) Requirements for deferred applications.--
                  (A) In general.--If the Secretary provides 
                notice under paragraph (2)(B), the applicant 
                shall have a period of 2 years from the date of 
                receipt of the notice in which to complete all 
                requirements specified by the Secretary, 
                including providing information needed for 
                compliance with the National Environmental 
                Policy Act of 1969.
                  (B) Issuance of decision on permit.--If the 
                applicant completes the requirements within the 
                period specified in subparagraph (A), the 
                Secretary shall issue a decision on the permit 
                not later than 10 days after the date of 
                completion of the requirements described in 
                subparagraph (A), unless compliance with the 
                National Environmental Policy Act of 1969 and 
                other applicable law has not been completed 
                within such timeframe.
                  (C) Denial of permit.--If the applicant does 
                not complete the requirements within the period 
                specified in subparagraph (A) or if the 
                applicant does not comply with applicable law, 
                the Secretary shall deny the permit.

           *       *       *       *       *       *       *


                            DISSENTING VIEWS

    The United States has hundreds of thousands of abandoned 
oil and gas wells with unknown or insolvent operators. Oil and 
gas operations began in the United States in the 1800s, and 
many of the sites in question were abandoned before modern 
regulation became widespread a century later.\1\ The scope of 
the problem is hard to determine. A 2019 report from the 
Interstate Oil & Gas Compact Commission (IOGCC) found that 
56,000 orphan wells have been documented, but the number of 
undocumented wells could be much higher, totaling anywhere from 
210,000 to 746,000.\2\ According to IOGCC, the majority of 
orphaned wells occur on private land, ranging from zero 
documented wells in one state to 13,266 wells in another.\3\ 
About half of states and provinces reported fewer than 100 
orphan wells.\4\ Currently, the vast majority of operators 
complete their reclamation responsibilities, though there are 
some bad actors who leave orphaned wells for the Bureau of Land 
Management (BLM) to clean up. According to the U.S. Government 
Accountability Office (GAO), of the 96,199 wells on federal 
lands, only 296 have been left to BLM to reclaim, roughly 0.3 
percent of the total.\5\
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    \1\Interstate Oil & Gas Compact Commission. Idle and Orphan Oil and 
Gas Wells: State and Regulatory Strategies, p. 5, 2019. https://
iogcc.ok.gov/sites/g/files/gmc836/f/documents/2021/
2020_03_04_updated_idle_and_orphan_oil_and_gas_wells_report.pdf.
    \2\Id. at 14.
    \3\Id. at 12.
    \4\Id. at 5.
    \5\U.S. Government Accountability Office. Oil and Gas: Bureau of 
Land Management Should Address Risks from Insufficient Bonds to Reclaim 
Wells. GAO-19-615: Published: Sep 18, 2019. https://www.gao.gov/
products/GAO-19-615.
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    This issue was partially addressed in the Infrastructure 
Investment and Jobs Act (IIJA), which included a $4.7 billion 
investment to plug orphaned wells.\6\ The IIJA created a 
federal program to clean up orphaned wells on federal lands, a 
Tribal program to clean up orphaned wells on Tribal lands and 
also authorized grants for states to clean up orphaned wells on 
state and private lands.\7\
---------------------------------------------------------------------------
    \6\Public Law 117-58.
    \7\Id.
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    Similar to the IIJA, H.R. 2415, the Orphaned Well Clean-up 
and Jobs Act of 2021, aims to address this issue by creating a 
program at the Department of the Interior (DOI) that would 
provide funding to plug orphaned wells and remediate and 
reclaim orphan wells on federal land. However, H.R. 2415 
diverges from current law by requiring operators to pay new 
fees for idled wells and significantly increasing bonding 
requirements for operations on federal land. Unfortunately, 
H.R. 2415 takes an extreme partisan path on what should be a 
bipartisan issue by also predicating millions of dollars of 
grant funding on the adoption of new regulations, including new 
bonding requirements and overly stringent methane emissions 
regulations. These provisions would be extremely burdensome to 
current operators, disincentivizing domestic energy development 
during a time when energy prices are at or near historic 
levels. If enacted, this legislation would only exacerbate the 
current energy crisis by curtailing domestic energy production. 
Rather than enacting new burdensome requirements, additional 
Congressional oversight is needed to ensure the funds already 
authorized for orphan well cleanup in the IIJA are utilized 
efficiently and appropriately.
    For these reasons, I oppose H.R. 2415.

                                                   Bruce Westerman.

                                  [all]