Methane Reduction and Economic Growth Act

I 118TH CONGRESS 1ST SESSION H. R. 3982 To amend section 45Q of the Internal Revenue Code of 1986 to establish the mine methane capture incentive credit. IN THE HOUSE OF REPRESENTATIVES JUNE 9, 2023 Mrs. MILLER of West Virginia (for herself, Ms. SEWELL, Mr. RESCHENTHALER, and Mr. DELUZIO) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend section 45Q of the Internal Revenue Code of 1986 to establish the mine methane capture incentive credit. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Methane Reduction 4 and Economic Growth Act’’. 5 SEC. 2. MINE METHANE CAPTURE INCENTIVE CREDIT. 6 (a) IN GENERAL.—Section 45Q(f) of the Internal 7 Revenue Code of 1986 is amended by adding at the end 8 the following new paragraph: 9 ‘‘(10) METHANE CAPTURE.— 10 VerDate Sep 11 2014 04:44 Jul 08, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3982.IH H3982 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3982 IH ‘‘(A) IN GENERAL.—In the case of quali- 1 fied methane— 2 ‘‘(i) paragraph (4) of subsection (a) 3 shall be applied— 4 ‘‘(I) by substituting ‘per metric 5 ton of CO2e (as defined in section 6 45Z(d)(2)) of qualified methane’ for 7 ‘per metric ton of qualified carbon 8 oxide’, 9 ‘‘(II) by substituting ‘methane 10 capture equipment’ for ‘carbon cap- 11 ture equipment’, and 12 ‘‘(III) in subparagraph (B)(i), by 13 substituting ‘either— 14 ‘‘ ‘(I) injected by the taxpayer for 15 energy use— 16 ‘‘ ‘(aa) in a pipeline which 17 satisfies the pipeline integrity 18 management guidelines of section 19 192 of title 49, Code of Federal 20 Regulations, and is in compliance 21 with instrumental leak moni- 22 toring and other preventive and 23 mitigative measures under sec- 24 VerDate Sep 11 2014 04:44 Jul 08, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3982.IH H3982 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 3982 IH tion 192.935 of title 49, Code of 1 Federal Regulations, or 2 ‘‘ ‘(bb) in a gathering system 3 that feeds a pipeline described in 4 item (aa), or 5 ‘‘ ‘(II) otherwise used for pro- 6 ducing heat or energy, 7 in a manner that does not involve more 8 than de-minimis release of methane into 9 the atmosphere’ for ‘used by the taxpayer 10 as a tertiary injectant in a qualified en- 11 hanced oil or natural gas recovery project 12 and disposed of by the taxpayer in secure 13 geological storage’, 14 ‘‘(ii) the term ‘qualified facility’ shall 15 mean any mining facility, the construction 16 of which begins before January 1, 2033, 17 and where the construction of methane 18 capture equipment begins before such date, 19 and which captures not less than 2,500 20 metric tons of methane during the taxable 21 year, and 22 ‘‘(iii) this section shall be applied by 23 substituting ‘methane capture’ for ‘carbon 24 capture’ and ‘qualified methane’ for ‘quali- 25 VerDate Sep 11 2014 04:44 Jul 08, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3982.IH H3982 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 3982 IH fied carbon oxide’ oxide’ in subsections 1 (b)(2)(B), (f)(1)(F)(4), (h), (i), and other- 2 wise as determined by the Secretary. 3 ‘‘(B) QUALIFIED METHANE DEFINED.— 4 For purposes of this paragraph, the term 5 ‘qualified methane’ means any methane 6 which— 7 ‘‘(i) is captured from mining activi- 8 ties, including underground mines, aban- 9 doned or closed mines, or surface mines, 10 by methane capture equipment, 11 ‘‘(ii) would otherwise be released into 12 the atmosphere as industrial emission of 13 greenhouse gas or lead to such release, and 14 ‘‘(iii) is measured at the source of 15 capture and verified at the point of injec- 16 tion or utilization.’’. 17 (b) EFFECTIVE DATE.—The amendments made by 18 this section shall apply to qualified methane captured after 19 December 31, 2022. 20 Æ VerDate Sep 11 2014 04:44 Jul 08, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H3982.IH H3982 kjohnson on DSK79L0C42PROD with BILLS