| 1 | | - | Amended IN Assembly July 08, 2024 Amended IN Assembly June 05, 2024 Amended IN Senate May 18, 2023 Amended IN Senate April 10, 2023 Amended IN Senate March 14, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 308Introduced by Senator BeckerFebruary 02, 2023An act to amend Sections 38562.2 39741.1 and 39741.4 of, and to add Section 38562.3 to, the Health and Safety Code, relating to greenhouse gases.LEGISLATIVE COUNSEL'S DIGESTSB 308, as amended, Becker. Net zero greenhouse gas emissions goal: carbon dioxide removal: regulations.The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting 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 authorizes the state board to adopt a regulation that establishes a system of market-based declining annual aggregate emissions limits for sources or categories of sources that emit greenhouse gases, applicable from January 1, 2012, to December 31, 2030, inclusive, as specified. The act authorizes the state board to include in its regulation of those emissions the use of market-based compliance mechanisms.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. Existing law requires the state board, as part of its scoping plan, to establish specified carbon dioxide removal targets for 2030 and beyond.The act also declares the policy of the state both to achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and achieve and maintain net negative greenhouse gas emissions thereafter, and to ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85% below the 1990 levels.This bill would require the state board to develop and adopt regulations, or utilize existing programs and regulations, to ensure the state achieves carbon dioxide removals equivalent to at least 100% of statewide greenhouse gas emissions in calendar year 2045, and all subsequent years, in order to achieve the net zero and net negative greenhouse gas emissions goals. As part of those efforts, the bill would require the state board to establish separate interim targets for greenhouse gas emissions reductions and carbon dioxide removals, to be applicable beginning no later than calendar year 2030, and to report on progress toward achieving those targets. The bill would provide that only carbon dioxide removed by processes certified by the state board as satisfying certain requirements shall be eligible to be counted for the purpose of counterbalancing statewide greenhouse gas emissions when determining the states progress toward achieving net zero and net negative greenhouse gas emissions. For purposes of those provisions, the bill would require state board to only approve carbon dioxide removal processes that meet certain requirements, as specified.Existing law requires the state board to establish a Carbon Capture, Removal, Utilization, and Storage Program to, among other things, evaluate the efficacy, safety, and viability of carbon capture, utilization, or storage technologies and carbon dioxide removal technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate. Existing law requires the state board to adopt regulations to implement that program. In furtherance of the objectives of that program, existing law authorizes the state board, by January 1, 2024, to adopt protocols to support additional methods of utilization or storage of captured carbon dioxide.This bill would require the state board to adopt the regulations to implement the program no later than July 1, 2027. The bill would indefinitely authorize the state board to adopt those protocols, and protocols to support methods of utilization or storage of removed carbon dioxide.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares all of the following:(1) The United Nations Intergovernmental Panel on Climate Change (IPCC) has recognized that limiting global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) over preindustrial times will require not only large reductions in global carbon dioxide emissions from human sources but also carbon dioxide removal (CDR) from the atmosphere. Climate Change 2022: Mitigation of Climate Change, a report by the IPCC released in early 2022, states, [t]he deployment of CDR to counterbalance hard-to-abate residual emissions is unavoidable if net zero CO2 or GHG emissions are to be achieved.(2) Assembly Bill 1279 (Muratsuchi, Chapter 337 of the Statutes of 2022) established a target for reducing greenhouse gas (GHG) emissions by at least 85 percent from 1990 levels by 2045 as part of achieving net zero GHG emissions. California will need to employ CDR to balance out the remaining up to 15 percent GHG emissions to achieve the net zero target.(3) The State Air Resources Boards 2022 Scoping Plan for Achieving Carbon Neutrality, dated November 16, 2022, stated, states, [t]he modeling shows that emissions from the AB 32 GHG Inventory sources will continue to persist even if all fossil related combustion emissions are phased out. These residual emissions must be compensated for to achieve carbon neutrality.(4) The 2022 Scoping Plan estimated that the state would need approximately 75 million metric tons (MMT) of CDR in 2045 in order to achieve net zero GHG emissions. It further identified a target of 7 MMT per year of CDR by 2030 as an ambitious, but achievable, goal that can serve as an important marker for progress in deploying CDR to support Californias carbon neutrality goal.(5) Therefore, although CDR should not be seen as a reason to prolong the states reliance on fossil fuels or as an excuse for not reducing GHG emissions as quickly as is feasible, CDR is widely predicted to be an important and necessary part of achieving the states net zero target.(6) A diversity of approaches can be used to remove carbon dioxide from the atmosphere and sequester it, including natural processes, engineered mechanical and chemical processes, or a combination of these approaches.(7) Once carbon dioxide is released into the atmosphere from previously inert sources, such as fossil fuels, it causes increases in atmospheric concentrations of CO2 that will last thousands of years, according to the United States Environmental Protection Agency.(8) CDR that is intended to balance out continued emissions of greenhouse gases in order to achieve net zero GHG emissions by 2045 should therefore result in long-lasting reductions in carbon dioxide in the atmosphere on a similar time scale to that of the released carbon dioxide.(9) Very little capacity exists currently to provide CDR that can meet these criteria for long-lasting reductions in carbon dioxide in the atmosphere, and this capacity, along with the supporting infrastructure for transporting and sequestering the removed carbon, will need to be scaled up enormously in order to meet the needs estimated for the states target of achieving net zero GHG emissions by 2045.(10) CDR approaches that can reduce atmospheric carbon dioxide for shorter periods of time can also provide valuable services in reducing climate change, but they eventually must be coupled with more durable sequestration of carbon in order to truly balance the impact of residual emissions of greenhouse gases.(11) In order to be counted for the purpose of balancing continued residual emissions of greenhouse gases, CDR processes must be quantifiable and must include scientifically rigorous approaches to monitor and verify the sequestration of removed carbon in order to ensure that the reduction in atmospheric carbon dioxide is maintained over long periods of time.(12) CDR that is intended to balance the impact of residual emissions of greenhouse gases in order to achieve net zero GHG emissions by 2045 should represent true removals of carbon dioxide from the atmosphere and not just the avoidance of emissions that might otherwise have occurred, as is sometimes allowed in carbon offset programs.(13) The use of carbon capture, utilization, and storage technologies to prevent greenhouse gas emissions represents an avoidance or reduction of emissions that would otherwise have occurred, not the removal of carbon dioxide from the atmosphere, and should therefore be counted toward the states greenhouse gas emissions reduction targets and not toward the states carbon dioxide removal targets.(13)(14) Developing and manufacturing the technologies needed to capture and sequester carbon dioxide and building and operating the facilities and supporting infrastructure used for CDR can be a source of jobs, economic development, and tax revenues for the state and can establish the state as a leader in exporting these products to help the rest of the world achieve reductions in net GHG emissions.(b) It is the intent of the Legislature for the State Air Resources Board to implement regulations and programs to attain the states target for net zero greenhouse gas emissions, as set forth in Section 38562.2 of the Health and Safety Code, and to establish and attain interim targets in order to grow over time the CDR capacity and supporting infrastructure that will be necessary to achieve that net zero target.SEC. 2.Section 38562.2 of the Health and Safety Code is amended to read:38562.2.(a)This section shall be known, and may be cited, as the California Climate Crisis Act.(b)For purposes of this section, net zero greenhouse gas emissions means emissions of greenhouse gases, as defined in subdivision (g) of Section 38505, to the atmosphere are balanced by removals of greenhouse gas emissions over a period of time, as determined by the state board.(c)It is the policy of the state to do both of the following:(1)Achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter. This goal is in addition to, and does not replace or supersede, the statewide greenhouse gas emissions reduction targets in Section 38566.(2)Ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85 percent below the statewide greenhouse gas emissions limit established pursuant to Section 38550.(d)Only carbon dioxide removed by processes certified by the state board pursuant to Section 38562.3 shall be eligible to be counted for the purpose of counterbalancing statewide greenhouse gas emissions when determining the states progress toward achieving net zero and net negative greenhouse gas emissions pursuant to subdivision (c).(e)The state board shall work with relevant state agencies to do both of the following:(1)Ensure that updates to the scoping plan required pursuant to Section 38561 identify and recommend measures to achieve the policy goals stated in subdivision (c).(2)Identify and implement a variety of policies and strategies that enable carbon dioxide removal solutions and carbon capture, utilization, and storage technologies in California to complement emissions reductions and achieve the policy goals stated in subdivision (c).(f)(1)By December 31, 2035, the state board shall evaluate the feasibility and tradeoffs of achieving the policy goal stated in paragraph (2) of subdivision (c) relative to alternative scenarios that achieve the policy goals stated in paragraph (1) of subdivision (c), and report its findings and recommendations to the Legislature.(2)The state board shall report to the Joint Legislative Committee on Climate Change Policies annually on progress toward the goals stated in subdivision (c).(3)As part of its annual reporting requirements pursuant to Section 38592.6, the Legislative Analysts Office, until January 1, 2030, shall conduct independent analyses of the states progress toward the goals stated in subdivision (c) and shall prepare an annual report detailing its review, which may include recommendations for improvements in state actions taken to achieve the goals stated in subdivision (c). When appropriate, these annual reports may incorporate reviews of the state boards evaluation and reporting practices, and may include recommendations for potential changes to advance transparency and accountability. A report prepared pursuant to this paragraph shall be made available to the public.SEC. 3.SEC. 2. Section 38562.3 is added to the Health and Safety Code, to read:38562.3. (a) (1) The state board shall develop and adopt regulations, or utilize existing programs and regulations, to ensure the state achieves carbon dioxide removals equivalent to at least 100 percent of statewide greenhouse gas emissions in calendar year 2045, and all subsequent years, in order to achieve the net zero and net negative greenhouse gas emissions goals established pursuant to Section 38562.2.(2) Regulations adopted pursuant to this subdivision shall be consistent with, or impose requirements equivalent to, Chapter 4.3 (commencing with Section 39740) of Part 2 of Division 26 of this code and Part 8 (commencing with Section 71460) of Division 34 of the Public Resources Code, as determined by the state board.(3) Before commencing a formal rulemaking process for regulations adopted pursuant to this subdivision, the state board shall conduct a robust community engagement process that includes outreach that targets residents of communities most likely to be near potential carbon dioxide removal projects. The environmental justice advisory committee established pursuant to Section 38591 shall be invited to participate in planning and implementation of this community engagement process.(b) (1) As part of its efforts undertaken pursuant to subdivision (a), the state board shall establish separate interim targets for greenhouse gas emissions reductions and carbon dioxide removals, to be applicable beginning no later than calendar year 2030, and report on progress toward achieving those targets. The state board shall post any report prepared pursuant to this subdivision on its internet website.(2) The interim target for carbon dioxide removals established pursuant to paragraph (1) for calendar year 2030 shall be at least 1 percent of projected total greenhouse gas emissions for that calendar year.(c) For purposes of subdivision (c) of Section 38562.2, subdivisions (a) and (b), the state board shall only certify approve carbon dioxide removal processes that meet all of the following:(1) The carbon dioxide removal process results in removals of carbon dioxide from the atmosphere, directly or indirectly, atmosphere and not only the avoidance or reduction of greenhouse gas emissions. emissions or the prevention of greenhouse gas emissions through the use of CCUS technology, as defined in Section 39741. The carbon dioxide process may remove carbon from the atmosphere directly or indirectly, including by direct air capture or using carbon stored in biomass or soil or absorbed in water.(2) The carbon dioxide removal process results in removals of carbon dioxide that are quantifiable, verifiable, and enforceable by the state board.(2)(3) The carbon dioxide removal process is not used for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.(3)(4) If the carbon dioxide removal process requires biomass as a feedstock, it only uses biomass that is produced as a residue or waste product, including, but not limited to, agricultural residues and byproducts of sustainable forest management.(4)(5) The carbon dioxide removal process is consistent with the requirements of Section 39741.1.(5)(6) The carbon dioxide removal process uses a form of long-term carbon storage with requirements for financial responsibility and longevity consistent with, or equivalent to, those required under Section 39741.5, as determined by the state board.(d) For purposes of this section, the state board shall include nature-based carbon dioxide removal strategies pursuant to Section 38561.5 that meet all of the requirements of subdivision (c), either individually or when coupled with carbon dioxide removal processes with sufficiently long-term carbon storage such that carbon dioxide removal credits based on the combined impacts of the coupled processes meet all of the requirements of subdivision (c).(d)(e) To the extent feasible, the requirements of this section shall apply equivalently to all carbon dioxide removal processes certified approved by the state board whether located inside or outside of the state.(f) The state board shall not approve a carbon dioxide removal process pursuant to subdivision (c) that includes an industrial facility or engineered infrastructure for any portion of the process until the owner or operator of the facility or infrastructure provides a written attestation to the state board that includes both of the following:(1) The owner or operator has done meaningful community engagement, including conducting at least three community meetings that include explaining the scope and potential impacts of the proposed facility or infrastructure before beginning construction or operation of it.(2) The owner or operator has a plan for providing meaningful benefits to residents of the surrounding community, such as through an enforceable community benefits agreement or the establishment of a community oversight and advisory body with members representing local residents for the purpose of addressing community concerns and prioritizing community investments.(g) The state board shall post on its internet website attestations received for carbon dioxide removal processes pursuant to subdivision (f) and provide a process for a third party to report to the state board an allegation that an attestation was untruthful or that a commitment made in the attestation is not being met. The state board may determine appropriate remedies if a violation is found to have been committed, including revoking approval of the carbon dioxide removal process.(h) No later than July 1, 2026, and annually thereafter, the chair of the state board shall appear before the Joint Legislative Committee on Climate Change Policies established pursuant to Section 9147.10 of the Government Code to report on the implementation of this section. The environmental justice advisory committee established pursuant to Section 38591 shall also be invited to appear to provide comments and recommendations on the implementation of this section.SEC. 3. Section 39741.1 of the Health and Safety Code is amended to read:39741.1. (a) The state board shall establish a Carbon Capture, Removal, Utilization, and Storage Program to do all of the following:(1) Evaluate the efficacy, safety, and viability of CCUS and CDR technologies and facilitate the capture and sequestration of carbon dioxide from these technologies, where appropriate.(2) Develop monitoring and reporting schedules to state regulatory agencies for carbon dioxide capture, removal, or sequestration projects to ensure efficacy, safety, and viability of the projects.(3) Ensure that all carbon dioxide capture, removal, or sequestration projects include the following, as appropriate:(A) Strategies to minimize, to the maximum extent technologically feasible, copollutant emissions from facilities where CCUS or CDR technology is deployed to ensure that the use of carbon dioxide removal technologies and carbon capture and storage technologies does not have an adverse impact on local air quality and public health, particularly in low-income and disadvantaged communities.(B) Strategies to ensure that carbon dioxide capture, removal, or sequestration projects minimize, to the maximum extent technologically feasible, local water pollution or air pollution from construction- and transportation-related impacts from the projects in communities adjacent to carbon dioxide capture, removal, or sequestration projects, including a geologic storage complex.(C) Strategies to minimize the risk of seismic impacts to, and from, geologic storage projects, including the risk of gas leakage due to seismic activity.(D) Monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide, and monitoring of sequestered carbon dioxide, including movement within the geologic storage complex, 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 and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir. In adopting regulations pursuant to subdivision (c) that pertain to this subparagraph, the state board shall consult with the State Geologist.(E) Monitoring of criteria pollutants and potential toxic air contaminants at the one or more sites within the geologic storage complex and at mobile or fixed sites within the facility, and monitoring of ambient carbon dioxide concentrations over the geologic storage complex to facilitate leak detection. Monitoring required under this section shall continue 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 and to achievement 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.(F) Projects meet best available control technology requirements as determined by the local air district.(b) In carrying out the objectives of the program, the state board shall prioritize the following:(1) Reducing the emissions of greenhouse gases.(2) Minimizing land use and potential environmental, noise, air quality, water quality, traffic, seismic, and other related impacts, and any potential health and safety risks, to all communities where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located to the maximum extent feasible.(3) Maximizing workforce development and employment opportunities in each community where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located, to the extent feasible.(4) Leveraging private funding sources and public-private partnership structures alongside potential state funding sources.(5) Reducing fossil fuel production in the state.(c) The state board shall adopt regulations to implement this section. section no later than July 1, 2027.(d) In developing the program, the state board shall consult with the Geologic Carbon Sequestration Group established pursuant to Section 2213 of the Public Resources Code.(e) In tracking progress toward the states climate targets, the state board shall prevent the double counting of emissions reductions associated with utilizing carbon dioxide that is captured or removed from the atmosphere. The state board may use a state board-approved third-party verifier to satisfy this subdivision.(f) (1) Beginning January 1, 2025, and every two years thereafter, the state board shall report to the Legislature on the progress of the program. The report shall, at a minimum, include an evaluation of potential local environmental impacts and potential long-term leakage impacts as well as recommendations on measures to reduce these impacts of completed carbon dioxide capture, removal, or sequestration projects.(2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.SEC. 4. Section 39741.4 of the Health and Safety Code is amended to read:39741.4. In furtherance of the objectives in Section 39741.1, the state board may adopt protocols to support additional methods of utilization or storage of captured or removed carbon dioxide, including for use in products and in methods of long-term storage as identified by the state board. |
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| 1 | + | Amended IN Assembly June 05, 2024 Amended IN Senate May 18, 2023 Amended IN Senate April 10, 2023 Amended IN Senate March 14, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 308Introduced by Senator BeckerFebruary 02, 2023An act to add Article 3 (commencing with Section 39742) to Chapter 4.3 of Part 2 of Division 26 of amend Sections 38562.2 and 39741.4 of, and to add Section 38562.3 to, the Health and Safety Code, relating to greenhouse gases.LEGISLATIVE COUNSEL'S DIGESTSB 308, as amended, Becker. Carbon Dioxide Removal Market Development Act. Net zero greenhouse gas emissions goal: carbon dioxide removal: regulations.The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting 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 authorizes the state board to adopt a regulation that establishes a system of market-based declining annual aggregate emissions limits for sources or categories of sources that emit greenhouse gases, applicable from January 1, 2012, to December 31, 2030, inclusive, as specified. The act authorizes the state board to include in its regulation of those emissions the use of market-based compliance mechanisms.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. Existing law requires the state board, as part of its scoping plan, to establish specified carbon dioxide removal targets for 2030 and beyond.The act also declares the policy of the state both to achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and achieve and maintain net negative greenhouse gas emissions thereafter, and to ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85% below the 1990 levels.Existing law also requires the state board to establish a Carbon Capture, Removal, Utilization, and Storage Program to, among other things, evaluate the efficacy, safety, and viability of carbon capture, utilization, or storage technologies and carbon dioxide removal technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate.This bill would enact the Carbon Dioxide Removal Market Development Act that would require the state board, no later than December 31, 2027, to adopt a regulation to require certain emitting entities to purchase negative emissions credits equal to a specified amount of their greenhouse gas emissions, as determined by the state board, in each calendar year beginning in the 2028 calendar year in accordance with specified requirements. The bill would require the state board, no later than December 31, 2027, to establish rules and processes for certifying carbon dioxide removal processes that may be used to create negative emissions credits and for tracking negative emissions credits in accordance with certain criteria. The bill would also require negative emissions resulting from the use of negative emissions credits to be included in the calculation of the states net greenhouse gas emissions, as specified.Because a violation of the requirement to purchase negative emissions credits would be a crime, the 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.This bill would require the state board to develop and adopt regulations, or utilize existing programs and regulations, to ensure the state achieves carbon dioxide removals equivalent to at least 100% of statewide greenhouse gas emissions in calendar year 2045, and all subsequent years, in order to achieve the net zero and net negative greenhouse gas emissions goals. As part of those efforts, the bill would require the state board to establish separate interim targets for greenhouse gas emissions reductions and carbon dioxide removals, to be applicable beginning no later than calendar year 2030, and to report on progress toward achieving those targets. The bill would provide that only carbon dioxide removed by processes certified by the state board as satisfying certain requirements shall be eligible to be counted for the purpose of counterbalancing statewide greenhouse gas emissions when determining the states progress toward achieving net zero and net negative greenhouse gas emissions.Existing law requires the state board to establish a Carbon Capture, Removal, Utilization, and Storage Program to, among other things, evaluate the efficacy, safety, and viability of carbon capture, utilization, or storage technologies and carbon dioxide removal technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate. In furtherance of the objectives of that program, existing law authorizes the state board, by January 1, 2024, to adopt protocols to support additional methods of utilization or storage of captured carbon dioxide.This bill would indefinitely authorize the state board to adopt those protocols, and protocols to support methods of utilization or storage of removed carbon dioxide.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESNO Bill TextThe people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares all of the following:(1) The United Nations Intergovernmental Panel on Climate Change (IPCC) has recognized that limiting global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) over preindustrial times will require not only large reductions in global carbon dioxide emissions from human sources but also carbon dioxide removal (CDR) from the atmosphere. Climate Change 2022: Mitigation of Climate Change, a report by the IPCC released in early 2022, states, [t]he deployment of CDR to counterbalance hard-to-abate residual emissions is unavoidable if net zero CO2 or GHG emissions are to be achieved.(2) Assembly Bill 1279 (Muratsuchi, Chapter 337 of the Statutes of 2022) established a target for reducing greenhouse gas (GHG) emissions by at least 85 percent from 1990 levels by 2045 as part of achieving net zero GHG emissions. California will need to employ CDR to balance out the remaining up to 15 percent GHG emissions to achieve the net zero target.(3) The State Air Resources Boards 2022 Scoping Plan for Achieving Carbon Neutrality, dated November 16, 2022, stated, [t]he modeling shows that emissions from the AB 32 GHG Inventory sources will continue to persist even if all fossil related combustion emissions are phased out. These residual emissions must be compensated for to achieve carbon neutrality.(4) The 2022 Scoping Plan estimated that the state would need approximately 75 million metric tons (MMT) of CDR in 2045 in order to achieve net zero GHG emissions. It further identified a target of 7 MMT per year of CDR by 2030 as an ambitious, but achievable, goal that can serve as an important marker for progress in deploying CDR to support Californias carbon neutrality goal.(5) Therefore, although CDR should not be seen as a reason to prolong the states reliance on fossil fuels or as an excuse for not reducing GHG emissions as quickly as is feasible, CDR is widely predicted to be an important and necessary part of achieving the states net zero target.(6) A diversity of approaches can be used to remove carbon dioxide from the atmosphere and sequester it, including natural processes, engineered mechanical and chemical processes, or a combination of these approaches.(7) Once carbon dioxide is released into the atmosphere from previously inert sources, such as fossil fuels, it causes increases in atmospheric concentrations of CO2 that will last thousands of years, according to the United States Environmental Protection Agency.(8) CDR that is intended to balance out continued emissions of greenhouse gases in order to achieve net zero GHG emissions by 2045 should therefore result in long-lasting reductions in carbon dioxide in the atmosphere on a similar time scale to that of the released carbon dioxide.(9) Very little capacity exists currently to provide CDR that can meet these criteria for long-lasting reductions in carbon dioxide in the atmosphere, and this capacity, along with the supporting infrastructure for transporting and sequestering the removed carbon, will need to be scaled up enormously in order to meet the needs estimated for the states target of achieving net zero GHG emissions by 2045.(10) CDR approaches that can reduce atmospheric carbon dioxide for shorter periods of time can also provide valuable services in reducing climate change, but they eventually must be coupled with more durable sequestration of carbon in order to truly balance the impact of residual emissions of greenhouse gases.(11) In order to be counted for the purpose of balancing continued residual emissions of greenhouse gases, CDR processes must be quantifiable and must include scientifically rigorous approaches to monitor and verify the sequestration of removed carbon in order to ensure that the reduction in atmospheric carbon dioxide is maintained over long periods of time.(12) CDR that is intended to balance the impact of residual emissions of greenhouse gases in order to achieve net zero GHG emissions by 2045 should represent true removals of carbon dioxide from the atmosphere and not just the avoidance of emissions that might otherwise have occurred, as is sometimes allowed in carbon offset programs.(13)Consistent with the polluter pays principle, the entities responsible for GHG emissions should be responsible for paying for CDR sufficient to balance the impact on climate change of those GHG emissions.(14)(13) Developing and manufacturing the technologies needed to capture and sequester carbon dioxide and building and operating the facilities and supporting infrastructure used for CDR can be a source of jobs, economic development, and tax revenues for the state and can establish the state as a leader in exporting these products to help the rest of the world achieve reductions in net GHG emissions.(b) It is the intent of the Legislature for the State Air Resources Board to implement a program to grow the CDR capacity and supporting infrastructure that is necessary to achieve carbon dioxide removal in sufficient volume regulations and programs to attain the states target for net zero greenhouse gas emissions, as set forth in Section 38562.2 of the Health and SafetyCode. Code, and to establish and attain interim targets in order to grow over time the CDR capacity and supporting infrastructure that will be necessary to achieve that net zero target.SEC. 2.Article 3 (commencing with Section 39742) is added to Chapter 4.3 of Part 2 of Division 26 of the Health and Safety Code, to read:3.Carbon Dioxide Removal Market Development Act39742.This article shall be known, and may be cited, as the Carbon Dioxide Removal Market Development Act.39742.1.For purposes of this article, the following definitions apply:(a)Carbon dioxide equivalent has the same meaning as defined in Section 38505.(b)Carbon dioxide removal process means a process using biological means, chemical means, physical means, or any combination of these means, including the use of CDR technology as defined in Section 39741, that results in a net reduction in atmospheric carbon dioxide and puts carbon atoms into a form of carbon sequestration.(c)Carbon sequestration means storing carbon atoms in a geological location or in a stable chemical form so that the geological location or the stable chemical form keeps the carbon atoms from entering the atmosphere as carbon dioxide for a period of time.(d)Direct climate mitigation benefits to the state means a local reduction in atmospheric carbon dioxide concentration within the state caused by removing carbon dioxide from the atmosphere within or sufficiently close to that area.(e)Durable carbon sequestration method means a method of carbon sequestration that can reasonably be projected to retain a large majority of the carbon atoms out of the atmosphere for 1,000 years and for which the responsible entity provides a guarantee period of at least 100 years.(f)Emitting entity means an entity that is responsible for greenhouse gas emissions included within the states inventory and has an obligation to balance the impact of some or all of those greenhouse gas emissions through the purchase of negative emissions credits pursuant to Section 39742.4.(g)Guarantee period means the period of time during which the responsible entity is required to ensure that the carbon remains sequestered and to replace any carbon that is lost.(h)Negative emissions credit means a tradeable environmental attribute representing one metric ton of net carbon dioxide removed by a carbon dioxide removal process.(i)Negative emissions obligation means the amount of negative emissions credits an emitting entity is required to purchase and retire each year in order to partially or fully balance the impact of the greenhouse gas emissions for which the emitting entity is responsible.(j)Neighboring communities means the local government, residents, and other private entities in areas that are in close proximity to facilities used in a carbon dioxide removal process.(k)Net carbon dioxide removed means the net amount of carbon dioxide, by mass, that is removed by a carbon dioxide removal process per ton of carbon put into carbon sequestration, as measured over the full lifecycle of the process, including any greenhouse gas emissions caused by the use of energy or fuels to drive the process, transport the captured carbon, or sequester the carbon.(l)Responsible entity means a business, organization, or other entity that is responsible for ensuring that sequestered carbon is monitored and verified during the guarantee period and is responsible for replacing any losses to the sequestered carbon during the guarantee period.(m)Temporary carbon sequestration method means any method of carbon sequestration that does not meet the criteria for a durable carbon sequestration method.39742.2.(a)No later than December 31, 2027, the state board shall establish rules and processes for certifying carbon dioxide removal processes that may be used to create negative emissions credits and for tracking negative emissions credits. In establishing these rules and processes, the state board shall consider all of the following:(1)Criteria to ensure that certified carbon dioxide removal processes result in reductions in atmospheric carbon dioxide that are real, quantifiable, verifiable, and enforceable by the state board and are in addition to any carbon dioxide removals that are otherwise required by law or regulation. Only processes that result in removals of carbon dioxide from the atmosphere, not avoidance of or reduction of greenhouse gas emissions, may be certified for the purpose of creating negative emissions credits.(2)A method to determine the net carbon dioxide removed by each certified carbon dioxide removal process.(3)Criteria to determine whether each certified carbon dioxide removal process qualifies as using a durable carbon sequestration method.(4)Requirements for scientifically rigorous and transparent methods for monitoring, reporting, and verification by responsible entities.(5)Requirements for responsible entities to replace any losses in sequestered carbon during the guarantee period with newly sequestered carbon representing an equal amount of net carbon dioxide removed.(6)Financial responsibility requirements for responsible entities to demonstrate that they, or another entity on their behalf, has the financial ability to meet their obligations during the guarantee period, such as through the use of surety bonds or other insurance products.(7)A method of tracking the creation, transfer of ownership, and retirement of negative emissions credits based on certified carbon dioxide removal processes so that the environmental attributes of each negative emissions credit will be counted only once for the purpose of meeting any regulatory or voluntary carbon dioxide removal targets or net greenhouse gas emissions targets.(b)(1)The state board may develop rules to create two-phase negative emissions credits that can meet the requirements of subdivision (e) of Section 39742.4 for durable carbon sequestration, such as a combination of the following:(A)A negative emissions credit using a temporary carbon sequestration method.(B)A legally binding commitment to purchase another negative emissions credit using a durable carbon sequestration method at the end of the guarantee period of the original temporary negative emissions credit.(2)For any two-phase negative emissions credits created pursuant to this section, the state board shall do all of the following:(A)Establish a method for tracking compliance with future negative emission credit purchase commitments.(B)Establish financial responsibility requirements to ensure that the responsible entity can demonstrate that they, or another entity on their behalf, has the financial ability to meet their obligations, such as through the use of surety bonds or other insurance products.39742.3.(a)The state board shall not certify a carbon dioxide removal process pursuant to Section 39742.2 if the process is used for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.(b)(1)The state board may elect not to certify a carbon dioxide removal process pursuant to Section 39742.2 if it determines the benefits generated by the carbon dioxide removal process do not outweigh the impacts caused by the carbon dioxide removal process, including, but not limited to, benefits and impacts to neighboring communities.(2)In making the determination pursuant to paragraph (1), the state board shall consider at least all of the following:(A)Impacts on deforestation or the displacement of agricultural land to grow dedicated biomass for carbon sequestration.(B)Impacts on neighboring communities from increases in criteria air pollutants caused by equipment used to capture, transport, sequester, or monitor the carbon.(C)Benefits to neighboring communities from investment, jobs, and tax revenues associated with carbon dioxide removal processes.39742.4.No later than December 31, 2027, the state board shall adopt a regulation to require emitting entities to purchase negative emissions credits equal to a portion of their greenhouse gas emissions in each calendar year beginning with greenhouse gas emissions for calendar year 2028 in accordance with all of the following:(a)Except as provided in subdivision (b), only emitting entities with an obligation to report their greenhouse gas emissions pursuant to the regulation adopted by the state board pursuant to Section 38530 and who report 25,000 metric tons or more of greenhouse gas emissions per year shall be considered emitting entities for the purposes of this article.(b)The state board may include additional entities as emitting entities if the annual greenhouse gas emissions of those entities can be estimated with reasonable accuracy and without an unreasonable measurement burden on those entities.(c)The regulation shall establish a negative emissions obligation that requires emitting entities to purchase negative emissions credits equal to a percentage of the carbon dioxide equivalent of their greenhouse gas emissions for each calendar year, as determined by the state board pursuant to subdivision (d).(d)The state board shall determine the percentage required pursuant to subdivision (c) for each year, beginning with calendar year 2028, with the goal of increasing the total capacity to provide negative emissions credits over time in order to meet the states net zero greenhouse gas emissions policy set forth in Section 38562.2. Those percentages shall be at least the following percentages in the following years:(1)One percent in 2030.(2)Eight percent in 2035.(3)Thirty-five percent in 2040.(4)One hundred percent in 2045.(e)Only negative emissions credits using a durable carbon sequestration method may be used to meet an emitting entitys negative emissions obligation.(f)If the state board develops rules to create two-phase negative emissions credits pursuant to subdivision (b) of Section 39742.2, no more than 50 percent of the negative emissions credits used by an emitting entity to meet its negative emissions obligation in any calendar year may be two-phase emissions credits.(g)At least 50 percent of the negative emissions credits used by an emitting entity to meet its negative emissions obligation in any calendar year shall be from carbon dioxide removal processes that provide direct climate mitigation benefits to the state.(h)The state board may adjust any of the percentages specified in subdivision (g) or in paragraphs (1) to (4), inclusive, of subdivision (d) to a lower figure if it determines that it would be infeasible for emitting entities to comply with those requirements.(i)The state board may allow an emitting entity to reserve negative emissions credits purchased in excess of its obligation in a calendar year pursuant to subdivision (c) and to use those negative emissions credits to meet its obligation in a future calendar year.(j)Negative emissions resulting from the use of negative emissions credits for the purpose of complying with the obligation pursuant to subdivision (c) shall be included in the calculation of the states net greenhouse gas emissions pursuant to Section 38562.2, even if those negative emissions occurred outside of the state.39742.5.The provisions of this article are severable. If any provision of this article or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIII B 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 XIII B of the California Constitution.SEC. 2. Section 38562.2 of the Health and Safety Code is amended to read:38562.2. (a) This section shall be known, and may be cited, as the California Climate Crisis Act.(b) For purposes of this section, net zero greenhouse gas emissions means emissions of greenhouse gases, as defined in subdivision (g) of Section 38505, to the atmosphere are balanced by removals of greenhouse gas emissions over a period of time, as determined by the state board.(c) It is the policy of the state to do both of the following:(1) Achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter. This goal is in addition to, and does not replace or supersede, the statewide greenhouse gas emissions reduction targets in Section 38566.(2) Ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85 percent below the statewide greenhouse gas emissions limit established pursuant to Section 38550.(d) Only carbon dioxide removed by processes certified by the state board pursuant to Section 38562.3 shall be eligible to be counted for the purpose of counterbalancing statewide greenhouse gas emissions when determining the states progress toward achieving net zero and net negative greenhouse gas emissions pursuant to subdivision (c).(d)(e) The state board shall work with relevant state agencies to do both of the following:(1) Ensure that updates to the scoping plan required pursuant to Section 38561 identify and recommend measures to achieve the policy goals stated in subdivision (c).(2) Identify and implement a variety of policies and strategies that enable carbon dioxide removal solutions and carbon capture, utilization, and storage technologies in California to complement emissions reductions and achieve the policy goals stated in subdivision (c).(e)(f) (1) By December 31, 2035, the state board shall evaluate the feasibility and tradeoffs of achieving the policy goal stated in paragraph (2) of subdivision (c) relative to alternative scenarios that achieve the policy goals stated in paragraph (1) of subdivision (c), and report its findings and recommendations to the Legislature.(2) The state board shall report to the Joint Legislative Committee on Climate Change Policies annually on progress toward the goals stated in subdivision (c).(3) As part of its annual reporting requirements pursuant to Section 38592.6, the Legislative Analysts Office, until January 1, 2030, shall conduct independent analyses of the states progress toward the goals stated in subdivision (c) and shall prepare an annual report detailing its review, which may include recommendations for improvements in state actions taken to achieve the goals stated in subdivision (c). When appropriate, these annual reports may incorporate reviews of the state boards evaluation and reporting practices, and may include recommendations for potential changes to advance transparency and accountability. A report prepared pursuant to this paragraph shall be made available to the public.SEC. 3. Section 38562.3 is added to the Health and Safety Code, to read:38562.3. (a) (1) The state board shall develop and adopt regulations, or utilize existing programs and regulations, to ensure the state achieves carbon dioxide removals equivalent to at least 100 percent of statewide greenhouse gas emissions in calendar year 2045, and all subsequent years, in order to achieve the net zero and net negative greenhouse gas emissions goals established pursuant to Section 38562.2.(2) Regulations adopted pursuant to this subdivision shall be consistent with, or impose requirements equivalent to, Chapter 4.3 (commencing with Section 39740) of Part 2 of Division 26 of this code and Part 8 (commencing with Section 71460) of Division 34 of the Public Resources Code, as determined by the state board.(b) (1) As part of its efforts undertaken pursuant to subdivision (a), the state board shall establish separate interim targets for greenhouse gas emissions reductions and carbon dioxide removals, to be applicable beginning no later than calendar year 2030, and report on progress toward achieving those targets. The state board shall post any report prepared pursuant to this subdivision on its internet website.(2) The interim target for carbon dioxide removals established pursuant to paragraph (1) for calendar year 2030 shall be at least 1 percent of projected total greenhouse gas emissions for that calendar year.(c) For purposes of subdivision (c) of Section 38562.2, the state board shall only certify carbon dioxide removal processes that meet all of the following:(1) The carbon dioxide removal process results in removals of carbon dioxide from the atmosphere, directly or indirectly, and not only the avoidance or reduction of greenhouse gas emissions.(2) The carbon dioxide removal process is not used for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.(3) If the carbon dioxide removal process requires biomass as a feedstock, it only uses biomass that is produced as a residue or waste product, including, but not limited to, agricultural residues and byproducts of sustainable forest management.(4) The carbon dioxide removal process is consistent with the requirements of Section 39741.1.(5) The carbon dioxide removal process uses a form of long-term carbon storage with requirements for financial responsibility and longevity consistent with, or equivalent to, those required under Section 39741.5, as determined by the state board.(d) To the extent feasible, the requirements of this section shall apply equivalently to all carbon dioxide removal processes certified by the state board whether located inside or outside of the state.SEC. 4. Section 39741.4 of the Health and Safety Code is amended to read:39741.4. In furtherance of the objectives in Section 39741.1, by January 1, 2024, the state board may adopt protocols to support additional methods of utilization or storage of captured or removed carbon dioxide, including carbon capture for use in products and in methods of long-term storage as identified by the state board. |
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| 3 | | - | Amended IN Assembly July 08, 2024 Amended IN Assembly June 05, 2024 Amended IN Senate May 18, 2023 Amended IN Senate April 10, 2023 Amended IN Senate March 14, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 308Introduced by Senator BeckerFebruary 02, 2023An act to amend Sections 38562.2 39741.1 and 39741.4 of, and to add Section 38562.3 to, the Health and Safety Code, relating to greenhouse gases.LEGISLATIVE COUNSEL'S DIGESTSB 308, as amended, Becker. Net zero greenhouse gas emissions goal: carbon dioxide removal: regulations.The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting 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 authorizes the state board to adopt a regulation that establishes a system of market-based declining annual aggregate emissions limits for sources or categories of sources that emit greenhouse gases, applicable from January 1, 2012, to December 31, 2030, inclusive, as specified. The act authorizes the state board to include in its regulation of those emissions the use of market-based compliance mechanisms.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. Existing law requires the state board, as part of its scoping plan, to establish specified carbon dioxide removal targets for 2030 and beyond.The act also declares the policy of the state both to achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and achieve and maintain net negative greenhouse gas emissions thereafter, and to ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85% below the 1990 levels.This bill would require the state board to develop and adopt regulations, or utilize existing programs and regulations, to ensure the state achieves carbon dioxide removals equivalent to at least 100% of statewide greenhouse gas emissions in calendar year 2045, and all subsequent years, in order to achieve the net zero and net negative greenhouse gas emissions goals. As part of those efforts, the bill would require the state board to establish separate interim targets for greenhouse gas emissions reductions and carbon dioxide removals, to be applicable beginning no later than calendar year 2030, and to report on progress toward achieving those targets. The bill would provide that only carbon dioxide removed by processes certified by the state board as satisfying certain requirements shall be eligible to be counted for the purpose of counterbalancing statewide greenhouse gas emissions when determining the states progress toward achieving net zero and net negative greenhouse gas emissions. For purposes of those provisions, the bill would require state board to only approve carbon dioxide removal processes that meet certain requirements, as specified.Existing law requires the state board to establish a Carbon Capture, Removal, Utilization, and Storage Program to, among other things, evaluate the efficacy, safety, and viability of carbon capture, utilization, or storage technologies and carbon dioxide removal technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate. Existing law requires the state board to adopt regulations to implement that program. In furtherance of the objectives of that program, existing law authorizes the state board, by January 1, 2024, to adopt protocols to support additional methods of utilization or storage of captured carbon dioxide.This bill would require the state board to adopt the regulations to implement the program no later than July 1, 2027. The bill would indefinitely authorize the state board to adopt those protocols, and protocols to support methods of utilization or storage of removed carbon dioxide.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO |
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| 3 | + | Amended IN Assembly June 05, 2024 Amended IN Senate May 18, 2023 Amended IN Senate April 10, 2023 Amended IN Senate March 14, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 308Introduced by Senator BeckerFebruary 02, 2023An act to add Article 3 (commencing with Section 39742) to Chapter 4.3 of Part 2 of Division 26 of amend Sections 38562.2 and 39741.4 of, and to add Section 38562.3 to, the Health and Safety Code, relating to greenhouse gases.LEGISLATIVE COUNSEL'S DIGESTSB 308, as amended, Becker. Carbon Dioxide Removal Market Development Act. Net zero greenhouse gas emissions goal: carbon dioxide removal: regulations.The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting 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 authorizes the state board to adopt a regulation that establishes a system of market-based declining annual aggregate emissions limits for sources or categories of sources that emit greenhouse gases, applicable from January 1, 2012, to December 31, 2030, inclusive, as specified. The act authorizes the state board to include in its regulation of those emissions the use of market-based compliance mechanisms.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. Existing law requires the state board, as part of its scoping plan, to establish specified carbon dioxide removal targets for 2030 and beyond.The act also declares the policy of the state both to achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and achieve and maintain net negative greenhouse gas emissions thereafter, and to ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85% below the 1990 levels.Existing law also requires the state board to establish a Carbon Capture, Removal, Utilization, and Storage Program to, among other things, evaluate the efficacy, safety, and viability of carbon capture, utilization, or storage technologies and carbon dioxide removal technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate.This bill would enact the Carbon Dioxide Removal Market Development Act that would require the state board, no later than December 31, 2027, to adopt a regulation to require certain emitting entities to purchase negative emissions credits equal to a specified amount of their greenhouse gas emissions, as determined by the state board, in each calendar year beginning in the 2028 calendar year in accordance with specified requirements. The bill would require the state board, no later than December 31, 2027, to establish rules and processes for certifying carbon dioxide removal processes that may be used to create negative emissions credits and for tracking negative emissions credits in accordance with certain criteria. The bill would also require negative emissions resulting from the use of negative emissions credits to be included in the calculation of the states net greenhouse gas emissions, as specified.Because a violation of the requirement to purchase negative emissions credits would be a crime, the 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.This bill would require the state board to develop and adopt regulations, or utilize existing programs and regulations, to ensure the state achieves carbon dioxide removals equivalent to at least 100% of statewide greenhouse gas emissions in calendar year 2045, and all subsequent years, in order to achieve the net zero and net negative greenhouse gas emissions goals. As part of those efforts, the bill would require the state board to establish separate interim targets for greenhouse gas emissions reductions and carbon dioxide removals, to be applicable beginning no later than calendar year 2030, and to report on progress toward achieving those targets. The bill would provide that only carbon dioxide removed by processes certified by the state board as satisfying certain requirements shall be eligible to be counted for the purpose of counterbalancing statewide greenhouse gas emissions when determining the states progress toward achieving net zero and net negative greenhouse gas emissions.Existing law requires the state board to establish a Carbon Capture, Removal, Utilization, and Storage Program to, among other things, evaluate the efficacy, safety, and viability of carbon capture, utilization, or storage technologies and carbon dioxide removal technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate. In furtherance of the objectives of that program, existing law authorizes the state board, by January 1, 2024, to adopt protocols to support additional methods of utilization or storage of captured carbon dioxide.This bill would indefinitely authorize the state board to adopt those protocols, and protocols to support methods of utilization or storage of removed carbon dioxide.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESNO |
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| 32 | | - | The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting 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 authorizes the state board to adopt a regulation that establishes a system of market-based declining annual aggregate emissions limits for sources or categories of sources that emit greenhouse gases, applicable from January 1, 2012, to December 31, 2030, inclusive, as specified. The act authorizes the state board to include in its regulation of those emissions the use of market-based compliance mechanisms.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. Existing law requires the state board, as part of its scoping plan, to establish specified carbon dioxide removal targets for 2030 and beyond.The act also declares the policy of the state both to achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and achieve and maintain net negative greenhouse gas emissions thereafter, and to ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85% below the 1990 levels.This bill would require the state board to develop and adopt regulations, or utilize existing programs and regulations, to ensure the state achieves carbon dioxide removals equivalent to at least 100% of statewide greenhouse gas emissions in calendar year 2045, and all subsequent years, in order to achieve the net zero and net negative greenhouse gas emissions goals. As part of those efforts, the bill would require the state board to establish separate interim targets for greenhouse gas emissions reductions and carbon dioxide removals, to be applicable beginning no later than calendar year 2030, and to report on progress toward achieving those targets. The bill would provide that only carbon dioxide removed by processes certified by the state board as satisfying certain requirements shall be eligible to be counted for the purpose of counterbalancing statewide greenhouse gas emissions when determining the states progress toward achieving net zero and net negative greenhouse gas emissions. For purposes of those provisions, the bill would require state board to only approve carbon dioxide removal processes that meet certain requirements, as specified.Existing law requires the state board to establish a Carbon Capture, Removal, Utilization, and Storage Program to, among other things, evaluate the efficacy, safety, and viability of carbon capture, utilization, or storage technologies and carbon dioxide removal technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate. Existing law requires the state board to adopt regulations to implement that program. In furtherance of the objectives of that program, existing law authorizes the state board, by January 1, 2024, to adopt protocols to support additional methods of utilization or storage of captured carbon dioxide.This bill would require the state board to adopt the regulations to implement the program no later than July 1, 2027. The bill would indefinitely authorize the state board to adopt those protocols, and protocols to support methods of utilization or storage of removed carbon dioxide. |
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| 31 | + | The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting 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 authorizes the state board to adopt a regulation that establishes a system of market-based declining annual aggregate emissions limits for sources or categories of sources that emit greenhouse gases, applicable from January 1, 2012, to December 31, 2030, inclusive, as specified. The act authorizes the state board to include in its regulation of those emissions the use of market-based compliance mechanisms.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. Existing law requires the state board, as part of its scoping plan, to establish specified carbon dioxide removal targets for 2030 and beyond.The act also declares the policy of the state both to achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and achieve and maintain net negative greenhouse gas emissions thereafter, and to ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85% below the 1990 levels.Existing law also requires the state board to establish a Carbon Capture, Removal, Utilization, and Storage Program to, among other things, evaluate the efficacy, safety, and viability of carbon capture, utilization, or storage technologies and carbon dioxide removal technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate.This bill would enact the Carbon Dioxide Removal Market Development Act that would require the state board, no later than December 31, 2027, to adopt a regulation to require certain emitting entities to purchase negative emissions credits equal to a specified amount of their greenhouse gas emissions, as determined by the state board, in each calendar year beginning in the 2028 calendar year in accordance with specified requirements. The bill would require the state board, no later than December 31, 2027, to establish rules and processes for certifying carbon dioxide removal processes that may be used to create negative emissions credits and for tracking negative emissions credits in accordance with certain criteria. The bill would also require negative emissions resulting from the use of negative emissions credits to be included in the calculation of the states net greenhouse gas emissions, as specified.Because a violation of the requirement to purchase negative emissions credits would be a crime, the 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.This bill would require the state board to develop and adopt regulations, or utilize existing programs and regulations, to ensure the state achieves carbon dioxide removals equivalent to at least 100% of statewide greenhouse gas emissions in calendar year 2045, and all subsequent years, in order to achieve the net zero and net negative greenhouse gas emissions goals. As part of those efforts, the bill would require the state board to establish separate interim targets for greenhouse gas emissions reductions and carbon dioxide removals, to be applicable beginning no later than calendar year 2030, and to report on progress toward achieving those targets. The bill would provide that only carbon dioxide removed by processes certified by the state board as satisfying certain requirements shall be eligible to be counted for the purpose of counterbalancing statewide greenhouse gas emissions when determining the states progress toward achieving net zero and net negative greenhouse gas emissions.Existing law requires the state board to establish a Carbon Capture, Removal, Utilization, and Storage Program to, among other things, evaluate the efficacy, safety, and viability of carbon capture, utilization, or storage technologies and carbon dioxide removal technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate. In furtherance of the objectives of that program, existing law authorizes the state board, by January 1, 2024, to adopt protocols to support additional methods of utilization or storage of captured carbon dioxide.This bill would indefinitely authorize the state board to adopt those protocols, and protocols to support methods of utilization or storage of removed carbon dioxide. |
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| 50 | | - | The people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares all of the following:(1) The United Nations Intergovernmental Panel on Climate Change (IPCC) has recognized that limiting global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) over preindustrial times will require not only large reductions in global carbon dioxide emissions from human sources but also carbon dioxide removal (CDR) from the atmosphere. Climate Change 2022: Mitigation of Climate Change, a report by the IPCC released in early 2022, states, [t]he deployment of CDR to counterbalance hard-to-abate residual emissions is unavoidable if net zero CO2 or GHG emissions are to be achieved.(2) Assembly Bill 1279 (Muratsuchi, Chapter 337 of the Statutes of 2022) established a target for reducing greenhouse gas (GHG) emissions by at least 85 percent from 1990 levels by 2045 as part of achieving net zero GHG emissions. California will need to employ CDR to balance out the remaining up to 15 percent GHG emissions to achieve the net zero target.(3) The State Air Resources Boards 2022 Scoping Plan for Achieving Carbon Neutrality, dated November 16, 2022, stated, states, [t]he modeling shows that emissions from the AB 32 GHG Inventory sources will continue to persist even if all fossil related combustion emissions are phased out. These residual emissions must be compensated for to achieve carbon neutrality.(4) The 2022 Scoping Plan estimated that the state would need approximately 75 million metric tons (MMT) of CDR in 2045 in order to achieve net zero GHG emissions. It further identified a target of 7 MMT per year of CDR by 2030 as an ambitious, but achievable, goal that can serve as an important marker for progress in deploying CDR to support Californias carbon neutrality goal.(5) Therefore, although CDR should not be seen as a reason to prolong the states reliance on fossil fuels or as an excuse for not reducing GHG emissions as quickly as is feasible, CDR is widely predicted to be an important and necessary part of achieving the states net zero target.(6) A diversity of approaches can be used to remove carbon dioxide from the atmosphere and sequester it, including natural processes, engineered mechanical and chemical processes, or a combination of these approaches.(7) Once carbon dioxide is released into the atmosphere from previously inert sources, such as fossil fuels, it causes increases in atmospheric concentrations of CO2 that will last thousands of years, according to the United States Environmental Protection Agency.(8) CDR that is intended to balance out continued emissions of greenhouse gases in order to achieve net zero GHG emissions by 2045 should therefore result in long-lasting reductions in carbon dioxide in the atmosphere on a similar time scale to that of the released carbon dioxide.(9) Very little capacity exists currently to provide CDR that can meet these criteria for long-lasting reductions in carbon dioxide in the atmosphere, and this capacity, along with the supporting infrastructure for transporting and sequestering the removed carbon, will need to be scaled up enormously in order to meet the needs estimated for the states target of achieving net zero GHG emissions by 2045.(10) CDR approaches that can reduce atmospheric carbon dioxide for shorter periods of time can also provide valuable services in reducing climate change, but they eventually must be coupled with more durable sequestration of carbon in order to truly balance the impact of residual emissions of greenhouse gases.(11) In order to be counted for the purpose of balancing continued residual emissions of greenhouse gases, CDR processes must be quantifiable and must include scientifically rigorous approaches to monitor and verify the sequestration of removed carbon in order to ensure that the reduction in atmospheric carbon dioxide is maintained over long periods of time.(12) CDR that is intended to balance the impact of residual emissions of greenhouse gases in order to achieve net zero GHG emissions by 2045 should represent true removals of carbon dioxide from the atmosphere and not just the avoidance of emissions that might otherwise have occurred, as is sometimes allowed in carbon offset programs.(13) The use of carbon capture, utilization, and storage technologies to prevent greenhouse gas emissions represents an avoidance or reduction of emissions that would otherwise have occurred, not the removal of carbon dioxide from the atmosphere, and should therefore be counted toward the states greenhouse gas emissions reduction targets and not toward the states carbon dioxide removal targets.(13)(14) Developing and manufacturing the technologies needed to capture and sequester carbon dioxide and building and operating the facilities and supporting infrastructure used for CDR can be a source of jobs, economic development, and tax revenues for the state and can establish the state as a leader in exporting these products to help the rest of the world achieve reductions in net GHG emissions.(b) It is the intent of the Legislature for the State Air Resources Board to implement regulations and programs to attain the states target for net zero greenhouse gas emissions, as set forth in Section 38562.2 of the Health and Safety Code, and to establish and attain interim targets in order to grow over time the CDR capacity and supporting infrastructure that will be necessary to achieve that net zero target.SEC. 2.Section 38562.2 of the Health and Safety Code is amended to read:38562.2.(a)This section shall be known, and may be cited, as the California Climate Crisis Act.(b)For purposes of this section, net zero greenhouse gas emissions means emissions of greenhouse gases, as defined in subdivision (g) of Section 38505, to the atmosphere are balanced by removals of greenhouse gas emissions over a period of time, as determined by the state board.(c)It is the policy of the state to do both of the following:(1)Achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter. This goal is in addition to, and does not replace or supersede, the statewide greenhouse gas emissions reduction targets in Section 38566.(2)Ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85 percent below the statewide greenhouse gas emissions limit established pursuant to Section 38550.(d)Only carbon dioxide removed by processes certified by the state board pursuant to Section 38562.3 shall be eligible to be counted for the purpose of counterbalancing statewide greenhouse gas emissions when determining the states progress toward achieving net zero and net negative greenhouse gas emissions pursuant to subdivision (c).(e)The state board shall work with relevant state agencies to do both of the following:(1)Ensure that updates to the scoping plan required pursuant to Section 38561 identify and recommend measures to achieve the policy goals stated in subdivision (c).(2)Identify and implement a variety of policies and strategies that enable carbon dioxide removal solutions and carbon capture, utilization, and storage technologies in California to complement emissions reductions and achieve the policy goals stated in subdivision (c).(f)(1)By December 31, 2035, the state board shall evaluate the feasibility and tradeoffs of achieving the policy goal stated in paragraph (2) of subdivision (c) relative to alternative scenarios that achieve the policy goals stated in paragraph (1) of subdivision (c), and report its findings and recommendations to the Legislature.(2)The state board shall report to the Joint Legislative Committee on Climate Change Policies annually on progress toward the goals stated in subdivision (c).(3)As part of its annual reporting requirements pursuant to Section 38592.6, the Legislative Analysts Office, until January 1, 2030, shall conduct independent analyses of the states progress toward the goals stated in subdivision (c) and shall prepare an annual report detailing its review, which may include recommendations for improvements in state actions taken to achieve the goals stated in subdivision (c). When appropriate, these annual reports may incorporate reviews of the state boards evaluation and reporting practices, and may include recommendations for potential changes to advance transparency and accountability. A report prepared pursuant to this paragraph shall be made available to the public.SEC. 3.SEC. 2. Section 38562.3 is added to the Health and Safety Code, to read:38562.3. (a) (1) The state board shall develop and adopt regulations, or utilize existing programs and regulations, to ensure the state achieves carbon dioxide removals equivalent to at least 100 percent of statewide greenhouse gas emissions in calendar year 2045, and all subsequent years, in order to achieve the net zero and net negative greenhouse gas emissions goals established pursuant to Section 38562.2.(2) Regulations adopted pursuant to this subdivision shall be consistent with, or impose requirements equivalent to, Chapter 4.3 (commencing with Section 39740) of Part 2 of Division 26 of this code and Part 8 (commencing with Section 71460) of Division 34 of the Public Resources Code, as determined by the state board.(3) Before commencing a formal rulemaking process for regulations adopted pursuant to this subdivision, the state board shall conduct a robust community engagement process that includes outreach that targets residents of communities most likely to be near potential carbon dioxide removal projects. The environmental justice advisory committee established pursuant to Section 38591 shall be invited to participate in planning and implementation of this community engagement process.(b) (1) As part of its efforts undertaken pursuant to subdivision (a), the state board shall establish separate interim targets for greenhouse gas emissions reductions and carbon dioxide removals, to be applicable beginning no later than calendar year 2030, and report on progress toward achieving those targets. The state board shall post any report prepared pursuant to this subdivision on its internet website.(2) The interim target for carbon dioxide removals established pursuant to paragraph (1) for calendar year 2030 shall be at least 1 percent of projected total greenhouse gas emissions for that calendar year.(c) For purposes of subdivision (c) of Section 38562.2, subdivisions (a) and (b), the state board shall only certify approve carbon dioxide removal processes that meet all of the following:(1) The carbon dioxide removal process results in removals of carbon dioxide from the atmosphere, directly or indirectly, atmosphere and not only the avoidance or reduction of greenhouse gas emissions. emissions or the prevention of greenhouse gas emissions through the use of CCUS technology, as defined in Section 39741. The carbon dioxide process may remove carbon from the atmosphere directly or indirectly, including by direct air capture or using carbon stored in biomass or soil or absorbed in water.(2) The carbon dioxide removal process results in removals of carbon dioxide that are quantifiable, verifiable, and enforceable by the state board.(2)(3) The carbon dioxide removal process is not used for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.(3)(4) If the carbon dioxide removal process requires biomass as a feedstock, it only uses biomass that is produced as a residue or waste product, including, but not limited to, agricultural residues and byproducts of sustainable forest management.(4)(5) The carbon dioxide removal process is consistent with the requirements of Section 39741.1.(5)(6) The carbon dioxide removal process uses a form of long-term carbon storage with requirements for financial responsibility and longevity consistent with, or equivalent to, those required under Section 39741.5, as determined by the state board.(d) For purposes of this section, the state board shall include nature-based carbon dioxide removal strategies pursuant to Section 38561.5 that meet all of the requirements of subdivision (c), either individually or when coupled with carbon dioxide removal processes with sufficiently long-term carbon storage such that carbon dioxide removal credits based on the combined impacts of the coupled processes meet all of the requirements of subdivision (c).(d)(e) To the extent feasible, the requirements of this section shall apply equivalently to all carbon dioxide removal processes certified approved by the state board whether located inside or outside of the state.(f) The state board shall not approve a carbon dioxide removal process pursuant to subdivision (c) that includes an industrial facility or engineered infrastructure for any portion of the process until the owner or operator of the facility or infrastructure provides a written attestation to the state board that includes both of the following:(1) The owner or operator has done meaningful community engagement, including conducting at least three community meetings that include explaining the scope and potential impacts of the proposed facility or infrastructure before beginning construction or operation of it.(2) The owner or operator has a plan for providing meaningful benefits to residents of the surrounding community, such as through an enforceable community benefits agreement or the establishment of a community oversight and advisory body with members representing local residents for the purpose of addressing community concerns and prioritizing community investments.(g) The state board shall post on its internet website attestations received for carbon dioxide removal processes pursuant to subdivision (f) and provide a process for a third party to report to the state board an allegation that an attestation was untruthful or that a commitment made in the attestation is not being met. The state board may determine appropriate remedies if a violation is found to have been committed, including revoking approval of the carbon dioxide removal process.(h) No later than July 1, 2026, and annually thereafter, the chair of the state board shall appear before the Joint Legislative Committee on Climate Change Policies established pursuant to Section 9147.10 of the Government Code to report on the implementation of this section. The environmental justice advisory committee established pursuant to Section 38591 shall also be invited to appear to provide comments and recommendations on the implementation of this section.SEC. 3. Section 39741.1 of the Health and Safety Code is amended to read:39741.1. (a) The state board shall establish a Carbon Capture, Removal, Utilization, and Storage Program to do all of the following:(1) Evaluate the efficacy, safety, and viability of CCUS and CDR technologies and facilitate the capture and sequestration of carbon dioxide from these technologies, where appropriate.(2) Develop monitoring and reporting schedules to state regulatory agencies for carbon dioxide capture, removal, or sequestration projects to ensure efficacy, safety, and viability of the projects.(3) Ensure that all carbon dioxide capture, removal, or sequestration projects include the following, as appropriate:(A) Strategies to minimize, to the maximum extent technologically feasible, copollutant emissions from facilities where CCUS or CDR technology is deployed to ensure that the use of carbon dioxide removal technologies and carbon capture and storage technologies does not have an adverse impact on local air quality and public health, particularly in low-income and disadvantaged communities.(B) Strategies to ensure that carbon dioxide capture, removal, or sequestration projects minimize, to the maximum extent technologically feasible, local water pollution or air pollution from construction- and transportation-related impacts from the projects in communities adjacent to carbon dioxide capture, removal, or sequestration projects, including a geologic storage complex.(C) Strategies to minimize the risk of seismic impacts to, and from, geologic storage projects, including the risk of gas leakage due to seismic activity.(D) Monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide, and monitoring of sequestered carbon dioxide, including movement within the geologic storage complex, 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 and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir. In adopting regulations pursuant to subdivision (c) that pertain to this subparagraph, the state board shall consult with the State Geologist.(E) Monitoring of criteria pollutants and potential toxic air contaminants at the one or more sites within the geologic storage complex and at mobile or fixed sites within the facility, and monitoring of ambient carbon dioxide concentrations over the geologic storage complex to facilitate leak detection. Monitoring required under this section shall continue 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 and to achievement 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.(F) Projects meet best available control technology requirements as determined by the local air district.(b) In carrying out the objectives of the program, the state board shall prioritize the following:(1) Reducing the emissions of greenhouse gases.(2) Minimizing land use and potential environmental, noise, air quality, water quality, traffic, seismic, and other related impacts, and any potential health and safety risks, to all communities where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located to the maximum extent feasible.(3) Maximizing workforce development and employment opportunities in each community where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located, to the extent feasible.(4) Leveraging private funding sources and public-private partnership structures alongside potential state funding sources.(5) Reducing fossil fuel production in the state.(c) The state board shall adopt regulations to implement this section. section no later than July 1, 2027.(d) In developing the program, the state board shall consult with the Geologic Carbon Sequestration Group established pursuant to Section 2213 of the Public Resources Code.(e) In tracking progress toward the states climate targets, the state board shall prevent the double counting of emissions reductions associated with utilizing carbon dioxide that is captured or removed from the atmosphere. The state board may use a state board-approved third-party verifier to satisfy this subdivision.(f) (1) Beginning January 1, 2025, and every two years thereafter, the state board shall report to the Legislature on the progress of the program. The report shall, at a minimum, include an evaluation of potential local environmental impacts and potential long-term leakage impacts as well as recommendations on measures to reduce these impacts of completed carbon dioxide capture, removal, or sequestration projects.(2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.SEC. 4. Section 39741.4 of the Health and Safety Code is amended to read:39741.4. In furtherance of the objectives in Section 39741.1, the state board may adopt protocols to support additional methods of utilization or storage of captured or removed carbon dioxide, including for use in products and in methods of long-term storage as identified by the state board. |
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| 69 | + | The people of the State of California do enact as follows:SECTION 1. (a) The Legislature finds and declares all of the following:(1) The United Nations Intergovernmental Panel on Climate Change (IPCC) has recognized that limiting global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit) over preindustrial times will require not only large reductions in global carbon dioxide emissions from human sources but also carbon dioxide removal (CDR) from the atmosphere. Climate Change 2022: Mitigation of Climate Change, a report by the IPCC released in early 2022, states, [t]he deployment of CDR to counterbalance hard-to-abate residual emissions is unavoidable if net zero CO2 or GHG emissions are to be achieved.(2) Assembly Bill 1279 (Muratsuchi, Chapter 337 of the Statutes of 2022) established a target for reducing greenhouse gas (GHG) emissions by at least 85 percent from 1990 levels by 2045 as part of achieving net zero GHG emissions. California will need to employ CDR to balance out the remaining up to 15 percent GHG emissions to achieve the net zero target.(3) The State Air Resources Boards 2022 Scoping Plan for Achieving Carbon Neutrality, dated November 16, 2022, stated, [t]he modeling shows that emissions from the AB 32 GHG Inventory sources will continue to persist even if all fossil related combustion emissions are phased out. These residual emissions must be compensated for to achieve carbon neutrality.(4) The 2022 Scoping Plan estimated that the state would need approximately 75 million metric tons (MMT) of CDR in 2045 in order to achieve net zero GHG emissions. It further identified a target of 7 MMT per year of CDR by 2030 as an ambitious, but achievable, goal that can serve as an important marker for progress in deploying CDR to support Californias carbon neutrality goal.(5) Therefore, although CDR should not be seen as a reason to prolong the states reliance on fossil fuels or as an excuse for not reducing GHG emissions as quickly as is feasible, CDR is widely predicted to be an important and necessary part of achieving the states net zero target.(6) A diversity of approaches can be used to remove carbon dioxide from the atmosphere and sequester it, including natural processes, engineered mechanical and chemical processes, or a combination of these approaches.(7) Once carbon dioxide is released into the atmosphere from previously inert sources, such as fossil fuels, it causes increases in atmospheric concentrations of CO2 that will last thousands of years, according to the United States Environmental Protection Agency.(8) CDR that is intended to balance out continued emissions of greenhouse gases in order to achieve net zero GHG emissions by 2045 should therefore result in long-lasting reductions in carbon dioxide in the atmosphere on a similar time scale to that of the released carbon dioxide.(9) Very little capacity exists currently to provide CDR that can meet these criteria for long-lasting reductions in carbon dioxide in the atmosphere, and this capacity, along with the supporting infrastructure for transporting and sequestering the removed carbon, will need to be scaled up enormously in order to meet the needs estimated for the states target of achieving net zero GHG emissions by 2045.(10) CDR approaches that can reduce atmospheric carbon dioxide for shorter periods of time can also provide valuable services in reducing climate change, but they eventually must be coupled with more durable sequestration of carbon in order to truly balance the impact of residual emissions of greenhouse gases.(11) In order to be counted for the purpose of balancing continued residual emissions of greenhouse gases, CDR processes must be quantifiable and must include scientifically rigorous approaches to monitor and verify the sequestration of removed carbon in order to ensure that the reduction in atmospheric carbon dioxide is maintained over long periods of time.(12) CDR that is intended to balance the impact of residual emissions of greenhouse gases in order to achieve net zero GHG emissions by 2045 should represent true removals of carbon dioxide from the atmosphere and not just the avoidance of emissions that might otherwise have occurred, as is sometimes allowed in carbon offset programs.(13)Consistent with the polluter pays principle, the entities responsible for GHG emissions should be responsible for paying for CDR sufficient to balance the impact on climate change of those GHG emissions.(14)(13) Developing and manufacturing the technologies needed to capture and sequester carbon dioxide and building and operating the facilities and supporting infrastructure used for CDR can be a source of jobs, economic development, and tax revenues for the state and can establish the state as a leader in exporting these products to help the rest of the world achieve reductions in net GHG emissions.(b) It is the intent of the Legislature for the State Air Resources Board to implement a program to grow the CDR capacity and supporting infrastructure that is necessary to achieve carbon dioxide removal in sufficient volume regulations and programs to attain the states target for net zero greenhouse gas emissions, as set forth in Section 38562.2 of the Health and SafetyCode. Code, and to establish and attain interim targets in order to grow over time the CDR capacity and supporting infrastructure that will be necessary to achieve that net zero target.SEC. 2.Article 3 (commencing with Section 39742) is added to Chapter 4.3 of Part 2 of Division 26 of the Health and Safety Code, to read:3.Carbon Dioxide Removal Market Development Act39742.This article shall be known, and may be cited, as the Carbon Dioxide Removal Market Development Act.39742.1.For purposes of this article, the following definitions apply:(a)Carbon dioxide equivalent has the same meaning as defined in Section 38505.(b)Carbon dioxide removal process means a process using biological means, chemical means, physical means, or any combination of these means, including the use of CDR technology as defined in Section 39741, that results in a net reduction in atmospheric carbon dioxide and puts carbon atoms into a form of carbon sequestration.(c)Carbon sequestration means storing carbon atoms in a geological location or in a stable chemical form so that the geological location or the stable chemical form keeps the carbon atoms from entering the atmosphere as carbon dioxide for a period of time.(d)Direct climate mitigation benefits to the state means a local reduction in atmospheric carbon dioxide concentration within the state caused by removing carbon dioxide from the atmosphere within or sufficiently close to that area.(e)Durable carbon sequestration method means a method of carbon sequestration that can reasonably be projected to retain a large majority of the carbon atoms out of the atmosphere for 1,000 years and for which the responsible entity provides a guarantee period of at least 100 years.(f)Emitting entity means an entity that is responsible for greenhouse gas emissions included within the states inventory and has an obligation to balance the impact of some or all of those greenhouse gas emissions through the purchase of negative emissions credits pursuant to Section 39742.4.(g)Guarantee period means the period of time during which the responsible entity is required to ensure that the carbon remains sequestered and to replace any carbon that is lost.(h)Negative emissions credit means a tradeable environmental attribute representing one metric ton of net carbon dioxide removed by a carbon dioxide removal process.(i)Negative emissions obligation means the amount of negative emissions credits an emitting entity is required to purchase and retire each year in order to partially or fully balance the impact of the greenhouse gas emissions for which the emitting entity is responsible.(j)Neighboring communities means the local government, residents, and other private entities in areas that are in close proximity to facilities used in a carbon dioxide removal process.(k)Net carbon dioxide removed means the net amount of carbon dioxide, by mass, that is removed by a carbon dioxide removal process per ton of carbon put into carbon sequestration, as measured over the full lifecycle of the process, including any greenhouse gas emissions caused by the use of energy or fuels to drive the process, transport the captured carbon, or sequester the carbon.(l)Responsible entity means a business, organization, or other entity that is responsible for ensuring that sequestered carbon is monitored and verified during the guarantee period and is responsible for replacing any losses to the sequestered carbon during the guarantee period.(m)Temporary carbon sequestration method means any method of carbon sequestration that does not meet the criteria for a durable carbon sequestration method.39742.2.(a)No later than December 31, 2027, the state board shall establish rules and processes for certifying carbon dioxide removal processes that may be used to create negative emissions credits and for tracking negative emissions credits. In establishing these rules and processes, the state board shall consider all of the following:(1)Criteria to ensure that certified carbon dioxide removal processes result in reductions in atmospheric carbon dioxide that are real, quantifiable, verifiable, and enforceable by the state board and are in addition to any carbon dioxide removals that are otherwise required by law or regulation. Only processes that result in removals of carbon dioxide from the atmosphere, not avoidance of or reduction of greenhouse gas emissions, may be certified for the purpose of creating negative emissions credits.(2)A method to determine the net carbon dioxide removed by each certified carbon dioxide removal process.(3)Criteria to determine whether each certified carbon dioxide removal process qualifies as using a durable carbon sequestration method.(4)Requirements for scientifically rigorous and transparent methods for monitoring, reporting, and verification by responsible entities.(5)Requirements for responsible entities to replace any losses in sequestered carbon during the guarantee period with newly sequestered carbon representing an equal amount of net carbon dioxide removed.(6)Financial responsibility requirements for responsible entities to demonstrate that they, or another entity on their behalf, has the financial ability to meet their obligations during the guarantee period, such as through the use of surety bonds or other insurance products.(7)A method of tracking the creation, transfer of ownership, and retirement of negative emissions credits based on certified carbon dioxide removal processes so that the environmental attributes of each negative emissions credit will be counted only once for the purpose of meeting any regulatory or voluntary carbon dioxide removal targets or net greenhouse gas emissions targets.(b)(1)The state board may develop rules to create two-phase negative emissions credits that can meet the requirements of subdivision (e) of Section 39742.4 for durable carbon sequestration, such as a combination of the following:(A)A negative emissions credit using a temporary carbon sequestration method.(B)A legally binding commitment to purchase another negative emissions credit using a durable carbon sequestration method at the end of the guarantee period of the original temporary negative emissions credit.(2)For any two-phase negative emissions credits created pursuant to this section, the state board shall do all of the following:(A)Establish a method for tracking compliance with future negative emission credit purchase commitments.(B)Establish financial responsibility requirements to ensure that the responsible entity can demonstrate that they, or another entity on their behalf, has the financial ability to meet their obligations, such as through the use of surety bonds or other insurance products.39742.3.(a)The state board shall not certify a carbon dioxide removal process pursuant to Section 39742.2 if the process is used for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.(b)(1)The state board may elect not to certify a carbon dioxide removal process pursuant to Section 39742.2 if it determines the benefits generated by the carbon dioxide removal process do not outweigh the impacts caused by the carbon dioxide removal process, including, but not limited to, benefits and impacts to neighboring communities.(2)In making the determination pursuant to paragraph (1), the state board shall consider at least all of the following:(A)Impacts on deforestation or the displacement of agricultural land to grow dedicated biomass for carbon sequestration.(B)Impacts on neighboring communities from increases in criteria air pollutants caused by equipment used to capture, transport, sequester, or monitor the carbon.(C)Benefits to neighboring communities from investment, jobs, and tax revenues associated with carbon dioxide removal processes.39742.4.No later than December 31, 2027, the state board shall adopt a regulation to require emitting entities to purchase negative emissions credits equal to a portion of their greenhouse gas emissions in each calendar year beginning with greenhouse gas emissions for calendar year 2028 in accordance with all of the following:(a)Except as provided in subdivision (b), only emitting entities with an obligation to report their greenhouse gas emissions pursuant to the regulation adopted by the state board pursuant to Section 38530 and who report 25,000 metric tons or more of greenhouse gas emissions per year shall be considered emitting entities for the purposes of this article.(b)The state board may include additional entities as emitting entities if the annual greenhouse gas emissions of those entities can be estimated with reasonable accuracy and without an unreasonable measurement burden on those entities.(c)The regulation shall establish a negative emissions obligation that requires emitting entities to purchase negative emissions credits equal to a percentage of the carbon dioxide equivalent of their greenhouse gas emissions for each calendar year, as determined by the state board pursuant to subdivision (d).(d)The state board shall determine the percentage required pursuant to subdivision (c) for each year, beginning with calendar year 2028, with the goal of increasing the total capacity to provide negative emissions credits over time in order to meet the states net zero greenhouse gas emissions policy set forth in Section 38562.2. Those percentages shall be at least the following percentages in the following years:(1)One percent in 2030.(2)Eight percent in 2035.(3)Thirty-five percent in 2040.(4)One hundred percent in 2045.(e)Only negative emissions credits using a durable carbon sequestration method may be used to meet an emitting entitys negative emissions obligation.(f)If the state board develops rules to create two-phase negative emissions credits pursuant to subdivision (b) of Section 39742.2, no more than 50 percent of the negative emissions credits used by an emitting entity to meet its negative emissions obligation in any calendar year may be two-phase emissions credits.(g)At least 50 percent of the negative emissions credits used by an emitting entity to meet its negative emissions obligation in any calendar year shall be from carbon dioxide removal processes that provide direct climate mitigation benefits to the state.(h)The state board may adjust any of the percentages specified in subdivision (g) or in paragraphs (1) to (4), inclusive, of subdivision (d) to a lower figure if it determines that it would be infeasible for emitting entities to comply with those requirements.(i)The state board may allow an emitting entity to reserve negative emissions credits purchased in excess of its obligation in a calendar year pursuant to subdivision (c) and to use those negative emissions credits to meet its obligation in a future calendar year.(j)Negative emissions resulting from the use of negative emissions credits for the purpose of complying with the obligation pursuant to subdivision (c) shall be included in the calculation of the states net greenhouse gas emissions pursuant to Section 38562.2, even if those negative emissions occurred outside of the state.39742.5.The provisions of this article are severable. If any provision of this article or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIII B 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 XIII B of the California Constitution.SEC. 2. Section 38562.2 of the Health and Safety Code is amended to read:38562.2. (a) This section shall be known, and may be cited, as the California Climate Crisis Act.(b) For purposes of this section, net zero greenhouse gas emissions means emissions of greenhouse gases, as defined in subdivision (g) of Section 38505, to the atmosphere are balanced by removals of greenhouse gas emissions over a period of time, as determined by the state board.(c) It is the policy of the state to do both of the following:(1) Achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter. This goal is in addition to, and does not replace or supersede, the statewide greenhouse gas emissions reduction targets in Section 38566.(2) Ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85 percent below the statewide greenhouse gas emissions limit established pursuant to Section 38550.(d) Only carbon dioxide removed by processes certified by the state board pursuant to Section 38562.3 shall be eligible to be counted for the purpose of counterbalancing statewide greenhouse gas emissions when determining the states progress toward achieving net zero and net negative greenhouse gas emissions pursuant to subdivision (c).(d)(e) The state board shall work with relevant state agencies to do both of the following:(1) Ensure that updates to the scoping plan required pursuant to Section 38561 identify and recommend measures to achieve the policy goals stated in subdivision (c).(2) Identify and implement a variety of policies and strategies that enable carbon dioxide removal solutions and carbon capture, utilization, and storage technologies in California to complement emissions reductions and achieve the policy goals stated in subdivision (c).(e)(f) (1) By December 31, 2035, the state board shall evaluate the feasibility and tradeoffs of achieving the policy goal stated in paragraph (2) of subdivision (c) relative to alternative scenarios that achieve the policy goals stated in paragraph (1) of subdivision (c), and report its findings and recommendations to the Legislature.(2) The state board shall report to the Joint Legislative Committee on Climate Change Policies annually on progress toward the goals stated in subdivision (c).(3) As part of its annual reporting requirements pursuant to Section 38592.6, the Legislative Analysts Office, until January 1, 2030, shall conduct independent analyses of the states progress toward the goals stated in subdivision (c) and shall prepare an annual report detailing its review, which may include recommendations for improvements in state actions taken to achieve the goals stated in subdivision (c). When appropriate, these annual reports may incorporate reviews of the state boards evaluation and reporting practices, and may include recommendations for potential changes to advance transparency and accountability. A report prepared pursuant to this paragraph shall be made available to the public.SEC. 3. Section 38562.3 is added to the Health and Safety Code, to read:38562.3. (a) (1) The state board shall develop and adopt regulations, or utilize existing programs and regulations, to ensure the state achieves carbon dioxide removals equivalent to at least 100 percent of statewide greenhouse gas emissions in calendar year 2045, and all subsequent years, in order to achieve the net zero and net negative greenhouse gas emissions goals established pursuant to Section 38562.2.(2) Regulations adopted pursuant to this subdivision shall be consistent with, or impose requirements equivalent to, Chapter 4.3 (commencing with Section 39740) of Part 2 of Division 26 of this code and Part 8 (commencing with Section 71460) of Division 34 of the Public Resources Code, as determined by the state board.(b) (1) As part of its efforts undertaken pursuant to subdivision (a), the state board shall establish separate interim targets for greenhouse gas emissions reductions and carbon dioxide removals, to be applicable beginning no later than calendar year 2030, and report on progress toward achieving those targets. The state board shall post any report prepared pursuant to this subdivision on its internet website.(2) The interim target for carbon dioxide removals established pursuant to paragraph (1) for calendar year 2030 shall be at least 1 percent of projected total greenhouse gas emissions for that calendar year.(c) For purposes of subdivision (c) of Section 38562.2, the state board shall only certify carbon dioxide removal processes that meet all of the following:(1) The carbon dioxide removal process results in removals of carbon dioxide from the atmosphere, directly or indirectly, and not only the avoidance or reduction of greenhouse gas emissions.(2) The carbon dioxide removal process is not used for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.(3) If the carbon dioxide removal process requires biomass as a feedstock, it only uses biomass that is produced as a residue or waste product, including, but not limited to, agricultural residues and byproducts of sustainable forest management.(4) The carbon dioxide removal process is consistent with the requirements of Section 39741.1.(5) The carbon dioxide removal process uses a form of long-term carbon storage with requirements for financial responsibility and longevity consistent with, or equivalent to, those required under Section 39741.5, as determined by the state board.(d) To the extent feasible, the requirements of this section shall apply equivalently to all carbon dioxide removal processes certified by the state board whether located inside or outside of the state.SEC. 4. Section 39741.4 of the Health and Safety Code is amended to read:39741.4. In furtherance of the objectives in Section 39741.1, by January 1, 2024, the state board may adopt protocols to support additional methods of utilization or storage of captured or removed carbon dioxide, including carbon capture for use in products and in methods of long-term storage as identified by the state board. |
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| 147 | + | (d)Direct climate mitigation benefits to the state means a local reduction in atmospheric carbon dioxide concentration within the state caused by removing carbon dioxide from the atmosphere within or sufficiently close to that area. |
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| 148 | + | |
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| 149 | + | |
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| 150 | + | |
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| 151 | + | (e)Durable carbon sequestration method means a method of carbon sequestration that can reasonably be projected to retain a large majority of the carbon atoms out of the atmosphere for 1,000 years and for which the responsible entity provides a guarantee period of at least 100 years. |
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| 152 | + | |
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| 153 | + | |
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| 154 | + | |
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| 155 | + | (f)Emitting entity means an entity that is responsible for greenhouse gas emissions included within the states inventory and has an obligation to balance the impact of some or all of those greenhouse gas emissions through the purchase of negative emissions credits pursuant to Section 39742.4. |
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| 156 | + | |
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| 157 | + | |
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| 158 | + | |
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| 159 | + | (g)Guarantee period means the period of time during which the responsible entity is required to ensure that the carbon remains sequestered and to replace any carbon that is lost. |
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| 160 | + | |
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| 161 | + | |
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| 162 | + | |
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| 163 | + | (h)Negative emissions credit means a tradeable environmental attribute representing one metric ton of net carbon dioxide removed by a carbon dioxide removal process. |
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| 164 | + | |
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| 165 | + | |
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| 166 | + | |
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| 167 | + | (i)Negative emissions obligation means the amount of negative emissions credits an emitting entity is required to purchase and retire each year in order to partially or fully balance the impact of the greenhouse gas emissions for which the emitting entity is responsible. |
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| 168 | + | |
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| 169 | + | |
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| 170 | + | |
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| 171 | + | (j)Neighboring communities means the local government, residents, and other private entities in areas that are in close proximity to facilities used in a carbon dioxide removal process. |
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| 172 | + | |
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| 173 | + | |
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| 174 | + | |
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| 175 | + | (k)Net carbon dioxide removed means the net amount of carbon dioxide, by mass, that is removed by a carbon dioxide removal process per ton of carbon put into carbon sequestration, as measured over the full lifecycle of the process, including any greenhouse gas emissions caused by the use of energy or fuels to drive the process, transport the captured carbon, or sequester the carbon. |
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| 176 | + | |
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| 177 | + | |
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| 178 | + | |
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| 179 | + | (l)Responsible entity means a business, organization, or other entity that is responsible for ensuring that sequestered carbon is monitored and verified during the guarantee period and is responsible for replacing any losses to the sequestered carbon during the guarantee period. |
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| 180 | + | |
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| 181 | + | |
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| 182 | + | |
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| 183 | + | (m)Temporary carbon sequestration method means any method of carbon sequestration that does not meet the criteria for a durable carbon sequestration method. |
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| 184 | + | |
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| 185 | + | |
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| 186 | + | |
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| 187 | + | |
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| 188 | + | |
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| 189 | + | (a)No later than December 31, 2027, the state board shall establish rules and processes for certifying carbon dioxide removal processes that may be used to create negative emissions credits and for tracking negative emissions credits. In establishing these rules and processes, the state board shall consider all of the following: |
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| 190 | + | |
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| 191 | + | |
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| 192 | + | |
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| 193 | + | (1)Criteria to ensure that certified carbon dioxide removal processes result in reductions in atmospheric carbon dioxide that are real, quantifiable, verifiable, and enforceable by the state board and are in addition to any carbon dioxide removals that are otherwise required by law or regulation. Only processes that result in removals of carbon dioxide from the atmosphere, not avoidance of or reduction of greenhouse gas emissions, may be certified for the purpose of creating negative emissions credits. |
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| 194 | + | |
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| 195 | + | |
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| 196 | + | |
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| 197 | + | (2)A method to determine the net carbon dioxide removed by each certified carbon dioxide removal process. |
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| 198 | + | |
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| 199 | + | |
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| 200 | + | |
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| 201 | + | (3)Criteria to determine whether each certified carbon dioxide removal process qualifies as using a durable carbon sequestration method. |
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| 202 | + | |
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| 203 | + | |
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| 204 | + | |
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| 205 | + | (4)Requirements for scientifically rigorous and transparent methods for monitoring, reporting, and verification by responsible entities. |
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| 206 | + | |
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| 207 | + | |
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| 208 | + | |
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| 209 | + | (5)Requirements for responsible entities to replace any losses in sequestered carbon during the guarantee period with newly sequestered carbon representing an equal amount of net carbon dioxide removed. |
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| 210 | + | |
|---|
| 211 | + | |
|---|
| 212 | + | |
|---|
| 213 | + | (6)Financial responsibility requirements for responsible entities to demonstrate that they, or another entity on their behalf, has the financial ability to meet their obligations during the guarantee period, such as through the use of surety bonds or other insurance products. |
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| 214 | + | |
|---|
| 215 | + | |
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| 216 | + | |
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| 217 | + | (7)A method of tracking the creation, transfer of ownership, and retirement of negative emissions credits based on certified carbon dioxide removal processes so that the environmental attributes of each negative emissions credit will be counted only once for the purpose of meeting any regulatory or voluntary carbon dioxide removal targets or net greenhouse gas emissions targets. |
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| 218 | + | |
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| 219 | + | |
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| 220 | + | |
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| 221 | + | (b)(1)The state board may develop rules to create two-phase negative emissions credits that can meet the requirements of subdivision (e) of Section 39742.4 for durable carbon sequestration, such as a combination of the following: |
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| 222 | + | |
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| 223 | + | |
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| 224 | + | |
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| 225 | + | (A)A negative emissions credit using a temporary carbon sequestration method. |
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| 226 | + | |
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| 227 | + | |
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| 228 | + | |
|---|
| 229 | + | (B)A legally binding commitment to purchase another negative emissions credit using a durable carbon sequestration method at the end of the guarantee period of the original temporary negative emissions credit. |
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| 230 | + | |
|---|
| 231 | + | |
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| 232 | + | |
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| 233 | + | (2)For any two-phase negative emissions credits created pursuant to this section, the state board shall do all of the following: |
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| 234 | + | |
|---|
| 235 | + | |
|---|
| 236 | + | |
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| 237 | + | (A)Establish a method for tracking compliance with future negative emission credit purchase commitments. |
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| 238 | + | |
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| 239 | + | |
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| 240 | + | |
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| 241 | + | (B)Establish financial responsibility requirements to ensure that the responsible entity can demonstrate that they, or another entity on their behalf, has the financial ability to meet their obligations, such as through the use of surety bonds or other insurance products. |
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| 242 | + | |
|---|
| 243 | + | |
|---|
| 244 | + | |
|---|
| 245 | + | |
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| 246 | + | |
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| 247 | + | (a)The state board shall not certify a carbon dioxide removal process pursuant to Section 39742.2 if the process is used for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well. |
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| 248 | + | |
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| 249 | + | |
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| 250 | + | |
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| 251 | + | (b)(1)The state board may elect not to certify a carbon dioxide removal process pursuant to Section 39742.2 if it determines the benefits generated by the carbon dioxide removal process do not outweigh the impacts caused by the carbon dioxide removal process, including, but not limited to, benefits and impacts to neighboring communities. |
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| 252 | + | |
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| 253 | + | |
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| 254 | + | |
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| 255 | + | (2)In making the determination pursuant to paragraph (1), the state board shall consider at least all of the following: |
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| 256 | + | |
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| 257 | + | |
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| 258 | + | |
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| 259 | + | (A)Impacts on deforestation or the displacement of agricultural land to grow dedicated biomass for carbon sequestration. |
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| 260 | + | |
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| 261 | + | |
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| 262 | + | |
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| 263 | + | (B)Impacts on neighboring communities from increases in criteria air pollutants caused by equipment used to capture, transport, sequester, or monitor the carbon. |
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| 264 | + | |
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| 265 | + | |
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| 266 | + | |
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| 267 | + | (C)Benefits to neighboring communities from investment, jobs, and tax revenues associated with carbon dioxide removal processes. |
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| 268 | + | |
|---|
| 269 | + | |
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| 270 | + | |
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| 271 | + | |
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| 272 | + | |
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| 273 | + | No later than December 31, 2027, the state board shall adopt a regulation to require emitting entities to purchase negative emissions credits equal to a portion of their greenhouse gas emissions in each calendar year beginning with greenhouse gas emissions for calendar year 2028 in accordance with all of the following: |
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| 274 | + | |
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| 275 | + | |
|---|
| 276 | + | |
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| 277 | + | (a)Except as provided in subdivision (b), only emitting entities with an obligation to report their greenhouse gas emissions pursuant to the regulation adopted by the state board pursuant to Section 38530 and who report 25,000 metric tons or more of greenhouse gas emissions per year shall be considered emitting entities for the purposes of this article. |
|---|
| 278 | + | |
|---|
| 279 | + | |
|---|
| 280 | + | |
|---|
| 281 | + | (b)The state board may include additional entities as emitting entities if the annual greenhouse gas emissions of those entities can be estimated with reasonable accuracy and without an unreasonable measurement burden on those entities. |
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| 282 | + | |
|---|
| 283 | + | |
|---|
| 284 | + | |
|---|
| 285 | + | (c)The regulation shall establish a negative emissions obligation that requires emitting entities to purchase negative emissions credits equal to a percentage of the carbon dioxide equivalent of their greenhouse gas emissions for each calendar year, as determined by the state board pursuant to subdivision (d). |
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| 286 | + | |
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| 287 | + | |
|---|
| 288 | + | |
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| 289 | + | (d)The state board shall determine the percentage required pursuant to subdivision (c) for each year, beginning with calendar year 2028, with the goal of increasing the total capacity to provide negative emissions credits over time in order to meet the states net zero greenhouse gas emissions policy set forth in Section 38562.2. Those percentages shall be at least the following percentages in the following years: |
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| 290 | + | |
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| 291 | + | |
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| 292 | + | |
|---|
| 293 | + | (1)One percent in 2030. |
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| 294 | + | |
|---|
| 295 | + | |
|---|
| 296 | + | |
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| 297 | + | (2)Eight percent in 2035. |
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| 298 | + | |
|---|
| 299 | + | |
|---|
| 300 | + | |
|---|
| 301 | + | (3)Thirty-five percent in 2040. |
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| 302 | + | |
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| 303 | + | |
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| 304 | + | |
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| 305 | + | (4)One hundred percent in 2045. |
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| 306 | + | |
|---|
| 307 | + | |
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| 308 | + | |
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| 309 | + | (e)Only negative emissions credits using a durable carbon sequestration method may be used to meet an emitting entitys negative emissions obligation. |
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| 310 | + | |
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| 311 | + | |
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| 312 | + | |
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| 313 | + | (f)If the state board develops rules to create two-phase negative emissions credits pursuant to subdivision (b) of Section 39742.2, no more than 50 percent of the negative emissions credits used by an emitting entity to meet its negative emissions obligation in any calendar year may be two-phase emissions credits. |
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| 314 | + | |
|---|
| 315 | + | |
|---|
| 316 | + | |
|---|
| 317 | + | (g)At least 50 percent of the negative emissions credits used by an emitting entity to meet its negative emissions obligation in any calendar year shall be from carbon dioxide removal processes that provide direct climate mitigation benefits to the state. |
|---|
| 318 | + | |
|---|
| 319 | + | |
|---|
| 320 | + | |
|---|
| 321 | + | (h)The state board may adjust any of the percentages specified in subdivision (g) or in paragraphs (1) to (4), inclusive, of subdivision (d) to a lower figure if it determines that it would be infeasible for emitting entities to comply with those requirements. |
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| 322 | + | |
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| 323 | + | |
|---|
| 324 | + | |
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| 325 | + | (i)The state board may allow an emitting entity to reserve negative emissions credits purchased in excess of its obligation in a calendar year pursuant to subdivision (c) and to use those negative emissions credits to meet its obligation in a future calendar year. |
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| 326 | + | |
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| 327 | + | |
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| 328 | + | |
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| 329 | + | (j)Negative emissions resulting from the use of negative emissions credits for the purpose of complying with the obligation pursuant to subdivision (c) shall be included in the calculation of the states net greenhouse gas emissions pursuant to Section 38562.2, even if those negative emissions occurred outside of the state. |
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| 330 | + | |
|---|
| 331 | + | |
|---|
| 332 | + | |
|---|
| 333 | + | |
|---|
| 334 | + | |
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| 335 | + | The provisions of this article are severable. If any provision of this article or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application. |
|---|
| 336 | + | |
|---|
| 337 | + | |
|---|
| 338 | + | |
|---|
| 339 | + | |
|---|
| 340 | + | |
|---|
| 341 | + | No reimbursement is required by this act pursuant to Section 6 of Article XIII B 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 XIII B of the California Constitution. |
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| 342 | + | |
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| 343 | + | |
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| 344 | + | |
|---|
| 345 | + | SEC. 2. Section 38562.2 of the Health and Safety Code is amended to read:38562.2. (a) This section shall be known, and may be cited, as the California Climate Crisis Act.(b) For purposes of this section, net zero greenhouse gas emissions means emissions of greenhouse gases, as defined in subdivision (g) of Section 38505, to the atmosphere are balanced by removals of greenhouse gas emissions over a period of time, as determined by the state board.(c) It is the policy of the state to do both of the following:(1) Achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter. This goal is in addition to, and does not replace or supersede, the statewide greenhouse gas emissions reduction targets in Section 38566.(2) Ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85 percent below the statewide greenhouse gas emissions limit established pursuant to Section 38550.(d) Only carbon dioxide removed by processes certified by the state board pursuant to Section 38562.3 shall be eligible to be counted for the purpose of counterbalancing statewide greenhouse gas emissions when determining the states progress toward achieving net zero and net negative greenhouse gas emissions pursuant to subdivision (c).(d)(e) The state board shall work with relevant state agencies to do both of the following:(1) Ensure that updates to the scoping plan required pursuant to Section 38561 identify and recommend measures to achieve the policy goals stated in subdivision (c).(2) Identify and implement a variety of policies and strategies that enable carbon dioxide removal solutions and carbon capture, utilization, and storage technologies in California to complement emissions reductions and achieve the policy goals stated in subdivision (c).(e)(f) (1) By December 31, 2035, the state board shall evaluate the feasibility and tradeoffs of achieving the policy goal stated in paragraph (2) of subdivision (c) relative to alternative scenarios that achieve the policy goals stated in paragraph (1) of subdivision (c), and report its findings and recommendations to the Legislature.(2) The state board shall report to the Joint Legislative Committee on Climate Change Policies annually on progress toward the goals stated in subdivision (c).(3) As part of its annual reporting requirements pursuant to Section 38592.6, the Legislative Analysts Office, until January 1, 2030, shall conduct independent analyses of the states progress toward the goals stated in subdivision (c) and shall prepare an annual report detailing its review, which may include recommendations for improvements in state actions taken to achieve the goals stated in subdivision (c). When appropriate, these annual reports may incorporate reviews of the state boards evaluation and reporting practices, and may include recommendations for potential changes to advance transparency and accountability. A report prepared pursuant to this paragraph shall be made available to the public. |
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| 346 | + | |
|---|
| 347 | + | SEC. 2. Section 38562.2 of the Health and Safety Code is amended to read: |
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| 348 | + | |
|---|
| 349 | + | ### SEC. 2. |
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| 350 | + | |
|---|
| 351 | + | 38562.2. (a) This section shall be known, and may be cited, as the California Climate Crisis Act.(b) For purposes of this section, net zero greenhouse gas emissions means emissions of greenhouse gases, as defined in subdivision (g) of Section 38505, to the atmosphere are balanced by removals of greenhouse gas emissions over a period of time, as determined by the state board.(c) It is the policy of the state to do both of the following:(1) Achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter. This goal is in addition to, and does not replace or supersede, the statewide greenhouse gas emissions reduction targets in Section 38566.(2) Ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85 percent below the statewide greenhouse gas emissions limit established pursuant to Section 38550.(d) Only carbon dioxide removed by processes certified by the state board pursuant to Section 38562.3 shall be eligible to be counted for the purpose of counterbalancing statewide greenhouse gas emissions when determining the states progress toward achieving net zero and net negative greenhouse gas emissions pursuant to subdivision (c).(d)(e) The state board shall work with relevant state agencies to do both of the following:(1) Ensure that updates to the scoping plan required pursuant to Section 38561 identify and recommend measures to achieve the policy goals stated in subdivision (c).(2) Identify and implement a variety of policies and strategies that enable carbon dioxide removal solutions and carbon capture, utilization, and storage technologies in California to complement emissions reductions and achieve the policy goals stated in subdivision (c).(e)(f) (1) By December 31, 2035, the state board shall evaluate the feasibility and tradeoffs of achieving the policy goal stated in paragraph (2) of subdivision (c) relative to alternative scenarios that achieve the policy goals stated in paragraph (1) of subdivision (c), and report its findings and recommendations to the Legislature.(2) The state board shall report to the Joint Legislative Committee on Climate Change Policies annually on progress toward the goals stated in subdivision (c).(3) As part of its annual reporting requirements pursuant to Section 38592.6, the Legislative Analysts Office, until January 1, 2030, shall conduct independent analyses of the states progress toward the goals stated in subdivision (c) and shall prepare an annual report detailing its review, which may include recommendations for improvements in state actions taken to achieve the goals stated in subdivision (c). When appropriate, these annual reports may incorporate reviews of the state boards evaluation and reporting practices, and may include recommendations for potential changes to advance transparency and accountability. A report prepared pursuant to this paragraph shall be made available to the public. |
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| 352 | + | |
|---|
| 353 | + | 38562.2. (a) This section shall be known, and may be cited, as the California Climate Crisis Act.(b) For purposes of this section, net zero greenhouse gas emissions means emissions of greenhouse gases, as defined in subdivision (g) of Section 38505, to the atmosphere are balanced by removals of greenhouse gas emissions over a period of time, as determined by the state board.(c) It is the policy of the state to do both of the following:(1) Achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter. This goal is in addition to, and does not replace or supersede, the statewide greenhouse gas emissions reduction targets in Section 38566.(2) Ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85 percent below the statewide greenhouse gas emissions limit established pursuant to Section 38550.(d) Only carbon dioxide removed by processes certified by the state board pursuant to Section 38562.3 shall be eligible to be counted for the purpose of counterbalancing statewide greenhouse gas emissions when determining the states progress toward achieving net zero and net negative greenhouse gas emissions pursuant to subdivision (c).(d)(e) The state board shall work with relevant state agencies to do both of the following:(1) Ensure that updates to the scoping plan required pursuant to Section 38561 identify and recommend measures to achieve the policy goals stated in subdivision (c).(2) Identify and implement a variety of policies and strategies that enable carbon dioxide removal solutions and carbon capture, utilization, and storage technologies in California to complement emissions reductions and achieve the policy goals stated in subdivision (c).(e)(f) (1) By December 31, 2035, the state board shall evaluate the feasibility and tradeoffs of achieving the policy goal stated in paragraph (2) of subdivision (c) relative to alternative scenarios that achieve the policy goals stated in paragraph (1) of subdivision (c), and report its findings and recommendations to the Legislature.(2) The state board shall report to the Joint Legislative Committee on Climate Change Policies annually on progress toward the goals stated in subdivision (c).(3) As part of its annual reporting requirements pursuant to Section 38592.6, the Legislative Analysts Office, until January 1, 2030, shall conduct independent analyses of the states progress toward the goals stated in subdivision (c) and shall prepare an annual report detailing its review, which may include recommendations for improvements in state actions taken to achieve the goals stated in subdivision (c). When appropriate, these annual reports may incorporate reviews of the state boards evaluation and reporting practices, and may include recommendations for potential changes to advance transparency and accountability. A report prepared pursuant to this paragraph shall be made available to the public. |
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| 354 | + | |
|---|
| 355 | + | 38562.2. (a) This section shall be known, and may be cited, as the California Climate Crisis Act.(b) For purposes of this section, net zero greenhouse gas emissions means emissions of greenhouse gases, as defined in subdivision (g) of Section 38505, to the atmosphere are balanced by removals of greenhouse gas emissions over a period of time, as determined by the state board.(c) It is the policy of the state to do both of the following:(1) Achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter. This goal is in addition to, and does not replace or supersede, the statewide greenhouse gas emissions reduction targets in Section 38566.(2) Ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85 percent below the statewide greenhouse gas emissions limit established pursuant to Section 38550.(d) Only carbon dioxide removed by processes certified by the state board pursuant to Section 38562.3 shall be eligible to be counted for the purpose of counterbalancing statewide greenhouse gas emissions when determining the states progress toward achieving net zero and net negative greenhouse gas emissions pursuant to subdivision (c).(d)(e) The state board shall work with relevant state agencies to do both of the following:(1) Ensure that updates to the scoping plan required pursuant to Section 38561 identify and recommend measures to achieve the policy goals stated in subdivision (c).(2) Identify and implement a variety of policies and strategies that enable carbon dioxide removal solutions and carbon capture, utilization, and storage technologies in California to complement emissions reductions and achieve the policy goals stated in subdivision (c).(e)(f) (1) By December 31, 2035, the state board shall evaluate the feasibility and tradeoffs of achieving the policy goal stated in paragraph (2) of subdivision (c) relative to alternative scenarios that achieve the policy goals stated in paragraph (1) of subdivision (c), and report its findings and recommendations to the Legislature.(2) The state board shall report to the Joint Legislative Committee on Climate Change Policies annually on progress toward the goals stated in subdivision (c).(3) As part of its annual reporting requirements pursuant to Section 38592.6, the Legislative Analysts Office, until January 1, 2030, shall conduct independent analyses of the states progress toward the goals stated in subdivision (c) and shall prepare an annual report detailing its review, which may include recommendations for improvements in state actions taken to achieve the goals stated in subdivision (c). When appropriate, these annual reports may incorporate reviews of the state boards evaluation and reporting practices, and may include recommendations for potential changes to advance transparency and accountability. A report prepared pursuant to this paragraph shall be made available to the public. |
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| 356 | + | |
|---|
| 357 | + | |
|---|
| 358 | + | |
|---|
| 359 | + | 38562.2. (a) This section shall be known, and may be cited, as the California Climate Crisis Act. |
|---|
| 360 | + | |
|---|
| 361 | + | (b) For purposes of this section, net zero greenhouse gas emissions means emissions of greenhouse gases, as defined in subdivision (g) of Section 38505, to the atmosphere are balanced by removals of greenhouse gas emissions over a period of time, as determined by the state board. |
|---|
| 362 | + | |
|---|
| 363 | + | (c) It is the policy of the state to do both of the following: |
|---|
| 364 | + | |
|---|
| 365 | + | (1) Achieve net zero greenhouse gas emissions as soon as possible, but no later than 2045, and to achieve and maintain net negative greenhouse gas emissions thereafter. This goal is in addition to, and does not replace or supersede, the statewide greenhouse gas emissions reduction targets in Section 38566. |
|---|
| 366 | + | |
|---|
| 367 | + | (2) Ensure that by 2045, statewide anthropogenic greenhouse gas emissions are reduced to at least 85 percent below the statewide greenhouse gas emissions limit established pursuant to Section 38550. |
|---|
| 368 | + | |
|---|
| 156 | | - | 38562.3. (a) (1) The state board shall develop and adopt regulations, or utilize existing programs and regulations, to ensure the state achieves carbon dioxide removals equivalent to at least 100 percent of statewide greenhouse gas emissions in calendar year 2045, and all subsequent years, in order to achieve the net zero and net negative greenhouse gas emissions goals established pursuant to Section 38562.2.(2) Regulations adopted pursuant to this subdivision shall be consistent with, or impose requirements equivalent to, Chapter 4.3 (commencing with Section 39740) of Part 2 of Division 26 of this code and Part 8 (commencing with Section 71460) of Division 34 of the Public Resources Code, as determined by the state board.(3) Before commencing a formal rulemaking process for regulations adopted pursuant to this subdivision, the state board shall conduct a robust community engagement process that includes outreach that targets residents of communities most likely to be near potential carbon dioxide removal projects. The environmental justice advisory committee established pursuant to Section 38591 shall be invited to participate in planning and implementation of this community engagement process.(b) (1) As part of its efforts undertaken pursuant to subdivision (a), the state board shall establish separate interim targets for greenhouse gas emissions reductions and carbon dioxide removals, to be applicable beginning no later than calendar year 2030, and report on progress toward achieving those targets. The state board shall post any report prepared pursuant to this subdivision on its internet website.(2) The interim target for carbon dioxide removals established pursuant to paragraph (1) for calendar year 2030 shall be at least 1 percent of projected total greenhouse gas emissions for that calendar year.(c) For purposes of subdivision (c) of Section 38562.2, subdivisions (a) and (b), the state board shall only certify approve carbon dioxide removal processes that meet all of the following:(1) The carbon dioxide removal process results in removals of carbon dioxide from the atmosphere, directly or indirectly, atmosphere and not only the avoidance or reduction of greenhouse gas emissions. emissions or the prevention of greenhouse gas emissions through the use of CCUS technology, as defined in Section 39741. The carbon dioxide process may remove carbon from the atmosphere directly or indirectly, including by direct air capture or using carbon stored in biomass or soil or absorbed in water.(2) The carbon dioxide removal process results in removals of carbon dioxide that are quantifiable, verifiable, and enforceable by the state board.(2)(3) The carbon dioxide removal process is not used for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.(3)(4) If the carbon dioxide removal process requires biomass as a feedstock, it only uses biomass that is produced as a residue or waste product, including, but not limited to, agricultural residues and byproducts of sustainable forest management.(4)(5) The carbon dioxide removal process is consistent with the requirements of Section 39741.1.(5)(6) The carbon dioxide removal process uses a form of long-term carbon storage with requirements for financial responsibility and longevity consistent with, or equivalent to, those required under Section 39741.5, as determined by the state board.(d) For purposes of this section, the state board shall include nature-based carbon dioxide removal strategies pursuant to Section 38561.5 that meet all of the requirements of subdivision (c), either individually or when coupled with carbon dioxide removal processes with sufficiently long-term carbon storage such that carbon dioxide removal credits based on the combined impacts of the coupled processes meet all of the requirements of subdivision (c).(d)(e) To the extent feasible, the requirements of this section shall apply equivalently to all carbon dioxide removal processes certified approved by the state board whether located inside or outside of the state.(f) The state board shall not approve a carbon dioxide removal process pursuant to subdivision (c) that includes an industrial facility or engineered infrastructure for any portion of the process until the owner or operator of the facility or infrastructure provides a written attestation to the state board that includes both of the following:(1) The owner or operator has done meaningful community engagement, including conducting at least three community meetings that include explaining the scope and potential impacts of the proposed facility or infrastructure before beginning construction or operation of it.(2) The owner or operator has a plan for providing meaningful benefits to residents of the surrounding community, such as through an enforceable community benefits agreement or the establishment of a community oversight and advisory body with members representing local residents for the purpose of addressing community concerns and prioritizing community investments.(g) The state board shall post on its internet website attestations received for carbon dioxide removal processes pursuant to subdivision (f) and provide a process for a third party to report to the state board an allegation that an attestation was untruthful or that a commitment made in the attestation is not being met. The state board may determine appropriate remedies if a violation is found to have been committed, including revoking approval of the carbon dioxide removal process.(h) No later than July 1, 2026, and annually thereafter, the chair of the state board shall appear before the Joint Legislative Committee on Climate Change Policies established pursuant to Section 9147.10 of the Government Code to report on the implementation of this section. The environmental justice advisory committee established pursuant to Section 38591 shall also be invited to appear to provide comments and recommendations on the implementation of this section. |
|---|
| 157 | | - | |
|---|
| 158 | | - | 38562.3. (a) (1) The state board shall develop and adopt regulations, or utilize existing programs and regulations, to ensure the state achieves carbon dioxide removals equivalent to at least 100 percent of statewide greenhouse gas emissions in calendar year 2045, and all subsequent years, in order to achieve the net zero and net negative greenhouse gas emissions goals established pursuant to Section 38562.2.(2) Regulations adopted pursuant to this subdivision shall be consistent with, or impose requirements equivalent to, Chapter 4.3 (commencing with Section 39740) of Part 2 of Division 26 of this code and Part 8 (commencing with Section 71460) of Division 34 of the Public Resources Code, as determined by the state board.(3) Before commencing a formal rulemaking process for regulations adopted pursuant to this subdivision, the state board shall conduct a robust community engagement process that includes outreach that targets residents of communities most likely to be near potential carbon dioxide removal projects. The environmental justice advisory committee established pursuant to Section 38591 shall be invited to participate in planning and implementation of this community engagement process.(b) (1) As part of its efforts undertaken pursuant to subdivision (a), the state board shall establish separate interim targets for greenhouse gas emissions reductions and carbon dioxide removals, to be applicable beginning no later than calendar year 2030, and report on progress toward achieving those targets. The state board shall post any report prepared pursuant to this subdivision on its internet website.(2) The interim target for carbon dioxide removals established pursuant to paragraph (1) for calendar year 2030 shall be at least 1 percent of projected total greenhouse gas emissions for that calendar year.(c) For purposes of subdivision (c) of Section 38562.2, subdivisions (a) and (b), the state board shall only certify approve carbon dioxide removal processes that meet all of the following:(1) The carbon dioxide removal process results in removals of carbon dioxide from the atmosphere, directly or indirectly, atmosphere and not only the avoidance or reduction of greenhouse gas emissions. emissions or the prevention of greenhouse gas emissions through the use of CCUS technology, as defined in Section 39741. The carbon dioxide process may remove carbon from the atmosphere directly or indirectly, including by direct air capture or using carbon stored in biomass or soil or absorbed in water.(2) The carbon dioxide removal process results in removals of carbon dioxide that are quantifiable, verifiable, and enforceable by the state board.(2)(3) The carbon dioxide removal process is not used for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.(3)(4) If the carbon dioxide removal process requires biomass as a feedstock, it only uses biomass that is produced as a residue or waste product, including, but not limited to, agricultural residues and byproducts of sustainable forest management.(4)(5) The carbon dioxide removal process is consistent with the requirements of Section 39741.1.(5)(6) The carbon dioxide removal process uses a form of long-term carbon storage with requirements for financial responsibility and longevity consistent with, or equivalent to, those required under Section 39741.5, as determined by the state board.(d) For purposes of this section, the state board shall include nature-based carbon dioxide removal strategies pursuant to Section 38561.5 that meet all of the requirements of subdivision (c), either individually or when coupled with carbon dioxide removal processes with sufficiently long-term carbon storage such that carbon dioxide removal credits based on the combined impacts of the coupled processes meet all of the requirements of subdivision (c).(d)(e) To the extent feasible, the requirements of this section shall apply equivalently to all carbon dioxide removal processes certified approved by the state board whether located inside or outside of the state.(f) The state board shall not approve a carbon dioxide removal process pursuant to subdivision (c) that includes an industrial facility or engineered infrastructure for any portion of the process until the owner or operator of the facility or infrastructure provides a written attestation to the state board that includes both of the following:(1) The owner or operator has done meaningful community engagement, including conducting at least three community meetings that include explaining the scope and potential impacts of the proposed facility or infrastructure before beginning construction or operation of it.(2) The owner or operator has a plan for providing meaningful benefits to residents of the surrounding community, such as through an enforceable community benefits agreement or the establishment of a community oversight and advisory body with members representing local residents for the purpose of addressing community concerns and prioritizing community investments.(g) The state board shall post on its internet website attestations received for carbon dioxide removal processes pursuant to subdivision (f) and provide a process for a third party to report to the state board an allegation that an attestation was untruthful or that a commitment made in the attestation is not being met. The state board may determine appropriate remedies if a violation is found to have been committed, including revoking approval of the carbon dioxide removal process.(h) No later than July 1, 2026, and annually thereafter, the chair of the state board shall appear before the Joint Legislative Committee on Climate Change Policies established pursuant to Section 9147.10 of the Government Code to report on the implementation of this section. The environmental justice advisory committee established pursuant to Section 38591 shall also be invited to appear to provide comments and recommendations on the implementation of this section. |
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| 159 | | - | |
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| 160 | | - | 38562.3. (a) (1) The state board shall develop and adopt regulations, or utilize existing programs and regulations, to ensure the state achieves carbon dioxide removals equivalent to at least 100 percent of statewide greenhouse gas emissions in calendar year 2045, and all subsequent years, in order to achieve the net zero and net negative greenhouse gas emissions goals established pursuant to Section 38562.2.(2) Regulations adopted pursuant to this subdivision shall be consistent with, or impose requirements equivalent to, Chapter 4.3 (commencing with Section 39740) of Part 2 of Division 26 of this code and Part 8 (commencing with Section 71460) of Division 34 of the Public Resources Code, as determined by the state board.(3) Before commencing a formal rulemaking process for regulations adopted pursuant to this subdivision, the state board shall conduct a robust community engagement process that includes outreach that targets residents of communities most likely to be near potential carbon dioxide removal projects. The environmental justice advisory committee established pursuant to Section 38591 shall be invited to participate in planning and implementation of this community engagement process.(b) (1) As part of its efforts undertaken pursuant to subdivision (a), the state board shall establish separate interim targets for greenhouse gas emissions reductions and carbon dioxide removals, to be applicable beginning no later than calendar year 2030, and report on progress toward achieving those targets. The state board shall post any report prepared pursuant to this subdivision on its internet website.(2) The interim target for carbon dioxide removals established pursuant to paragraph (1) for calendar year 2030 shall be at least 1 percent of projected total greenhouse gas emissions for that calendar year.(c) For purposes of subdivision (c) of Section 38562.2, subdivisions (a) and (b), the state board shall only certify approve carbon dioxide removal processes that meet all of the following:(1) The carbon dioxide removal process results in removals of carbon dioxide from the atmosphere, directly or indirectly, atmosphere and not only the avoidance or reduction of greenhouse gas emissions. emissions or the prevention of greenhouse gas emissions through the use of CCUS technology, as defined in Section 39741. The carbon dioxide process may remove carbon from the atmosphere directly or indirectly, including by direct air capture or using carbon stored in biomass or soil or absorbed in water.(2) The carbon dioxide removal process results in removals of carbon dioxide that are quantifiable, verifiable, and enforceable by the state board.(2)(3) The carbon dioxide removal process is not used for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.(3)(4) If the carbon dioxide removal process requires biomass as a feedstock, it only uses biomass that is produced as a residue or waste product, including, but not limited to, agricultural residues and byproducts of sustainable forest management.(4)(5) The carbon dioxide removal process is consistent with the requirements of Section 39741.1.(5)(6) The carbon dioxide removal process uses a form of long-term carbon storage with requirements for financial responsibility and longevity consistent with, or equivalent to, those required under Section 39741.5, as determined by the state board.(d) For purposes of this section, the state board shall include nature-based carbon dioxide removal strategies pursuant to Section 38561.5 that meet all of the requirements of subdivision (c), either individually or when coupled with carbon dioxide removal processes with sufficiently long-term carbon storage such that carbon dioxide removal credits based on the combined impacts of the coupled processes meet all of the requirements of subdivision (c).(d)(e) To the extent feasible, the requirements of this section shall apply equivalently to all carbon dioxide removal processes certified approved by the state board whether located inside or outside of the state.(f) The state board shall not approve a carbon dioxide removal process pursuant to subdivision (c) that includes an industrial facility or engineered infrastructure for any portion of the process until the owner or operator of the facility or infrastructure provides a written attestation to the state board that includes both of the following:(1) The owner or operator has done meaningful community engagement, including conducting at least three community meetings that include explaining the scope and potential impacts of the proposed facility or infrastructure before beginning construction or operation of it.(2) The owner or operator has a plan for providing meaningful benefits to residents of the surrounding community, such as through an enforceable community benefits agreement or the establishment of a community oversight and advisory body with members representing local residents for the purpose of addressing community concerns and prioritizing community investments.(g) The state board shall post on its internet website attestations received for carbon dioxide removal processes pursuant to subdivision (f) and provide a process for a third party to report to the state board an allegation that an attestation was untruthful or that a commitment made in the attestation is not being met. The state board may determine appropriate remedies if a violation is found to have been committed, including revoking approval of the carbon dioxide removal process.(h) No later than July 1, 2026, and annually thereafter, the chair of the state board shall appear before the Joint Legislative Committee on Climate Change Policies established pursuant to Section 9147.10 of the Government Code to report on the implementation of this section. The environmental justice advisory committee established pursuant to Section 38591 shall also be invited to appear to provide comments and recommendations on the implementation of this section. |
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| 401 | + | 38562.3. (a) (1) The state board shall develop and adopt regulations, or utilize existing programs and regulations, to ensure the state achieves carbon dioxide removals equivalent to at least 100 percent of statewide greenhouse gas emissions in calendar year 2045, and all subsequent years, in order to achieve the net zero and net negative greenhouse gas emissions goals established pursuant to Section 38562.2.(2) Regulations adopted pursuant to this subdivision shall be consistent with, or impose requirements equivalent to, Chapter 4.3 (commencing with Section 39740) of Part 2 of Division 26 of this code and Part 8 (commencing with Section 71460) of Division 34 of the Public Resources Code, as determined by the state board.(b) (1) As part of its efforts undertaken pursuant to subdivision (a), the state board shall establish separate interim targets for greenhouse gas emissions reductions and carbon dioxide removals, to be applicable beginning no later than calendar year 2030, and report on progress toward achieving those targets. The state board shall post any report prepared pursuant to this subdivision on its internet website.(2) The interim target for carbon dioxide removals established pursuant to paragraph (1) for calendar year 2030 shall be at least 1 percent of projected total greenhouse gas emissions for that calendar year.(c) For purposes of subdivision (c) of Section 38562.2, the state board shall only certify carbon dioxide removal processes that meet all of the following:(1) The carbon dioxide removal process results in removals of carbon dioxide from the atmosphere, directly or indirectly, and not only the avoidance or reduction of greenhouse gas emissions.(2) The carbon dioxide removal process is not used for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.(3) If the carbon dioxide removal process requires biomass as a feedstock, it only uses biomass that is produced as a residue or waste product, including, but not limited to, agricultural residues and byproducts of sustainable forest management.(4) The carbon dioxide removal process is consistent with the requirements of Section 39741.1.(5) The carbon dioxide removal process uses a form of long-term carbon storage with requirements for financial responsibility and longevity consistent with, or equivalent to, those required under Section 39741.5, as determined by the state board.(d) To the extent feasible, the requirements of this section shall apply equivalently to all carbon dioxide removal processes certified by the state board whether located inside or outside of the state. |
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| 186 | | - | (3) |
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| 187 | | - | |
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| 188 | | - | |
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| 189 | | - | |
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| 190 | | - | (4) If the carbon dioxide removal process requires biomass as a feedstock, it only uses biomass that is produced as a residue or waste product, including, but not limited to, agricultural residues and byproducts of sustainable forest management. |
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| 191 | | - | |
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| 192 | | - | (4) |
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| 193 | | - | |
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| 194 | | - | |
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| 195 | | - | |
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| 196 | | - | (5) The carbon dioxide removal process is consistent with the requirements of Section 39741.1. |
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| 197 | | - | |
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| 198 | | - | (5) |
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| 199 | | - | |
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| 200 | | - | |
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| 201 | | - | |
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| 202 | | - | (6) The carbon dioxide removal process uses a form of long-term carbon storage with requirements for financial responsibility and longevity consistent with, or equivalent to, those required under Section 39741.5, as determined by the state board. |
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| 203 | | - | |
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| 204 | | - | (d) For purposes of this section, the state board shall include nature-based carbon dioxide removal strategies pursuant to Section 38561.5 that meet all of the requirements of subdivision (c), either individually or when coupled with carbon dioxide removal processes with sufficiently long-term carbon storage such that carbon dioxide removal credits based on the combined impacts of the coupled processes meet all of the requirements of subdivision (c). |
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| 205 | | - | |
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| 206 | | - | (d) |
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| 207 | | - | |
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| 208 | | - | |
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| 209 | | - | |
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| 210 | | - | (e) To the extent feasible, the requirements of this section shall apply equivalently to all carbon dioxide removal processes certified approved by the state board whether located inside or outside of the state. |
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| 211 | | - | |
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| 212 | | - | (f) The state board shall not approve a carbon dioxide removal process pursuant to subdivision (c) that includes an industrial facility or engineered infrastructure for any portion of the process until the owner or operator of the facility or infrastructure provides a written attestation to the state board that includes both of the following: |
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| 213 | | - | |
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| 214 | | - | (1) The owner or operator has done meaningful community engagement, including conducting at least three community meetings that include explaining the scope and potential impacts of the proposed facility or infrastructure before beginning construction or operation of it. |
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| 215 | | - | |
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| 216 | | - | (2) The owner or operator has a plan for providing meaningful benefits to residents of the surrounding community, such as through an enforceable community benefits agreement or the establishment of a community oversight and advisory body with members representing local residents for the purpose of addressing community concerns and prioritizing community investments. |
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| 217 | | - | |
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| 218 | | - | (g) The state board shall post on its internet website attestations received for carbon dioxide removal processes pursuant to subdivision (f) and provide a process for a third party to report to the state board an allegation that an attestation was untruthful or that a commitment made in the attestation is not being met. The state board may determine appropriate remedies if a violation is found to have been committed, including revoking approval of the carbon dioxide removal process. |
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| 219 | | - | |
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| 220 | | - | (h) No later than July 1, 2026, and annually thereafter, the chair of the state board shall appear before the Joint Legislative Committee on Climate Change Policies established pursuant to Section 9147.10 of the Government Code to report on the implementation of this section. The environmental justice advisory committee established pursuant to Section 38591 shall also be invited to appear to provide comments and recommendations on the implementation of this section. |
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| 221 | | - | |
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| 222 | | - | SEC. 3. Section 39741.1 of the Health and Safety Code is amended to read:39741.1. (a) The state board shall establish a Carbon Capture, Removal, Utilization, and Storage Program to do all of the following:(1) Evaluate the efficacy, safety, and viability of CCUS and CDR technologies and facilitate the capture and sequestration of carbon dioxide from these technologies, where appropriate.(2) Develop monitoring and reporting schedules to state regulatory agencies for carbon dioxide capture, removal, or sequestration projects to ensure efficacy, safety, and viability of the projects.(3) Ensure that all carbon dioxide capture, removal, or sequestration projects include the following, as appropriate:(A) Strategies to minimize, to the maximum extent technologically feasible, copollutant emissions from facilities where CCUS or CDR technology is deployed to ensure that the use of carbon dioxide removal technologies and carbon capture and storage technologies does not have an adverse impact on local air quality and public health, particularly in low-income and disadvantaged communities.(B) Strategies to ensure that carbon dioxide capture, removal, or sequestration projects minimize, to the maximum extent technologically feasible, local water pollution or air pollution from construction- and transportation-related impacts from the projects in communities adjacent to carbon dioxide capture, removal, or sequestration projects, including a geologic storage complex.(C) Strategies to minimize the risk of seismic impacts to, and from, geologic storage projects, including the risk of gas leakage due to seismic activity.(D) Monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide, and monitoring of sequestered carbon dioxide, including movement within the geologic storage complex, 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 and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir. In adopting regulations pursuant to subdivision (c) that pertain to this subparagraph, the state board shall consult with the State Geologist.(E) Monitoring of criteria pollutants and potential toxic air contaminants at the one or more sites within the geologic storage complex and at mobile or fixed sites within the facility, and monitoring of ambient carbon dioxide concentrations over the geologic storage complex to facilitate leak detection. Monitoring required under this section shall continue 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 and to achievement 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.(F) Projects meet best available control technology requirements as determined by the local air district.(b) In carrying out the objectives of the program, the state board shall prioritize the following:(1) Reducing the emissions of greenhouse gases.(2) Minimizing land use and potential environmental, noise, air quality, water quality, traffic, seismic, and other related impacts, and any potential health and safety risks, to all communities where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located to the maximum extent feasible.(3) Maximizing workforce development and employment opportunities in each community where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located, to the extent feasible.(4) Leveraging private funding sources and public-private partnership structures alongside potential state funding sources.(5) Reducing fossil fuel production in the state.(c) The state board shall adopt regulations to implement this section. section no later than July 1, 2027.(d) In developing the program, the state board shall consult with the Geologic Carbon Sequestration Group established pursuant to Section 2213 of the Public Resources Code.(e) In tracking progress toward the states climate targets, the state board shall prevent the double counting of emissions reductions associated with utilizing carbon dioxide that is captured or removed from the atmosphere. The state board may use a state board-approved third-party verifier to satisfy this subdivision.(f) (1) Beginning January 1, 2025, and every two years thereafter, the state board shall report to the Legislature on the progress of the program. The report shall, at a minimum, include an evaluation of potential local environmental impacts and potential long-term leakage impacts as well as recommendations on measures to reduce these impacts of completed carbon dioxide capture, removal, or sequestration projects.(2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code. |
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| 223 | | - | |
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| 224 | | - | SEC. 3. Section 39741.1 of the Health and Safety Code is amended to read: |
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| 225 | | - | |
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| 226 | | - | ### SEC. 3. |
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| 227 | | - | |
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| 228 | | - | 39741.1. (a) The state board shall establish a Carbon Capture, Removal, Utilization, and Storage Program to do all of the following:(1) Evaluate the efficacy, safety, and viability of CCUS and CDR technologies and facilitate the capture and sequestration of carbon dioxide from these technologies, where appropriate.(2) Develop monitoring and reporting schedules to state regulatory agencies for carbon dioxide capture, removal, or sequestration projects to ensure efficacy, safety, and viability of the projects.(3) Ensure that all carbon dioxide capture, removal, or sequestration projects include the following, as appropriate:(A) Strategies to minimize, to the maximum extent technologically feasible, copollutant emissions from facilities where CCUS or CDR technology is deployed to ensure that the use of carbon dioxide removal technologies and carbon capture and storage technologies does not have an adverse impact on local air quality and public health, particularly in low-income and disadvantaged communities.(B) Strategies to ensure that carbon dioxide capture, removal, or sequestration projects minimize, to the maximum extent technologically feasible, local water pollution or air pollution from construction- and transportation-related impacts from the projects in communities adjacent to carbon dioxide capture, removal, or sequestration projects, including a geologic storage complex.(C) Strategies to minimize the risk of seismic impacts to, and from, geologic storage projects, including the risk of gas leakage due to seismic activity.(D) Monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide, and monitoring of sequestered carbon dioxide, including movement within the geologic storage complex, 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 and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir. In adopting regulations pursuant to subdivision (c) that pertain to this subparagraph, the state board shall consult with the State Geologist.(E) Monitoring of criteria pollutants and potential toxic air contaminants at the one or more sites within the geologic storage complex and at mobile or fixed sites within the facility, and monitoring of ambient carbon dioxide concentrations over the geologic storage complex to facilitate leak detection. Monitoring required under this section shall continue 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 and to achievement 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.(F) Projects meet best available control technology requirements as determined by the local air district.(b) In carrying out the objectives of the program, the state board shall prioritize the following:(1) Reducing the emissions of greenhouse gases.(2) Minimizing land use and potential environmental, noise, air quality, water quality, traffic, seismic, and other related impacts, and any potential health and safety risks, to all communities where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located to the maximum extent feasible.(3) Maximizing workforce development and employment opportunities in each community where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located, to the extent feasible.(4) Leveraging private funding sources and public-private partnership structures alongside potential state funding sources.(5) Reducing fossil fuel production in the state.(c) The state board shall adopt regulations to implement this section. section no later than July 1, 2027.(d) In developing the program, the state board shall consult with the Geologic Carbon Sequestration Group established pursuant to Section 2213 of the Public Resources Code.(e) In tracking progress toward the states climate targets, the state board shall prevent the double counting of emissions reductions associated with utilizing carbon dioxide that is captured or removed from the atmosphere. The state board may use a state board-approved third-party verifier to satisfy this subdivision.(f) (1) Beginning January 1, 2025, and every two years thereafter, the state board shall report to the Legislature on the progress of the program. The report shall, at a minimum, include an evaluation of potential local environmental impacts and potential long-term leakage impacts as well as recommendations on measures to reduce these impacts of completed carbon dioxide capture, removal, or sequestration projects.(2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code. |
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| 229 | | - | |
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| 230 | | - | 39741.1. (a) The state board shall establish a Carbon Capture, Removal, Utilization, and Storage Program to do all of the following:(1) Evaluate the efficacy, safety, and viability of CCUS and CDR technologies and facilitate the capture and sequestration of carbon dioxide from these technologies, where appropriate.(2) Develop monitoring and reporting schedules to state regulatory agencies for carbon dioxide capture, removal, or sequestration projects to ensure efficacy, safety, and viability of the projects.(3) Ensure that all carbon dioxide capture, removal, or sequestration projects include the following, as appropriate:(A) Strategies to minimize, to the maximum extent technologically feasible, copollutant emissions from facilities where CCUS or CDR technology is deployed to ensure that the use of carbon dioxide removal technologies and carbon capture and storage technologies does not have an adverse impact on local air quality and public health, particularly in low-income and disadvantaged communities.(B) Strategies to ensure that carbon dioxide capture, removal, or sequestration projects minimize, to the maximum extent technologically feasible, local water pollution or air pollution from construction- and transportation-related impacts from the projects in communities adjacent to carbon dioxide capture, removal, or sequestration projects, including a geologic storage complex.(C) Strategies to minimize the risk of seismic impacts to, and from, geologic storage projects, including the risk of gas leakage due to seismic activity.(D) Monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide, and monitoring of sequestered carbon dioxide, including movement within the geologic storage complex, 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 and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir. In adopting regulations pursuant to subdivision (c) that pertain to this subparagraph, the state board shall consult with the State Geologist.(E) Monitoring of criteria pollutants and potential toxic air contaminants at the one or more sites within the geologic storage complex and at mobile or fixed sites within the facility, and monitoring of ambient carbon dioxide concentrations over the geologic storage complex to facilitate leak detection. Monitoring required under this section shall continue 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 and to achievement 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.(F) Projects meet best available control technology requirements as determined by the local air district.(b) In carrying out the objectives of the program, the state board shall prioritize the following:(1) Reducing the emissions of greenhouse gases.(2) Minimizing land use and potential environmental, noise, air quality, water quality, traffic, seismic, and other related impacts, and any potential health and safety risks, to all communities where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located to the maximum extent feasible.(3) Maximizing workforce development and employment opportunities in each community where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located, to the extent feasible.(4) Leveraging private funding sources and public-private partnership structures alongside potential state funding sources.(5) Reducing fossil fuel production in the state.(c) The state board shall adopt regulations to implement this section. section no later than July 1, 2027.(d) In developing the program, the state board shall consult with the Geologic Carbon Sequestration Group established pursuant to Section 2213 of the Public Resources Code.(e) In tracking progress toward the states climate targets, the state board shall prevent the double counting of emissions reductions associated with utilizing carbon dioxide that is captured or removed from the atmosphere. The state board may use a state board-approved third-party verifier to satisfy this subdivision.(f) (1) Beginning January 1, 2025, and every two years thereafter, the state board shall report to the Legislature on the progress of the program. The report shall, at a minimum, include an evaluation of potential local environmental impacts and potential long-term leakage impacts as well as recommendations on measures to reduce these impacts of completed carbon dioxide capture, removal, or sequestration projects.(2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code. |
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| 231 | | - | |
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| 232 | | - | 39741.1. (a) The state board shall establish a Carbon Capture, Removal, Utilization, and Storage Program to do all of the following:(1) Evaluate the efficacy, safety, and viability of CCUS and CDR technologies and facilitate the capture and sequestration of carbon dioxide from these technologies, where appropriate.(2) Develop monitoring and reporting schedules to state regulatory agencies for carbon dioxide capture, removal, or sequestration projects to ensure efficacy, safety, and viability of the projects.(3) Ensure that all carbon dioxide capture, removal, or sequestration projects include the following, as appropriate:(A) Strategies to minimize, to the maximum extent technologically feasible, copollutant emissions from facilities where CCUS or CDR technology is deployed to ensure that the use of carbon dioxide removal technologies and carbon capture and storage technologies does not have an adverse impact on local air quality and public health, particularly in low-income and disadvantaged communities.(B) Strategies to ensure that carbon dioxide capture, removal, or sequestration projects minimize, to the maximum extent technologically feasible, local water pollution or air pollution from construction- and transportation-related impacts from the projects in communities adjacent to carbon dioxide capture, removal, or sequestration projects, including a geologic storage complex.(C) Strategies to minimize the risk of seismic impacts to, and from, geologic storage projects, including the risk of gas leakage due to seismic activity.(D) Monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide, and monitoring of sequestered carbon dioxide, including movement within the geologic storage complex, 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 and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir. In adopting regulations pursuant to subdivision (c) that pertain to this subparagraph, the state board shall consult with the State Geologist.(E) Monitoring of criteria pollutants and potential toxic air contaminants at the one or more sites within the geologic storage complex and at mobile or fixed sites within the facility, and monitoring of ambient carbon dioxide concentrations over the geologic storage complex to facilitate leak detection. Monitoring required under this section shall continue 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 and to achievement 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.(F) Projects meet best available control technology requirements as determined by the local air district.(b) In carrying out the objectives of the program, the state board shall prioritize the following:(1) Reducing the emissions of greenhouse gases.(2) Minimizing land use and potential environmental, noise, air quality, water quality, traffic, seismic, and other related impacts, and any potential health and safety risks, to all communities where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located to the maximum extent feasible.(3) Maximizing workforce development and employment opportunities in each community where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located, to the extent feasible.(4) Leveraging private funding sources and public-private partnership structures alongside potential state funding sources.(5) Reducing fossil fuel production in the state.(c) The state board shall adopt regulations to implement this section. section no later than July 1, 2027.(d) In developing the program, the state board shall consult with the Geologic Carbon Sequestration Group established pursuant to Section 2213 of the Public Resources Code.(e) In tracking progress toward the states climate targets, the state board shall prevent the double counting of emissions reductions associated with utilizing carbon dioxide that is captured or removed from the atmosphere. The state board may use a state board-approved third-party verifier to satisfy this subdivision.(f) (1) Beginning January 1, 2025, and every two years thereafter, the state board shall report to the Legislature on the progress of the program. The report shall, at a minimum, include an evaluation of potential local environmental impacts and potential long-term leakage impacts as well as recommendations on measures to reduce these impacts of completed carbon dioxide capture, removal, or sequestration projects.(2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code. |
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| 233 | | - | |
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| 234 | | - | |
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| 235 | | - | |
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| 236 | | - | 39741.1. (a) The state board shall establish a Carbon Capture, Removal, Utilization, and Storage Program to do all of the following: |
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| 237 | | - | |
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| 238 | | - | (1) Evaluate the efficacy, safety, and viability of CCUS and CDR technologies and facilitate the capture and sequestration of carbon dioxide from these technologies, where appropriate. |
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| 239 | | - | |
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| 240 | | - | (2) Develop monitoring and reporting schedules to state regulatory agencies for carbon dioxide capture, removal, or sequestration projects to ensure efficacy, safety, and viability of the projects. |
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| 241 | | - | |
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| 242 | | - | (3) Ensure that all carbon dioxide capture, removal, or sequestration projects include the following, as appropriate: |
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| 243 | | - | |
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| 244 | | - | (A) Strategies to minimize, to the maximum extent technologically feasible, copollutant emissions from facilities where CCUS or CDR technology is deployed to ensure that the use of carbon dioxide removal technologies and carbon capture and storage technologies does not have an adverse impact on local air quality and public health, particularly in low-income and disadvantaged communities. |
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| 245 | | - | |
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| 246 | | - | (B) Strategies to ensure that carbon dioxide capture, removal, or sequestration projects minimize, to the maximum extent technologically feasible, local water pollution or air pollution from construction- and transportation-related impacts from the projects in communities adjacent to carbon dioxide capture, removal, or sequestration projects, including a geologic storage complex. |
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| 247 | | - | |
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| 248 | | - | (C) Strategies to minimize the risk of seismic impacts to, and from, geologic storage projects, including the risk of gas leakage due to seismic activity. |
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| 249 | | - | |
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| 250 | | - | (D) Monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide, and monitoring of sequestered carbon dioxide, including movement within the geologic storage complex, 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 and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir. In adopting regulations pursuant to subdivision (c) that pertain to this subparagraph, the state board shall consult with the State Geologist. |
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| 251 | | - | |
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| 252 | | - | (E) Monitoring of criteria pollutants and potential toxic air contaminants at the one or more sites within the geologic storage complex and at mobile or fixed sites within the facility, and monitoring of ambient carbon dioxide concentrations over the geologic storage complex to facilitate leak detection. Monitoring required under this section shall continue 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 and to achievement 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. |
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| 253 | | - | |
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| 254 | | - | (F) Projects meet best available control technology requirements as determined by the local air district. |
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| 255 | | - | |
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| 256 | | - | (b) In carrying out the objectives of the program, the state board shall prioritize the following: |
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| 257 | | - | |
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| 258 | | - | (1) Reducing the emissions of greenhouse gases. |
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| 259 | | - | |
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| 260 | | - | (2) Minimizing land use and potential environmental, noise, air quality, water quality, traffic, seismic, and other related impacts, and any potential health and safety risks, to all communities where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located to the maximum extent feasible. |
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| 261 | | - | |
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| 262 | | - | (3) Maximizing workforce development and employment opportunities in each community where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located, to the extent feasible. |
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| 263 | | - | |
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| 264 | | - | (4) Leveraging private funding sources and public-private partnership structures alongside potential state funding sources. |
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| 265 | | - | |
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| 266 | | - | (5) Reducing fossil fuel production in the state. |
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| 267 | | - | |
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| 268 | | - | (c) The state board shall adopt regulations to implement this section. section no later than July 1, 2027. |
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| 269 | | - | |
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| 270 | | - | (d) In developing the program, the state board shall consult with the Geologic Carbon Sequestration Group established pursuant to Section 2213 of the Public Resources Code. |
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| 271 | | - | |
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| 272 | | - | (e) In tracking progress toward the states climate targets, the state board shall prevent the double counting of emissions reductions associated with utilizing carbon dioxide that is captured or removed from the atmosphere. The state board may use a state board-approved third-party verifier to satisfy this subdivision. |
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| 273 | | - | |
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| 274 | | - | (f) (1) Beginning January 1, 2025, and every two years thereafter, the state board shall report to the Legislature on the progress of the program. The report shall, at a minimum, include an evaluation of potential local environmental impacts and potential long-term leakage impacts as well as recommendations on measures to reduce these impacts of completed carbon dioxide capture, removal, or sequestration projects. |
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| 275 | | - | |
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| 276 | | - | (2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code. |
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| 277 | | - | |
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| 278 | | - | SEC. 4. Section 39741.4 of the Health and Safety Code is amended to read:39741.4. In furtherance of the objectives in Section 39741.1, the state board may adopt protocols to support additional methods of utilization or storage of captured or removed carbon dioxide, including for use in products and in methods of long-term storage as identified by the state board. |
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| 427 | + | SEC. 4. Section 39741.4 of the Health and Safety Code is amended to read:39741.4. In furtherance of the objectives in Section 39741.1, by January 1, 2024, the state board may adopt protocols to support additional methods of utilization or storage of captured or removed carbon dioxide, including carbon capture for use in products and in methods of long-term storage as identified by the state board. |
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