The U.S. Department of Energy (DOE) and the Environmental Protection Agency (EPA) have announced an $850 million funding opportunity to reduce methane emissions in the oil and gas sectors. This funding, a cornerstone of President Biden’s Investing in America agenda, seeks to curb methane pollution, support economic growth, and promote public health.
Methane, a climate “super pollutant,” is over 25 times more effective at trapping atmospheric heat than carbon dioxide. Oil and gas facilities are the largest industrial sources of methane emissions in the U.S., contributing significantly to global warming. According to the EPA's annual Inventory of U.S. Greenhouse Gas Emissions and Sinks, methane emissions from the oil and gas industry totaled approximately 239 million metric tons of CO2 equivalent (MMTCO2e) in 2021.
On a global scale, the International Energy Agency (IEA) estimates that the energy sector was responsible for nearly 135 million tonnes of methane emissions in 2022, with coal, oil, and natural gas operations each contributing around 40 Mt of emissions and an additional 5 Mt from leaks in end-use equipment.
The new funding initiative is designed to assist small oil and gas industry operators, facilitating their transition to advanced methane reduction technologies. It also aims to:
The funding will support a competitive application process, encouraging participation from diverse entities, including non-governmental organizations, state and local governments, and Tribal nations. Applicants must submit Community Benefits Plans detailing their commitments to community engagement, job creation, and benefits to disadvantaged communities, which aligns with the Justice40 Initiative.
U.S. Secretary of Energy Jennifer M. Granholm highlighted the partnership with the EPA as a critical step in reducing emissions from the oil and gas sector, delivering health and environmental benefits nationwide. EPA Administrator Michael S. Regan emphasized deploying advanced technologies to pinpoint and reduce methane emissions more effectively, thus protecting communities and creating jobs.
National Climate Advisor Ali Zaidi praised the comprehensive approach of the U.S. Methane Emissions Reduction Action Plan, which includes the Methane Task Force and the White House methane summit. These initiatives are part of a larger strategy to cut pollution, spur technological innovation, and create economic opportunities while holding polluters accountable.
This funding opportunity is part of a broader, whole-of-government strategy to tackle methane emissions, as outlined in the U.S. Methane Emissions Reduction Action Plan. Recent initiatives include newly established EPA standards to reduce methane emissions from the oil and gas industry, updated reporting requirements to enhance transparency and accountability, and proposed regulations to improve leak detection and repair in natural gas pipelines. Significant investments are also being made to plug abandoned oil and gas wells, mitigating environmental hazards. Additionally, the Bipartisan Infrastructure Law has allocated over $11 billion to reclaim abandoned coal mines, addressing major sources of methane pollution.
