Federal Funding Update for Infrastructure Investment and Jobs Act in Kentucky
The update on federal funding allocations for infrastructure investment and job creation in Kentucky highlights efforts in orphaned and abandoned well plugging as well as abandoned mine land reclamation. Significant progress has been made in plugging orphan wells, with a focus on local contractors and subcontractors. Additionally, the allocation for abandoned mine land reclamation aims to reduce or eliminate the unfunded inventory of lands affected by coal mining in Kentucky.
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Infrastructure Investment and Jobs Act Federal Funding Update Energy and Environment Cabinet Rebecca Goodman, Cabinet Secretary Dennis Hatfield, Director, Division of Oil and Gas Justin Adams, Director, Division of Abandoned Mine Lands 1
Orphaned & Abandoned Well Plugging Funding Source US Department of Interior Program Funding: $25M Initial Grant received on 8/25/22 Required to obligate 90% within 90 days (completed); with one year to fully spend Eligible activities include plugging, remediation and reclamation of orphaned oil and gas wells and facilities. 2
Orphaned & Abandoned Well Plugging Funding Source US Department of Interior To accomplish the 90% obligated mandate, KDOG assembled 42 orphan well plugging RFP s in 26 counties; contracted to plug 638 orphan wells Seven of the nine companies awarded contracts are local to Kentucky and seven of the nine subcontractors they utilize are also local to Kentucky. To date, KDOG has plugged 328 orphan well sites in 15 Kentucky counties under the DOI Initial Grant. Expenditures to date: $8,392,418 3
Orphan Well Plugging Contracts Awarded to Date
Federal Orphan Wells Work Ongoing
Orphan Wells Plugged to Date COUNTY NAME Christian Cumberland Daviess Estill Henderson Lawrence Lee McLean Ohio Powell Pulaski Union Warren Webster TOTAL NO. OF WELLS PLUGGED 33 36 44 34 10 21 25 10 35 22 18 8 33 7 336 *YTD 02/06/2023
Abandoned Mine Land Reclamation Funding Source US Department of Interior The main purpose of the AML BIL funds is to help reduce or eliminate the unfunded/unreclaimed AML inventory of uncertified states with AML programs. For Kentucky, AML-eligible is defined as lands and waters affected by coal mining that ceased prior to May 18, 1982. Program Funding: Received $74.253 million per year for 15 years Received award notice 10/19/22 We have 5 years to spend each annual award with possibility of 1 year extensions Expenditures to date: $1,712,164 7
Abandoned Mine Land Reclamation (continued) Funding Source US Department of Interior Some typical AML problems are landslides, drainage problems, open mine portals, coal refuse piles, and underground mine subsidence. Where groundwater supplies have been impacted by AML-eligible coal mining, funds may be used to repair and replace existing AML-funded water supply systems. 8
Abandoned Mine Land Reclamation (continued) Funding Source US Department of Interior The federal Office of Surface Mining Reclamation and Enforcement (OSMRE) Guidance for the BIL AML Program includes the following: Encourages aggregation of bids into larger statewide or regional contracts. Encourages the support of pre-apprenticeship, apprenticeship, and youth training programs. Encourages the incorporation of input from disadvantaged communities regarding project selection. Encourages the engagement of the public for their input on project identification. 9
Wildland Fire Program Eligible Activities Funding Source US Forest Service Received awards totaling $2.3M in November/December 2022 Community Wildfire Defense Grant - Assist at-risk local communities with planning and mitigating against the risk created by wildfire. Volunteer Fire Assistance - Assist rural volunteer fire departments by providing grants for training and equipment in order to better suppress wildfires State Fire Response Assistance - Technical training; purchase and/or maintenance of firefighting equipment; support risk assessments and fire management planning projects in communities. Expenditures to date: $1,888 10
Brownfield Program Funding Source US EPA A brownfield is a property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant. Received $650,000 on 2/3/23 with 5 years to spend Eligible Activities Provide grant writing assistance, capacity development and redevelopment guidance to communities. Identify environmental justice communities for enhanced outreach and assistance. Build out internal and external GIS capabilities to assist communities in tracking progress. Expenditures to date: $70,788 (prior award expenditures were approved) 11
Gulf Hypoxia Program Federal Agency - EPA Received $1.7M on 1/18/23 with 5 years to spend Eligible Activities Fund staff to deploy and manage Nutrient Reduction Strategy efforts and assist farmers with nutrient management plans Develop training tools for wastewater and municipal stormwater managers that improve nutrient treatment efficiency and share knowledge of innovative practices Fund additional conservation Best Management Practices (BMPs) through State Cost Share Fund additional U.S. Geological Survey flow gauges to improve nutrient monitoring Expenditures to date: $8,892 12
Energy Program Funding Funding Source US Department of Energy Awaiting guidance from Federal Department of Energy for the following federal awards: State Energy Program Energy Efficiency Block Grant Program Energy Efficiency Revolving Loan Capitalization EEC can provide additional details regarding these awards as details are provided. 13
Questions? 14
