U.S. Senators Michael Bennet (D-CO) and Rob Portman (R-OH) yesterday introduced a bill to help power plants and industrial facilities finance the purchase and installation of carbon capture and storage equipment. The carbon that is captured can be used for Enhanced Oil Recovery (EOR) or stored underground. The Carbon Capture Improvement Act would allow businesses to use tax-exempt private activity bonds to finance the high upfront capital costs associated with installing carbon capture equipment. It allows businesses to use private activity bonds (PABs) issued by local or state governments to finance a carbon capture project. Bennet says the bonds are beneficial to consumers and businesses because of their tax-exempt status and because they can be paid back over a longer period of time. If more than 65 percent of carbon dioxide emissions from a given facility are captured and injected underground, then 100 percent of the eligible equipment can be financed with PABs. If less than 65 percent is captured and sequestered, then tax-exempt financing is permitted on a pro-rated basis.