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HR 1217119th CongressIn Committee

Orphan Well Grant Flexibility Act of 2025

Introduced: Feb 11, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs

Orphan Well Grant Flexibility Act of 2025 would modify the Energy Policy Act of 2005 to give states more flexibility in applying for and using grants to plug and remediate orphan wells. The bill says states are not required to measure methane emissions or conduct certain monitoring activities as a condition of grant eligibility, and it allows estimates based on pre- or post-plugging monitoring data to be used—if states choose to collect such data. In addition, the bill directs the National Academies of Sciences, Engineering, and Medicine (NAS) to study how plugging and remediation activities affect communities, including economic development, housing trends, and water quality, with input from states across all regions and coordination with HUD, the Interstate Oil and Gas Compact Commission, and other federal agencies. The NAS study must be completed using existing Interior Department funds and roughly within 18 months after the last grant is awarded. The core goals are to provide grant applicants with flexibility on methane-measurement requirements and to generate rigorous, independent evidence about the broader community impacts of the orphan-well plugging program to inform future policy choices.

Key Points

  • 1States are not required to measure methane emissions or conduct certain mandated activities as a condition of eligibility for an orphan-well grant; measurement is optional.
  • 2The act clarifies that grant-related estimates of emissions may include data derived from pre-plugging or post-plugging monitoring, which states may collect but are not required to collect using grant funds.
  • 3The National Academies will study the community impact of the plugging and remediation program, focusing on economic development, housing trends, and other benefits such as water quality in areas with many plugged sites.
  • 4The NAS study must involve at least one representative state from each U.S. region and include consultation with HUD, the Interstate Oil and Gas Compact Commission, and other federal agencies as appropriate.
  • 5A final NAS report is due within 18 months after the last grant is awarded under the Energy Policy Act section 349; the study is to be funded with existing Interior Department resources.

Impact Areas

Primary group/area affected: States applying for and administering orphan-well plugging grants, and communities in oil- and gas-producing regions where many wells are plugged or remediated.Secondary group/area affected: Homeowners, renters, and local housing markets (through potential housing and community development impacts); local governments and regional planning bodies; water quality in affected areas.Additional impacts: Interagency coordination (HUD, Interior, and related federal entities) and data sharing with industry coalitions; potential administrative flexibility in grant programs; use of existing funds rather than new appropriations for the NAS study.
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