diff --git a/config.yml b/config.yml
index aa9496c7..21426913 100644
--- a/config.yml
+++ b/config.yml
@@ -82,7 +82,8 @@ Gamma: 1.0
 PrecomputedJacobian: false
 
 ## Grid
-##   Options are 0.25x0.3125 (GEOSFP only), 0.5x0.625, 2.0x2.5, or 4.0x5.0
+##   Options are 0.125x0.15625 (GEOS-FP only), 0.25x0.3125 (GEOS-FP only),
+##   0.5x0.625, 2.0x2.5, or 4.0x5.0
 Res: "0.25x0.3125"
 
 ## Meteorology
diff --git a/envs/Harvard-Cannon/config.harvard-cannon.12km.yml b/envs/Harvard-Cannon/config.harvard-cannon.12km.yml
new file mode 100644
index 00000000..c87fa087
--- /dev/null
+++ b/envs/Harvard-Cannon/config.harvard-cannon.12km.yml
@@ -0,0 +1,217 @@
+## IMI configuration file
+## Documentation @ https://imi.readthedocs.io/en/latest/getting-started/imi-config-file.html
+
+## General
+RunName: "Test_IMI_Philadelphia"
+isAWS: false
+UseSlurm: true
+SafeMode: true
+S3Upload: false
+
+## Period of interest
+StartDate: 20220101
+EndDate: 20230101
+SpinupMonths: 1
+
+## Use blended TROPOMI+GOSAT data (true)? Or use operational TROPOMI data (false)?
+BlendedTROPOMI: false
+
+## Is this a regional inversion? Set to false for global inversion
+isRegional: true
+
+## Select two character region ID (for using pre-cropped meteorological fields)
+##   Current options are listed below with ([lat],[lon]) bounds:
+##     "AF" : Africa ([-37,40], [-20,53])
+##     "AS" : Asia ([-11,55],[60,150]) 
+##     "EU" : Europe ([33,61],[-30,70])
+##     "ME" : Middle East ([12,50], [-20,70])
+##     "NA" : North America ([10,70],[-140,-40])
+##     "OC" : Oceania ([-50,5], [110,180])
+##     "RU" : Russia ([41,83], [19,180])
+##     "SA" : South America ([-59,16], [-88,-31])
+##     ""   : Use for global global simulation or custom regions
+##   For example, if the region of interest is in Europe ([33,61],[-30,70]), select "EU".
+RegionID: "NA"
+
+## Region of interest
+##   These lat/lon bounds are only used if CreateAutomaticRectilinearStateVectorFile: true
+##   Otherwise lat/lon bounds are determined from StateVectorFile
+LonMin: -105
+LonMax: -103
+LatMin: 31
+LatMax: 33
+
+## Kalman filter options
+KalmanMode: false
+UpdateFreqDays: 7
+NudgeFactor: 0.1
+
+## State vector
+CreateAutomaticRectilinearStateVectorFile: true
+nBufferClusters: 8
+BufferDeg: 5
+LandThreshold: 0.25
+OffshoreEmisThreshold: 0
+OptimizeBCs: false
+OptimizeOH: false
+
+## Point source datasets
+## Used for visualizations and state vector clustering
+PointSourceDatasets: ["SRON"]
+
+## Clustering Options
+ReducedDimensionStateVector: false
+DynamicKFClustering: false
+ClusteringMethod: "kmeans"
+NumberOfElements: 45
+ForcedNativeResolutionElements: 
+  - [31.5, -104]
+
+## Custom state vector
+StateVectorFile: "/path/to/StateVector.nc"
+ShapeFile: "resources/shapefiles/tmp.shp"
+
+## Inversion
+## Note PriorError and PriorErrorOH are relative fractions (e.g. 0.5 = 50%)
+##  and PriorErrorBCs is in ppb
+PriorError: 0.5
+PriorErrorBCs: 10.0
+PriorErrorOH: 0.5
+ObsError: 15
+Gamma: 1.0
+PrecomputedJacobian: false
+
+## Grid
+##   Options are 0.125x0.15625 (GEOS-FP only), 0.25x0.3125 (GEOS-FP only),
+##   0.5x0.625, 2.0x2.5, or 4.0x5.0
+Res: "0.125x0.15625"
+
+## Meteorology
+##   Options are GEOSFP or MERRA2
+Met: "GEOSFP"
+
+## Setup modules
+##   Turn on/off different steps in setting up the inversion 
+RunSetup: true
+SetupTemplateRundir: true
+SetupSpinupRun: false
+SetupJacobianRuns: false
+SetupInversion: false
+SetupPosteriorRun: false
+
+## Run modules
+##   Turn on/off different steps in performing the inversion
+DoPriorEmis: true
+DoSpinup: false
+DoJacobian: false
+DoInversion: false
+DoPosterior: false
+
+## IMI preview
+##   NOTE: RunSetup must be true to run preview
+DoPreview: true
+DOFSThreshold: 0
+
+## Resource allocation settings for slurm jobs
+PriorMemory: 50000
+SimulationCPUs: 16
+SimulationMemory: 200000
+JacobianCPUs: 16
+JacobianMemory: 100000
+RequestedTime: "0-24:00"
+SchedulerPartition: "sapphire,huce_cascade,huce_intel,seas_compute,shared"
+
+## Max number of simultaneous Jacobian runs from the job array (-1: no limit)
+MaxSimultaneousRuns: -1
+
+## Specify number of Jacobians runs to perform
+##   The default is -1 which will create and submit a jacobian run
+##   for each state vector element. Specifying a value >= 1 will
+##   combine state vector elements into fewer runs.
+NumJacobianRuns: -1
+
+##====================================================================
+##
+## Advanced Settings (optional)
+##
+##====================================================================
+
+## These settings are intended for advanced users who wish to:
+##   a. modify additional GEOS-Chem options, or
+##   b. run the IMI on a local cluster.
+## They can be ignored for any standard cloud application of the IMI.
+
+##--------------------------------------------------------------------
+## Additional settings for GEOS-Chem simulations
+##--------------------------------------------------------------------
+
+## Jacobian settings
+## Note PerturbValue and PerturbValueOH are relative scale factors and 
+## PerturbValueBCs is in ppb
+PerturbValue: 1.5
+PerturbValueOH: 1.5
+PerturbValueBCs: 10.0
+
+## Apply scale factors from a previous inversion?
+UseEmisSF: false
+UseOHSF: false
+
+## Save out hourly diagnostics from GEOS-Chem?
+## For use in satellite operators via post-processing -- required for TROPOMI
+## inversions
+HourlyCH4: true
+
+## Turn on planeflight diagnostic in GEOS-Chem?
+## For use in comparing GEOS-Chem against planeflight data. The path
+## to those data must be specified in input.geos.
+PLANEFLIGHT: false
+
+## Turn on old observation operators in GEOS-Chem?
+## These will save out text files comparing GEOS-Chem to observations, but have
+## to be manually incorporated into the IMI
+GOSAT: false
+TCCON: false
+AIRS: false
+
+##------------------------------------------------------------------
+## Settings for running on local cluster
+##------------------------------------------------------------------
+
+## Path for IMI runs and output
+OutputPath: "/n/holyscratch01/jacob_lab/$USER"
+
+## Path to GEOS-Chem input data
+DataPath: "/n/holyscratch01/external_repos/GEOS-CHEM/gcgrid/gcdata/ExtData"
+
+## Path to TROPOMI Data
+DataPathTROPOMI: "/n/holylfs05/LABS/jacob_lab/imi/ch4/tropomi"
+
+## Conda environment file
+## See envs/README to create the Conda environment specified below
+CondaEnv: "imi_env"
+
+## GEOS-Chem environment file (with fortran compiler, netcdf libraries, etc.)
+##   NOTE: Copy your own file in the envs/ directory within the IMI
+GEOSChemEnv: "envs/Harvard-Cannon/gcclassic.rocky+gnu12.minimal.env"
+
+## Download initial restart file from AWS S3?
+##   NOTE: Must have AWS CLI enabled
+RestartDownload: false
+
+## Path to initial GEOS-Chem restart file + prefix
+##   ("YYYYMMDD_0000z.nc4" will be appended)
+RestartFilePrefix: "/n/holylfs05/LABS/jacob_lab/imi/ch4/tropomi-boundary-conditions/v2023-10/GEOSChem.BoundaryConditions."
+RestartFilePreviewPrefix: "/n/holylfs05/LABS/jacob_lab/imi/ch4/tropomi-boundary-conditions/v2023-10/GEOSChem.BoundaryConditions."
+
+## Path to GEOS-Chem boundary condition files (for regional simulations)
+## BCversion will be appended to the end of this path. ${BCpath}/${BCversion}
+BCpath: "/n/holylfs05/LABS/jacob_lab/imi/ch4/tropomi-boundary-conditions"
+BCversion: "v2023-10"
+
+## Options to download missing GEOS-Chem input data from AWS S3
+##   NOTE: Must have AWS CLI enabled
+PreviewDryRun: false
+SpinupDryrun: false
+ProductionDryRun: false
+PosteriorDryRun: false
+BCdryrun: false
diff --git a/envs/Harvard-Cannon/config.harvard-cannon.global_inv.yml b/envs/Harvard-Cannon/config.harvard-cannon.global_inv.yml
index 9c9d4f49..7a4dafb2 100644
--- a/envs/Harvard-Cannon/config.harvard-cannon.global_inv.yml
+++ b/envs/Harvard-Cannon/config.harvard-cannon.global_inv.yml
@@ -82,7 +82,8 @@ Gamma: 1.0
 PrecomputedJacobian: false
 
 ## Grid
-##   Options are 0.25x0.3125 (GEOSFP only), 0.5x0.625, 2.0x2.5, or 4.0x5.0
+##   Options are 0.125x0.15625 (GEOS-FP only), 0.25x0.3125 (GEOS-FP only),
+##   0.5x0.625, 2.0x2.5, or 4.0x5.0
 Res: "2.0x2.5"
 
 ## Meteorology
diff --git a/envs/Harvard-Cannon/config.harvard-cannon.yml b/envs/Harvard-Cannon/config.harvard-cannon.yml
index 35cfd266..62a28db8 100644
--- a/envs/Harvard-Cannon/config.harvard-cannon.yml
+++ b/envs/Harvard-Cannon/config.harvard-cannon.yml
@@ -82,7 +82,8 @@ Gamma: 1.0
 PrecomputedJacobian: false
 
 ## Grid
-##   Options are 0.25x0.3125 (GEOSFP only), 0.5x0.625, 2.0x2.5, or 4.0x5.0
+##   Options are 0.125x0.15625 (GEOS-FP only), 0.25x0.3125 (GEOS-FP only),
+##   0.5x0.625, 2.0x2.5, or 4.0x5.0
 Res: "0.25x0.3125"
 
 ## Meteorology
diff --git a/src/components/prior_component/prior.sh b/src/components/prior_component/prior.sh
index 87095d45..1b12b480 100644
--- a/src/components/prior_component/prior.sh
+++ b/src/components/prior_component/prior.sh
@@ -40,10 +40,12 @@ run_prior() {
 	resnum="3"
     elif [ "$Res" == "0.25x0.3125" ]; then
 	resnum="4"
+    elif [ "$Res" == "0.125x0.15625" ]; then
+       resnum="4"
     else
-	printf "\nERROR: Grid resolution ${Res} is not supported by the IMI. "
-	printf "\n Options are 0.25x0.3125, 0.5x0.625, 2.0x2.5, or 4.0x5.0.\n"
-	exit 1
+	   printf "\nERROR: Grid resolution ${Res} is not supported by the IMI."
+	   printf "\n Options are 0.125x0.15625, 0.25x0.3125, 0.5x0.625, 2.0x2.5, or 4.0x5.0.\n"
+	   exit 1
     fi
     HEMCOconfig=${RunTemplate}/HEMCO_Config.rc
     
diff --git a/src/components/setup_component/setup.sh b/src/components/setup_component/setup.sh
index e26554b4..355410bb 100644
--- a/src/components/setup_component/setup.sh
+++ b/src/components/setup_component/setup.sh
@@ -97,7 +97,10 @@ setup_imi() {
 	exit 1
     fi
 
-    if [ "$Res" == "0.25x0.3125" ]; then
+    if [ "$Res" == "0.125x0.15625" ]; then
+        gridDir="${Res}"
+        gridFile="0125x015625" 
+    elif [ "$Res" == "0.25x0.3125" ]; then
         gridDir="${Res}"
         gridFile="025x03125"
     elif [ "$Res" == "0.5x0.625" ]; then
@@ -111,7 +114,7 @@ setup_imi() {
         gridFile="4x5"
     else
 	printf "\nERROR: Grid resolution ${Res} is not supported by the IMI. "
-	printf "\n Options are 0.25x0.3125, 0.5x0.625, 2.0x2.5, or 4.0x5.0.\n"
+	printf "\n Options are 0.125x0.15625, 0.25x0.3125, 0.5x0.625, 2.0x2.5, or 4.0x5.0.\n"
 	exit 1
     fi
     # Use cropped met for regional simulations instead of using global met
diff --git a/src/components/statevector_component/aggregation.py b/src/components/statevector_component/aggregation.py
index c3195287..a1bc4e95 100755
--- a/src/components/statevector_component/aggregation.py
+++ b/src/components/statevector_component/aggregation.py
@@ -224,7 +224,9 @@ def get_max_aggregation_level(config, sensitivities, desired_element_num):
         desired_element_num   int : desired number of state vector elements
     Returns:                  int : max gridcells per cluster
     """
-    if config["Res"] == "0.25x0.3125":
+    if config["Res"] == "0.125x0.15625":
+        max_aggregation_level = 512
+    elif config["Res"] == "0.25x0.3125":
         max_aggregation_level = 256
     elif config["Res"] == "0.5x0.625":
         max_aggregation_level = 64
@@ -328,7 +330,10 @@ def force_native_res_pixels(config, clusters, sensitivities):
         )
         return sensitivities
 
-    if config["Res"] == "0.25x0.3125":
+    if config["Res"] == "0.125x0.15625":
+        lat_step = 0.125
+        lon_step = 0.15625
+    elif config["Res"] == "0.25x0.3125":
         lat_step = 0.25
         lon_step = 0.3125
     elif config["Res"] == "0.5x0.625":
diff --git a/src/components/statevector_component/statevector.sh b/src/components/statevector_component/statevector.sh
index 02a7d294..62366a5d 100644
--- a/src/components/statevector_component/statevector.sh
+++ b/src/components/statevector_component/statevector.sh
@@ -12,12 +12,18 @@ create_statevector() {
     
     # Use GEOS-FP or MERRA-2 CN file to determine ocean/land grid boxes
     if "$isRegional"; then
-        LandCoverFile="${DataPath}/GEOS_${gridDir}/${metDir}/${constYr}/01/${Met}.${constYr}0101.CN.${gridFile}.${RegionID}.${LandCoverFileExtension}"
+        if [ "$Res" = "0.125x0.15625" ]; then
+            LandCoverFile="/n/home00/xlwang/xlwang/methane_inversion/InputData/land_cover/data/IMERG_land_sea_mask_0125x015625.nc"
+            HemcoDiagFile="/n/home00/xlwang/xlwang/Test_12km/gc_0125x015625_NA_47L_geosfp_CH4_emission/OutputDir/HEMCO_diagnostics.202205010000.nc"
+        else
+            LandCoverFile="${DataPath}/GEOS_${gridDir}/${metDir}/${constYr}/01/${Met}.${constYr}0101.CN.${gridFile}.${RegionID}.${LandCoverFileExtension}"
+            HemcoDiagFile="${DataPath}/HEMCO/CH4/v2023-04/HEMCO_SA_Output/HEMCO_sa_diagnostics.${gridFile}.20190101.nc"
+        fi
     else
         LandCoverFile="${DataPath}/GEOS_${gridDir}/${metDir}/${constYr}/01/${Met}.${constYr}0101.CN.${gridFile}.${LandCoverFileExtension}"
+        HemcoDiagFile="${DataPath}/HEMCO/CH4/v2023-04/HEMCO_SA_Output/HEMCO_sa_diagnostics.${gridFile}.20190101.nc"
     fi
-    HemcoDiagFile="${DataPath}/HEMCO/CH4/v2023-04/HEMCO_SA_Output/HEMCO_sa_diagnostics.${gridFile}.20190101.nc"
-	
+
     if "$isAWS"; then
         # Download land cover and HEMCO diagnostics files
         s3_lc_path="s3://gcgrid/GEOS_${gridDir}/${metDir}/${constYr}/01/${Met}.${constYr}0101.CN.${gridFile}.${RegionID}.${LandCoverFileExtension}"
diff --git a/src/components/template_component/template.sh b/src/components/template_component/template.sh
index 8aa7a00a..60b0c9ee 100644
--- a/src/components/template_component/template.sh
+++ b/src/components/template_component/template.sh
@@ -53,9 +53,11 @@ setup_template() {
 	else
 	    cmd="3\n${metNum}\n4\n1\n2\n${RunDirs}\n${runDir}\nn\n"
 	fi
+    elif [ "$Res" == "0.125x0.15625" ]; then
+        cmd="3\n${metNum}\n5\n4\n2\n${RunDirs}\n${runDir}\nn\n" #regional run
     else
 	printf "\nERROR: Grid resolution ${Res} is not supported by the IMI. "
-	printf "\n Options are 0.25x0.3125, 0.5x0.625, 2.0x2.5, or 4.0x5.0.\n"
+	printf "\n Options are 0.125x0.15625, 0.25x0.3125, 0.5x0.625, 2.0x2.5, or 4.0x5.0.\n"
 	exit 1
     fi
 
@@ -115,6 +117,15 @@ setup_template() {
 	sed -i "s/$OLD/$NEW/g" geoschem_config.yml
     fi
 
+    # Modify the METDIR for 0.125x0.15625 simulation
+    if [ "$Res" = "0.125x0.15625" ]; then
+        sed -i -e "s:GEOS_0.25x0.3125\/GEOS_FP:GEOS_0.25x0.3125_NA\/GEOS_FP:g" HEMCO_Config.rc.gmao_metfields_0125
+        OLD="/n/holyscratch01/external_repos/GEOS-CHEM/gcgrid/gcdata/ExtData/GEOS_0.125x0.15625/GEOS_FP"
+        NEW="/n/holylfs05/LABS/jacob_lab/Users/xlwang/methane_inversion/InputData/GEOS_0.125x0.15625_NA/GEOS_FP_DerivedWinds"
+        sed -i "s|$OLD|$NEW|g" HEMCO_Config.rc.gmao_metfields_0125
+        sed -i '/METDIR/d' HEMCO_Config.rc
+    fi
+    
     # Modify HEMCO_Config.rc based on settings in config.yml
     # Use cropped met fields (add the region to both METDIR and the met files)
     if "$isRegional"; then
diff --git a/src/inversion_scripts/imi_preview.py b/src/inversion_scripts/imi_preview.py
index 2d5e5457..72047e08 100755
--- a/src/inversion_scripts/imi_preview.py
+++ b/src/inversion_scripts/imi_preview.py
@@ -165,7 +165,9 @@ def imi_preview(
     ]
     inversion_area_km = calculate_area_in_km(coords)
 
-    if config["Res"] == "0.25x0.3125":
+    if config["Res"] == "0.125x0.15625":
+        res_factor = 2
+    elif config["Res"] == "0.25x0.3125":
         res_factor = 1
     elif config["Res"] == "0.5x0.625":
         res_factor = 0.5
@@ -492,7 +494,11 @@ def estimate_averaging_kernel(
 
     # Set resolution specific variables
     # L_native = Rough length scale of native state vector element [m]
-    if config["Res"] == "0.25x0.3125":
+    if config["Res"] == "0.125x0.15625":
+        L_native = 12 * 1000
+        lat_step = 0.125
+        lon_step = 0.15625
+    elif config["Res"] == "0.25x0.3125":
         L_native = 25 * 1000
         lat_step = 0.25
         lon_step = 0.3125
diff --git a/src/inversion_scripts/invert.py b/src/inversion_scripts/invert.py
index 6e49e923..1bcd48a2 100644
--- a/src/inversion_scripts/invert.py
+++ b/src/inversion_scripts/invert.py
@@ -56,8 +56,11 @@ def do_inversion(
     # Need to ignore data in the GEOS-Chem 3 3 3 3 buffer zone
     # Shave off one or two degrees of latitude/longitude from each side of the domain
     # ~1 degree if 0.25x0.3125 resolution, ~2 degrees if 0.5x0.6125 resolution
-    # This assumes 0.25x0.3125 and 0.5x0.625 simulations are always regional
-    if "0.25x0.3125" in res:
+    # This assumes 0.125x0.15625, 0.25x0.3125, and 0.5x0.625 simulations are always regional
+    if "0.125x0.15625" in res:
+        degx = 4 * 0.15625
+        degy = 4 * 0.125
+    elif "0.25x0.3125" in res:
         degx = 4 * 0.3125
         degy = 4 * 0.25
     elif "0.5x0.625" in res:
diff --git a/src/utilities/make_state_vector_file.py b/src/utilities/make_state_vector_file.py
index 525e31df..833daf50 100644
--- a/src/utilities/make_state_vector_file.py
+++ b/src/utilities/make_state_vector_file.py
@@ -131,16 +131,20 @@ def make_state_vector_file(
     lc = xr.load_dataset(land_cover_pth)
     hd = xr.load_dataset(hemco_diag_pth)
 
-    # Require hemco diags on same global grid as land cover map
-    # TODO remove this offset once the HEMCO standalone files 
-    # are regenerated with recent bugfix that corrects the offset
-    if config["Res"] == "0.25x0.3125":
-        hd["lon"] = hd["lon"] - 0.03125
-    elif config["Res"] == "0.5x0.625":
-        hd["lon"] = hd["lon"] - 0.0625
-
-    # Select / group fields together
-    lc = (lc["FRLAKE"] + lc["FRLAND"] + lc["FRLANDIC"]).drop("time").squeeze()
+    # Group together
+    if config['Res'] == '0.125x0.15625':
+        lc = lc["landseamask"] #100% = all water and 0% = all land
+        lc = np.round( -(lc/100.-1), decimals=5)
+    else:
+        # Require hemco diags on same global grid as land cover map
+        # TODO remove this offset once the HEMCO standalone files 
+        # are regenerated with recent bugfix that corrects the offset
+        if config["Res"] == "0.25x0.3125":
+            hd["lon"] = hd["lon"] - 0.03125
+        elif config["Res"] == "0.5x0.625":
+            hd["lon"] = hd["lon"] - 0.0625
+            lc = (lc["FRLAKE"] + lc["FRLAND"] + lc["FRLANDIC"]).drop("time").squeeze()
+
     hd = (hd["EmisCH4_Oil"] + hd["EmisCH4_Gas"]).drop("time").squeeze()
 
     # Check compatibility of region of interest
diff --git a/src/utilities/utils.py b/src/utilities/utils.py
index ea6e4ba3..7a8bf232 100644
--- a/src/utilities/utils.py
+++ b/src/utilities/utils.py
@@ -28,7 +28,10 @@ def download_landcover_files(config):
     elif config["Res"] == "0.25x0.3125":
         gridDir= "0.25x0.3125"
         gridFile= "025x03125"
-       
+    elif config["Res"] == "0.125x0.15625":
+        gridDir= "0.125x0.15625"
+        gridFile= "0125x015625"
+        
     if len(config["RegionID"]) == 2:
         LandCoverFile = f"{DataPath}/GEOS_{gridDir}_{config['RegionID']}/{metDir}/{constYr}/01/{config['Met']}.{constYr}0101.CN.{gridFile}.{config['RegionID']}.{LandCoverFileExtension}"
         s3_lc_path = f"s3://gcgrid/GEOS_{gridDir}_{config['RegionID']}/{metDir}/{constYr}/01/{config['Met']}.{constYr}0101.CN.{gridFile}.{config['RegionID']}.{LandCoverFileExtension}"
@@ -62,6 +65,8 @@ def download_hemcodiags_files(config):
         gridFile = "05x0625"
     elif config["Res"] == "0.25x0.3125":
         gridFile = "025x03125"
+    elif config["Res"] == "0.125x0.15625":
+        gridFile = "0125x015625"
 
     HemcoDiagFile = f"{DataPath}/HEMCO/CH4/v2023-04/HEMCO_SA_Output/HEMCO_sa_diagnostics.{gridFile}.20190101.nc"
     s3_hd_path = f"s3://gcgrid/HEMCO/CH4/v2023-04/HEMCO_SA_Output/HEMCO_sa_diagnostics.{gridFile}.20190101.nc"