Amended IN Assembly August 25, 2022 Amended IN Assembly August 16, 2022 Amended IN Assembly June 23, 2022 Amended IN Assembly June 13, 2022 Amended IN Senate May 19, 2022 Amended IN Senate April 18, 2022 Amended IN Senate February 18, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 905Introduced by Senator Skinner(Coauthors: Senators Becker and Caballero)February 02, 2022An act to add Part 3.9 (commencing with Section 71280) to Division 34 of the Public Resources Code, relating to greenhouse gases.LEGISLATIVE COUNSEL'S DIGESTSB 905, as amended, Skinner. Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.(1) The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.This bill would establish the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act, which would require the state board to develop and administer the Geologic Carbon Sequestration Demonstration Initiative to evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the state board, in consultation with the State Energy Resources Conservation and Development Commission and the State Water Resources Control Board, to award funding under the initiative, as specified, to at least one, but no more than 5, geologic carbon sequestration pilot projects that each meet specified criteria, including that the project begin construction before January 1, 2026. criteria. The bill would require the state board, before awarding funds under the initiative, to develop guidelines for implementation of the initiative and the development of geologic carbon sequestration pilot projects and criteria for the selection of eligible projects, as specified. The bill would require the Secretary of the Natural Resources Agency, on or before July 1, 2024, to present a written proposal to the Legislature outlining legal standards governing agreements regarding 2 or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project, as provided.This bill would require the state board, on or before January 1, 2025, to adopt regulations creating a single unified application for submission by developers or sponsors of geologic carbon sequestration pilot projects that solicits from applicants, and directs to relevant agencies, all information needed to obtain all approvals from all state and local agencies necessary to approve a pilot project. The bill would require the State Geologist, on or before January 1, 2025, to adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state and would authorize the State Geologist to require changes in operation of a geologic sequestration pilot project to ensure safety if the monitoring and reporting detects increased seismicity.This bill would authorize the state board, upon appropriation by the Legislature, to fund research regarding geologic carbon sequestration technology piloted through the initiative.(2) Existing law defines public works, for purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement.This bill would require that a geologic carbon sequestration pilot project funded by the state board pursuant to the initiative constitutes a public works project for which prevailing wages are required to be paid. Because the willful violation of prevailing wage requirements when engaged in these public works projects would result in the imposition of misdemeanor penalties, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of extreme heat, wildfires, drought, species loss, and other disruptions to the states environment and ecosystems.(b) Leading climate experts, including the United Nations Intergovernmental Panel on Climate Change, have found that deep reductions in carbon dioxide and other greenhouse gases in the coming decades will be necessary to prevent catastrophic global warming in excess of 1.5 and 2 degrees Celsius.(c) Carbon already emitted into the atmosphere and carbon emitted through natural and industrial processes can be captured and injected into underground geological formations through a process known as geologic carbon sequestration. Geologic carbon sequestration may be a vital strategy to achieve the carbon reductions needed to prevent catastrophic global warming.(d) California has several geologic formations that are known to have the potential for large-scale carbon storage. Carbon storage in these geologic formations could play an important role in achieving the states greenhouse gas emissions and carbon neutrality targets.(e) Several other promising carbon storage mechanisms exist, including mineralization, a process that can permanently store carbon dioxide in rocks.(f) Carbon capture and storage projects would provide jobs for Californias skilled and trained workforce consistent with the states commitment to an equitable and just clean energy transition. Carbon capture projects are skilled-labor intensive and represent a viable pathway for new skilled and trained jobs in the green economy.(g) Senate Bill 596 (Chapter 246 of the Statutes of 2021) identified Californias cement industry as a top priority for the development of carbon-neutral industrial operations, including by setting a goal of net-zero greenhouse gas emissions associated with cement used within the state by 2045.(h) The California cement industry faces a significant economic risk due to high environmental standards and economic costs associated with making cement in the state. Unless the state adequately remedies this risk to the domestic cement industry in meeting its high environmental goals, cement production could move out of state at high economic and environmental cost. This risk will increase as the industry faces higher compliance costs and as the industry makes significant investments to achieve the states goal of achieving carbon neutrality by 2045. The state needs to consider mechanisms to minimize the risk of economic and emissions leakage and ensure that investments in decarbonization measures, regardless of whether those investments are made by the state or by the industry, do not result in increased imports of cement from outside of the state with higher lifecycle carbon intensity. (i) As California pushes to reduce greenhouse gas emissions associated with domestic cement production, the state needs to also focus on reduction of copollutants, including sulfur dioxide, nitrogen oxide, particulate matter, and carbon monoxide emissions, associated with cement production that can impact the health of local communities.(j) It is in the states interest to evaluate the safety, efficacy, and benefits of geologic carbon sequestration for cement production as part of a public-private partnership, to establish clear legal standards for geologic sequestration of carbon captured from cement production, and to enable the deployment of geologic sequestration of carbon captured from cement production by 2025 in order to prevent catastrophic global warming.(k) It is the intent of the Legislature that California establish pathways for safe and effective geologic carbon sequestration that promote workforce and local community benefits and advance the states leadership in the global effort to reduce greenhouse gas emissions and mitigate climate change.SEC. 2. Part 3.9 (commencing with Section 71280) is added to Division 34 of the Public Resources Code, to read:PART 3.9. Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act71280. This part shall be known, and may be cited, as the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.71281. For purposes of this part, the following terms have the following meanings:(a) Carbon dioxide stream means carbon dioxide captured and transported for the purpose of geologic carbon sequestration.(b) Commission means the State Energy Resources Conservation and Development Commission.(c) Geologic carbon sequestration means the capture, transportation, and permanent underground storage of carbon dioxide streams in a geologic storage complex.(d) Geologic carbon sequestration pilot project means a project for geologic carbon sequestration that is approved by the state board pursuant to the requirements of this part.(e) Geologic carbon sequestration pilot project operator means a person owning or operating a geologic carbon sequestration pilot project approved by the state board pursuant to this part.(f) Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.(g) Geologic storage reservoir means a portion of a sedimentary geologic stratum or formation containing void spaces, including depleted oil and gas reservoirs and saline formations, that is suitable for injection and permanent storage of carbon dioxide in the state.(h) Initiative means the Geologic Carbon Sequestration Demonstration Initiative developed by the state board pursuant to Section 71283.(i)Permanent means that sequestered carbon dioxide will remain within a geologic storage complex for at least 100 years.(j)(i) Secretary means the Secretary of the Natural Resources Agency.(k)(j) State board means the State Air Resources Board.71283. (a) The state board shall develop and administer the Geologic Carbon Sequestration Demonstration Initiative to do all of the following:(1) Evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production.(2) Enhance air quality and reduce greenhouse gas emissions.(3) Promote workforce and community benefits.(b) The state board, in consultation with the commission and the State Water Resources Control Board, shall award funding under the initiative to at least one, and no more than five, geologic carbon sequestration pilot projects that each do all of the following:(1) Demonstrate the feasibility of one or more geologic carbon sequestration strategies by facilitating the capture, removal, and geologic sequestration of carbon dioxide generated at one or more existing cement production facilities in the state to one or more geologic storage complexes.(2) Achieve the capability to annually sequester at least 1,000,000 metric tons of carbon dioxide equivalent in greenhouse gas emissions or as close to this requirement as possible. (3) Achieve the capability to permanently sequester carbon dioxide in a geologic storage complex at a total capacity of at least 50,000,000 metric tons of carbon dioxide equivalent or as close to this requirement as possible. (4) Incorporate strategies to reduce copollutant emissions from a cement production facility participating in the project to ensure that the facility does not result in any increased emissions of criteria air pollutant or toxic air contaminant in the community.(5) Incorporate strategies to ensure the geologic carbon sequestration at a geologic storage complex does not increase local water pollution or air pollution and to limit air pollution from construction- and transportation-related impacts from the project in community or communities adjacent to geologic storage complexes used for the project.(6) Incorporate all of the following:(A) Strategies to minimize the risk of seismic impacts to, and from, the project, including the risk of gas leakage due to seismic activity.(B) Commitments to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide in perpetuity. for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(C) Commitments to conduct monitoring in perpetuity of sequestered carbon dioxide, including movement within the geologic storage complex, and for leaks from the complex or associated wellheads. wellheads, for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(7) Include monitoring and reporting schedules to state regulatory agencies in perpetuity. for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(8) Promote workforce development and create employment opportunities in the community or communities in which the project is located.(9) Advance the states net-zero cement industry goal and the strategy developed by the state board pursuant to Section 38561.2 of the Health and Safety Code.(10) Include an infrastructure path for construction of, or reuse of existing, pipelines to connect geologic storage complexes to carbon dioxide sources. A geologic carbon sequestration pilot project shall not receive carbon dioxide streams from a pipeline until the federal Pipeline and Hazardous Materials Safety Administration has concluded the rulemaking (RIN 2137-AF60) regarding minimum federal safety standards for transportation of carbon dioxide by pipeline (Part 192 (commencing with Section 192.1) of Title 49 of the Code of Federal Regulations) and the geologic carbon sequestration pilot project operator demonstrates that the pipeline meets those standards.(11)Begin construction before January 1, 2026.(c) In awarding funds pursuant to this part, the state board shall prioritize geologic carbon sequestration pilot projects that do all of the following:(1) Are likely to generate the greatest net reduction in greenhouse gas emissions.(2) Represent appropriate land use and minimize potential environmental, noise, air quality, traffic, and other construction- and operation-related impacts to the community or communities in which the project is located.(3) Promote the goals of the environmental justice element of any applicable general plan pursuant to subdivision (h) of Section 65302 of the Government Code.(4) Provide benefits to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.(5) Leverage private funding sources and public-private partnership structures alongside state funding sources.(6) Utilize geologic storage reservoirs that have the least potential for leakage according to the California Geological Survey.(d) A geologic carbon sequestration pilot project funded pursuant to this part is a public works project for which prevailing wages shall be paid in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.(e) (1) The state board shall require, as a condition of funding pursuant to this part, that a recipient of funding provide an enforceable commitment to the state board that, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, all contractors and subcontractors at every tier will use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code, to perform all project work that falls within an apprenticeable occupation in the building and construction trades.(2) This subdivision shall not apply if the work is covered by a project labor agreement that requires all contractors and subcontractors at every tier to use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code.(f) No geologic carbon sequestration project that is associated with, incorporates, or connects to enhanced oil recovery or fossil fuel production shall qualify as a geologic carbon sequestration pilot project or be eligible for or receive funding under this part.(g) In awarding funds pursuant to this part, the state board may employ methods, including, but not limited to, grants, direct loans and debt instruments, loan guarantees and credit enhancements, and other forms of financial assistance. However, in awarding funds grants pursuant to this part, the state board may not only employ grants. funds that originate from nonstate sources, including, but not limited to, federal or private sources.(h) Any carbon emissions avoided as a result of a pilot project shall be in addition to, and therefore not calculated toward, the emissions reduction requirement established pursuant to Section 38566 of the Health and Safety Code.(i) (1) The state board shall annually publish on its internet website information regarding the performance of each of the pilot projects receiving financial assistance pursuant to this section. The information shall reflect data from the previous year of operation and shall include at least the following:(A) Location.(B) Carbon capture technology utilized.(C) Carbon capture efficiency in each of the following contexts:(i) Efficiency of carbon removal of the emission source at which the capture technology has been installed.(ii) Efficiency of carbon removal for the entire facility.(iii) Efficiency of the carbon removal including carbon emissions associated with the energy required to operate the capture technology.(D) Energy source.(E) Energy use.(F) Percentage of operating time compared to designed operating time.(G) Employment.(H) Cost-effectiveness relative to existing greenhouse gas emissions reductions measures.(2) An entity that submits data to the state board pursuant to this subdivision and consistent with the procedures of the state board relating to confidential information pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and in accordance with Subchapter 4 (commencing with Section 91000) of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations, may designate written materials such as trade secrets, or other information which is exempt from disclosure, as confidential.71285. (a) Before awarding funds pursuant to this part, the state board, in consultation with other state entities as needed, shall develop both of the following:(1) Guidelines for the implementation of the initiative and development of geologic carbon sequestration pilot projects consistent with Section 71283, and including, but not limited to, best practices and agreement templates for all of the following:(A) Well site, reservoir, and project site health and safety standards.(B) Technology development and transfer for future deployment of geologic carbon sequestration in the state.(C) Community benefits associated with geologic carbon sequestration, including workforce and economic development, housing and community services, and access to federal, state, and other funding sources.(D) Skilled and trained workforce, antidiscrimination, collective bargaining, dispute resolution, and other project labor standards.(2) Criteria for selection of eligible carbon sequestration pilot projects, including, but not limited to, the project eligibility and prioritization criteria listed in subdivisions (b) and (c) of Section 71283.(b) (1) (A) Before adopting the guidelines and the selection criteria described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public on the draft guidelines and selection criteria, and shall consider all comments received in adopting the guidelines and selection criteria.(B) The state board shall hold at least one public workshop in each of the following areas:(i) Northern California.(ii) The central valley.(iii) Southern California.(C) The state board shall publish the draft guidelines and selection criteria on its internet website at least 30 days before each public meeting.(2) The state board shall conduct outreach to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, to encourage residents of these communities to participate in the public workshops and submit comments pursuant to this subdivision.(3) The state board, in adopting the guidelines and selection criteria described in subdivision (a), shall consider all comments received during the public workshops held pursuant to this subdivision.(c) (1) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the state boards development and adoption of the guidelines and selection criteria pursuant to this section.(2) Guidelines and selection criteria developed by the state board pursuant to this section shall not abridge, alter, or amend any regulations or protocols issued by the state board relating to participation of a geologic carbon sequestration pilot project in any program administered by the state board.(3) Guidelines and selection criteria developed by the state board pursuant to this section shall not promote or facilitate enhanced oil recovery or fossil fuel production and shall ensure that geologic carbon sequestration pilot projects do not promote or facilitate enhanced oil recovery or fossil fuel production.(d) Upon the adoption of the guidelines and selection criteria pursuant to this section, the state board shall publish the final guidelines and selection criteria on its internet website.71287. The state board shall, upon appropriation by the Legislature, fund research regarding geologic carbon sequestration technology piloted through the initiative.71291. (a) On or before July 1, 2024, the secretary shall present a written proposal to the Legislature outlining legal standards governing agreements regarding two or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project. The proposal shall include recommended requirements for the submission of these agreements to, and the review, approval, or denial of these agreements by, an authorized state agency, and shall include, but not be limited to, all of the following: (1) Identification of the appropriate state agency for submission, review, and approval or denial of the agreements, including any legal authorization or delegation necessary.(2) A requirement that agreement proponents own title to at least an undivided three-fourths of the total interests subject to the proposed agreement.(3) Standards to determine fair and reasonable compensation for owners.(4) A requirement to make a good faith offer of compensation prior to submission of an agreement.(5) Standards for the provision of surface site access, to the extent reasonably necessary for postinjection monitoring.(6) Standards for the allocation of liability related to the geologic storage reservoir, and associated injection wells, including, but not limited to, standards regarding the liability of a surface landowner who has sold or leased all interests in the geologic storage reservoir to a geologic carbon sequestration operator.(7) Standards for imposing sufficient financial responsibility requirements in perpetuity on geologic carbon sequestration operators, operators no less stringent than the requirements set forth in Section 146.85 of Title 40 of the Code of Federal Regulations, including, but not limited to, the short-term costs of corrective actions, the cost of any liability associated with damage to drinking water supplies or seismic activity triggered by the geologic storage reservoir, and long-term costs associated with well plugging, ongoing site care and monitoring, and site closure of the geologic storage reservoir in perpetuity. reservoir. Such requirements shall require maintenance of financial responsibility instruments for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(8) Standards for allocating royalty payments associated with the leasing of a geologic storage reservoir.(9) Any other requirements necessary to comply with state or federal legal or constitutional standards.(b) In developing the written proposal required pursuant to subdivision (a), the secretary shall consult with appropriate state agencies, including, but not limited to, the Attorney General, the Geologic Energy Management Division, the California Geological Survey, the State Lands Commission, the state board, and the commission, as well as industry and legal experts, regarding applicable legal standards. The secretary shall also review other states legal standards applicable to geologic carbon sequestration projects.(c) Before submitting to the Legislature the written proposal required pursuant to subdivision (a), the secretary shall provide no less than 90 days for public comment on the proposal. The secretary shall consider all comments received during this public comment period in developing the proposal.71293. (a) Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.(b) A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.(c) (1) An instrument that transfers the rights to a geologic storage reservoir under this section shall include all of the following:(A) A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.(B) A general description of the potential location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.(C) An allocation of legal liability from the overlying surface estate owner to the geologic storage reservoir owner owner. Subsequent to the development of standards in accordance with paragraph (6) of subdivision (a) of Section 71291, such allocation shall be consistent with the standards developed in accordance with paragraph (6) of subdivision (a) of Section 71291. those standards.(2) The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.(d) Not less than 60 days before commencing development of a geologic carbon sequestration pilot project approved by the state board pursuant to this part, the geologic carbon sequestration pilot project operator shall provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project.(e) Each geologic carbon sequestration pilot project operator shall record a notation on the deed to the property, or deeds to the properties, where the geologic storage complex or geologic storage reservoir is located, or any other document that is normally examined during a title search, that will in perpetuity notify a potential purchaser of the property, or properties, that the property has, or properties have, been used to sequester carbon dioxide, the volume of carbon dioxide sequestered, the injection zone or zones into which the carbon dioxide was injected, and the dates during which injection occurred.(f) Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease before the effective date of this part.(g) This section is enacted for the limited purpose of facilitating the development of up to five geologic carbon sequestration pilot projects approved by the state board pursuant to this part, and only applies to property that is part of a geologic carbon sequestration pilot project.71295. (a) On or before January 1, 2025, the state board shall adopt regulations creating a single unified application for submission by developers or sponsors of geologic carbon sequestration pilot projects. The single unified application described in this subdivision shall solicit from applicants, and direct to relevant agencies, all information needed to obtain all approvals from state and local agencies necessary to approve a geologic carbon sequestration pilot project, as applicable, including, but not limited to: (1) The state board and local air quality management districts and air pollution control districts, for air quality and greenhouse gas matters.(2) The State Water Resources Control Board and regional water quality control boards, for underground injection and water quality matters.(3) The State Fire Marshal, for pipeline safety matters.(4) The Public Utilities Commission, for pipeline permitting matters.(5) The State Lands Commission and local zoning, land use, and planning agencies, for land use planning and leasing of publicly owned land.(6) Local zoning, land use, and planning agencies, for local land use and pore space ownership matters.(7) The State Geologist, for seismic activity monitoring and reporting matters.(b) The state board shall consult with each of the agencies described in subdivision (a), and any other state or local agencies identified by the state board, to develop the single unified application described in subdivision (a).(c) In developing the single unified application described in subdivision (a), the state board shall, where possible, do both of the following:(1) Consult with relevant federal agencies and local governments regarding the process.(2) Incorporate relevant federal permits into the process.(d) The state board shall oversee the single unified application described in subdivision (a) to minimize application burdens, but shall not abridge any direct contact between applicants and permitting agencies. The state board shall adopt regulations as necessary to implement the single unified application and ensure a streamlined application process for applicants.(e) The single unified application developed by the state board pursuant to subdivision (a) shall not eliminate, abridge, or reduce the review or issuance of the individual permits included in the application. As part of the single unified application, the state board shall, where possible, streamline duplicative administrative requirements or permit application questions.(f) The single unified application developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000)), or its implementing regulations, with respect to the review or approval of a geologic carbon sequestration pilot project.(g) The single unified application developed by the state board pursuant to subdivision (a) shall include a streamlined process for all participating agencies to assess and collect individual permit application fees, as applicable.71296. On or before January 1, 2025, the State Geologist shall adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state. The State Geologist may require changes in operations of a geologic carbon sequestration pilot project to ensure safety, including, but not limited to, a mandatory pause in operation, if monitoring and reporting detects increased seismicity.71297. (a) (1) A geologic carbon sequestration pilot project operator shall demonstrate and maintain financial responsibility sufficient, in perpetuity, sufficient to cover the short- and long-term costs associated with corrective action, well plugging, site care and site closure in perpetuity, accordance with the requirements set forth in Section 146.93 of Title 40 of the Code of Federal Regulations, emergency and remedial response, liability associated with seismic activity triggered by the reservoir, and protection of drinking water quality through financial responsibility instruments such as trust funds, surety bonds, letters of credit, insurance, self-insurance, or escrow accounts. The(2) The requirement to comply with paragraph (1) shall last for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(b) The state board shall, no later than January 1, 2025, and consistent with this section, adopt regulations for financial responsibility in accordance with this section that are no less stringent than those contained in Section 146.85 of Title 40 of the Code of Federal Regulations, as that section existed on January 1, 2023.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
Amended IN Assembly August 25, 2022 Amended IN Assembly August 16, 2022 Amended IN Assembly June 23, 2022 Amended IN Assembly June 13, 2022 Amended IN Senate May 19, 2022 Amended IN Senate April 18, 2022 Amended IN Senate February 18, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Senate Bill No. 905Introduced by Senator Skinner(Coauthors: Senators Becker and Caballero)February 02, 2022An act to add Part 3.9 (commencing with Section 71280) to Division 34 of the Public Resources Code, relating to greenhouse gases.LEGISLATIVE COUNSEL'S DIGESTSB 905, as amended, Skinner. Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.(1) The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.This bill would establish the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act, which would require the state board to develop and administer the Geologic Carbon Sequestration Demonstration Initiative to evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the state board, in consultation with the State Energy Resources Conservation and Development Commission and the State Water Resources Control Board, to award funding under the initiative, as specified, to at least one, but no more than 5, geologic carbon sequestration pilot projects that each meet specified criteria, including that the project begin construction before January 1, 2026. criteria. The bill would require the state board, before awarding funds under the initiative, to develop guidelines for implementation of the initiative and the development of geologic carbon sequestration pilot projects and criteria for the selection of eligible projects, as specified. The bill would require the Secretary of the Natural Resources Agency, on or before July 1, 2024, to present a written proposal to the Legislature outlining legal standards governing agreements regarding 2 or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project, as provided.This bill would require the state board, on or before January 1, 2025, to adopt regulations creating a single unified application for submission by developers or sponsors of geologic carbon sequestration pilot projects that solicits from applicants, and directs to relevant agencies, all information needed to obtain all approvals from all state and local agencies necessary to approve a pilot project. The bill would require the State Geologist, on or before January 1, 2025, to adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state and would authorize the State Geologist to require changes in operation of a geologic sequestration pilot project to ensure safety if the monitoring and reporting detects increased seismicity.This bill would authorize the state board, upon appropriation by the Legislature, to fund research regarding geologic carbon sequestration technology piloted through the initiative.(2) Existing law defines public works, for purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement.This bill would require that a geologic carbon sequestration pilot project funded by the state board pursuant to the initiative constitutes a public works project for which prevailing wages are required to be paid. Because the willful violation of prevailing wage requirements when engaged in these public works projects would result in the imposition of misdemeanor penalties, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
Amended IN Assembly August 25, 2022 Amended IN Assembly August 16, 2022 Amended IN Assembly June 23, 2022 Amended IN Assembly June 13, 2022 Amended IN Senate May 19, 2022 Amended IN Senate April 18, 2022 Amended IN Senate February 18, 2022
Amended IN Assembly August 25, 2022
Amended IN Assembly August 16, 2022
Amended IN Assembly June 23, 2022
Amended IN Assembly June 13, 2022
Amended IN Senate May 19, 2022
Amended IN Senate April 18, 2022
Amended IN Senate February 18, 2022
CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
Senate Bill
No. 905
Introduced by Senator Skinner(Coauthors: Senators Becker and Caballero)February 02, 2022
Introduced by Senator Skinner(Coauthors: Senators Becker and Caballero)
February 02, 2022
An act to add Part 3.9 (commencing with Section 71280) to Division 34 of the Public Resources Code, relating to greenhouse gases.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 905, as amended, Skinner. Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.
(1) The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.This bill would establish the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act, which would require the state board to develop and administer the Geologic Carbon Sequestration Demonstration Initiative to evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the state board, in consultation with the State Energy Resources Conservation and Development Commission and the State Water Resources Control Board, to award funding under the initiative, as specified, to at least one, but no more than 5, geologic carbon sequestration pilot projects that each meet specified criteria, including that the project begin construction before January 1, 2026. criteria. The bill would require the state board, before awarding funds under the initiative, to develop guidelines for implementation of the initiative and the development of geologic carbon sequestration pilot projects and criteria for the selection of eligible projects, as specified. The bill would require the Secretary of the Natural Resources Agency, on or before July 1, 2024, to present a written proposal to the Legislature outlining legal standards governing agreements regarding 2 or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project, as provided.This bill would require the state board, on or before January 1, 2025, to adopt regulations creating a single unified application for submission by developers or sponsors of geologic carbon sequestration pilot projects that solicits from applicants, and directs to relevant agencies, all information needed to obtain all approvals from all state and local agencies necessary to approve a pilot project. The bill would require the State Geologist, on or before January 1, 2025, to adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state and would authorize the State Geologist to require changes in operation of a geologic sequestration pilot project to ensure safety if the monitoring and reporting detects increased seismicity.This bill would authorize the state board, upon appropriation by the Legislature, to fund research regarding geologic carbon sequestration technology piloted through the initiative.(2) Existing law defines public works, for purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement.This bill would require that a geologic carbon sequestration pilot project funded by the state board pursuant to the initiative constitutes a public works project for which prevailing wages are required to be paid. Because the willful violation of prevailing wage requirements when engaged in these public works projects would result in the imposition of misdemeanor penalties, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.
(1) The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.
This bill would establish the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act, which would require the state board to develop and administer the Geologic Carbon Sequestration Demonstration Initiative to evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the state board, in consultation with the State Energy Resources Conservation and Development Commission and the State Water Resources Control Board, to award funding under the initiative, as specified, to at least one, but no more than 5, geologic carbon sequestration pilot projects that each meet specified criteria, including that the project begin construction before January 1, 2026. criteria. The bill would require the state board, before awarding funds under the initiative, to develop guidelines for implementation of the initiative and the development of geologic carbon sequestration pilot projects and criteria for the selection of eligible projects, as specified. The bill would require the Secretary of the Natural Resources Agency, on or before July 1, 2024, to present a written proposal to the Legislature outlining legal standards governing agreements regarding 2 or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project, as provided.
This bill would require the state board, on or before January 1, 2025, to adopt regulations creating a single unified application for submission by developers or sponsors of geologic carbon sequestration pilot projects that solicits from applicants, and directs to relevant agencies, all information needed to obtain all approvals from all state and local agencies necessary to approve a pilot project. The bill would require the State Geologist, on or before January 1, 2025, to adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state and would authorize the State Geologist to require changes in operation of a geologic sequestration pilot project to ensure safety if the monitoring and reporting detects increased seismicity.
This bill would authorize the state board, upon appropriation by the Legislature, to fund research regarding geologic carbon sequestration technology piloted through the initiative.
(2) Existing law defines public works, for purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement.
This bill would require that a geologic carbon sequestration pilot project funded by the state board pursuant to the initiative constitutes a public works project for which prevailing wages are required to be paid. Because the willful violation of prevailing wage requirements when engaged in these public works projects would result in the imposition of misdemeanor penalties, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of extreme heat, wildfires, drought, species loss, and other disruptions to the states environment and ecosystems.(b) Leading climate experts, including the United Nations Intergovernmental Panel on Climate Change, have found that deep reductions in carbon dioxide and other greenhouse gases in the coming decades will be necessary to prevent catastrophic global warming in excess of 1.5 and 2 degrees Celsius.(c) Carbon already emitted into the atmosphere and carbon emitted through natural and industrial processes can be captured and injected into underground geological formations through a process known as geologic carbon sequestration. Geologic carbon sequestration may be a vital strategy to achieve the carbon reductions needed to prevent catastrophic global warming.(d) California has several geologic formations that are known to have the potential for large-scale carbon storage. Carbon storage in these geologic formations could play an important role in achieving the states greenhouse gas emissions and carbon neutrality targets.(e) Several other promising carbon storage mechanisms exist, including mineralization, a process that can permanently store carbon dioxide in rocks.(f) Carbon capture and storage projects would provide jobs for Californias skilled and trained workforce consistent with the states commitment to an equitable and just clean energy transition. Carbon capture projects are skilled-labor intensive and represent a viable pathway for new skilled and trained jobs in the green economy.(g) Senate Bill 596 (Chapter 246 of the Statutes of 2021) identified Californias cement industry as a top priority for the development of carbon-neutral industrial operations, including by setting a goal of net-zero greenhouse gas emissions associated with cement used within the state by 2045.(h) The California cement industry faces a significant economic risk due to high environmental standards and economic costs associated with making cement in the state. Unless the state adequately remedies this risk to the domestic cement industry in meeting its high environmental goals, cement production could move out of state at high economic and environmental cost. This risk will increase as the industry faces higher compliance costs and as the industry makes significant investments to achieve the states goal of achieving carbon neutrality by 2045. The state needs to consider mechanisms to minimize the risk of economic and emissions leakage and ensure that investments in decarbonization measures, regardless of whether those investments are made by the state or by the industry, do not result in increased imports of cement from outside of the state with higher lifecycle carbon intensity. (i) As California pushes to reduce greenhouse gas emissions associated with domestic cement production, the state needs to also focus on reduction of copollutants, including sulfur dioxide, nitrogen oxide, particulate matter, and carbon monoxide emissions, associated with cement production that can impact the health of local communities.(j) It is in the states interest to evaluate the safety, efficacy, and benefits of geologic carbon sequestration for cement production as part of a public-private partnership, to establish clear legal standards for geologic sequestration of carbon captured from cement production, and to enable the deployment of geologic sequestration of carbon captured from cement production by 2025 in order to prevent catastrophic global warming.(k) It is the intent of the Legislature that California establish pathways for safe and effective geologic carbon sequestration that promote workforce and local community benefits and advance the states leadership in the global effort to reduce greenhouse gas emissions and mitigate climate change.SEC. 2. Part 3.9 (commencing with Section 71280) is added to Division 34 of the Public Resources Code, to read:PART 3.9. Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act71280. This part shall be known, and may be cited, as the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.71281. For purposes of this part, the following terms have the following meanings:(a) Carbon dioxide stream means carbon dioxide captured and transported for the purpose of geologic carbon sequestration.(b) Commission means the State Energy Resources Conservation and Development Commission.(c) Geologic carbon sequestration means the capture, transportation, and permanent underground storage of carbon dioxide streams in a geologic storage complex.(d) Geologic carbon sequestration pilot project means a project for geologic carbon sequestration that is approved by the state board pursuant to the requirements of this part.(e) Geologic carbon sequestration pilot project operator means a person owning or operating a geologic carbon sequestration pilot project approved by the state board pursuant to this part.(f) Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.(g) Geologic storage reservoir means a portion of a sedimentary geologic stratum or formation containing void spaces, including depleted oil and gas reservoirs and saline formations, that is suitable for injection and permanent storage of carbon dioxide in the state.(h) Initiative means the Geologic Carbon Sequestration Demonstration Initiative developed by the state board pursuant to Section 71283.(i)Permanent means that sequestered carbon dioxide will remain within a geologic storage complex for at least 100 years.(j)(i) Secretary means the Secretary of the Natural Resources Agency.(k)(j) State board means the State Air Resources Board.71283. (a) The state board shall develop and administer the Geologic Carbon Sequestration Demonstration Initiative to do all of the following:(1) Evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production.(2) Enhance air quality and reduce greenhouse gas emissions.(3) Promote workforce and community benefits.(b) The state board, in consultation with the commission and the State Water Resources Control Board, shall award funding under the initiative to at least one, and no more than five, geologic carbon sequestration pilot projects that each do all of the following:(1) Demonstrate the feasibility of one or more geologic carbon sequestration strategies by facilitating the capture, removal, and geologic sequestration of carbon dioxide generated at one or more existing cement production facilities in the state to one or more geologic storage complexes.(2) Achieve the capability to annually sequester at least 1,000,000 metric tons of carbon dioxide equivalent in greenhouse gas emissions or as close to this requirement as possible. (3) Achieve the capability to permanently sequester carbon dioxide in a geologic storage complex at a total capacity of at least 50,000,000 metric tons of carbon dioxide equivalent or as close to this requirement as possible. (4) Incorporate strategies to reduce copollutant emissions from a cement production facility participating in the project to ensure that the facility does not result in any increased emissions of criteria air pollutant or toxic air contaminant in the community.(5) Incorporate strategies to ensure the geologic carbon sequestration at a geologic storage complex does not increase local water pollution or air pollution and to limit air pollution from construction- and transportation-related impacts from the project in community or communities adjacent to geologic storage complexes used for the project.(6) Incorporate all of the following:(A) Strategies to minimize the risk of seismic impacts to, and from, the project, including the risk of gas leakage due to seismic activity.(B) Commitments to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide in perpetuity. for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(C) Commitments to conduct monitoring in perpetuity of sequestered carbon dioxide, including movement within the geologic storage complex, and for leaks from the complex or associated wellheads. wellheads, for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(7) Include monitoring and reporting schedules to state regulatory agencies in perpetuity. for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(8) Promote workforce development and create employment opportunities in the community or communities in which the project is located.(9) Advance the states net-zero cement industry goal and the strategy developed by the state board pursuant to Section 38561.2 of the Health and Safety Code.(10) Include an infrastructure path for construction of, or reuse of existing, pipelines to connect geologic storage complexes to carbon dioxide sources. A geologic carbon sequestration pilot project shall not receive carbon dioxide streams from a pipeline until the federal Pipeline and Hazardous Materials Safety Administration has concluded the rulemaking (RIN 2137-AF60) regarding minimum federal safety standards for transportation of carbon dioxide by pipeline (Part 192 (commencing with Section 192.1) of Title 49 of the Code of Federal Regulations) and the geologic carbon sequestration pilot project operator demonstrates that the pipeline meets those standards.(11)Begin construction before January 1, 2026.(c) In awarding funds pursuant to this part, the state board shall prioritize geologic carbon sequestration pilot projects that do all of the following:(1) Are likely to generate the greatest net reduction in greenhouse gas emissions.(2) Represent appropriate land use and minimize potential environmental, noise, air quality, traffic, and other construction- and operation-related impacts to the community or communities in which the project is located.(3) Promote the goals of the environmental justice element of any applicable general plan pursuant to subdivision (h) of Section 65302 of the Government Code.(4) Provide benefits to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.(5) Leverage private funding sources and public-private partnership structures alongside state funding sources.(6) Utilize geologic storage reservoirs that have the least potential for leakage according to the California Geological Survey.(d) A geologic carbon sequestration pilot project funded pursuant to this part is a public works project for which prevailing wages shall be paid in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.(e) (1) The state board shall require, as a condition of funding pursuant to this part, that a recipient of funding provide an enforceable commitment to the state board that, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, all contractors and subcontractors at every tier will use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code, to perform all project work that falls within an apprenticeable occupation in the building and construction trades.(2) This subdivision shall not apply if the work is covered by a project labor agreement that requires all contractors and subcontractors at every tier to use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code.(f) No geologic carbon sequestration project that is associated with, incorporates, or connects to enhanced oil recovery or fossil fuel production shall qualify as a geologic carbon sequestration pilot project or be eligible for or receive funding under this part.(g) In awarding funds pursuant to this part, the state board may employ methods, including, but not limited to, grants, direct loans and debt instruments, loan guarantees and credit enhancements, and other forms of financial assistance. However, in awarding funds grants pursuant to this part, the state board may not only employ grants. funds that originate from nonstate sources, including, but not limited to, federal or private sources.(h) Any carbon emissions avoided as a result of a pilot project shall be in addition to, and therefore not calculated toward, the emissions reduction requirement established pursuant to Section 38566 of the Health and Safety Code.(i) (1) The state board shall annually publish on its internet website information regarding the performance of each of the pilot projects receiving financial assistance pursuant to this section. The information shall reflect data from the previous year of operation and shall include at least the following:(A) Location.(B) Carbon capture technology utilized.(C) Carbon capture efficiency in each of the following contexts:(i) Efficiency of carbon removal of the emission source at which the capture technology has been installed.(ii) Efficiency of carbon removal for the entire facility.(iii) Efficiency of the carbon removal including carbon emissions associated with the energy required to operate the capture technology.(D) Energy source.(E) Energy use.(F) Percentage of operating time compared to designed operating time.(G) Employment.(H) Cost-effectiveness relative to existing greenhouse gas emissions reductions measures.(2) An entity that submits data to the state board pursuant to this subdivision and consistent with the procedures of the state board relating to confidential information pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and in accordance with Subchapter 4 (commencing with Section 91000) of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations, may designate written materials such as trade secrets, or other information which is exempt from disclosure, as confidential.71285. (a) Before awarding funds pursuant to this part, the state board, in consultation with other state entities as needed, shall develop both of the following:(1) Guidelines for the implementation of the initiative and development of geologic carbon sequestration pilot projects consistent with Section 71283, and including, but not limited to, best practices and agreement templates for all of the following:(A) Well site, reservoir, and project site health and safety standards.(B) Technology development and transfer for future deployment of geologic carbon sequestration in the state.(C) Community benefits associated with geologic carbon sequestration, including workforce and economic development, housing and community services, and access to federal, state, and other funding sources.(D) Skilled and trained workforce, antidiscrimination, collective bargaining, dispute resolution, and other project labor standards.(2) Criteria for selection of eligible carbon sequestration pilot projects, including, but not limited to, the project eligibility and prioritization criteria listed in subdivisions (b) and (c) of Section 71283.(b) (1) (A) Before adopting the guidelines and the selection criteria described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public on the draft guidelines and selection criteria, and shall consider all comments received in adopting the guidelines and selection criteria.(B) The state board shall hold at least one public workshop in each of the following areas:(i) Northern California.(ii) The central valley.(iii) Southern California.(C) The state board shall publish the draft guidelines and selection criteria on its internet website at least 30 days before each public meeting.(2) The state board shall conduct outreach to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, to encourage residents of these communities to participate in the public workshops and submit comments pursuant to this subdivision.(3) The state board, in adopting the guidelines and selection criteria described in subdivision (a), shall consider all comments received during the public workshops held pursuant to this subdivision.(c) (1) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the state boards development and adoption of the guidelines and selection criteria pursuant to this section.(2) Guidelines and selection criteria developed by the state board pursuant to this section shall not abridge, alter, or amend any regulations or protocols issued by the state board relating to participation of a geologic carbon sequestration pilot project in any program administered by the state board.(3) Guidelines and selection criteria developed by the state board pursuant to this section shall not promote or facilitate enhanced oil recovery or fossil fuel production and shall ensure that geologic carbon sequestration pilot projects do not promote or facilitate enhanced oil recovery or fossil fuel production.(d) Upon the adoption of the guidelines and selection criteria pursuant to this section, the state board shall publish the final guidelines and selection criteria on its internet website.71287. The state board shall, upon appropriation by the Legislature, fund research regarding geologic carbon sequestration technology piloted through the initiative.71291. (a) On or before July 1, 2024, the secretary shall present a written proposal to the Legislature outlining legal standards governing agreements regarding two or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project. The proposal shall include recommended requirements for the submission of these agreements to, and the review, approval, or denial of these agreements by, an authorized state agency, and shall include, but not be limited to, all of the following: (1) Identification of the appropriate state agency for submission, review, and approval or denial of the agreements, including any legal authorization or delegation necessary.(2) A requirement that agreement proponents own title to at least an undivided three-fourths of the total interests subject to the proposed agreement.(3) Standards to determine fair and reasonable compensation for owners.(4) A requirement to make a good faith offer of compensation prior to submission of an agreement.(5) Standards for the provision of surface site access, to the extent reasonably necessary for postinjection monitoring.(6) Standards for the allocation of liability related to the geologic storage reservoir, and associated injection wells, including, but not limited to, standards regarding the liability of a surface landowner who has sold or leased all interests in the geologic storage reservoir to a geologic carbon sequestration operator.(7) Standards for imposing sufficient financial responsibility requirements in perpetuity on geologic carbon sequestration operators, operators no less stringent than the requirements set forth in Section 146.85 of Title 40 of the Code of Federal Regulations, including, but not limited to, the short-term costs of corrective actions, the cost of any liability associated with damage to drinking water supplies or seismic activity triggered by the geologic storage reservoir, and long-term costs associated with well plugging, ongoing site care and monitoring, and site closure of the geologic storage reservoir in perpetuity. reservoir. Such requirements shall require maintenance of financial responsibility instruments for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(8) Standards for allocating royalty payments associated with the leasing of a geologic storage reservoir.(9) Any other requirements necessary to comply with state or federal legal or constitutional standards.(b) In developing the written proposal required pursuant to subdivision (a), the secretary shall consult with appropriate state agencies, including, but not limited to, the Attorney General, the Geologic Energy Management Division, the California Geological Survey, the State Lands Commission, the state board, and the commission, as well as industry and legal experts, regarding applicable legal standards. The secretary shall also review other states legal standards applicable to geologic carbon sequestration projects.(c) Before submitting to the Legislature the written proposal required pursuant to subdivision (a), the secretary shall provide no less than 90 days for public comment on the proposal. The secretary shall consider all comments received during this public comment period in developing the proposal.71293. (a) Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.(b) A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.(c) (1) An instrument that transfers the rights to a geologic storage reservoir under this section shall include all of the following:(A) A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.(B) A general description of the potential location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.(C) An allocation of legal liability from the overlying surface estate owner to the geologic storage reservoir owner owner. Subsequent to the development of standards in accordance with paragraph (6) of subdivision (a) of Section 71291, such allocation shall be consistent with the standards developed in accordance with paragraph (6) of subdivision (a) of Section 71291. those standards.(2) The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.(d) Not less than 60 days before commencing development of a geologic carbon sequestration pilot project approved by the state board pursuant to this part, the geologic carbon sequestration pilot project operator shall provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project.(e) Each geologic carbon sequestration pilot project operator shall record a notation on the deed to the property, or deeds to the properties, where the geologic storage complex or geologic storage reservoir is located, or any other document that is normally examined during a title search, that will in perpetuity notify a potential purchaser of the property, or properties, that the property has, or properties have, been used to sequester carbon dioxide, the volume of carbon dioxide sequestered, the injection zone or zones into which the carbon dioxide was injected, and the dates during which injection occurred.(f) Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease before the effective date of this part.(g) This section is enacted for the limited purpose of facilitating the development of up to five geologic carbon sequestration pilot projects approved by the state board pursuant to this part, and only applies to property that is part of a geologic carbon sequestration pilot project.71295. (a) On or before January 1, 2025, the state board shall adopt regulations creating a single unified application for submission by developers or sponsors of geologic carbon sequestration pilot projects. The single unified application described in this subdivision shall solicit from applicants, and direct to relevant agencies, all information needed to obtain all approvals from state and local agencies necessary to approve a geologic carbon sequestration pilot project, as applicable, including, but not limited to: (1) The state board and local air quality management districts and air pollution control districts, for air quality and greenhouse gas matters.(2) The State Water Resources Control Board and regional water quality control boards, for underground injection and water quality matters.(3) The State Fire Marshal, for pipeline safety matters.(4) The Public Utilities Commission, for pipeline permitting matters.(5) The State Lands Commission and local zoning, land use, and planning agencies, for land use planning and leasing of publicly owned land.(6) Local zoning, land use, and planning agencies, for local land use and pore space ownership matters.(7) The State Geologist, for seismic activity monitoring and reporting matters.(b) The state board shall consult with each of the agencies described in subdivision (a), and any other state or local agencies identified by the state board, to develop the single unified application described in subdivision (a).(c) In developing the single unified application described in subdivision (a), the state board shall, where possible, do both of the following:(1) Consult with relevant federal agencies and local governments regarding the process.(2) Incorporate relevant federal permits into the process.(d) The state board shall oversee the single unified application described in subdivision (a) to minimize application burdens, but shall not abridge any direct contact between applicants and permitting agencies. The state board shall adopt regulations as necessary to implement the single unified application and ensure a streamlined application process for applicants.(e) The single unified application developed by the state board pursuant to subdivision (a) shall not eliminate, abridge, or reduce the review or issuance of the individual permits included in the application. As part of the single unified application, the state board shall, where possible, streamline duplicative administrative requirements or permit application questions.(f) The single unified application developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000)), or its implementing regulations, with respect to the review or approval of a geologic carbon sequestration pilot project.(g) The single unified application developed by the state board pursuant to subdivision (a) shall include a streamlined process for all participating agencies to assess and collect individual permit application fees, as applicable.71296. On or before January 1, 2025, the State Geologist shall adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state. The State Geologist may require changes in operations of a geologic carbon sequestration pilot project to ensure safety, including, but not limited to, a mandatory pause in operation, if monitoring and reporting detects increased seismicity.71297. (a) (1) A geologic carbon sequestration pilot project operator shall demonstrate and maintain financial responsibility sufficient, in perpetuity, sufficient to cover the short- and long-term costs associated with corrective action, well plugging, site care and site closure in perpetuity, accordance with the requirements set forth in Section 146.93 of Title 40 of the Code of Federal Regulations, emergency and remedial response, liability associated with seismic activity triggered by the reservoir, and protection of drinking water quality through financial responsibility instruments such as trust funds, surety bonds, letters of credit, insurance, self-insurance, or escrow accounts. The(2) The requirement to comply with paragraph (1) shall last for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(b) The state board shall, no later than January 1, 2025, and consistent with this section, adopt regulations for financial responsibility in accordance with this section that are no less stringent than those contained in Section 146.85 of Title 40 of the Code of Federal Regulations, as that section existed on January 1, 2023.SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares all of the following:(a) Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of extreme heat, wildfires, drought, species loss, and other disruptions to the states environment and ecosystems.(b) Leading climate experts, including the United Nations Intergovernmental Panel on Climate Change, have found that deep reductions in carbon dioxide and other greenhouse gases in the coming decades will be necessary to prevent catastrophic global warming in excess of 1.5 and 2 degrees Celsius.(c) Carbon already emitted into the atmosphere and carbon emitted through natural and industrial processes can be captured and injected into underground geological formations through a process known as geologic carbon sequestration. Geologic carbon sequestration may be a vital strategy to achieve the carbon reductions needed to prevent catastrophic global warming.(d) California has several geologic formations that are known to have the potential for large-scale carbon storage. Carbon storage in these geologic formations could play an important role in achieving the states greenhouse gas emissions and carbon neutrality targets.(e) Several other promising carbon storage mechanisms exist, including mineralization, a process that can permanently store carbon dioxide in rocks.(f) Carbon capture and storage projects would provide jobs for Californias skilled and trained workforce consistent with the states commitment to an equitable and just clean energy transition. Carbon capture projects are skilled-labor intensive and represent a viable pathway for new skilled and trained jobs in the green economy.(g) Senate Bill 596 (Chapter 246 of the Statutes of 2021) identified Californias cement industry as a top priority for the development of carbon-neutral industrial operations, including by setting a goal of net-zero greenhouse gas emissions associated with cement used within the state by 2045.(h) The California cement industry faces a significant economic risk due to high environmental standards and economic costs associated with making cement in the state. Unless the state adequately remedies this risk to the domestic cement industry in meeting its high environmental goals, cement production could move out of state at high economic and environmental cost. This risk will increase as the industry faces higher compliance costs and as the industry makes significant investments to achieve the states goal of achieving carbon neutrality by 2045. The state needs to consider mechanisms to minimize the risk of economic and emissions leakage and ensure that investments in decarbonization measures, regardless of whether those investments are made by the state or by the industry, do not result in increased imports of cement from outside of the state with higher lifecycle carbon intensity. (i) As California pushes to reduce greenhouse gas emissions associated with domestic cement production, the state needs to also focus on reduction of copollutants, including sulfur dioxide, nitrogen oxide, particulate matter, and carbon monoxide emissions, associated with cement production that can impact the health of local communities.(j) It is in the states interest to evaluate the safety, efficacy, and benefits of geologic carbon sequestration for cement production as part of a public-private partnership, to establish clear legal standards for geologic sequestration of carbon captured from cement production, and to enable the deployment of geologic sequestration of carbon captured from cement production by 2025 in order to prevent catastrophic global warming.(k) It is the intent of the Legislature that California establish pathways for safe and effective geologic carbon sequestration that promote workforce and local community benefits and advance the states leadership in the global effort to reduce greenhouse gas emissions and mitigate climate change.
SECTION 1. The Legislature finds and declares all of the following:(a) Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of extreme heat, wildfires, drought, species loss, and other disruptions to the states environment and ecosystems.(b) Leading climate experts, including the United Nations Intergovernmental Panel on Climate Change, have found that deep reductions in carbon dioxide and other greenhouse gases in the coming decades will be necessary to prevent catastrophic global warming in excess of 1.5 and 2 degrees Celsius.(c) Carbon already emitted into the atmosphere and carbon emitted through natural and industrial processes can be captured and injected into underground geological formations through a process known as geologic carbon sequestration. Geologic carbon sequestration may be a vital strategy to achieve the carbon reductions needed to prevent catastrophic global warming.(d) California has several geologic formations that are known to have the potential for large-scale carbon storage. Carbon storage in these geologic formations could play an important role in achieving the states greenhouse gas emissions and carbon neutrality targets.(e) Several other promising carbon storage mechanisms exist, including mineralization, a process that can permanently store carbon dioxide in rocks.(f) Carbon capture and storage projects would provide jobs for Californias skilled and trained workforce consistent with the states commitment to an equitable and just clean energy transition. Carbon capture projects are skilled-labor intensive and represent a viable pathway for new skilled and trained jobs in the green economy.(g) Senate Bill 596 (Chapter 246 of the Statutes of 2021) identified Californias cement industry as a top priority for the development of carbon-neutral industrial operations, including by setting a goal of net-zero greenhouse gas emissions associated with cement used within the state by 2045.(h) The California cement industry faces a significant economic risk due to high environmental standards and economic costs associated with making cement in the state. Unless the state adequately remedies this risk to the domestic cement industry in meeting its high environmental goals, cement production could move out of state at high economic and environmental cost. This risk will increase as the industry faces higher compliance costs and as the industry makes significant investments to achieve the states goal of achieving carbon neutrality by 2045. The state needs to consider mechanisms to minimize the risk of economic and emissions leakage and ensure that investments in decarbonization measures, regardless of whether those investments are made by the state or by the industry, do not result in increased imports of cement from outside of the state with higher lifecycle carbon intensity. (i) As California pushes to reduce greenhouse gas emissions associated with domestic cement production, the state needs to also focus on reduction of copollutants, including sulfur dioxide, nitrogen oxide, particulate matter, and carbon monoxide emissions, associated with cement production that can impact the health of local communities.(j) It is in the states interest to evaluate the safety, efficacy, and benefits of geologic carbon sequestration for cement production as part of a public-private partnership, to establish clear legal standards for geologic sequestration of carbon captured from cement production, and to enable the deployment of geologic sequestration of carbon captured from cement production by 2025 in order to prevent catastrophic global warming.(k) It is the intent of the Legislature that California establish pathways for safe and effective geologic carbon sequestration that promote workforce and local community benefits and advance the states leadership in the global effort to reduce greenhouse gas emissions and mitigate climate change.
SECTION 1. The Legislature finds and declares all of the following:
### SECTION 1.
(a) Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of extreme heat, wildfires, drought, species loss, and other disruptions to the states environment and ecosystems.
(b) Leading climate experts, including the United Nations Intergovernmental Panel on Climate Change, have found that deep reductions in carbon dioxide and other greenhouse gases in the coming decades will be necessary to prevent catastrophic global warming in excess of 1.5 and 2 degrees Celsius.
(c) Carbon already emitted into the atmosphere and carbon emitted through natural and industrial processes can be captured and injected into underground geological formations through a process known as geologic carbon sequestration. Geologic carbon sequestration may be a vital strategy to achieve the carbon reductions needed to prevent catastrophic global warming.
(d) California has several geologic formations that are known to have the potential for large-scale carbon storage. Carbon storage in these geologic formations could play an important role in achieving the states greenhouse gas emissions and carbon neutrality targets.
(e) Several other promising carbon storage mechanisms exist, including mineralization, a process that can permanently store carbon dioxide in rocks.
(f) Carbon capture and storage projects would provide jobs for Californias skilled and trained workforce consistent with the states commitment to an equitable and just clean energy transition. Carbon capture projects are skilled-labor intensive and represent a viable pathway for new skilled and trained jobs in the green economy.
(g) Senate Bill 596 (Chapter 246 of the Statutes of 2021) identified Californias cement industry as a top priority for the development of carbon-neutral industrial operations, including by setting a goal of net-zero greenhouse gas emissions associated with cement used within the state by 2045.
(h) The California cement industry faces a significant economic risk due to high environmental standards and economic costs associated with making cement in the state. Unless the state adequately remedies this risk to the domestic cement industry in meeting its high environmental goals, cement production could move out of state at high economic and environmental cost. This risk will increase as the industry faces higher compliance costs and as the industry makes significant investments to achieve the states goal of achieving carbon neutrality by 2045. The state needs to consider mechanisms to minimize the risk of economic and emissions leakage and ensure that investments in decarbonization measures, regardless of whether those investments are made by the state or by the industry, do not result in increased imports of cement from outside of the state with higher lifecycle carbon intensity.
(i) As California pushes to reduce greenhouse gas emissions associated with domestic cement production, the state needs to also focus on reduction of copollutants, including sulfur dioxide, nitrogen oxide, particulate matter, and carbon monoxide emissions, associated with cement production that can impact the health of local communities.
(j) It is in the states interest to evaluate the safety, efficacy, and benefits of geologic carbon sequestration for cement production as part of a public-private partnership, to establish clear legal standards for geologic sequestration of carbon captured from cement production, and to enable the deployment of geologic sequestration of carbon captured from cement production by 2025 in order to prevent catastrophic global warming.
(k) It is the intent of the Legislature that California establish pathways for safe and effective geologic carbon sequestration that promote workforce and local community benefits and advance the states leadership in the global effort to reduce greenhouse gas emissions and mitigate climate change.
SEC. 2. Part 3.9 (commencing with Section 71280) is added to Division 34 of the Public Resources Code, to read:PART 3.9. Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act71280. This part shall be known, and may be cited, as the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.71281. For purposes of this part, the following terms have the following meanings:(a) Carbon dioxide stream means carbon dioxide captured and transported for the purpose of geologic carbon sequestration.(b) Commission means the State Energy Resources Conservation and Development Commission.(c) Geologic carbon sequestration means the capture, transportation, and permanent underground storage of carbon dioxide streams in a geologic storage complex.(d) Geologic carbon sequestration pilot project means a project for geologic carbon sequestration that is approved by the state board pursuant to the requirements of this part.(e) Geologic carbon sequestration pilot project operator means a person owning or operating a geologic carbon sequestration pilot project approved by the state board pursuant to this part.(f) Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.(g) Geologic storage reservoir means a portion of a sedimentary geologic stratum or formation containing void spaces, including depleted oil and gas reservoirs and saline formations, that is suitable for injection and permanent storage of carbon dioxide in the state.(h) Initiative means the Geologic Carbon Sequestration Demonstration Initiative developed by the state board pursuant to Section 71283.(i)Permanent means that sequestered carbon dioxide will remain within a geologic storage complex for at least 100 years.(j)(i) Secretary means the Secretary of the Natural Resources Agency.(k)(j) State board means the State Air Resources Board.71283. (a) The state board shall develop and administer the Geologic Carbon Sequestration Demonstration Initiative to do all of the following:(1) Evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production.(2) Enhance air quality and reduce greenhouse gas emissions.(3) Promote workforce and community benefits.(b) The state board, in consultation with the commission and the State Water Resources Control Board, shall award funding under the initiative to at least one, and no more than five, geologic carbon sequestration pilot projects that each do all of the following:(1) Demonstrate the feasibility of one or more geologic carbon sequestration strategies by facilitating the capture, removal, and geologic sequestration of carbon dioxide generated at one or more existing cement production facilities in the state to one or more geologic storage complexes.(2) Achieve the capability to annually sequester at least 1,000,000 metric tons of carbon dioxide equivalent in greenhouse gas emissions or as close to this requirement as possible. (3) Achieve the capability to permanently sequester carbon dioxide in a geologic storage complex at a total capacity of at least 50,000,000 metric tons of carbon dioxide equivalent or as close to this requirement as possible. (4) Incorporate strategies to reduce copollutant emissions from a cement production facility participating in the project to ensure that the facility does not result in any increased emissions of criteria air pollutant or toxic air contaminant in the community.(5) Incorporate strategies to ensure the geologic carbon sequestration at a geologic storage complex does not increase local water pollution or air pollution and to limit air pollution from construction- and transportation-related impacts from the project in community or communities adjacent to geologic storage complexes used for the project.(6) Incorporate all of the following:(A) Strategies to minimize the risk of seismic impacts to, and from, the project, including the risk of gas leakage due to seismic activity.(B) Commitments to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide in perpetuity. for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(C) Commitments to conduct monitoring in perpetuity of sequestered carbon dioxide, including movement within the geologic storage complex, and for leaks from the complex or associated wellheads. wellheads, for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(7) Include monitoring and reporting schedules to state regulatory agencies in perpetuity. for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(8) Promote workforce development and create employment opportunities in the community or communities in which the project is located.(9) Advance the states net-zero cement industry goal and the strategy developed by the state board pursuant to Section 38561.2 of the Health and Safety Code.(10) Include an infrastructure path for construction of, or reuse of existing, pipelines to connect geologic storage complexes to carbon dioxide sources. A geologic carbon sequestration pilot project shall not receive carbon dioxide streams from a pipeline until the federal Pipeline and Hazardous Materials Safety Administration has concluded the rulemaking (RIN 2137-AF60) regarding minimum federal safety standards for transportation of carbon dioxide by pipeline (Part 192 (commencing with Section 192.1) of Title 49 of the Code of Federal Regulations) and the geologic carbon sequestration pilot project operator demonstrates that the pipeline meets those standards.(11)Begin construction before January 1, 2026.(c) In awarding funds pursuant to this part, the state board shall prioritize geologic carbon sequestration pilot projects that do all of the following:(1) Are likely to generate the greatest net reduction in greenhouse gas emissions.(2) Represent appropriate land use and minimize potential environmental, noise, air quality, traffic, and other construction- and operation-related impacts to the community or communities in which the project is located.(3) Promote the goals of the environmental justice element of any applicable general plan pursuant to subdivision (h) of Section 65302 of the Government Code.(4) Provide benefits to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.(5) Leverage private funding sources and public-private partnership structures alongside state funding sources.(6) Utilize geologic storage reservoirs that have the least potential for leakage according to the California Geological Survey.(d) A geologic carbon sequestration pilot project funded pursuant to this part is a public works project for which prevailing wages shall be paid in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.(e) (1) The state board shall require, as a condition of funding pursuant to this part, that a recipient of funding provide an enforceable commitment to the state board that, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, all contractors and subcontractors at every tier will use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code, to perform all project work that falls within an apprenticeable occupation in the building and construction trades.(2) This subdivision shall not apply if the work is covered by a project labor agreement that requires all contractors and subcontractors at every tier to use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code.(f) No geologic carbon sequestration project that is associated with, incorporates, or connects to enhanced oil recovery or fossil fuel production shall qualify as a geologic carbon sequestration pilot project or be eligible for or receive funding under this part.(g) In awarding funds pursuant to this part, the state board may employ methods, including, but not limited to, grants, direct loans and debt instruments, loan guarantees and credit enhancements, and other forms of financial assistance. However, in awarding funds grants pursuant to this part, the state board may not only employ grants. funds that originate from nonstate sources, including, but not limited to, federal or private sources.(h) Any carbon emissions avoided as a result of a pilot project shall be in addition to, and therefore not calculated toward, the emissions reduction requirement established pursuant to Section 38566 of the Health and Safety Code.(i) (1) The state board shall annually publish on its internet website information regarding the performance of each of the pilot projects receiving financial assistance pursuant to this section. The information shall reflect data from the previous year of operation and shall include at least the following:(A) Location.(B) Carbon capture technology utilized.(C) Carbon capture efficiency in each of the following contexts:(i) Efficiency of carbon removal of the emission source at which the capture technology has been installed.(ii) Efficiency of carbon removal for the entire facility.(iii) Efficiency of the carbon removal including carbon emissions associated with the energy required to operate the capture technology.(D) Energy source.(E) Energy use.(F) Percentage of operating time compared to designed operating time.(G) Employment.(H) Cost-effectiveness relative to existing greenhouse gas emissions reductions measures.(2) An entity that submits data to the state board pursuant to this subdivision and consistent with the procedures of the state board relating to confidential information pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and in accordance with Subchapter 4 (commencing with Section 91000) of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations, may designate written materials such as trade secrets, or other information which is exempt from disclosure, as confidential.71285. (a) Before awarding funds pursuant to this part, the state board, in consultation with other state entities as needed, shall develop both of the following:(1) Guidelines for the implementation of the initiative and development of geologic carbon sequestration pilot projects consistent with Section 71283, and including, but not limited to, best practices and agreement templates for all of the following:(A) Well site, reservoir, and project site health and safety standards.(B) Technology development and transfer for future deployment of geologic carbon sequestration in the state.(C) Community benefits associated with geologic carbon sequestration, including workforce and economic development, housing and community services, and access to federal, state, and other funding sources.(D) Skilled and trained workforce, antidiscrimination, collective bargaining, dispute resolution, and other project labor standards.(2) Criteria for selection of eligible carbon sequestration pilot projects, including, but not limited to, the project eligibility and prioritization criteria listed in subdivisions (b) and (c) of Section 71283.(b) (1) (A) Before adopting the guidelines and the selection criteria described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public on the draft guidelines and selection criteria, and shall consider all comments received in adopting the guidelines and selection criteria.(B) The state board shall hold at least one public workshop in each of the following areas:(i) Northern California.(ii) The central valley.(iii) Southern California.(C) The state board shall publish the draft guidelines and selection criteria on its internet website at least 30 days before each public meeting.(2) The state board shall conduct outreach to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, to encourage residents of these communities to participate in the public workshops and submit comments pursuant to this subdivision.(3) The state board, in adopting the guidelines and selection criteria described in subdivision (a), shall consider all comments received during the public workshops held pursuant to this subdivision.(c) (1) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the state boards development and adoption of the guidelines and selection criteria pursuant to this section.(2) Guidelines and selection criteria developed by the state board pursuant to this section shall not abridge, alter, or amend any regulations or protocols issued by the state board relating to participation of a geologic carbon sequestration pilot project in any program administered by the state board.(3) Guidelines and selection criteria developed by the state board pursuant to this section shall not promote or facilitate enhanced oil recovery or fossil fuel production and shall ensure that geologic carbon sequestration pilot projects do not promote or facilitate enhanced oil recovery or fossil fuel production.(d) Upon the adoption of the guidelines and selection criteria pursuant to this section, the state board shall publish the final guidelines and selection criteria on its internet website.71287. The state board shall, upon appropriation by the Legislature, fund research regarding geologic carbon sequestration technology piloted through the initiative.71291. (a) On or before July 1, 2024, the secretary shall present a written proposal to the Legislature outlining legal standards governing agreements regarding two or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project. The proposal shall include recommended requirements for the submission of these agreements to, and the review, approval, or denial of these agreements by, an authorized state agency, and shall include, but not be limited to, all of the following: (1) Identification of the appropriate state agency for submission, review, and approval or denial of the agreements, including any legal authorization or delegation necessary.(2) A requirement that agreement proponents own title to at least an undivided three-fourths of the total interests subject to the proposed agreement.(3) Standards to determine fair and reasonable compensation for owners.(4) A requirement to make a good faith offer of compensation prior to submission of an agreement.(5) Standards for the provision of surface site access, to the extent reasonably necessary for postinjection monitoring.(6) Standards for the allocation of liability related to the geologic storage reservoir, and associated injection wells, including, but not limited to, standards regarding the liability of a surface landowner who has sold or leased all interests in the geologic storage reservoir to a geologic carbon sequestration operator.(7) Standards for imposing sufficient financial responsibility requirements in perpetuity on geologic carbon sequestration operators, operators no less stringent than the requirements set forth in Section 146.85 of Title 40 of the Code of Federal Regulations, including, but not limited to, the short-term costs of corrective actions, the cost of any liability associated with damage to drinking water supplies or seismic activity triggered by the geologic storage reservoir, and long-term costs associated with well plugging, ongoing site care and monitoring, and site closure of the geologic storage reservoir in perpetuity. reservoir. Such requirements shall require maintenance of financial responsibility instruments for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(8) Standards for allocating royalty payments associated with the leasing of a geologic storage reservoir.(9) Any other requirements necessary to comply with state or federal legal or constitutional standards.(b) In developing the written proposal required pursuant to subdivision (a), the secretary shall consult with appropriate state agencies, including, but not limited to, the Attorney General, the Geologic Energy Management Division, the California Geological Survey, the State Lands Commission, the state board, and the commission, as well as industry and legal experts, regarding applicable legal standards. The secretary shall also review other states legal standards applicable to geologic carbon sequestration projects.(c) Before submitting to the Legislature the written proposal required pursuant to subdivision (a), the secretary shall provide no less than 90 days for public comment on the proposal. The secretary shall consider all comments received during this public comment period in developing the proposal.71293. (a) Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.(b) A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.(c) (1) An instrument that transfers the rights to a geologic storage reservoir under this section shall include all of the following:(A) A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.(B) A general description of the potential location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.(C) An allocation of legal liability from the overlying surface estate owner to the geologic storage reservoir owner owner. Subsequent to the development of standards in accordance with paragraph (6) of subdivision (a) of Section 71291, such allocation shall be consistent with the standards developed in accordance with paragraph (6) of subdivision (a) of Section 71291. those standards.(2) The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.(d) Not less than 60 days before commencing development of a geologic carbon sequestration pilot project approved by the state board pursuant to this part, the geologic carbon sequestration pilot project operator shall provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project.(e) Each geologic carbon sequestration pilot project operator shall record a notation on the deed to the property, or deeds to the properties, where the geologic storage complex or geologic storage reservoir is located, or any other document that is normally examined during a title search, that will in perpetuity notify a potential purchaser of the property, or properties, that the property has, or properties have, been used to sequester carbon dioxide, the volume of carbon dioxide sequestered, the injection zone or zones into which the carbon dioxide was injected, and the dates during which injection occurred.(f) Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease before the effective date of this part.(g) This section is enacted for the limited purpose of facilitating the development of up to five geologic carbon sequestration pilot projects approved by the state board pursuant to this part, and only applies to property that is part of a geologic carbon sequestration pilot project.71295. (a) On or before January 1, 2025, the state board shall adopt regulations creating a single unified application for submission by developers or sponsors of geologic carbon sequestration pilot projects. The single unified application described in this subdivision shall solicit from applicants, and direct to relevant agencies, all information needed to obtain all approvals from state and local agencies necessary to approve a geologic carbon sequestration pilot project, as applicable, including, but not limited to: (1) The state board and local air quality management districts and air pollution control districts, for air quality and greenhouse gas matters.(2) The State Water Resources Control Board and regional water quality control boards, for underground injection and water quality matters.(3) The State Fire Marshal, for pipeline safety matters.(4) The Public Utilities Commission, for pipeline permitting matters.(5) The State Lands Commission and local zoning, land use, and planning agencies, for land use planning and leasing of publicly owned land.(6) Local zoning, land use, and planning agencies, for local land use and pore space ownership matters.(7) The State Geologist, for seismic activity monitoring and reporting matters.(b) The state board shall consult with each of the agencies described in subdivision (a), and any other state or local agencies identified by the state board, to develop the single unified application described in subdivision (a).(c) In developing the single unified application described in subdivision (a), the state board shall, where possible, do both of the following:(1) Consult with relevant federal agencies and local governments regarding the process.(2) Incorporate relevant federal permits into the process.(d) The state board shall oversee the single unified application described in subdivision (a) to minimize application burdens, but shall not abridge any direct contact between applicants and permitting agencies. The state board shall adopt regulations as necessary to implement the single unified application and ensure a streamlined application process for applicants.(e) The single unified application developed by the state board pursuant to subdivision (a) shall not eliminate, abridge, or reduce the review or issuance of the individual permits included in the application. As part of the single unified application, the state board shall, where possible, streamline duplicative administrative requirements or permit application questions.(f) The single unified application developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000)), or its implementing regulations, with respect to the review or approval of a geologic carbon sequestration pilot project.(g) The single unified application developed by the state board pursuant to subdivision (a) shall include a streamlined process for all participating agencies to assess and collect individual permit application fees, as applicable.71296. On or before January 1, 2025, the State Geologist shall adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state. The State Geologist may require changes in operations of a geologic carbon sequestration pilot project to ensure safety, including, but not limited to, a mandatory pause in operation, if monitoring and reporting detects increased seismicity.71297. (a) (1) A geologic carbon sequestration pilot project operator shall demonstrate and maintain financial responsibility sufficient, in perpetuity, sufficient to cover the short- and long-term costs associated with corrective action, well plugging, site care and site closure in perpetuity, accordance with the requirements set forth in Section 146.93 of Title 40 of the Code of Federal Regulations, emergency and remedial response, liability associated with seismic activity triggered by the reservoir, and protection of drinking water quality through financial responsibility instruments such as trust funds, surety bonds, letters of credit, insurance, self-insurance, or escrow accounts. The(2) The requirement to comply with paragraph (1) shall last for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(b) The state board shall, no later than January 1, 2025, and consistent with this section, adopt regulations for financial responsibility in accordance with this section that are no less stringent than those contained in Section 146.85 of Title 40 of the Code of Federal Regulations, as that section existed on January 1, 2023.
SEC. 2. Part 3.9 (commencing with Section 71280) is added to Division 34 of the Public Resources Code, to read:
### SEC. 2.
PART 3.9. Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act71280. This part shall be known, and may be cited, as the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.71281. For purposes of this part, the following terms have the following meanings:(a) Carbon dioxide stream means carbon dioxide captured and transported for the purpose of geologic carbon sequestration.(b) Commission means the State Energy Resources Conservation and Development Commission.(c) Geologic carbon sequestration means the capture, transportation, and permanent underground storage of carbon dioxide streams in a geologic storage complex.(d) Geologic carbon sequestration pilot project means a project for geologic carbon sequestration that is approved by the state board pursuant to the requirements of this part.(e) Geologic carbon sequestration pilot project operator means a person owning or operating a geologic carbon sequestration pilot project approved by the state board pursuant to this part.(f) Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.(g) Geologic storage reservoir means a portion of a sedimentary geologic stratum or formation containing void spaces, including depleted oil and gas reservoirs and saline formations, that is suitable for injection and permanent storage of carbon dioxide in the state.(h) Initiative means the Geologic Carbon Sequestration Demonstration Initiative developed by the state board pursuant to Section 71283.(i)Permanent means that sequestered carbon dioxide will remain within a geologic storage complex for at least 100 years.(j)(i) Secretary means the Secretary of the Natural Resources Agency.(k)(j) State board means the State Air Resources Board.71283. (a) The state board shall develop and administer the Geologic Carbon Sequestration Demonstration Initiative to do all of the following:(1) Evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production.(2) Enhance air quality and reduce greenhouse gas emissions.(3) Promote workforce and community benefits.(b) The state board, in consultation with the commission and the State Water Resources Control Board, shall award funding under the initiative to at least one, and no more than five, geologic carbon sequestration pilot projects that each do all of the following:(1) Demonstrate the feasibility of one or more geologic carbon sequestration strategies by facilitating the capture, removal, and geologic sequestration of carbon dioxide generated at one or more existing cement production facilities in the state to one or more geologic storage complexes.(2) Achieve the capability to annually sequester at least 1,000,000 metric tons of carbon dioxide equivalent in greenhouse gas emissions or as close to this requirement as possible. (3) Achieve the capability to permanently sequester carbon dioxide in a geologic storage complex at a total capacity of at least 50,000,000 metric tons of carbon dioxide equivalent or as close to this requirement as possible. (4) Incorporate strategies to reduce copollutant emissions from a cement production facility participating in the project to ensure that the facility does not result in any increased emissions of criteria air pollutant or toxic air contaminant in the community.(5) Incorporate strategies to ensure the geologic carbon sequestration at a geologic storage complex does not increase local water pollution or air pollution and to limit air pollution from construction- and transportation-related impacts from the project in community or communities adjacent to geologic storage complexes used for the project.(6) Incorporate all of the following:(A) Strategies to minimize the risk of seismic impacts to, and from, the project, including the risk of gas leakage due to seismic activity.(B) Commitments to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide in perpetuity. for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(C) Commitments to conduct monitoring in perpetuity of sequestered carbon dioxide, including movement within the geologic storage complex, and for leaks from the complex or associated wellheads. wellheads, for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(7) Include monitoring and reporting schedules to state regulatory agencies in perpetuity. for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(8) Promote workforce development and create employment opportunities in the community or communities in which the project is located.(9) Advance the states net-zero cement industry goal and the strategy developed by the state board pursuant to Section 38561.2 of the Health and Safety Code.(10) Include an infrastructure path for construction of, or reuse of existing, pipelines to connect geologic storage complexes to carbon dioxide sources. A geologic carbon sequestration pilot project shall not receive carbon dioxide streams from a pipeline until the federal Pipeline and Hazardous Materials Safety Administration has concluded the rulemaking (RIN 2137-AF60) regarding minimum federal safety standards for transportation of carbon dioxide by pipeline (Part 192 (commencing with Section 192.1) of Title 49 of the Code of Federal Regulations) and the geologic carbon sequestration pilot project operator demonstrates that the pipeline meets those standards.(11)Begin construction before January 1, 2026.(c) In awarding funds pursuant to this part, the state board shall prioritize geologic carbon sequestration pilot projects that do all of the following:(1) Are likely to generate the greatest net reduction in greenhouse gas emissions.(2) Represent appropriate land use and minimize potential environmental, noise, air quality, traffic, and other construction- and operation-related impacts to the community or communities in which the project is located.(3) Promote the goals of the environmental justice element of any applicable general plan pursuant to subdivision (h) of Section 65302 of the Government Code.(4) Provide benefits to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.(5) Leverage private funding sources and public-private partnership structures alongside state funding sources.(6) Utilize geologic storage reservoirs that have the least potential for leakage according to the California Geological Survey.(d) A geologic carbon sequestration pilot project funded pursuant to this part is a public works project for which prevailing wages shall be paid in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.(e) (1) The state board shall require, as a condition of funding pursuant to this part, that a recipient of funding provide an enforceable commitment to the state board that, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, all contractors and subcontractors at every tier will use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code, to perform all project work that falls within an apprenticeable occupation in the building and construction trades.(2) This subdivision shall not apply if the work is covered by a project labor agreement that requires all contractors and subcontractors at every tier to use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code.(f) No geologic carbon sequestration project that is associated with, incorporates, or connects to enhanced oil recovery or fossil fuel production shall qualify as a geologic carbon sequestration pilot project or be eligible for or receive funding under this part.(g) In awarding funds pursuant to this part, the state board may employ methods, including, but not limited to, grants, direct loans and debt instruments, loan guarantees and credit enhancements, and other forms of financial assistance. However, in awarding funds grants pursuant to this part, the state board may not only employ grants. funds that originate from nonstate sources, including, but not limited to, federal or private sources.(h) Any carbon emissions avoided as a result of a pilot project shall be in addition to, and therefore not calculated toward, the emissions reduction requirement established pursuant to Section 38566 of the Health and Safety Code.(i) (1) The state board shall annually publish on its internet website information regarding the performance of each of the pilot projects receiving financial assistance pursuant to this section. The information shall reflect data from the previous year of operation and shall include at least the following:(A) Location.(B) Carbon capture technology utilized.(C) Carbon capture efficiency in each of the following contexts:(i) Efficiency of carbon removal of the emission source at which the capture technology has been installed.(ii) Efficiency of carbon removal for the entire facility.(iii) Efficiency of the carbon removal including carbon emissions associated with the energy required to operate the capture technology.(D) Energy source.(E) Energy use.(F) Percentage of operating time compared to designed operating time.(G) Employment.(H) Cost-effectiveness relative to existing greenhouse gas emissions reductions measures.(2) An entity that submits data to the state board pursuant to this subdivision and consistent with the procedures of the state board relating to confidential information pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and in accordance with Subchapter 4 (commencing with Section 91000) of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations, may designate written materials such as trade secrets, or other information which is exempt from disclosure, as confidential.71285. (a) Before awarding funds pursuant to this part, the state board, in consultation with other state entities as needed, shall develop both of the following:(1) Guidelines for the implementation of the initiative and development of geologic carbon sequestration pilot projects consistent with Section 71283, and including, but not limited to, best practices and agreement templates for all of the following:(A) Well site, reservoir, and project site health and safety standards.(B) Technology development and transfer for future deployment of geologic carbon sequestration in the state.(C) Community benefits associated with geologic carbon sequestration, including workforce and economic development, housing and community services, and access to federal, state, and other funding sources.(D) Skilled and trained workforce, antidiscrimination, collective bargaining, dispute resolution, and other project labor standards.(2) Criteria for selection of eligible carbon sequestration pilot projects, including, but not limited to, the project eligibility and prioritization criteria listed in subdivisions (b) and (c) of Section 71283.(b) (1) (A) Before adopting the guidelines and the selection criteria described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public on the draft guidelines and selection criteria, and shall consider all comments received in adopting the guidelines and selection criteria.(B) The state board shall hold at least one public workshop in each of the following areas:(i) Northern California.(ii) The central valley.(iii) Southern California.(C) The state board shall publish the draft guidelines and selection criteria on its internet website at least 30 days before each public meeting.(2) The state board shall conduct outreach to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, to encourage residents of these communities to participate in the public workshops and submit comments pursuant to this subdivision.(3) The state board, in adopting the guidelines and selection criteria described in subdivision (a), shall consider all comments received during the public workshops held pursuant to this subdivision.(c) (1) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the state boards development and adoption of the guidelines and selection criteria pursuant to this section.(2) Guidelines and selection criteria developed by the state board pursuant to this section shall not abridge, alter, or amend any regulations or protocols issued by the state board relating to participation of a geologic carbon sequestration pilot project in any program administered by the state board.(3) Guidelines and selection criteria developed by the state board pursuant to this section shall not promote or facilitate enhanced oil recovery or fossil fuel production and shall ensure that geologic carbon sequestration pilot projects do not promote or facilitate enhanced oil recovery or fossil fuel production.(d) Upon the adoption of the guidelines and selection criteria pursuant to this section, the state board shall publish the final guidelines and selection criteria on its internet website.71287. The state board shall, upon appropriation by the Legislature, fund research regarding geologic carbon sequestration technology piloted through the initiative.71291. (a) On or before July 1, 2024, the secretary shall present a written proposal to the Legislature outlining legal standards governing agreements regarding two or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project. The proposal shall include recommended requirements for the submission of these agreements to, and the review, approval, or denial of these agreements by, an authorized state agency, and shall include, but not be limited to, all of the following: (1) Identification of the appropriate state agency for submission, review, and approval or denial of the agreements, including any legal authorization or delegation necessary.(2) A requirement that agreement proponents own title to at least an undivided three-fourths of the total interests subject to the proposed agreement.(3) Standards to determine fair and reasonable compensation for owners.(4) A requirement to make a good faith offer of compensation prior to submission of an agreement.(5) Standards for the provision of surface site access, to the extent reasonably necessary for postinjection monitoring.(6) Standards for the allocation of liability related to the geologic storage reservoir, and associated injection wells, including, but not limited to, standards regarding the liability of a surface landowner who has sold or leased all interests in the geologic storage reservoir to a geologic carbon sequestration operator.(7) Standards for imposing sufficient financial responsibility requirements in perpetuity on geologic carbon sequestration operators, operators no less stringent than the requirements set forth in Section 146.85 of Title 40 of the Code of Federal Regulations, including, but not limited to, the short-term costs of corrective actions, the cost of any liability associated with damage to drinking water supplies or seismic activity triggered by the geologic storage reservoir, and long-term costs associated with well plugging, ongoing site care and monitoring, and site closure of the geologic storage reservoir in perpetuity. reservoir. Such requirements shall require maintenance of financial responsibility instruments for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(8) Standards for allocating royalty payments associated with the leasing of a geologic storage reservoir.(9) Any other requirements necessary to comply with state or federal legal or constitutional standards.(b) In developing the written proposal required pursuant to subdivision (a), the secretary shall consult with appropriate state agencies, including, but not limited to, the Attorney General, the Geologic Energy Management Division, the California Geological Survey, the State Lands Commission, the state board, and the commission, as well as industry and legal experts, regarding applicable legal standards. The secretary shall also review other states legal standards applicable to geologic carbon sequestration projects.(c) Before submitting to the Legislature the written proposal required pursuant to subdivision (a), the secretary shall provide no less than 90 days for public comment on the proposal. The secretary shall consider all comments received during this public comment period in developing the proposal.71293. (a) Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.(b) A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.(c) (1) An instrument that transfers the rights to a geologic storage reservoir under this section shall include all of the following:(A) A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.(B) A general description of the potential location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.(C) An allocation of legal liability from the overlying surface estate owner to the geologic storage reservoir owner owner. Subsequent to the development of standards in accordance with paragraph (6) of subdivision (a) of Section 71291, such allocation shall be consistent with the standards developed in accordance with paragraph (6) of subdivision (a) of Section 71291. those standards.(2) The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.(d) Not less than 60 days before commencing development of a geologic carbon sequestration pilot project approved by the state board pursuant to this part, the geologic carbon sequestration pilot project operator shall provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project.(e) Each geologic carbon sequestration pilot project operator shall record a notation on the deed to the property, or deeds to the properties, where the geologic storage complex or geologic storage reservoir is located, or any other document that is normally examined during a title search, that will in perpetuity notify a potential purchaser of the property, or properties, that the property has, or properties have, been used to sequester carbon dioxide, the volume of carbon dioxide sequestered, the injection zone or zones into which the carbon dioxide was injected, and the dates during which injection occurred.(f) Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease before the effective date of this part.(g) This section is enacted for the limited purpose of facilitating the development of up to five geologic carbon sequestration pilot projects approved by the state board pursuant to this part, and only applies to property that is part of a geologic carbon sequestration pilot project.71295. (a) On or before January 1, 2025, the state board shall adopt regulations creating a single unified application for submission by developers or sponsors of geologic carbon sequestration pilot projects. The single unified application described in this subdivision shall solicit from applicants, and direct to relevant agencies, all information needed to obtain all approvals from state and local agencies necessary to approve a geologic carbon sequestration pilot project, as applicable, including, but not limited to: (1) The state board and local air quality management districts and air pollution control districts, for air quality and greenhouse gas matters.(2) The State Water Resources Control Board and regional water quality control boards, for underground injection and water quality matters.(3) The State Fire Marshal, for pipeline safety matters.(4) The Public Utilities Commission, for pipeline permitting matters.(5) The State Lands Commission and local zoning, land use, and planning agencies, for land use planning and leasing of publicly owned land.(6) Local zoning, land use, and planning agencies, for local land use and pore space ownership matters.(7) The State Geologist, for seismic activity monitoring and reporting matters.(b) The state board shall consult with each of the agencies described in subdivision (a), and any other state or local agencies identified by the state board, to develop the single unified application described in subdivision (a).(c) In developing the single unified application described in subdivision (a), the state board shall, where possible, do both of the following:(1) Consult with relevant federal agencies and local governments regarding the process.(2) Incorporate relevant federal permits into the process.(d) The state board shall oversee the single unified application described in subdivision (a) to minimize application burdens, but shall not abridge any direct contact between applicants and permitting agencies. The state board shall adopt regulations as necessary to implement the single unified application and ensure a streamlined application process for applicants.(e) The single unified application developed by the state board pursuant to subdivision (a) shall not eliminate, abridge, or reduce the review or issuance of the individual permits included in the application. As part of the single unified application, the state board shall, where possible, streamline duplicative administrative requirements or permit application questions.(f) The single unified application developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000)), or its implementing regulations, with respect to the review or approval of a geologic carbon sequestration pilot project.(g) The single unified application developed by the state board pursuant to subdivision (a) shall include a streamlined process for all participating agencies to assess and collect individual permit application fees, as applicable.71296. On or before January 1, 2025, the State Geologist shall adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state. The State Geologist may require changes in operations of a geologic carbon sequestration pilot project to ensure safety, including, but not limited to, a mandatory pause in operation, if monitoring and reporting detects increased seismicity.71297. (a) (1) A geologic carbon sequestration pilot project operator shall demonstrate and maintain financial responsibility sufficient, in perpetuity, sufficient to cover the short- and long-term costs associated with corrective action, well plugging, site care and site closure in perpetuity, accordance with the requirements set forth in Section 146.93 of Title 40 of the Code of Federal Regulations, emergency and remedial response, liability associated with seismic activity triggered by the reservoir, and protection of drinking water quality through financial responsibility instruments such as trust funds, surety bonds, letters of credit, insurance, self-insurance, or escrow accounts. The(2) The requirement to comply with paragraph (1) shall last for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(b) The state board shall, no later than January 1, 2025, and consistent with this section, adopt regulations for financial responsibility in accordance with this section that are no less stringent than those contained in Section 146.85 of Title 40 of the Code of Federal Regulations, as that section existed on January 1, 2023.
PART 3.9. Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act71280. This part shall be known, and may be cited, as the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.71281. For purposes of this part, the following terms have the following meanings:(a) Carbon dioxide stream means carbon dioxide captured and transported for the purpose of geologic carbon sequestration.(b) Commission means the State Energy Resources Conservation and Development Commission.(c) Geologic carbon sequestration means the capture, transportation, and permanent underground storage of carbon dioxide streams in a geologic storage complex.(d) Geologic carbon sequestration pilot project means a project for geologic carbon sequestration that is approved by the state board pursuant to the requirements of this part.(e) Geologic carbon sequestration pilot project operator means a person owning or operating a geologic carbon sequestration pilot project approved by the state board pursuant to this part.(f) Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.(g) Geologic storage reservoir means a portion of a sedimentary geologic stratum or formation containing void spaces, including depleted oil and gas reservoirs and saline formations, that is suitable for injection and permanent storage of carbon dioxide in the state.(h) Initiative means the Geologic Carbon Sequestration Demonstration Initiative developed by the state board pursuant to Section 71283.(i)Permanent means that sequestered carbon dioxide will remain within a geologic storage complex for at least 100 years.(j)(i) Secretary means the Secretary of the Natural Resources Agency.(k)(j) State board means the State Air Resources Board.71283. (a) The state board shall develop and administer the Geologic Carbon Sequestration Demonstration Initiative to do all of the following:(1) Evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production.(2) Enhance air quality and reduce greenhouse gas emissions.(3) Promote workforce and community benefits.(b) The state board, in consultation with the commission and the State Water Resources Control Board, shall award funding under the initiative to at least one, and no more than five, geologic carbon sequestration pilot projects that each do all of the following:(1) Demonstrate the feasibility of one or more geologic carbon sequestration strategies by facilitating the capture, removal, and geologic sequestration of carbon dioxide generated at one or more existing cement production facilities in the state to one or more geologic storage complexes.(2) Achieve the capability to annually sequester at least 1,000,000 metric tons of carbon dioxide equivalent in greenhouse gas emissions or as close to this requirement as possible. (3) Achieve the capability to permanently sequester carbon dioxide in a geologic storage complex at a total capacity of at least 50,000,000 metric tons of carbon dioxide equivalent or as close to this requirement as possible. (4) Incorporate strategies to reduce copollutant emissions from a cement production facility participating in the project to ensure that the facility does not result in any increased emissions of criteria air pollutant or toxic air contaminant in the community.(5) Incorporate strategies to ensure the geologic carbon sequestration at a geologic storage complex does not increase local water pollution or air pollution and to limit air pollution from construction- and transportation-related impacts from the project in community or communities adjacent to geologic storage complexes used for the project.(6) Incorporate all of the following:(A) Strategies to minimize the risk of seismic impacts to, and from, the project, including the risk of gas leakage due to seismic activity.(B) Commitments to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide in perpetuity. for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(C) Commitments to conduct monitoring in perpetuity of sequestered carbon dioxide, including movement within the geologic storage complex, and for leaks from the complex or associated wellheads. wellheads, for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(7) Include monitoring and reporting schedules to state regulatory agencies in perpetuity. for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(8) Promote workforce development and create employment opportunities in the community or communities in which the project is located.(9) Advance the states net-zero cement industry goal and the strategy developed by the state board pursuant to Section 38561.2 of the Health and Safety Code.(10) Include an infrastructure path for construction of, or reuse of existing, pipelines to connect geologic storage complexes to carbon dioxide sources. A geologic carbon sequestration pilot project shall not receive carbon dioxide streams from a pipeline until the federal Pipeline and Hazardous Materials Safety Administration has concluded the rulemaking (RIN 2137-AF60) regarding minimum federal safety standards for transportation of carbon dioxide by pipeline (Part 192 (commencing with Section 192.1) of Title 49 of the Code of Federal Regulations) and the geologic carbon sequestration pilot project operator demonstrates that the pipeline meets those standards.(11)Begin construction before January 1, 2026.(c) In awarding funds pursuant to this part, the state board shall prioritize geologic carbon sequestration pilot projects that do all of the following:(1) Are likely to generate the greatest net reduction in greenhouse gas emissions.(2) Represent appropriate land use and minimize potential environmental, noise, air quality, traffic, and other construction- and operation-related impacts to the community or communities in which the project is located.(3) Promote the goals of the environmental justice element of any applicable general plan pursuant to subdivision (h) of Section 65302 of the Government Code.(4) Provide benefits to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.(5) Leverage private funding sources and public-private partnership structures alongside state funding sources.(6) Utilize geologic storage reservoirs that have the least potential for leakage according to the California Geological Survey.(d) A geologic carbon sequestration pilot project funded pursuant to this part is a public works project for which prevailing wages shall be paid in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.(e) (1) The state board shall require, as a condition of funding pursuant to this part, that a recipient of funding provide an enforceable commitment to the state board that, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, all contractors and subcontractors at every tier will use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code, to perform all project work that falls within an apprenticeable occupation in the building and construction trades.(2) This subdivision shall not apply if the work is covered by a project labor agreement that requires all contractors and subcontractors at every tier to use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code.(f) No geologic carbon sequestration project that is associated with, incorporates, or connects to enhanced oil recovery or fossil fuel production shall qualify as a geologic carbon sequestration pilot project or be eligible for or receive funding under this part.(g) In awarding funds pursuant to this part, the state board may employ methods, including, but not limited to, grants, direct loans and debt instruments, loan guarantees and credit enhancements, and other forms of financial assistance. However, in awarding funds grants pursuant to this part, the state board may not only employ grants. funds that originate from nonstate sources, including, but not limited to, federal or private sources.(h) Any carbon emissions avoided as a result of a pilot project shall be in addition to, and therefore not calculated toward, the emissions reduction requirement established pursuant to Section 38566 of the Health and Safety Code.(i) (1) The state board shall annually publish on its internet website information regarding the performance of each of the pilot projects receiving financial assistance pursuant to this section. The information shall reflect data from the previous year of operation and shall include at least the following:(A) Location.(B) Carbon capture technology utilized.(C) Carbon capture efficiency in each of the following contexts:(i) Efficiency of carbon removal of the emission source at which the capture technology has been installed.(ii) Efficiency of carbon removal for the entire facility.(iii) Efficiency of the carbon removal including carbon emissions associated with the energy required to operate the capture technology.(D) Energy source.(E) Energy use.(F) Percentage of operating time compared to designed operating time.(G) Employment.(H) Cost-effectiveness relative to existing greenhouse gas emissions reductions measures.(2) An entity that submits data to the state board pursuant to this subdivision and consistent with the procedures of the state board relating to confidential information pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and in accordance with Subchapter 4 (commencing with Section 91000) of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations, may designate written materials such as trade secrets, or other information which is exempt from disclosure, as confidential.71285. (a) Before awarding funds pursuant to this part, the state board, in consultation with other state entities as needed, shall develop both of the following:(1) Guidelines for the implementation of the initiative and development of geologic carbon sequestration pilot projects consistent with Section 71283, and including, but not limited to, best practices and agreement templates for all of the following:(A) Well site, reservoir, and project site health and safety standards.(B) Technology development and transfer for future deployment of geologic carbon sequestration in the state.(C) Community benefits associated with geologic carbon sequestration, including workforce and economic development, housing and community services, and access to federal, state, and other funding sources.(D) Skilled and trained workforce, antidiscrimination, collective bargaining, dispute resolution, and other project labor standards.(2) Criteria for selection of eligible carbon sequestration pilot projects, including, but not limited to, the project eligibility and prioritization criteria listed in subdivisions (b) and (c) of Section 71283.(b) (1) (A) Before adopting the guidelines and the selection criteria described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public on the draft guidelines and selection criteria, and shall consider all comments received in adopting the guidelines and selection criteria.(B) The state board shall hold at least one public workshop in each of the following areas:(i) Northern California.(ii) The central valley.(iii) Southern California.(C) The state board shall publish the draft guidelines and selection criteria on its internet website at least 30 days before each public meeting.(2) The state board shall conduct outreach to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, to encourage residents of these communities to participate in the public workshops and submit comments pursuant to this subdivision.(3) The state board, in adopting the guidelines and selection criteria described in subdivision (a), shall consider all comments received during the public workshops held pursuant to this subdivision.(c) (1) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the state boards development and adoption of the guidelines and selection criteria pursuant to this section.(2) Guidelines and selection criteria developed by the state board pursuant to this section shall not abridge, alter, or amend any regulations or protocols issued by the state board relating to participation of a geologic carbon sequestration pilot project in any program administered by the state board.(3) Guidelines and selection criteria developed by the state board pursuant to this section shall not promote or facilitate enhanced oil recovery or fossil fuel production and shall ensure that geologic carbon sequestration pilot projects do not promote or facilitate enhanced oil recovery or fossil fuel production.(d) Upon the adoption of the guidelines and selection criteria pursuant to this section, the state board shall publish the final guidelines and selection criteria on its internet website.71287. The state board shall, upon appropriation by the Legislature, fund research regarding geologic carbon sequestration technology piloted through the initiative.71291. (a) On or before July 1, 2024, the secretary shall present a written proposal to the Legislature outlining legal standards governing agreements regarding two or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project. The proposal shall include recommended requirements for the submission of these agreements to, and the review, approval, or denial of these agreements by, an authorized state agency, and shall include, but not be limited to, all of the following: (1) Identification of the appropriate state agency for submission, review, and approval or denial of the agreements, including any legal authorization or delegation necessary.(2) A requirement that agreement proponents own title to at least an undivided three-fourths of the total interests subject to the proposed agreement.(3) Standards to determine fair and reasonable compensation for owners.(4) A requirement to make a good faith offer of compensation prior to submission of an agreement.(5) Standards for the provision of surface site access, to the extent reasonably necessary for postinjection monitoring.(6) Standards for the allocation of liability related to the geologic storage reservoir, and associated injection wells, including, but not limited to, standards regarding the liability of a surface landowner who has sold or leased all interests in the geologic storage reservoir to a geologic carbon sequestration operator.(7) Standards for imposing sufficient financial responsibility requirements in perpetuity on geologic carbon sequestration operators, operators no less stringent than the requirements set forth in Section 146.85 of Title 40 of the Code of Federal Regulations, including, but not limited to, the short-term costs of corrective actions, the cost of any liability associated with damage to drinking water supplies or seismic activity triggered by the geologic storage reservoir, and long-term costs associated with well plugging, ongoing site care and monitoring, and site closure of the geologic storage reservoir in perpetuity. reservoir. Such requirements shall require maintenance of financial responsibility instruments for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(8) Standards for allocating royalty payments associated with the leasing of a geologic storage reservoir.(9) Any other requirements necessary to comply with state or federal legal or constitutional standards.(b) In developing the written proposal required pursuant to subdivision (a), the secretary shall consult with appropriate state agencies, including, but not limited to, the Attorney General, the Geologic Energy Management Division, the California Geological Survey, the State Lands Commission, the state board, and the commission, as well as industry and legal experts, regarding applicable legal standards. The secretary shall also review other states legal standards applicable to geologic carbon sequestration projects.(c) Before submitting to the Legislature the written proposal required pursuant to subdivision (a), the secretary shall provide no less than 90 days for public comment on the proposal. The secretary shall consider all comments received during this public comment period in developing the proposal.71293. (a) Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.(b) A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.(c) (1) An instrument that transfers the rights to a geologic storage reservoir under this section shall include all of the following:(A) A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.(B) A general description of the potential location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.(C) An allocation of legal liability from the overlying surface estate owner to the geologic storage reservoir owner owner. Subsequent to the development of standards in accordance with paragraph (6) of subdivision (a) of Section 71291, such allocation shall be consistent with the standards developed in accordance with paragraph (6) of subdivision (a) of Section 71291. those standards.(2) The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.(d) Not less than 60 days before commencing development of a geologic carbon sequestration pilot project approved by the state board pursuant to this part, the geologic carbon sequestration pilot project operator shall provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project.(e) Each geologic carbon sequestration pilot project operator shall record a notation on the deed to the property, or deeds to the properties, where the geologic storage complex or geologic storage reservoir is located, or any other document that is normally examined during a title search, that will in perpetuity notify a potential purchaser of the property, or properties, that the property has, or properties have, been used to sequester carbon dioxide, the volume of carbon dioxide sequestered, the injection zone or zones into which the carbon dioxide was injected, and the dates during which injection occurred.(f) Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease before the effective date of this part.(g) This section is enacted for the limited purpose of facilitating the development of up to five geologic carbon sequestration pilot projects approved by the state board pursuant to this part, and only applies to property that is part of a geologic carbon sequestration pilot project.71295. (a) On or before January 1, 2025, the state board shall adopt regulations creating a single unified application for submission by developers or sponsors of geologic carbon sequestration pilot projects. The single unified application described in this subdivision shall solicit from applicants, and direct to relevant agencies, all information needed to obtain all approvals from state and local agencies necessary to approve a geologic carbon sequestration pilot project, as applicable, including, but not limited to: (1) The state board and local air quality management districts and air pollution control districts, for air quality and greenhouse gas matters.(2) The State Water Resources Control Board and regional water quality control boards, for underground injection and water quality matters.(3) The State Fire Marshal, for pipeline safety matters.(4) The Public Utilities Commission, for pipeline permitting matters.(5) The State Lands Commission and local zoning, land use, and planning agencies, for land use planning and leasing of publicly owned land.(6) Local zoning, land use, and planning agencies, for local land use and pore space ownership matters.(7) The State Geologist, for seismic activity monitoring and reporting matters.(b) The state board shall consult with each of the agencies described in subdivision (a), and any other state or local agencies identified by the state board, to develop the single unified application described in subdivision (a).(c) In developing the single unified application described in subdivision (a), the state board shall, where possible, do both of the following:(1) Consult with relevant federal agencies and local governments regarding the process.(2) Incorporate relevant federal permits into the process.(d) The state board shall oversee the single unified application described in subdivision (a) to minimize application burdens, but shall not abridge any direct contact between applicants and permitting agencies. The state board shall adopt regulations as necessary to implement the single unified application and ensure a streamlined application process for applicants.(e) The single unified application developed by the state board pursuant to subdivision (a) shall not eliminate, abridge, or reduce the review or issuance of the individual permits included in the application. As part of the single unified application, the state board shall, where possible, streamline duplicative administrative requirements or permit application questions.(f) The single unified application developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000)), or its implementing regulations, with respect to the review or approval of a geologic carbon sequestration pilot project.(g) The single unified application developed by the state board pursuant to subdivision (a) shall include a streamlined process for all participating agencies to assess and collect individual permit application fees, as applicable.71296. On or before January 1, 2025, the State Geologist shall adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state. The State Geologist may require changes in operations of a geologic carbon sequestration pilot project to ensure safety, including, but not limited to, a mandatory pause in operation, if monitoring and reporting detects increased seismicity.71297. (a) (1) A geologic carbon sequestration pilot project operator shall demonstrate and maintain financial responsibility sufficient, in perpetuity, sufficient to cover the short- and long-term costs associated with corrective action, well plugging, site care and site closure in perpetuity, accordance with the requirements set forth in Section 146.93 of Title 40 of the Code of Federal Regulations, emergency and remedial response, liability associated with seismic activity triggered by the reservoir, and protection of drinking water quality through financial responsibility instruments such as trust funds, surety bonds, letters of credit, insurance, self-insurance, or escrow accounts. The(2) The requirement to comply with paragraph (1) shall last for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(b) The state board shall, no later than January 1, 2025, and consistent with this section, adopt regulations for financial responsibility in accordance with this section that are no less stringent than those contained in Section 146.85 of Title 40 of the Code of Federal Regulations, as that section existed on January 1, 2023.
PART 3.9. Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act
PART 3.9. Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act
71280. This part shall be known, and may be cited, as the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.
71280. This part shall be known, and may be cited, as the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.
71281. For purposes of this part, the following terms have the following meanings:(a) Carbon dioxide stream means carbon dioxide captured and transported for the purpose of geologic carbon sequestration.(b) Commission means the State Energy Resources Conservation and Development Commission.(c) Geologic carbon sequestration means the capture, transportation, and permanent underground storage of carbon dioxide streams in a geologic storage complex.(d) Geologic carbon sequestration pilot project means a project for geologic carbon sequestration that is approved by the state board pursuant to the requirements of this part.(e) Geologic carbon sequestration pilot project operator means a person owning or operating a geologic carbon sequestration pilot project approved by the state board pursuant to this part.(f) Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.(g) Geologic storage reservoir means a portion of a sedimentary geologic stratum or formation containing void spaces, including depleted oil and gas reservoirs and saline formations, that is suitable for injection and permanent storage of carbon dioxide in the state.(h) Initiative means the Geologic Carbon Sequestration Demonstration Initiative developed by the state board pursuant to Section 71283.(i)Permanent means that sequestered carbon dioxide will remain within a geologic storage complex for at least 100 years.(j)(i) Secretary means the Secretary of the Natural Resources Agency.(k)(j) State board means the State Air Resources Board.
71281. For purposes of this part, the following terms have the following meanings:
(a) Carbon dioxide stream means carbon dioxide captured and transported for the purpose of geologic carbon sequestration.
(b) Commission means the State Energy Resources Conservation and Development Commission.
(c) Geologic carbon sequestration means the capture, transportation, and permanent underground storage of carbon dioxide streams in a geologic storage complex.
(d) Geologic carbon sequestration pilot project means a project for geologic carbon sequestration that is approved by the state board pursuant to the requirements of this part.
(e) Geologic carbon sequestration pilot project operator means a person owning or operating a geologic carbon sequestration pilot project approved by the state board pursuant to this part.
(f) Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.
(g) Geologic storage reservoir means a portion of a sedimentary geologic stratum or formation containing void spaces, including depleted oil and gas reservoirs and saline formations, that is suitable for injection and permanent storage of carbon dioxide in the state.
(h) Initiative means the Geologic Carbon Sequestration Demonstration Initiative developed by the state board pursuant to Section 71283.
(i)Permanent means that sequestered carbon dioxide will remain within a geologic storage complex for at least 100 years.
(j)
(i) Secretary means the Secretary of the Natural Resources Agency.
(k)
(j) State board means the State Air Resources Board.
71283. (a) The state board shall develop and administer the Geologic Carbon Sequestration Demonstration Initiative to do all of the following:(1) Evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production.(2) Enhance air quality and reduce greenhouse gas emissions.(3) Promote workforce and community benefits.(b) The state board, in consultation with the commission and the State Water Resources Control Board, shall award funding under the initiative to at least one, and no more than five, geologic carbon sequestration pilot projects that each do all of the following:(1) Demonstrate the feasibility of one or more geologic carbon sequestration strategies by facilitating the capture, removal, and geologic sequestration of carbon dioxide generated at one or more existing cement production facilities in the state to one or more geologic storage complexes.(2) Achieve the capability to annually sequester at least 1,000,000 metric tons of carbon dioxide equivalent in greenhouse gas emissions or as close to this requirement as possible. (3) Achieve the capability to permanently sequester carbon dioxide in a geologic storage complex at a total capacity of at least 50,000,000 metric tons of carbon dioxide equivalent or as close to this requirement as possible. (4) Incorporate strategies to reduce copollutant emissions from a cement production facility participating in the project to ensure that the facility does not result in any increased emissions of criteria air pollutant or toxic air contaminant in the community.(5) Incorporate strategies to ensure the geologic carbon sequestration at a geologic storage complex does not increase local water pollution or air pollution and to limit air pollution from construction- and transportation-related impacts from the project in community or communities adjacent to geologic storage complexes used for the project.(6) Incorporate all of the following:(A) Strategies to minimize the risk of seismic impacts to, and from, the project, including the risk of gas leakage due to seismic activity.(B) Commitments to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide in perpetuity. for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(C) Commitments to conduct monitoring in perpetuity of sequestered carbon dioxide, including movement within the geologic storage complex, and for leaks from the complex or associated wellheads. wellheads, for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(7) Include monitoring and reporting schedules to state regulatory agencies in perpetuity. for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(8) Promote workforce development and create employment opportunities in the community or communities in which the project is located.(9) Advance the states net-zero cement industry goal and the strategy developed by the state board pursuant to Section 38561.2 of the Health and Safety Code.(10) Include an infrastructure path for construction of, or reuse of existing, pipelines to connect geologic storage complexes to carbon dioxide sources. A geologic carbon sequestration pilot project shall not receive carbon dioxide streams from a pipeline until the federal Pipeline and Hazardous Materials Safety Administration has concluded the rulemaking (RIN 2137-AF60) regarding minimum federal safety standards for transportation of carbon dioxide by pipeline (Part 192 (commencing with Section 192.1) of Title 49 of the Code of Federal Regulations) and the geologic carbon sequestration pilot project operator demonstrates that the pipeline meets those standards.(11)Begin construction before January 1, 2026.(c) In awarding funds pursuant to this part, the state board shall prioritize geologic carbon sequestration pilot projects that do all of the following:(1) Are likely to generate the greatest net reduction in greenhouse gas emissions.(2) Represent appropriate land use and minimize potential environmental, noise, air quality, traffic, and other construction- and operation-related impacts to the community or communities in which the project is located.(3) Promote the goals of the environmental justice element of any applicable general plan pursuant to subdivision (h) of Section 65302 of the Government Code.(4) Provide benefits to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.(5) Leverage private funding sources and public-private partnership structures alongside state funding sources.(6) Utilize geologic storage reservoirs that have the least potential for leakage according to the California Geological Survey.(d) A geologic carbon sequestration pilot project funded pursuant to this part is a public works project for which prevailing wages shall be paid in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.(e) (1) The state board shall require, as a condition of funding pursuant to this part, that a recipient of funding provide an enforceable commitment to the state board that, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, all contractors and subcontractors at every tier will use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code, to perform all project work that falls within an apprenticeable occupation in the building and construction trades.(2) This subdivision shall not apply if the work is covered by a project labor agreement that requires all contractors and subcontractors at every tier to use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code.(f) No geologic carbon sequestration project that is associated with, incorporates, or connects to enhanced oil recovery or fossil fuel production shall qualify as a geologic carbon sequestration pilot project or be eligible for or receive funding under this part.(g) In awarding funds pursuant to this part, the state board may employ methods, including, but not limited to, grants, direct loans and debt instruments, loan guarantees and credit enhancements, and other forms of financial assistance. However, in awarding funds grants pursuant to this part, the state board may not only employ grants. funds that originate from nonstate sources, including, but not limited to, federal or private sources.(h) Any carbon emissions avoided as a result of a pilot project shall be in addition to, and therefore not calculated toward, the emissions reduction requirement established pursuant to Section 38566 of the Health and Safety Code.(i) (1) The state board shall annually publish on its internet website information regarding the performance of each of the pilot projects receiving financial assistance pursuant to this section. The information shall reflect data from the previous year of operation and shall include at least the following:(A) Location.(B) Carbon capture technology utilized.(C) Carbon capture efficiency in each of the following contexts:(i) Efficiency of carbon removal of the emission source at which the capture technology has been installed.(ii) Efficiency of carbon removal for the entire facility.(iii) Efficiency of the carbon removal including carbon emissions associated with the energy required to operate the capture technology.(D) Energy source.(E) Energy use.(F) Percentage of operating time compared to designed operating time.(G) Employment.(H) Cost-effectiveness relative to existing greenhouse gas emissions reductions measures.(2) An entity that submits data to the state board pursuant to this subdivision and consistent with the procedures of the state board relating to confidential information pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and in accordance with Subchapter 4 (commencing with Section 91000) of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations, may designate written materials such as trade secrets, or other information which is exempt from disclosure, as confidential.
71283. (a) The state board shall develop and administer the Geologic Carbon Sequestration Demonstration Initiative to do all of the following:
(1) Evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production.
(2) Enhance air quality and reduce greenhouse gas emissions.
(3) Promote workforce and community benefits.
(b) The state board, in consultation with the commission and the State Water Resources Control Board, shall award funding under the initiative to at least one, and no more than five, geologic carbon sequestration pilot projects that each do all of the following:
(1) Demonstrate the feasibility of one or more geologic carbon sequestration strategies by facilitating the capture, removal, and geologic sequestration of carbon dioxide generated at one or more existing cement production facilities in the state to one or more geologic storage complexes.
(2) Achieve the capability to annually sequester at least 1,000,000 metric tons of carbon dioxide equivalent in greenhouse gas emissions or as close to this requirement as possible.
(3) Achieve the capability to permanently sequester carbon dioxide in a geologic storage complex at a total capacity of at least 50,000,000 metric tons of carbon dioxide equivalent or as close to this requirement as possible.
(4) Incorporate strategies to reduce copollutant emissions from a cement production facility participating in the project to ensure that the facility does not result in any increased emissions of criteria air pollutant or toxic air contaminant in the community.
(5) Incorporate strategies to ensure the geologic carbon sequestration at a geologic storage complex does not increase local water pollution or air pollution and to limit air pollution from construction- and transportation-related impacts from the project in community or communities adjacent to geologic storage complexes used for the project.
(6) Incorporate all of the following:
(A) Strategies to minimize the risk of seismic impacts to, and from, the project, including the risk of gas leakage due to seismic activity.
(B) Commitments to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide in perpetuity. for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.
(C) Commitments to conduct monitoring in perpetuity of sequestered carbon dioxide, including movement within the geologic storage complex, and for leaks from the complex or associated wellheads. wellheads, for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.
(7) Include monitoring and reporting schedules to state regulatory agencies in perpetuity. for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.
(8) Promote workforce development and create employment opportunities in the community or communities in which the project is located.
(9) Advance the states net-zero cement industry goal and the strategy developed by the state board pursuant to Section 38561.2 of the Health and Safety Code.
(10) Include an infrastructure path for construction of, or reuse of existing, pipelines to connect geologic storage complexes to carbon dioxide sources. A geologic carbon sequestration pilot project shall not receive carbon dioxide streams from a pipeline until the federal Pipeline and Hazardous Materials Safety Administration has concluded the rulemaking (RIN 2137-AF60) regarding minimum federal safety standards for transportation of carbon dioxide by pipeline (Part 192 (commencing with Section 192.1) of Title 49 of the Code of Federal Regulations) and the geologic carbon sequestration pilot project operator demonstrates that the pipeline meets those standards.
(11)Begin construction before January 1, 2026.
(c) In awarding funds pursuant to this part, the state board shall prioritize geologic carbon sequestration pilot projects that do all of the following:
(1) Are likely to generate the greatest net reduction in greenhouse gas emissions.
(2) Represent appropriate land use and minimize potential environmental, noise, air quality, traffic, and other construction- and operation-related impacts to the community or communities in which the project is located.
(3) Promote the goals of the environmental justice element of any applicable general plan pursuant to subdivision (h) of Section 65302 of the Government Code.
(4) Provide benefits to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.
(5) Leverage private funding sources and public-private partnership structures alongside state funding sources.
(6) Utilize geologic storage reservoirs that have the least potential for leakage according to the California Geological Survey.
(d) A geologic carbon sequestration pilot project funded pursuant to this part is a public works project for which prevailing wages shall be paid in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(e) (1) The state board shall require, as a condition of funding pursuant to this part, that a recipient of funding provide an enforceable commitment to the state board that, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, all contractors and subcontractors at every tier will use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code, to perform all project work that falls within an apprenticeable occupation in the building and construction trades.
(2) This subdivision shall not apply if the work is covered by a project labor agreement that requires all contractors and subcontractors at every tier to use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code.
(f) No geologic carbon sequestration project that is associated with, incorporates, or connects to enhanced oil recovery or fossil fuel production shall qualify as a geologic carbon sequestration pilot project or be eligible for or receive funding under this part.
(g) In awarding funds pursuant to this part, the state board may employ methods, including, but not limited to, grants, direct loans and debt instruments, loan guarantees and credit enhancements, and other forms of financial assistance. However, in awarding funds grants pursuant to this part, the state board may not only employ grants. funds that originate from nonstate sources, including, but not limited to, federal or private sources.
(h) Any carbon emissions avoided as a result of a pilot project shall be in addition to, and therefore not calculated toward, the emissions reduction requirement established pursuant to Section 38566 of the Health and Safety Code.
(i) (1) The state board shall annually publish on its internet website information regarding the performance of each of the pilot projects receiving financial assistance pursuant to this section. The information shall reflect data from the previous year of operation and shall include at least the following:
(A) Location.
(B) Carbon capture technology utilized.
(C) Carbon capture efficiency in each of the following contexts:
(i) Efficiency of carbon removal of the emission source at which the capture technology has been installed.
(ii) Efficiency of carbon removal for the entire facility.
(iii) Efficiency of the carbon removal including carbon emissions associated with the energy required to operate the capture technology.
(D) Energy source.
(E) Energy use.
(F) Percentage of operating time compared to designed operating time.
(G) Employment.
(H) Cost-effectiveness relative to existing greenhouse gas emissions reductions measures.
(2) An entity that submits data to the state board pursuant to this subdivision and consistent with the procedures of the state board relating to confidential information pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and in accordance with Subchapter 4 (commencing with Section 91000) of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations, may designate written materials such as trade secrets, or other information which is exempt from disclosure, as confidential.
71285. (a) Before awarding funds pursuant to this part, the state board, in consultation with other state entities as needed, shall develop both of the following:(1) Guidelines for the implementation of the initiative and development of geologic carbon sequestration pilot projects consistent with Section 71283, and including, but not limited to, best practices and agreement templates for all of the following:(A) Well site, reservoir, and project site health and safety standards.(B) Technology development and transfer for future deployment of geologic carbon sequestration in the state.(C) Community benefits associated with geologic carbon sequestration, including workforce and economic development, housing and community services, and access to federal, state, and other funding sources.(D) Skilled and trained workforce, antidiscrimination, collective bargaining, dispute resolution, and other project labor standards.(2) Criteria for selection of eligible carbon sequestration pilot projects, including, but not limited to, the project eligibility and prioritization criteria listed in subdivisions (b) and (c) of Section 71283.(b) (1) (A) Before adopting the guidelines and the selection criteria described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public on the draft guidelines and selection criteria, and shall consider all comments received in adopting the guidelines and selection criteria.(B) The state board shall hold at least one public workshop in each of the following areas:(i) Northern California.(ii) The central valley.(iii) Southern California.(C) The state board shall publish the draft guidelines and selection criteria on its internet website at least 30 days before each public meeting.(2) The state board shall conduct outreach to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, to encourage residents of these communities to participate in the public workshops and submit comments pursuant to this subdivision.(3) The state board, in adopting the guidelines and selection criteria described in subdivision (a), shall consider all comments received during the public workshops held pursuant to this subdivision.(c) (1) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the state boards development and adoption of the guidelines and selection criteria pursuant to this section.(2) Guidelines and selection criteria developed by the state board pursuant to this section shall not abridge, alter, or amend any regulations or protocols issued by the state board relating to participation of a geologic carbon sequestration pilot project in any program administered by the state board.(3) Guidelines and selection criteria developed by the state board pursuant to this section shall not promote or facilitate enhanced oil recovery or fossil fuel production and shall ensure that geologic carbon sequestration pilot projects do not promote or facilitate enhanced oil recovery or fossil fuel production.(d) Upon the adoption of the guidelines and selection criteria pursuant to this section, the state board shall publish the final guidelines and selection criteria on its internet website.
71285. (a) Before awarding funds pursuant to this part, the state board, in consultation with other state entities as needed, shall develop both of the following:
(1) Guidelines for the implementation of the initiative and development of geologic carbon sequestration pilot projects consistent with Section 71283, and including, but not limited to, best practices and agreement templates for all of the following:
(A) Well site, reservoir, and project site health and safety standards.
(B) Technology development and transfer for future deployment of geologic carbon sequestration in the state.
(C) Community benefits associated with geologic carbon sequestration, including workforce and economic development, housing and community services, and access to federal, state, and other funding sources.
(D) Skilled and trained workforce, antidiscrimination, collective bargaining, dispute resolution, and other project labor standards.
(2) Criteria for selection of eligible carbon sequestration pilot projects, including, but not limited to, the project eligibility and prioritization criteria listed in subdivisions (b) and (c) of Section 71283.
(b) (1) (A) Before adopting the guidelines and the selection criteria described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public on the draft guidelines and selection criteria, and shall consider all comments received in adopting the guidelines and selection criteria.
(B) The state board shall hold at least one public workshop in each of the following areas:
(i) Northern California.
(ii) The central valley.
(iii) Southern California.
(C) The state board shall publish the draft guidelines and selection criteria on its internet website at least 30 days before each public meeting.
(2) The state board shall conduct outreach to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, to encourage residents of these communities to participate in the public workshops and submit comments pursuant to this subdivision.
(3) The state board, in adopting the guidelines and selection criteria described in subdivision (a), shall consider all comments received during the public workshops held pursuant to this subdivision.
(c) (1) Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the state boards development and adoption of the guidelines and selection criteria pursuant to this section.
(2) Guidelines and selection criteria developed by the state board pursuant to this section shall not abridge, alter, or amend any regulations or protocols issued by the state board relating to participation of a geologic carbon sequestration pilot project in any program administered by the state board.
(3) Guidelines and selection criteria developed by the state board pursuant to this section shall not promote or facilitate enhanced oil recovery or fossil fuel production and shall ensure that geologic carbon sequestration pilot projects do not promote or facilitate enhanced oil recovery or fossil fuel production.
(d) Upon the adoption of the guidelines and selection criteria pursuant to this section, the state board shall publish the final guidelines and selection criteria on its internet website.
71287. The state board shall, upon appropriation by the Legislature, fund research regarding geologic carbon sequestration technology piloted through the initiative.
71287. The state board shall, upon appropriation by the Legislature, fund research regarding geologic carbon sequestration technology piloted through the initiative.
71291. (a) On or before July 1, 2024, the secretary shall present a written proposal to the Legislature outlining legal standards governing agreements regarding two or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project. The proposal shall include recommended requirements for the submission of these agreements to, and the review, approval, or denial of these agreements by, an authorized state agency, and shall include, but not be limited to, all of the following: (1) Identification of the appropriate state agency for submission, review, and approval or denial of the agreements, including any legal authorization or delegation necessary.(2) A requirement that agreement proponents own title to at least an undivided three-fourths of the total interests subject to the proposed agreement.(3) Standards to determine fair and reasonable compensation for owners.(4) A requirement to make a good faith offer of compensation prior to submission of an agreement.(5) Standards for the provision of surface site access, to the extent reasonably necessary for postinjection monitoring.(6) Standards for the allocation of liability related to the geologic storage reservoir, and associated injection wells, including, but not limited to, standards regarding the liability of a surface landowner who has sold or leased all interests in the geologic storage reservoir to a geologic carbon sequestration operator.(7) Standards for imposing sufficient financial responsibility requirements in perpetuity on geologic carbon sequestration operators, operators no less stringent than the requirements set forth in Section 146.85 of Title 40 of the Code of Federal Regulations, including, but not limited to, the short-term costs of corrective actions, the cost of any liability associated with damage to drinking water supplies or seismic activity triggered by the geologic storage reservoir, and long-term costs associated with well plugging, ongoing site care and monitoring, and site closure of the geologic storage reservoir in perpetuity. reservoir. Such requirements shall require maintenance of financial responsibility instruments for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(8) Standards for allocating royalty payments associated with the leasing of a geologic storage reservoir.(9) Any other requirements necessary to comply with state or federal legal or constitutional standards.(b) In developing the written proposal required pursuant to subdivision (a), the secretary shall consult with appropriate state agencies, including, but not limited to, the Attorney General, the Geologic Energy Management Division, the California Geological Survey, the State Lands Commission, the state board, and the commission, as well as industry and legal experts, regarding applicable legal standards. The secretary shall also review other states legal standards applicable to geologic carbon sequestration projects.(c) Before submitting to the Legislature the written proposal required pursuant to subdivision (a), the secretary shall provide no less than 90 days for public comment on the proposal. The secretary shall consider all comments received during this public comment period in developing the proposal.
71291. (a) On or before July 1, 2024, the secretary shall present a written proposal to the Legislature outlining legal standards governing agreements regarding two or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project. The proposal shall include recommended requirements for the submission of these agreements to, and the review, approval, or denial of these agreements by, an authorized state agency, and shall include, but not be limited to, all of the following:
(1) Identification of the appropriate state agency for submission, review, and approval or denial of the agreements, including any legal authorization or delegation necessary.
(2) A requirement that agreement proponents own title to at least an undivided three-fourths of the total interests subject to the proposed agreement.
(3) Standards to determine fair and reasonable compensation for owners.
(4) A requirement to make a good faith offer of compensation prior to submission of an agreement.
(5) Standards for the provision of surface site access, to the extent reasonably necessary for postinjection monitoring.
(6) Standards for the allocation of liability related to the geologic storage reservoir, and associated injection wells, including, but not limited to, standards regarding the liability of a surface landowner who has sold or leased all interests in the geologic storage reservoir to a geologic carbon sequestration operator.
(7) Standards for imposing sufficient financial responsibility requirements in perpetuity on geologic carbon sequestration operators, operators no less stringent than the requirements set forth in Section 146.85 of Title 40 of the Code of Federal Regulations, including, but not limited to, the short-term costs of corrective actions, the cost of any liability associated with damage to drinking water supplies or seismic activity triggered by the geologic storage reservoir, and long-term costs associated with well plugging, ongoing site care and monitoring, and site closure of the geologic storage reservoir in perpetuity. reservoir. Such requirements shall require maintenance of financial responsibility instruments for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.
(8) Standards for allocating royalty payments associated with the leasing of a geologic storage reservoir.
(9) Any other requirements necessary to comply with state or federal legal or constitutional standards.
(b) In developing the written proposal required pursuant to subdivision (a), the secretary shall consult with appropriate state agencies, including, but not limited to, the Attorney General, the Geologic Energy Management Division, the California Geological Survey, the State Lands Commission, the state board, and the commission, as well as industry and legal experts, regarding applicable legal standards. The secretary shall also review other states legal standards applicable to geologic carbon sequestration projects.
(c) Before submitting to the Legislature the written proposal required pursuant to subdivision (a), the secretary shall provide no less than 90 days for public comment on the proposal. The secretary shall consider all comments received during this public comment period in developing the proposal.
71293. (a) Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.(b) A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.(c) (1) An instrument that transfers the rights to a geologic storage reservoir under this section shall include all of the following:(A) A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.(B) A general description of the potential location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.(C) An allocation of legal liability from the overlying surface estate owner to the geologic storage reservoir owner owner. Subsequent to the development of standards in accordance with paragraph (6) of subdivision (a) of Section 71291, such allocation shall be consistent with the standards developed in accordance with paragraph (6) of subdivision (a) of Section 71291. those standards.(2) The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.(d) Not less than 60 days before commencing development of a geologic carbon sequestration pilot project approved by the state board pursuant to this part, the geologic carbon sequestration pilot project operator shall provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project.(e) Each geologic carbon sequestration pilot project operator shall record a notation on the deed to the property, or deeds to the properties, where the geologic storage complex or geologic storage reservoir is located, or any other document that is normally examined during a title search, that will in perpetuity notify a potential purchaser of the property, or properties, that the property has, or properties have, been used to sequester carbon dioxide, the volume of carbon dioxide sequestered, the injection zone or zones into which the carbon dioxide was injected, and the dates during which injection occurred.(f) Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease before the effective date of this part.(g) This section is enacted for the limited purpose of facilitating the development of up to five geologic carbon sequestration pilot projects approved by the state board pursuant to this part, and only applies to property that is part of a geologic carbon sequestration pilot project.
71293. (a) Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.
(b) A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.
(c) (1) An instrument that transfers the rights to a geologic storage reservoir under this section shall include all of the following:
(A) A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.
(B) A general description of the potential location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.
(C) An allocation of legal liability from the overlying surface estate owner to the geologic storage reservoir owner owner. Subsequent to the development of standards in accordance with paragraph (6) of subdivision (a) of Section 71291, such allocation shall be consistent with the standards developed in accordance with paragraph (6) of subdivision (a) of Section 71291. those standards.
(2) The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.
(d) Not less than 60 days before commencing development of a geologic carbon sequestration pilot project approved by the state board pursuant to this part, the geologic carbon sequestration pilot project operator shall provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project.
(e) Each geologic carbon sequestration pilot project operator shall record a notation on the deed to the property, or deeds to the properties, where the geologic storage complex or geologic storage reservoir is located, or any other document that is normally examined during a title search, that will in perpetuity notify a potential purchaser of the property, or properties, that the property has, or properties have, been used to sequester carbon dioxide, the volume of carbon dioxide sequestered, the injection zone or zones into which the carbon dioxide was injected, and the dates during which injection occurred.
(f) Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease before the effective date of this part.
(g) This section is enacted for the limited purpose of facilitating the development of up to five geologic carbon sequestration pilot projects approved by the state board pursuant to this part, and only applies to property that is part of a geologic carbon sequestration pilot project.
71295. (a) On or before January 1, 2025, the state board shall adopt regulations creating a single unified application for submission by developers or sponsors of geologic carbon sequestration pilot projects. The single unified application described in this subdivision shall solicit from applicants, and direct to relevant agencies, all information needed to obtain all approvals from state and local agencies necessary to approve a geologic carbon sequestration pilot project, as applicable, including, but not limited to: (1) The state board and local air quality management districts and air pollution control districts, for air quality and greenhouse gas matters.(2) The State Water Resources Control Board and regional water quality control boards, for underground injection and water quality matters.(3) The State Fire Marshal, for pipeline safety matters.(4) The Public Utilities Commission, for pipeline permitting matters.(5) The State Lands Commission and local zoning, land use, and planning agencies, for land use planning and leasing of publicly owned land.(6) Local zoning, land use, and planning agencies, for local land use and pore space ownership matters.(7) The State Geologist, for seismic activity monitoring and reporting matters.(b) The state board shall consult with each of the agencies described in subdivision (a), and any other state or local agencies identified by the state board, to develop the single unified application described in subdivision (a).(c) In developing the single unified application described in subdivision (a), the state board shall, where possible, do both of the following:(1) Consult with relevant federal agencies and local governments regarding the process.(2) Incorporate relevant federal permits into the process.(d) The state board shall oversee the single unified application described in subdivision (a) to minimize application burdens, but shall not abridge any direct contact between applicants and permitting agencies. The state board shall adopt regulations as necessary to implement the single unified application and ensure a streamlined application process for applicants.(e) The single unified application developed by the state board pursuant to subdivision (a) shall not eliminate, abridge, or reduce the review or issuance of the individual permits included in the application. As part of the single unified application, the state board shall, where possible, streamline duplicative administrative requirements or permit application questions.(f) The single unified application developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000)), or its implementing regulations, with respect to the review or approval of a geologic carbon sequestration pilot project.(g) The single unified application developed by the state board pursuant to subdivision (a) shall include a streamlined process for all participating agencies to assess and collect individual permit application fees, as applicable.
71295. (a) On or before January 1, 2025, the state board shall adopt regulations creating a single unified application for submission by developers or sponsors of geologic carbon sequestration pilot projects. The single unified application described in this subdivision shall solicit from applicants, and direct to relevant agencies, all information needed to obtain all approvals from state and local agencies necessary to approve a geologic carbon sequestration pilot project, as applicable, including, but not limited to:
(1) The state board and local air quality management districts and air pollution control districts, for air quality and greenhouse gas matters.
(2) The State Water Resources Control Board and regional water quality control boards, for underground injection and water quality matters.
(3) The State Fire Marshal, for pipeline safety matters.
(4) The Public Utilities Commission, for pipeline permitting matters.
(5) The State Lands Commission and local zoning, land use, and planning agencies, for land use planning and leasing of publicly owned land.
(6) Local zoning, land use, and planning agencies, for local land use and pore space ownership matters.
(7) The State Geologist, for seismic activity monitoring and reporting matters.
(b) The state board shall consult with each of the agencies described in subdivision (a), and any other state or local agencies identified by the state board, to develop the single unified application described in subdivision (a).
(c) In developing the single unified application described in subdivision (a), the state board shall, where possible, do both of the following:
(1) Consult with relevant federal agencies and local governments regarding the process.
(2) Incorporate relevant federal permits into the process.
(d) The state board shall oversee the single unified application described in subdivision (a) to minimize application burdens, but shall not abridge any direct contact between applicants and permitting agencies. The state board shall adopt regulations as necessary to implement the single unified application and ensure a streamlined application process for applicants.
(e) The single unified application developed by the state board pursuant to subdivision (a) shall not eliminate, abridge, or reduce the review or issuance of the individual permits included in the application. As part of the single unified application, the state board shall, where possible, streamline duplicative administrative requirements or permit application questions.
(f) The single unified application developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000)), or its implementing regulations, with respect to the review or approval of a geologic carbon sequestration pilot project.
(g) The single unified application developed by the state board pursuant to subdivision (a) shall include a streamlined process for all participating agencies to assess and collect individual permit application fees, as applicable.
71296. On or before January 1, 2025, the State Geologist shall adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state. The State Geologist may require changes in operations of a geologic carbon sequestration pilot project to ensure safety, including, but not limited to, a mandatory pause in operation, if monitoring and reporting detects increased seismicity.
71296. On or before January 1, 2025, the State Geologist shall adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state. The State Geologist may require changes in operations of a geologic carbon sequestration pilot project to ensure safety, including, but not limited to, a mandatory pause in operation, if monitoring and reporting detects increased seismicity.
71297. (a) (1) A geologic carbon sequestration pilot project operator shall demonstrate and maintain financial responsibility sufficient, in perpetuity, sufficient to cover the short- and long-term costs associated with corrective action, well plugging, site care and site closure in perpetuity, accordance with the requirements set forth in Section 146.93 of Title 40 of the Code of Federal Regulations, emergency and remedial response, liability associated with seismic activity triggered by the reservoir, and protection of drinking water quality through financial responsibility instruments such as trust funds, surety bonds, letters of credit, insurance, self-insurance, or escrow accounts. The(2) The requirement to comply with paragraph (1) shall last for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(b) The state board shall, no later than January 1, 2025, and consistent with this section, adopt regulations for financial responsibility in accordance with this section that are no less stringent than those contained in Section 146.85 of Title 40 of the Code of Federal Regulations, as that section existed on January 1, 2023.
71297. (a) (1) A geologic carbon sequestration pilot project operator shall demonstrate and maintain financial responsibility sufficient, in perpetuity, sufficient to cover the short- and long-term costs associated with corrective action, well plugging, site care and site closure in perpetuity, accordance with the requirements set forth in Section 146.93 of Title 40 of the Code of Federal Regulations, emergency and remedial response, liability associated with seismic activity triggered by the reservoir, and protection of drinking water quality through financial responsibility instruments such as trust funds, surety bonds, letters of credit, insurance, self-insurance, or escrow accounts. The
(2) The requirement to comply with paragraph (1) shall last for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.
(b) The state board shall, no later than January 1, 2025, and consistent with this section, adopt regulations for financial responsibility in accordance with this section that are no less stringent than those contained in Section 146.85 of Title 40 of the Code of Federal Regulations, as that section existed on January 1, 2023.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 3. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
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