Bill to give tax breaks to carbon capture facilities runs into opposition

BY: PAUL HAMMEL - FEBRUARY 8, 2022 4:45 AM

“LINCOLN — A bill to ensure that Nebraska ethanol plants can qualify for state tax incentives for building carbon-capture facilities is running into opposition from a leading environmental group,” the Nebraska Examiner reports. The Bold Alliance, which includes Bold Nebraska, the group that led the fight against the Keystone XL crude oil pipeline, testified last week against a proposal to ensure that state ImagiNE Act tax breaks are allowed for the “capture, transport or geologic storage” of carbon dioxide, a leading greenhouse gas.

At least two companies are looking at building CO2 pipelines that cross Nebraska. The pipelines would transport the gas in liquid form, under high pressure, from ethanol plants and other manufacturers to storage deep underground.

A representative from the Bold Alliance testified at a legislative hearing Wednesday that it is unnecessary to provide tax breaks for projects that are already planned in the state and that such CO2 pipelines are risky and subject to no state regulation. Advocates for the tax breaks said building carbon storage facilities will help the state’s ethanol industry attain a “greener” rating, which will improve sales to states like California and Oregon that are seeking more environmentally friendly fuels. The debate comes a year after state lawmakers passed a law allowing carbon storage facilities in the state…”