Agency: Environmental Protection Agency – Office of Air
Description:
For grants, rebates, contracts, loans, and other activities to reduce methane emissions from petroleum and natural gas systems, including deploying new technology, plugging wells, and improving community climate resiliency. 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(a)
US Code:
42 USC 7436
New or Existing:
New
Potential Cost:
$850,000,000
Timeline:
FY22-28
Implementation Status/Rulemaking:
On February 9, 2024, DOE published a Notice of Intent to make available up to $1 billion through financial assistance awards : Source
For more information on the Methane Emissions Reduction Program: Source
TCS Notes:
There is an additional $700 million in supplemental appropriations included in section 60113(b) for the above activities at marginal conventional wells, 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.
In additional to 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.