Orphaned Well Cleanup and Jobs Act of 2021
Bill: H.R.2415 | Sponsor: Rep. Leger Fernandez, Teresa (D-NM)
Policy area: Energy

Summary:
Orphaned Well Cleanup and Jobs Act of 2021
This bill establishes incentives and requirements to permanently plug orphaned (i.e., abandoned) oil and gas wells and clean up pollution leaking from such wells.
Specifically, the bill directs the Department of the Interior to establish grant programs to plug and clean up orphaned wells located on federal, state, tribal, and private land.
Interior must also issue regulations that require each operator of an idled well on federal land to pay an annual, nonrefundable fee for each well. If the operator fails to pay the fee, then Interior may assess a civil penalty. Revenues generated from such fees must be used for activities related to cleaning up orphaned wells.
Additionally, the bill requires the review of the adequacy of bonds or other financial arrangements for oil and gas development on public land leased from the federal government. Such bonds or financial arrangements are currently required to ensure developers have adequate financial resources to remediate and reclaim public land, water, or other resources after wells are abandoned or oil and gas development ceases.

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.


 


    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 ``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.''.
                                                 Union Calendar No. 464

117th CONGRESS

  2d Session

                               H. R. 2415

                          [Report No. 117-645]

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