Methane Reduction and Growth Act

Summary#

This bill adds a new tax credit for capturing methane released by mining activities. It changes rules in section 45Q of the tax code so that a credit applies per metric ton of CO2-equivalent (CO2e) of qualified methane captured. "Qualified methane" must be captured from mining activities (including underground, abandoned, closed, or surface mines), would otherwise be released to the atmosphere, and must be measured at the capture source and verified at the point of injection or use.

The bill defines a "qualified facility" as an individual source (for example, a borehole, well, or vent shaft) at a mining site where construction begins before January 1, 2036, methane capture equipment construction also begins before that date, and the facility captures at least 2,500 metric tons CO2e of methane in the taxable year. The captured methane must be injected into a pipeline that meets the pipeline integrity rules in 49 C.F.R. part 192 and leak-monitoring rules at 192.935, into a gathering system that feeds such a pipeline, or otherwise used to produce heat or other energy with no more than de-minimis methane release.

The changes apply to qualified methane captured after December 31, 2024.

What it means for you#

• Mining operators can qualify for a tax credit when they capture methane from mine sources and either inject it into compliant pipelines or use it for energy with minimal emissions.
• To qualify, a facility must meet construction date limits and capture thresholds (at least 2,500 metric tons CO2e in a taxable year).
• Captured methane must be measured at the source and verified at injection or use.
• Pipelines used for injection must meet specific federal pipeline integrity and leak-monitoring rules.

Expenses#

No publicly available information regarding the bill's costs, revenue effects, or budget estimates is included in the provided text.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.