Existing law establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. Existing law requires the state board to establish a Carbon Capture, Removal, Utilization, and Storage Program, as provided, to evaluate the efficacy, safety, and viability of carbon capture, utilization, or storage technologies and carbon dioxide removal technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate.
This bill would require the state board to establish and administer the Carbon Dioxide Removal Purchase Program to purchase carbon dioxide removal credits generated by eligible carbon dioxide removal projects, as specified. The bill would require the state board, on or before June 30, 2026, and annually thereafter, to conduct and publish on its internet website a survey of carbon dioxide removal projects existing or in development within the state, and, on or before December 31, 2027, and annually thereafter, to publish on its internet website a report describing Carbon Dioxide Removal Purchase Program activities completed and carbon dioxide removal credits purchased to date. The bill would require the state board, on or after July 1, 2026, but on or before December 31, 2035, to purchase and permanently retire from future exchange carbon dioxide removal credits in an amount totaling $50,000,000. The bill would prohibit purchases of carbon dioxide removal credits from exceeding $25,000,000 in credits issued by eligible carbon dioxide removal projects operating in any one of specified project categories or $12,500,000 in credits issued by an individual carbon dioxide removal project sponsor, except as specified. The bill would require the purchase of carbon dioxide removal credits to be made on behalf of the state board or on behalf of another board, department, office, or agency of the state. The bill would require the state board, on or before June 30, 2026, to adopt guidelines, including standards and a definition of eligible carbon dioxide removal projects, for the Carbon Dioxide Removal Purchase Program, which the bill would require to be consistent with, to the extent feasible, certain provisions of the Carbon Capture, Removal, Utilization, and Storage Program, as specified.