Biden’s $850M Tech-Driven Plan to Cut Methane Emissions

TL/DR –

The US government is opening bidding for $850 million in grants aimed at helping small oil and gas producers monitor and reduce methane emissions. The funding is part of President Biden’s crackdown on greenhouse gas leaks, and will be available to industry, academia, NGOs, Native American tribes, and state and local governments. The initiative comes in response to concerns from smaller operators about the financial burden of complying with new methane standards and fees.

U.S. Government Opens Bidding For $850m in Methane Reduction Grants

Commencing an open competitive bidding process on Friday, the U.S. government is offering $850 million in grants to support small oil and gas producers in monitoring and decreasing methane emissions. This initiative is a crucial element of President Biden’s efforts to mitigate harmful methane leaks.

Understanding the Importance

The Inflation Reduction Act, a key Biden administration climate law, is providing the substantial funding to assist smaller oil and gas operators in accessing methane detection and emission reduction technologies. The grant program welcomes applications from industry representatives, academia, NGOs, Native American tribes, and state and local governments.

The Current Scenario

Several independent U.S. oil and gas operators have previously expressed concerns over the new Environmental Protection Agency (EPA) methane standards. These operators, primarily those with low-producing wells, were apprehensive about the financial strain the new standards and the proposed methane fee might impose.

Administrator’s Quote

EPA Administrator Michael Regan stated, “These investments from President Biden’s Investing in America agenda will drive the deployment of advanced technologies to accurately identify methane emission sources. This will enable us to reduce pollution effectively, combat the climate crisis, and create good-paying jobs.”

Methane Emissions Statistics

Around one-third of the nation’s methane emissions are sourced from oil and gas production, making it a primary focus in the fight against climate change. The United States is one of over 100 countries committed to reducing their methane emissions by 30% by 2030 from 2020 levels. Interestingly, a 2022 report revealed that low-yield oil and gas wells, which account for only 6% of total U.S. production, are responsible for half of all U.S. well site methane emissions.

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