Financing Carbon Capture

May 26, 2021

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by Matthew Choi (Politico's Morning Energy) Sens. Michael Bennet (D-Colo.) and Rob Portman (R-Ohio) are introducing legislation today that would help businesses finance carbon capture technology at power plants and other industrial facilities, and seek to give a boost to direct air capture. The bill, dubbed the Carbon Capture Improvement Act, would also open up tax-exempt state and local government private activity bonds to pay for carbon capture projects.

If more than 65 percent of CO2 emissions are captured by a given project, then all of the eligible equipment could be financed with the bonds under the new bill. This bond funding can also be done on a prorated basis for facilities that fall under that 65 percent threshold. Read the legislation here.

Meanwhile in the House, Rep. Tim Ryan (D-Ohio) led a bipartisan effort this week to bolster 45Q tax credits for carbon capture with the Coordinated Action to Capture Harmful Emissions Act, unveiled Tuesday. The bill would increase tax credits for carbon capture by power plants and other industrial facilities, and eliminate CO2 capture thresholds for those facilities and for direct air capture projects. READ MORE

DAC ON DECK: (Politico's Morning Energy)

Carbon credit could help US meet climate goals: study (Argus Media)

Excerpt from Politico's Morning Energy: DAC ON DECK: Sen. John Hickenlooper (D-Colo.) is joining the Bipartisan Policy Center to discuss the federal government’s role in advancing direct air capture at a panel today. The event accompanies a series of policy recommendations released today by BPC’s Direct Air Capture Advisory Council for financing, developing and deploying DAC, citing several bills currently under consideration. Read their report here.

MEANWHILE: Reps. Kurt Schrader (D-Ore.) and David McKinley (R-W.Va.) are introducing bipartisan legislation today (June 24, 2021) to invest in energy innovation, including carbon removal, advanced nuclear power, renewable energy, efficiency and storage. Take a look at the Clean Energy Future through Innovation Act with a section-by-section breakdown here. The pair introduced an earlier iteration last Congress, with support from a host of industry groups. READ MORE