HARRISBURG – State Sen. Gene Yaw (R-23), chairman of the Senate Environmental Resources and Energy Committee, recently introduced legislation to curb orphan and abandoned wells through the sale of alternative energy credits (AECs).
Senate Bill 1330 directs the Pennsylvania Department of General Services to sell any alternative energy credits the commonwealth earns annually as part of its 15-year solar power procurement deal struck with Constellation to generate money to cap more orphan and abandoned oil and gas wells. Based on the most recent solar credit compliance costs for Pennsylvania, the state could collect an estimated $227 million during the life of the contract for this purpose.
“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,” Yaw said. “There is no reason we can’t and shouldn’t leverage these credits to help fill the gap.”
The Department of Environmental Protection estimates Pennsylvania has as many as 560,000 abandoned oil and gas wells, which can pose safety and environmental risks to residents. In 2022, Congress awarded the state $104 million as part of its infrastructure investment package to help tackle this problem, with more federal funding anticipated in the coming years.
For more state-related news and information, constituents can visit Senator Yaw’s website at www.SenatorGeneYaw.com or follow him on Facebook and Twitter @SenatorGeneYaw.
CONTACT:
Elizabeth Weitzel
717-787-3280