Biden-Harris Administration Announces Availability of $350 Million in Grants to States to Cut Methane Emissions from Oil and Gas Sector

WASHINGTON (Aug. 30, 2023) – In support of President Biden’s Investing in America agenda, the U.S. Environmental Protection Agency (EPA), U.S. Department of Energy (DOE), and DOE’s National Energy Technology Laboratory (NETL) announced today the availability of up to $350 million in formula grant funding to help monitor and reduce methane emissions, one of the biggest drivers of climate change, from the oil and gas sector and for environmental restoration of well sites. The funding, provided by the Inflation Reduction Act, will also help oil and gas well owners, as well as operators of applicable facilities, voluntarily and permanently reduce methane emissions from leaks and daily operations of low-producing conventional wells on non-federal lands. Through the Methane Emissions Reduction Program, EPA and DOE will help reduce inefficiencies of U.S. oil and gas operations, create new jobs in energy communities, and realize near-term emission reductions – helping reach the nation’s ambitious climate and clean air goals.

“Thanks to President Biden’s Investing in America agenda, we now have unprecedented funding to cut methane pollution that is fueling the climate crisis,�?? said EPA Administrator Michael S. Regan. “This investment will increase competition and help small and medium-sized producers compete on a more level playing field, create new good-paying jobs in energy communities, and support environmental restoration, making clear that strengthening our economy, tackling climate change, and protecting our communities go hand in hand.�??

“Methane is a much more potent greenhouse gas than carbon dioxide, so it’s crucial that we work closely with states and industry to develop solutions that will cut emissions at their source,�?? said U.S. Secretary of Energy Jennifer M. Granholm. “Thanks to President Biden’s Investing in America agenda, DOE’s partnership with EPA will bolster our national efforts to monitor and mitigate methane emissions from the oil and gas sector – our largest source of industrial methane – while helping revitalize energy communities and delivering long-lasting health and environmental benefits across the country.�??

This action is the first in a series of funding opportunities through the Inflation Reduction Act that will target monitoring and reduction of methane emissions from the oil and gas sector. EPA and DOE plan to announce competitive funding opportunities following this non-competitive solicitation and have partnered to offer technical assistance to help industry monitor and reduce methane emissions from leaks and daily operations. This combination of technical and financial assistance is expected to help improve efficiency of U.S. oil and gas operations and provide new economic opportunities in energy communities, as well as realize near-term emission reductions.

EPA and DOE are collaborating alongside other members of the new White House Methane Task Force, which is advancing a whole-of-government approach to proactive methane leak detection and data transparency and supporting state and local efforts to mitigate and enforce methane emissions regulations. Today’s actions by EPA and DOE accelerate execution of the U.S. Methane Emissions Reduction Action Plan, building on over 80 Administration actions taken in less than a year since the Plan launched in November 2022.

The deadline for states to apply for this funding opportunity is September 30, 2023 at 5PM ET. For any questions on the application, applicants should submit written questions through the FedConnect portal at FedConnect.net. For any technical issues with grants.gov, please contact grants.gov for assistance at 1-800-518-4726 or support@grants.gov. More information, including applicant eligibility, can be found at grants.gov.

About the Methane Emissions Reduction Program

The Methane Emissions Reduction Program, created by the Inflation Reduction Act, provides $1.55 billion in funding, including financial and technical assistance to improve methane monitoring and reduce methane and other greenhouse gas (GHG) emissions from the oil and gas sector with the co-benefit of reducing non-GHG emissions such as volatile organic compounds and hazardous air pollutants. The program allows financial and technical assistance for a number of activities, including: preparing and submitting greenhouse gas reports, monitoring methane emissions, and reducing methane and other greenhouse gas emissions by improving and deploying equipment, supporting innovation, permanently reducing methane emissions from low-producing conventional wells, mitigating health effects in low-income and disadvantaged communities, improving climate resiliency, supporting environmental restoration, and mitigating legacy air pollution.