WASHINGTON – Today, U.S. Sens. Mark R. Warner (D-VA) and Shelley Moore Capito (R-WV) reintroduced legislation to create a tax credit that will incentivize the capture and repurposing of methane emissions from active and abandoned mines. Methane is a greenhouse gas that is 28 times more potent than carbon dioxide, and coal mines are the country’s fifth-largest source of methane emissions. Leveraging methane capture technology would not only prevent harmful emissions from entering our atmosphere, but also allow the gas to be converted or reused for productive use, providing an additional supply of lower-emission energy that has numerous industrial and commercial applications.

“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,” said Sen. Warner. “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.”

“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,” Sen. Capito said.

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.

Sen. Warner has been a leader on efforts to clean up and reclaim abandoned mine lands (AML) in Virginia, including by securing funding for this process through the bipartisan infrastructure law he helped to negotiate. Companion legislation has been introduced in the House of Representatives by U.S. Reps. Carol Miller (R-WV) and Terri Sewell (D-AL), along with Reps. Morgan Griffith (R-VA), Chris Deluzio (D-PA), Guy Reschenthaler (R-PA), and Darin LaHood (R-IL).

“Finding ways to incentivize the capture of mine methane will have a positive impact here in Virginia,” Jonathan Belcher, Executive Director of the Virginia Coalfield Economic Development Authority, said. “Encouraging beneficial use of methane, which would otherwise be wasted and emitted into the atmosphere, stimulates our economy by creating jobs in our local communities and improves our tax base, while reducing emissions both at a local and global level. Captured methane can be sold into existing marketplaces to help drive down costs for consumers and can be used as both a fuel source and a manufacturing feedstock, which will assist our existing industry and encourage new economic development in the region. We applaud Senator Warner for his leadership on this issue and his focus on the economic health of Southwest Virginia.”

“This is a perfect example of how Washington ought to work,” said Cecil Roberts, International President of the United Mine Workers of America. “This is strong bi-partisan legislation that will grow coalfield jobs, support coalfield communities and help reduce methane emissions. It is a win-win for workers and communities in Virginia and across Appalachia and I thank Senators Warner and Capito for taking the lead. The UMWA wholeheartedly supports this legislation and will work to secure its passage.” 

A copy of the bill text can be found here.

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