,i #aaeth ,,congress #ast ,session ,h4 ,r4 #bjaa ,,in ,,the ,,house ,,of ,,representatives ,april #f1 #bjag,mr4 ,curbelo of ,florida 7for himself and ,mr4 ,veasey7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide for the issuance of exempt facility bonds for qualified carbon dioxide capture facilities4 #a4 ,short title ,this ,act may be cited as the ,carbon ,capture ,improvement ,act of #bjag4 #b4 ,findings ,congress finds the following3 7#a7 ,capture and long-term storage of carbon dioxide from coal1 natural gas1 and biomass-fired power plants1 as well as from industrial sectors such as oil refining and production of fertilizer1 cement1 and ethanol1 can help protect the environment while improving the economy and national security of the ,united ,states4 7#b7 ,the ,united ,states is a world leader in the field of carbon dioxide capture and long-term storage1 as well as the beneficial use of carbon dioxide in enhanced oil recovery operations1 with many manufacturers and licensors of carbon dioxide capture technology based in the ,united ,states4 7#c7 ,while the prospects for large-scale carbon capture in the ,united ,states are promising1 costs remain relatively high4 ,lowering the financing costs for carbon dioxide capture projects would accelerate the deployment of this technology1 and if the captured carbon dioxide is subsequently sold for industrial use1 such as for use in enhanced oil recovery operations1 the economic prospects are further improved4 7#d7 ,since #aifh1 tax-exempt private activity bonds have been used to provide access to lower-cost financing for private businesses that are purchasing new capital equipment for certain specified environmental facilities1 including facilities that reduce1 recycle1 or dispose of waste1 pollutants1 and hazardous substances4 7#e7 ,allowing tax-exempt financing for the purchase of capital equipment that is used to capture carbon dioxide will reduce the costs of developing carbon dioxide capture projects1 accelerate their deployment1 and1 in conjunction with carbon dioxide utilization and long-term storage1 help the ,united ,states meet critical environmental1 economic1 and national security goals4 #c4 ,carbon dioxide capture facilities 7a7 ,in general ,section #adb of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 in subsection 7a7-- 7,a7 in paragraph 7#ad71 by striking or at the end1 7,b7 in paragraph 7#ae71 by striking the period at the end and inserting 1 or1 and 7,c7 by adding at the end the following new paragraph3 7#af7 qualified carbon dioxide capture facilities4 1 and 7#b7 by adding at the end the following new subsection3 7n7 ,qualified carbon dioxide capture facility 7#a7 ,in general ,for purposes of subsection 7a77#af71 the term qualified carbon dioxide capture facility means the eligible components of an industrial carbon dioxide facility4 7#b7 ,definitions ,in this subsection3 7,a7 ,eligible component 7i7 ,in general ,the term eligible component means any equipment installed in an industrial carbon dioxide facility that satisfies the requirements under paragraph 7#c7 and is-- 7,i7 used for the purpose of capture1 treatment and purification1 compression1 transportation1 or on-site storage of carbon dioxide produced by the industrial carbon dioxide facility1 or 7,,ii7 integral or functionally related and subordinate to a process described in section #dh;,b7c77#b71 determined by substituting carbon dioxide for carbon monoxide in such section4 7,b7 ,industrial carbon dioxide facility 7i7 ,in general ,except as provided in clause 7ii71 the term industrial carbon dioxide facility means a facility that emits carbon dioxide 7including from any fugitive emissions source7 that is created as a result of any of the following processes3 7,i7 ,fuel combustion4 7,,ii7 ,gasification4 7,,iii7 ,bioindustrial4 7,,iv7 ,fermentation4 7,v7 ,any manufacturing industry described in section #dh;,b7c77#g74 7ii7 ,exceptions ,for purposes of clause 7i71 an industrial carbon dioxide facility shall not include-- 7,i7 any geological gas facility 7as defined in clause 7iii771 or 7,,ii7 any air separation unit that-- 7aa7 does not qualify as gasification equipment1 or 7bb7 is not a necessary component of an oxy-fuel combustion process4 7iii7 ,geological gas facility ,the term geological gas facility means a facility that-- 7,i7 produces a raw product consisting of gas or mixed gas and liquid from a geological formation1 7,,ii7 transports or removes impurities from such product1 or 7,,iii7 separates such product into its constituent parts4 7#c7 ,capture and storage requirement 7,a7 ,in general ,subject to subparagraph 7,b71 the eligible components of an industrial carbon dioxide facility shall have a capture and storage percentage 7as determined under subparagraph 7,c77 that is equal to or greater than #fe percent4 7,b7 ,exception ,in the case of an industrial carbon dioxide facility with a capture and storage percentage that is less than #fe percent1 the percentage of the cost of the eligible components installed in such facility that may be financed with tax-exempt bonds may not be greater than the capture and storage percentage4 7,c7 ,capture and storage percentage 7i7 ,in general ,subject to clause 7ii71 the capture and storage percentage shall be an amount1 expressed as a percentage1 equal to the quotient of-- 7,i7 the total metric tons of carbon dioxide annually captured1 transported1 and injected into-- 7aa7 a facility for geologic storage1 or 7bb7 an enhanced oil or gas recovery well followed by geologic storage1 divided by 7,,ii7 the total metric tons of carbon dioxide which would otherwise be released into the atmosphere each year as industrial emission of greenhouse gas if the eligible components were not installed in the industrial carbon dioxide facility4 7ii7 ,limited application of eligible components ,in the case of eligible components that are designed to capture carbon dioxide solely from specific sources of emissions or portions thereof within an industrial carbon dioxide facility1 the capture and storage percentage under this subparagraph shall be determined based only on such specific sources of emissions or portions thereof4 4 7b7 ,volume cap ,section #adf7;g77#d7 of such ,code is amended by striking paragraph 7#aa7 of section #adb7;a7 7relating to high-speed intercity rail facilities7 and inserting paragraph 7#aa7 or 7#af7 of section #adb7;a74 7c7 ,clarification of private business use ,section #ada7;b77#f7 of such ,code is amended by adding at the end the following new subparagraph3 7,c7 ,clarification relating to qualified carbon dioxide capture facilities ,for purposes of this subsection1 the sale of carbon dioxide produced by a qualified carbon dioxide capture facility 7as defined in section #adb7n77 which is owned by a governmental unit shall not constitute private business use4 4 7d7 ,effective date ,the amendments made by this section shall apply to obligations issued after ,december #ca1 #bjag4