WARNER, CAPITO INTRODUCE METHANE REDUCTION AND ECONOMIC GROWTH ACT

Bipartisan legislation would reduce air pollution and create jobs in mining communities

WASHINGTON – Today, U.S. Sens. Mark R. Warner (D-VA) and Shelley Moore Capito (R-WV) introduced 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 can 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.

“Capturing and repurposing methane from Virginia’s active and abandoned mines will have a significant impact in the Commonwealth and across the country,” Sen. Warner said. “This legislation will lead to new investment in methane capturing efforts, and will contribute meaningfully to efforts across the country to repurpose methane that otherwise would have harmful impacts when emitted into the atmosphere while at the same time boosting the economy and creating jobs.”

“Allowing methane capture efforts to be eligible for the 45Q Carbon Capture Utilization and Storage tax credit would result in positive environmental, economic, and investment impacts for West Virginia. I’m proud to help introduce this legislation, which could help capture and utilize mine methane emissions as a fuel source from coal mines, creating another step for West Virginia to continue leading in an ‘all-of-the-above’ energy approach,” Sen. Capito said.

Specifically, 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 credit 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.

The Methane Reduction and Economic Growth Act would give a boost to existing efforts in Virginia, which recently received more than $99 million in federal funding to capture and convert methane emissions from coal mines and landfills. Companion legislation has been introduced in the House of Representatives by Reps. Reps. Carol Miller (R-WV) and Terri Sewell (D-AL).

“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,” Cecil Roberts, International President of the United Mine Workers of America, said. “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.”