Two U.S Senators, Rob Portman and Michael Bennet, have introduced the Carbon Capture Improvement Act.

The Bill is intended to allow power plants and industrial facilities to easily finance the purchase and installation of carbon capture, utilisation, and storage equipment.

It is also designed to allow businesses to use private activity bonds (PABs) issued by local or state governments to finance a carbon capture project, such as direct air capture (DAC).

DAC allows removal of carbon dioxide directly from the atmosphere. Such carbon capture technologies are innovative methods which can be used to dramatically reduce emissions.

While these carbon capture techniques can aid in reducing emissions and protecting the environment, the costs involved can still be upwards of $1bn.

The private activity bond financing thus encourages commercial deployment, causing costs to decrease and become more scalable.

“This bill is a win-win for jobs and the environment, and I’m proud to continue my work on this issue with Senator Bennet,” said Sen. Portman.

“Carbon capture and direct air capture are common-sense technologies that will allow states like Ohio to continue to utilise our natural resources while protecting our environment at the same time.”

Under this bill, if more than 65% of carbon dioxide emissions from a given facility are captured and injected underground, then 100% of the eligible equipment can be financed with PABs.

Tax-exempt financing is permitted on a pro-rate basis if less than 65% of emissions are captured and sequestered.

Senator Michael Bennet said, “Reducing carbon pollution while creating good-paying jobs is something Democrats, Republicans, labour unions, industry, and environmentalists can all get behind.”

“This is a significant step to ensure we are boosting Colorado’s clean energy economy, rewarding innovation, and keeping our air clean while addressing the threat of climate change.”

U.S Power and industrial facilities have used PABs for decades in order to finance pollution control. Capturing carbon dioxide is seen by both industry and government as the logical next step.