Inflation Reduction Act Tracker

Sabin Center for Climate Change Law
Environmental Defense Fund

IRA Section 60113 – Methane Emissions Reduction Program

Section 60113 of the IRA amends the Clean Air Act to add a new section 136 on “methane emissions and waste reduction incentive program for petroleum and natural gas systems.”

Section 136 appropriates $1.55 billion to the EPA Administrator to provide financial and technical assistance for methane monitoring and mitigation. Specifically, the appropriated funds may be used to provide financial and technical assistance:

1) to owners and operators of petroleum and natural gas facilities to report on their greenhouse gas emissions;
2) for methane emissions monitoring activities authorized by section 103 of the Clean Air Act, which establishes the EPA’s air pollution prevention and control research program; and
3) to reduce greenhouse gas emissions and mitigate legacy air pollution from petroleum and natural gas systems, improve the climate resiliency of those systems, mitigate the systems’ public health effects, promote innovation, and support environmental restoration related to petroleum and natural gas systems.

Of the $1.55 billion appropriated by section 136, $700 million is set aside for activities at marginal conventional wells. The appropriated funds will remain available until September 30, 2028.

Section 136 also sets methane emissions thresholds for petroleum and natural gas production, processing, transmission, and storage facilities. Under section 136, beginning in 2024, the EPA Administrator must impose and collect a charge on methane emissions that exceed the specified thresholds (subject to certain exemptions). The methane emissions charge starts at $900 per metric ton of methane emitted (above the set threshold) in 2024 and rises to $1,200 in 2026. Facilities will not be required to pay the charge if they are in compliance with regulations adopted pursuant to section 111(b) and (d) of the Clean Air Act and the EPA Administrator determines that compliance with those regulations will result in equivalent or greater emissions reductions as would have been achieved if emissions controls proposed by EPA in November 2021 had been finalized and implemented.

Eligible Entities:

Property Owner, State/Territorial Government

Current Status:

Guidance / regulations withdrawn, Repealed or Modified by Congress, Funds Rescinded by Congress

Congress passed, and President Trump signed, H.J.Res.35, a joint resolution of disapproval under the Congressional Review Act, which voids EPA’s final rule on methane waste emissions.

Section 60012 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) rescinded unobligated funds from Clean Air Act section 136(a)-(b) and amended Clean Air Act 136(g).

Implementation Status at End of Biden Administration:

Complete

Section 60113 appropriates $1.55 billion to EPA to provide financial and technical assistance for methane monitoring and mitigation, with $700 million set aside for activities at marginal conventional wells. The appropriated funds will remain available until September 30, 2028.

EPA and DOE have awarded $1.2 billion. EPA has retained $300 million for administration of the funding programs and the methane fee. In January 2024, EPA announced $350 million in formula grant funding to help 14 states measure and reduce methane emissions from the oil and gas sector. This funding will help states support industry efforts to cut methane emissions from wells on nonfederal lands and support environmental restoration of well sites. In June 2024, DOE and EPA announced the opening of applications for $850 million in funding for projects to monitor, measure, and reduce methane emissions from the oil and gas sector. Applications closed August 2024.

As part of the Methane Emissions Reduction Program, created by IRA section 60113, EPA finalized a rule in November 2024 to reduce methane emissions from the oil and gas sector by assessing a charge on certain large emitters exceeding emissions intensity levels set by Congress.