Methane Reduction and Economic Growth Act

“(10) Methane capture

“(A) In general—In the case of qualified methane—

“(i) paragraph (4) of subsection (a) shall be applied—

“(I) by substituting “per metric ton of CO2e (as defined in section 45Z(d)(2)) of qualified methane” for “per metric ton of qualified carbon oxide”,

“(II) by substituting “methane capture equipment” for “carbon capture equipment”, and

“(III) by applying the following in lieu of subparagraph (B) thereof:

“(ii) the term “qualified facility” shall mean any individual source of qualified methane such as borehole, well, or vent shaft constructed at a mining facility—

“(I) the construction of which begins before January 1, 2036,

“(II) for which construction of methane capture equipment begins before such date, and

“(III) which captures not less than 2,500 metric tons of CO2e methane during the taxable year, and

“(iii) this section shall be applied by substituting “methane capture” for “carbon capture” and “qualified methane” for “qualified carbon oxide” in subsections (b)(2), (f)(1), (f)(4), (h), and (i)(1).

“(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 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.

“(C) Methane capture equipment defined—For purposes of this paragraph, the term ‘methane capture equipment’ means equipment built to connect a qualified facility to—

“(i) a preexisting or new pipeline system, or

“(ii) to energy generation equipment, to capture qualified methane from such source.”