Sens. Portman, Bennet introduce legislation to help finance carbon capture and storage projects

U.S. Senators Rob Portman (R-OH) and Michael Bennet (D-CO) introduced legislation this week to help businesses finance carbon capture and storage projects.

The Carbon Capture Improvement Act would enable businesses to use private activity bonds (PABs) issued by local or state governments to purchase carbon capture and storage equipment.

If over 65 percent of carbon dioxide emissions from a facility are captured and injected underground, 100 percent of carbon capture equipment can be purchased using PABs, which are tax-exempt and can be repaid over a relatively long period of time. If less than 65 percent is captured and stored, tax-exempt financing is allowed on a pro-rated basis.

“This bill is a win-win for jobs and the environment,” Portman said. “Carbon capture is a common-sense solution that will allow states like Ohio to continue to utilize our natural resources while protecting our environment at the same time. This bipartisan measure is supported by business groups, energy groups, and environmental groups alike, and I urge all of my colleagues to support it.”

The bill would also help make Enhanced Oil Recovery with recycled carbon dioxide more feasible by provide financing for the necessary equipment.

Various industry groups have voiced support for the legislation.

“We’ve seen bipartisan support for incentivizing carbon capture infrastructure because it’s a practical way to create skilled jobs and protect the environment,” Bob Perciasepe, president of the Center for Climate and Energy Solutions, said. “Leadership in carbon capture technologies also gives the United States a first-mover advantage in a globally important market.”