Curbelo, Veasey Introduce Bipartisan Carbon Capture Bill to Help Curb Climate Change Effects
The Carbon Capture Improvement Act would reduce greenhouse gas emissions by lowering the cost of carbon capture infrastructure
Today, Representatives Carlos Curbelo (FL-26) and Marc Veasey (TX-33) introduced bipartisan legislation to help in our nation’s fight against climate change by making carbon capture technology more attainable. The “Carbon Capture Improvement Act” would help power plants and industrial facilities finance the purchase and installation of carbon capture technology. The carbon that is captured can be used for Enhanced Oil Recovery (EOR) or stored underground rather than released into the atmosphere.
“Carbon capture technology is an innovative, common-sense solution that allows our nation to continue working towards more efficient sources of energy that better protect the environment,” Curbelo said. “By making it easier and more affordable for power plants and industrial facilities to invest in the infrastructure updates needed to make carbon capture possible, this bipartisan legislation would reduce the carbon emissions that are scientifically proven to hurt our environment while protecting and creating American jobs.”
“I’m pleased to introduce the Carbon Capture Improvement Act that has garnered bipartisan support because it addresses the financial obstacles of carbon capture and storage technology while protecting jobs and improving the environment,” said Veasey. “Capturing carbon dioxide improves energy security, boosts domestic energy production, and reduces emissions from power plants and industrial facilities to help keep our air clean. That’s a win-win solution for industry and our environment.”
The “Carbon Capture Improvement Act” allows businesses to use private activity bonds (PABs) issued by local or state governments to finance a carbon capture project. These bonds are beneficial to consumers and businesses because of their tax-exempt status and because they can be paid back over a longer period of time. If more than 65 percent of carbon dioxide emissions from a given facility are captured and injected underground, then 100 percent of the eligible equipment can be financed with PABs. If less than 65 percent is captured and sequestered, then tax-exempt financing is permitted on a pro-rated basis. This incentivizes a high rate of carbon capture.
Companion legislation was also introduced in the Senate by Senators Rob Portman (R-OH) and Michael Bennet (D-CO). Among the organizations supporting the bill are the North America's Building Trades Unions, the Natural Resources Defense Council, and the International Association of Sheet Metal, Air, Rail and Transportation Workers.
A PDF of the bill is available here.