Legislation recently introduced in the state Senate would sell alternative energy credits as a method to curb orphan and abandoned wells.
Senate Bill 1330 would direct the Pennsylvania Department of General Services to sell the alternative energy credits the state earns annually as part of a 15-year solar power procurement deal with Constellation. Funds from the sale would be used to cap orphan and abandoned oil and gas wells.
The state could collect an estimated $227 million during the life of the contract based on the most recent solar credit compliance costs for Pennsylvania.
“This legislation provides for a dedicated and recurring revenue stream that will address several thousand more sites than Pennsylvania could with just federal money alone,” State Sen. Gene Yaw (R-Bradford), of the Senate Environmental Resources and Energy Committee chairman, who introduced the bill, said. “There is no reason we can’t and shouldn’t leverage these credits to help fill the gap.”
There are as many as 560,000 abandoned oil and gas wells in Pennsylvania, according to Department of Environmental Protection estimates. These wells can pose environmental and safety risks to residents.
The U.S. Congress awarded Pennsylvania $104 million in 2022 as part of an infrastructure investment package to help cap orphan and abandoned wells.