WASHINGTON, D.C. — U.S. Senators Shelley Moore Capito (R-W.Va.) and Mark Warner (D-Va.) recently reintroduced the Methane Reduction and Economic Growth Act, legislation to create a tax credit that will incentivize the capture and repurposing of methane emissions from active and abandoned mines.

“I’m proud to help reintroduce the Methane Reduction and Economic Growth Act, which will help capture and utilize mine methane emissions as a fuel source from coal mines. This legislation will result in positive environmental and economic impacts, and create another step for West Virginia to continue to lead the nation in an ‘all-of-the-above’ energy approach,” Senator Capito said.

“This legislation takes a critical step in boosting Virginia’s efforts to address the harmful impact of methane when emitted into the atmosphere while simultaneously creating good-paying jobs and supporting economic growth,” Senator Warner said. “By incentivizing the reduction of methane emissions, we’re not only protecting the environment but also strengthening our energy independence, I’m proud to reintroduce this legislation.”

BACKGROUND:

The Methane Reduction and Economic Growth Act would amend Section 45Q of the Internal Revenue Code – which houses an existing tax credit for carbon capture and sequestration – to create a Mine Methane Capture Incentive Credit. The new credit would be attributed to taxpayers based on the amount of qualified methane that is captured and injected into a pipeline or is otherwise used for producing heat or energy. Qualified methane includes methane which:

  • Is captured from mining activities, including underground mines, abandoned or closed mines, or surface mines;
  • Would otherwise be released into the atmosphere as industrial greenhouse gas emission; and
  • Is measured at the source of capture and verified at the point of injection or utilization.

A copy of the bill text can be found here.

 

# # #