Coalition Statement on the Introduction of the Carbon Capture Improvement Act of 2021
May 26, 2021 | Legislation
The Carbon Capture Coalition issued a statement today regarding the Carbon Capture Improvement Act of 2021, introduced by U.S. Senators Michael Bennet (D-CO) and Rob Portman (R-OH). The following statement can be attributed to Coalition External Affairs Manager Madelyn Morrison:
“The Carbon Capture Coalition commends Senators Bennet and Portman for their leadership on the introduction of the Carbon Capture Improvement Act of 2021— bipartisan legislation that would authorize the use of tax-exempt private activity bonds (PABs) to help finance the purchase of carbon capture retrofit equipment for installation at power plants and industrial facilities, a key recommendation outlined in the Carbon Capture Coalition’s 2021 Federal Policy Blueprint.
“Carbon capture projects are capital intensive and typically require long periods of time to develop and construct, which increases financial risk for project developers and private investors. PABs are a well-developed financial instrument that has proven successful over decades in reducing the cost of financing for a broad range of private infrastructure projects that provide significant public benefits. By providing access to tax-exempt bonds that can be paid back over a longer timeframe, this legislation provides an important tool for reducing the cost of capital for carbon capture projects at industrial facilities and power plants.
“Federal financial incentives beyond the Section 45Q tax credit often either exclude carbon capture projects or require technical modifications to allow projects to qualify. Expanding the suite of financing mechanisms available to carbon capture, direct air capture and carbon utilization projects will make additional private capital available on more favorable terms, thus increasing future deployment and emissions reduction potential.
“The Carbon Capture Improvement Act of 2021 is the latest piece of bipartisan legislation introduced this Congress that aims to bolster federal efforts to accelerate the economywide deployment of carbon capture technologies and meet our collective midcentury climate goals. Together, if enacted, these complementary efforts will enable the scaling up of private investment in critical carbon capture technology in the marketplace and put America firmly on a path toward reaching net-zero emissions reductions.”
The Carbon Capture Coalition is a nonpartisan collaboration of more than 80 businesses and organizations building federal policy support for economywide deployment of carbon capture, removal, transport, utilization, and storage. Our mission is to reduce carbon emissions to meet midcentury climate goals, foster domestic energy and industrial production, and support a high-wage jobs base through the adoption of carbon capture technologies. Convened by the Great Plains Institute, Coalition membership includes industry, energy, and technology companies; energy and industrial labor unions; and conservation, environmental, and energy policy organizations.
Statements on the Bill from Supportive Organizations
Michele Stockwell, Executive Director, BPC Action
“Carbon capture, including direct air capture, will be critical in reducing emissions, yet existing financing structures are insufficient for deployment at scale. BPC Action applauds Sens. Bennet (D-CO) and Portman (R-OH) for introduction of the Carbon Capture Improvement Act, legislation that will expand eligibility for private activity bonds for financing carbon capture. We look forward to working with Congress to get this bill passed into law this year.”
Lee Beck, International Director, Clean Air Task Force
“The Carbon Capture Improvement Act is an important addition to the many carbon capture-supportive bills already introduced this Congress. Expanding the suite of financing mechanisms available to carbon capture and direct air capture will make additional private capital available on more favorable terms, supporting innovation and boosting future deployment and emissions reductions potential on the road to net-zero.”
James Slevin, President, Utility Workers Union of America
“This important legislation clears the way for broader use of carbon capture technology by easing access to capital to build the infrastructure that will bring more carbon capture projects to life. Workers and communities are depending on measures like these to help lower emissions and sustain local economies.”