Bill Would Enable Carbon Capture And Storage Projects To Get Tax-Exempt Bonds
In a statement Senator Rob Portman (R-Ohio) announced last week that he and Sen. Michael Bennet (D-CO) introduced the Carbon Capture Improvement Act. The measure is designed to help industrial facilities and power plants fund the purchase and installation of equipment to aid in the capture and storage of carbon, which could then be either stored underground or used for Enhanced Oil Recovery. The measure would enable “businesses to use tax-exempt private activity bonds to finance the high upfront capital costs associated with installing carbon capture equipment” by enabling businesses to use private activity bonds from either state or local governments in order to finance the projects. These PABs are tax exempt. Commenting on the proposal, Sen. Portman said, “I’m pleased to introduce this bipartisan legislation that will have real environmental benefits, but also allow states like Ohio to continue to utilize our natural resources. We’ve developed a solution that will allow us to capture carbon, but also protect Ohio jobs. This is a commonsense idea and that’s why it’s supported by business groups, energy groups, and environmental groups alike. This is something that people on both sides of the aisle can get behind and I urge my colleagues to support this bill.” Meanwhile, Sen. Bennet said, “This bill would reduce one of the largest impediments to carbon capture technology. It is good for the economy and good for the environment.”
The New York Times reported that the measure draws upon an idea that “helped clean up air pollution in the 1970s and 1980s,” when utilities used these PABs to finance the installation of equipment including scrubbers. So far, there are just 15 large-scale CCS projects operating worldwide, according to the Global CCS Institute, and they can capture up to 28 million metric tons of CO2 in a year. However, this “is a small fraction of the four billion tons the International Energy Agency predicts will be needed by 2040, and the six billion tons by 2050, in order to achieve global climate goals.” Supporters of the Senate proposal “say it could go a long way toward helping meet those goals, as well as the emissions reductions required by the Obama administration’s Clean Power Plan.”
What This Means For Small Businesses
Small businesses bear the brunt of costs from emissions regulations that are part of the Obama Administration’s aggressive enforcement actions including the Clean Power Plan. Though this Senate bill may provide some relief to businesses looking to implement carbon capture and storage programs, it doesn’t help alleviate the financial burdens caused by the underlying regulations the EPA has put in place.
Additional Reading
Utility Dive also reported on the story.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.
