Gravity-Based Energy Storage Well Pilot Program.

Senator Limón's proposal to establish a Gravity-Based Energy Storage Well Pilot Program would authorize the conversion of up to 250 existing oil and gas wells into energy storage facilities that generate power by raising and lowering weights within sealed well casings. The program would operate through January 1, 2035, with converted wells requiring annual mechanical integrity testing and continuous monitoring for fluid leaks.

The legislation establishes specific criteria for well conversion eligibility, mandating that wells must be properly plugged, isolated from hydrocarbon reservoirs, and maintain mechanical integrity without risking fluid migration into aquifers. Operators must notify state agencies, nearby schools, and residents within 3,200 feet if mechanical integrity is compromised or leaks occur. The program requires operators to provide monthly energy discharge reports and maintain prevailing wages for conversion work.

By January 2033, the Secretary for Environmental Protection must evaluate the pilot program in consultation with well operators, state agencies, local jurisdictions, environmental organizations, and tribes. This assessment will inform recommendations to the Legislature regarding a potential permanent program, addressing regulatory parameters, environmental safeguards, fee structures, and renewable energy generation metrics. Wells authorized under the pilot program would revert to idle well status upon program termination unless new authorizing legislation is enacted.