Financial Assistance from the Methane Emissions Reduction Program

• Overview
• Financial Assistance
• Events

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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) are partnering to leverage the agencies’ shared commitment and joint expertise in advancing methane mitigation technologies for the oil and gas sector. DOE’s National Energy Technology Laboratory (NETL) brings additional experience in financial assistance administration and complements EPA’s expertise in quantifying and reducing methane emissions. EPA and DOE will provide up to $1.36 billion in federal funding for activities that will help measure and reduce methane emissions from the oil and gas sectors.

EPA and DOE-NETL are providing financial assistance through the following grants:

• Formula grants ($350 million) to states to support industry efforts to voluntarily reduce emissions at low-producing wells, monitor emissions, and conduct environmental restoration at well pads on non-Federal Lands.
• Competitive grants ($850 million) to reduce, monitor, measure, and quantify methane emissions from the oil and gas sector, including on tribal lands.

Financial and technical assistance 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. In addition, this assistance will also help mitigate health effects in low-income communities, improve climate resiliency, and support environmental restoration. This assistance will also support activities at low-producing (marginal) conventional wells.

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 implementing a Waste Emissions Charge for methane and revised Subpart W of the Greenhouse Gas Reporting Program regulations for the oil and gas sector.

Financial Assistance

Formula Grants for States to Support Methane Mitigation from Marginal Conventional Wells

On December 15, 2023, DOE’s 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 provide financial assistance to states to help oil and gas well owners and/or operators who choose to reduce methane emissions from low-producing conventional wells, also called marginal conventional wells (MCWs), on nonfederal lands through voluntary, permanent well plugging. States will also be able to use the funding to support environmental restoration of well sites and monitor the sites to verify that plugged wells are no longer emitting methane. 

Research has shown that MCWs 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 communities, and deliver long-lasting health and environmental benefits across the country.

For more information about these awards, read the press release and project summaries.

Competitive Grants for Methane Emissions Monitoring and Mitigation

On December 20, 2024, EPA and DOE announced approximately $850 million for 43 projects that will help small oil and gas operators, Tribes, and other entities across the country to reduce, monitor, measure, and quantify methane emissions from the oil and gas sector. 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. These projects will help reduce methane emissions and transition to available, innovative methane emissions reduction technologies, support partnerships that improve emissions measurement, and provide accurate, transparent data to impacted communities.

Thirty-two organizations were selected for projects across three Areas of Interest:

• Area of Interest 1: Methane Emissions Reduction from Existing Wells and Infrastructure
• Area of Interest 2: Accelerating Deployment of Methane Emissions Reduction Solutions
• Area of Interest 3: Accelerating Deployment of Methane Monitoring Solutions

For more information about these awards, read the press release and summary of selected projects.

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 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