Carbon Capture Improvement Act included in the Infrastructure Investment and Jobs Act
The Carbon Capture Improvement Act, sponsored by U.S. Sens. Rob Portman (R-OH) and Michael Bennet (D-CO), has been included in the Infrastructure Investment and Jobs Act.
The Carbon Capture Improvement Act would allow power plants and industrial facilities to finance the purchase and installation of carbon capture, utilization, and storage equipment, as well as direct air capture projects, through private activity bonds (PABs).
“Carbon capture and direct air capture are two common-sense technologies that will allow states like Ohio to continue to utilize our natural resources while protecting our environment at the same time,” Portman said. “This bipartisan agreement takes significant steps to help industry adopt these key technologies which will make our infrastructure more resilient and environmentally friendly.”
Carbon capture removes carbon dioxide from the emissions stream at a power plant or industrial facility while direct air capture is an emerging technology that removes carbon dioxide directly from the atmosphere. These are vitally important to carbon emissions reduction; however, they are expensive to deploy at large-scale facilities, costing upwards of $1 billion. By authorizing private activity bond financing, this bill will encourage commercial deployment.
“Reducing carbon pollution while creating good-paying jobs is something Democrats, Republicans, labor unions, industry, and environmentalists can all get behind,” Bennet said. “Our bipartisan legislation would help reduce carbon pollution by making it more cost-effective to invest in carbon capture equipment. This is a significant step to ensure we are boosting Colorado’s clean energy economy, rewarding innovation, and keeping our air clean while addressing the threat of climate change.”
