Amendment
Vetoed on 10/13/25
This bill establishes the Carbon Dioxide Removal Purchase Program in California, aimed at advancing carbon dioxide removal technologies to help achieve the state's climate goals. The program creates a competitive grant process for eligible carbon dioxide removal projects, with a focus on supporting projects that provide economic, community, and environmental benefits. The bill sets forth detailed guidelines and requirements for the program, including project eligibility criteria, funding mechanisms, and implementation timelines.
The bill establishes the Carbon Dioxide Removal Purchase Program to be administered by the State Air Resources Board. It requires the Board to adopt program guidelines by January 1, 2028, defining eligible projects and setting criteria for carbon dioxide removal credits. Key provisions include requiring eligible projects to be located in California, incorporate community benefit mechanisms, and permanently retire carbon dioxide removal credits equal to the total funded by the state. The program must fund projects in at least two categories: direct air capture, biomass carbon removal and storage, enhanced mineralization, or soil carbon sequestration. The bill prohibits the use of carbon dioxide removal processes for enhanced oil recovery and sets a minimum 100-year duration for sequestration or storage of removed gases.
The State Air Resources Board is responsible for administering the program, including developing guidelines, standards, and requirements. The Board must conduct a survey on carbon dioxide removal projects by January 1, 2028, and identify and document existing carbon removal projects by the same date. The program's implementation is subject to appropriation by the Legislature, with funds available for encumbrance or expenditure until June 30, 2035. The Board is required to consult with various state and local agencies to ensure program funds support climate and environmental goals. The bill also mandates at least two public workshops before initiating credit purchases to receive public comments.
The program aims to support the development of carbon dioxide removal technologies and projects in California, potentially creating economic opportunities for project developers and benefiting communities through required benefit mechanisms. The bill targets the removal of 7 million metric tons of carbon dioxide by 2030 and 75 million metric tons by 2045, as outlined in the State Air Resources Board's 2022 Scoping Plan. While specific cost estimates are not provided, the program allows for up to 10% of funds to be used for administrative costs. The impact on carbon removal project sponsors and developers will be significant, as they must comply with stringent eligibility criteria and verification requirements to receive funding.
The bill amends the Health and Safety Code by adding Chapter 8.5 (commencing with Section 39945) to Part 2 of Division 26. It builds upon existing climate legislation, including Assembly Bill 1279 and Senate Bill 905 from the 2021-22 Regular Session. The program guidelines and requirements are exempted from the Administrative Procedure Act, providing the State Air Resources Board with greater flexibility in implementation. The bill does not explicitly address preemption of local laws or judicial review provisions, but it does require consultation with local air quality management districts and air pollution control districts.
Several critical issues arise from the bill's provisions. The requirement for projects to be physically located within California may limit the program's overall impact on global carbon dioxide removal efforts. The 100-year permanence requirement for carbon sequestration poses significant technical and monitoring challenges. The prohibition on using carbon dioxide removal processes for enhanced oil recovery may face opposition from certain industry sectors. There may also be concerns about the equitable distribution of program funds across different geographic areas and project categories. The exemption of program guidelines from the Administrative Procedure Act could raise questions about transparency and public input in the rulemaking process. Additionally, the feasibility of meeting the ambitious carbon removal targets by the specified deadlines, given the current state of technology, presents a significant implementation challenge.