Phase 1 State Formula Grant Guidance - July 2023

OMB No.: 1093-0012
Expires: XX/XX/XXX

UNITED STATES DEPARTMENT OF THE INTERIOR
ORPHANED WELLS PROGRAM OFFICE
BIPARTISAN INFRASTRUCTURE LAW SECTION 40601
PHASE 1 STATE FORMULA GRANT GUIDANCE-JULY 2023

I.

INTRODUCTION
President Biden signed the Bipartisan Infrastructure Law (BIL; Public Law 117-58) on
November 15, 2021, making a once-in-a-generation investment in the Nation's
infrastructure and economic competitiveness. This landmark investment will rebuild
America's critical infrastructure, tackle the climate crisis, address legacy polluted sites,
advance environmental justice, and drive the creation of good-paying jobs that provide a
free and fair chance to join a union. By addressing long overdue infrastructure and
environmental improvements and strengthening our resilience to the changing climate,
this investment in our communities across the country will grow the economy sustainably
and equitably for decades to come.
Section 40601 of the BIL creates an orphaned well site plugging, remediation, and
reclamation program within the Department of the Interior (DOI) to address orphaned
wells and well sites on Federal lands. 1 Subsection (d) creates a grant program for Tribes,
and subsection (c) creates three types of grants for states:
1. Initial grants (Section 4060l(c)(3))
2. Formula grants (Section 4060l(c)(4))
3. Performance grants (Section 4060l(c)(5))
On January 10, 2023, Secretary Haaland issued Secretary's Order 3409 to establish an
Orphaned Wells Program Office (OWPO) to ensure effective, accountable, and efficient
implementation of the BIL's historic investment in orphaned well clean-up. The OWPO,
in the Office of Policy, Management and Budget, will carry out the Secretary's
responsibilities under Section 40601 ofthe BIL, including issuing, administering, and
overseeing State grants.
This document sets forth the application process for States to receive Phase 1 Fommla
grants and provides requirements for carrying out activities under the State Formula
grants authorized by Sec. 4060l(c)(4) of the BIL. Formula grant funding is based on the
Notice oflntent data provided by the States in December 2021 and the formula
established by the Secretaiy. Attachment B shows how much each State is eligible to

1

Section 40601 amends Section 349 of the Energy Policy Act of 2005, but for simplicity all references to the
amended Section 349 will be written as components of Section 40601 of the BIL in this document.