Leaders in Congress and across business and labor urge DOE and Treasury to reflect actual coal mine methane management practices and clarify pipeline delivery eligibility.
WASHINGTON — A diverse coalition of leaders in the U.S. Congress along with a unique partnership between business and labor groups are urging the Department of Energy (DOE ) and Department of the Treasury to make targeted updates to the treatment of coal mine methane (CMM) under the Section 45Z Clean Fuel Production Tax Credit.
The Waste Gas Capture Initiative (WGCI) applauds Senators Dave McCormick (R-PA) and Jim Justice (R-WV) and Representatives Guy Reschenthaler (R-PA-14), Morgan Griffith (R-VA-9), Mike Kelly (R-PA-16), Mike Carey (R-OH-15), and Darin LaHood (R-IL-16), as well as the Pittsburgh Regional Alliance and Pittsburgh Regional Building Trades Council, for calling on DOE and Treasury to accurately address coal mine methane management practices and provide greater clarity for pipeline delivery in the final 45Z rule.
In two separate letters to Energy Secretary Chris Wright and Treasury Secretary Scott Bessent, the lawmakers and the business and labor groups are urging DOE to ensure the final rule reflects actual methane management practices supported by government data. They also called on Treasury to provide a clear pathway for CMM used as a process fuel when delivered through common-carrier pipelines.
“Releasing methane directly into the atmosphere and burning it off are two very different things, with different consequences for emissions; federal tax calculations should recognize that basic fact. Getting the math right can unlock investment in capturing wasted gas, strengthen American energy security, and support good-paying jobs in coal communities, all while reducing methane emissions,” said Mike Moore, Executive Director of the WGCI. “As America faces unprecedented energy demand, we applaud leaders in Congress and across business and labor for urging DOE and Treasury to make this commonsense change to unlock America’s energy dominance potential.”
In their letter, the members of Congress underscore the need for certainty, writing: “Taking these steps now would provide the certainty needed to move projects forward, attract investment, and ensure American coal communities can fully realize these benefits.”
The Pittsburgh Regional Alliance and Pittsburgh Regional Building Trades Council similarly emphasize the economic stakes, writing in their letter that “the treatment of CMM under Section 45Z is not merely a technical modeling question.” Their letter cites an economic impact analysis finding that a corrected GREET model and pipeline-delivery-enabled scenario could generate more than $2.6 billion in total economic output and more than $1.6 billion in value added to Pennsylvania’s economy over the development period, while supporting more than 5,000 direct construction jobs and approximately 4,700 additional indirect and induced jobs.
The letters also point to the gap between the current 45ZCF-GREET model, which assumes CMM is flared, and EPA data showing that a significant portion is vented. They urge DOE and Treasury to reflect actual venting and flaring practices in the final rule and provide timely guidance for CMM delivered through common-carrier pipelines.
Read the congressional letter here.
Read the Pittsburgh Regional Alliance and Pittsburgh Regional Building Trades Council letter here.
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The Waste Gas Capture Initiative is an alliance of energy leaders, experts, and companies focused on promoting the capture and beneficial use of methane from active and abandoned coal mines. WGCI works to advance policies that recognize remediated mine gas as a valuable domestic energy resource capable of supporting economic growth, strengthening U.S. energy security, creating good-paying jobs in coal communities, and reducing methane emissions.