POWER Act of 2021
Bill: H.R.4781 | Sponsor: Rep. Thompson, Glenn (R-PA)
Policy area: Energy

Summary:
Plugging Orphan Wells and Environmental Restoration Act of 2021 or the POWER Act of 2021
This bill addresses orphaned, abandoned, or idled oil and gas wells on federal, tribal, state, or private lands.
Specifically, the bill reauthorizes through FY2026 the program to remediate, reclaim, and close orphaned, abandoned, or idled oil and gas wells located on federal land.
Additionally, the Department of the Interior must establish a program to provide grants to states and Indian tribes to remediate, reclaim, and close orphaned oil and gas wells located on state, tribal, or private lands. In providing grants, priority must be given to states and Indian tribes that already have an established program to carry out such activities.
Finally, the Department of Energy must provide technical assistance to oil and gas producing states and Indian tribes to ensure practical and economical remedies for environmental problems caused by orphaned or abandoned oil and gas well sites on state, tribal, or private land.

To amend the Energy Policy Act of 2005 to reauthorize a program to 
    address orphaned, abandoned, or idled wells on Federal land, to 
 establish a program to provide grants to States and Tribes to address 
                orphaned wells, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Plugging Orphan Wells and 
Environmental Restoration Act of 2021'' or the ``POWER Act of 2021''.

SEC. 2. FEDERAL LANDS.

    Section 349(h)(1) of the Energy Policy Act of 2005 (42 U.S.C. 
15907(h)(1)) is amended by striking ``$25,000,000 for each of fiscal 
years 2006 through 2010'' and inserting ``$50,000,000 for each of 
fiscal years 2022 through 2026''.

SEC. 3. STATE AND TRIBAL LANDS.

    (a) State and Tribal Orphaned Wells.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary of the Interior shall 
        establish a program to provide grants to States and Indian 
        Tribes to remediate, reclaim, and close orphaned oil and gas 
        wells located on State, Tribal, or private lands.
            (2) Activities.--Funds distributed under this subsection 
        may be used by States and Indian Tribes for--
                    (A) reclaiming, remediating, and closing orphaned 
                wells;
                    (B) reclaiming and remediating well pads and access 
                roads associated with orphaned wells;
                    (C) restoring native species habitat that has been 
                degraded due to the presence of orphaned wells;
                    (D) seeking to determine the identities of 
                potentially responsible parties associated with the 
                orphaned well sites, 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) identification and characterization of 
                undocumented orphaned wells on State, Tribal, and 
                private lands;
                    (F) ranking orphaned or abandoned well sites based 
                on factors such as public health and safety, potential 
                environmental harm, and other land use priorities;
                    (G) administration of a State or Tribal orphaned 
                well closure program, provided that no more than 10 
                percent of the funds received by a State or Indian 
                Tribe under this subsection may be used for this 
                purpose; and
                    (H) making information regarding the use of funds 
                under this subsection available to the public.
            (3) Priority.--In providing grants under this subsection, 
        the Secretary shall give priority to States and Indian Tribes 
        that have an established State or Tribal program for the 
        remediation, reclamation, or closure of abandoned, idled, or 
        orphaned oil and gas wells.
            (4) Restrictions and requirements.--
                    (A) No new obligations related to the bonding, 
                plugging, or transfer of stripper wells.--No State or 
                Indian Tribe receiving a grant under this subsection 
                may use such grant funds to impose new obligations 
                related to the bonding, plugging, or transfer of 
                stripper wells.
                    (B) Procedures for the protection of small 
                businesses.--A State or Indian Tribe receiving a grant 
                under this subsection shall be required to adhere to 
                measures and procedures for the protection of small 
                businesses comparable to those required by the Small 
                Business Regulatory Enforcement Fairness Act of 1996.
            (5) Application.--States and Indian Tribes shall be 
        eligible for grants under this subsection upon application to 
        the Secretary of the Interior. Such application shall include--
                    (A) a prioritized list of the wells, well sites, 
                and affected areas that will be remediated, reclaimed, 
                or closed;
                    (B) a description of the activities to be carried 
                out with the grant, including an identification of the 
                estimated health, safety, habitat, and environmental 
                benefits of remediating, reclaiming, or closing each 
                well, well site, or affected area;
                    (C) an estimate of the cost of each proposed 
                project;
                    (D) an estimate of the number of jobs that will be 
                created or saved through the projects to be funded 
                under this subsection;
                    (E) an estimate of the funds to be spent on 
                administrative costs; and
                    (F) a description of how the information regarding 
                the State's or Indian Tribe's activities under this 
                subsection will be made available to the public.
            (6) Allocation.--The Secretary shall, in consultation with 
        States, affected Indian Tribes, and the Interstate Oil and Gas 
        Compact Commission, develop a formula for the amount of grant 
        funding each State or Indian Tribe is eligible for under this 
        subsection, taking into account--
                    (A) the number of documented orphaned wells within 
                the State or on each Indian Tribe's lands;
                    (B) the amount of oil and gas activity within the 
                State or on Tribal lands in the previous 10 years; and
                    (C) the number of jobs lost in the oil and gas 
                sector since March 1, 2020.
    (b) Technical Assistance.--
            (1) In general.--The Secretary of Energy, in cooperation 
        with the Secretary, shall establish a program to provide 
        technical assistance to oil and gas producing States and Indian 
        Tribes to ensure practical and economical remedies for 
        environmental problems caused by orphaned or abandoned oil and 
        gas well sites on State, Tribal, 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, Tribal, 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.
    (c) Report to Congress.--Not later than one year after the date of 
enactment of this section, and every year thereafter, the Secretary 
shall submit to Congress a report on the programs established under 
this section, including the number of jobs created and the number of 
orphaned wells reclaimed.
    (d) Liability Protection.--A person who provides equipment, 
materials, or services to plug, or attempt to plug, an orphaned well 
pursuant to a grant awarded to a State or Indian Tribe under this Act 
shall be immune from civil liability in any legal proceeding brought to 
enforce an environmental law or otherwise impose liability for such 
conduct.
    (e) Definitions.--In this section, the following definitions apply:
            (1) Orphaned well.--The term ``orphaned well'' means any 
        well not in operation for which there is no responsible party 
        known to the Secretary to reclaim and remediate or close the 
        well site.
            (2) Responsible party.--The term ``responsible party'' has 
        the meaning given to it by the relevant State, or if the 
        relevant State does not provide a definition, means any person, 
        association, corporation, subsidiary, or affiliate that 
        directly or indirectly, controls, manages, directs, or 
        undertakes the activities with respect to an oil and gas lease 
        or any person or entity controlled by, or under common control 
        with, such person or entity.
            (3) Stripper well.--The term ``stripper well'' means an 
        onshore facility that produces, in a 12-month consecutive time 
        period--
                    (A) 15 barrels per well or less per calendar day of 
                crude oil; or
                    (B) 90,000 cubic feet per calendar day or less of 
                natural gas.
    (f) Appropriations.--There are authorized to be appropriated to the 
Secretary of the Interior $400,000,000 for each of fiscal years 2021 
through 2025 to carry out this section.
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