The U.S. Department of Energy (DOE) and the U.S. Environmental Protection Agency (EPA) have announced that applications are now open for $850 million in federal funding aimed at reducing methane emissions from the oil and gas sectors. This initiative is part of President Biden’s Investing in America agenda, which seeks to address climate change, create jobs, and improve air quality.
Methane, a potent greenhouse gas, is primarily emitted by oil and natural gas facilities—the largest industrial source of this pollutant in the United States. The funding announcement builds on extensive efforts by the Biden Administration to cut methane pollution significantly. In 2023 alone, nearly 100 actions were taken across various agencies, including an EPA rule projected to reduce methane emissions from covered oil and gas facilities by 80%.
The funding stems from the Inflation Reduction Act, described as the largest climate investment in history. It aims to mitigate legacy air pollution, generate employment opportunities in disadvantaged communities, reduce waste in oil and gas operations, and achieve near-term emissions reductions. Small operators will benefit particularly from this initiative through support for transitioning to innovative methane reduction technologies.
U.S. Secretary of Energy Jennifer M. Granholm stated: “As we continue to accelerate the nation’s clean energy transition, we are taking steps now to drastically reduce harmful emissions from America’s largest source of industrial methane – the oil and gas sector.” EPA Administrator Michael S. Regan added: “These investments from President Biden’s Investing in America agenda will drive the deployment of available and advanced technologies to better understand where methane emissions are coming from.”
Assistant to President Biden and National Climate Advisor Ali Zaidi emphasized that President Biden's leadership on tackling methane is part of a comprehensive climate effort aimed at spurring technological innovation while creating jobs and cutting pollution.
The primary objectives of this funding opportunity include helping small operators reduce methane emissions using commercially available technology solutions; accelerating repairs of leaks; improving community access to data; enhancing detection capabilities; and establishing collaborative partnerships across various stakeholders including industry players, academic institutions, environmental organizations, Tribes, state regulatory agencies, federally funded research centers, and DOE’s National Laboratories.
Eligible entities such as industry groups, academia, non-governmental organizations, Tribes, state and local governments can apply for this competitive solicitation until August 26, 2024. Applicants must submit Community Benefits Plans detailing their commitments towards community engagement and benefits under the Justice40 Initiative.
The Methane Emissions Reduction Program has been bolstered by $1.36 billion allocated through the Inflation Reduction Act for financial and technical assistance aimed at improving monitoring practices and reducing greenhouse gas emissions within the oil and gas sector.
This announcement follows a previous allocation of $350 million in December 2023 aimed at supporting voluntary emission reduction efforts at low-producing wells among other initiatives.
For more information about eligibility criteria or application procedures for this funding opportunity visit grants.gov or contact support@grants.gov for technical assistance.
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