Sec. 133. Private activity bonds for carbon dioxide capture facilities
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Section 142(a) of the Internal Revenue Code of 1986 is amended by striking or at the end of paragraph (14), by striking the period at the end of paragraph
(15)and inserting , or , and by adding at the end the following new paragraph: qualified carbon dioxide capture facilities. . Section 142 of such Code is amended by adding at the end the following new subsection: For purposes of subsection (a)(16), the term qualified carbon dioxide capture facility means the eligible components of an industrial carbon dioxide facility. For purposes of this subsection— The term eligible component means, with respect to any industrial carbon dioxide facility, any component installed in such facility that— satisfies the requirements under paragraph (3), and is used for the purpose of capture, treatment and purification, compression, transportation, or on-site storage of carbon dioxide produced by such facility, or is integral or functionally related and subordinate to a process described in section 48B(c)(2) (determined by substituting carbon dioxide for carbon monoxide ). The term industrial carbon dioxide facility means a facility that emits carbon dioxide (including from any fugitive emissions source) that is created as a result of any of the following processes: Fuel combustion for electricity generation or other purposes. Gasification for electricity generation or other purposes. Bioindustrial. Fermentation. Any manufacturing industry described in section 48B(c)(7). Such term shall not include— any geological gas facility, or any air separation unit that does not qualify as gasification equipment or is not a necessary component of an oxy-fuel combustion process, a supercritical carbon dioxide process, or other advanced power system. The term geological gas facility means a facility that— produces a raw product consisting of gas or mixed gas and liquid from a geological formation, transports or removes impurities from such product, or separates such product into its constituent parts. For purposes of this subsection— Except as provided in subparagraph (B), a component shall not be treated as meeting the requirements of this paragraph with respect to an industrial carbon dioxide facility unless such component has a capture and storage percentage that is at least 65 percent. In the case of an industrial carbon dioxide facility with a capture and storage percentage that is less than 65 percent, a component with respect to such facility shall not be treated as meeting the requirements of this paragraph unless the percentage of the cost of such component that is financed by tax-exempt bonds is not greater than such capture and storage percentage. The capture and storage percentage shall be an amount, expressed as a percentage, equal to the quotient of— the total metric tons of carbon dioxide annually captured, transported, and injected into a facility for geologic storage, or an enhanced oil or gas recovery well followed by geologic storage, divided by 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 component were not installed in the industrial carbon dioxide facility. 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 facility, the capture and storage percentage under this subparagraph shall be determined based only on such specific sources of emissions or portions thereof. . Section 146(g)(4) of such Code is amended by striking paragraph
(11)of section 142(a) (relating to high-speed intercity rail facilities) and inserting paragraph
(11)or
(16)of section 142(a) . Section 141(b)(6) of such Code is amended by adding at the end the following new subparagraph: For purposes of this subsection, the sale of carbon dioxide produced by a qualified carbon dioxide capture facility (as defined in section 142(n)) which is owned by a governmental unit shall not constitute private business use. . The amendments made by this section shall apply to obligations issued after the date of enactment of this Act.