,i #aacth ,,congress #ast ,session ,h4 ,r4 #cdbd ,,in ,,the ,,house ,,of ,,representatives ,october #cj1 #bjac,mr4 ,larson of ,connecticut introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to allow a credit against income tax for facilities using a qualified methane conversion technology to provide transportation fuels and chemicals4 #a4 ,short title ,this ,act may be cited as the ,converting ,methane ,into ,petroleum ,act of #bjac4 #b4 ,incentives for innovative fuel production through qualified methane conversion technology 7a7 ,inclusion of qualified methane conversion technology in gasification project credit 7#a7 ,in general ,paragraph 7#b7 of section #dh;,b7c7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#b7 ,gasification technology ,the term gasification technology means-- 7,a7 any process which converts a solid or liquid product from coal1 petroleum residue1 biomass1 or other materials which are recovered for their energy or feedstock value into a synthesis gas composed primarily of carbon monoxide and hydrogen for direct use or subsequent chemical or physical conversion1 and 7,b7 any qualified methane conversion technology4 4 7#b7 ,qualified methane conversion technology ,subsection 7c7 of section #dh;,b of such ,code is amended by adding at the end the following new paragraph3 7#i7 ,qualified methane conversion technology 7,a7 ,in general ,the term qualified methane conversion technology means a process consisting of the molecular conversion of methane into hydrocarbons1 and the subsequent use of such hydrocarbons1 if such hydrocarbons are principally intended to be used-- 7i7 to replace or reduce the quantity of petroleum present in a fuel used in motor vehicles1 motor vehicle engines1 nonroad vehicles1 nonroad engines1 or aircraft if-- 7,i7 the lifecycle greenhouse gas emissions associated with the production and combustion is1 on an ongoing basis1 not more than such emissions from the equivalent conventional fuel produced from conventional petroleum sources1 7,,ii7 the sulfur concentration is not more than #b parts per million1 and 7,,iii7 such production is at a facility which1 during the taxable year1 has an annual total production capacity of not more than #aej1jjj1jjj gallons of liquid transportation fuel1 or 7ii7 for the production of chemicals 7within the meaning of paragraph 7#g77;,a774 7,b7 ,primary purpose of facility ,if a facility uses qualified methane conversion technology to produce both fuels and chemicals1 the requirements described in subparagraph 7,a77i7 shall apply only if the primary use of the facility is to produce fuels4 7,c7 ,exclusion ,the term qualified methane conversion technology does not include technology that is part of a facility the construction of which begins after ,september #cj1 #bjbd4 4 7#c7 ,increase in credit available for methane conversion projects 7,a7 ,in general ,paragraph 7#a7 of section #dh;,b7d7 of such ,code is amended by striking plus at the end of subparagraph 7,a71 by striking the period at the end of subparagraph 7,b7 and inserting 1 plus1 and by adding at the end the following new subparagraph3 7,c7 #ejj1jjj1jjj for qualifying gasification projects that rely primarily on qualified methane conversion technology4 ,no qualifying gasification project shall receive more than #ajj1jjj1jjj under the program4 4 7,b7 ,period of issuance ,paragraph 7#b7 of section #dh;,b7d7 of such ,code is amended to read as follows3 7#b7 ,period of issuance 7,a7 ,in general ,a certificate of eligibility under subparagraphs 7,a7 and 7,b7 of paragraph 7#a7 may be issued only before ,october #a1 #bjbd4 7,b7 ,qualified methane conversion technology ,a certificate of eligibility under subparagraph 7,c7 of paragraph 7#a7 may be issued only during the #aj-;fiscal year period beginning on the first ,october #a which is on or after the date of the enactment of this paragraph4 4 7,c7 ,selection priorities ,paragraph 7#d7 of section #dh;,b7d7 of such ,code is amended to read as follows3 7#d7 ,selection priorities 7,a7 ,in general ,in determining which qualifying gasification projects1 other than projects using qualified methane conversion technology1 to certify under this section1 the ,secretary shall-- 7i7 give highest priority to projects with the greatest separation and sequestration percentage of total carbon dioxide emissions1 and 7ii7 give high priority to applicant participants who have a research partnership with an eligible educational institution 7as defined in section #ebi7;e77#e774 7,b7 ,chemicals projects using qualified methane conversion technology ,in determining which qualifying gasification projects that produce chemicals using qualified methane conversion technology to certify under this section1 the ,secretary shall give priority to projects involving a production process that has significant environmental benefits over the production of the same chemical from petroleum products4 4 7b7 ,inclusion of qualified methane conversion technology in alternative fuel credit ,paragraph 7#b7 of section #fdbf7;d7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of subparagraph 7,f71 by striking the period at the end of subparagraph 7,g7 and inserting 1 and1 and by adding at the end the following new subparagraph3 7,h7 liquid fuel produced through qualified methane conversion technology 7as defined in section #dh;,b7c77#i77;,a77 at a facility the construction of which begins before ,october #a1 #bjbd4 4 7c7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act4