Environmental Protection Agency and Department of Energy Announce Intent to Fund Efforts to Reduce Methane Emissions from Oil and Gas Sector

Environmental Protection Agency and Department of Energy

July 24, 2023

WASHINGTON – The U.S. Environmental Protection Agency (EPA), U.S. Department of Energy (DOE), and DOE’s National Energy Technology Laboratory (NETL) released a notice of intent announcing the first in a series of funding opportunities to monitor and reduce methane emissions, one of the biggest drivers of the climate crisis, from the oil and gas sector and for environmental restoration of well sites. Through a newly initiated Interagency Agreement, EPA and DOE will also partner to offer technical assistance to help companies monitor and reduce methane emissions from leaks and daily operations. Through this combination of technical and financial assistance, 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. These funding opportunities are made possible by President Biden’s Inflation Reduction Act.

“The amount of methane emitted from oil and gas operations is enough to fuel millions of homes a year and is a major driver of the climate crisis,” said Joe Goffman, Principal Deputy Assistant Administrator for EPA’s Office of Air and Radiation. “These programs will help minimize that waste, a benefit for nearby communities and businesses alike.”

“Methane’s potency as a greenhouse gas makes targeted emissions reduction efforts essential to slow the rapid rate of climate change,” said Brad Crabtree, Assistant Secretary of Fossil Energy and Carbon Management. “These programs will help states and industry to accelerate methane monitoring and mitigation efforts, which will increase efficiency and reduce costs for oil and gas producers, while providing long lasting climate and health benefits to communities across the nation.”

As described in the notice of intent, EPA and DOE will provide up to $350 million in formula funding to eligible states to assist industry to voluntarily identify and permanently reduce methane emissions from low-producing (marginal) conventional wells. These investments are expected to improve the economic competitiveness of small and medium-sized producers while reducing associated harmful air pollution, mitigating health effects in nearby communities, and creating jobs in energy communities. States also will be able to use a portion of their award for environmental restoration and to invest in their monitoring capacity for low-producing conventional wells, which will improve their ability to identify sources of methane emissions and to effectively prioritize their mitigation. NETL plans to issue the funding opportunity announcement later this summer.

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