U.S. Sen. Rob Portman (R-OH) on June 10 cosponsored bipartisan legislation to authorize the issuance of tax-exempt facility bonds for qualified carbon dioxide capture facilities.
“This bill is a win-win for jobs and the environment,” Sen. Portman said on Monday. “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.”
Sen. Portman introduced the Carbon Capture Improvement Act of 2019, S. 1763, with bill sponsor U.S. Sen. Michael Bennet (D-CO) to make it easier for power plants and industrial facilities to finance the purchase and installation of carbon capture, utilization and storage equipment, according to his office.
“While the prospects for large-scale carbon capture in the United States are promising, costs remain relatively high,” according to the bill’s text. “Lowering the financing costs for carbon dioxide capture projects would accelerate the deployment of this technology.”
If enacted, the bill would permit businesses to use tax-exempt private activity bonds (PABs) issued by local or state governments to finance carbon capture projects, according to a summary provided by Sen. Portman’s office, which noted that PABs can be paid back over a longer period of time.
If more than 65 percent of carbon dioxide emissions from a specific facility are captured and injected underground, then 100 percent of the eligible equipment can be financed with PABs, according to the summary. Tax-exempt financing is permitted on a prorated basis when less than 65 percent is captured and sequestered.
“This bipartisan measure is supported by business groups, energy groups and environmental groups alike and I urge all of my colleagues to support it,” said Sen. Portman.
S. 1763 has been referred for consideration to the U.S. Senate Finance Committee.