The US Environmental Protection Agency (EPA), US Department of Energy (DOE), and DOE's National Energy Technology Laboratory announced on Wednesday that up to $350 million in formula grant funding will be available to help reduce methane emissions from the oil and gas sector, and for environmental restoration of well sites.
Provided by The Inflation Reduction Act (IRA), a landmark US federal law aims to invest in domestic energy production, the funding will help oil and gas well owners, as well as operators of applicable facilities to 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 US oil and gas operations, create new jobs in energy communities, and realize near-term emission reductions by helping reach the nation's ambitious climate and clean air goals.
'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,' Michael S. Regan, EPA administrator said in the statement.
Supported by President Biden's 'Investing in America' agenda which mobilize historic levels of private sector investments in the US, this action is the first in a series of funding opportunities through IRA that will target monitoring and reduction of methane emissions from the oil and gas sector.
'DOE's partnership with EPA will bolster our national efforts to monitor and mitigate methane emissions from the oil and gas sector while helping revitalize energy communities and delivering long-lasting health and environmental benefits across the country,' Jennifer M. Granholm, US secretary of energy was quoted as saying in the statement.
The deadline for states to apply for this funding opportunity is September 30th, 2023.
By Duygu Alhan