Orphan Well Grant Flexibility Act of 2025

Bill Number: H.R. 1217
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Environmental Protection
Status: Introduced
Latest Action: 2025-02-11: Referred to the House Committee on Natural Resources.
Last Updated: 2026-03-30T14:11:32Z

AI-Generated Summary

Purpose

The Orphan Well Grant Flexibility Act of 2025 aims to update the Energy Policy Act of 2005 by providing states with more flexibility in measuring methane emissions from orphaned oil and gas wells (abandoned wells with no responsible owner) to qualify for federal grants. It also requires a study on how plugging and cleaning up these wells benefits local communities, such as through economic growth and improved environmental quality.

Key Provisions

Flexibility in Methane Emissions Measurement (Section 2):
States applying for grants under Section 349 of the Energy Policy Act of 2005 are no longer required to measure methane emissions (a greenhouse gas released from wells) or perform related activities as a condition for eligibility.
Grant estimates can include data from optional monitoring before or after plugging wells, which states may choose to collect using grant funds but are not obligated to do.

Study on Community Impacts (Section 3):
The Secretary of the Interior must contract with the National Academies of Sciences, Engineering, and Medicine within 180 days of the bill's enactment to conduct a study.
The study will examine how plugging and remediating orphan wells affects economic development, housing patterns, water quality improvements, and other benefits in high-activity areas.
Key elements include:
Input from at least one state in each U.S. region (Northeast, Southwest, West, Southeast, Midwest).
Consultations with the Department of Housing and Urban Development (on economic and housing effects), the Interstate Oil and Gas Compact Commission (for data), and other relevant federal agencies.
The National Academies must submit a report to Congress within 18 months after the final grant is awarded under the program.
The study will use existing funds from the Department of the Interior, with no new appropriations required.

Significant Changes to Existing Law

Amendments to Section 349 of the Energy Policy Act of 2005:
Removes mandatory methane emissions measurement and related activities as prerequisites for state grant eligibility, shifting them to optional practices.
Expands how emissions estimates are calculated by allowing the use of voluntary pre- or post-plugging monitoring data, which was not previously specified.
New Requirement:
Introduces a mandatory study on the broader community effects of the orphan well grant program, including coordination with other federal entities, which did not exist before.

Potential Impacts

On Government Agencies:
The Department of the Interior gains responsibility for overseeing the study and providing data, potentially increasing administrative workload but using existing budgets.
States receive greater flexibility in grant applications, reducing compliance costs and allowing focus on well plugging without emissions monitoring mandates.
The Department of Housing and Urban Development and other agencies may benefit from new data on how well remediation influences housing and economic planning.
On Citizens:
Communities near orphan wells could see indirect benefits, such as cleaner water, reduced methane pollution, job creation from remediation projects, and improved land for housing or development, as highlighted in the study.
On International Relations:
Minimal direct impact, though reducing U.S. methane emissions aligns with global climate goals and could support international environmental commitments.

Main Stakeholders Affected

States and Local Governments: Primary recipients of grants for orphan well cleanup; gain flexibility but must potentially contribute to the study.
Oil and Gas Industry: Affected through the Interstate Oil and Gas Compact Commission, which provides data; benefits from streamlined grant processes for well remediation.
Communities and Residents: In areas with high orphan well concentrations, potentially gaining from economic, housing, and environmental improvements.
Federal Agencies: Department of the Interior (leads study), Department of Housing and Urban Development (consults on socioeconomic effects), and National Academies (conducts research).
Environmental and Research Groups: National Academies and similar entities involved in assessing program outcomes.

Notable Legal, Constitutional, or Political Implications

Legal Implications:
Enhances administrative flexibility for states under federal grant programs, potentially reducing litigation over compliance requirements by making emissions activities voluntary.
Ensures the study uses existing funds, avoiding new spending mandates that could face budget challenges.
Constitutional Implications:
None significant; the bill operates within Congress's authority to regulate energy policy and interstate commerce, with no apparent conflicts to federalism or property rights.
Political Implications:
Balances environmental protection (through well plugging) with reduced regulatory burdens on states, which may appeal to bipartisan interests in energy production and climate action.
The required study could inform future legislation on orphan wells, promoting evidence-based policy without immediate partisan divides.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Thompson, Glenn [R-PA-15]

Cosponsors (4)

Rep. Deluzio, Christopher R. [D-PA-17], Rep. Estes, Ron [R-KS-4], Rep. Langworthy, Nicholas A. [R-NY-23], Rep. Lawler, Michael [R-NY-17]

Recent Actions

2025-02-11: Referred to the House Committee on Natural Resources.
2025-02-11: Introduced in House
2025-02-11: Introduced in House

Bill Versions

Orphan Well Grant Flexibility Act of 2025 — issued 2025-02-11 — PDF (5 pages)