Overview
Title
An Act To amend the Energy Policy Act of 2005 to direct the Secretary of Energy to carry out a research, development, and demonstration program with respect to abandoned wells, and for other purposes.
ELI5 AI
H. R. 4877 wants to help take care of old, unused wells by finding out where they are, fixing them, and thinking of new ways to use them, like for storing energy. The plan will cost a lot of money over five years, and there are worries about making sure the money is spent wisely and that everyone works together nicely.
Summary AI
H. R. 4877 aims to amend the Energy Policy Act of 2005 by instructing the Secretary of Energy to set up a program focused on research and development concerning abandoned wells. The program seeks to enhance data collection on the location and condition of these wells, improve techniques for their remediation, and explore alternative uses for them, such as geothermal energy or carbon storage. It emphasizes collaboration with federal and state agencies and local communities, and it allocates specific funding amounts for each fiscal year from 2024 to 2028. The initiative will end five years after its start.
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AnalysisAI
General Summary of the Bill
The bill, titled the "Abandoned Well Remediation Research and Development Act," is an amendment to the Energy Policy Act of 2005. It proposes creating a program under the Secretary of Energy aimed at researching and developing new methods for dealing with abandoned oil and gas wells. The objectives of this program include improving the identification, plugging, remediation, reclamation, and repurposing of these wells, as well as mitigating their environmental impacts. The program is designed to coordinate efforts across federal and state agencies, educational institutions, and the private sector, with funding provided annually from 2024 to 2028.
Summary of Significant Issues
Several key issues have been identified in the bill that could influence its effectiveness and efficiency:
Definition Ambiguities: The term "abandoned well" lacks clear criteria distinguishing permanently abandoned wells from those temporarily unused, causing potential confusion in implementation.
Funding Oversight: While the bill outlines significant funding for the program, it does not specify oversight mechanisms to ensure accountability in the use of these funds.
Success Measurement: There are no specific metrics or criteria to evaluate the success of the program, which could lead to inefficiencies.
Broad Language on Repurposing: The bill uses broad language regarding the repurposing of wells, which may lead to potential misuse of funds if not carefully defined.
Coordination and Conflict of Interest: The bill requires coordination with numerous stakeholders but lacks detailed guidance on addressing potential conflicts of interest and differing priorities.
Sunset Clause without Review: The program is set to terminate after five years without a stipulated review process to assess the necessity of its continuation.
Impact on the Public
Generally, the bill is designed to address environmental and safety concerns related to abandoned oil and gas wells. By focusing on improving methods for dealing with these wells, the public might benefit from reduced environmental hazards, such as groundwater contamination and methane emissions. However, the absence of clear metrics for success and oversight raises concerns about efficiently utilizing public funds.
Impact on Specific Stakeholders
Government and Agencies: The bill mandates collaboration between federal and state agencies, which could enhance the efficient pooling of resources and expertise. However, the lack of clear coordination mechanisms might lead to inefficiencies or bureaucratic conflicts.
Educational Institutions and Researchers: Opportunities for research and development funding may increase through involvement in the program, benefiting academic institutions engaged in relevant fields.
Private Sector: Companies specializing in technologies related to well identification and remediation might find new business opportunities. However, the lack of guidelines on managing conflicts of interest means that some entities may gain undue advantage.
Local Communities: Impacted communities, including landowners, might experience positive environmental outcomes from better-managed oil and gas wells. However, without clear criteria for involvement or benefits, some communities might not fully realize these advantages.
In summary, while the bill has the potential to improve environmental and safety outcomes from abandoned wells, addressing the highlighted issues is essential for ensuring its effective and accountable implementation.
Financial Assessment
In assessing the financial aspects of H. R. 4877, the bill provides explicit allocations for funding over a five-year period to establish and maintain a program focused on abandoned wells. This program is directed by the Secretary of Energy as part of an amendment to the Energy Policy Act of 2005. The bill outlines the specific budget for each fiscal year:
- For fiscal year 2024, $30,000,000 is allocated.
- For fiscal year 2025, $31,250,000 is allocated.
- For fiscal year 2026, $32,500,000 is allocated.
- For fiscal year 2027, $33,750,000 is allocated.
- For fiscal year 2028, $35,000,000 is allocated.
This represents a total financial commitment of $162,500,000 over the five years the program is active.
The funding particulars raise several issues, particularly concerning financial oversight and accountability. The bill mentions these substantial sums but lacks specifics about oversight mechanisms or how these funds will be tracked to ensure they are used effectively and transparently. As highlighted in the issues section, this absence of detail presents concerns regarding accountability. Without clear oversight provisions, there's an increased risk of inefficient use or misallocation of funds.
Furthermore, the bill includes broad language around the potential repurposing of abandoned wells for alternative uses, such as geothermal energy or carbon storage. The lack of precise definitions or criteria risks potential misuse of the allocated funding if not carefully managed. This could result in expenditures that do not align with the intended vision of the program, thus not achieving its objectives efficiently.
Another financial point of concern relates to the amendment of the Research and Development, Competition, and Innovation Act within the bill. There's an adjustment in funding amounts allocated to other sections, such as a reduction from $600,000,000 to $507,500,000 in one instance, and from $1,000,000,000 to $930,000,000 in another. This reallocation may affect other programs under the Act, and without detailed justification, it raises questions about the financial implications for those areas.
Finally, the termination or "sunset" clause stipulates that the program will end in five years without specifying how the program's effectiveness will be evaluated. The lack of a review process might lead to short-sighted financial investments without a clear understanding of long-term benefits or continued value of the program. Establishing such a process is crucial for ongoing financial accountability and determining the potential need for further investments.
Issues
The definition of 'abandoned well' in Section 969E lacks criteria for determining when a well is considered permanently abandoned versus temporarily unused, which could lead to ambiguity in application.
The funding section in Section 2 outlines large sums without specifying oversight mechanisms to ensure funds are used appropriately, raising concerns for accountability.
Section 969E lacks specific criteria for measuring the success of the program, which could lead to inefficiencies or lack of accountability.
The language around 'repurposing of abandoned wells for alternative uses' in Section 969E is broad and could lead to potential misuse of funds if not clearly defined.
The bill does not specify guidelines on addressing potential conflicts of interest, especially when involving the private sector, as seen in Section 969E, which may result in decisions that favor certain entities.
The coordination clause in Section 969E requires collaboration with multiple stakeholders but lacks detail on how conflicts of interest or differing priorities will be managed.
The termination or 'sunset' clause in Section 969E specifies closure after five years without specifying a review process for determining the necessity of the program's continuation or adaptation.
Section 969E lacks specificity on how the coordination between the Secretary of Energy and various entities (State and local governments, institutions, etc.) will be structured or function, which could lead to inefficient collaboration.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of this act simply states its name, which is the “Abandoned Well Remediation Research and Development Act.”
2. Amendment to the Energy Policy Act of 2005 Read Opens in new tab
Summary AI
The amendment to the Energy Policy Act of 2005 introduces a new program focused on researching and developing strategies to manage abandoned oil and gas wells. This program aims to improve methods for locating, plugging, and repurposing these wells while addressing their environmental impacts. It involves coordination with various government and private entities and is allocated specific funding over five fiscal years, terminating five years after its enactment.
Money References
- “(1) For fiscal year 2024, $30,000,000. “(2) For fiscal year 2025, $31,250,000. “(3) For fiscal year 2026, $32,500,000.
- “(4) For fiscal year 2027, $33,750,000.
- “(5) For fiscal year 2028, $35,000,000.
- (b) Conforming amendment.—Paragraph (6) of section 10771 of subtitle O of title VI of the Research and Development, Competition, and Innovation Act (enacted as division B of Public Law 117–167) is amended— (1) in the matter preceding subparagraph (A), by striking “2026” and inserting “2028”; (2) in subparagraph (A), by striking “$600,000,000” and inserting “$507,500,000”; (3) in subparagraph (B), by striking “and” after the semicolon; (4) in subparagraph (C)— (A) by striking “$1,000,000,000” and inserting “$930,000,000”; and (B) by striking the period and inserting “; and”; and (5) by adding at the end the following new subparagraph: “(D) $162,500,000 to carry out abandoned wells research, development, and demonstration activities under section 969E of the Energy Policy Act of 2005, in accordance with such section.”. ---
969E. Abandoned wells research, development, and demonstration program Read Opens in new tab
Summary AI
The section establishes a program led by the Secretary of Energy to research and develop better methods for locating and managing abandoned wells, with the aim of improving environmental safety. It involves coordinating with various agencies and communities, and includes specific funding amounts for each year from 2024 to 2028, with the program set to end five years after the section takes effect.
Money References
- (e) Funding.—There is authorized to be appropriated to the Secretary to carry out this section amounts authorized pursuant to section 10771 of subtitle O of title VI of the Research and Development, Competition, and Innovation Act (enacted as division B of Public Law 117–167), as follows: (1) For fiscal year 2024, $30,000,000. (2) For fiscal year 2025, $31,250,000. (3) For fiscal year 2026, $32,500,000. (4) For fiscal year 2027, $33,750,000.
- (5) For fiscal year 2028, $35,000,000.