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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5167 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5167

To amend section 45Q of the Internal Revenue Code of 1986 to establish 
               the mine methane capture incentive credit.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 25, 2024

Mr. Warner (for himself and Mrs. Capito) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 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) subsection (a)(4) shall be applied as 
                        if it read as follows:
            ```(4) the applicable dollar amount (as determined under 
        subsection (b)(1)) per metric ton of CO<INF>2</INF>e (as 
        defined in section 45Z(d)(2)) of qualified methane which is--
                    ```(A) captured by the taxpayer using methane 
                capture equipment which is originally placed in service 
                at a qualified facility on or after the date of the 
                enactment of the Bipartisan Budget Act of 2018, during 
                the 12-year period beginning on the date the equipment 
                was originally placed in service, and
                    ```(B)(i) either--
                            ```(I) injected by the taxpayer for energy 
                        use--
                                    ```(aa) in a pipeline which--
                                            ```(AA) satisfies the 
                                        pipeline integrity management 
                                        guidelines under part 192 of 
                                        title 49, Code of Federal 
                                        Regulations, and
                                            ```(BB) is in compliance 
                                        with instrumental leak 
                                        monitoring and other preventive 
                                        and mitigative measures under 
                                        section 192.935 of such title, 
                                        or
                                    ```(bb) in a gathering system that 
                                feeds a pipeline described in item 
                                (aa), or
                            ```(II) otherwise used for producing heat 
                        (for industrial use or to heat a structure) or 
                        energy,
                        in a manner that does not involve more than de 
                        minimis release of methane into the 
                        atmosphere.',
                            ``(ii) for purposes of subsection (d), the 
                        term `qualified facility' means any mining 
                        facility--
                                    ``(I) the construction of which 
                                begins before January 1, 2033,
                                    ``(II) for which construction of 
                                methane capture equipment begins before 
                                such date, and
                                    ``(III) which captures not less 
                                than 2,500 metric tons of methane 
                                during the taxable year, and
                            ``(iii) for purposes of subsections (b)(2), 
                        (f)(1), (f)(4), (h), and (i), such subsections 
                        shall be applied--
                                    ``(I) by substituting `methane 
                                capture' for `carbon capture' each 
                                place such term appears, and
                                    ``(II) by substituting `qualified 
                                methane' for `qualified carbon oxide' 
                                each place such term appears.
                    ``(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 an 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 amendment made by this section shall apply 
to qualified methane captured after December 31, 2023.
                                 <all>
```