I 
113TH CONGRESS 
1ST SESSION H. R. 3424 
To amend the Internal Revenue Code of 1986 to allow a credit against 
income tax for facilities using a qualified methane conversion technology 
to provide transportation fuels and chemicals. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 30, 2013 
Mr. LARSON of Connecticut introduced the following bill; which was referred 
to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow a 
credit against income tax for facilities using a qualified 
methane conversion technology to provide transportation 
fuels and chemicals. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Converting Methane 
Into Petroleum Act of 2013’’. 
VerDate Mar 15 2010 
00:39 Nov 07, 2013
Jkt 039200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H3424.IH
H3424
tjames on DSK6SPTVN1PROD with BILLS
SEC. 2. INCENTIVES FOR INNOVATIVE FUEL PRODUCTION 
THROUGH QUALIFIED METHANE CONVER-
SION TECHNOLOGY. 
(a) INCLUSION OF QUALIFIED METHANE CONVER-
SION TECHNOLOGY IN GASIFICATION PROJECT CREDIT.— 
(1) IN
GENERAL.—Paragraph (2) of section 
48B(c) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(2) GASIFICATION
TECHNOLOGY.—The term 
‘gasification technology’ means— 
‘‘(A) any process which converts a solid or 
liquid product from coal, petroleum residue, 
biomass, or other materials which are recovered 
for their energy or feedstock value into a syn-
thesis gas composed primarily of carbon mon-
oxide and hydrogen for direct use or subsequent 
chemical or physical conversion, and 
‘‘(B) any qualified methane conversion 
technology.’’. 
(2) QUALIFIED METHANE CONVERSION TECH-
NOLOGY.—Subsection (c) of section 48B of such 
Code is amended by adding at the end the following 
new paragraph: 
‘‘(9) QUALIFIED METHANE CONVERSION TECH-
NOLOGY.— 
VerDate Mar 15 2010 
00:39 Nov 07, 2013
Jkt 039200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H3424.IH
H3424
tjames on DSK6SPTVN1PROD with BILLS
‘‘(A) IN
GENERAL.—The term ‘qualified 
methane conversion technology’ means a proc-
ess consisting of the molecular conversion of 
methane into hydrocarbons, and the subsequent 
use of such hydrocarbons, if such hydrocarbons 
are principally intended to be used— 
‘‘(i) to replace or reduce the quantity 
of petroleum present in a fuel used in 
motor vehicles, motor vehicle engines, 
nonroad vehicles, nonroad engines, or air-
craft if— 
‘‘(I) the lifecycle greenhouse gas 
emissions associated with the produc-
tion and combustion is, on an ongoing 
basis, not more than such emissions 
from the equivalent conventional fuel 
produced from conventional petroleum 
sources, 
‘‘(II) the sulfur concentration is 
not more than 2 parts per million, 
and 
‘‘(III) such production is at a fa-
cility which, during the taxable year, 
has an annual total production capac-
VerDate Mar 15 2010 
00:39 Nov 07, 2013
Jkt 039200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H3424.IH
H3424
tjames on DSK6SPTVN1PROD with BILLS
ity of not more than 150,000,000 gal-
lons of liquid transportation fuel, or 
‘‘(ii) for the production of chemicals 
(within the meaning of paragraph (7)(A)). 
‘‘(B) PRIMARY PURPOSE OF FACILITY.—If 
a facility uses qualified methane conversion 
technology to produce both fuels and chemicals, 
the requirements described in subparagraph 
(A)(i) shall apply only if the primary use of the 
facility is to produce fuels. 
‘‘(C) EXCLUSION.—The term ‘qualified 
methane conversion technology’ does not include 
technology that is part of a facility the con-
struction of which begins after September 30, 
2024.’’. 
(3) INCREASE
IN
CREDIT
AVAILABLE
FOR 
METHANE CONVERSION PROJECTS.— 
(A) IN GENERAL.—Paragraph (1) of sec-
tion 48B(d) of such Code is amended by strik-
ing ‘‘plus’’ at the end of subparagraph (A), by 
striking the period at the end of subparagraph 
(B) and inserting ‘‘, plus’’, and by adding at 
the end the following new subparagraph: 
VerDate Mar 15 2010 
00:39 Nov 07, 2013
Jkt 039200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H3424.IH
H3424
tjames on DSK6SPTVN1PROD with BILLS