DE-FOA-0003256.pdf

FINANCIAL ASSISTANCE

FUNDING OPPORTUNITY ANNOUNCEMENT

Department of Energy (DOE) National Energy Technology Laboratory (NETL)

Office of Fossil Energy and Carbon Management (FECM) Environmental Protection Agency (EPA)

Inflation Reduction Act (IRA) – Methane Emissions Reduction Program Oil and Gas Methane Monitoring and Mitigation

Funding Opportunity Announcement (FOA) Number: DE-FOA-0003256

FOA Type: Initial Assistance Listing Number: 81.089 (Fossil Energy Research and Development)

FOA Issue Date: 06/21/2024 Submission Deadline for Full Applications: 08/26/2024 5:00pm ET Expected Date for DOE Selection Notifications: December 2024 Expected Timeframe for Award Negotiations: December 2024 ii

Registration Requirements

• To apply to this FOA, applicants must register with and submit application materials through

Grants.gov at: https://www.grants.gov/.

• Applicants must designate primary and backup points-of-contact with whom DOE will communicate to conduct award negotiations. If an application is selected for award negotiations, it is not a commitment to issue an award. It is imperative that the applicant/selectee be responsive during award negotiations and meet negotiation deadlines. Failure to do so may result in cancelation of further award negotiations and rescission of the selection.

There are several one-time actions that must be completed before submitting an application in response to this Funding Opportunity Announcement (FOA) (e.g., register with the System for Award Management (SAM), obtain a Unique Entity Identifier (UEI) number, register with Grants.gov, and register with FedConnect.net to submit questions). It is vital that applicants address these items as soon as possible. Some may take several weeks, and failure to complete them could interfere with an applicant’s ability to apply to this FOA.

Unique Entity Identifier (UEI) and System for Award Management (SAM)

SAM – Each applicant is required to: (1) register in the SAM at https://www.sam.gov/ before submitting an application; (2) provide a valid UEI number in the application; and

(3) maintain an active SAM registration with current information at all times during which it has an active Federal award or an application or plan under consideration by a Federal awarding agency (unless the applicant is exempt from those requirements under 2 CFR 25.110). DOE may make a Federal award to an applicant until the applicant has complied with all applicable UEI and SAM requirements. If an applicant has not fully complied with the requirements by the time DOE is ready to make a Federal award, DOE will determine that the applicant is not qualified to receive a Federal award and use that determination as a basis for making a Federal award to another applicant.

NOTE: If clicking the SAM links do not work, please copy and paste the link into your browser.

Due to the high demand of SAM registrations and UEI requests, entity legal business name and address validations are taking longer than expected to process. Entities should start the SAM and UEI registration process as soon as possible. If entities have technical difficulties with the SAM registration or UEI validation process they should utilize the HELP feature on SAM.gov. SAM.gov will work entity service tickets in the order in which they are received and asks that entities not create multiple service tickets for the same request or technical issue. Additional entity validation resources can be found here: GSAFSD Tier 0 Knowledge Base - Validating your Entity.

https://www.grants.gov/ https://www.sam.gov/ https://www.fsd.gov/gsafsd_sp?id=kb_article_view&sysparm_article=KB0058422&sys_kb_id=1b5f22581b2115102fe5ed7ae54bcb4e&spa=1 iii

UEI - Each applicant is required to: (1) register in the SAM at https://www.sam.gov before submitting an application; (2) provide a valid UEI in the application; and (3) maintain an active SAM registration with current information at all times during which it has an active federal award or an application or plan under consideration by a federal awarding agency (unless the applicant is excepted from those requirements under 2 CFR 25.110). DOE may not make a federal award to an applicant until the applicant has complied with all applicable UEI and SAM requirements. If an applicant has not fully complied with the requirements by the time DOE is ready to make a federal award, DOE will determine that the applicant is not qualified to receive a federal award and use that determination as a basis for making a federal award to another applicant.

NOTE: Due to the high number of UEI requests and SAM registrations, entity legal business name and address validations are taking longer than expected to process.

Entities should start the UEI and SAM registration process as soon as possible. If entities have technical difficulties with the UEI validation or SAM registration process, they should use the HELP feature on SAM.gov. SAM.gov will address service tickets in the order in which they are received and asks that entities not create multiple service tickets for the same request or technical issue. Additional entity validation resources can be found here: GSAFSD Tier 0 Knowledge Base - Validating your Entity.

NOTE: Subawardees/subrecipients at all tiers must also obtain an UEI from the SAM and provide the UEI to the Prime Recipient before the subaward can be issued. Full registration in SAM is not required to obtain an UEI for subaward reporting.

Grants.gov – Applicants must register with Grants.gov at https:www.grants.gov/register to set up your WorkSpace. An applicant cannot submit an application through Grants.gov unless an applicant is registered. Please read the registration requirements carefully and start the process immediately.

1) The Authorized Organizational Representative (AOR) must register at:

https://www.grants.gov/register.

2) An email is sent to the E-Business (E-Biz) POC listed in SAM.

More information about the registration steps for Grants.gov is provided at:

https://apply07.grants.gov/help/html/help/index.htm?callingApp=custom#callingAp p=custom&t=Register%2FRegister.html.

In addition:

o Add a Profile to a Grants.gov Account: A profile in Grants.gov corresponds to a single applicant organization the user represents (i.e., an applicant) or an individual applicant. If you work for or consult with multiple organizations and have a profile for each, you may log in to one Grants.gov account to access all of https://www.sam.gov/ https://sam.gov/content/help https://sam.gov/content/home https://www.fsd.gov/gsafsd_sp?id=kb_article_view&sysparm_article=KB0058422&sys_kb_id=1b5f22581b2115102fe5ed7ae54bcb4e&spa=1 https://www.grants.gov/register https://apply07.grants.gov/help/html/help/index.htm?callingApp=custom#callingApp=custom&t=Register%2FRegister.html https://apply07.grants.gov/help/html/help/index.htm?callingApp=custom#callingApp=custom&t=Register%2FRegister.html iv your grant applications. To add an organizational profile to your Grants.gov account, enter the UEI for the organization in the UEI field while adding a profile.

For more detailed instructions about creating a profile on Grants.gov, refer to:

https://apply07.grants.gov/help/html/help/index.htm?callingApp=custom#callin gApp=custom&t=Register%2FAddProfile.htm&rhsearch=Add%20a%20profile.

o EBiz POC Authorized Profile Roles: After you register with Grants.gov and create an Organization Applicant Profile, the organization applicant's request for Grants.gov roles and access is sent to the EBiz POC. The EBiz POC will then log in to Grants.gov and authorize the appropriate roles, which may include the AOR role, thereby giving you permission to complete and submit applications on behalf of the organization. You will be able to submit your application online any time after you have been assigned the AOR role.

NOTE: When applications are submitted through Grants.gov, the name of the organization applicant with the AOR role that submitted the application is inserted into the signature line of the application, serving as the electronic signature. The EBiz POC must authorize people who are able to make legally binding commitments on behalf of the organization as a user with the AOR role;

this step is often missed and it is crucial for valid and timely submissions.

Questions relating to the registration process, system requirements, or how an application form works must be directed to Grants.gov at 1-800-518-4726 or support@grants.gov.

FedConnect.net – Applicants must register with FedConnect to submit questions.

FedConnect website: https://www.fedconnect.net/

See Section IV. for Application and Submission Information (including how to create a WorkSpace).

https://apply07.grants.gov/help/html/help/index.htm?callingApp=custom#callingApp=custom&t=Register%2FAddProfile.htm&rhsearch=Add%20a%20profile https://apply07.grants.gov/help/html/help/index.htm?callingApp=custom#callingApp=custom&t=Register%2FAddProfile.htm&rhsearch=Add%20a%20profile mailto:support@grants.gov https://www.fedconnect.net/ v

SUMMARY OVERVIEW OF KEY INFORMATION

Issuing Agency Department of Energy - National Energy Technology Laboratory (Office of Fossil Energy and Carbon Management [FECM]) on behalf of Environmental Protection Agency (EPA)

Program Overview This FOA aligns with DOE’s Office of Resource Sustainability’s Methane Emissions Mitigation and Quantification Program to minimize emissions of methane during production, processing, and transportation across the oil and natural gas industry, with the goal of eliminating methane emissions from carbon-based fuel supply chains by 2030. Effective methane emissions mitigation strategies are dependent upon accurate quantification of both intentional and fugitive emissions from all elements across the natural gas infrastructure, including low producing oil and gas wells. Therefore, there is a continual need to maintain a state-of-the-industry understanding methane emissions mitigation opportunities and operation performance, through collection of empirical data, across oil and natural gas production and delivery regions of the United States. This is to maximize the value of these efforts to the public with the goals of reducing GHG emissions and improving environmental health and engagement of the affected public, (largely in disadvantaged or frontline communities).

Objective The FOA objective is to make funds available to a variety of entities for the purpose of mitigating methane emissions from marginal conventional wells (MCWs) and other oil and natural gas assets; accelerating the commercialization, scale-up and application of innovative methane emissions reduction technologies; and advancing the characterization and reduction of methane emissions through multi-scale, measurement-informed data collection and analysis.

Areas of Interest

(AOI)

• Area of Interest 1 – Methane Emissions Reduction from Existing Wells and Infrastructure (with three (3) Sub AOIs):

o Reducing Methane Emissions from Marginal Conventional Wells;

o Reducing Methane Emissions from Small Operators’ Wells and

Other Oil and Natural Gas Assets;

o Reducing Methane Emissions from Marginal Conventional Wells and Oil and Gas Assets on Tribal Lands

• Area of Interest 2 – Accelerating Deployment of Methane Emissions Reduction Solutions (with three (3) Sub AOIs):

o Field Deployment of Engine and Compressor Methane Reduction Technologies;

o Field Deployment of Gas Flaring Reduction Technologies;

o Field Deployment of Emissions Reduction Technologies at Oil and

Gas Production Facilities vi

• Area of Interest 3 – Accelerating Deployment of Methane Emissions Monitoring Solutions (with two (2) Sub AOIs);

o Improving Access to Monitoring Data for Impacted Communities;

o Regional Methane Emissions Characterization

Eligible Applicants See Section III.A. of the FOA.

Funding It is anticipated this FOA will provide approximately $850,000,000 in federal funding available for new awards, subject to the availability of appropriated funds.

• AOI 1a: approximately $300,000,000 in Federal funding; no cost share requirement;

• AOI 1b: approximately $210,000,000 in Federal funding; no cost share requirement;

• AOI 1c: approximately $50,000,000 in Federal funding; no cost share requirement;

• AOI 2a: approximately $60,000,000 in Federal funding; 20% cost share requirement;

• AOI 2b: approximately $60,000,000 in Federal funding; 20% cost share requirement;

• AOI 2c: approximately $30,000,000 in Federal funding; 20% cost share requirement;

• AOI 3a: approximately $40,000,000 in Federal funding; no cost share requirement;

• AOI 3b: approximately $100,000,000 in Federal funding; no cost share requirement

Deadlines Full Application Due Date: August 26, 2024 5:00pm ET vii

Table of Contents

Registration Requirements .................................................................................................................................... ii

SUMMARY OVERVIEW OF KEY INFORMATION ....................................................................................................... v

Table of Contents................................................................................................................................................. vii

I. Funding Opportunity Description

A. Background and Context

i. Program Purpose

ii. Technology Space and Strategic Goals

iii. Objectives

B. Areas of Interest

i. Area of Interest 1: Methane Emissions Reduction from Existing Wells and Infrastructure

a. Area of Interest 1a: Reducing Methane Emissions from Marginal Conventional Wells

i. Objectives and Background (AOI 1a)

ii. Technical Elements Required in Applications to AOI 1a

iii. Activities Not of Interest to AOI 1a

b. Area of Interest 1b: Reducing Methane Emissions from Small Operators’ Wells and Other Oil and

Natural Gas Assets

i. Objectives and Background (AOI 1b)

ii. Technical Elements Required in Applications to AOI 1b

iii. Activities Not of Interest to AOI 1b

c. Area of Interest 1c: Reducing Methane Emissions from Marginal Conventional Wells and Oil and Gas

Assets on Tribal Lands

i. Objectives and Background (AOI 1c)

ii. Technical Elements Required in Applications to AOI 1c

iii. Activities Not of Interest to AOI 1c

ii. Area of Interest 2: Accelerating Deployment of Methane Emissions Reduction Solutions

a. Area of Interest 2a: Field Deployment of Engine and Compressor Methane Reduction Technologies ... 26

i. Objectives and Background (AOI 2a)

ii. Technical Elements Required in Applications to AOI 2a

iii. Activities Not of Interest to AOI 2a

b. Area of Interest 2b: Field Deployment of Gas Flaring Reduction Technologies

i. Objectives and Background (AOI 2b)

ii. Technical Elements Required in Applications to AOI 2b

iii. Activities Not of Interest to AOI 2b

c. Area of Interest 2c: Field Deployment of Emissions Reduction Technologies at Oil and Gas Production

Facilities

i. Objectives and Background (AOI 2c)

ii. Technical Elements Required in Applications to AOI 2c

iii. Activities Not of Interest to AOI 2c

iii. Area of Interest 3: Accelerating Deployment of Methane Monitoring Solutions

a. Area of Interest 3a: Improving Access to Monitoring Data for Impacted Communities

i. Objectives and Background (AOI 3a)

ii. Technical Elements Required in Applications to AOI 3a

iii. Activities Not of Interest to AOI 3a

b. Area of Interest 3b: Regional Methane Emissions Characterization

i. Objectives and Background (AOI 3b)

ii. Technical Elements Required in Applications to AOI 3b

iii. Activities Not of Interest to AOI 3b viii

C. Applications Specifically Not of Interest D. Community Benefits Plan: Job Quality and Equity E. Authorizing Statutes F. Notice of Inflation Reduction Act (IRA) Specific Requirements

II. Award Information

A. Award Overview

i. Estimated Funding

ii. Period of Performance

iii. New Applications Only

B. DOE Funding Agreements

i. Cooperative Agreements

ii. Funding Agreements with Federally Funded Research and Development Center (FFRDCs)

III. Eligibility Information

A. Eligible Applicants

i. Domestic Entities

ii. Foreign Entities

B. Cost Sharing

iii. Legal Responsibility

iv. Cost Share Allocation

v. Cost Share Types and Allowability

vi. Cost Share Contributions by FFRDCs

vii. Cost Share Verification

viii. Cost Share Payment

C. Compliance Criteria D. Responsiveness Criteria E. Other Eligibility Requirements

i. Requirements for DOE/NNSA and non-DOE/NNSA FFRDCs Included as a Subrecipient F. Limitation on Number of Full Applications Eligible for Review G. Questions Regarding Eligibility

IV. Application and Submission Information

A. Application Process B. Application Forms C. Content and Form of the Full Application

i. Full Application Content Requirements

ii. SF-424: Application for Federal Assistance

iii. Project/Performance Site Location(s)

iv. Technical Volume

v. Resumes

vi. Letters of Commitment

vii. Community Partnership Documentation

viii. Project Management Plan

ix. Environmental Plan

x. Statement of Project Objectives (SOPO)

xi. Budget Justification Workbook

xii. Summary for Public Release

xiii. Summary Slide

xiv. Subrecipient Budget Justification (if applicable)

xv. Authorization for non-DOE/NNSA or DOE/NNSA FFRDCs (if applicable)

xvi. SF-LLL: Disclosure of Lobbying Activities (required)

xvii. Waiver Requests (if applicable) ix

xviii. RESERVED

xix. Community Benefits Plan: Job Quality and Equity

xx. Current and Pending Support

xxi. Locations of Work

xxii. Transparency of Foreign Connections

xxiii. Potentially Duplicative Funding Notice

xxiv. Impacted Indian Tribes Documentation (if applicable)

D. Post Selection Information Requests E. Unique Entity Identifier (UEI) and System for Award Management (SAM) F. Submission Dates and Times G. Intergovernmental Review H. Funding Restrictions

i. Allowable Costs

ii. Pre-Award Costs

iii. Performance of Work in the United States (Foreign Work Waiver)

iv. Construction

v. Foreign Travel

vi. Equipment and Supplies

vii. Buy America Requirements for Infrastructure Projects

viii. Davis-Bacon Act Requirements

ix. Lobbying

x. Risk Assessment

xi. Invoice Review and Approval

xii. Prohibition related to Foreign Government-Sponsored Talent Recruitment Programs

xiii. Affirmative Action and Pay Transparency Requirements

xiv. Foreign Collaboration Considerations

V. Application Review Information

A. Technical Review Criteria

i. Full Applications

B. Standards for Application Evaluation C. Other Selection Factors

i. Program Policy Factors D. Evaluation and Selection Process

i. Overview

ii. Pre-Selection Interviews

iii. Pre-Selection Clarification

iv. Recipient Responsibility and Qualifications

v. Selection

E. Anticipated Notice of Selection and Award Negotiation Dates

VI. Award Administration Information

A. Award Notices

i. Ineligible Submissions

ii. Full Application Notifications

iii. Applicants Selected for Award Negotiations

iv. Alternate Selection Determinations

v. Unsuccessful Applicants

B. Administrative and National Policy Requirements

i. Registration Requirements

ii. Award Administrative Requirements

iii. Foreign National Participation (April 2023)

iv. Subaward and Executive Reporting x

v. National Policy Requirements

vi. Environmental Review in Accordance with National Federal Authorities

vii. Flood Resilience

viii. Applicant Representations and Certifications

ix. Statement of Federal Stewardship

x. Statement of Substantial Involvement

xi. Subject Invention Utilization Reporting

xii. Intellectual Property Provisions

xiii. Energy Data eXchange (EDX) Requirements

xiv. Reporting

xv. Go/No-Go Review

xvi. Conference Spending

xvii. Indemnity

xviii. Uniform Commercial Code (UCC) Financing Statements

xix. Implementation of Executive Order 13798, Promoting Free Speech and Religious Liberty

xx. Participants and Collaborating Organizations

xxi. Current and Pending Support

xxii. U.S. Manufacturing Commitments

xxiii. Interim Conflict of Interest Policy for Financial Assistance

xxiv. Fraud, Waste and Abuse

xxv. Human Subjects Research

xxvi. Construction Signage

xxvii. Real Property and Equipment

VII. Questions/Agency Contacts

VIII. Other Information

A. FOA Modifications B. Government Right to Reject or Negotiate C. Commitment of Public Funds D. Treatment of Application Information E. Evaluation and Administration by Non-Federal Personnel F. Notice Regarding Eligible/Ineligible Activities G. Notice of Right to Conduct a Review of Financial Capability H. Requirement for Full and Complete Disclosure I. Retention of Submissions J. Title to Subject Inventions K. Government Rights in Subject Inventions L. Rights in Technical Data M. Copyright N. Export Control O. Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment P. Personally Identifiable Information (PII) Q. Annual Independent Audits

Appendix A – Cost Share Information

Appendix B – Waiver Requests For: 1. Foreign Entity Participation; and 2. Foreign Work

Appendix C – Buy America Requirements for Infrastructure Projects

Required Use of American Iron, Steel, Manufactured Products, and Construction Material

Appendix D – Definition of Technology Readiness Levels

Appendix E – List of Acronyms xi

Appendix F – Statement of Project Objectives

Appendix G – Workforce Readiness Plan Template

Appendix H – Technology Maturation Plan Instructions and Template

Appendix I – Project Management Plan Template

I. Funding Opportunity Description

A. Background and Context

In November 2021, President Biden unveiled the U.S. Methane Emissions Reduction Action Plan redoubling efforts to dramatically reduce U.S. methane emissions while simultaneously cutting consumer costs, protecting workers and communities, growing jobs, and promoting U.S. technology innovation. Aligned with this action was the Administration’s pledge the United States would work with global partners through the Global Methane Pledge to reduce the world’s methane emissions 30% from 2020 levels by 2030. Second to emissions of carbon dioxide (CO2), methane emissions are the largest contributor to climate change.

The U.S. Methane Emissions Reduction Action Plan is an ambitious, whole-of-government initiative using all available tools – regulations, financial incentives, transparency and disclosure of data, and public and private partnerships – to identify and cost-effectively reduce methane emissions from all major sources, including those from the oil and natural gas industry, the largest industrial source of methane emissions in the United States, responsible for approximately 28% of total methane emissions.1 The Administration’s targets include a 50 percent reduction in greenhouse gas emissions by 20302, 100 percent carbon pollution-free electricity sector by 2035, and net-zero emissions by 2050. These aggressive emissions reduction targets will be met, in part, by advancing technologies reducing and potentially eliminating methane emissions associated with the production and transmission of oil and natural gas. Natural gas emissions mitigation is dependent on our ability to quantify and minimize emissions of methane within the natural gas production, processing, transport, and end use sectors.

In August 2022, Congress passed, and President Biden signed the Inflation Reduction Act of 2022 into law. The Inflation Reduction Act makes a historic commitment to build a new clean energy economy, powered by American innovators, American workers, and American manufacturers, creating high-paying and stable jobs and cut the pollution fueling the climate crisis and driving environmental injustice.

1 https://www.epa.gov/ghgemissions/overview-greenhouse-gases 2 FACT SHEET: President Biden Sets 2030 Greenhouse Gas Pollution Reduction Target Aimed at Creating Good-Paying Union Jobs and Securing U.S. Leadership on Clean Energy Technologies | The White House https://www.epa.gov/ghgemissions/overview-greenhouse-gases https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/22/fact-sheet-president-biden-sets-2030-greenhouse-gas-pollution-reduction-target-aimed-at-creating-good-paying-union-jobs-and-securing-u-s-leadership-on-clean-energy-technologies/ https://www.whitehouse.gov/briefing-room/statements-releases/2021/04/22/fact-sheet-president-biden-sets-2030-greenhouse-gas-pollution-reduction-target-aimed-at-creating-good-paying-union-jobs-and-securing-u-s-leadership-on-clean-energy-technologies/

Section 60113 of the Inflation Reduction Act (“Methane Emissions Reduction Program”) amended the Clean Air Act (CAA) by adding section 136 entitled “Methane Emissions and Waste Reduction Incentive Program for Petroleum and Natural Gas Systems” (also referred to as the Methane Emissions Reduction Program) (codified at 42 U.S.C. 7436). CAA section 136 gives EPA the authority, and $1.55 billion in funding, to award grants, rebates, contracts, loans, and other activities for the purpose of providing financial and technical assistance to reduce methane and other greenhouse gas emissions from petroleum and natural gas systems.

i. Program Purpose

In July 2023, EPA entered into an interagency agreement (amended in June 2024) with NETL to provide technical and management support for $1.36 billion through both grant awards to state-based regulatory organizations for voluntary and permanent plugging and abandonment of marginal conventional wells (MCWs)3, and a competitive solicitation related to the deployment of methane measurement, monitoring, quantification, and mitigation technologies, tools, and processes.

Under the interagency agreement, the U.S. Department of Energy (DOE) is partnering with EPA to release this FOA making funds available to a variety of stakeholders for the purpose of mitigating methane emissions from MCWs and other oil and natural gas assets; accelerating the commercialization, scale-up, and application of innovative methane emissions reduction technologies; and advancing the characterization and reduction of methane emissions through multi-scale, measurement-informed data collection and analysis.

This FOA aligns with DOE’s Office of Resource Sustainability’s Methane Emissions Mitigation and Quantification Program to minimize emissions of methane during production, processing, and transportation across the oil and natural gas industry, with the goal of eliminating methane emissions from carbon-based fuel supply chains by 2030. Effective methane emissions mitigation strategies are dependent upon accurate quantification of both intentional and fugitive emissions from all elements across the natural gas infrastructure, including low producing oil and gas wells. Therefore, there is a continual need to maintain a state-of-the-industry understanding of methane emissions mitigation opportunities and operation performance, through collection of empirical data, across oil and natural gas production and delivery regions of the United States.

3 Idle or producing vertical or slightly deviated oil or natural gas well (excludes highly deviated or horizontal wells) with a known owner / operator producing less than or equal to 15 barrels of oil equivalent per day (BOED) or 90 thousand cubic feet (Mcf) gas per day over the prior 12-month period.

This is to maximize the value of these efforts to the public with goals of reducing GHG emissions and improving environmental health and engagement of the affected public (largely in disadvantaged or frontline communities).

This FOA supports the Administration goals laid out above by funding efforts to reduce methane and other greenhouse gas emissions associated with the oil and natural gas supply chain—supporting the Administration’s three goals of reducing greenhouse gas emissions by 50 percent by 2030, 100 percent carbon pollution-free electricity sector by 2035, and net-zero carbon emissions economy by 2050. A principal objective of the Administration’s goals is to reduce and eventually eliminate methane emissions from all sources within the oil and natural gas supply chain.

As part of the whole-of-government approach to advance equity and encourage worker organizing and collective bargaining,4, 5, 6 this FOA and any related activities will seek to encourage meaningful engagement and participation of workforce organizations, including labor unions, as well as underserved groups and disadvantaged communities, including Federally Recognized Indian Tribes.

Consistent with Executive Order 14008,7 this FOA is designed to help meet the goal that 40% of the overall benefits of certain Federal investments flow to disadvantaged communities, as defined by the Climate and Economic Justice Screening Tool, pursuant to the Executive Order8, and to drive creation of accessible, good-paying jobs with the free and fair chance for workers to join a union.

ii. Technology Space and Strategic Goals

Among other sources, approximately 221 million metric tonnes (MMT) of carbon dioxide equivalent (CO2e)9 of methane are emitted across the oil and natural gas value chain10 , which consists of more than two million miles of pipelines; more than four million11 actively producing, abandoned, or repurposed oil and natural gas wells; and more than 10,00012 unit operations consisting of natural gas processing plants, compressor stations, and gathering stations.

4 EO 13985, “Advancing Racial Equity and Support for Underserved Communities Through the Federal Government” January 20, 2021. EO 14091, “Further Advancing Racial Equity and Support for Underserved Communities Through the Federal Government, February 16, 2023.

5 EO 14025, “Worker Organizing and Empowerment,” April 26, 2021.

6 EO 14052, “Implementation of the Infrastructure Investment and Jobs Act,” November 18, 2021.

7 EO 14008, “Tackling the Climate Crisis at Home and Abroad,” January 27, 2021.

8 The Justice40 initiative, established by EO 14008, sets a goal that 40% of the overall benefits of certain federal investments flow to disadvantaged communities. Consistent with Justice40 guidance, DOE recognizes disadvantaged communities as the census tracts defined and identified as disadvantaged by the Climate and Economic Justice Screening Tool (CEJST), located at https://screeningtool.geoplatform.gov/, as well as all Federally Recognized Tribes (whether or not they have land). See https://www.whitehouse.gov/wp-content/uploads/2023/01/M-23- 09_Signed_CEQ_CPO.pdf.

9 https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks-1990-2022 10 https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks-1990-2022 11 https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks-1990-2022 12 https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks-1990-2022 https://www.federalregister.gov/documents/2021/01/25/2021-01753/advancing-racial-equity-and-support-for-underserved-communities-through-the-federal-government https://www.federalregister.gov/documents/2021/04/29/2021-09213/worker-organizing-and-empowerment https://www.federalregister.gov/documents/2021/11/18/2021-25286/implementation-of-the-infrastructure-investment-and-jobs-act https://www.federalregister.gov/documents/2021/02/01/2021-02177/tackling-the-climate-crisis-at-home-and-abroad https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/27/executive-order-on-tackling-the-climate-crisis-at-home-and-abroad/ https://screeningtool.geoplatform.gov/ https://www.whitehouse.gov/wp-content/uploads/2023/01/M-23-09_Signed_CEQ_CPO.pdf https://www.whitehouse.gov/wp-content/uploads/2023/01/M-23-09_Signed_CEQ_CPO.pdf https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks-1990-2022 https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks-1990-2022 https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks-1990-2022 https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks-1990-2022

Facilities emitting greater than 25,000 metric tons of CO2e are required to report their emissions to the U.S. EPA Greenhouse Gas Reporting Program (GHGRP).

Data reported to the GHGRP from approximately 8,000 facilities, including both direct emitters and upstream suppliers combined, cover 85-90 percent of the total U.S. greenhouse gas emissions.13

In addition to data reported to the GHGRP, other inputs including sources not covered by the GHGRP are used to develop the national-level Inventory of U.S.

Greenhouse Gas Emissions and Sinks (GHGI). The 2024 GHGI reported 2022 (most recent year of data availability) emissions, which included methane emissions of about 173.1 MMT CO2e attributed to natural gas systems (Table 1) and 39 MMT CO2e attributed to petroleum systems (Table 2). In addition, 8.5 MMT CO2e is attributed to abandoned oil and gas wells (data from table 3-108 of 2024 GHGI, not included in the tables below).14 The bulk of these emissions come from the production, transmission, and storage portions of the oil and natural gas supply chains.

CH4 Emissions from Natural Gas Systems (MMT CO2 Eq.)

Exploration 0.2 Production 89.7 Onshore Production 46.2 Gathering and Boosting 42.8 Offshore Production 0.6 Processing 15.1 Transmission and Storage 39.6 Distribution 15.2 Post-Meter 13.4 Total 173.1

Table 1: 2022 US Methane Emissions, Natural Gas Systems Overview.

Source emissions data adapted from Table 3-73 of the 2024 GHGI inventory (chapter 3). Values may not add up to Total Emissions due to rounding calculations.

13 GHGRP 2022: Reported Data, 2022 GHGRP Overview Report.

14 EPA uses a GWP-100 of 28 (EPA, 2021d) in its U.S. Inventory of Greenhouse Gas Emissions and Sinks, consistent with Paris Agreement reporting requirements.

CH4 Emissions from Petroleum Systems (MMT CO2 Eq.)

Exploration 0.1 Production 38.6 Onshore Production 33.5 Offshore Production 5.1 Crude Oil Transportation 0.2 Refining 0.7 Total 39.6

Table 2: 2022 US Methane Emissions, Petroleum Systems Overview.

Source emissions data adapted from Table 3-44 of the 2024 GHGI inventory (chapter 3). Values may not add up to Total Emissions due to rounding calculations.

A leading challenge associated with mitigating methane emissions from the oil and natural gas value chain is the complexity of these systems and the magnitude of the number of individual operating components widely distributed across all corners of the country. EPA has estimated significant upstream methane emissions come from point sources such as pneumatic controllers (gas pressure driven valve controllers releasing small amounts of methane every time the valve is opened or closed), gathering and boosting stations (which include compression, dehydration, and transportation components), compressors located along the supply chain used to boost in-line pressure for transmission, combustion slip within gas powered engines used to transport or produce natural gas, and storage tanks on well pads. A relatively large number of other individual types of equipment and operational activities account for the rest of the emissions, including flaring of associated gas where infrastructure or economics are insufficient for transport and utilization.

EPA estimates the sectors responsible for the largest amount of methane emissions are the production sectors for both petroleum (38.6 MMTCO2e in 2022) and natural gas systems (89.7 MMTCO2e in 2022). Production sector emissions account for 98.9 percent of all emissions within the petroleum system and 51.8 percent of emissions within the natural gas system. The transmission and storage sector of the natural gas systems account for 22.3 percent of all natural gas system emissions. Refining from petroleum systems and processing from natural gas systems are the other two sectors composing the majority of the remaining emissions from each system. Refining accounts for 1.7 percent of emissions within petroleum system, while processing accounts for 8.7 percent of emissions within natural gas systems.

iii. Objectives

This FOA seeks applications for mitigating methane emissions from MCWs and other oil and natural gas assets; accelerating the commercialization, scale-up and application of innovative methane emissions reduction technologies; and advancing the characterization and reduction of methane emissions through multi-scale, measurement-informed data collection and analysis to monitor and mitigate methane emissions from the oil and natural gas production sector.

Specifically, the overall objectives of this FOA are to:

1. Reduce methane emissions to near-zero levels from oil and natural gas operations using commercially available technology solutions for methane emissions mitigation, monitoring, measurement, and quantification15. In all Areas of Interest (AOIs), quantification of methane emissions using direct methane measurements is desired. In instances where direct quantification of an emission rate is not feasible, measured data from various sources combined with an established emission rate estimation methodology is an acceptable option. Where remote sensing is used, methane emissions quantification from measured concentration data must be transparent, with documentation of inputs, models applied, and assumptions.

2. Accelerate the repair of methane leaks from low-producing wells and deployment of early-commercial technology solutions to reduce methane emissions from new and existing equipment such as natural gas compressors, gas-fueled engines, associated gas flares, liquids unloading operations, handling of produced water and other equipment leakage.

3. Accelerate community participation in monitoring and access to data, and enhance local and regional characterization of methane emissions through the continued implementation of multi-scale methane monitoring and quantification technologies and approaches across the oil and natural gas producing regions of the U.S. to provide public-facing datasets available to operators, regulators, and other key entities, in addition to informing

15 Mitigation: Reducing the risk of loss of methane from chronic and acute emissions sources through the replacement or modification of oil and natural gas assets, or modification of operating procedures.

Monitoring: Observing the level of methane emissions associated with routine and non-routine operations, through a combination of detection or sensing and measurement devices, with the intent of utilizing the gathered information or data for mitigation or reporting purposes.

Measurement: Evaluating the variance or flux of methane emissions in comparison to baseline atmospheric conditions to determine the methane concentrations (e.g., mass/time, ppm) related to routine or non-routine operations.

Quantification: Directly measuring or indirectly calculating methane emission concentrations and rates of emissions using suitable and proven technologies or algorithms for a facility, well pad, piece of equipment, or other operational component both spatially and temporally. Specific to AOI 1, quantification and health effects in low-income and disadvantaged communities should be utilized for mitigation prioritization as well as for post-mitigation confirmation of methane emissions reduction.

emissions estimates such as those in the GHGI, and leading to broad emissions mitigation.

Within the context of each of the above objectives, this FOA is expected to achieve measurable positive impacts with respect to skilled workforce training and development, and environmental justice16 through community involvement.

Accordingly, this FOA has three (3) Areas of Interest (AOIs) aligned with these objectives. The AOIs, listed below, are described in detail in Section I.B.

The AOIs of this Announcement are:

• AOI 1 – Methane Emissions Reduction from Existing Wells and Infrastructure, with three (3) sub AOI’s

• AOI 2 – Accelerating Deployment of Methane Emissions Reduction Solutions, with three (3) sub AOI’s

• AOI 3 – Accelerating Deployment of Methane Emissions Monitoring Solutions, with two (2) sub AOI’s

Detailed technical descriptions of the specific Areas of Interest are provided in the following sections.

B. Areas of Interest

i. Area of Interest 1: Methane Emissions Reduction from Existing Wells and Infrastructure

Within the U.S., approximately 7% to 8% of oil and natural gas production is generated from approximately 770,000 MCWs. While MCWs account for a small volume of production in the U.S., they make up the vast majority (79%) of all wells (Figure 5). For the purposes of this FOA, an MCW is defined as an idle or producing vertical or slightly deviated oil or natural gas well (excludes highly deviated or horizontal wells) with a known owner / operator producing less than or equal to 15 barrels of oil equivalent per day (BOED) or 90 thousand cubic feet (Mcf) gas per day over the prior 12-month period.

16 Executive Order 14096 “Revitalizing Our Nation's Commitment to Environmental Justice for All” defines environmental justice as “Environmental justice” means the just treatment and meaningful involvement of all people, regardless of income, race, color, national origin, Tribal affiliation, or disability, in agency decision-making and other Federal activities that affect human health and the environment so that people: are fully protected from disproportionate and adverse human health and environmental effects (including risks) and hazards, including those related to climate change, the cumulative impacts of environmental and other burdens, and the legacy of racism or other structural or systemic barriers; and, have equitable access to a healthy, sustainable, and resilient environment in which to live, play, work, learn, grow, worship, and engage in cultural and subsistence practices.

Figure 5: Production Rate by bracket for all producing wells in the US Energy Information

Administration (EIA)17

Recent studies have shown MCWs tend to have a higher methane leak rate, as emissions, than other wells. The top 15% of MCWs, based on methane loss rate, that were monitored in a recent study showed that their emissions rates exceeded 32% of their methane production. Furthermore, the top 5% of MCWs, based on methane loss rate, in that study exhibited methane emission rates of >90% of their production.18

With over 770,000 MCWs in the U.S. and disproportionally high emissions rates, there is a need for the EPA/DOE collaboration to focus on the elimination or reduction of emissions from MCWs. This AOI focuses, in large part, on methane emissions from MCWs by utilizing commercially available technologies and necessary modifications to reduce emissions from oil and natural gas production and transportation sources. The primary foci will be to eliminate and reduce emissions from MCWs and other low producing wells and associated infrastructure with high methane emission intensity.

To transport natural gas from well sites, the gas is initially placed into gathering lines, eventually leading to downstream customers. In the U.S., there are more than 2.5 million miles of pipelines, including gathering, transmission and distribution systems,19 and 1,650 compressor stations.20

17 https://www.eia.gov/petroleum/wells/ 18 https://www.nature.com/articles/s41467-022-29709-3 19https://primis.phmsa.dot.gov/comm/PipelineBasics.htm#:~:text=The%20energy%20transportation%20network%20of,3%2C00 0%20companies%2C%20large%20and%20small 20 Michael Hendryx, Juhua Luo, Natural gas pipeline compressor stations: VOC emissions and mortality rates, The Extractive Industries and Society, Volume 7, Issue 3, 2020, Pages 864-869, ISSN 2214-790X, https://doi.org/10.1016/j.exis.2020.04.011 https://www.eia.gov/petroleum/wells/ https://www.nature.com/articles/s41467-022-29709-3 https://primis.phmsa.dot.gov/comm/PipelineBasics.htm#:%7E:text=The%20energy%20transportation%20network%20of,3%2C000%20companies%2C%20large%20and%20small https://primis.phmsa.dot.gov/comm/PipelineBasics.htm#:%7E:text=The%20energy%20transportation%20network%20of,3%2C000%20companies%2C%20large%20and%20small https://doi.org/10.1016/j.exis.2020.04.011

A gathering system typically includes multiple pipelines brought together at a central point, which can be a compressor station, storage facility, processing point, larger pipeline, or sales point. A gathering system can consist of a small handful of wells and pipelines or can include hundreds of miles of pipelines and hundreds of producing wells.21 Generally, compressor stations are positioned every 25 to 100 miles along natural gas transmission systems to ensure efficient operations. In 2022, it was estimated in the U.S. there was 29.2 trillion cubic feet of natural gas transported via pipeline.22

It is anticipated more than 10,000 repairs could be made across the oil and gas infrastructure under AOI 1.

a. Area of Interest 1a: Reducing Methane Emissions from Marginal Conventional Wells

i. Objectives and Background (AOI 1a)

The objective of AOI 1a is to enable and accelerate methane emissions mitigation from MCWs by measuring, prioritizing, and voluntarily reducing methane emissions. Methane mitigation efforts are to include but not be limited to: 1.) upstream operational improvements, 2.) identification and repair of leak sources, 3.) training skilled workforce on measurement and mitigation procedures, 4.) installation of new leak preventive technologies (e.g., zero bleed pneumatic controllers, tank leak prevention technologies), 5.) voluntary plugging of high emitting MCWs on non-federal lands.

Figure 6: BOE Production by bracket and the impact of AOI 1a

21 Midstream 101: Gas gathering, Williams, https://www.williams.com/2016/03/10/midstream-101-gas-gathering/ 22 Natural gas explained, Natural gas pipelines, https://www.eia.gov/energyexplained/natural-gas/natural-gas-pipelines.php

AOI 1a: $300M MCW Methane Reduction Program

~720,000 Wells on Non-Federal Lands https://www.williams.com/2016/03/10/midstream-101-gas-gathering/ https://www.eia.gov/energyexplained/natural-gas/natural-gas-pipelines.php

These mitigation activities are expected to fully eliminate methane emissions from voluntarily plugged and abandoned MCWs and significantly reduce methane emissions from retrofitted and repaired MCWs owned by small operators18 (Figure 7) and in the case of well plugging, provide long-term environmental benefit through regulation compliant site restoration completed as part of environmental monitoring and mitigation requirements through the appropriate Federal, state, and local agencies. Based on an estimate of the average methane emission rate of 820 grams/hour per well23, it is estimated MCWs owned by small operators potentially emit 41.58 MMT CO2e per year.

The objective of AOI 1a is to reduce the emissions as much as possible.

Figure 7: Location of Marginal Wells in the U.S. and Regional estimates of low production well site CH4 emissions2 (1 Tg is equal to 1 MMT)

Results of these activities are also anticipated to provide potential benefits to impacted and disadvantaged communities such as improved air quality, mitigation of legacy air pollution, creation of high-quality jobs, improved surface and groundwater quality, and improvements to overall human health.

MCWs are located throughout the U.S. but are concentrated in areas such as Appalachia (Pennsylvania, Ohio, West Virginia, Kentucky, New York), Mid Continent (Oklahoma, Kansas, Arkansas), Permian Basin (Texas, New Mexico), Barnett Shale (Texas), and the Mountain Region (Colorado, Utah, Wyoming).24

To meet the objectives under AOI 1a, a single lead organization is being sought to develop and execute a program, in collaboration with DOE, facilitating the purchase and distribution of commercially available, “off-the-shelf” methane emissions mitigation technologies to support effective emissions abatement from MCWs, including the development of guidelines for MCW emissions mitigation prioritization, equipment procurement and distribution, and

23 https://www.nature.com/articles/s41467-022-29709-3 24 Omara, M., Zavala-Araiza, D., Lyon, D.R. et al. Methane emissions from US low production oil and natural gas well sites. Nat Communications 13, 2085 (2022). https://doi.org/10.1038/s41467-022-29709-3 https://www.nature.com/articles/s41467-022-29709-3 https://doi.org/10.1038/s41467-022-29709-3 methane emissions measurement at MCW locations both before and after emissions mitigation action(s) have taken place in general alignment with the DOE/NETL developed methane measurement guidelines. The organization is encouraged but not required to make use of NETL’s open-source MCW prioritization and mitigation optimization decision-support framework, “PRIMO”, to prioritize which well sites to target, while also optimizing emissions abatement campaigns for maximum impact and efficiency.

Projects may also support elements of environmental restoration required for full compliance with applicable State or Federal standards and regulations.

The single lead organization will be responsible for:

1. Developing and implementing an Annual Operating and Funds Distribution Plan to identify, prioritize, and select methane emissions sources for mitigation, including plans for procurement and funds dispersal to third party companies for repairs.

2. Defining and implementing a funds implementation process, including all necessary technical and financial verification and auditing efforts.

3. Developing communication and data tracking tools to effectively and accurately quantify and communicate the emission reduction impacts of the efforts.

Organizations applying to lead efforts under AOI 1a should have characteristics including but not limited to:

1. Expertise in oil and gas operations (including but not limited to MCWs)

2. Expertise in measurement, reporting, and mitigation of methane emissions

3. Ability to develop and implement a skilled workforce training program, (which may include coordination with unions, higher education institutions, technical schools, and/or other workforce training providers)

4. Knowledge of effective scientific communication methods

5. Database development and management

ii. Technical Elements Required in Applications to AOI 1a

Applications to AOI 1a must include the following technical elements:

1. A Workplan including:

• An explanation of sources of emissions at well sites and associated infrastructure the applicant intends to address and their respective impact on overall emissions.

• A Design and Implementation Plan for…