# Understanding the POWER Act of 2021

This bill tackles a real environmental problem that most people don't know exists: thousands of abandoned oil and gas wells scattered across the country that nobody is responsible for cleaning up. These "orphaned wells" are old drilling sites where the original company either went out of business, disappeared, or simply walked away without properly sealing the wells. Left unplugged, these wells can leak methane gas into the atmosphere, contaminate groundwater, and create safety hazards for nearby communities.

The POWER Act creates two main programs to fix this problem. First, it increases federal funding for cleaning up orphaned wells on government-owned land, doubling the annual budget from $25 million to $50 million for the years 2022 through 2026. Second, and more significantly, it establishes a new grant program where the federal government gives money directly to states and Native American tribes to plug and remediate orphaned wells on state, tribal, and private lands. States and tribes can use these grants not just to seal the wells themselves, but also to restore damaged land and wildlife habitat around the sites, identify which wells are orphaned, and figure out if any original companies can be tracked down to pay for the cleanup.

The bill also includes protections for small businesses and companies that help with the cleanup work—they can't be sued for environmental problems they didn't cause while doing the remediation. Additionally, the bill creates a technical assistance program where the Department of Energy helps states develop practical and cost-effective ways to handle these environmental problems. The legislation authorizes $400 million per year from 2021 through 2025 for these state and tribal grant programs, which should create jobs in communities where oil and gas production has declined, particularly since the economic downturn that began in March 2020.

POWER Act of 2021

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.