Initial State Grants

Each state may receive a large-scale Initial State Grant up to $25 million if the state submits a request for funding to the Department of the Interior by 5/13/2022.

This request must include:

  1. A certification that (templates are provided at the end of the Initial Grant guidance document)
    • the state is a member state or associate member state of the Interstate Oil and Gas Compact Commission;
    • there are one or more documented orphaned wells located in the state; and
    • the state will use not less than 90% of the funding requested under this subsection to issue new contracts, amend existing contracts, or issue grants for plugging, remediation, and reclamation work not later than 90 days after the date of receipt of the funds.

Rather than the large-scale Initial Grant above, a state may request up to $5 million if the following requirements are met:

  1. Requests funding under this provision,
  2. Does not receive a grant under the larger Initial Grant above, and
  3. Certifies to the Secretary of the Interior that the state
    • has in effect a plugging, remediation, and reclamation program for orphaned wells; or
    • has the capacity to initiate such a program; or
    • the funds will be used to carry out any administrative actions necessary to develop an application for a formula grant or a performance grant.


Subject to the availability of appropriations, the Secretary shall distribute Initial Grant funds no later than 30 days after the date on which the State submits to the Secretary the certification required for the large-scale Initial Grant (up to $25 million) or the small-scale Initial Grant (up to $5million).

Deadline for Expenditure

A state that receives Initial Grant funds shall reimburse the Secretary in an amount equal to the amount of the funds that remain unobligated on the date that is one year after the date of receipt of the funds (12 months after the effective date of the grant).


Not later than 15 months after the date on which a state receives Initial Grant funds, the state shall submit to the Secretary a report that describes the means by which the state used the funds in accordance with the certification submitted by the state for the large-scale or small-scale Initial Grant. This is in addition to quarterly financial and performance reports required throughout the life of the grant.

Additional detail on the application process and reporting requirements are provided in the Initial Grant Guidance document. If there is any discrepancy between the content of this website and the Initial Grant guidance document, the Grant guidance document prevails.


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