CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 643Introduced by Senator CaballeroFebruary 20, 2025 An act to add Chapter 7.9 (commencing with Section 25690) to Division 15 of the Public Resources Code, relating to climate change. LEGISLATIVE COUNSEL'S DIGESTSB 643, as introduced, Caballero. Carbon Dioxide Removal Purchase Program. Existing law establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. Existing law requires the state board to establish a Carbon Capture, Removal, Utilization, and Storage Program, as provided, to evaluate the efficacy, safety, and viability of carbon capture, utilization, or storage technologies and carbon dioxide removal technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate.Existing law vests the State Energy Resources Conservation and Development Commission with various responsibilities for developing and implementing the states energy policies.This bill would require the commission to establish and administer the Carbon Dioxide Removal Purchase Program to purchase carbon dioxide removal credits generated by eligible carbon dioxide removal projects, as specified. The bill would require the commission, on or before June 30, 2026, and annually thereafter, to conduct and publish on its internet website a survey of carbon dioxide removal projects existing or in development within the state, and, on or before December 31, 2027, and annually thereafter, to publish on its internet website a report describing Carbon Dioxide Removal Purchase Program activities completed and carbon dioxide removal credits purchased to date. The bill would require the commission, on or after July 1, 2026, but on or before December 31, 2030, to purchase and permanently retire from future exchange carbon dioxide removal credits in an amount totaling $80,000,000. The bill would prohibit purchases of carbon dioxide removal credits from exceeding $40,000,000 in credits issued by eligible carbon dioxide removal projects operating in any one of specified project categories or $20,000,000 in credits issued by an individual carbon dioxide removal project sponsor, except as specified. The bill would require the purchase of carbon dioxide removal credits to be made on behalf of the commission or on behalf of another board, department, office, or agency of the state. The bill would require the commission, on or before June 30, 2026, to adopt guidelines, including standards and a definition of eligible carbon dioxide removal projects, for the Carbon Dioxide Removal Purchase Program, which the bill would require to be consistent with, to the extent feasible, certain provisions of the Carbon Capture, Removal, Utilization, and Storage Program, as specified.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. The Legislature finds and declares all of the following:(a) Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of wildfires, extreme heat, drought, storm events, sea-level rise, species loss, and other disruptions to the states communities, environment, and economy.(b) Mitigating this threat requires aggressive action to reduce emissions of carbon dioxide and other greenhouse gases and to remove already-emitted greenhouse gases from the atmosphere.(c) In 2022, the state enacted Assembly Bill 1279 of the 20212022 Regular Session (Chapter 337 of the Statutes of 2022), which established a state target of achieving net zero greenhouse gas emissions no later than 2045, and Senate Bill 905 of the 20212022 Regular Session (Chapter 359 of the Statutes of 2022), which directed the State Air Resources Board to establish a carbon capture, removal, utilization, and storage program to evaluate and set standards for carbon dioxide removal and sequestration projects.(d) The State Air Resources Boards 2022 Scoping Plan for Achieving Carbon Neutrality states, there is no path to carbon neutrality without carbon removal and sequestration, and establishes state targets for carbon dioxide removal of 7 million metric tons of carbon dioxide equivalent by 2030 and 75 million metric tons by 2045.(e) While carbon dioxide removal strategies, such as direct air capture and enhanced mineralization are emerging, significant acceleration in technological and market development will be necessary to achieve these targets.(f) It is in the interest of the state to advance carbon dioxide removal technologies by supporting carbon dioxide removal project deployment within California that meets high standards regarding greenhouse gas mitigation, community benefits, safety, air quality, and environmental protection.SEC. 2. Chapter 7.9 (commencing with Section 25690) is added to Division 15 of the Public Resources Code, to read: CHAPTER 7.9. Carbon Dioxide Removal Purchase Program25690. This chapter shall be known, and may be cited, as the Carbon Dioxide Removal Purchase Program.25691. For purposes of this chapter, the following definitions apply:(a) Additional means a carbon dioxide removal exceeds any removal that is required by law or regulation or that would otherwise occur in a conservative business-as-usual scenario.(b) Carbon dioxide removal means a process or approach that results in removal from the atmosphere of carbon dioxide already emitted to the atmosphere, by direct or indirect means, exclusive of processes that prevent, reduce, or avoid carbon dioxide emissions.(c) Carbon dioxide removal credit means a credit associated with a specified quantity of carbon dioxide removal, issued by a carbon dioxide removal project sponsor, and sold or traded for value to achieve a greenhouse gas emissions removal commitment.(d) Carbon dioxide removal project sponsor means a person or entity responsible for the financing, planning, developing, operating, owning, or otherwise managing a carbon dioxide removal project.(e) Community benefits mechanism means an arrangement or agreement between a carbon dioxide removal project sponsor and one or more geographic host communities or organizations to ensure community members accrue benefits through, and have meaningful opportunities to participate in, the projects implementation, including but not limited to, community benefits agreements, project labor agreements, local hiring requirements, project oversight, project ownership, and profit or revenue sharing.(f) Eligible carbon dioxide removal project means a carbon dioxide removal project that meets the guidelines, including the standards, established pursuant to Section 25694.(g) Program means the Carbon Dioxide Removal Purchase Program established pursuant to this chapter.25692. (a) The commission shall establish and administer the Carbon Dioxide Removal Purchase Program to purchase carbon dioxide removal credits generated by eligible carbon dioxide removal projects.(b) The goal of the program shall be to advance the development of carbon dioxide removal technologies in order to achieve the states climate goals, while supporting the development of eligible carbon dioxide removal projects that provide economic, community, and environmental benefits within the state.(c) In implementing the program, the commission shall do all of the following:(1) Complete the carbon dioxide removal credit purchases described in Section 25693.(2) On or before June 30, 2026, and annually thereafter, conduct and publish on its internet website a survey of carbon dioxide removal projects existing or in development within the state. The survey shall include, but not be limited to, information on carbon dioxide removal projects operating in each of the categories described in subdivision (c) of Section 25693 and on carbon dioxide removal projects carbon removal potential, economic opportunities, and environmental impacts. The survey shall also include information on carbon dioxide removal projects existing or in development within the state that are designed to facilitate removal from the atmosphere of greenhouse gases, other than carbon dioxide, or to facilitate removal of carbon dioxide from media other than the atmosphere.(3) On or before June 30, 2026, identify and document for use in the carbon dioxide removal credit purchases described in Section 25693 all of the following:(A) A transactional or bidding process including a means of payment in advance or on delivery of carbon dioxide removal credits.(B) A minimum carbon dioxide removal credit purchase contract term length.(C) A maximum carbon dioxide removal credit price per ton.(4) Before initiating carbon dioxide removal credit purchases described in Section 25693, conduct at least two public workshops to receive comments from the public. The commission shall design the workshops to allow the public to participate from any location via the internet or a call-in telephone number.(5) On or before December 31, 2027, and annually thereafter, publish on its internet website a report describing program activities completed pursuant to this chapter and carbon dioxide removal credits purchased to date.(d) In implementing the program, the commission may do all of the following:(1) Adopt guidelines or other standards at a commission business meeting for the program, including, but not limited to, the guidelines described in Section 25694.(2) Consult with the State Air Resources Board, the State Water Resources Control Board, the Department of Fish and Wildlife, the State Lands Commission, the Geologic Energy Management Division, local air quality management districts, local air pollution control districts, regional water quality control boards, and other relevant local, state, or federal agencies, to ensure program moneys support achieving the states climate and environmental targets.(3) Consult with private entities regarding the entities purchase of carbon dioxide removal credits in compliance with the program guidelines described in Section 25694, provided that a private entity purchase shall not be counted toward the commissions purchase amount described in Section 25693.25693. (a) On or after July 1, 2026, but on or before December 31, 2030, the commission shall purchase and permanently retire from future exchange carbon dioxide removal credits in an amount totaling eighty million dollars ($80,000,000).(b) The commission shall only purchase carbon dioxide removal credits that meet all of the following requirements:(1) The carbon dioxide removal credits are issued by an eligible carbon dioxide removal project.(2) The carbon dioxide removal credits are additional.(3) The carbon dioxide removal credits are unique to the commissions purchase transaction and not claimed by an entity other than the commission or another board, department, office, or agency of the state in connection with a greenhouse gas emissions removal commitment.(c) Except as specified in subdivision (e), the purchase of carbon dioxide removal credits shall include credits issued by eligible carbon dioxide removal projects operating in at least two of the following categories:(1) Direct air capture.(2) Biomass carbon removal and storage.(3) Enhanced mineralization or enhanced weathering.(4) Marine carbon dioxide removal.(d) (1) Except as specified in subdivision (e), the purchase of carbon dioxide removal credits shall not exceed either of the following: (A) Forty million dollars ($40,000,000) in carbon dioxide removal credits issued by eligible carbon dioxide removal projects operating in any one of the project categories described in subdivision (c). (B) Twenty million dollars ($20,000,000) in carbon dioxide removal credits issued by an individual carbon dioxide removal project sponsor.(2) The purchases described in this section may consist of multiple transactions completed during the period described in subdivision (a).(e) Subdivisions (c) and (d) do not apply to the purchase of carbon dioxide removal credits if the commission finds, following completion of the survey described in paragraph (2) of subdivision (c) of Section 25692, that it would not be feasible to meet those requirements through eligible carbon removal projects operating within the state before the deadline stated in subdivision (a).(f) The commission shall prioritize the following criteria in selecting carbon dioxide removal credits for purchase through the program:(1) The potential of an eligible carbon dioxide removal project to accelerate development of carbon dioxide removal strategies to the scale needed to achieve the state target for total carbon dioxide removal by the year 2045 described in the State Air Resources Boards 2022 Scoping Plan for Achieving Carbon Neutrality.(2) The anticipated impacts of the community benefit mechanisms associated with an eligible carbon dioxide removal project.(3) Compliance with and exceedance of the guidelines adopted pursuant to Section 25694.(4) Distribution of program funds across multiple geographic areas and multiple eligible carbon dioxide removal project categories, as described in subdivision (c).(g) The purchase of carbon dioxide removal credits shall be made on behalf of the commission or on behalf of another board, department, office, or agency of the state. If a purchase of carbon dioxide removal credits is made on behalf of another board, department, office, or agency of the state, the commission and the board, department, office, or agency shall enter into a memorandum of understanding describing the carbon dioxide removal credit purchase transaction and any associated removal or credit purchase commitments of the board, department, office, or agency.25694. (a) On or before June 30, 2026, the commission shall adopt guidelines for the program that include all of the following:(1) Standards for an eligible carbon dioxide removal project.(2) The definition of an eligible carbon dioxide removal project.(3) A requirement that an eligible carbon dioxide removal project be physically located within the state.(4) A requirement that an eligible carbon dioxide removal project incorporate or fund community benefit mechanisms commensurate with the eligible carbon dioxide removal project.(5) A requirement that an eligible carbon dioxide removal project results in carbon dioxide removals that are verified in the claimed quantity.(6) A minimum duration of sequestration, elimination, or other storage of removed gases without leakage to the atmosphere that is sufficiently long enough to ensure that the risk of leakage poses no material threat to public health, safety, the environment, or the achievement of net zero greenhouse gas emissions in California, and shall not be less than 100 years.(7) A prohibition on the use of carbon dioxide removal processes for purposes of enhanced oil recovery.(b) To the extent feasible, the guidelines shall be consistent with paragraph (3) of subdivision (a) of, and subdivision (b) of, Section 39741.1 of the Health and Safety Code.
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 643Introduced by Senator CaballeroFebruary 20, 2025 An act to add Chapter 7.9 (commencing with Section 25690) to Division 15 of the Public Resources Code, relating to climate change. LEGISLATIVE COUNSEL'S DIGESTSB 643, as introduced, Caballero. Carbon Dioxide Removal Purchase Program. Existing law establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. Existing law requires the state board to establish a Carbon Capture, Removal, Utilization, and Storage Program, as provided, to evaluate the efficacy, safety, and viability of carbon capture, utilization, or storage technologies and carbon dioxide removal technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate.Existing law vests the State Energy Resources Conservation and Development Commission with various responsibilities for developing and implementing the states energy policies.This bill would require the commission to establish and administer the Carbon Dioxide Removal Purchase Program to purchase carbon dioxide removal credits generated by eligible carbon dioxide removal projects, as specified. The bill would require the commission, on or before June 30, 2026, and annually thereafter, to conduct and publish on its internet website a survey of carbon dioxide removal projects existing or in development within the state, and, on or before December 31, 2027, and annually thereafter, to publish on its internet website a report describing Carbon Dioxide Removal Purchase Program activities completed and carbon dioxide removal credits purchased to date. The bill would require the commission, on or after July 1, 2026, but on or before December 31, 2030, to purchase and permanently retire from future exchange carbon dioxide removal credits in an amount totaling $80,000,000. The bill would prohibit purchases of carbon dioxide removal credits from exceeding $40,000,000 in credits issued by eligible carbon dioxide removal projects operating in any one of specified project categories or $20,000,000 in credits issued by an individual carbon dioxide removal project sponsor, except as specified. The bill would require the purchase of carbon dioxide removal credits to be made on behalf of the commission or on behalf of another board, department, office, or agency of the state. The bill would require the commission, on or before June 30, 2026, to adopt guidelines, including standards and a definition of eligible carbon dioxide removal projects, for the Carbon Dioxide Removal Purchase Program, which the bill would require to be consistent with, to the extent feasible, certain provisions of the Carbon Capture, Removal, Utilization, and Storage Program, as specified.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 643
Introduced by Senator CaballeroFebruary 20, 2025
Introduced by Senator Caballero
February 20, 2025
An act to add Chapter 7.9 (commencing with Section 25690) to Division 15 of the Public Resources Code, relating to climate change.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 643, as introduced, Caballero. Carbon Dioxide Removal Purchase Program.
Existing law establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. Existing law requires the state board to establish a Carbon Capture, Removal, Utilization, and Storage Program, as provided, to evaluate the efficacy, safety, and viability of carbon capture, utilization, or storage technologies and carbon dioxide removal technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate.Existing law vests the State Energy Resources Conservation and Development Commission with various responsibilities for developing and implementing the states energy policies.This bill would require the commission to establish and administer the Carbon Dioxide Removal Purchase Program to purchase carbon dioxide removal credits generated by eligible carbon dioxide removal projects, as specified. The bill would require the commission, on or before June 30, 2026, and annually thereafter, to conduct and publish on its internet website a survey of carbon dioxide removal projects existing or in development within the state, and, on or before December 31, 2027, and annually thereafter, to publish on its internet website a report describing Carbon Dioxide Removal Purchase Program activities completed and carbon dioxide removal credits purchased to date. The bill would require the commission, on or after July 1, 2026, but on or before December 31, 2030, to purchase and permanently retire from future exchange carbon dioxide removal credits in an amount totaling $80,000,000. The bill would prohibit purchases of carbon dioxide removal credits from exceeding $40,000,000 in credits issued by eligible carbon dioxide removal projects operating in any one of specified project categories or $20,000,000 in credits issued by an individual carbon dioxide removal project sponsor, except as specified. The bill would require the purchase of carbon dioxide removal credits to be made on behalf of the commission or on behalf of another board, department, office, or agency of the state. The bill would require the commission, on or before June 30, 2026, to adopt guidelines, including standards and a definition of eligible carbon dioxide removal projects, for the Carbon Dioxide Removal Purchase Program, which the bill would require to be consistent with, to the extent feasible, certain provisions of the Carbon Capture, Removal, Utilization, and Storage Program, as specified.
Existing law establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. Existing law requires the state board to establish a Carbon Capture, Removal, Utilization, and Storage Program, as provided, to evaluate the efficacy, safety, and viability of carbon capture, utilization, or storage technologies and carbon dioxide removal technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate.
Existing law vests the State Energy Resources Conservation and Development Commission with various responsibilities for developing and implementing the states energy policies.
This bill would require the commission to establish and administer the Carbon Dioxide Removal Purchase Program to purchase carbon dioxide removal credits generated by eligible carbon dioxide removal projects, as specified. The bill would require the commission, on or before June 30, 2026, and annually thereafter, to conduct and publish on its internet website a survey of carbon dioxide removal projects existing or in development within the state, and, on or before December 31, 2027, and annually thereafter, to publish on its internet website a report describing Carbon Dioxide Removal Purchase Program activities completed and carbon dioxide removal credits purchased to date. The bill would require the commission, on or after July 1, 2026, but on or before December 31, 2030, to purchase and permanently retire from future exchange carbon dioxide removal credits in an amount totaling $80,000,000. The bill would prohibit purchases of carbon dioxide removal credits from exceeding $40,000,000 in credits issued by eligible carbon dioxide removal projects operating in any one of specified project categories or $20,000,000 in credits issued by an individual carbon dioxide removal project sponsor, except as specified. The bill would require the purchase of carbon dioxide removal credits to be made on behalf of the commission or on behalf of another board, department, office, or agency of the state. The bill would require the commission, on or before June 30, 2026, to adopt guidelines, including standards and a definition of eligible carbon dioxide removal projects, for the Carbon Dioxide Removal Purchase Program, which the bill would require to be consistent with, to the extent feasible, certain provisions of the Carbon Capture, Removal, Utilization, and Storage Program, as specified.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of wildfires, extreme heat, drought, storm events, sea-level rise, species loss, and other disruptions to the states communities, environment, and economy.(b) Mitigating this threat requires aggressive action to reduce emissions of carbon dioxide and other greenhouse gases and to remove already-emitted greenhouse gases from the atmosphere.(c) In 2022, the state enacted Assembly Bill 1279 of the 20212022 Regular Session (Chapter 337 of the Statutes of 2022), which established a state target of achieving net zero greenhouse gas emissions no later than 2045, and Senate Bill 905 of the 20212022 Regular Session (Chapter 359 of the Statutes of 2022), which directed the State Air Resources Board to establish a carbon capture, removal, utilization, and storage program to evaluate and set standards for carbon dioxide removal and sequestration projects.(d) The State Air Resources Boards 2022 Scoping Plan for Achieving Carbon Neutrality states, there is no path to carbon neutrality without carbon removal and sequestration, and establishes state targets for carbon dioxide removal of 7 million metric tons of carbon dioxide equivalent by 2030 and 75 million metric tons by 2045.(e) While carbon dioxide removal strategies, such as direct air capture and enhanced mineralization are emerging, significant acceleration in technological and market development will be necessary to achieve these targets.(f) It is in the interest of the state to advance carbon dioxide removal technologies by supporting carbon dioxide removal project deployment within California that meets high standards regarding greenhouse gas mitigation, community benefits, safety, air quality, and environmental protection.SEC. 2. Chapter 7.9 (commencing with Section 25690) is added to Division 15 of the Public Resources Code, to read: CHAPTER 7.9. Carbon Dioxide Removal Purchase Program25690. This chapter shall be known, and may be cited, as the Carbon Dioxide Removal Purchase Program.25691. For purposes of this chapter, the following definitions apply:(a) Additional means a carbon dioxide removal exceeds any removal that is required by law or regulation or that would otherwise occur in a conservative business-as-usual scenario.(b) Carbon dioxide removal means a process or approach that results in removal from the atmosphere of carbon dioxide already emitted to the atmosphere, by direct or indirect means, exclusive of processes that prevent, reduce, or avoid carbon dioxide emissions.(c) Carbon dioxide removal credit means a credit associated with a specified quantity of carbon dioxide removal, issued by a carbon dioxide removal project sponsor, and sold or traded for value to achieve a greenhouse gas emissions removal commitment.(d) Carbon dioxide removal project sponsor means a person or entity responsible for the financing, planning, developing, operating, owning, or otherwise managing a carbon dioxide removal project.(e) Community benefits mechanism means an arrangement or agreement between a carbon dioxide removal project sponsor and one or more geographic host communities or organizations to ensure community members accrue benefits through, and have meaningful opportunities to participate in, the projects implementation, including but not limited to, community benefits agreements, project labor agreements, local hiring requirements, project oversight, project ownership, and profit or revenue sharing.(f) Eligible carbon dioxide removal project means a carbon dioxide removal project that meets the guidelines, including the standards, established pursuant to Section 25694.(g) Program means the Carbon Dioxide Removal Purchase Program established pursuant to this chapter.25692. (a) The commission shall establish and administer the Carbon Dioxide Removal Purchase Program to purchase carbon dioxide removal credits generated by eligible carbon dioxide removal projects.(b) The goal of the program shall be to advance the development of carbon dioxide removal technologies in order to achieve the states climate goals, while supporting the development of eligible carbon dioxide removal projects that provide economic, community, and environmental benefits within the state.(c) In implementing the program, the commission shall do all of the following:(1) Complete the carbon dioxide removal credit purchases described in Section 25693.(2) On or before June 30, 2026, and annually thereafter, conduct and publish on its internet website a survey of carbon dioxide removal projects existing or in development within the state. The survey shall include, but not be limited to, information on carbon dioxide removal projects operating in each of the categories described in subdivision (c) of Section 25693 and on carbon dioxide removal projects carbon removal potential, economic opportunities, and environmental impacts. The survey shall also include information on carbon dioxide removal projects existing or in development within the state that are designed to facilitate removal from the atmosphere of greenhouse gases, other than carbon dioxide, or to facilitate removal of carbon dioxide from media other than the atmosphere.(3) On or before June 30, 2026, identify and document for use in the carbon dioxide removal credit purchases described in Section 25693 all of the following:(A) A transactional or bidding process including a means of payment in advance or on delivery of carbon dioxide removal credits.(B) A minimum carbon dioxide removal credit purchase contract term length.(C) A maximum carbon dioxide removal credit price per ton.(4) Before initiating carbon dioxide removal credit purchases described in Section 25693, conduct at least two public workshops to receive comments from the public. The commission shall design the workshops to allow the public to participate from any location via the internet or a call-in telephone number.(5) On or before December 31, 2027, and annually thereafter, publish on its internet website a report describing program activities completed pursuant to this chapter and carbon dioxide removal credits purchased to date.(d) In implementing the program, the commission may do all of the following:(1) Adopt guidelines or other standards at a commission business meeting for the program, including, but not limited to, the guidelines described in Section 25694.(2) Consult with the State Air Resources Board, the State Water Resources Control Board, the Department of Fish and Wildlife, the State Lands Commission, the Geologic Energy Management Division, local air quality management districts, local air pollution control districts, regional water quality control boards, and other relevant local, state, or federal agencies, to ensure program moneys support achieving the states climate and environmental targets.(3) Consult with private entities regarding the entities purchase of carbon dioxide removal credits in compliance with the program guidelines described in Section 25694, provided that a private entity purchase shall not be counted toward the commissions purchase amount described in Section 25693.25693. (a) On or after July 1, 2026, but on or before December 31, 2030, the commission shall purchase and permanently retire from future exchange carbon dioxide removal credits in an amount totaling eighty million dollars ($80,000,000).(b) The commission shall only purchase carbon dioxide removal credits that meet all of the following requirements:(1) The carbon dioxide removal credits are issued by an eligible carbon dioxide removal project.(2) The carbon dioxide removal credits are additional.(3) The carbon dioxide removal credits are unique to the commissions purchase transaction and not claimed by an entity other than the commission or another board, department, office, or agency of the state in connection with a greenhouse gas emissions removal commitment.(c) Except as specified in subdivision (e), the purchase of carbon dioxide removal credits shall include credits issued by eligible carbon dioxide removal projects operating in at least two of the following categories:(1) Direct air capture.(2) Biomass carbon removal and storage.(3) Enhanced mineralization or enhanced weathering.(4) Marine carbon dioxide removal.(d) (1) Except as specified in subdivision (e), the purchase of carbon dioxide removal credits shall not exceed either of the following: (A) Forty million dollars ($40,000,000) in carbon dioxide removal credits issued by eligible carbon dioxide removal projects operating in any one of the project categories described in subdivision (c). (B) Twenty million dollars ($20,000,000) in carbon dioxide removal credits issued by an individual carbon dioxide removal project sponsor.(2) The purchases described in this section may consist of multiple transactions completed during the period described in subdivision (a).(e) Subdivisions (c) and (d) do not apply to the purchase of carbon dioxide removal credits if the commission finds, following completion of the survey described in paragraph (2) of subdivision (c) of Section 25692, that it would not be feasible to meet those requirements through eligible carbon removal projects operating within the state before the deadline stated in subdivision (a).(f) The commission shall prioritize the following criteria in selecting carbon dioxide removal credits for purchase through the program:(1) The potential of an eligible carbon dioxide removal project to accelerate development of carbon dioxide removal strategies to the scale needed to achieve the state target for total carbon dioxide removal by the year 2045 described in the State Air Resources Boards 2022 Scoping Plan for Achieving Carbon Neutrality.(2) The anticipated impacts of the community benefit mechanisms associated with an eligible carbon dioxide removal project.(3) Compliance with and exceedance of the guidelines adopted pursuant to Section 25694.(4) Distribution of program funds across multiple geographic areas and multiple eligible carbon dioxide removal project categories, as described in subdivision (c).(g) The purchase of carbon dioxide removal credits shall be made on behalf of the commission or on behalf of another board, department, office, or agency of the state. If a purchase of carbon dioxide removal credits is made on behalf of another board, department, office, or agency of the state, the commission and the board, department, office, or agency shall enter into a memorandum of understanding describing the carbon dioxide removal credit purchase transaction and any associated removal or credit purchase commitments of the board, department, office, or agency.25694. (a) On or before June 30, 2026, the commission shall adopt guidelines for the program that include all of the following:(1) Standards for an eligible carbon dioxide removal project.(2) The definition of an eligible carbon dioxide removal project.(3) A requirement that an eligible carbon dioxide removal project be physically located within the state.(4) A requirement that an eligible carbon dioxide removal project incorporate or fund community benefit mechanisms commensurate with the eligible carbon dioxide removal project.(5) A requirement that an eligible carbon dioxide removal project results in carbon dioxide removals that are verified in the claimed quantity.(6) A minimum duration of sequestration, elimination, or other storage of removed gases without leakage to the atmosphere that is sufficiently long enough to ensure that the risk of leakage poses no material threat to public health, safety, the environment, or the achievement of net zero greenhouse gas emissions in California, and shall not be less than 100 years.(7) A prohibition on the use of carbon dioxide removal processes for purposes of enhanced oil recovery.(b) To the extent feasible, the guidelines shall be consistent with paragraph (3) of subdivision (a) of, and subdivision (b) of, Section 39741.1 of the Health and Safety Code.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares all of the following:(a) Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of wildfires, extreme heat, drought, storm events, sea-level rise, species loss, and other disruptions to the states communities, environment, and economy.(b) Mitigating this threat requires aggressive action to reduce emissions of carbon dioxide and other greenhouse gases and to remove already-emitted greenhouse gases from the atmosphere.(c) In 2022, the state enacted Assembly Bill 1279 of the 20212022 Regular Session (Chapter 337 of the Statutes of 2022), which established a state target of achieving net zero greenhouse gas emissions no later than 2045, and Senate Bill 905 of the 20212022 Regular Session (Chapter 359 of the Statutes of 2022), which directed the State Air Resources Board to establish a carbon capture, removal, utilization, and storage program to evaluate and set standards for carbon dioxide removal and sequestration projects.(d) The State Air Resources Boards 2022 Scoping Plan for Achieving Carbon Neutrality states, there is no path to carbon neutrality without carbon removal and sequestration, and establishes state targets for carbon dioxide removal of 7 million metric tons of carbon dioxide equivalent by 2030 and 75 million metric tons by 2045.(e) While carbon dioxide removal strategies, such as direct air capture and enhanced mineralization are emerging, significant acceleration in technological and market development will be necessary to achieve these targets.(f) It is in the interest of the state to advance carbon dioxide removal technologies by supporting carbon dioxide removal project deployment within California that meets high standards regarding greenhouse gas mitigation, community benefits, safety, air quality, and environmental protection.
SECTION 1. The Legislature finds and declares all of the following:(a) Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of wildfires, extreme heat, drought, storm events, sea-level rise, species loss, and other disruptions to the states communities, environment, and economy.(b) Mitigating this threat requires aggressive action to reduce emissions of carbon dioxide and other greenhouse gases and to remove already-emitted greenhouse gases from the atmosphere.(c) In 2022, the state enacted Assembly Bill 1279 of the 20212022 Regular Session (Chapter 337 of the Statutes of 2022), which established a state target of achieving net zero greenhouse gas emissions no later than 2045, and Senate Bill 905 of the 20212022 Regular Session (Chapter 359 of the Statutes of 2022), which directed the State Air Resources Board to establish a carbon capture, removal, utilization, and storage program to evaluate and set standards for carbon dioxide removal and sequestration projects.(d) The State Air Resources Boards 2022 Scoping Plan for Achieving Carbon Neutrality states, there is no path to carbon neutrality without carbon removal and sequestration, and establishes state targets for carbon dioxide removal of 7 million metric tons of carbon dioxide equivalent by 2030 and 75 million metric tons by 2045.(e) While carbon dioxide removal strategies, such as direct air capture and enhanced mineralization are emerging, significant acceleration in technological and market development will be necessary to achieve these targets.(f) It is in the interest of the state to advance carbon dioxide removal technologies by supporting carbon dioxide removal project deployment within California that meets high standards regarding greenhouse gas mitigation, community benefits, safety, air quality, and environmental protection.
SECTION 1. The Legislature finds and declares all of the following:
### SECTION 1.
(a) Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of wildfires, extreme heat, drought, storm events, sea-level rise, species loss, and other disruptions to the states communities, environment, and economy.
(b) Mitigating this threat requires aggressive action to reduce emissions of carbon dioxide and other greenhouse gases and to remove already-emitted greenhouse gases from the atmosphere.
(c) In 2022, the state enacted Assembly Bill 1279 of the 20212022 Regular Session (Chapter 337 of the Statutes of 2022), which established a state target of achieving net zero greenhouse gas emissions no later than 2045, and Senate Bill 905 of the 20212022 Regular Session (Chapter 359 of the Statutes of 2022), which directed the State Air Resources Board to establish a carbon capture, removal, utilization, and storage program to evaluate and set standards for carbon dioxide removal and sequestration projects.
(d) The State Air Resources Boards 2022 Scoping Plan for Achieving Carbon Neutrality states, there is no path to carbon neutrality without carbon removal and sequestration, and establishes state targets for carbon dioxide removal of 7 million metric tons of carbon dioxide equivalent by 2030 and 75 million metric tons by 2045.
(e) While carbon dioxide removal strategies, such as direct air capture and enhanced mineralization are emerging, significant acceleration in technological and market development will be necessary to achieve these targets.
(f) It is in the interest of the state to advance carbon dioxide removal technologies by supporting carbon dioxide removal project deployment within California that meets high standards regarding greenhouse gas mitigation, community benefits, safety, air quality, and environmental protection.
SEC. 2. Chapter 7.9 (commencing with Section 25690) is added to Division 15 of the Public Resources Code, to read: CHAPTER 7.9. Carbon Dioxide Removal Purchase Program25690. This chapter shall be known, and may be cited, as the Carbon Dioxide Removal Purchase Program.25691. For purposes of this chapter, the following definitions apply:(a) Additional means a carbon dioxide removal exceeds any removal that is required by law or regulation or that would otherwise occur in a conservative business-as-usual scenario.(b) Carbon dioxide removal means a process or approach that results in removal from the atmosphere of carbon dioxide already emitted to the atmosphere, by direct or indirect means, exclusive of processes that prevent, reduce, or avoid carbon dioxide emissions.(c) Carbon dioxide removal credit means a credit associated with a specified quantity of carbon dioxide removal, issued by a carbon dioxide removal project sponsor, and sold or traded for value to achieve a greenhouse gas emissions removal commitment.(d) Carbon dioxide removal project sponsor means a person or entity responsible for the financing, planning, developing, operating, owning, or otherwise managing a carbon dioxide removal project.(e) Community benefits mechanism means an arrangement or agreement between a carbon dioxide removal project sponsor and one or more geographic host communities or organizations to ensure community members accrue benefits through, and have meaningful opportunities to participate in, the projects implementation, including but not limited to, community benefits agreements, project labor agreements, local hiring requirements, project oversight, project ownership, and profit or revenue sharing.(f) Eligible carbon dioxide removal project means a carbon dioxide removal project that meets the guidelines, including the standards, established pursuant to Section 25694.(g) Program means the Carbon Dioxide Removal Purchase Program established pursuant to this chapter.25692. (a) The commission shall establish and administer the Carbon Dioxide Removal Purchase Program to purchase carbon dioxide removal credits generated by eligible carbon dioxide removal projects.(b) The goal of the program shall be to advance the development of carbon dioxide removal technologies in order to achieve the states climate goals, while supporting the development of eligible carbon dioxide removal projects that provide economic, community, and environmental benefits within the state.(c) In implementing the program, the commission shall do all of the following:(1) Complete the carbon dioxide removal credit purchases described in Section 25693.(2) On or before June 30, 2026, and annually thereafter, conduct and publish on its internet website a survey of carbon dioxide removal projects existing or in development within the state. The survey shall include, but not be limited to, information on carbon dioxide removal projects operating in each of the categories described in subdivision (c) of Section 25693 and on carbon dioxide removal projects carbon removal potential, economic opportunities, and environmental impacts. The survey shall also include information on carbon dioxide removal projects existing or in development within the state that are designed to facilitate removal from the atmosphere of greenhouse gases, other than carbon dioxide, or to facilitate removal of carbon dioxide from media other than the atmosphere.(3) On or before June 30, 2026, identify and document for use in the carbon dioxide removal credit purchases described in Section 25693 all of the following:(A) A transactional or bidding process including a means of payment in advance or on delivery of carbon dioxide removal credits.(B) A minimum carbon dioxide removal credit purchase contract term length.(C) A maximum carbon dioxide removal credit price per ton.(4) Before initiating carbon dioxide removal credit purchases described in Section 25693, conduct at least two public workshops to receive comments from the public. The commission shall design the workshops to allow the public to participate from any location via the internet or a call-in telephone number.(5) On or before December 31, 2027, and annually thereafter, publish on its internet website a report describing program activities completed pursuant to this chapter and carbon dioxide removal credits purchased to date.(d) In implementing the program, the commission may do all of the following:(1) Adopt guidelines or other standards at a commission business meeting for the program, including, but not limited to, the guidelines described in Section 25694.(2) Consult with the State Air Resources Board, the State Water Resources Control Board, the Department of Fish and Wildlife, the State Lands Commission, the Geologic Energy Management Division, local air quality management districts, local air pollution control districts, regional water quality control boards, and other relevant local, state, or federal agencies, to ensure program moneys support achieving the states climate and environmental targets.(3) Consult with private entities regarding the entities purchase of carbon dioxide removal credits in compliance with the program guidelines described in Section 25694, provided that a private entity purchase shall not be counted toward the commissions purchase amount described in Section 25693.25693. (a) On or after July 1, 2026, but on or before December 31, 2030, the commission shall purchase and permanently retire from future exchange carbon dioxide removal credits in an amount totaling eighty million dollars ($80,000,000).(b) The commission shall only purchase carbon dioxide removal credits that meet all of the following requirements:(1) The carbon dioxide removal credits are issued by an eligible carbon dioxide removal project.(2) The carbon dioxide removal credits are additional.(3) The carbon dioxide removal credits are unique to the commissions purchase transaction and not claimed by an entity other than the commission or another board, department, office, or agency of the state in connection with a greenhouse gas emissions removal commitment.(c) Except as specified in subdivision (e), the purchase of carbon dioxide removal credits shall include credits issued by eligible carbon dioxide removal projects operating in at least two of the following categories:(1) Direct air capture.(2) Biomass carbon removal and storage.(3) Enhanced mineralization or enhanced weathering.(4) Marine carbon dioxide removal.(d) (1) Except as specified in subdivision (e), the purchase of carbon dioxide removal credits shall not exceed either of the following: (A) Forty million dollars ($40,000,000) in carbon dioxide removal credits issued by eligible carbon dioxide removal projects operating in any one of the project categories described in subdivision (c). (B) Twenty million dollars ($20,000,000) in carbon dioxide removal credits issued by an individual carbon dioxide removal project sponsor.(2) The purchases described in this section may consist of multiple transactions completed during the period described in subdivision (a).(e) Subdivisions (c) and (d) do not apply to the purchase of carbon dioxide removal credits if the commission finds, following completion of the survey described in paragraph (2) of subdivision (c) of Section 25692, that it would not be feasible to meet those requirements through eligible carbon removal projects operating within the state before the deadline stated in subdivision (a).(f) The commission shall prioritize the following criteria in selecting carbon dioxide removal credits for purchase through the program:(1) The potential of an eligible carbon dioxide removal project to accelerate development of carbon dioxide removal strategies to the scale needed to achieve the state target for total carbon dioxide removal by the year 2045 described in the State Air Resources Boards 2022 Scoping Plan for Achieving Carbon Neutrality.(2) The anticipated impacts of the community benefit mechanisms associated with an eligible carbon dioxide removal project.(3) Compliance with and exceedance of the guidelines adopted pursuant to Section 25694.(4) Distribution of program funds across multiple geographic areas and multiple eligible carbon dioxide removal project categories, as described in subdivision (c).(g) The purchase of carbon dioxide removal credits shall be made on behalf of the commission or on behalf of another board, department, office, or agency of the state. If a purchase of carbon dioxide removal credits is made on behalf of another board, department, office, or agency of the state, the commission and the board, department, office, or agency shall enter into a memorandum of understanding describing the carbon dioxide removal credit purchase transaction and any associated removal or credit purchase commitments of the board, department, office, or agency.25694. (a) On or before June 30, 2026, the commission shall adopt guidelines for the program that include all of the following:(1) Standards for an eligible carbon dioxide removal project.(2) The definition of an eligible carbon dioxide removal project.(3) A requirement that an eligible carbon dioxide removal project be physically located within the state.(4) A requirement that an eligible carbon dioxide removal project incorporate or fund community benefit mechanisms commensurate with the eligible carbon dioxide removal project.(5) A requirement that an eligible carbon dioxide removal project results in carbon dioxide removals that are verified in the claimed quantity.(6) A minimum duration of sequestration, elimination, or other storage of removed gases without leakage to the atmosphere that is sufficiently long enough to ensure that the risk of leakage poses no material threat to public health, safety, the environment, or the achievement of net zero greenhouse gas emissions in California, and shall not be less than 100 years.(7) A prohibition on the use of carbon dioxide removal processes for purposes of enhanced oil recovery.(b) To the extent feasible, the guidelines shall be consistent with paragraph (3) of subdivision (a) of, and subdivision (b) of, Section 39741.1 of the Health and Safety Code.
SEC. 2. Chapter 7.9 (commencing with Section 25690) is added to Division 15 of the Public Resources Code, to read:
### SEC. 2.
CHAPTER 7.9. Carbon Dioxide Removal Purchase Program25690. This chapter shall be known, and may be cited, as the Carbon Dioxide Removal Purchase Program.25691. For purposes of this chapter, the following definitions apply:(a) Additional means a carbon dioxide removal exceeds any removal that is required by law or regulation or that would otherwise occur in a conservative business-as-usual scenario.(b) Carbon dioxide removal means a process or approach that results in removal from the atmosphere of carbon dioxide already emitted to the atmosphere, by direct or indirect means, exclusive of processes that prevent, reduce, or avoid carbon dioxide emissions.(c) Carbon dioxide removal credit means a credit associated with a specified quantity of carbon dioxide removal, issued by a carbon dioxide removal project sponsor, and sold or traded for value to achieve a greenhouse gas emissions removal commitment.(d) Carbon dioxide removal project sponsor means a person or entity responsible for the financing, planning, developing, operating, owning, or otherwise managing a carbon dioxide removal project.(e) Community benefits mechanism means an arrangement or agreement between a carbon dioxide removal project sponsor and one or more geographic host communities or organizations to ensure community members accrue benefits through, and have meaningful opportunities to participate in, the projects implementation, including but not limited to, community benefits agreements, project labor agreements, local hiring requirements, project oversight, project ownership, and profit or revenue sharing.(f) Eligible carbon dioxide removal project means a carbon dioxide removal project that meets the guidelines, including the standards, established pursuant to Section 25694.(g) Program means the Carbon Dioxide Removal Purchase Program established pursuant to this chapter.25692. (a) The commission shall establish and administer the Carbon Dioxide Removal Purchase Program to purchase carbon dioxide removal credits generated by eligible carbon dioxide removal projects.(b) The goal of the program shall be to advance the development of carbon dioxide removal technologies in order to achieve the states climate goals, while supporting the development of eligible carbon dioxide removal projects that provide economic, community, and environmental benefits within the state.(c) In implementing the program, the commission shall do all of the following:(1) Complete the carbon dioxide removal credit purchases described in Section 25693.(2) On or before June 30, 2026, and annually thereafter, conduct and publish on its internet website a survey of carbon dioxide removal projects existing or in development within the state. The survey shall include, but not be limited to, information on carbon dioxide removal projects operating in each of the categories described in subdivision (c) of Section 25693 and on carbon dioxide removal projects carbon removal potential, economic opportunities, and environmental impacts. The survey shall also include information on carbon dioxide removal projects existing or in development within the state that are designed to facilitate removal from the atmosphere of greenhouse gases, other than carbon dioxide, or to facilitate removal of carbon dioxide from media other than the atmosphere.(3) On or before June 30, 2026, identify and document for use in the carbon dioxide removal credit purchases described in Section 25693 all of the following:(A) A transactional or bidding process including a means of payment in advance or on delivery of carbon dioxide removal credits.(B) A minimum carbon dioxide removal credit purchase contract term length.(C) A maximum carbon dioxide removal credit price per ton.(4) Before initiating carbon dioxide removal credit purchases described in Section 25693, conduct at least two public workshops to receive comments from the public. The commission shall design the workshops to allow the public to participate from any location via the internet or a call-in telephone number.(5) On or before December 31, 2027, and annually thereafter, publish on its internet website a report describing program activities completed pursuant to this chapter and carbon dioxide removal credits purchased to date.(d) In implementing the program, the commission may do all of the following:(1) Adopt guidelines or other standards at a commission business meeting for the program, including, but not limited to, the guidelines described in Section 25694.(2) Consult with the State Air Resources Board, the State Water Resources Control Board, the Department of Fish and Wildlife, the State Lands Commission, the Geologic Energy Management Division, local air quality management districts, local air pollution control districts, regional water quality control boards, and other relevant local, state, or federal agencies, to ensure program moneys support achieving the states climate and environmental targets.(3) Consult with private entities regarding the entities purchase of carbon dioxide removal credits in compliance with the program guidelines described in Section 25694, provided that a private entity purchase shall not be counted toward the commissions purchase amount described in Section 25693.25693. (a) On or after July 1, 2026, but on or before December 31, 2030, the commission shall purchase and permanently retire from future exchange carbon dioxide removal credits in an amount totaling eighty million dollars ($80,000,000).(b) The commission shall only purchase carbon dioxide removal credits that meet all of the following requirements:(1) The carbon dioxide removal credits are issued by an eligible carbon dioxide removal project.(2) The carbon dioxide removal credits are additional.(3) The carbon dioxide removal credits are unique to the commissions purchase transaction and not claimed by an entity other than the commission or another board, department, office, or agency of the state in connection with a greenhouse gas emissions removal commitment.(c) Except as specified in subdivision (e), the purchase of carbon dioxide removal credits shall include credits issued by eligible carbon dioxide removal projects operating in at least two of the following categories:(1) Direct air capture.(2) Biomass carbon removal and storage.(3) Enhanced mineralization or enhanced weathering.(4) Marine carbon dioxide removal.(d) (1) Except as specified in subdivision (e), the purchase of carbon dioxide removal credits shall not exceed either of the following: (A) Forty million dollars ($40,000,000) in carbon dioxide removal credits issued by eligible carbon dioxide removal projects operating in any one of the project categories described in subdivision (c). (B) Twenty million dollars ($20,000,000) in carbon dioxide removal credits issued by an individual carbon dioxide removal project sponsor.(2) The purchases described in this section may consist of multiple transactions completed during the period described in subdivision (a).(e) Subdivisions (c) and (d) do not apply to the purchase of carbon dioxide removal credits if the commission finds, following completion of the survey described in paragraph (2) of subdivision (c) of Section 25692, that it would not be feasible to meet those requirements through eligible carbon removal projects operating within the state before the deadline stated in subdivision (a).(f) The commission shall prioritize the following criteria in selecting carbon dioxide removal credits for purchase through the program:(1) The potential of an eligible carbon dioxide removal project to accelerate development of carbon dioxide removal strategies to the scale needed to achieve the state target for total carbon dioxide removal by the year 2045 described in the State Air Resources Boards 2022 Scoping Plan for Achieving Carbon Neutrality.(2) The anticipated impacts of the community benefit mechanisms associated with an eligible carbon dioxide removal project.(3) Compliance with and exceedance of the guidelines adopted pursuant to Section 25694.(4) Distribution of program funds across multiple geographic areas and multiple eligible carbon dioxide removal project categories, as described in subdivision (c).(g) The purchase of carbon dioxide removal credits shall be made on behalf of the commission or on behalf of another board, department, office, or agency of the state. If a purchase of carbon dioxide removal credits is made on behalf of another board, department, office, or agency of the state, the commission and the board, department, office, or agency shall enter into a memorandum of understanding describing the carbon dioxide removal credit purchase transaction and any associated removal or credit purchase commitments of the board, department, office, or agency.25694. (a) On or before June 30, 2026, the commission shall adopt guidelines for the program that include all of the following:(1) Standards for an eligible carbon dioxide removal project.(2) The definition of an eligible carbon dioxide removal project.(3) A requirement that an eligible carbon dioxide removal project be physically located within the state.(4) A requirement that an eligible carbon dioxide removal project incorporate or fund community benefit mechanisms commensurate with the eligible carbon dioxide removal project.(5) A requirement that an eligible carbon dioxide removal project results in carbon dioxide removals that are verified in the claimed quantity.(6) A minimum duration of sequestration, elimination, or other storage of removed gases without leakage to the atmosphere that is sufficiently long enough to ensure that the risk of leakage poses no material threat to public health, safety, the environment, or the achievement of net zero greenhouse gas emissions in California, and shall not be less than 100 years.(7) A prohibition on the use of carbon dioxide removal processes for purposes of enhanced oil recovery.(b) To the extent feasible, the guidelines shall be consistent with paragraph (3) of subdivision (a) of, and subdivision (b) of, Section 39741.1 of the Health and Safety Code.
CHAPTER 7.9. Carbon Dioxide Removal Purchase Program25690. This chapter shall be known, and may be cited, as the Carbon Dioxide Removal Purchase Program.25691. For purposes of this chapter, the following definitions apply:(a) Additional means a carbon dioxide removal exceeds any removal that is required by law or regulation or that would otherwise occur in a conservative business-as-usual scenario.(b) Carbon dioxide removal means a process or approach that results in removal from the atmosphere of carbon dioxide already emitted to the atmosphere, by direct or indirect means, exclusive of processes that prevent, reduce, or avoid carbon dioxide emissions.(c) Carbon dioxide removal credit means a credit associated with a specified quantity of carbon dioxide removal, issued by a carbon dioxide removal project sponsor, and sold or traded for value to achieve a greenhouse gas emissions removal commitment.(d) Carbon dioxide removal project sponsor means a person or entity responsible for the financing, planning, developing, operating, owning, or otherwise managing a carbon dioxide removal project.(e) Community benefits mechanism means an arrangement or agreement between a carbon dioxide removal project sponsor and one or more geographic host communities or organizations to ensure community members accrue benefits through, and have meaningful opportunities to participate in, the projects implementation, including but not limited to, community benefits agreements, project labor agreements, local hiring requirements, project oversight, project ownership, and profit or revenue sharing.(f) Eligible carbon dioxide removal project means a carbon dioxide removal project that meets the guidelines, including the standards, established pursuant to Section 25694.(g) Program means the Carbon Dioxide Removal Purchase Program established pursuant to this chapter.25692. (a) The commission shall establish and administer the Carbon Dioxide Removal Purchase Program to purchase carbon dioxide removal credits generated by eligible carbon dioxide removal projects.(b) The goal of the program shall be to advance the development of carbon dioxide removal technologies in order to achieve the states climate goals, while supporting the development of eligible carbon dioxide removal projects that provide economic, community, and environmental benefits within the state.(c) In implementing the program, the commission shall do all of the following:(1) Complete the carbon dioxide removal credit purchases described in Section 25693.(2) On or before June 30, 2026, and annually thereafter, conduct and publish on its internet website a survey of carbon dioxide removal projects existing or in development within the state. The survey shall include, but not be limited to, information on carbon dioxide removal projects operating in each of the categories described in subdivision (c) of Section 25693 and on carbon dioxide removal projects carbon removal potential, economic opportunities, and environmental impacts. The survey shall also include information on carbon dioxide removal projects existing or in development within the state that are designed to facilitate removal from the atmosphere of greenhouse gases, other than carbon dioxide, or to facilitate removal of carbon dioxide from media other than the atmosphere.(3) On or before June 30, 2026, identify and document for use in the carbon dioxide removal credit purchases described in Section 25693 all of the following:(A) A transactional or bidding process including a means of payment in advance or on delivery of carbon dioxide removal credits.(B) A minimum carbon dioxide removal credit purchase contract term length.(C) A maximum carbon dioxide removal credit price per ton.(4) Before initiating carbon dioxide removal credit purchases described in Section 25693, conduct at least two public workshops to receive comments from the public. The commission shall design the workshops to allow the public to participate from any location via the internet or a call-in telephone number.(5) On or before December 31, 2027, and annually thereafter, publish on its internet website a report describing program activities completed pursuant to this chapter and carbon dioxide removal credits purchased to date.(d) In implementing the program, the commission may do all of the following:(1) Adopt guidelines or other standards at a commission business meeting for the program, including, but not limited to, the guidelines described in Section 25694.(2) Consult with the State Air Resources Board, the State Water Resources Control Board, the Department of Fish and Wildlife, the State Lands Commission, the Geologic Energy Management Division, local air quality management districts, local air pollution control districts, regional water quality control boards, and other relevant local, state, or federal agencies, to ensure program moneys support achieving the states climate and environmental targets.(3) Consult with private entities regarding the entities purchase of carbon dioxide removal credits in compliance with the program guidelines described in Section 25694, provided that a private entity purchase shall not be counted toward the commissions purchase amount described in Section 25693.25693. (a) On or after July 1, 2026, but on or before December 31, 2030, the commission shall purchase and permanently retire from future exchange carbon dioxide removal credits in an amount totaling eighty million dollars ($80,000,000).(b) The commission shall only purchase carbon dioxide removal credits that meet all of the following requirements:(1) The carbon dioxide removal credits are issued by an eligible carbon dioxide removal project.(2) The carbon dioxide removal credits are additional.(3) The carbon dioxide removal credits are unique to the commissions purchase transaction and not claimed by an entity other than the commission or another board, department, office, or agency of the state in connection with a greenhouse gas emissions removal commitment.(c) Except as specified in subdivision (e), the purchase of carbon dioxide removal credits shall include credits issued by eligible carbon dioxide removal projects operating in at least two of the following categories:(1) Direct air capture.(2) Biomass carbon removal and storage.(3) Enhanced mineralization or enhanced weathering.(4) Marine carbon dioxide removal.(d) (1) Except as specified in subdivision (e), the purchase of carbon dioxide removal credits shall not exceed either of the following: (A) Forty million dollars ($40,000,000) in carbon dioxide removal credits issued by eligible carbon dioxide removal projects operating in any one of the project categories described in subdivision (c). (B) Twenty million dollars ($20,000,000) in carbon dioxide removal credits issued by an individual carbon dioxide removal project sponsor.(2) The purchases described in this section may consist of multiple transactions completed during the period described in subdivision (a).(e) Subdivisions (c) and (d) do not apply to the purchase of carbon dioxide removal credits if the commission finds, following completion of the survey described in paragraph (2) of subdivision (c) of Section 25692, that it would not be feasible to meet those requirements through eligible carbon removal projects operating within the state before the deadline stated in subdivision (a).(f) The commission shall prioritize the following criteria in selecting carbon dioxide removal credits for purchase through the program:(1) The potential of an eligible carbon dioxide removal project to accelerate development of carbon dioxide removal strategies to the scale needed to achieve the state target for total carbon dioxide removal by the year 2045 described in the State Air Resources Boards 2022 Scoping Plan for Achieving Carbon Neutrality.(2) The anticipated impacts of the community benefit mechanisms associated with an eligible carbon dioxide removal project.(3) Compliance with and exceedance of the guidelines adopted pursuant to Section 25694.(4) Distribution of program funds across multiple geographic areas and multiple eligible carbon dioxide removal project categories, as described in subdivision (c).(g) The purchase of carbon dioxide removal credits shall be made on behalf of the commission or on behalf of another board, department, office, or agency of the state. If a purchase of carbon dioxide removal credits is made on behalf of another board, department, office, or agency of the state, the commission and the board, department, office, or agency shall enter into a memorandum of understanding describing the carbon dioxide removal credit purchase transaction and any associated removal or credit purchase commitments of the board, department, office, or agency.25694. (a) On or before June 30, 2026, the commission shall adopt guidelines for the program that include all of the following:(1) Standards for an eligible carbon dioxide removal project.(2) The definition of an eligible carbon dioxide removal project.(3) A requirement that an eligible carbon dioxide removal project be physically located within the state.(4) A requirement that an eligible carbon dioxide removal project incorporate or fund community benefit mechanisms commensurate with the eligible carbon dioxide removal project.(5) A requirement that an eligible carbon dioxide removal project results in carbon dioxide removals that are verified in the claimed quantity.(6) A minimum duration of sequestration, elimination, or other storage of removed gases without leakage to the atmosphere that is sufficiently long enough to ensure that the risk of leakage poses no material threat to public health, safety, the environment, or the achievement of net zero greenhouse gas emissions in California, and shall not be less than 100 years.(7) A prohibition on the use of carbon dioxide removal processes for purposes of enhanced oil recovery.(b) To the extent feasible, the guidelines shall be consistent with paragraph (3) of subdivision (a) of, and subdivision (b) of, Section 39741.1 of the Health and Safety Code.
CHAPTER 7.9. Carbon Dioxide Removal Purchase Program
CHAPTER 7.9. Carbon Dioxide Removal Purchase Program
25690. This chapter shall be known, and may be cited, as the Carbon Dioxide Removal Purchase Program.
25690. This chapter shall be known, and may be cited, as the Carbon Dioxide Removal Purchase Program.
25691. For purposes of this chapter, the following definitions apply:(a) Additional means a carbon dioxide removal exceeds any removal that is required by law or regulation or that would otherwise occur in a conservative business-as-usual scenario.(b) Carbon dioxide removal means a process or approach that results in removal from the atmosphere of carbon dioxide already emitted to the atmosphere, by direct or indirect means, exclusive of processes that prevent, reduce, or avoid carbon dioxide emissions.(c) Carbon dioxide removal credit means a credit associated with a specified quantity of carbon dioxide removal, issued by a carbon dioxide removal project sponsor, and sold or traded for value to achieve a greenhouse gas emissions removal commitment.(d) Carbon dioxide removal project sponsor means a person or entity responsible for the financing, planning, developing, operating, owning, or otherwise managing a carbon dioxide removal project.(e) Community benefits mechanism means an arrangement or agreement between a carbon dioxide removal project sponsor and one or more geographic host communities or organizations to ensure community members accrue benefits through, and have meaningful opportunities to participate in, the projects implementation, including but not limited to, community benefits agreements, project labor agreements, local hiring requirements, project oversight, project ownership, and profit or revenue sharing.(f) Eligible carbon dioxide removal project means a carbon dioxide removal project that meets the guidelines, including the standards, established pursuant to Section 25694.(g) Program means the Carbon Dioxide Removal Purchase Program established pursuant to this chapter.
25691. For purposes of this chapter, the following definitions apply:
(a) Additional means a carbon dioxide removal exceeds any removal that is required by law or regulation or that would otherwise occur in a conservative business-as-usual scenario.
(b) Carbon dioxide removal means a process or approach that results in removal from the atmosphere of carbon dioxide already emitted to the atmosphere, by direct or indirect means, exclusive of processes that prevent, reduce, or avoid carbon dioxide emissions.
(c) Carbon dioxide removal credit means a credit associated with a specified quantity of carbon dioxide removal, issued by a carbon dioxide removal project sponsor, and sold or traded for value to achieve a greenhouse gas emissions removal commitment.
(d) Carbon dioxide removal project sponsor means a person or entity responsible for the financing, planning, developing, operating, owning, or otherwise managing a carbon dioxide removal project.
(e) Community benefits mechanism means an arrangement or agreement between a carbon dioxide removal project sponsor and one or more geographic host communities or organizations to ensure community members accrue benefits through, and have meaningful opportunities to participate in, the projects implementation, including but not limited to, community benefits agreements, project labor agreements, local hiring requirements, project oversight, project ownership, and profit or revenue sharing.
(f) Eligible carbon dioxide removal project means a carbon dioxide removal project that meets the guidelines, including the standards, established pursuant to Section 25694.
(g) Program means the Carbon Dioxide Removal Purchase Program established pursuant to this chapter.
25692. (a) The commission shall establish and administer the Carbon Dioxide Removal Purchase Program to purchase carbon dioxide removal credits generated by eligible carbon dioxide removal projects.(b) The goal of the program shall be to advance the development of carbon dioxide removal technologies in order to achieve the states climate goals, while supporting the development of eligible carbon dioxide removal projects that provide economic, community, and environmental benefits within the state.(c) In implementing the program, the commission shall do all of the following:(1) Complete the carbon dioxide removal credit purchases described in Section 25693.(2) On or before June 30, 2026, and annually thereafter, conduct and publish on its internet website a survey of carbon dioxide removal projects existing or in development within the state. The survey shall include, but not be limited to, information on carbon dioxide removal projects operating in each of the categories described in subdivision (c) of Section 25693 and on carbon dioxide removal projects carbon removal potential, economic opportunities, and environmental impacts. The survey shall also include information on carbon dioxide removal projects existing or in development within the state that are designed to facilitate removal from the atmosphere of greenhouse gases, other than carbon dioxide, or to facilitate removal of carbon dioxide from media other than the atmosphere.(3) On or before June 30, 2026, identify and document for use in the carbon dioxide removal credit purchases described in Section 25693 all of the following:(A) A transactional or bidding process including a means of payment in advance or on delivery of carbon dioxide removal credits.(B) A minimum carbon dioxide removal credit purchase contract term length.(C) A maximum carbon dioxide removal credit price per ton.(4) Before initiating carbon dioxide removal credit purchases described in Section 25693, conduct at least two public workshops to receive comments from the public. The commission shall design the workshops to allow the public to participate from any location via the internet or a call-in telephone number.(5) On or before December 31, 2027, and annually thereafter, publish on its internet website a report describing program activities completed pursuant to this chapter and carbon dioxide removal credits purchased to date.(d) In implementing the program, the commission may do all of the following:(1) Adopt guidelines or other standards at a commission business meeting for the program, including, but not limited to, the guidelines described in Section 25694.(2) Consult with the State Air Resources Board, the State Water Resources Control Board, the Department of Fish and Wildlife, the State Lands Commission, the Geologic Energy Management Division, local air quality management districts, local air pollution control districts, regional water quality control boards, and other relevant local, state, or federal agencies, to ensure program moneys support achieving the states climate and environmental targets.(3) Consult with private entities regarding the entities purchase of carbon dioxide removal credits in compliance with the program guidelines described in Section 25694, provided that a private entity purchase shall not be counted toward the commissions purchase amount described in Section 25693.
25692. (a) The commission shall establish and administer the Carbon Dioxide Removal Purchase Program to purchase carbon dioxide removal credits generated by eligible carbon dioxide removal projects.
(b) The goal of the program shall be to advance the development of carbon dioxide removal technologies in order to achieve the states climate goals, while supporting the development of eligible carbon dioxide removal projects that provide economic, community, and environmental benefits within the state.
(c) In implementing the program, the commission shall do all of the following:
(1) Complete the carbon dioxide removal credit purchases described in Section 25693.
(2) On or before June 30, 2026, and annually thereafter, conduct and publish on its internet website a survey of carbon dioxide removal projects existing or in development within the state. The survey shall include, but not be limited to, information on carbon dioxide removal projects operating in each of the categories described in subdivision (c) of Section 25693 and on carbon dioxide removal projects carbon removal potential, economic opportunities, and environmental impacts. The survey shall also include information on carbon dioxide removal projects existing or in development within the state that are designed to facilitate removal from the atmosphere of greenhouse gases, other than carbon dioxide, or to facilitate removal of carbon dioxide from media other than the atmosphere.
(3) On or before June 30, 2026, identify and document for use in the carbon dioxide removal credit purchases described in Section 25693 all of the following:
(A) A transactional or bidding process including a means of payment in advance or on delivery of carbon dioxide removal credits.
(B) A minimum carbon dioxide removal credit purchase contract term length.
(C) A maximum carbon dioxide removal credit price per ton.
(4) Before initiating carbon dioxide removal credit purchases described in Section 25693, conduct at least two public workshops to receive comments from the public. The commission shall design the workshops to allow the public to participate from any location via the internet or a call-in telephone number.
(5) On or before December 31, 2027, and annually thereafter, publish on its internet website a report describing program activities completed pursuant to this chapter and carbon dioxide removal credits purchased to date.
(d) In implementing the program, the commission may do all of the following:
(1) Adopt guidelines or other standards at a commission business meeting for the program, including, but not limited to, the guidelines described in Section 25694.
(2) Consult with the State Air Resources Board, the State Water Resources Control Board, the Department of Fish and Wildlife, the State Lands Commission, the Geologic Energy Management Division, local air quality management districts, local air pollution control districts, regional water quality control boards, and other relevant local, state, or federal agencies, to ensure program moneys support achieving the states climate and environmental targets.
(3) Consult with private entities regarding the entities purchase of carbon dioxide removal credits in compliance with the program guidelines described in Section 25694, provided that a private entity purchase shall not be counted toward the commissions purchase amount described in Section 25693.
25693. (a) On or after July 1, 2026, but on or before December 31, 2030, the commission shall purchase and permanently retire from future exchange carbon dioxide removal credits in an amount totaling eighty million dollars ($80,000,000).(b) The commission shall only purchase carbon dioxide removal credits that meet all of the following requirements:(1) The carbon dioxide removal credits are issued by an eligible carbon dioxide removal project.(2) The carbon dioxide removal credits are additional.(3) The carbon dioxide removal credits are unique to the commissions purchase transaction and not claimed by an entity other than the commission or another board, department, office, or agency of the state in connection with a greenhouse gas emissions removal commitment.(c) Except as specified in subdivision (e), the purchase of carbon dioxide removal credits shall include credits issued by eligible carbon dioxide removal projects operating in at least two of the following categories:(1) Direct air capture.(2) Biomass carbon removal and storage.(3) Enhanced mineralization or enhanced weathering.(4) Marine carbon dioxide removal.(d) (1) Except as specified in subdivision (e), the purchase of carbon dioxide removal credits shall not exceed either of the following: (A) Forty million dollars ($40,000,000) in carbon dioxide removal credits issued by eligible carbon dioxide removal projects operating in any one of the project categories described in subdivision (c). (B) Twenty million dollars ($20,000,000) in carbon dioxide removal credits issued by an individual carbon dioxide removal project sponsor.(2) The purchases described in this section may consist of multiple transactions completed during the period described in subdivision (a).(e) Subdivisions (c) and (d) do not apply to the purchase of carbon dioxide removal credits if the commission finds, following completion of the survey described in paragraph (2) of subdivision (c) of Section 25692, that it would not be feasible to meet those requirements through eligible carbon removal projects operating within the state before the deadline stated in subdivision (a).(f) The commission shall prioritize the following criteria in selecting carbon dioxide removal credits for purchase through the program:(1) The potential of an eligible carbon dioxide removal project to accelerate development of carbon dioxide removal strategies to the scale needed to achieve the state target for total carbon dioxide removal by the year 2045 described in the State Air Resources Boards 2022 Scoping Plan for Achieving Carbon Neutrality.(2) The anticipated impacts of the community benefit mechanisms associated with an eligible carbon dioxide removal project.(3) Compliance with and exceedance of the guidelines adopted pursuant to Section 25694.(4) Distribution of program funds across multiple geographic areas and multiple eligible carbon dioxide removal project categories, as described in subdivision (c).(g) The purchase of carbon dioxide removal credits shall be made on behalf of the commission or on behalf of another board, department, office, or agency of the state. If a purchase of carbon dioxide removal credits is made on behalf of another board, department, office, or agency of the state, the commission and the board, department, office, or agency shall enter into a memorandum of understanding describing the carbon dioxide removal credit purchase transaction and any associated removal or credit purchase commitments of the board, department, office, or agency.
25693. (a) On or after July 1, 2026, but on or before December 31, 2030, the commission shall purchase and permanently retire from future exchange carbon dioxide removal credits in an amount totaling eighty million dollars ($80,000,000).
(b) The commission shall only purchase carbon dioxide removal credits that meet all of the following requirements:
(1) The carbon dioxide removal credits are issued by an eligible carbon dioxide removal project.
(2) The carbon dioxide removal credits are additional.
(3) The carbon dioxide removal credits are unique to the commissions purchase transaction and not claimed by an entity other than the commission or another board, department, office, or agency of the state in connection with a greenhouse gas emissions removal commitment.
(c) Except as specified in subdivision (e), the purchase of carbon dioxide removal credits shall include credits issued by eligible carbon dioxide removal projects operating in at least two of the following categories:
(1) Direct air capture.
(2) Biomass carbon removal and storage.
(3) Enhanced mineralization or enhanced weathering.
(4) Marine carbon dioxide removal.
(d) (1) Except as specified in subdivision (e), the purchase of carbon dioxide removal credits shall not exceed either of the following:
(A) Forty million dollars ($40,000,000) in carbon dioxide removal credits issued by eligible carbon dioxide removal projects operating in any one of the project categories described in subdivision (c).
(B) Twenty million dollars ($20,000,000) in carbon dioxide removal credits issued by an individual carbon dioxide removal project sponsor.
(2) The purchases described in this section may consist of multiple transactions completed during the period described in subdivision (a).
(e) Subdivisions (c) and (d) do not apply to the purchase of carbon dioxide removal credits if the commission finds, following completion of the survey described in paragraph (2) of subdivision (c) of Section 25692, that it would not be feasible to meet those requirements through eligible carbon removal projects operating within the state before the deadline stated in subdivision (a).
(f) The commission shall prioritize the following criteria in selecting carbon dioxide removal credits for purchase through the program:
(1) The potential of an eligible carbon dioxide removal project to accelerate development of carbon dioxide removal strategies to the scale needed to achieve the state target for total carbon dioxide removal by the year 2045 described in the State Air Resources Boards 2022 Scoping Plan for Achieving Carbon Neutrality.
(2) The anticipated impacts of the community benefit mechanisms associated with an eligible carbon dioxide removal project.
(3) Compliance with and exceedance of the guidelines adopted pursuant to Section 25694.
(4) Distribution of program funds across multiple geographic areas and multiple eligible carbon dioxide removal project categories, as described in subdivision (c).
(g) The purchase of carbon dioxide removal credits shall be made on behalf of the commission or on behalf of another board, department, office, or agency of the state. If a purchase of carbon dioxide removal credits is made on behalf of another board, department, office, or agency of the state, the commission and the board, department, office, or agency shall enter into a memorandum of understanding describing the carbon dioxide removal credit purchase transaction and any associated removal or credit purchase commitments of the board, department, office, or agency.
25694. (a) On or before June 30, 2026, the commission shall adopt guidelines for the program that include all of the following:(1) Standards for an eligible carbon dioxide removal project.(2) The definition of an eligible carbon dioxide removal project.(3) A requirement that an eligible carbon dioxide removal project be physically located within the state.(4) A requirement that an eligible carbon dioxide removal project incorporate or fund community benefit mechanisms commensurate with the eligible carbon dioxide removal project.(5) A requirement that an eligible carbon dioxide removal project results in carbon dioxide removals that are verified in the claimed quantity.(6) A minimum duration of sequestration, elimination, or other storage of removed gases without leakage to the atmosphere that is sufficiently long enough to ensure that the risk of leakage poses no material threat to public health, safety, the environment, or the achievement of net zero greenhouse gas emissions in California, and shall not be less than 100 years.(7) A prohibition on the use of carbon dioxide removal processes for purposes of enhanced oil recovery.(b) To the extent feasible, the guidelines shall be consistent with paragraph (3) of subdivision (a) of, and subdivision (b) of, Section 39741.1 of the Health and Safety Code.
25694. (a) On or before June 30, 2026, the commission shall adopt guidelines for the program that include all of the following:
(1) Standards for an eligible carbon dioxide removal project.
(2) The definition of an eligible carbon dioxide removal project.
(3) A requirement that an eligible carbon dioxide removal project be physically located within the state.
(4) A requirement that an eligible carbon dioxide removal project incorporate or fund community benefit mechanisms commensurate with the eligible carbon dioxide removal project.
(5) A requirement that an eligible carbon dioxide removal project results in carbon dioxide removals that are verified in the claimed quantity.
(6) A minimum duration of sequestration, elimination, or other storage of removed gases without leakage to the atmosphere that is sufficiently long enough to ensure that the risk of leakage poses no material threat to public health, safety, the environment, or the achievement of net zero greenhouse gas emissions in California, and shall not be less than 100 years.
(7) A prohibition on the use of carbon dioxide removal processes for purposes of enhanced oil recovery.
(b) To the extent feasible, the guidelines shall be consistent with paragraph (3) of subdivision (a) of, and subdivision (b) of, Section 39741.1 of the Health and Safety Code.