Methane Emissions Reduction Program

Federal Agency

Sub-Department

Office of Air and Radiation (OAR)

Purpose

To provide financial and technical assistance to accelerate the reduction of methane and other greenhouse gas emissions from petroleum and natural gas systems. The statute also establishes a waste emissions charge for applicable facilities that report more than 25,000 metric tons of CO2 equivalent per year (to the petroleum and natural gas systems source category of the Greenhouse Gas Reporting Program) and that exceed statutorily specified waste emissions thresholds.

Applicant and/or Project Eligibility Requirements

States, Counties, Cities/Townships, Special Districts, Territories, Tribal Governments (federally recognized), Tribal Governments (other than federally recognized), Public Higher Education Institutions, Private Higher Education Institutions, Nonprofits with 501(c)(3) status, Nonprofits without 501(c)(3) Status, Small Businesses, Businesses (other than small businesses), and Individuals all may qualify

Decarbonization Considerations

May be used for a variety of activities to reduce methane emissions including providing funding for financial and technical assistance for preparing and submitting greenhouse gas reports, monitoring methane emissions, and reducing methane and other greenhouse gas emissions from petroleum and natural gas systems, including improving and deploying equipment to reduce emissions, supporting innovation, permanently shutting in and plugging wells, mitigating health effects in low income and disadvantaged communities, improving climate resiliency, and supporting environmental restoration.

Equity Considerations

See the "Equity Design Considerations for Federal Funding" for general considerations and additional sector-based resources: https://cityrenewables.org/resources/equity-design-considerations-for-federal-funding/

Helpful Tips

Methane leaks across the supply chain increase the emissions of natural gas by releasing a highly potent greenhouse gas. Unintentional releases of methane into the atmosphere come from the malfunctioning of gas field equipment like well pads, valves, and compressor stations. Catastrophic failures, like well blowouts can pump hundreds of tons of methane into the atmosphere for weeks or months. The same goes for gas pipelines. Learn more here to inform your application and project: https://rmi.org/reality-check-natural-gas-true-climate-risk/

Other Notes

The program specifies that at least $700 million must be used for activities at marginal conventional wells.