ASME Endorses Carbon Capture Improvement Act

ASME recently endorsed the Carbon Capture Improvement Act of 2021, which was introduced in Congress by Representatives Tim Burchett (TN-02) and Terri Sewell (AL-07) on July 13, 2021. The bill was previously introduced in the Senate on May 26, 2021 by Senators Michael Bennet (D-CO) and Rob Portman (R-OH). The Act would allow companies to use tax-exempt private activity bonds (PABs) to finance carbon capture projects.
 
“Stronger carbon capture, use, and storage initiatives are an essential step in actualizing the U.S.'s long-term climate goals,” says John Hasselmann, Managing Director of Global Public Affairs at ASME. “ASME is pleased to support the Carbon Capture Improvement Act and commends the efforts to reduce the costs of building facilities engaged in carbon capture storage and carbon capture use to strengthen our clean energy infrastructure overall.”
 
Facilities that qualify are defined as those that:

• Are used for the capture, treatment and purification, compression, transportation, or on-site storage of carbon dioxide produced by industrial carbon dioxide facilities; or
• Are integral to a gasification process that converts a product from coal, petroleum residue, biomass, or other materials into a synthesis gas of carbon dioxide and hydrogen for use in chemical or physical conversion. 

If more than 65% of carbon emissions are captured, 100% of the facility’s eligible equipment can be financed with the tax-exempt bonds. If less than 65% of emissions are captured, financing would be prorated.
 
For more information, please view this press release issued by the bill’s sponsor.