Agency: Environmental Protection Agency – Office of Air
Description:
For grants, rebates, contracts, loans, and other activities to reduce methane emissions from at marginal conventional wells, including deploying new technology, plugging wells, and improving community climate resiliency. Marginal wells are defined as onshore conventional wells producing less than or equal to 15 barrels of oil equivalent per day or less than or equal to 90 thousand cubic feet gas per day over a calendar year. Funding may also be used for methane emissions monitoring and assisting petroleum and natural gas facilities in submitting greenhouse gas reports required by the EPA.
Bill Section:
60113(b)
US Code:
42 USC 7436
New or Existing:
New
Potential Cost:
$700,000,000
Timeline:
FY22-28
Implementation Status/Rulemaking:
In August 2023, EPA announced the availability of up to $350 million in formula grants for activities at marginal conventional wells. Formula funding is available to 30 states and is based on the number of known marginal conventional wells on non-federal land: Source
On December 15, 2023, EPA announced a conditional commitment to 14 states to receive a total of $350 million in formula grant funding: Source
For more information on the Methane Emissions Reduction Program: Source
TCS Notes:
There is an additional $850 million in supplemental appropriations included in section 60113(a) to reduce methane emissions from petroleum and natural gas systems.
In additional to supplemental appropriations, MERP imposes a fee for lost gas from oil and gas operations starting in 2024. CBO estimates this fee will raise $6.35 billion in revenue from FY22-31.