$850 million now available for efforts to reduce methane emissions; Applications due August 26 | Knowledge

The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE) released an $850 million Funding Opportunity Announcement (FOA) on June 21, 2024 to reduce carbon dioxide emissions. methane from oil and natural gas production and associated facilities. This funding was made available under the Inflation Reduction Act and applications must be submitted by 5 p.m. ET on August 26, 2024.

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There are three Areas of Interest (AOI) under the FOA:

Area of ​​interest 1

The three subsections of this AOI focus on 1) existing marginal conventional wells (MCW), 2) small operators (defined as an entity generating revenues less than $40 million per year), and 3) MCW/ small operators on tribal lands.

For each of these subsections, EPA and DOE seek to fund a single lead organization to develop and execute a program that facilitates the purchase and distribution of commercially available methane emissions mitigation technologies and “ready to use”. These technologies are intended to support effective emissions reduction from MCWs, small operators, and MCWs/small operators on tribal lands.

Each lead organization will be required to develop a work plan detailing sources of emissions at well sites and associated infrastructure, as well as strategies to address and reduce methane emissions, among other requirements listed in the FOA.

Area of ​​interest 2

This AOI also includes three subsections, this time focused on the deployment of new methane emissions reduction solutions: 1) field deployment of methane reduction technologies from engines and compressors, 2) field deployment of gas flaring reduction technologies and 3) field deployment of emissions. abatement technologies in oil and gas production facilities.

For each of these subsections, EPA and DOE are seeking solutions starting at Technology Readiness Level (TRL) 6 or 7 and reaching a TRL 8 at the end of the project. TRLs are defined in Appendix D of the FOA.

Additionally, project teams under this ICB must include a company that intends to commercialize the technology, industry partners, and well or facility locations for field testing, among other project requirements. the FOA.

Area of ​​interest 3

This AOI focuses on methane monitoring solutions and has two subsections: 1) improving access to monitoring data for affected communities and 2) characterizing regional methane emissions.

The goal of AOI 3 is to accelerate the deployment of methane measurement and monitoring technologies.

Project teams under AOI 3 must include, but are not limited to, technology solution providers, oil and gas operators and disadvantaged communities. Applicants must include a work plan with an explanation of the emissions sources they plan to monitor and their respective impact, among other FOA requirements.

EPA and DOE have provided the following table for each of the AOIs and subsections, with the anticipated number of awards and anticipated funding amounts.

AOI number	Title of area of ​​interest	Expected number of awards	Minimum amount of reward provided for any individual reward (federal share)	Expected maximum award size for any individual award (federal share)	Total anticipated federal funding available for all awards	Maximum expected period of performance (end date no later than 09/30/2028)
1a	Reducing methane emissions from marginal conventional wells	1	$299 million	300 million dollars	300 million dollars	~44 months
1b	Reducing methane emissions from small operator wells and other oil and gas assets	1	$209 million	$210 million	$210 million	~44 months
1 C	Reduce methane emissions from marginal conventional wells and oil and gas assets on tribal lands	1	$49 million	$50 million	$50 million	~44 months
2a	Field deployment of engine and compressor methane reduction technologies	Up to 10	$11.5 million	6 million dollars	60 million dollars	~44 months
2b	Field deployment of gas flaring reduction technologies	Up to 10	$1.5 million	6 million dollars	$60 million	~44 months
2c	Field deployment of emissions reduction technologies at oil and gas production facilities	Up to 6	1 million dollars	5 million dollars	$30 million	~44 months
3a	Improving access to surveillance data for affected communities	Up to 4	8 million dollars	10 million dollars	40 million dollars	~44 months
3b	Regional characterization of methane emissions	Up to 5	$18 million	20 million dollars	100 million dollars	~44 months

Further information

For more information or questions, contact the authors or another member of Holland & Knight's Energy and Natural Resources Group.

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