[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3982 Introduced in House (IH)]

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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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Methane Reduction and Economic 
Growth Act''.

SEC. 2. MINE METHANE CAPTURE INCENTIVE CREDIT.

    (a) In General.--Section 45Q(f) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new paragraph:
            ``(10) Methane capture.--
                    ``(A) In general.--In the case of qualified 
                methane--
                            ``(i) paragraph (4) of subsection (a) shall 
                        be applied--
                                    ``(I) by substituting `per metric 
                                ton of CO2e (as defined in section 
                                45Z(d)(2)) of qualified methane' for 
                                `per metric ton of qualified carbon 
                                oxide',
                                    ``(II) by substituting `methane 
                                capture equipment' for `carbon capture 
                                equipment', and
                                    ``(III) in subparagraph (B)(i), by 
                                substituting `either--
                                    ```(I) injected by the taxpayer for 
                                energy use--
                                            ```(aa) in a pipeline which 
                                        satisfies the pipeline 
                                        integrity management guidelines 
                                        of section 192 of title 49, 
                                        Code of Federal Regulations, 
                                        and is in compliance with 
                                        instrumental leak monitoring 
                                        and other preventive and 
                                        mitigative measures under 
                                        section 192.935 of title 49, 
                                        Code of Federal Regulations, or
                                            ```(bb) in a gathering 
                                        system that feeds a pipeline 
                                        described in item (aa), or
                                    ```(II) otherwise used for 
                                producing heat or energy,
                        in a manner that does not involve more than de-
                        minimis release of methane into the atmosphere' 
                        for `used by the taxpayer as a tertiary 
                        injectant in a qualified enhanced oil or 
                        natural gas recovery project and disposed of by 
                        the taxpayer in secure geological storage',
                            ``(ii) the term `qualified facility' shall 
                        mean any mining facility, the construction of 
                        which begins before January 1, 2033, and where 
                        the construction of methane capture equipment 
                        begins before such date, and which captures not 
                        less than 2,500 metric tons of methane during 
                        the taxable year, and
                            ``(iii) this section shall be applied by 
                        substituting `methane capture' for `carbon 
                        capture' and `qualified methane' for `qualified 
                        carbon oxide' oxide' in subsections (b)(2)(B), 
                        (f)(1)(F)(4), (h), (i), and otherwise as 
                        determined by the Secretary.
                    ``(B) Qualified methane defined.--For purposes of 
                this paragraph, the term `qualified methane' means any 
                methane which--
                            ``(i) is captured from mining activities, 
                        including underground mines, abandoned or 
                        closed mines, or surface mines, by methane 
                        capture equipment,
                            ``(ii) would otherwise be released into the 
                        atmosphere as industrial emission of greenhouse 
                        gas or lead to such release, and
                            ``(iii) is measured at the source of 
                        capture and verified at the point of injection 
                        or utilization.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to qualified methane captured after December 31, 2022.
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