Coming Soon: DOE Methane Emissions Reductions Program
Methane Emissions Reductions Program
The Inflation Reduction Act provides new authorities under Section 136 of the Clean Air Act to reduce methane emissions from the petroleum and natural gas sector through the creation of the Methane Emissions Reduction Program. The Methane Emissions Reduction Program includes the following components:
Financial and Technical Assistance— More than $1 billion to reduce methane emissions from the petroleum and natural gas sector by providing 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. The program specifies that at least $700 million must be used for activities at marginal conventional wells.
Waste Emissions Charge—establishes a waste emissions charge for methane from applicable facilities that report more than 25,000 metric tons of CO2 equivalent per year to the Greenhouse Gas Reporting Program (GHGRP) petroleum and natural gas systems source category and that exceed statutorily specified waste emissions thresholds. Waste emissions charge starts at $900 per metric ton for emissions reported in 2024, increasing to $1,200 for 2025 emissions, and $1,500 for emissions years 2026-on. Includes flexibilities and exemptions. Requires revisions to GHGRP regulations for petroleum and natural gas systems (Subpart W) within two years.
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