Financial and Technical Assistance from the Methane Emissions Reduction Program
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Overview
The Inflation Reduction Act provides new authorities under the Clean Air Act to provide financial and technical assistance to reduce methane emissions from the oil and gas sector through the Methane Emissions Reduction Program. As part of this program, EPA and the U.S. Department of Energy (DOE) will provide $1.36 billion in financial and technical assistance.
Financial and technical assistance opportunities under the Methane Emissions Reduction Program will support a number of activities, including preparing and submitting greenhouse gas reports, monitoring methane emissions, and reducing methane and other greenhouse gas emissions from petroleum and natural gas systems by improving and deploying equipment to reduce emissions, supporting innovation, and permanently shutting in and plugging wells. This assistance will also help mitigate health effects in low-income and disadvantaged communities, improve climate resiliency, and support environmental restoration. This assistance will also support activities at low-producing (marginal) conventional wells.
Financial and technical assistance will support President Biden’s Justice40 Initiative which mandates that 40% of the overall benefits of certain Federal investments flow to disadvantaged communities.
These financial and technical assistance opportunities complement other efforts to monitor and reduce emissions from the U.S. oil and gas sector. Through the Methane Emissions Reduction Program, EPA is also establishing a Waste Emissions Charge for methane and revising Subpart W of the Greenhouse Gas Reporting Program regulations for the oil and gas sector.
Funding Opportunity Announcements
Competitive Funding for Methane Emissions Monitoring and Mitigation
On August 26, 2024, the application period closed for $850 million in federal funding that EPA and DOE announced in June. Funding focuses on activities that will help measure and reduce methane emissions from the oil and gas sectors. This competitive opportunity solicited applications from a broad range of eligible U.S. entities, including industry, academia, non-governmental organizations, Tribes, state and local government, and others. The funding will specifically help small oil and natural gas operators reduce methane emissions and transition to available, innovative methane emissions reduction technologies. Other activities under this solicitation will support partnerships that improve emissions measurement and provide accurate, transparent data to impacted communities. For more information about the funding opportunity, read the press release.
2023 Administrative and Legal Requirements Document (ALRD) Funding—Mitigating Emissions from Marginal Conventional Wells
As part of the EPA-DOE partnership, DOE’s National Energy Technology Laboratory (NETL) awarded 14 states a total of $350 million to support industry efforts to cut methane emissions from the oil and gas sector. These funds will help oil and gas well owners and/or operators who choose to reduce methane emissions from low-producing conventional wells on nonfederal lands through voluntary, permanent well plugging. States will also be able to use the funding to support environmental restoration of well sites.
Research has shown that low-producing conventional wells, also called marginal conventional wells, can account for disproportionately high methane emissions relative to production volumes.
EPA and DOE will also provide technical assistance to help the states implement cost-effective solutions to measure and reduce methane emissions from these wells. Monitoring and mitigating methane emissions from the oil and gas sector will benefit energy communities, which often include low-income and communities of color, and deliver long-lasting health and environmental benefits across the country.
Learn more about the grant awards.
Technical Assistance
Methane Measurement Guidelines for Marginal Conventional Wells
On June 14, 2024, the National Energy Technology Laboratory (NETL) announced the release of a detailed report that presents guidelines for measuring methane emissions from low-producing oil and natural gas wells, also known as marginal conventional wells. The guidelines were developed to assist the 14 states that received awards under the ALRD.
The guidelines describe procedures for the grant recipients to adequately measure and monitor methane emissions prior to and following the voluntary plugging of marginal conventional wells. Marginal conventional wells are ones that produce less than 15 barrels of oil and/or less than 90,000 cubic feet of natural gas per day. The guidelines provide information and direction on methane measurement approaches and technologies to help improve the effectiveness and accuracy of methane emissions measurements from marginal conventional wells.
EPA and DOE Partnership
EPA, DOE, and the DOE-NETL have partnered to provide $1.36 billion in financial and technical assistance. This partnership will leverage EPA and DOE’s shared commitment and joint expertise in advancing methane mitigation technologies for the oil and gas sector. DOE-NETL brings additional experience in financial assistance administration and complements EPA’s expertise in quantifying and reducing methane emissions. This EPA and DOE partnership will ensure funds are distributed efficiently and effectively, helping realize near-term emission reductions and benefiting public health.
Events
Upcoming Events
Stay tuned for more information about future events!
Past Events
| Date | Topic | Event Type | Title |
|---|---|---|---|
| May 2, 2023 | Financial & Technical Assistance | Listening Session | Listening Session for General Audiences |
| May 3, 2023 | Financial & Technical Assistance | Listening Session | Listening Session for State and Local Governments |
| May 3, 2023 | Financial & Technical Assistance | Listening Session | Listening Session for Non-Governmental Organizations, Community and Environmental Justice Groups |
| May 9, 2023 | Financial & Technical Assistance | Listening Session | Listening Session for Tribal Governments |
| May 9, 2023 | Financial & Technical Assistance | Listening Session | Listening Session for Industry, Small Businesses, and Labor Groups |
Contact the Methane Emissions Reduction Program
Send questions to [email protected].
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