The U.S. Department of Energy (DOE) and the U.S. Environmental Protection Agency (EPA) have opened applications for a significant $850 million in federal funding.
This funding, part of President Biden’s Investing in America agenda, targets projects that will effectively monitor, measure, quantify, and ultimately reduce methane emissions from the oil and gas sectors.
Methane: A Potent Climate Threat
Oil and natural gas facilities are the leading industrial source of methane in the United States. Methane is a potent greenhouse gas with far greater warming potential than carbon dioxide, making it a major contributor to current climate change.
This funding announcement builds on the Biden Administration’s ongoing efforts to curb methane pollution, with agencies having already taken nearly 100 actions in 2023 alone, including an EPA rule aiming for an 80% reduction in methane emissions from regulated oil and gas facilities.
Funding Objectives and Impact
The funding, sourced from the Inflation Reduction Act—the largest climate investment in history—seeks to mitigate legacy air pollution, create quality jobs in the energy sector and disadvantaged communities, and enhance efficiency in U.S. oil and gas operations.
By focusing on small oil and gas operators, the funding aims to facilitate their transition to innovative and accessible technologies that can reduce methane emissions. It also supports partnerships to improve emissions measurement and provide transparent data to affected communities.
This announcement represents a crucial component of the broader technical and financial assistance offered through the Methane Emissions Reduction Program.
Statements from Key Officials
U.S. Secretary of Energy Jennifer M. Granholm underscored the commitment to reducing harmful emissions from the oil and gas sector as the nation accelerates its clean energy transition. EPA Administrator Michael S. Regan emphasized the importance of these investments in deploying available and advanced technologies to better understand and mitigate methane emissions.
Assistant to President Biden and National Climate Advisor Ali Zaidi highlighted the administration’s comprehensive efforts to decarbonize the economy, create jobs, and cut pollution, with a focus on methane as a key part of this agenda.
Funding Priorities and Applicant Eligibility
The primary objectives of this funding opportunity are to:
- Support small operators in significantly reducing methane emissions using commercially available technologies for monitoring, measurement, quantification, and mitigation.
- Expedite the repair of methane leaks from low-producing wells and encourage the deployment of early-commercial technologies to reduce emissions from various oil and gas equipment.
- Enhance community access to empirical data and participation in monitoring efforts.
- Improve the detection and measurement of methane emissions at a regional scale, ensuring data consistency nationwide, through collaborative partnerships.
A competitive solicitation process will allow a diverse range of U.S. entities to apply for funding, including industry, academia, NGOs, Tribes, and state and local governments.
The funding opportunity aims to achieve measurable outcomes in skilled workforce training, community involvement, and environmental justice. Applicants must submit Community Benefits Plans detailing their commitment to community engagement, job creation, diversity, equity, inclusion, and benefits for disadvantaged communities in line with the Justice40 Initiative.
About the Methane Emissions Reduction Program
The Inflation Reduction Act, through the Methane Emissions Reduction Program, has directed the Environmental Protection Agency (EPA) to address the issue of wasteful methane emissions from the oil and gas industry. In partnership with the Department of Energy (DOE), the EPA is investing $1.36 billion in financial and technical assistance to enhance methane monitoring and reduce greenhouse gas emissions, including the harmful super-pollutant methane. These investments are also expected to reduce non-greenhouse gas emissions like volatile organic compounds and hazardous air pollutants.
Building on Previous Efforts
This latest funding announcement follows a previous allocation of $350 million in formula grant funding to states in December 2023. This funding supports industry efforts to voluntarily reduce emissions from low-producing wells, monitor emissions, and restore well pad environments. The Methane Emissions Reduction Program aims to build upon these initial efforts and further accelerate methane reduction initiatives across the oil and gas sector.
Key Initiatives Under the U.S. Methane Action Plan
The funding opportunity announced on June 21st is part of the Biden-Harris Administration’s comprehensive, government-wide strategy to mitigate harmful methane emissions across various economic sectors, as outlined in the U.S. Methane Emissions Reduction Action Plan. This multifaceted approach includes:
- Stronger Standards for Oil and Gas: Implementing final standards to significantly reduce methane and other harmful air pollutants from the oil and gas industry, including existing sources nationwide.
- Enhanced Emissions Reporting: Expanding and updating methane emissions reporting requirements for petroleum and natural gas systems under the EPA’s Greenhouse Gas Reporting Program to improve transparency and accountability.
- Waste Emissions Charge Rule: Finalizing a rule that incentivizes companies to adopt best practices to reduce wasteful emissions and capture near-term opportunities for methane reductions.
- Pipeline Leak Detection and Repair: Proposing a new rule by the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration to improve leak detection and repair for natural gas pipelines.
- Orphaned Well Plugging: Deploying over $5 billion from the Bipartisan Infrastructure Law to plug orphaned oil and gas wells, addressing safety and environmental concerns.
- Reducing Food Loss and Waste: Launching a draft National Strategy to Reduce Food Loss and Waste and Recycling Organics, tackling a major source of methane emissions.
- Abandoned Coal Mine Reclamation: Allocating over $11 billion from the Bipartisan Infrastructure Law for reclaiming abandoned coal mines, eliminating significant sources of water and methane pollution.
- Advanced Greenhouse Gas Measurement: Implementing the first-ever National Strategy to Advance an Integrated U.S. Greenhouse Gas Measurement, Monitoring, and Information System to enhance coordination and integration of methane data collection and measurement efforts.
Together, these comprehensive initiatives aim to accelerate methane emissions reductions, decrease costs, support clean air and public health, create quality jobs, and advance President Biden’s ambitious climate goals.