SB 905: Carbon sequestration: Carbon Capture, Removal, Utilization, and Storage Program.
- Session Year: 2021-2022
- House: Senate
- Latest Version Date: 2022-09-16
Existing law establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. Existing law, the California Global Warming Solutions Act of 2006, requires the state board to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. Existing law requires, no later than July 1, 2023, the Natural Resources Agency, in coordination with the state board, the California Environmental Protection Agency, the Department of Food and Agriculture, and other relevant state agencies, to establish the Natural and Working Lands Climate Smart Strategy and, in developing the strategy, to create a framework to advance the states climate goals. Existing law requires the state board, as part of its scoping plan, to establish specified carbon dioxide removal targets for 2030 and beyond.
This bill would require 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 (CCUS) technologies and carbon dioxide removal (CDR) technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate. The bill would require the program to ensure that carbon dioxide capture, removal, and sequestration projects include specified components including, among others, certain monitoring activities. In carrying out the programs objectives, the bill would require the state board to prioritize, among other priorities, reducing the emissions of greenhouses gases and reducing fossil fuel production in the state. The bill would require the state board to adopt regulations to implement the program and, in developing the program, to consult with the Geologic Carbon Sequestration Group described below.
This bill would require the state board, in consultation with relevant state and local agencies, by January 1, 2025, to adopt regulations for a unified permit application for the construction and operation of carbon dioxide capture, removal, or sequestration projects to expedite the issuance of permits or other authorizations for the construction and operation of those projects. The bill would require relevant state agencies to use the unified permit application when issuing permits or other authorizations for a carbon dioxide capture, removal, or sequestration project.
This bill would require the state board, by January 1, 2025, to develop a centralized public database to track the deployment of CCUS and CDR technologies and the development of carbon dioxide capture, removal, and sequestration projects throughout the state. The bill would authorize the state board, by January 1, 2024, to adopt protocols to support additional methods of utilization or storage of captured carbon dioxide. The bill would require the state board, no later than January 1, 2025, to adopt regulations for financial responsibility for carbon dioxide capture, removal, or sequestration projects, as specified.
This bill would require the Secretary of the Natural Resources Agency, in consultation with the state board, to publish a framework by July 1, 2025, for governing agreements regarding 2 or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a carbon dioxide capture, removal, or sequestration project, as provided.
This bill would provide that title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed and would establish certain requirements with regard to the conveyance of the ownership interest of a geologic storage reservoir. No less than 60 days before commencing development of a carbon dioxide capture, removal, and sequestration project, the bill would require the carbon dioxide capture, removal, or sequestration project operator to provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project. The bill would repeal the provisions described in this paragraph on a specified date.
This bill would require a carbon dioxide capture, removal, or sequestration project operator, among other things, (1) to maintain financial responsibility for a specified period of time, (2) to show proof to the state board that there is binding agreement among relevant parties that drilling or extraction that may penetrate the geologic storage reservoir are prohibited for at least 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir, and (3) to create an air monitoring and mitigation plan and to submit the plan to the state board.
This bill would authorize the state board to require changes in operations of a carbon dioxide capture, removal, or sequestration project to ensure public and environmental health and safety if the monitoring and reporting detects increased seismicity or carbon dioxide leakage outside the geologic storage reservoir.
This bill would require the California Geological Survey to establish the Geologic Carbon Sequestration Group to provide independent expertise and regulatory guidance to the state board. The bill would establish certain of the groups duties, including identifying high-quality, suitable locations of a class of carbon dioxide injection wells.
Existing law requires the State Oil and Gas Supervisor to supervise the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities attendant to oil and gas production.
The federal Safe Drinking Water Act regulates certain wells as Class II injection wells. Under existing federal law, the authority to regulate Class II injection wells is delegated to the Geologic Energy Management Division. Under existing regulations, a well operator is required to obtain approval from the supervisor or a district deputy for a subsurface injection or disposal project, including Class II injection wells, and is required to file a notice of intention whenever a new well is to be drilled for use as an injection well or whenever an existing well is converted to an injection well.
This bill would prohibit an operator from injecting a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II injection well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.
Under existing law, a person who fails to comply with specified requirements relating to the regulation of oil or gas operations is guilty of a misdemeanor.
Because a violation of the prohibition specified in this bill would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This bill would make its operation contingent on the enactment of AB 1279 of the 202122 Regular Session, as provided.
Existing law establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. Existing law, the California Global Warming Solutions Act of 2006, requires the state board to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. Existing law requires, no later than July 1, 2023, the Natural Resources Agency, in coordination with the state board, the California Environmental Protection Agency, the Department of Food and Agriculture, and other relevant state agencies, to establish the Natural and Working Lands Climate Smart Strategy and, in developing the strategy, to create a framework to advance the states climate goals. Existing law requires the state board, as part of its scoping plan, to establish specified carbon dioxide removal targets for 2030 and beyond.
This bill would require 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 (CCUS) technologies and carbon dioxide removal (CDR) technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate. The bill would require the program to ensure that carbon dioxide capture, removal, and sequestration projects include specified components including, among others, certain monitoring activities. In carrying out the programs objectives, the bill would require the state board to prioritize, among other priorities, reducing the emissions of greenhouses gases and reducing fossil fuel production in the state. The bill would require the state board to adopt regulations to implement the program and, in developing the program, to consult with the Geologic Carbon Sequestration Group described below.
This bill would require the state board, in consultation with relevant state and local agencies, by January 1, 2025, to adopt regulations for a unified permit application for the construction and operation of carbon dioxide capture, removal, or sequestration projects to expedite the issuance of permits or other authorizations for the construction and operation of those projects. The bill would require relevant state agencies to use the unified permit application when issuing permits or other authorizations for a carbon dioxide capture, removal, or sequestration project.
This bill would require the state board, by January 1, 2025, to develop a centralized public database to track the deployment of CCUS and CDR technologies and the development of carbon dioxide capture, removal, and sequestration projects throughout the state. The bill would authorize the state board, by January 1, 2024, to adopt protocols to support additional methods of utilization or storage of captured carbon dioxide. The bill would require the state board, no later than January 1, 2025, to adopt regulations for financial responsibility for carbon dioxide capture, removal, or sequestration projects, as specified.
This bill would require the Secretary of the Natural Resources Agency, in consultation with the state board, to publish a framework by July 1, 2025, for governing agreements regarding 2 or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a carbon dioxide capture, removal, or sequestration project, as provided.
This bill would provide that title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed and would establish certain requirements with regard to the conveyance of the ownership interest of a geologic storage reservoir. No less than 60 days before commencing development of a carbon dioxide capture, removal, and sequestration project, the bill would require the carbon dioxide capture, removal, or sequestration project operator to provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project. The bill would repeal the provisions described in this paragraph on a specified date.
This bill would require a carbon dioxide capture, removal, or sequestration project operator, among other things, (1) to maintain financial responsibility for a specified period of time, (2) to show proof to the state board that there is binding agreement among relevant parties that drilling or extraction that may penetrate the geologic storage reservoir are prohibited for at least 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir, and (3) to create an air monitoring and mitigation plan and to submit the plan to the state board.
This bill would authorize the state board to require changes in operations of a carbon dioxide capture, removal, or sequestration project to ensure public and environmental health and safety if the monitoring and reporting detects increased seismicity or carbon dioxide leakage outside the geologic storage reservoir.
This bill would require the California Geological Survey to establish the Geologic Carbon Sequestration Group to provide independent expertise and regulatory guidance to the state board. The bill would establish certain of the groups duties, including identifying high-quality, suitable locations of a class of carbon dioxide injection wells.
Existing law requires the State Oil and Gas Supervisor to supervise the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities attendant to oil and gas production.
The federal Safe Drinking Water Act regulates certain wells as Class II injection wells. Under existing federal law, the authority to regulate Class II injection wells is delegated to the Geologic Energy Management Division. Under existing regulations, a well operator is required to obtain approval from the supervisor or a district deputy for a subsurface injection or disposal project, including Class II injection wells, and is required to file a notice of intention whenever a new well is to be drilled for use as an injection well or whenever an existing well is converted to an injection well.
This bill would prohibit an operator from injecting a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II injection well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.
Under existing law, a person who fails to comply with specified requirements relating to the regulation of oil or gas operations is guilty of a misdemeanor.
Because a violation of the prohibition specified in this bill would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This bill would make its operation contingent on the enactment of AB 1279 of the 202122 Regular Session, as provided.
Existing law establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. Existing law, the California Global Warming Solutions Act of 2006, requires the state board to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. Existing law requires, no later than July 1, 2023, the Natural Resources Agency, in coordination with the state board, the California Environmental Protection Agency, the Department of Food and Agriculture, and other relevant state agencies, to establish the Natural and Working Lands Climate Smart Strategy and, in developing the strategy, to create a framework to advance the states climate goals. Existing law requires the state board, as part of its scoping plan, to establish specified carbon dioxide removal targets for 2030 and beyond.
This bill would require 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 (CCUS) technologies and carbon dioxide removal (CDR) technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate. The bill would require the program to ensure that carbon dioxide capture, removal, and sequestration projects include specified components including, among others, certain monitoring activities. In carrying out the programs objectives, the bill would require the state board to prioritize, among other priorities, reducing the emissions of greenhouses gases and reducing fossil fuel production in the state. The bill would require the state board to adopt regulations to implement the program and, in developing the program, to consult with the Geologic Carbon Sequestration Group described below.
This bill would require the state board, in consultation with relevant state and local agencies, by January 1, 2025, to adopt regulations for a unified permit application for the construction and operation of carbon dioxide capture, removal, or sequestration projects to expedite the issuance of permits or other authorizations for the construction and operation of those projects. The bill would require relevant state agencies to use the unified permit application when issuing permits or other authorizations for a carbon dioxide capture, removal, or sequestration project.
This bill would require the state board, by January 1, 2025, to develop a centralized public database to track the deployment of CCUS and CDR technologies and the development of carbon dioxide capture, removal, and sequestration projects throughout the state. The bill would authorize the state board, by January 1, 2024, to adopt protocols to support additional methods of utilization or storage of captured carbon dioxide. The bill would require the state board, no later than January 1, 2025, to adopt regulations for financial responsibility for carbon dioxide capture, removal, or sequestration projects, as specified.
This bill would require the Secretary of the Natural Resources Agency, in consultation with the state board, to publish a framework by July 1, 2025, for governing agreements regarding 2 or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a carbon dioxide capture, removal, or sequestration project, as provided.
This bill would provide that title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed and would establish certain requirements with regard to the conveyance of the ownership interest of a geologic storage reservoir. No less than 60 days before commencing development of a carbon dioxide capture, removal, and sequestration project, the bill would require the carbon dioxide capture, removal, or sequestration project operator to provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project. The bill would repeal the provisions described in this paragraph on a specified date.
This bill would require a carbon dioxide capture, removal, or sequestration project operator, among other things, (1) to maintain financial responsibility for a specified period of time, (2) to show proof to the state board that there is binding agreement among relevant parties that drilling or extraction that may penetrate the geologic storage reservoir are prohibited for at least 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir, and (3) to create an air monitoring and mitigation plan and to submit the plan to the state board.
This bill would authorize the state board to require changes in operations of a carbon dioxide capture, removal, or sequestration project to ensure public and environmental health and safety if the monitoring and reporting detects increased seismicity or carbon dioxide leakage outside the geologic storage reservoir.
This bill would require the California Geological Survey to establish the Geologic Carbon Sequestration Group to provide independent expertise and regulatory guidance to the state board. The bill would establish certain of the groups duties, including identifying high-quality, suitable locations of a class of carbon dioxide injection wells.
Existing law requires the State Oil and Gas Supervisor to supervise the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities attendant to oil and gas production.
The federal Safe Drinking Water Act regulates certain wells as Class II injection wells. Under existing federal law, the authority to regulate Class II injection wells is delegated to the Geologic Energy Management Division. Under existing regulations, a well operator is required to obtain approval from the supervisor or a district deputy for a subsurface injection or disposal project, including Class II injection wells, and is required to file a notice of intention whenever a new well is to be drilled for use as an injection well or whenever an existing well is converted to an injection well.
This bill would prohibit an operator from injecting a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II injection well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.
Under existing law, a person who fails to comply with specified requirements relating to the regulation of oil or gas operations is guilty of a misdemeanor.
Because a violation of the prohibition specified in this bill would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This bill would make its operation contingent on the enactment of AB 1279 of the 202122 Regular Session, as provided.
(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.This bill would establish the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act, which would require the state board to develop and administer the Geologic Carbon Sequestration Demonstration Initiative to evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the state board, in consultation with the State Energy Resources Conservation and Development Commission and the State Water Resources Control Board, to award funding under the initiative, as specified, to at least one, but no more than 5, geologic carbon sequestration pilot projects that each meet specified criteria. The bill would require the state board, before awarding funds under the initiative, to develop guidelines for implementation of the initiative and the development of geologic carbon sequestration pilot projects and criteria for the selection of eligible projects, as specified. The bill would require the Secretary of the Natural Resources Agency, on or before July 1, 2024, to present a written proposal to the Legislature outlining legal standards governing agreements regarding 2 or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project, as provided.This bill would require the state board, on or before January 1, 2025, to adopt regulations creating a single unified application for submission by developers or sponsors of geologic carbon sequestration pilot projects that solicits from applicants, and directs to relevant agencies, all information needed to obtain all approvals from all state and local agencies necessary to approve a pilot project. The bill would require the State Geologist, on or before January 1, 2025, to adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state and would authorize the State Geologist to require changes in operation of a geologic sequestration pilot project to ensure safety if the monitoring and reporting detects increased seismicity.This bill would authorize the state board, upon appropriation by the Legislature, to fund research regarding geologic carbon sequestration technology piloted through the initiative.(2)Existing law defines public works, for purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement.This bill would require that a geologic carbon sequestration pilot project funded by the state board pursuant to the initiative constitutes a public works project for which prevailing wages are required to be paid. Because the willful violation of prevailing wage requirements when engaged in these public works projects would result in the imposition of misdemeanor penalties, this bill would impose a state-mandated local program.The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.This bill would provide that no reimbursement is required by this act for a specified reason.(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.
This bill would establish the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act, which would require the state board to develop and administer the Geologic Carbon Sequestration Demonstration Initiative to evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the state board, in consultation with the State Energy Resources Conservation and Development Commission and the State Water Resources Control Board, to award funding under the initiative, as specified, to at least one, but no more than 5, geologic carbon sequestration pilot projects that each meet specified criteria, including that the project begin construction before January 1, 2026. criteria. The bill would require the state board, before awarding funds under the initiative, to develop guidelines for implementation of the initiative and the development of geologic carbon sequestration pilot projects and criteria for the selection of eligible projects, as specified. The bill would require the Secretary of the Natural Resources Agency, on or before July 1, 2024, to present a written proposal to the Legislature outlining legal standards governing agreements regarding 2 or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project, as provided.
This bill would require the state board, on or before January 1, 2025, to adopt regulations creating a single unified application for submission by developers or sponsors of geologic carbon sequestration pilot projects that solicits from applicants, and directs to relevant agencies, all information needed to obtain all approvals from all state and local agencies necessary to approve a pilot project. The bill would require the State Geologist, on or before January 1, 2025, to adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state and would authorize the State Geologist to require changes in operation of a geologic sequestration pilot project to ensure safety if the monitoring and reporting detects increased seismicity.
This bill would authorize the state board, upon appropriation by the Legislature, to fund research regarding geologic carbon sequestration technology piloted through the initiative.
(2)Existing law defines public works, for purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement.
This bill would require that a geologic carbon sequestration pilot project funded by the state board pursuant to the initiative constitutes a public works project for which prevailing wages are required to be paid. Because the willful violation of prevailing wage requirements when engaged in these public works projects would result in the imposition of misdemeanor penalties, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.
This bill would establish the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act, which would require the state board to develop and administer the Geologic Carbon Sequestration Demonstration Initiative to evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the state board, in consultation with the State Energy Resources Conservation and Development Commission and the State Water Resources Control Board, to award funding under the initiative, as specified, to at least one, but no more than 5, geologic carbon sequestration pilot projects that each meet specified criteria, including that the project begin construction before January 1, 2026. The bill would require the state board, before awarding funds under the initiative, to develop guidelines for implementation of the initiative and the development of geologic carbon sequestration pilot projects and criteria for the selection of eligible projects, as specified. The bill would require the state board, no later than January 1, 2026, to approve at least one geologic carbon sequestration pilot project for funding pursuant to the initiative. The bill would require the Secretary of the Natural Resources Agency, on or before July 1, 2024, to present a written proposal to the Legislature outlining legal standards governing agreements regarding 2 or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project, as provided.
This bill would require the state board, on or before January 1, 2025, to adopt regulations creating a single unified application for submission by developers or sponsors of geologic carbon sequestration pilot projects that solicits from applicants, and directs to relevant agencies, all information needed to obtain all approvals from all state and local agencies necessary to approve a pilot project. The bill would require the State Geologist, on or before January 1, 2025, to adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state and would authorize the State Geologist to require changes in operation of a geologic sequestration pilot project to ensure safety if the monitoring and reporting detects increased seismicity.
This bill would authorize the state board to establish the Hub for Research and Innovation in Geologic Carbon Sequestration and authorize the state board, in consultation with the commission, to administer the research hub to study the development of geologic carbon sequestration technology and pilot projects not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the research hub, if feasible, to be located at a University of California, California State University, or California Community College campus and to include facilities for use by state agencies, researchers, and others, as provided. board, upon appropriation by the Legislature, to fund research regarding geologic carbon sequestration technology piloted through the initiative.
(2)Existing law defines public works, for purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement.
This bill would require that a geologic carbon sequestration pilot project funded by the state board pursuant to the initiative constitutes a public works project for which prevailing wages are required to be paid. Because the willful violation of prevailing wage requirements when engaged in these public works projects would result in the imposition of misdemeanor penalties, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.
This bill would establish the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act, which would require the state board to develop and administer the Geologic Carbon Sequestration Demonstration Initiative to evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the state board, in consultation with the State Energy Resources Conservation and Development Commission and the State Water Resources Control Board, to award funding under the initiative, as specified, to at least one, but no more than 3, 5, geologic carbon sequestration pilot projects that each meet specified criteria, including that the project begin construction before January 1, 2026. The bill would require the state board, before awarding funds under the initiative, to develop guidelines for implementation of the initiative and the development of geologic carbon sequestration pilot projects and criteria for the selection of eligible projects, as specified. The bill would require the state board, no later than January 1, 2026, to approve at least one geologic carbon sequestration pilot project for funding pursuant to the initiative. The bill also would prescribe requirements for title and the transfer of title to any geologic storage reservoir, the rights and liabilities of an operator of a geologic carbon sequestration project, other than a project approved by the state board pursuant to the initiative, and financial responsibility requirements for geologic carbon sequestration project operators, as provided. The bill would require the Attorney General, Secretary of the Natural Resources Agency, on or before July 1, 2024, to present a written proposal to the Legislature outlining legal standards governing agreements regarding 2 or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project, as provided.
This bill would require the state board, on or before January 1, 2025, to adopt regulations creating a single unified permit application for submission by developers or sponsors of geologic carbon sequestration pilot projects that solicits from applicants, and directs to relevant agencies, all information needed to obtain all approvals from all state and local agencies necessary to approve a pilot project. The bill would require the State Geologist, on or before January 1, 2025, to adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state. The bill would designate the state board as the lead agency under the California Environmental Quality Act for environmental review of carbon sequestration projects and designate responsible agencies, as specified. state and would authorize the State Geologist to require changes in operation of a geologic sequestration pilot project to ensure safety if the monitoring and reporting detects increased seismicity.
This bill would authorize the state board to establish the Hub for Research and Innovation in Geologic Carbon Sequestration and authorize the state board, in consultation with the commission, to administer the research hub to study the development of geologic carbon sequestration technology and pilot projects not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the research hub, if feasible, to be located at a University of California, California State University, or California Community College campus and to include facilities for use by state agencies, researchers, and others, as provided.
(2)Existing law defines public works, for purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement.
This bill would require that a geologic carbon sequestration pilot project funded by the state board pursuant to the initiative constitutes a public works project for which prevailing wages are required to be paid. Because the willful violation of prevailing wage requirements when engaged in these public works projects would result in the imposition of misdemeanor penalties, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.
This bill would establish the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act, which would require the state board to develop and administer the Geologic Carbon Sequestration Demonstration Initiative to evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the state board, in consultation with the State Energy Resources Conservation and Development Commission and the State Water Resources Control Board, to award funding under the initiative, as specified, to at least one, but no more than 3, geologic carbon sequestration pilot projects that each meet specified criteria, including that the project begin construction before January 1, 2026. The bill would require the state board, before awarding funds under the initiative, to develop guidelines for implementation of the initiative and the development of geologic carbon sequestration pilot projects and criteria for the selection of eligible projects, as specified. The bill would require the state board, no later than January 1, 2026, to approve at least one geologic carbon sequestration pilot project for funding pursuant to the initiative. The bill also would prescribe requirements for title and the transfer of title to any geologic storage reservoir, the rights and liabilities of an operator of a geologic carbon sequestration project, other than a project approved by the state board pursuant to the initiative, and financial responsibility requirements for geologic carbon sequestration project operators, as provided. The bill would require the Attorney General, on or before July 1, 2024, to present a written proposal to the Legislature outlining legal standards governing agreements regarding 2 or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project, as provided.
This bill would require the state board, on or before January 1, 2025, to adopt regulations to create a coordinated state permitting process for approval of geologic carbon sequestration projects, including creating a single unified permit application for submission by developers or sponsors of geologic carbon sequestration projects that incorporates the requirements for solicits from applicants, and directs to relevant agencies, all information needed to obtain all approvals from all state and local agencies necessary to approve a project. The bill would require the State Geologist, on or before January 1, 2025, to adopt regulations requiring a geologic carbon sequestration project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration project in the state. The bill would designate the state board as the lead agency under the California Environmental Quality Act for environmental review of carbon sequestration projects and designate responsible agencies, as specified.
This bill would authorize the state board to establish the Hub for Research and Innovation in Geologic Carbon Sequestration and authorize the state board, in consultation with the commission, to administer the research hub to study the development of geologic carbon sequestration technology and pilot projects not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the research hub, if feasible, to be located at a University of California, California State University, or California Community College campus and to include facilities for use by state agencies, researchers, and others, as provided.
(2)Existing law defines public works, for purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement.
This bill would require that a geologic carbon sequestration pilot project funded by the state board pursuant to the initiative constitutes a public works project for which prevailing wages are required to be paid. Because the willful violation of prevailing wage requirements when engaged in these public works projects would result in the imposition of misdemeanor penalties, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.
This bill would establish the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act, which would require the state board to develop and administer the Geologic Carbon Sequestration Demonstration Initiative to evaluate and demonstrate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the state board, in consultation with the State Energy Resources Conservation and Development Commission and the State Water Resources Control Board, to award funding under the initiative, as specified, to at least one, but no more than 3, geologic carbon sequestration demonstration pilot projects that each meet specified criteria, including that the project has the technical capacity to begin operation no later than September 1, 2023. begin construction before January 1, 2026. The bill would require the state board, prior to before awarding funds under the initiative, and no later than July 1, 2023, to develop guidelines for implementation of the initiative and the development of geologic carbon sequestration demonstration pilot projects and criteria for the selection of eligible projects, as specified. The bill would require the state board, no later than January 1, 2024, 2026, to approve at least one geologic carbon sequestration demonstration pilot project for funding pursuant to the initiative. The bill also would prescribe requirements for title and the transfer of title to any geologic storage reservoir, and the rights and liabilities of an operator of a geologic carbon sequestration project, other than a project approved by the state board pursuant to the initiative. initiative, and financial responsibility requirements for geologic carbon sequestration project operators, as provided.
This bill would require the state board, on or before January 1, 2025, to adopt regulations to create a coordinated state permitting process for approval of geologic carbon sequestration projects, including a single unified permit for submission by developers or sponsors of geologic carbon sequestration projects that incorporates the requirements for all approvals from all state and local agencies necessary to approve a project. The bill would designate the state board as the lead agency under the California Environmental Quality Act for environmental review of carbon sequestration projects and designate responsible agencies, as specified.
This bill would authorize the state board to establish the Hub for Research and Innovation in Geologic Carbon Sequestration and would require authorize the state board, in consultation with the commission, to administer the research hub to study the development of geologic carbon sequestration technology and demonstration pilot projects not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the research hub, if feasible, to be located at a University of California, California State University, or California Community College campus and to include facilities for use by state agencies, researchers, and others, as provided.
(2)Existing law defines public works, for purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement.
This bill would require that a geologic carbon sequestration demonstration pilot project funded by the state board pursuant to the initiative constitutes a public works project for which prevailing wages are required to be paid. Because the willful violation of prevailing wage requirements when engaged in these public works projects would result in the imposition of misdemeanor penalties, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.
This bill would establish the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act, which would require the state board to develop and administer the Geologic Carbon Sequestration Demonstration Initiative to evaluate and demonstrate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the state board, in consultation with the State Energy Resources Conservation and Development Commission and the State Water Resources Control Board, to award funding under the initiative, as specified, to at least one, but no more than 3, geologic carbon sequestration demonstration projects that each meet specified criteria, including that the project has the technical capacity to begin operation no later than September 1, 2023. The bill would require the state board, prior to awarding funds under the initiative initiative, and no later than July 1, 2023, to develop guidelines for implementation of the initiative and the development of geologic carbon sequestration demonstration projects and criteria for the selection of eligible projects, as specified. The bill would require the state board, no later than January 1, 2024, to approve at least one geologic carbon sequestration demonstration project for funding pursuant to the initiative. The bill also would prescribe requirements for title and the transfer of title to any geologic storage reservoir, and the rights and liabilities of an operator of a geologic carbon sequestration project, other than a project approved by the state board pursuant to the initiative.
This bill would require the state board, on or before January 1, 2025, to adopt regulations to create a coordinated state permitting process for approval of geologic carbon sequestration projects, including a single unified permit for submission by developers or sponsors of geologic carbon sequestration projects that incorporates the requirements for all approvals from all state and local agencies necessary to approve a project. The bill would designate the state board as the lead agency under the California Environmental Quality Act for environmental review of carbon sequestration projects and designate responsible agencies, as specified.
This bill would establish the Hub for Research and Innovation in Geologic Carbon Sequestration and would require the state board, in consultation with the commission, to administer the innovation hub to advance research hub to study the development of geologic carbon sequestration technology and demonstration projects not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the innovation research hub, if feasible, to be located at a University of California, California State University, or California Community College campus and to include facilities for use by state agencies, researchers, and others. others, as provided.
(2)Existing law defines public works, for purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement.
This bill would require that a geologic carbon sequestration demonstration project funded by the state board pursuant to the initiative constitutes a public works project for which prevailing wages are required to be paid. Because the willful violation of prevailing wage requirements when engaged in these public works projects would result in the imposition of misdemeanor penalties, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(1)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act requires the state board to approve a statewide greenhouse gas emissions limit equivalent to the statewide greenhouse gas emissions level in 1990 to be achieved by 2020 and to ensure that statewide greenhouse gas emissions are reduced to at least 40% below the 1990 level by 2030. The act requires the state board to prepare and approve a scoping plan for achieving the maximum technologically feasible and cost-effective reductions in greenhouse gas emissions and to update the scoping plan at least once every 5 years.
This bill would establish the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act, which would require the state board to develop and administer the Geologic Carbon Sequestration Demonstration Initiative to evaluate and demonstrate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the state board, in consultation with the State Energy Resources Conservation and Development Commission and the State Water Resources Control Board, to award funding under the initiative, as specified, to at least one, but no more than 3, geologic carbon sequestration demonstration projects that each meet specified criteria, including that the project has the technical capacity to begin operation no later than September 1, 2023. The bill would require the state board, prior to awarding funds under the initiative and no later than July 1, 2023, to develop guidelines for implementation of the initiative and the development of geologic carbon sequestration demonstration projects and criteria for the selection of eligible projects, as specified. The bill would require the state board, no later than January 1, 2024, to approve at least one geologic carbon sequestration demonstration project for funding pursuant to the initiative. The bill also would prescribe requirements for title and the transfer of title to any geologic storage reservoir, and the rights and liabilities of an operator of a geologic carbon sequestration project, other than a project approved by the state board pursuant to the initiative.
This bill would require the state board, on or before January 1, 2025, to adopt regulations to create a coordinated state permitting process for approval of geologic carbon sequestration projects, including a single unified permit for submission by developers or sponsors of projects that incorporates the requirements for approvals from all state and local agencies necessary to approve a project. The bill would designate the state board as the lead agency under the California Environmental Quality Act for environmental review of carbon sequestration projects and designate responsible agencies, as specified.
This bill would establish the Hub for Innovation in Geologic Carbon Sequestration and would require the state board, in consultation with the commission, to administer the innovation hub to advance the development of geologic carbon sequestration technology and projects not associated with enhanced oil recovery or fossil fuel production, among other things. The bill would require the innovation hub, if feasible, to be located at a University of California, California State University, or California Community College campus and to include facilities for use by state agencies, researchers, and others.
(2)Existing law defines public works, for purposes of regulating public works contracts, as, among other things, construction, alteration, demolition, installation, or repair work done under contract and paid for, in whole or in part, out of public funds. Existing law further requires that, except as specified, not less than the general prevailing rate of per diem wages be paid to workers employed on public works and imposes misdemeanor penalties for a willful violation of this requirement.
This bill would require that a geologic carbon sequestration demonstration project funded by the state board pursuant to the initiative constitutes a public works project for which prevailing wages are required to be paid. Because the willful violation of prevailing wage requirements when engaged in these public works projects would result in the imposition of misdemeanor penalties, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Existing law requires, no later than July 1, 2023, the Natural Resources Agency, in coordination with certain state agencies, to establish the Natural and Working Lands Climate Smart Strategy.This bill would require the Natural Resources Agency, in coordination with those agencies, to update the strategy every 4 years.Existing law requires, no later than July 1, 2023, the Natural Resources Agency, in coordination with certain state agencies, to establish the Natural and Working Lands Climate Smart Strategy.
This bill would require the Natural Resources Agency, in coordination with those agencies, to update the strategy every 4 years.
For purposes of this article, the following definitions apply:
(a)Carbon dioxide capture, removal, or sequestration project means a carbon dioxide capture project, a carbon dioxide removal project, or a sequestration project that seeks to provide for the long-term isolation of the carbon dioxide from the atmosphere through storage in a geologic formation.
(b)CCUS technology means carbon capture, utilization, and storage technology or equipment used for capturing and sequestering carbon dioxide emissions from industrial, commercial, or energy-related facilities or sources.
(c)CDR technology means carbon dioxide removal, defined as anthropogenic activities that use technologies or engineered strategies to remove carbon dioxide from the atmosphere and put it into long-term storage, including direct air capture.
(d)Program means the Carbon Capture, Removal, Utilization, and Storage Program established pursuant to Section 39741.1.
39741.1.(a)The state board shall establish a Carbon Capture, Removal, Utilization, and Storage Program to do all of the following:
(1)Evaluate the efficacy, safety, and viability of CCUS and CDR technologies and facilitate the capture and sequestration of carbon dioxide from these technologies, where appropriate.
(2)Develop monitoring and reporting schedules to state regulatory agencies for carbon dioxide capture, removal, or sequestration projects to ensure efficacy, safety, and viability of the projects.
(3)Ensure that all carbon dioxide capture, removal, or sequestration projects include the following, as appropriate:
(A)Strategies to minimize, to the maximum extent technologically feasible, copollutant emissions from facilities where CCUS or CDR technology is deployed to ensure that the use of carbon dioxide removal technologies and carbon capture and storage technologies does not have an adverse impact on local air quality and public health, particularly in low-income and disadvantaged communities.
(B)Strategies to ensure that carbon dioxide capture, removal, or sequestration projects minimize, to the maximum extent technologically feasible, local water pollution or air pollution from construction- and transportation-related impacts from the projects in communities adjacent to carbon dioxide capture, removal, or sequestration projects, including a geologic storage complex.
(C)Strategies to minimize the risk of seismic impacts to, and from, geologic storage projects, including the risk of gas leakage due to seismic activity.
(D)Monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide, and monitoring of sequestered carbon dioxide, including movement within the geologic storage complex, for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir. In adopting regulations pursuant to subdivision (c) that pertain to this subparagraph, the state board shall consult with the State Geologist.
(E)Monitoring of criteria pollutants and potential toxic air contaminants at the one or more sites within the geologic storage complex and at mobile or fixed sites within the facility, and monitoring of ambient carbon dioxide concentrations over the geologic storage complex to facilitate leak detection. Monitoring required under this section shall continue for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.
(F)Projects meet best available control technology requirements as determined by the local air district.
(b)In carrying out the objectives of the program, the state board shall prioritize the following:
(1)Reducing the emissions of greenhouse gases.
(2)Minimizing land use and potential environmental, noise, air quality, water quality, traffic, seismic, and other related impacts, and any potential health and safety risks, to all communities where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located to the maximum extent feasible.
(3)Maximizing workforce development and employment opportunities in each community where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located, to the extent feasible.
(4)Leveraging private funding sources and public-private partnership structures alongside potential state funding sources.
(5)Reducing fossil fuel production in the state.
(c)The state board shall adopt regulations to implement this section.
(d)In developing the program, the state board shall consult with the Geologic Carbon Sequestration Group established pursuant to Section 2213 of the Public Resources Code.
(e)In tracking progress toward the states climate targets, the state board shall prevent the double counting of emissions reductions associated with utilizing carbon dioxide that is captured or removed from the atmosphere. The state board may use a state board-approved third-party verifier to satisfy this subdivision.
(f)(1)Beginning January 1, 2025, and every two years thereafter, the state board shall report to the Legislature on the progress of the program. The report shall, at a minimum, include an evaluation of potential local environmental impacts and potential long-term leakage impacts as well as recommendations on measures to reduce these impacts of completed carbon dioxide capture, removal, or sequestration projects.
(2)A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
39741.2.(a)In furtherance of the objectives in Section 39741.1, on or before January 1, 2025, the state board shall, in consultation with relevant state and local agencies, adopt regulations for a unified permit application for the construction and operation of carbon dioxide capture, removal, or sequestration projects to expedite the issuance of permits or other authorizations for the construction and operation of those projects. The unified permit application shall solicit from applicants, and direct to all relevant state agencies, all information needed to obtain permits and other authorizations from relevant state and local agencies necessary for the construction and operation of a carbon dioxide capture, removal, or sequestration project. An applicants use of the unified permit application shall be optional.
(b)(1)Before adopting the unified permit application described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public.
(2)The state board shall design the workshops to allow the public to participate from any location via the internet or a call-in telephone number.
(c)The unified permit application developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), or its implementing regulations, with respect to the review or approval of a carbon dioxide capture, removal, or sequestration project.
(d)The unified permit application developed by the state board pursuant to subdivision (a) is for the purpose of efficiency but shall not displace the role of individual permitting agencies and shall not eliminate, abridge, or reduce the review or issuance of the individual permits covered by the application by the respective agencies. As part of the unified permit application, the state board shall, where possible, streamline duplicative administrative requirements or permit application questions.
(e)The unified permit application shall be used by relevant state agencies when issuing a permit or other authorization for the construction and operation of a carbon dioxide capture, removal, or sequestration project.
39741.3.In furtherance of the objectives in Section 39741.1, by January 1, 2025, the state board shall develop a centralized public database to track the deployment of CCUS and CDR technologies and the development of carbon dioxide capture, removal, or sequestration projects throughout the state.
39741.4.In furtherance of the objectives in Section 39741.1, by January 1, 2024, the state board may adopt protocols to support additional methods of utilization or storage of captured carbon dioxide, including carbon capture for use in products and in methods as identified by the state board.
39741.5.In furtherance of the objectives in Section 39741.1, the state board shall, no later than January 1, 2025, and consistent with Section 71464 of the Public Resources Code, adopt regulations for financial responsibility for carbon dioxide capture, removal, or sequestration projects in accordance with Section 71464 of the Public Resources Code that are no less stringent than those contained in Section 146.85 of Title 40 of the Code of Federal Regulations, as that section read on January 1, 2022. The regulations shall require an operator of a carbon dioxide capture, removal, or sequestration projects to maintain financial responsibility for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir.
SEC. 3.Section 2213 is added to the Public Resources Code, to read:2213.(a)The survey shall establish a Geologic Carbon Sequestration Group to provide independent expertise and regulatory guidance to the State Air Resources Board. The duties of the Geologic Carbon Sequestration Group shall include, but are not limited to, all of the following:
(1)Identification of high quality, suitable locations of Class VI injection wells, as defined in Section 144.6 of Title 40 of the Code of Federal Regulations.
(2)Identification of appropriate subsurface monitoring to ensure geologic sequestration of the injected carbon dioxide.
(3)Identification of hazards that may require the suspension of carbon dioxide injections.
(b)For purposes of this section, high quality, suitable locations means reservoirs that have been modeled to be capable of maintaining integrity for at least 1,000 years.
SEC. 4.Section 3132 is added to the Public Resources Code, to read:3132.(a)For purposes of this section, the following definitions apply:
(1)Carbon dioxide capture project means a project that uses a process to separate carbon dioxide from industrial, commercial, or energy-related sources, other than oil or gas production from a well, and produces a concentrated fluid of carbon dioxide with the intent of preventing emission of the carbon dioxide into the atmosphere.
(2)Carbon dioxide capture, removal, or sequestration project means a carbon dioxide capture project or carbon dioxide removal project, that seeks to provide for the long-term isolation or utilization of the carbon dioxide from the atmosphere through storage in a geologic formation.
(3)Carbon dioxide removal project means a project that uses a process to remove carbon dioxide from the atmosphere.
(4)Concentrated carbon dioxide fluid means a fluid that contains concentrated carbon dioxide that is proportionately greater than the ambient atmospheric concentration of carbon dioxide.
(b)An operator shall not inject a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.
SEC. 5.Part 8 (commencing with Section 71460) is added to Division 34 of the Public Resources Code, to read:8.Carbon Dioxide Capture, Removal, or Sequestration Projects71460.For purposes of this part, the following definitions apply:
(a)Carbon dioxide capture, removal, or sequestration project means a carbon dioxide capture project, a carbon dioxide removal project, or a sequestration project that seeks to provide for the long-term isolation or utilization of the carbon dioxide from the atmosphere through storage in a geologic formation.
(b)Carbon dioxide capture, removal, or sequestration project operator means a person owning or operating a carbon dioxide capture, removal, or sequestration project.
(c)Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.
(d)Geologic storage reservoir means a portion of a sedimentary geologic stratum or formation containing pore spaces, including depleted oil and gas reservoirs and saline formations, that is suitable for injection and permanent storage of carbon dioxide in the state.
(e)Secretary means the Secretary of the Natural Resources Agency.
(f)State board means the State Air Resources Board.
71461.(a)On or before July 1, 2025, the secretary, in consultation with the state board, shall publish a framework for governing agreements regarding two or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a carbon dioxide capture, removal, or sequestration project. The framework shall include recommended requirements for the submission of these agreements to, and the review, approval, or denial of these agreements by, an authorized state agency, and shall include, but not be limited to, all of the following:
(1)Identification of the appropriate state agency for submission, review, and approval or denial of the agreements, including any legal authorization or delegation necessary.
(2)A requirement that agreement proponents own title to at least an undivided three-fourths of the total interests subject to the proposed agreement.
(3)Standards to determine fair and reasonable compensation for owners of surface, mineral, and subsurface rights whose use of their property will be infringed upon by the geologic storage reservoir.
(4)A requirement to make a good faith offer of compensation by project proponents to the owners of surface, mineral, and subsurface rights before submission of an agreement.
(5)Standards for the provision of surface site access, to the extent reasonably necessary for postinjection monitoring.
(6)Standards for the allocation of liability related to the geologic storage reservoir, and associated injection wells, including, but not limited to, standards regarding the liability of a surface landowner who has sold or leased all interests in the geologic storage reservoir to a carbon dioxide capture, removal, or sequestration project operator.
(7)Standards for imposing sufficient financial responsibility requirements on carbon dioxide capture, removal, or sequestration project operators, including, but not limited to, the short-term costs of corrective actions, the cost of any liability associated with damage to drinking water supplies or seismic activity triggered by the geologic storage reservoir or damage to public and environmental health and safety, and long-term costs associated with well plugging and abandonment, ongoing site care and monitoring, and site closure of the geologic storage reservoir.
(8)Standards for allocating royalty payments associated with the leasing of a geologic storage reservoir.
(9)Any other requirements necessary to comply with state or federal legal or constitutional standards.
(b)In developing the framework required pursuant to subdivision (a), the secretary shall consult with appropriate state agencies, including, but not limited to, the Attorney General, the Department of Conservation, the Geologic Energy Management Division, the California Geological Survey, the State Lands Commission, the state board, and the State Energy Resources Conservation and Development Commission, as well as industry and legal experts, regarding applicable legal standards. The secretary shall also review other states legal standards applicable to carbon dioxide capture, removal, or sequestration projects.
(c)Before publishing the framework pursuant to subdivision (a), the secretary shall provide no less than 90 days for public comment on the framework. The secretary shall consider all comments received during this public comment period in developing the framework.
71462.(a)Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.
(b)A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.
(c)(1)An instrument that transfers the rights to a geologic storage reservoir under this section shall include all of the following:
(A)A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.
(B)A general description of the potential location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.
(C)An allocation of legal liability from the overlying surface estate owner to the geologic storage reservoir owner consistent with the standards developed in accordance with paragraph (6) of subdivision (a) of Section 71461.
(2)The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.
(d)Not less than 60 days before commencing development of a carbon dioxide capture, removal, and sequestration project, the carbon dioxide capture, removal, or sequestration project operator shall provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project.
(e)Each carbon dioxide capture, removal, or sequestration project operator shall record a notation on the deed to the property, or deeds to the properties, where the geologic storage complex or geologic storage reservoir is located, or any other document that is normally examined during a title search, that will notify a potential purchaser of the property, or properties, that the property has, or properties have, been used to sequester carbon dioxide, the volume of carbon dioxide sequestered, the injection zone or zones into which the carbon dioxide was injected, and the dates during which injection occurred.
(f)A carbon dioxide capture, removal, or sequestration project operator shall be liable for any damages caused by the operation of the carbon dioxide capture, removal, or sequestration project.
(g)Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease before the effective date of this part.
(h)This section is enacted for the limited purpose of facilitating the development of carbon dioxide capture, removal, or sequestration projects.
(i)(1)This section shall remain operative only until January 1, 2033, or until seven years after the date that the state board adopts regulations pursuant to Section 39741.1. of the Health and Safety Code, whichever is sooner.
(2)This section is repealed on January 1 following the date the section becomes inoperative pursuant to paragraph (1).
71463.The State Geologist shall report seismic activity or leakage of carbon dioxide from a carbon dioxide capture, removal, or sequestration project to the state board and may recommend changes in the operations of the project to the state board. The state board may require changes in operations of a carbon dioxide capture, removal, or sequestration project to ensure public and environmental health and safety, including, but not limited to, a mandatory pause in operation, if the monitoring and reporting detects increased seismicity or carbon dioxide leakage outside of the geologic storage reservoir.
71464.A carbon dioxide capture, removal, or sequestration project operator shall do all of the following:
(a)Maintain financial responsibility for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir. The operator shall demonstrate financial responsibility by submitting a plan to the state board to cover the short- and long-term costs associated with corrective action, well plugging and abandonment, geologic storage reservoir monitoring, site care and site closure, emergency and remedial response, liability associated with seismic activity triggered by the reservoir, or loss of carbon dioxide containment by the geologic storage reservoir, and protection of drinking water quality and public and environmental health and safety through financial responsibility instruments as determined by the state board pursuant to Section 39741.5 of the Health and Safety Code, which may include, but is not limited to, bonds.
(b)Show proof to the state board that there is binding agreement among relevant parties that drilling or extraction that may penetrate the geologic storage reservoir are prohibited to ensure public and environmental health and safety for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir.
(c)Create an air monitoring and mitigation plan to measure, track, and minimize potential toxic air contaminants and criteria air pollutants from the site of the carbon dioxide capture, removal, or sequestration project and submit the plan to the state board.
(d)Avoid any significant impact on residents in communities affected by a high-cumulative exposure burden caused by a potential net-increase in air, water, and soil pollution emanating from the site of the carbon dioxide capture, removal, or sequestration project in accordance with all applicable local, state, and federal laws and requirements, including requirements to use best available control technology, as defined in Section 40405 of the Health and Safety Code.
(e)Comply with Section 39741.1 of the Health and Safety Code and the regulations adopted by the state board pursuant to that section.
(f)Where avoidance of increased air pollution on site from such a project is not feasible, invest in mitigation in the community location adjacent to where the carbon dioxide capture, removal, or sequestration project is located which would be exposed to or impacted by any potential increased air pollution if mitigation measures are required pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000)) for the project to address significant impacts in local air pollution.
71465.(a)Pipelines shall only be utilized to transport carbon dioxide to or from a carbon dioxide capture, removal, or sequestration project once the federal Pipeline and Hazardous Materials Safety Administration has concluded the rulemaking (RIN 2137-AF60) regarding minimum federal safety standards for transportation of carbon dioxide by pipeline (Parts 190 to 199, inclusive, of Title 49 of the Code of Federal Regulations) and the carbon dioxide capture, removal, or sequestration project operator demonstrates that the pipeline meets those standards. This section shall not apply to carbon captured at a permitted facility and transported within that facility or property.
(b)The Natural Resources Agency, in consultation with the Public Utilities Commission, shall, no later than February 1, 2023, provide a proposal to the Legislature to establish a state framework and standards for the design, operation, siting, and maintenance of intrastate pipelines carrying carbon dioxide fluids of varying composition and phase to minimize the risk posed to public and environmental health and safety. The recommended framework shall be designed to minimize risk to public health and environmental health and safety, to the extent feasible.
SEC. 6.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 7.This act shall become operative only if Assembly Bill 1279 of the 202122 Regular Session is enacted and becomes operative on or before January 1, 2023.
For purposes of this article, the following definitions apply:
(a)Carbon dioxide capture, removal, or sequestration project means a carbon dioxide capture project, a carbon dioxide removal project, or a sequestration project that seeks to provide for the long-term isolation of the carbon dioxide from the atmosphere through storage in a geologic formation.
(b)CCUS technology means carbon capture, utilization, and storage technology or equipment used for capturing and sequestering carbon dioxide emissions from industrial, commercial, or energy-related facilities or sources.
(c)CDR technology means carbon dioxide removal, defined as anthropogenic activities that use technologies or engineered strategies to remove carbon dioxide from the atmosphere and put it into long-term storage, including direct air capture.
(d)Program means the Carbon Capture, Removal, Utilization, and Storage Program established pursuant to Section 39741.1.
39741.1.(a)The state board shall establish a Carbon Capture, Removal, Utilization, and Storage Program to do all of the following:
(1)Evaluate the efficacy, safety, and viability of CCUS and CDR technologies and facilitate the capture and sequestration of carbon dioxide from these technologies, where appropriate.
(2)Develop monitoring and reporting schedules to state regulatory agencies for carbon dioxide capture, removal, or sequestration projects to ensure efficacy, safety, and viability of the projects.
(3)Ensure that all carbon dioxide capture, removal, or sequestration projects include the following, as appropriate:
(A)Strategies to minimize, to the maximum extent technologically feasible, copollutant emissions from facilities where CCUS or CDR technology is deployed to ensure that the use of carbon dioxide removal technologies and carbon capture and storage technologies does not have an adverse impact on local air quality and public health, particularly in low-income and disadvantaged communities.
(B)Strategies to ensure that carbon dioxide capture, removal, or sequestration projects minimize, to the maximum extent technologically feasible, local water pollution or air pollution from construction- and transportation-related impacts from the projects in communities adjacent to carbon dioxide capture, removal, or sequestration projects, including a geologic storage complex.
(C)Strategies to minimize the risk of seismic impacts to, and from, geologic storage projects, including the risk of gas leakage due to seismic activity.
(D)Monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide, and monitoring of sequestered carbon dioxide, including movement within the geologic storage complex, for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir. In adopting regulations pursuant to subdivision (c) that pertain to this subparagraph, the state board shall consult with the State Geologist.
(E)Monitoring of criteria pollutants and potential toxic air contaminants at the one or more sites within the geologic storage complex and at mobile or fixed sites within the facility, and monitoring of ambient carbon dioxide concentrations over the geologic storage complex to facilitate leak detection. Monitoring required under this section shall continue for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.
(F)Projects meet best available control technology requirements as determined by the local air district.
(b)In carrying out the objectives of the program, the state board shall prioritize the following:
(1)Reducing the emissions of greenhouse gases.
(2)Minimizing land use and potential environmental, noise, air quality, water quality, traffic, seismic, and other related impacts, and any potential health and safety risks, to all communities where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located to the maximum extent feasible.
(3)Maximizing workforce development and employment opportunities in each community where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located, to the extent feasible.
(4)Leveraging private funding sources and public-private partnership structures alongside potential state funding sources.
(5)Reducing fossil fuel production in the state.
(c)The state board shall adopt regulations to implement this section.
(d)In developing the program, the state board shall consult with the Geologic Carbon Sequestration Group established pursuant to Section 2213 of the Public Resources Code.
(e)In tracking progress toward the states climate targets, the state board shall prevent the double counting of emissions reductions associated with utilizing carbon dioxide that is captured or removed from the atmosphere. The state board may use a state board-approved third-party verifier to satisfy this subdivision.
(f)(1)Beginning January 1, 2025, and every two years thereafter, the state board shall report to the Legislature on the progress of the program. The report shall, at a minimum, include an evaluation of potential local environmental impacts and potential long-term leakage impacts as well as recommendations on measures to reduce these impacts of completed carbon dioxide capture, removal, or sequestration projects.
(2)A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
39741.2.(a)In furtherance of the objectives in Section 39741.1, on or before January 1, 2025, the state board shall, in consultation with relevant state and local agencies, adopt regulations for a unified permit application for the construction and operation of carbon dioxide capture, removal, or sequestration projects to expedite the issuance of permits or other authorizations for the construction and operation of those projects. The unified permit application shall solicit from applicants, and direct to all relevant state agencies, all information needed to obtain permits and other authorizations from relevant state and local agencies necessary for the construction and operation of a carbon dioxide capture, removal, or sequestration project. An applicants use of the unified permit application shall be optional.
(b)(1)Before adopting the unified permit application described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public.
(2)The state board shall design the workshops to allow the public to participate from any location via the internet or a call-in telephone number.
(c)The unified permit application developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), or its implementing regulations, with respect to the review or approval of a carbon dioxide capture, removal, or sequestration project.
(d)The unified permit application developed by the state board pursuant to subdivision (a) is for the purpose of efficiency but shall not displace the role of individual permitting agencies and shall not eliminate, abridge, or reduce the review or issuance of the individual permits covered by the application by the respective agencies. As part of the unified permit application, the state board shall, where possible, streamline duplicative administrative requirements or permit application questions.
(e)The unified permit application shall be used by relevant state agencies when issuing a permit or other authorization for the construction and operation of a carbon dioxide capture, removal, or sequestration project.
39741.3.In furtherance of the objectives in Section 39741.1, by January 1, 2025, the state board shall develop a centralized public database to track the deployment of CCUS and CDR technologies and the development of carbon dioxide capture, removal, or sequestration projects throughout the state.
39741.4.In furtherance of the objectives in Section 39741.1, by January 1, 2024, the state board may adopt protocols to support additional methods of utilization or storage of captured carbon dioxide, including carbon capture for use in products and in methods as identified by the state board.
39741.5.In furtherance of the objectives in Section 39741.1, the state board shall, no later than January 1, 2025, and consistent with Section 71464 of the Public Resources Code, adopt regulations for financial responsibility for carbon dioxide capture, removal, or sequestration projects in accordance with Section 71464 of the Public Resources Code that are no less stringent than those contained in Section 146.85 of Title 40 of the Code of Federal Regulations, as that section read on January 1, 2022. The regulations shall require an operator of a carbon dioxide capture, removal, or sequestration projects to maintain financial responsibility for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir.
SEC. 3.Section 2213 is added to the Public Resources Code, to read:2213.(a)The survey shall establish a Geologic Carbon Sequestration Group to provide independent expertise and regulatory guidance to the State Air Resources Board. The duties of the Geologic Carbon Sequestration Group shall include, but are not limited to, all of the following:
(1)Identification of high quality, suitable locations of Class VI injection wells, as defined in Section 144.6 of Title 40 of the Code of Federal Regulations.
(2)Identification of appropriate subsurface monitoring to ensure geologic sequestration of the injected carbon dioxide.
(3)Identification of hazards that may require the suspension of carbon dioxide injections.
(b)For purposes of this section, high quality, suitable locations means reservoirs that have been modeled to be capable of maintaining integrity for at least 1,000 years.
SEC. 4.Section 3132 is added to the Public Resources Code, to read:3132.(a)For purposes of this section, the following definitions apply:
(1)Carbon dioxide capture project means a project that uses a process to separate carbon dioxide from industrial, commercial, or energy-related sources, other than oil or gas production from a well, and produces a concentrated fluid of carbon dioxide with the intent of preventing emission of the carbon dioxide into the atmosphere.
(2)Carbon dioxide capture, removal, or sequestration project means a carbon dioxide capture project or carbon dioxide removal project, that seeks to provide for the long-term isolation or utilization of the carbon dioxide from the atmosphere through storage in a geologic formation.
(3)Carbon dioxide removal project means a project that uses a process to remove carbon dioxide from the atmosphere.
(4)Concentrated carbon dioxide fluid means a fluid that contains concentrated carbon dioxide that is proportionately greater than the ambient atmospheric concentration of carbon dioxide.
(b)An operator shall not inject a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.
SEC. 5.Part 8 (commencing with Section 71460) is added to Division 34 of the Public Resources Code, to read:8.Carbon Dioxide Capture, Removal, or Sequestration Projects71460.For purposes of this part, the following definitions apply:
(a)Carbon dioxide capture, removal, or sequestration project means a carbon dioxide capture project, a carbon dioxide removal project, or a sequestration project that seeks to provide for the long-term isolation or utilization of the carbon dioxide from the atmosphere through storage in a geologic formation.
(b)Carbon dioxide capture, removal, or sequestration project operator means a person owning or operating a carbon dioxide capture, removal, or sequestration project.
(c)Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.
(d)Geologic storage reservoir means a portion of a sedimentary geologic stratum or formation containing pore spaces, including depleted oil and gas reservoirs and saline formations, that is suitable for injection and permanent storage of carbon dioxide in the state.
(e)Secretary means the Secretary of the Natural Resources Agency.
(f)State board means the State Air Resources Board.
71461.(a)On or before July 1, 2025, the secretary, in consultation with the state board, shall publish a framework for governing agreements regarding two or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a carbon dioxide capture, removal, or sequestration project. The framework shall include recommended requirements for the submission of these agreements to, and the review, approval, or denial of these agreements by, an authorized state agency, and shall include, but not be limited to, all of the following:
(1)Identification of the appropriate state agency for submission, review, and approval or denial of the agreements, including any legal authorization or delegation necessary.
(2)A requirement that agreement proponents own title to at least an undivided three-fourths of the total interests subject to the proposed agreement.
(3)Standards to determine fair and reasonable compensation for owners of surface, mineral, and subsurface rights whose use of their property will be infringed upon by the geologic storage reservoir.
(4)A requirement to make a good faith offer of compensation by project proponents to the owners of surface, mineral, and subsurface rights before submission of an agreement.
(5)Standards for the provision of surface site access, to the extent reasonably necessary for postinjection monitoring.
(6)Standards for the allocation of liability related to the geologic storage reservoir, and associated injection wells, including, but not limited to, standards regarding the liability of a surface landowner who has sold or leased all interests in the geologic storage reservoir to a carbon dioxide capture, removal, or sequestration project operator.
(7)Standards for imposing sufficient financial responsibility requirements on carbon dioxide capture, removal, or sequestration project operators, including, but not limited to, the short-term costs of corrective actions, the cost of any liability associated with damage to drinking water supplies or seismic activity triggered by the geologic storage reservoir or damage to public and environmental health and safety, and long-term costs associated with well plugging and abandonment, ongoing site care and monitoring, and site closure of the geologic storage reservoir.
(8)Standards for allocating royalty payments associated with the leasing of a geologic storage reservoir.
(9)Any other requirements necessary to comply with state or federal legal or constitutional standards.
(b)In developing the framework required pursuant to subdivision (a), the secretary shall consult with appropriate state agencies, including, but not limited to, the Attorney General, the Department of Conservation, the Geologic Energy Management Division, the California Geological Survey, the State Lands Commission, the state board, and the State Energy Resources Conservation and Development Commission, as well as industry and legal experts, regarding applicable legal standards. The secretary shall also review other states legal standards applicable to carbon dioxide capture, removal, or sequestration projects.
(c)Before publishing the framework pursuant to subdivision (a), the secretary shall provide no less than 90 days for public comment on the framework. The secretary shall consider all comments received during this public comment period in developing the framework.
71462.(a)Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.
(b)A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.
(c)(1)An instrument that transfers the rights to a geologic storage reservoir under this section shall include all of the following:
(A)A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.
(B)A general description of the potential location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.
(C)An allocation of legal liability from the overlying surface estate owner to the geologic storage reservoir owner consistent with the standards developed in accordance with paragraph (6) of subdivision (a) of Section 71461.
(2)The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.
(d)Not less than 60 days before commencing development of a carbon dioxide capture, removal, and sequestration project, the carbon dioxide capture, removal, or sequestration project operator shall provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project.
(e)Each carbon dioxide capture, removal, or sequestration project operator shall record a notation on the deed to the property, or deeds to the properties, where the geologic storage complex or geologic storage reservoir is located, or any other document that is normally examined during a title search, that will notify a potential purchaser of the property, or properties, that the property has, or properties have, been used to sequester carbon dioxide, the volume of carbon dioxide sequestered, the injection zone or zones into which the carbon dioxide was injected, and the dates during which injection occurred.
(f)A carbon dioxide capture, removal, or sequestration project operator shall be liable for any damages caused by the operation of the carbon dioxide capture, removal, or sequestration project.
(g)Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease before the effective date of this part.
(h)This section is enacted for the limited purpose of facilitating the development of carbon dioxide capture, removal, or sequestration projects.
(i)(1)This section shall remain operative only until January 1, 2033, or until seven years after the date that the state board adopts regulations pursuant to Section 39741.1. of the Health and Safety Code, whichever is sooner.
(2)This section is repealed on January 1 following the date the section becomes inoperative pursuant to paragraph (1).
71463.The State Geologist shall report seismic activity or leakage of carbon dioxide from a carbon dioxide capture, removal, or sequestration project to the state board and may recommend changes in the operations of the project to the state board. The state board may require changes in operations of a carbon dioxide capture, removal, or sequestration project to ensure public and environmental health and safety, including, but not limited to, a mandatory pause in operation, if the monitoring and reporting detects increased seismicity or carbon dioxide leakage outside of the geologic storage reservoir.
71464.A carbon dioxide capture, removal, or sequestration project operator shall do all of the following:
(a)Maintain financial responsibility for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir. The operator shall demonstrate financial responsibility by submitting a plan to the state board to cover the short- and long-term costs associated with corrective action, well plugging and abandonment, geologic storage reservoir monitoring, site care and site closure, emergency and remedial response, liability associated with seismic activity triggered by the reservoir, or loss of carbon dioxide containment by the geologic storage reservoir, and protection of drinking water quality and public and environmental health and safety through financial responsibility instruments as determined by the state board pursuant to Section 39741.5 of the Health and Safety Code, which may include, but is not limited to, bonds.
(b)Show proof to the state board that there is binding agreement among relevant parties that drilling or extraction that may penetrate the geologic storage reservoir are prohibited to ensure public and environmental health and safety for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir.
(c)Create an air monitoring and mitigation plan to measure, track, and minimize potential toxic air contaminants and criteria air pollutants from the site of the carbon dioxide capture, removal, or sequestration project and submit the plan to the state board.
(d)Avoid any significant impact on residents in communities affected by a high-cumulative exposure burden caused by a potential net-increase in air, water, and soil pollution emanating from the site of the carbon dioxide capture, removal, or sequestration project in accordance with all applicable local, state, and federal laws and requirements, including requirements to use best available control technology, as defined in Section 40405 of the Health and Safety Code.
(e)Comply with Section 39741.1 of the Health and Safety Code and the regulations adopted by the state board pursuant to that section.
(f)Where avoidance of increased air pollution on site from such a project is not feasible, invest in mitigation in the community location adjacent to where the carbon dioxide capture, removal, or sequestration project is located which would be exposed to or impacted by any potential increased air pollution if mitigation measures are required pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000)) for the project to address significant impacts in local air pollution.
71465.(a)Pipelines shall only be utilized to transport carbon dioxide to or from a carbon dioxide capture, removal, or sequestration project once the federal Pipeline and Hazardous Materials Safety Administration has concluded the rulemaking (RIN 2137-AF60) regarding minimum federal safety standards for transportation of carbon dioxide by pipeline (Parts 190 to 199, inclusive, of Title 49 of the Code of Federal Regulations) and the carbon dioxide capture, removal, or sequestration project operator demonstrates that the pipeline meets those standards. This section shall not apply to carbon captured at a permitted facility and transported within that facility or property.
(b)The Natural Resources Agency, in consultation with the Public Utilities Commission, shall, no later than February 1, 2023, provide a proposal to the Legislature to establish a state framework and standards for the design, operation, siting, and maintenance of intrastate pipelines carrying carbon dioxide fluids of varying composition and phase to minimize the risk posed to public and environmental health and safety. The recommended framework shall be designed to minimize risk to public health and environmental health and safety, to the extent feasible.
SEC. 6.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 7.This act shall become operative only if Assembly Bill 1279 of the 202122 Regular Session is enacted and becomes operative on or before January 1, 2023.
For purposes of this article, the following definitions apply:
(a)Carbon dioxide capture, removal, or sequestration project means a carbon dioxide capture project, a carbon dioxide removal project, or a sequestration project that seeks to provide for the long-term isolation of the carbon dioxide from the atmosphere through storage in a geologic formation.
(b)CCUS technology means carbon capture, utilization, and storage technology or equipment used for capturing and sequestering carbon dioxide emissions from industrial, commercial, or energy-related facilities or sources.
(c)CDR technology means carbon dioxide removal, defined as anthropogenic activities that use technologies or engineered strategies to remove carbon dioxide from the atmosphere and put it into long-term storage, including direct air capture.
(d)Program means the Carbon Capture, Removal, Utilization, and Storage Program established pursuant to Section 39741.1.
39741.1.(a)The state board shall establish a Carbon Capture, Removal, Utilization, and Storage Program to do all of the following:
(1)Evaluate the efficacy, safety, and viability of CCUS and CDR technologies and facilitate the capture and sequestration of carbon dioxide from these technologies, where appropriate.
(2)Develop monitoring and reporting schedules to state regulatory agencies for carbon dioxide capture, removal, or sequestration projects to ensure efficacy, safety, and viability of the projects.
(3)Ensure that all carbon dioxide capture, removal, or sequestration projects include the following, as appropriate:
(A)Strategies to minimize, to the maximum extent technologically feasible, copollutant emissions from facilities where CCUS or CDR technology is deployed to ensure that the use of carbon dioxide removal technologies and carbon capture and storage technologies does not have an adverse impact on local air quality and public health, particularly in low-income and disadvantaged communities.
(B)Strategies to ensure that carbon dioxide capture, removal, or sequestration projects minimize, to the maximum extent technologically feasible, local water pollution or air pollution from construction- and transportation-related impacts from the projects in communities adjacent to carbon dioxide capture, removal, or sequestration projects, including a geologic storage complex.
(C)Strategies to minimize the risk of seismic impacts to, and from, geologic storage projects, including the risk of gas leakage due to seismic activity.
(D)Monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide, and monitoring of sequestered carbon dioxide, including movement within the geologic storage complex, for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir. In adopting regulations pursuant to subdivision (c) that pertain to this subparagraph, the state board shall consult with the State Geologist.
(E)Monitoring of criteria pollutants and potential toxic air contaminants at the one or more sites within the geologic storage complex and at mobile or fixed sites within the facility, and monitoring of ambient carbon dioxide concentrations over the geologic storage complex to facilitate leak detection. Monitoring required under this section shall continue for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.
(F)Projects meet best available control technology requirements as determined by the local air district.
(b)In carrying out the objectives of the program, the state board shall prioritize the following:
(1)Reducing the emissions of greenhouse gases.
(2)Minimizing land use and potential environmental, noise, air quality, water quality, traffic, seismic, and other related impacts, and any potential health and safety risks, to all communities where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located to the maximum extent feasible.
(3)Maximizing workforce development and employment opportunities in each community where CCUS and CDR technologies are deployed, and carbon dioxide capture, removal, or sequestration projects are located, to the extent feasible.
(4)Leveraging private funding sources and public-private partnership structures alongside potential state funding sources.
(5)Reducing fossil fuel production in the state.
(c)The state board shall adopt regulations to implement this section.
(d)In developing the program, the state board shall consult with the Geologic Carbon Sequestration Group established pursuant to Section 2213 of the Public Resources Code.
(e)In tracking progress toward the states climate targets, the state board shall prevent the double counting of emissions reductions associated with utilizing carbon dioxide that is captured or removed from the atmosphere. The state board may use a state board-approved third-party verifier to satisfy this subdivision.
(f)(1)Beginning January 1, 2025, and every two years thereafter, the state board shall report to the Legislature on the progress of the program. The report shall, at a minimum, include an evaluation of potential local environmental impacts and potential long-term leakage impacts as well as recommendations on measures to reduce these impacts of completed carbon dioxide capture, removal, or sequestration projects.
(2)A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
39741.2.(a)In furtherance of the objectives in Section 39741.1, on or before January 1, 2025, the state board shall, in consultation with relevant state and local agencies, adopt regulations for a unified permit application for the construction and operation of carbon dioxide capture, removal, or sequestration projects to expedite the issuance of permits or other authorizations for the construction and operation of those projects. The unified permit application shall solicit from applicants, and direct to all relevant state agencies, all information needed to obtain permits and other authorizations from relevant state and local agencies necessary for the construction and operation of a carbon dioxide capture, removal, or sequestration project. An applicants use of the unified permit application shall be optional.
(b)(1)Before adopting the unified permit application described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public.
(2)The state board shall design the workshops to allow the public to participate from any location via the internet or a call-in telephone number.
(c)The unified permit application developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), or its implementing regulations, with respect to the review or approval of a carbon dioxide capture, removal, or sequestration project.
(d)The unified permit application developed by the state board pursuant to subdivision (a) is for the purpose of efficiency but shall not displace the role of individual permitting agencies and shall not eliminate, abridge, or reduce the review or issuance of the individual permits covered by the application by the respective agencies. As part of the unified permit application, the state board shall, where possible, streamline duplicative administrative requirements or permit application questions.
(e)The unified permit application shall be used by relevant state agencies when issuing a permit or other authorization for the construction and operation of a carbon dioxide capture, removal, or sequestration project.
39741.3.In furtherance of the objectives in Section 39741.1, by January 1, 2025, the state board shall develop a centralized public database to track the deployment of CCUS and CDR technologies and the development of carbon dioxide capture, removal, or sequestration projects throughout the state.
39741.4.In furtherance of the objectives in Section 39741.1, by January 1, 2024, the state board may adopt protocols to support additional methods of utilization or storage of captured carbon dioxide, including carbon capture for use in products and in methods as identified by the state board.
39741.5.In furtherance of the objectives in Section 39741.1, the state board shall, no later than January 1, 2025, and consistent with Section 71464 of the Public Resources Code, adopt regulations for financial responsibility for carbon dioxide capture, removal, or sequestration projects in accordance with Section 71464 of the Public Resources Code that are no less stringent than those contained in Section 146.85 of Title 40 of the Code of Federal Regulations, as that section read on January 1, 2022. The regulations shall require an operator of a carbon dioxide capture, removal, or sequestration projects to maintain financial responsibility for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir.
SEC. 3.Section 2213 is added to the Public Resources Code, to read:2213.(a)The survey shall establish a Geologic Carbon Sequestration Group to provide independent expertise and regulatory guidance to the State Air Resources Board. The duties of the Geologic Carbon Sequestration Group shall include, but are not limited to, all of the following:
(1)Identification of high quality, suitable locations of Class VI injection wells, as defined in Section 144.6 of Title 40 of the Code of Federal Regulations.
(2)Identification of appropriate subsurface monitoring to ensure geologic sequestration of the injected carbon dioxide.
(3)Identification of hazards that may require the suspension of carbon dioxide injections.
(b)For purposes of this section, high quality, suitable locations means reservoirs that have been modeled to be capable of maintaining integrity for at least 1,000 years.
SEC. 4.Section 3132 is added to the Public Resources Code, to read:3132.(a)For purposes of this section, the following definitions apply:
(1)Carbon dioxide capture project means a project that uses a process to separate carbon dioxide from industrial, commercial, or energy-related sources, other than oil or gas production from a well, and produces a concentrated fluid of carbon dioxide with the intent of preventing emission of the carbon dioxide into the atmosphere.
(2)Carbon dioxide capture, removal, or sequestration project means a carbon dioxide capture project or carbon dioxide removal project, that seeks to provide for the long-term isolation or utilization of the carbon dioxide from the atmosphere through storage in a geologic formation.
(3)Carbon dioxide removal project means a project that uses a process to remove carbon dioxide from the atmosphere.
(4)Concentrated carbon dioxide fluid means a fluid that contains concentrated carbon dioxide that is proportionately greater than the ambient atmospheric concentration of carbon dioxide.
(b)An operator shall not inject a concentrated carbon dioxide fluid produced by a carbon dioxide capture, removal, or sequestration project into a Class II well for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.
SEC. 5.Part 8 (commencing with Section 71460) is added to Division 34 of the Public Resources Code, to read:8.Carbon Dioxide Capture, Removal, or Sequestration Projects71460.For purposes of this part, the following definitions apply:
(a)Carbon dioxide capture, removal, or sequestration project means a carbon dioxide capture project, a carbon dioxide removal project, or a sequestration project that seeks to provide for the long-term isolation or utilization of the carbon dioxide from the atmosphere through storage in a geologic formation.
(b)Carbon dioxide capture, removal, or sequestration project operator means a person owning or operating a carbon dioxide capture, removal, or sequestration project.
(c)Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.
(d)Geologic storage reservoir means a portion of a sedimentary geologic stratum or formation containing pore spaces, including depleted oil and gas reservoirs and saline formations, that is suitable for injection and permanent storage of carbon dioxide in the state.
(e)Secretary means the Secretary of the Natural Resources Agency.
(f)State board means the State Air Resources Board.
71461.(a)On or before July 1, 2025, the secretary, in consultation with the state board, shall publish a framework for governing agreements regarding two or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a carbon dioxide capture, removal, or sequestration project. The framework shall include recommended requirements for the submission of these agreements to, and the review, approval, or denial of these agreements by, an authorized state agency, and shall include, but not be limited to, all of the following:
(1)Identification of the appropriate state agency for submission, review, and approval or denial of the agreements, including any legal authorization or delegation necessary.
(2)A requirement that agreement proponents own title to at least an undivided three-fourths of the total interests subject to the proposed agreement.
(3)Standards to determine fair and reasonable compensation for owners of surface, mineral, and subsurface rights whose use of their property will be infringed upon by the geologic storage reservoir.
(4)A requirement to make a good faith offer of compensation by project proponents to the owners of surface, mineral, and subsurface rights before submission of an agreement.
(5)Standards for the provision of surface site access, to the extent reasonably necessary for postinjection monitoring.
(6)Standards for the allocation of liability related to the geologic storage reservoir, and associated injection wells, including, but not limited to, standards regarding the liability of a surface landowner who has sold or leased all interests in the geologic storage reservoir to a carbon dioxide capture, removal, or sequestration project operator.
(7)Standards for imposing sufficient financial responsibility requirements on carbon dioxide capture, removal, or sequestration project operators, including, but not limited to, the short-term costs of corrective actions, the cost of any liability associated with damage to drinking water supplies or seismic activity triggered by the geologic storage reservoir or damage to public and environmental health and safety, and long-term costs associated with well plugging and abandonment, ongoing site care and monitoring, and site closure of the geologic storage reservoir.
(8)Standards for allocating royalty payments associated with the leasing of a geologic storage reservoir.
(9)Any other requirements necessary to comply with state or federal legal or constitutional standards.
(b)In developing the framework required pursuant to subdivision (a), the secretary shall consult with appropriate state agencies, including, but not limited to, the Attorney General, the Department of Conservation, the Geologic Energy Management Division, the California Geological Survey, the State Lands Commission, the state board, and the State Energy Resources Conservation and Development Commission, as well as industry and legal experts, regarding applicable legal standards. The secretary shall also review other states legal standards applicable to carbon dioxide capture, removal, or sequestration projects.
(c)Before publishing the framework pursuant to subdivision (a), the secretary shall provide no less than 90 days for public comment on the framework. The secretary shall consider all comments received during this public comment period in developing the framework.
71462.(a)Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.
(b)A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.
(c)(1)An instrument that transfers the rights to a geologic storage reservoir under this section shall include all of the following:
(A)A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.
(B)A general description of the potential location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.
(C)An allocation of legal liability from the overlying surface estate owner to the geologic storage reservoir owner consistent with the standards developed in accordance with paragraph (6) of subdivision (a) of Section 71461.
(2)The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.
(d)Not less than 60 days before commencing development of a carbon dioxide capture, removal, and sequestration project, the carbon dioxide capture, removal, or sequestration project operator shall provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project.
(e)Each carbon dioxide capture, removal, or sequestration project operator shall record a notation on the deed to the property, or deeds to the properties, where the geologic storage complex or geologic storage reservoir is located, or any other document that is normally examined during a title search, that will notify a potential purchaser of the property, or properties, that the property has, or properties have, been used to sequester carbon dioxide, the volume of carbon dioxide sequestered, the injection zone or zones into which the carbon dioxide was injected, and the dates during which injection occurred.
(f)A carbon dioxide capture, removal, or sequestration project operator shall be liable for any damages caused by the operation of the carbon dioxide capture, removal, or sequestration project.
(g)Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease before the effective date of this part.
(h)This section is enacted for the limited purpose of facilitating the development of carbon dioxide capture, removal, or sequestration projects.
(i)(1)This section shall remain operative only until January 1, 2033, or until seven years after the date that the state board adopts regulations pursuant to Section 39741.1. of the Health and Safety Code, whichever is sooner.
(2)This section is repealed on January 1 following the date the section becomes inoperative pursuant to paragraph (1).
71463.The State Geologist shall report seismic activity or leakage of carbon dioxide from a carbon dioxide capture, removal, or sequestration project to the state board and may recommend changes in the operations of the project to the state board. The state board may require changes in operations of a carbon dioxide capture, removal, or sequestration project to ensure public and environmental health and safety, including, but not limited to, a mandatory pause in operation, if the monitoring and reporting detects increased seismicity or carbon dioxide leakage outside of the geologic storage reservoir.
71464.A carbon dioxide capture, removal, or sequestration project operator shall do all of the following:
(a)Maintain financial responsibility for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir. The operator shall demonstrate financial responsibility by submitting a plan to the state board to cover the short- and long-term costs associated with corrective action, well plugging and abandonment, geologic storage reservoir monitoring, site care and site closure, emergency and remedial response, liability associated with seismic activity triggered by the reservoir, or loss of carbon dioxide containment by the geologic storage reservoir, and protection of drinking water quality and public and environmental health and safety through financial responsibility instruments as determined by the state board pursuant to Section 39741.5 of the Health and Safety Code, which may include, but is not limited to, bonds.
(b)Show proof to the state board that there is binding agreement among relevant parties that drilling or extraction that may penetrate the geologic storage reservoir are prohibited to ensure public and environmental health and safety for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir.
(c)Create an air monitoring and mitigation plan to measure, track, and minimize potential toxic air contaminants and criteria air pollutants from the site of the carbon dioxide capture, removal, or sequestration project and submit the plan to the state board.
(d)Avoid any significant impact on residents in communities affected by a high-cumulative exposure burden caused by a potential net-increase in air, water, and soil pollution emanating from the site of the carbon dioxide capture, removal, or sequestration project in accordance with all applicable local, state, and federal laws and requirements, including requirements to use best available control technology, as defined in Section 40405 of the Health and Safety Code.
(e)Comply with Section 39741.1 of the Health and Safety Code and the regulations adopted by the state board pursuant to that section.
(f)Where avoidance of increased air pollution on site from such a project is not feasible, invest in mitigation in the community location adjacent to where the carbon dioxide capture, removal, or sequestration project is located which would be exposed to or impacted by any potential increased air pollution if mitigation measures are required pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000)) for the project to address significant impacts in local air pollution.
71465.(a)Pipelines shall only be utilized to transport carbon dioxide to or from a carbon dioxide capture, removal, or sequestration project once the federal Pipeline and Hazardous Materials Safety Administration has concluded the rulemaking (RIN 2137-AF60) regarding minimum federal safety standards for transportation of carbon dioxide by pipeline (Parts 190 to 199, inclusive, of Title 49 of the Code of Federal Regulations) and the carbon dioxide capture, removal, or sequestration project operator demonstrates that the pipeline meets those standards. This section shall not apply to carbon captured at a permitted facility and transported within that facility or property.
(b)The Natural Resources Agency, in consultation with the Public Utilities Commission, shall, no later than February 1, 2023, provide a proposal to the Legislature to establish a state framework and standards for the design, operation, siting, and maintenance of intrastate pipelines carrying carbon dioxide fluids of varying composition and phase to minimize the risk posed to public and environmental health and safety. The recommended framework shall be designed to minimize risk to public health and environmental health and safety, to the extent feasible.
SEC. 6.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 7.This act shall become operative only if Assembly Bill 1279 of the 202122 Regular Session is enacted and becomes operative on or before January 1, 2023.
SECTION 1.The Legislature finds and declares all of the following:(a)Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of extreme heat, wildfires, drought, species loss, and other disruptions to the states environment and ecosystems.(b)Leading climate experts, including the United Nations Intergovernmental Panel on Climate Change, have found that deep reductions in carbon dioxide and other greenhouse gases in the coming decades will be necessary to prevent catastrophic global warming in excess of 1.5 and 2 degrees Celsius.(c)Carbon already emitted into the atmosphere and carbon emitted through natural and industrial processes can be captured and injected into underground geological formations through a process known as geologic carbon sequestration. Geologic carbon sequestration may be a vital strategy to achieve the carbon reductions needed to prevent catastrophic global warming.(d)California has several geologic formations that are known to have the potential for large-scale carbon storage. Carbon storage in these geologic formations could play an important role in achieving the states greenhouse gas emissions and carbon neutrality targets.(e)Several other promising carbon storage mechanisms exist, including mineralization, a process that can permanently store carbon dioxide in rocks.(f)Carbon capture and storage projects would provide jobs for Californias skilled and trained workforce consistent with the states commitment to an equitable and just clean energy transition. Carbon capture projects are skilled-labor intensive and represent a viable pathway for new skilled and trained jobs in the green economy.(g)Senate Bill 596 (Chapter 246 of the Statutes of 2021) identified Californias cement industry as a top priority for the development of carbon-neutral industrial operations, including by setting a goal of net-zero greenhouse gas emissions associated with cement used within the state by 2045.(h)The California cement industry faces a significant economic risk due to high environmental standards and economic costs associated with making cement in the state. Unless the state adequately remedies this risk to the domestic cement industry in meeting its high environmental goals, cement production could move out of state at high economic and environmental cost. This risk will increase as the industry faces higher compliance costs and as the industry makes significant investments to achieve the states goal of achieving carbon neutrality by 2045. The state needs to consider mechanisms to minimize the risk of economic and emissions leakage and ensure that investments in decarbonization measures, regardless of whether those investments are made by the state or by the industry, do not result in increased imports of cement from outside of the state with higher lifecycle carbon intensity. (i)As California pushes to reduce greenhouse gas emissions associated with domestic cement production, the state needs to also focus on reduction of copollutants, including sulfur dioxide, nitrogen oxide, particulate matter, and carbon monoxide emissions, associated with cement production that can impact the health of local communities.(j)It is in the states interest to evaluate the safety, efficacy, and benefits of geologic carbon sequestration for cement production as part of a public-private partnership, to establish clear legal standards for geologic sequestration of carbon captured from cement production, and to enable the deployment of geologic sequestration of carbon captured from cement production by 2025 in order to prevent catastrophic global warming.(k)It is the intent of the Legislature that California establish pathways for safe and effective geologic carbon sequestration that promote workforce and local community benefits and advance the states leadership in the global effort to reduce greenhouse gas emissions and mitigate climate change.SEC. 2.Part 3.9 (commencing with Section 71280) is added to Division 34 of the Public Resources Code, to read:3.9.Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act71280.This part shall be known, and may be cited, as the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.71281.For purposes of this part, the following terms have the following meanings:(a)Carbon dioxide stream means carbon dioxide captured and transported for the purpose of geologic carbon sequestration.(b)Commission means the State Energy Resources Conservation and Development Commission.(c)Geologic carbon sequestration means the capture, transportation, and permanent underground storage of carbon dioxide streams in a geologic storage complex.(d)Geologic carbon sequestration pilot project means a project for geologic carbon sequestration that is approved by the state board pursuant to the requirements of this part.(e)Geologic carbon sequestration pilot project operator means a person owning or operating a geologic carbon sequestration pilot project approved by the state board pursuant to this part.(f)Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.(g)Geologic storage reservoir means a portion of a sedimentary geologic stratum or formation containing void spaces, including depleted oil and gas reservoirs and saline formations, that is suitable for injection and permanent storage of carbon dioxide in the state.(h)Initiative means the Geologic Carbon Sequestration Demonstration Initiative developed by the state board pursuant to Section 71283.(i)Secretary means the Secretary of the Natural Resources Agency.(j)State board means the State Air Resources Board.71283.(a)The state board shall develop and administer the Geologic Carbon Sequestration Demonstration Initiative to do all of the following:(1)Evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production.(2)Enhance air quality and reduce greenhouse gas emissions.(3)Promote workforce and community benefits.(b)The state board, in consultation with the commission and the State Water Resources Control Board, shall award funding under the initiative to at least one, and no more than five, geologic carbon sequestration pilot projects that each do all of the following:(1)Demonstrate the feasibility of one or more geologic carbon sequestration strategies by facilitating the capture, removal, and geologic sequestration of carbon dioxide generated at one or more existing cement production facilities in the state to one or more geologic storage complexes.(2)Achieve the capability to annually sequester at least 1,000,000 metric tons of carbon dioxide equivalent in greenhouse gas emissions or as close to this requirement as possible. (3)Achieve the capability to permanently sequester carbon dioxide in a geologic storage complex at a total capacity of at least 50,000,000 metric tons of carbon dioxide equivalent or as close to this requirement as possible. (4)Incorporate strategies to reduce copollutant emissions from a cement production facility participating in the project to ensure that the facility does not result in any increased emissions of criteria air pollutant or toxic air contaminant in the community.(5)Incorporate strategies to ensure the geologic carbon sequestration at a geologic storage complex does not increase local water pollution or air pollution and to limit air pollution from construction- and transportation-related impacts from the project in community or communities adjacent to geologic storage complexes used for the project.(6)Incorporate all of the following:(A)Strategies to minimize the risk of seismic impacts to, and from, the project, including the risk of gas leakage due to seismic activity.(B)Commitments to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(C)Commitments to conduct monitoring of sequestered carbon dioxide, including movement within the geologic storage complex, and for leaks from the complex or associated wellheads, for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(7)Include monitoring and reporting schedules to state regulatory agencies for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(8)Promote workforce development and create employment opportunities in the community or communities in which the project is located.(9)Advance the states net-zero cement industry goal and the strategy developed by the state board pursuant to Section 38561.2 of the Health and Safety Code.(10)Include an infrastructure path for construction of, or reuse of existing, pipelines to connect geologic storage complexes to carbon dioxide sources. A geologic carbon sequestration pilot project shall not receive carbon dioxide streams from a pipeline until the federal Pipeline and Hazardous Materials Safety Administration has concluded the rulemaking (RIN 2137-AF60) regarding minimum federal safety standards for transportation of carbon dioxide by pipeline (Part 192 (commencing with Section 192.1) of Title 49 of the Code of Federal Regulations) and the geologic carbon sequestration pilot project operator demonstrates that the pipeline meets those standards.(c)In awarding funds pursuant to this part, the state board shall prioritize geologic carbon sequestration pilot projects that do all of the following:(1)Are likely to generate the greatest net reduction in greenhouse gas emissions.(2)Represent appropriate land use and minimize potential environmental, noise, air quality, traffic, and other construction- and operation-related impacts to the community or communities in which the project is located.(3)Promote the goals of the environmental justice element of any applicable general plan pursuant to subdivision (h) of Section 65302 of the Government Code.(4)Provide benefits to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.(5)Leverage private funding sources and public-private partnership structures alongside state funding sources.(6)Utilize geologic storage reservoirs that have the least potential for leakage according to the California Geological Survey.(d)A geologic carbon sequestration pilot project funded pursuant to this part is a public works project for which prevailing wages shall be paid in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.(e)(1)The state board shall require, as a condition of funding pursuant to this part, that a recipient of funding provide an enforceable commitment to the state board that, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, all contractors and subcontractors at every tier will use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code, to perform all project work that falls within an apprenticeable occupation in the building and construction trades.(2)This subdivision shall not apply if the work is covered by a project labor agreement that requires all contractors and subcontractors at every tier to use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code.(f)No geologic carbon sequestration project that is associated with, incorporates, or connects to enhanced oil recovery or fossil fuel production shall qualify as a geologic carbon sequestration pilot project or be eligible for or receive funding under this part.(g)In awarding funds pursuant to this part, the state board may employ methods, including, but not limited to, grants, direct loans and debt instruments, loan guarantees and credit enhancements, and other forms of financial assistance. However, in awarding grants pursuant to this part, the state board may only employ funds that originate from nonstate sources, including, but not limited to, federal or private sources.(h)Any carbon emissions avoided as a result of a pilot project shall be in addition to, and therefore not calculated toward, the emissions reduction requirement established pursuant to Section 38566 of the Health and Safety Code.(i)(1)The state board shall annually publish on its internet website information regarding the performance of each of the pilot projects receiving financial assistance pursuant to this section. The information shall reflect data from the previous year of operation and shall include at least the following:(A)Location.(B)Carbon capture technology utilized.(C)Carbon capture efficiency in each of the following contexts:(i)Efficiency of carbon removal of the emission source at which the capture technology has been installed.(ii)Efficiency of carbon removal for the entire facility.(iii)Efficiency of the carbon removal including carbon emissions associated with the energy required to operate the capture technology.(D)Energy source.(E)Energy use.(F)Percentage of operating time compared to designed operating time.(G)Employment.(H)Cost-effectiveness relative to existing greenhouse gas emissions reductions measures.(2)An entity that submits data to the state board pursuant to this subdivision and consistent with the procedures of the state board relating to confidential information pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and in accordance with Subchapter 4 (commencing with Section 91000) of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations, may designate written materials such as trade secrets, or other information which is exempt from disclosure, as confidential.71285.(a)Before awarding funds pursuant to this part, the state board, in consultation with other state entities as needed, shall develop both of the following:(1)Guidelines for the implementation of the initiative and development of geologic carbon sequestration pilot projects consistent with Section 71283, and including, but not limited to, best practices and agreement templates for all of the following:(A)Well site, reservoir, and project site health and safety standards.(B)Technology development and transfer for future deployment of geologic carbon sequestration in the state.(C)Community benefits associated with geologic carbon sequestration, including workforce and economic development, housing and community services, and access to federal, state, and other funding sources.(D)Skilled and trained workforce, antidiscrimination, collective bargaining, dispute resolution, and other project labor standards.(2)Criteria for selection of eligible carbon sequestration pilot projects, including, but not limited to, the project eligibility and prioritization criteria listed in subdivisions (b) and (c) of Section 71283.(b)(1)(A)Before adopting the guidelines and the selection criteria described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public on the draft guidelines and selection criteria, and shall consider all comments received in adopting the guidelines and selection criteria.(B)The state board shall hold at least one public workshop in each of the following areas:(i)Northern California.(ii)The central valley.(iii)Southern California.(C)The state board shall publish the draft guidelines and selection criteria on its internet website at least 30 days before each public meeting.(2)The state board shall conduct outreach to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, to encourage residents of these communities to participate in the public workshops and submit comments pursuant to this subdivision.(3)The state board, in adopting the guidelines and selection criteria described in subdivision (a), shall consider all comments received during the public workshops held pursuant to this subdivision.(c)(1)Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the state boards development and adoption of the guidelines and selection criteria pursuant to this section.(2)Guidelines and selection criteria developed by the state board pursuant to this section shall not abridge, alter, or amend any regulations or protocols issued by the state board relating to participation of a geologic carbon sequestration pilot project in any program administered by the state board.(3)Guidelines and selection criteria developed by the state board pursuant to this section shall not promote or facilitate enhanced oil recovery or fossil fuel production and shall ensure that geologic carbon sequestration pilot projects do not promote or facilitate enhanced oil recovery or fossil fuel production.(d)Upon the adoption of the guidelines and selection criteria pursuant to this section, the state board shall publish the final guidelines and selection criteria on its internet website.71287.The state board shall, upon appropriation by the Legislature, fund research regarding geologic carbon sequestration technology piloted through the initiative.71291.(a)On or before July 1, 2024, the secretary shall present a written proposal to the Legislature outlining legal standards governing agreements regarding two or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project. The proposal shall include recommended requirements for the submission of these agreements to, and the review, approval, or denial of these agreements by, an authorized state agency, and shall include, but not be limited to, all of the following: (1)Identification of the appropriate state agency for submission, review, and approval or denial of the agreements, including any legal authorization or delegation necessary.(2)A requirement that agreement proponents own title to at least an undivided three-fourths of the total interests subject to the proposed agreement.(3)Standards to determine fair and reasonable compensation for owners.(4)A requirement to make a good faith offer of compensation prior to submission of an agreement.(5)Standards for the provision of surface site access, to the extent reasonably necessary for postinjection monitoring.(6)Standards for the allocation of liability related to the geologic storage reservoir, and associated injection wells, including, but not limited to, standards regarding the liability of a surface landowner who has sold or leased all interests in the geologic storage reservoir to a geologic carbon sequestration operator.(7)Standards for imposing sufficient financial responsibility requirements on geologic carbon sequestration operators no less stringent than the requirements set forth in Section 146.85 of Title 40 of the Code of Federal Regulations, including, but not limited to, the short-term costs of corrective actions, the cost of any liability associated with damage to drinking water supplies or seismic activity triggered by the geologic storage reservoir, and long-term costs associated with well plugging, ongoing site care and monitoring, and site closure of the geologic storage reservoir. Such requirements shall require maintenance of financial responsibility instruments for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(8)Standards for allocating royalty payments associated with the leasing of a geologic storage reservoir.(9)Any other requirements necessary to comply with state or federal legal or constitutional standards.(b)In developing the written proposal required pursuant to subdivision (a), the secretary shall consult with appropriate state agencies, including, but not limited to, the Attorney General, the Geologic Energy Management Division, the California Geological Survey, the State Lands Commission, the state board, and the commission, as well as industry and legal experts, regarding applicable legal standards. The secretary shall also review other states legal standards applicable to geologic carbon sequestration projects.(c)Before submitting to the Legislature the written proposal required pursuant to subdivision (a), the secretary shall provide no less than 90 days for public comment on the proposal. The secretary shall consider all comments received during this public comment period in developing the proposal.71293.(a)Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.(b)A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.(c)(1)An instrument that transfers the rights to a geologic storage reservoir under this section shall include all of the following:(A)A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.(B)A general description of the potential location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.(C)An allocation of legal liability from the overlying surface estate owner to the geologic storage reservoir owner. Subsequent to the development of standards in accordance with paragraph (6) of subdivision (a) of Section 71291, such allocation shall be consistent with those standards.(2)The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.(d)Not less than 60 days before commencing development of a geologic carbon sequestration pilot project approved by the state board pursuant to this part, the geologic carbon sequestration pilot project operator shall provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project.(e)Each geologic carbon sequestration pilot project operator shall record a notation on the deed to the property, or deeds to the properties, where the geologic storage complex or geologic storage reservoir is located, or any other document that is normally examined during a title search, that will in perpetuity notify a potential purchaser of the property, or properties, that the property has, or properties have, been used to sequester carbon dioxide, the volume of carbon dioxide sequestered, the injection zone or zones into which the carbon dioxide was injected, and the dates during which injection occurred.(f)Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease before the effective date of this part.(g)This section is enacted for the limited purpose of facilitating the development of up to five geologic carbon sequestration pilot projects approved by the state board pursuant to this part, and only applies to property that is part of a geologic carbon sequestration pilot project.71295.(a)On or before January 1, 2025, the state board shall adopt regulations creating a single unified application for submission by developers or sponsors of geologic carbon sequestration pilot projects. The single unified application described in this subdivision shall solicit from applicants, and direct to relevant agencies, all information needed to obtain all approvals from state and local agencies necessary to approve a geologic carbon sequestration pilot project, as applicable, including, but not limited to: (1)The state board and local air quality management districts and air pollution control districts, for air quality and greenhouse gas matters.(2)The State Water Resources Control Board and regional water quality control boards, for underground injection and water quality matters.(3)The State Fire Marshal, for pipeline safety matters.(4)The Public Utilities Commission, for pipeline permitting matters.(5)The State Lands Commission and local zoning, land use, and planning agencies, for land use planning and leasing of publicly owned land.(6)Local zoning, land use, and planning agencies, for local land use and pore space ownership matters.(7)The State Geologist, for seismic activity monitoring and reporting matters.(b)The state board shall consult with each of the agencies described in subdivision (a), and any other state or local agencies identified by the state board, to develop the single unified application described in subdivision (a).(c)In developing the single unified application described in subdivision (a), the state board shall, where possible, do both of the following:(1)Consult with relevant federal agencies and local governments regarding the process.(2)Incorporate relevant federal permits into the process.(d)The state board shall oversee the single unified application described in subdivision (a) to minimize application burdens, but shall not abridge any direct contact between applicants and permitting agencies. The state board shall adopt regulations as necessary to implement the single unified application and ensure a streamlined application process for applicants.(e)The single unified application developed by the state board pursuant to subdivision (a) shall not eliminate, abridge, or reduce the review or issuance of the individual permits included in the application. As part of the single unified application, the state board shall, where possible, streamline duplicative administrative requirements or permit application questions.(f)The single unified application developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000)), or its implementing regulations, with respect to the review or approval of a geologic carbon sequestration pilot project.(g)The single unified application developed by the state board pursuant to subdivision (a) shall include a streamlined process for all participating agencies to assess and collect individual permit application fees, as applicable.71296.On or before January 1, 2025, the State Geologist shall adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state. The State Geologist may require changes in operations of a geologic carbon sequestration pilot project to ensure safety, including, but not limited to, a mandatory pause in operation, if monitoring and reporting detects increased seismicity.71297.(a)(1)A geologic carbon sequestration pilot project operator shall demonstrate and maintain financial responsibility sufficient to cover the short- and long-term costs associated with corrective action, well plugging, site care and site closure in accordance with the requirements set forth in Section 146.93 of Title 40 of the Code of Federal Regulations, emergency and remedial response, liability associated with seismic activity triggered by the reservoir, and protection of drinking water quality through financial responsibility instruments such as trust funds, surety bonds, letters of credit, insurance, self-insurance, or escrow accounts.(2)The requirement to comply with paragraph (1) shall last for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.(b)The state board shall, no later than January 1, 2025, and consistent with this section, adopt regulations for financial responsibility in accordance with this section that are no less stringent than those contained in Section 146.85 of Title 40 of the Code of Federal Regulations, as that section existed on January 1, 2023.SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution. REVISIONS: HeadingLine 3.The Legislature finds and declares all of the following:
(a)Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of extreme heat, wildfires, drought, species loss, and other disruptions to the states environment and ecosystems.
(b)Leading climate experts, including the United Nations Intergovernmental Panel on Climate Change, have found that deep reductions in carbon dioxide and other greenhouse gases in the coming decades will be necessary to prevent catastrophic global warming in excess of 1.5 and 2 degrees Celsius.
(c)Carbon already emitted into the atmosphere and carbon emitted through natural and industrial processes can be captured and injected into underground geological formations through a process known as geologic carbon sequestration. Geologic carbon sequestration may be a vital strategy to achieve the carbon reductions needed to prevent catastrophic global warming.
(d)California has several geologic formations that are known to have the potential for large-scale carbon storage. Carbon storage in these geologic formations could play an important role in achieving the states greenhouse gas emissions and carbon neutrality targets.
(e)Several other promising carbon storage mechanisms exist, including mineralization, a process that can permanently store carbon dioxide in rocks.
(f)Carbon capture and storage projects would provide jobs for Californias skilled and trained workforce consistent with the states commitment to an equitable and just clean energy transition. Carbon capture projects are skilled-labor intensive and represent a viable pathway for new skilled and trained jobs in the green economy.
(g)Senate Bill 596 (Chapter 246 of the Statutes of 2021) identified Californias cement industry as a top priority for the development of carbon-neutral industrial operations, including by setting a goal of net-zero greenhouse gas emissions associated with cement used within the state by 2045.
(h)The California cement industry faces a significant economic risk due to high environmental standards and economic costs associated with making cement in the state. Unless the state adequately remedies this risk to the domestic cement industry in meeting its high environmental goals, cement production could move out of state at high economic and environmental cost. This risk will increase as the industry faces higher compliance costs and as the industry makes significant investments to achieve the states goal of achieving carbon neutrality by 2045. The state needs to consider mechanisms to minimize the risk of economic and emissions leakage and ensure that investments in decarbonization measures, regardless of whether those investments are made by the state or by the industry, do not result in increased imports of cement from outside of the state with higher lifecycle carbon intensity.
(i)As California pushes to reduce greenhouse gas emissions associated with domestic cement production, the state needs to also focus on reduction of copollutants, including sulfur dioxide, nitrogen oxide, particulate matter, and carbon monoxide emissions, associated with cement production that can impact the health of local communities.
(j)It is in the states interest to evaluate the safety, efficacy, and benefits of geologic carbon sequestration for cement production as part of a public-private partnership, to establish clear legal standards for geologic sequestration of carbon captured from cement production, and to enable the deployment of geologic sequestration of carbon captured from cement production by 2025 in order to prevent catastrophic global warming.
(k)It is the intent of the Legislature that California establish pathways for safe and effective geologic carbon sequestration that promote workforce and local community benefits and advance the states leadership in the global effort to reduce greenhouse gas emissions and mitigate climate change.
SEC. 2.Part 3.9 (commencing with Section 71280) is added to Division 34 of the Public Resources Code, to read:3.9.Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act71280.This part shall be known, and may be cited, as the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.
71281.For purposes of this part, the following terms have the following meanings:
(a)Carbon dioxide stream means carbon dioxide captured and transported for the purpose of geologic carbon sequestration.
(b)Commission means the State Energy Resources Conservation and Development Commission.
(c)Geologic carbon sequestration means the capture, transportation, and permanent underground storage of carbon dioxide streams in a geologic storage complex.
(d)Geologic carbon sequestration pilot project means a project for geologic carbon sequestration that is approved by the state board pursuant to the requirements of this part.
(e)Geologic carbon sequestration pilot project operator means a person owning or operating a geologic carbon sequestration pilot project approved by the state board pursuant to this part.
(f)Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.
(g)Geologic storage reservoir means a portion of a sedimentary geologic stratum or formation containing void spaces, including depleted oil and gas reservoirs and saline formations, that is suitable for injection and permanent storage of carbon dioxide in the state.
(h)Initiative means the Geologic Carbon Sequestration Demonstration Initiative developed by the state board pursuant to Section 71283.
(i)Permanent means that sequestered carbon dioxide will remain within a geologic storage complex for at least 100 years.(j)(i)Secretary means the Secretary of the Natural Resources Agency.
(k)(j)State board means the State Air Resources Board.
71283.(a)The state board shall develop and administer the Geologic Carbon Sequestration Demonstration Initiative to do all of the following:
(1)Evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production.
(2)Enhance air quality and reduce greenhouse gas emissions.
(3)Promote workforce and community benefits.
(b)The state board, in consultation with the commission and the State Water Resources Control Board, shall award funding under the initiative to at least one, and no more than five, geologic carbon sequestration pilot projects that each do all of the following:
(1)Demonstrate the feasibility of one or more geologic carbon sequestration strategies by facilitating the capture, removal, and geologic sequestration of carbon dioxide generated at one or more existing cement production facilities in the state to one or more geologic storage complexes.
(2)Achieve the capability to annually sequester at least 1,000,000 metric tons of carbon dioxide equivalent in greenhouse gas emissions or as close to this requirement as possible.
(3)Achieve the capability to permanently sequester carbon dioxide in a geologic storage complex at a total capacity of at least 50,000,000 metric tons of carbon dioxide equivalent or as close to this requirement as possible.
(4)Incorporate strategies to reduce copollutant emissions from a cement production facility participating in the project to ensure that the facility does not result in any increased emissions of criteria air pollutant or toxic air contaminant in the community.
(5)Incorporate strategies to ensure the geologic carbon sequestration at a geologic storage complex does not increase local water pollution or air pollution and to limit air pollution from construction- and transportation-related impacts from the project in community or communities adjacent to geologic storage complexes used for the project.
(6)Incorporate all of the following:
(A)Strategies to minimize the risk of seismic impacts to, and from, the project, including the risk of gas leakage due to seismic activity.
(B)Commitments to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide in perpetuity. for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.
(C)Commitments to conduct monitoring in perpetuity of sequestered carbon dioxide, including movement within the geologic storage complex, and for leaks from the complex or associated wellheads. wellheads, for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.
(7)Include monitoring and reporting schedules to state regulatory agencies in perpetuity. for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.
(8)Promote workforce development and create employment opportunities in the community or communities in which the project is located.
(9)Advance the states net-zero cement industry goal and the strategy developed by the state board pursuant to Section 38561.2 of the Health and Safety Code.
(10)Include an infrastructure path for construction of, or reuse of existing, pipelines to connect geologic storage complexes to carbon dioxide sources. A geologic carbon sequestration pilot project shall not receive carbon dioxide streams from a pipeline until the federal Pipeline and Hazardous Materials Safety Administration has concluded the rulemaking (RIN 2137-AF60) regarding minimum federal safety standards for transportation of carbon dioxide by pipeline (Part 192 (commencing with Section 192.1) of Title 49 of the Code of Federal Regulations) and the geologic carbon sequestration pilot project operator demonstrates that the pipeline meets those standards.
(11)Begin construction before January 1, 2026.(c)In awarding funds pursuant to this part, the state board shall prioritize geologic carbon sequestration pilot projects that do all of the following:
(1)Are likely to generate the greatest net reduction in greenhouse gas emissions.
(2)Represent appropriate land use and minimize potential environmental, noise, air quality, traffic, and other construction- and operation-related impacts to the community or communities in which the project is located.
(3)Promote the goals of the environmental justice element of any applicable general plan pursuant to subdivision (h) of Section 65302 of the Government Code.
(4)Provide benefits to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.
(5)Leverage private funding sources and public-private partnership structures alongside state funding sources.
(6)Utilize geologic storage reservoirs that have the least potential for leakage according to the California Geological Survey.
(d)A geologic carbon sequestration pilot project funded pursuant to this part is a public works project for which prevailing wages shall be paid in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(e)(1)The state board shall require, as a condition of funding pursuant to this part, that a recipient of funding provide an enforceable commitment to the state board that, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, all contractors and subcontractors at every tier will use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code, to perform all project work that falls within an apprenticeable occupation in the building and construction trades.
(2)This subdivision shall not apply if the work is covered by a project labor agreement that requires all contractors and subcontractors at every tier to use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code.
(f)No geologic carbon sequestration project that is associated with, incorporates, or connects to enhanced oil recovery or fossil fuel production shall qualify as a geologic carbon sequestration pilot project or be eligible for or receive funding under this part.
(g)In awarding funds pursuant to this part, the state board may employ methods, including, but not limited to, grants, direct loans and debt instruments, loan guarantees and credit enhancements, and other forms of financial assistance. However, in awarding funds grants pursuant to this part, the state board may not only employ grants. funds that originate from nonstate sources, including, but not limited to, federal or private sources.
(h)Any carbon emissions avoided as a result of a pilot project shall be in addition to, and therefore not calculated toward, the emissions reduction requirement established pursuant to Section 38566 of the Health and Safety Code.(i)(1)The state board shall annually publish on its internet website information regarding the performance of each of the pilot projects receiving financial assistance pursuant to this section. The information shall reflect data from the previous year of operation and shall include at least the following:(A)Location.
(B)Carbon capture technology utilized.
(C)Carbon capture efficiency in each of the following contexts:
(i)Efficiency of carbon removal of the emission source at which the capture technology has been installed.
(ii)Efficiency of carbon removal for the entire facility.
(iii)Efficiency of the carbon removal including carbon emissions associated with the energy required to operate the capture technology.
(D)Energy source.
(E)Energy use.
(F)Percentage of operating time compared to designed operating time.
(G)Employment.
(H)Cost-effectiveness relative to existing greenhouse gas emissions reductions measures.
(2)An entity that submits data to the state board pursuant to this subdivision and consistent with the procedures of the state board relating to confidential information pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and in accordance with Subchapter 4 (commencing with Section 91000) of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations, may designate written materials such as trade secrets, or other information which is exempt from disclosure, as confidential.
71285.(a)Before awarding funds pursuant to this part, the state board, in consultation with other state entities as needed, shall develop both of the following:
(1)Guidelines for the implementation of the initiative and development of geologic carbon sequestration pilot projects consistent with Section 71283, and including, but not limited to, best practices and agreement templates for all of the following:
(A)Well site, reservoir, and project site health and safety standards.
(B)Technology development and transfer for future deployment of geologic carbon sequestration in the state.
(C)Community benefits associated with geologic carbon sequestration, including workforce and economic development, housing and community services, and access to federal, state, and other funding sources.
(D)Skilled and trained workforce, antidiscrimination, collective bargaining, dispute resolution, and other project labor standards.
(2)Criteria for selection of eligible carbon sequestration pilot projects, including, but not limited to, the project eligibility and prioritization criteria listed in subdivisions (b) and (c) of Section 71283.
(b)(1)(A)Before adopting the guidelines and the selection criteria described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public on the draft guidelines and selection criteria, and shall consider all comments received in adopting the guidelines and selection criteria.
(B)The state board shall hold at least one public workshop in each of the following areas:
(i)Northern California.
(ii)The central valley.
(iii)Southern California.
(C)The state board shall publish the draft guidelines and selection criteria on its internet website at least 30 days before each public meeting.
(2)The state board shall conduct outreach to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, to encourage residents of these communities to participate in the public workshops and submit comments pursuant to this subdivision.
(3)The state board, in adopting the guidelines and selection criteria described in subdivision (a), shall consider all comments received during the public workshops held pursuant to this subdivision.
(c)(1)Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the state boards development and adoption of the guidelines and selection criteria pursuant to this section.
(2)Guidelines and selection criteria developed by the state board pursuant to this section shall not abridge, alter, or amend any regulations or protocols issued by the state board relating to participation of a geologic carbon sequestration pilot project in any program administered by the state board.
(3)Guidelines and selection criteria developed by the state board pursuant to this section shall not promote or facilitate enhanced oil recovery or fossil fuel production and shall ensure that geologic carbon sequestration pilot projects do not promote or facilitate enhanced oil recovery or fossil fuel production.
(d)Upon the adoption of the guidelines and selection criteria pursuant to this section, the state board shall publish the final guidelines and selection criteria on its internet website.
71287.The state board shall, upon appropriation by the Legislature, fund research regarding geologic carbon sequestration technology piloted through the initiative.
71291.(a)On or before July 1, 2024, the secretary shall present a written proposal to the Legislature outlining legal standards governing agreements regarding two or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project. The proposal shall include recommended requirements for the submission of these agreements to, and the review, approval, or denial of these agreements by, an authorized state agency, and shall include, but not be limited to, all of the following:
(1)Identification of the appropriate state agency for submission, review, and approval or denial of the agreements, including any legal authorization or delegation necessary.
(2)A requirement that agreement proponents own title to at least an undivided three-fourths of the total interests subject to the proposed agreement.
(3)Standards to determine fair and reasonable compensation for owners.
(4)A requirement to make a good faith offer of compensation prior to submission of an agreement.
(5)Standards for the provision of surface site access, to the extent reasonably necessary for postinjection monitoring.
(6)Standards for the allocation of liability related to the geologic storage reservoir, and associated injection wells, including, but not limited to, standards regarding the liability of a surface landowner who has sold or leased all interests in the geologic storage reservoir to a geologic carbon sequestration operator.
(7)Standards for imposing sufficient financial responsibility requirements in perpetuity on geologic carbon sequestration operators, operators no less stringent than the requirements set forth in Section 146.85 of Title 40 of the Code of Federal Regulations, including, but not limited to, the short-term costs of corrective actions, the cost of any liability associated with damage to drinking water supplies or seismic activity triggered by the geologic storage reservoir, and long-term costs associated with well plugging, ongoing site care and monitoring, and site closure of the geologic storage reservoir in perpetuity. reservoir. Such requirements shall require maintenance of financial responsibility instruments for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.
(8)Standards for allocating royalty payments associated with the leasing of a geologic storage reservoir.
(9)Any other requirements necessary to comply with state or federal legal or constitutional standards.
(b)In developing the written proposal required pursuant to subdivision (a), the secretary shall consult with appropriate state agencies, including, but not limited to, the Attorney General, the Geologic Energy Management Division, the California Geological Survey, the State Lands Commission, the state board, and the commission, as well as industry and legal experts, regarding applicable legal standards. The secretary shall also review other states legal standards applicable to geologic carbon sequestration projects.
(c)Before submitting to the Legislature the written proposal required pursuant to subdivision (a), the secretary shall provide no less than 90 days for public comment on the proposal. The secretary shall consider all comments received during this public comment period in developing the proposal.
71293.(a)Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.
(b)A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.
(c)(1)An instrument that transfers the rights to a geologic storage reservoir under this section shall include all of the following:
(A)A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.
(B)A general description of the potential location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.
(C)An allocation of legal liability from the overlying surface estate owner to the geologic storage reservoir owner owner. Subsequent to the development of standards in accordance with paragraph (6) of subdivision (a) of Section 71291, such allocation shall be consistent with the standards developed in accordance with paragraph (6) of subdivision (a) of Section 71291. those standards.
(2)The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.
(d)Not less than 60 days before commencing development of a geologic carbon sequestration pilot project approved by the state board pursuant to this part, the geologic carbon sequestration pilot project operator shall provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project.
(e)Each geologic carbon sequestration pilot project operator shall record a notation on the deed to the property, or deeds to the properties, where the geologic storage complex or geologic storage reservoir is located, or any other document that is normally examined during a title search, that will in perpetuity notify a potential purchaser of the property, or properties, that the property has, or properties have, been used to sequester carbon dioxide, the volume of carbon dioxide sequestered, the injection zone or zones into which the carbon dioxide was injected, and the dates during which injection occurred.
(f)Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease before the effective date of this part.
(g)This section is enacted for the limited purpose of facilitating the development of up to five geologic carbon sequestration pilot projects approved by the state board pursuant to this part, and only applies to property that is part of a geologic carbon sequestration pilot project.
71295.(a)On or before January 1, 2025, the state board shall adopt regulations creating a single unified application for submission by developers or sponsors of geologic carbon sequestration pilot projects. The single unified application described in this subdivision shall solicit from applicants, and direct to relevant agencies, all information needed to obtain all approvals from state and local agencies necessary to approve a geologic carbon sequestration pilot project, as applicable, including, but not limited to:
(1)The state board and local air quality management districts and air pollution control districts, for air quality and greenhouse gas matters.
(2)The State Water Resources Control Board and regional water quality control boards, for underground injection and water quality matters.
(3)The State Fire Marshal, for pipeline safety matters.
(4)The Public Utilities Commission, for pipeline permitting matters.
(5)The State Lands Commission and local zoning, land use, and planning agencies, for land use planning and leasing of publicly owned land.
(6)Local zoning, land use, and planning agencies, for local land use and pore space ownership matters.
(7)The State Geologist, for seismic activity monitoring and reporting matters.
(b)The state board shall consult with each of the agencies described in subdivision (a), and any other state or local agencies identified by the state board, to develop the single unified application described in subdivision (a).
(c)In developing the single unified application described in subdivision (a), the state board shall, where possible, do both of the following:
(1)Consult with relevant federal agencies and local governments regarding the process.
(2)Incorporate relevant federal permits into the process.
(d)The state board shall oversee the single unified application described in subdivision (a) to minimize application burdens, but shall not abridge any direct contact between applicants and permitting agencies. The state board shall adopt regulations as necessary to implement the single unified application and ensure a streamlined application process for applicants.
(e)The single unified application developed by the state board pursuant to subdivision (a) shall not eliminate, abridge, or reduce the review or issuance of the individual permits included in the application. As part of the single unified application, the state board shall, where possible, streamline duplicative administrative requirements or permit application questions.
(f)The single unified application developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000)), or its implementing regulations, with respect to the review or approval of a geologic carbon sequestration pilot project.
(g)The single unified application developed by the state board pursuant to subdivision (a) shall include a streamlined process for all participating agencies to assess and collect individual permit application fees, as applicable.
71296.On or before January 1, 2025, the State Geologist shall adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state. The State Geologist may require changes in operations of a geologic carbon sequestration pilot project to ensure safety, including, but not limited to, a mandatory pause in operation, if monitoring and reporting detects increased seismicity.
71297.(a)(1)A geologic carbon sequestration pilot project operator shall demonstrate and maintain financial responsibility sufficient, in perpetuity, sufficient to cover the short- and long-term costs associated with corrective action, well plugging, site care and site closure in perpetuity, accordance with the requirements set forth in Section 146.93 of Title 40 of the Code of Federal Regulations, emergency and remedial response, liability associated with seismic activity triggered by the reservoir, and protection of drinking water quality through financial responsibility instruments such as trust funds, surety bonds, letters of credit, insurance, self-insurance, or escrow accounts. The
(2)The requirement to comply with paragraph (1) shall last for a period of time that is sufficiently long enough to demonstrate the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment or to achievement and maintenance of net zero greenhouse gas emissions in California, and that terminates no earlier than the completion of the applicable postinjection site care and site closure plan pursuant to Section 146.93 of Title 40 of the Code of Federal Regulations.
(b)The state board shall, no later than January 1, 2025, and consistent with this section, adopt regulations for financial responsibility in accordance with this section that are no less stringent than those contained in Section 146.85 of Title 40 of the Code of Federal Regulations, as that section existed on January 1, 2023.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The Legislature finds and declares all of the following:
(a)Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of extreme heat, wildfires, drought, species loss, and other disruptions to the states environment and ecosystems.
(b)Leading climate experts, including the United Nations Intergovernmental Panel on Climate Change, have found that deep reductions in carbon dioxide and other greenhouse gases in the coming decades will be necessary to prevent catastrophic global warming in excess of 1.5 and 2 degrees Celsius.
(c)Carbon already emitted into the atmosphere and carbon emitted through natural and industrial processes can be captured and injected into underground geological formations through a process known as geologic carbon sequestration. Geologic carbon sequestration may be a vital strategy to achieve the carbon reductions needed to prevent catastrophic global warming.
(d)California has several geologic formations that are known to have the potential for large-scale carbon storage. Carbon storage in these geologic formations could play an important role in achieving the states target of reducing greenhouse gas emissions to at least 40 percent below 1990 levels by 2030 and the Executive Order No. B-55-18 target of achieving statewide and carbon neutrality by 2045. targets.
(e)Several other promising carbon storage mechanisms exist, including mineralization, a process that can permanently store carbon dioxide in rocks.
(f)Carbon capture and storage projects would provide jobs for Californias skilled and trained workforce consistent with the states commitment to an equitable and just clean energy transition. Carbon capture projects are skilled-labor intensive and represent a viable pathway for new skilled and trained jobs in the green economy.
(g)Senate Bill 596 (Chapter 246 of the Statutes of 2021) identified Californias cement industry as a top priority for the development of carbon-neutral industrial operations, including by setting a goal of net-zero greenhouse gas emissions associated with cement used within the state by 2045.
(h)The California cement industry faces a significant economic risk due to high environmental standards and economic costs associated with making cement in the state. Unless the state adequately remedies this risk to the domestic cement industry in meeting its high environmental goals, cement production could move out of state at high economic and environmental cost. This risk will increase as the industry faces higher compliance costs and as the industry makes significant investments to achieve the states goal of achieving carbon neutrality by 2045. The state needs to consider mechanisms to minimize the risk of economic and emissions leakage and ensure that investments in decarbonization measures, regardless of whether those investments are made by the state or by the industry, do not result in increased imports of cement from outside of the state with higher lifecycle carbon intensity.
(i)As California pushes to reduce greenhouse gas emissions associated with domestic cement production, the state needs to also focus on reduction of copollutants, including sulfur dioxide, nitrogen oxide, particulate matter, and carbon monoxide emissions, associated with cement production that can impact the health of local communities.
(j)It is in the states interest to evaluate the safety, efficacy, and benefits of geologic carbon sequestration for cement production as part of a public-private partnership, to establish clear legal standards for geologic carbon sequestration, sequestration of carbon captured from cement production, and to enable the deployment of geologic carbon sequestration of carbon captured from cement production by 2025 in order to prevent catastrophic global warming.
(k)It is the intent of the Legislature that California establish pathways for safe and effective geologic carbon sequestration that promote workforce and local community benefits and advance the states leadership in the global effort to reduce greenhouse gas emissions and mitigate climate change.
SEC. 2.Part 3.9 (commencing with Section 71280) is added to Division 34 of the Public Resources Code, to read:3.9.Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act71280.This part shall be known, and may be cited, as the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.
71281.For purposes of this part, the following terms have the following meanings:
(a)Carbon dioxide stream means carbon dioxide captured and transported for the purpose of geologic carbon sequestration.
(b)Commission means the State Energy Resources Conservation and Development Commission.
(c)Geologic carbon sequestration means the capture, transportation, and permanent underground storage of carbon dioxide streams in a geologic storage complex.
(d)Geologic carbon sequestration pilot project means a project for geologic carbon sequestration that is approved by the state board pursuant to the requirements of this part.
(e)Geologic carbon sequestration pilot project operator means a person owning or operating a geologic carbon sequestration pilot project approved by the state board pursuant to this part.
(f)Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.
(g)Geologic storage reservoir means a portion of a sedimentary geologic stratum or formation containing void spaces, including depleted oil and gas reservoirs and saline formations, that is suitable for injection and permanent storage of carbon dioxide in the state.
(h)Initiative means the Geologic Carbon Sequestration Demonstration Initiative developed by the state board pursuant to Section 71283.
(i)Permanent means that sequestered carbon dioxide will remain within a geologic storage complex for at least 100 years.
(j)Research hub means the Hub for Research and Innovation in Geologic Carbon Sequestration established pursuant to Section 71287.(k)(j)Secretary means the Secretary of the Natural Resources Agency.
(l)(k)State board means the State Air Resources Board.
71283.(a)The state board shall develop and administer the Geologic Carbon Sequestration Demonstration Initiative to do all of the following:
(1)Evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production.
(2)Enhance air quality and reduce greenhouse gas emissions.
(3)Promote workforce and community benefits.
(b)The state board, in consultation with the commission and the State Water Resources Control Board, shall award funding under the initiative to at least one, and no more than five, geologic carbon sequestration pilot projects that each do all of the following:
(1)Demonstrate the feasibility of one or more geologic carbon sequestration strategies by facilitating the capture, removal, and geologic sequestration of carbon dioxide generated at one or more existing cement production facilities in the state to one or more geologic storage complexes.
(2)Achieve the capability to annually sequester at least 1,000,000 metric tons of carbon dioxide equivalent in greenhouse gas emissions. emissions or as close to this requirement as possible.
(3)Achieve the capability to permanently sequester carbon dioxide in a geologic storage complex at a total capacity of at least 50,000,000 metric tons of carbon dioxide equivalent. equivalent or as close to this requirement as possible.
(4)Incorporate strategies to reduce copollutant emissions from a cement production facility participating in the project to ensure that the facility does not result in any increased emissions of criteria air pollutant or toxic air contaminant in the community.
(5)Incorporate strategies to ensure the geologic carbon sequestration at a geologic storage complex does not increase local water pollution or air pollution and to limit air pollution from construction- and transportation-related impacts from the project in community or communities adjacent to geologic storage complexes used for the project.
(6)Incorporate both all of the following:
(A)Strategies to minimize the risk of seismic impacts to, and from, the project, including the risk of gas leakage due to seismic activity.
(B)Commitments to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide. dioxide in perpetuity.
(C)Commitments to conduct monitoring in perpetuity of sequestered carbon dioxide, including movement within the geologic storage complex, and for leaks from the complex or associated wellheads.
(7)Include monitoring and reporting schedules to state regulatory agencies. agencies in perpetuity.
(8)Promote workforce development and create employment opportunities in the community or communities in which the project is located.
(9)Advance the states net-zero cement industry goal and the strategy developed by the state board pursuant to Section 38561.2 of the Health and Safety Code.
(10)Include an infrastructure path for construction of, or reuse of existing, pipelines to connect geologic storage complexes to carbon dioxide sources. A geologic carbon sequestration pilot project shall not receive carbon dioxide streams from a pipeline until the federal Pipeline and Hazardous Materials Safety Administration has set safety standards for the transport of carbon dioxide by pipeline concluded the rulemaking (RIN 2137-AF60) regarding minimum federal safety standards for transportation of carbon dioxide by pipeline (Part 192 (commencing with Section 192.1) of Title 49 of the Code of Federal Regulations) and the geologic carbon sequestration pilot project operator demonstrates that the pipeline meets those standards.
(11)Begin construction before January 1, 2026.
(c)In awarding funds pursuant to this part, the state board shall prioritize geologic carbon sequestration pilot projects that do all of the following:
(1)Are likely to generate the greatest net reduction in greenhouse gas emissions.
(2)Represent appropriate land use and minimize potential environmental, noise, air quality, traffic, and other construction- and operation-related impacts to the community or communities in which the project is located.
(3)Promote the goals of the environmental justice element of any applicable general plan pursuant to subdivision (h) of Section 65302 of the Government Code.
(4)Provide benefits to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.
(5)Leverage private funding sources and public-private partnership structures alongside state funding sources.
(6)Utilize geologic storage reservoirs that have the least potential for leakage according to the California Geological Survey.
(d)A geologic carbon sequestration pilot project funded pursuant to this part is a public works project for which prevailing wages shall be paid in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(e)(1)The state board shall require, as a condition of funding pursuant to this part, that a recipient of funding provide an enforceable commitment to the state board that, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, all contractors and subcontractors at every tier will use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code, to perform all project work that falls within an apprenticeable occupation in the building and construction trades.
(2)This subdivision shall not apply if the work is covered by a project labor agreement that requires all contractors and subcontractors at every tier to use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code.
(f)No geologic carbon sequestration project that is associated with, incorporates, or connects to enhanced oil recovery or fossil fuel production shall qualify as a geologic carbon sequestration pilot project or be eligible for or receive funding under this part.
(g)In awarding funds pursuant to this part, the state board may employ methods, including, but not limited to, grants, direct loans and debt instruments, loan guarantees and credit enhancements, and other forms of financial assistance. However, in awarding funds pursuant to this part, the state board may not employ grants.
(h)Any carbon emissions avoided as a result of a pilot project shall be in addition to, and therefore not calculated toward, the emissions reduction requirement established pursuant to Section 38566 of the Health and Safety Code.
(i)(1)The state board shall annually publish on its internet website information regarding the performance of each of the pilot projects receiving financial assistance pursuant to this section. The information shall reflect data from the previous year of operation and shall include at least the following:
(A)Location.
(B)Carbon capture technology utilized.
(C)Carbon capture efficiency in each of the following contexts:
(i)Efficiency of carbon removal of the emission source at which the capture technology has been installed.
(ii)Efficiency of carbon removal for the entire facility.
(iii)Efficiency of the carbon removal including carbon emissions associated with the energy required to operate the capture technology.
(D)Energy source.
(E)Energy use.
(F)Percentage of operating time compared to designed operating time.
(G)Employment.
(H)Cost-effectiveness relative to existing greenhouse gas emissions reductions measures.
(2)An entity that submits data to the state board pursuant to this subdivision and consistent with the procedures of the state board relating to confidential information pursuant to the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and in accordance with Subchapter 4 (commencing with Section 91000) of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations, may designate written materials such as trade secrets, or other information which is exempt from disclosure, as confidential.
71285.(a)Before awarding funds pursuant to this part, the state board, in consultation with other state entities as needed, shall develop both of the following:
(1)Guidelines for the implementation of the initiative and development of geologic carbon sequestration pilot projects consistent with Section 71283, and including, but not limited to, best practices and agreement templates for all of the following:
(A)Well site, reservoir, and project site health and safety standards.
(B)Technology development and transfer for future deployment of geologic carbon sequestration in the state.
(C)Community benefits associated with geologic carbon sequestration, including workforce and economic development, housing and community services, and access to federal, state, and other funding sources.
(D)Skilled and trained workforce, antidiscrimination, collective bargaining, dispute resolution, and other project labor standards.
(2)Criteria for selection of eligible carbon sequestration pilot projects, including, but not limited to, the project eligibility and prioritization criteria listed in subdivisions (b) and (c) of Section 71283.
(b)(1)(A)Before adopting the guidelines and the selection criteria described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public on the draft guidelines and selection criteria, and shall consider all comments received in adopting the guidelines and selection criteria.
(B)The state board shall hold at least one public workshop in each of the following areas:
(i)Northern California.
(ii)The central valley.
(iii)Southern California.
(C)The state board shall publish the draft guidelines and selection criteria on its internet website at least 30 days before each public meeting.
(2)The state board shall conduct outreach to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, to encourage residents of these communities to participate in the public workshops and submit comments pursuant to this subdivision.
(3)The state board, in adopting the guidelines and selection criteria described in subdivision (a), shall consider all comments received during the public workshops held pursuant to this subdivision.
(c)(1)Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the state boards development and adoption of the guidelines and selection criteria pursuant to this section.
(2)Guidelines and selection criteria developed by the state board pursuant to this section shall not abridge, alter, or amend any regulations or protocols issued by the state board relating to participation of a geologic carbon sequestration pilot project in any program administered by the state board.
(3)Guidelines and selection criteria developed by the state board pursuant to this section shall not promote or facilitate enhanced oil recovery or fossil fuel production and shall ensure that geologic carbon sequestration pilot projects do not promote or facilitate enhanced oil recovery or fossil fuel production.
(d)Upon the adoption of the guidelines and selection criteria pursuant to this section, the state board shall publish the final guidelines and selection criteria on its internet website.
71287.(a)The state board may establish a Hub for Research and Innovation in Geologic Carbon Sequestration.(b)The state board, in consultation with the commission, may administer the research hub to do all of the following:(1)Study the development of geologic carbon sequestration technology and pilot projects associated with the initiative, and therefore not associated with enhanced oil recovery or fossil fuel production.(2)Coordinate research efforts regarding geologic carbon sequestration technology piloted through the initiative.(3)Evaluate the feasibility and effectiveness of commercial applications of geologic carbon sequestration technology in furtherance of the states greenhouse gas reduction goals.(c)(1)The research hub, if feasible, shall be located at a University of California, California State University, or California Community College campus in physical proximity to one or more of the geologic carbon sequestration pilot projects approved by the state board pursuant to this part.(2)The research hub may include facilities for use by state agencies, University of California, California State University, and California Community College researchers, economic development organizations, and industry members to develop, study, and collaborate on innovative geologic carbon sequestration strategies and technologies for the cement industry that are not associated with enhanced oil recovery or fossil fuel production.71287.The state board shall, upon appropriation by the Legislature, fund research regarding geologic carbon sequestration technology piloted through the initiative.
71291.(a)On or before July 1, 2024, the secretary shall present a written proposal to the Legislature outlining legal standards governing agreements regarding two or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project. The proposal shall include recommended requirements for the submission of these agreements to, and the review, approval, or denial of these agreements by, an authorized state agency, and shall include, but not be limited to, all of the following:
(1)Identification of the appropriate state agency for submission, review, and approval or denial of the agreements, including any legal authorization or delegation necessary.
(2)A requirement that agreement proponents own title to at least an undivided three-fourths of the total interests subject to the proposed agreement.
(3)Standards to determine fair and reasonable compensation for owners.
(4)A requirement to make a good faith offer of compensation prior to submission of an agreement.
(5)Standards for the provision of surface site access, to the extent reasonably necessary for postinjection monitoring.
(6)Standards for the allocation of liability related to the geologic storage reservoir, and associated injection wells, including, but not limited to, standards regarding the liability of a surface landowner who has sold or leased all interests in the geologic storage reservoir to a geologic carbon sequestration operator.
(7)Standards for imposing sufficient financial responsibility requirements in perpetuity on geologic carbon sequestration operators, including, but not limited to, the short-term costs of corrective actions, the cost of any liability associated with damage to drinking water supplies or seismic activity triggered by the geologic storage reservoir, and long-term costs associated with well plugging, ongoing site care and monitoring, and site closure of the geologic storage reservoir in perpetuity.
(8)Standards for allocating royalty payments associated with the leasing of a geologic storage reservoir.
(6)(9)Any other requirements necessary to comply with state or federal legal or constitutional standards.
(b)In developing the written proposal required pursuant to subdivision (a), the secretary shall consult with appropriate state agencies, including, but not limited to, the Attorney General, the Geologic Energy Management Division, the California Geological Survey, the State Lands Commission, the state board, and the commission, as well as industry and legal experts, regarding applicable legal standards. The secretary shall also review other states legal standards applicable to geologic carbon sequestration projects.
(c)Before submitting to the Legislature the written proposal required pursuant to subdivision (a), the secretary shall provide no less than 90 days for public comment on the proposal. The secretary shall consider all comments received during this public comment period in developing the proposal.
71293.(a)Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.
(b)A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.
(c)(1)An instrument that transfers the rights to a geologic storage reservoir under this section shall include both all of the following:
(A)A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.
(B)A general description of the potential location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.
(C)An allocation of legal liability from the overlying surface estate owner to the geologic storage reservoir owner consistent with the standards developed in accordance with paragraph (6) of subdivision (a) of Section 71291.
(2)The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.
(d)Not less than 60 days before commencing development of a geologic carbon sequestration pilot project approved by the state board pursuant to this part, the geologic carbon sequestration pilot project operator shall provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project.
(e)Each geologic carbon sequestration pilot project operator shall record a notation on the deed to the property, or deeds to the properties, where the geologic storage complex or geologic storage reservoir is located, or any other document that is normally examined during a title search, that will in perpetuity notify a potential purchaser of the property, or properties, that the property has, or properties have, been used to sequester carbon dioxide, the volume of carbon dioxide sequestered, the injection zone or zones into which the carbon dioxide was injected, and the dates during which injection occurred.
(f)Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease before the effective date of this part.
(g)This section is enacted for the limited purpose of facilitating the development of up to five geologic carbon sequestration pilot projects approved by the state board pursuant to this part, and only applies to property that is part of a geologic carbon sequestration pilot project.
71295.(a)On or before January 1, 2025, the state board shall adopt regulations creating a single unified application for submission by developers or sponsors of geologic carbon sequestration pilot projects. The single unified application described in this subdivision shall solicit from applicants, and direct to relevant agencies, all information needed to obtain all approvals from state and local agencies necessary to approve a geologic carbon sequestration pilot project, as applicable, including, but not limited to:
(1)The state board and local air quality management districts and air pollution control districts, for air quality and greenhouse gas matters.
(2)The State Water Resources Control Board and regional water quality control boards, for underground injection and water quality matters.
(3)The State Fire Marshal, for pipeline safety matters.
(4)The Public Utilities Commission, for pipeline permitting matters.
(5)The State Lands Commission and local zoning, land use, and planning agencies, for land use planning and leasing of publicly owned land.
(6)Local zoning, land use, and planning agencies, for local land use and pore space ownership matters.
(7)The State Geologist, for seismic activity monitoring and reporting matters.
(b)The state board shall consult with each of the agencies described in subdivision (a), and any other state or local agencies identified by the state board, to develop the single unified application described in subdivision (a).
(c)In developing the single unified application described in subdivision (a), the state board shall, where possible, do both of the following:
(1)Consult with relevant federal agencies and local governments regarding the process.
(2)Incorporate relevant federal permits into the process.
(d)The state board shall oversee the single unified application described in subdivision (a) to minimize application burdens, but shall not abridge any direct contact between applicants and permitting agencies. The state board shall adopt regulations as necessary to implement the single unified application and ensure a streamlined application process for applicants.
(e)The single unified application developed by the state board pursuant to subdivision (a) shall not eliminate, abridge, or reduce the review or issuance of the individual permits included in the application. As part of the single unified application, the state board shall, where possible, streamline duplicative administrative requirements or permit application questions.
(f)The single unified application developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000)), or its implementing regulations, with respect to the review or approval of a geologic carbon sequestration pilot project.
(g)The single unified application developed by the state board pursuant to subdivision (a) shall include a streamlined process for all participating agencies to assess and collect individual permit application fees, as applicable.
71296.On or before January 1, 2025, the State Geologist shall adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state. The State Geologist may require changes in operations of a geologic carbon sequestration pilot project to ensure safety, including, but not limited to, a mandatory pause in operation, if monitoring and reporting detects increased seismicity.
71297.A geologic carbon sequestration pilot project operator shall demonstrate and maintain financial responsibility sufficient sufficient, in perpetuity, to cover the cost of short- and long-term costs associated with corrective action, well plugging, site care and site closure, closure in perpetuity, emergency and remedial response, liability associated with seismic activity triggered by the reservoir, and protection of drinking water quality through financial responsibility instruments such as trust funds, surety bonds, letters of credit, insurance, self-insurance, or escrow accounts. The state board shall, no later than January 1, 2025, and consistent with this section, adopt regulations for financial responsibility in accordance with this section that are no less stringent than those contained in Section 146.85 of Title 40 of the Code of Federal Regulations, as that section existed on January 1, 2023.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The Legislature finds and declares all of the following:
(a)Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of extreme heat, wildfires, drought, species loss, and other disruptions to the states environment and ecosystems.
(b)Leading climate experts, including the United Nations Intergovernmental Panel on Climate Change, have found that deep reductions in carbon dioxide and other greenhouse gases in the coming decades will be necessary to prevent catastrophic global warming in excess of 1.5 and 2 degrees Celsius.
(c)Carbon already emitted into the atmosphere and carbon emitted through natural and industrial processes can be captured and injected into underground geological formations through a process known as geologic carbon sequestration. Geologic carbon sequestration may be a vital strategy to achieve the carbon reductions needed to prevent catastrophic global warming.
(d)California has several geologic formations that are known to have the potential for large-scale carbon storage. Carbon storage in these geologic formations could play an important role in achieving the states target of reducing greenhouse gas emissions to at least 40 percent below 1990 levels by 2030 and the Executive Order No. B-55-18 target of achieving statewide carbon neutrality by 2045.
(e)Several other promising carbon storage mechanisms exist, including mineralization, a process that can permanently store carbon dioxide in rocks.
(f)Carbon capture and storage projects would provide jobs for Californias skilled and trained workforce consistent with the states commitment to an equitable and just clean energy transition. Carbon capture projects are skilled-labor intensive and represent a viable pathway for new skilled and trained jobs in the green economy.
(g)Senate Bill 596 (Chapter 246 of the Statutes of 2021) identified Californias cement industry as a top priority for the development of carbon-neutral industrial operations, including by setting a goal of net-zero greenhouse gas emissions associated with cement used within the state by 2045.
(h)The California cement industry faces a significant economic risk due to high environmental standards and economic costs associated with making cement in the state. Unless the state adequately remedies this risk to the domestic cement industry in meeting its high environmental goals, cement production could move out of state at high economic and environmental cost. This risk will increase as the industry faces higher compliance costs and as the industry makes significant investments to achieve the states goal of achieving carbon neutrality by 2045. The state needs to consider mechanisms to minimize the risk of economic and emissions leakage and ensure that investments in decarbonization measures, regardless of whether those investments are made by the state or by the industry, do not result in increased imports of cement from outside of the state with higher lifecycle carbon intensity.
(i)As California pushes to reduce greenhouse gas emissions associated with domestic cement production, the state needs to also focus on reduction of copollutants, including sulfur dioxide, nitrogen oxide, particulate matter, and carbon monoxide emissions, associated with cement production that can impact the health of local communities.
(j)It is in the states interest to evaluate the safety, efficacy, and benefits of geologic carbon sequestration for cement production as part of a public-private partnership, to establish clear legal standards for geologic carbon sequestration, and to enable the deployment of geologic carbon sequestration by 2025 in order to prevent catastrophic global warming.
(k)It is the intent of the Legislature that California establish pathways for safe and effective geologic carbon sequestration that promote workforce and local community benefits and advance the states leadership in the global effort to reduce greenhouse gas emissions and mitigate climate change.
SEC. 2.Part 3.9 (commencing with Section 71280) is added to Division 34 of the Public Resources Code, to read:3.9.Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act71280.This part shall be known, and may be cited, as the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.
71281.For purposes of this part, the following terms have the following meanings:
(a)Carbon dioxide stream means carbon dioxide captured and transported for the purpose of geologic carbon sequestration.
(b)Commission means the State Energy Resources Conservation and Development Commission.
(c)Geologic carbon sequestration means the capture, transportation, and permanent underground storage of carbon dioxide streams in a geologic storage complex.
(d)Geologic carbon sequestration pilot project means a project for geologic carbon sequestration that is approved by the state board pursuant to the requirements of this part.
(e)Geologic carbon sequestration pilot project operator means a person owning or operating a geologic carbon sequestration project, including a geologic carbon sequestration pilot project approved by the state board pursuant to this part.
(f)Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.
(g)Geologic storage reservoir means a portion of a sedimentary geologic stratum or formation containing void spaces, including depleted oil and gas reservoirs and saline formations, that is suitable for injection and permanent storage of carbon dioxide in the state.
(h)Initiative means the Geologic Carbon Sequestration Demonstration Initiative developed by the state board pursuant to Section 71283.
(i)Permanent means that sequestered carbon dioxide will remain within a geologic storage complex for at least 100 years.
(j)Research hub means the Hub for Research and Innovation in Geologic Carbon Sequestration established pursuant to Section 71287.
(k)Secretary means the Secretary of the Natural Resources Agency.
(k)(l)State board means the State Air Resources Board.
71283.(a)The state board shall develop and administer the Geologic Carbon Sequestration Demonstration Initiative to do all of the following:
(1)Evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production.
(2)Enhance air quality and reduce greenhouse gas emissions.
(3)Promote workforce and community benefits.
(b)The state board, in consultation with the commission and the State Water Resources Control Board, shall award funding under the initiative to at least one, and no more than three, five, geologic carbon sequestration pilot projects that each do all of the following:
(1)Demonstrate the feasibility of one or more geologic carbon sequestration strategies by facilitating the capture, removal, and geologic sequestration of carbon dioxide generated at one or more existing cement production facilities in the state to one or more geologic storage complexes.
(2)Achieve the capability to annually sequester at least 1,000,000 metric tons of carbon dioxide equivalent in greenhouse gas emissions.
(3)Achieve the capability to permanently sequester carbon dioxide in a geologic storage complex at a total capacity of at least 50,000,000 metric tons of carbon dioxide equivalent.
(4)Incorporate strategies to reduce copollutant emissions from a cement production facility participating in the project and limit air pollution, water pollution, and construction- and transportation-related impacts from the project in the community or communities adjacent to any geologic storage complexes used for the project. to ensure that the facility does not result in any increased emissions of criteria air pollutant or toxic air contaminant in the community.
(5)Incorporate strategies to ensure the geologic carbon sequestration at a geologic storage complex does not increase local water pollution or air pollution and to limit air pollution from construction- and transportation-related impacts from the project in community or communities adjacent to geologic storage complexes used for the project.
(5)(6)Incorporate both of the following:
(A)Strategies to minimize the risk of seismic impacts to the project. to, and from, the project, including the risk of gas leakage due to seismic activity.
(B)Commitments to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide.
(6)(7)Include monitoring and reporting schedules to state regulatory agencies.
(7)(8)Promote workforce development and create employment opportunities in the community or communities in which the project is located.
(8)(9)Advance the states net-zero cement industry goal and the strategy developed by the state board pursuant to Section 38561.2 of the Health and Safety Code.
(9)(10)Include an infrastructure path for construction of, or reuse of existing, pipelines to connect geologic storage complexes to carbon dioxide sources. A geologic carbon sequestration pilot project shall not receive carbon dioxide streams from a pipeline until the federal Pipeline and Hazardous Materials Safety Administration has set safety standards for the transport of carbon dioxide by pipeline and the geologic carbon sequestration pilot project operator demonstrates that the pipeline meets those standards.
(10)(11)Begin construction before January 1, 2026.
(c)In awarding funds pursuant to this part, the state board shall prioritize geologic carbon sequestration pilot projects that do all of the following:
(1)Are likely to generate the greatest net reduction in greenhouse gas emissions.
(2)Represent appropriate land use and minimize potential environmental, noise, air quality, traffic, and other construction- and operation-related impacts to the community or communities in which the project is located.
(3)Promote the goals of the environmental justice element of any applicable general plan pursuant to subdivision (h) of Section 65302 of the Government Code.
(4)Provide benefits to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.
(5)Leverage private funding sources and public-private partnership structures alongside state funding sources.
(d)A geologic carbon sequestration pilot project funded pursuant to this part is a public works project for which prevailing wages shall be paid in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(e)(1)The state board shall require, as a condition of funding pursuant to this part, that a recipient of funding provide an enforceable commitment to the state board that, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, all contractors and subcontractors at every tier will use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code, to perform all project work that falls within an apprenticeable occupation in the building and construction trades.
(2)This subdivision shall not apply if the work is covered by a project labor agreement that requires all contractors and subcontractors at every tier to use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code.
(f)The state board shall, no later than January 1, 2026, approve at least one geologic carbon sequestration pilot project eligible for funding under this part.(g)(f)No geologic carbon sequestration project that is associated with, incorporates, or connects to enhanced oil recovery or fossil fuel production shall qualify as a geologic carbon sequestration pilot project or be eligible for or receive funding under this part.
(h)(g)In awarding funds pursuant to this part, the state board may employ methods, including, but not limited to, grants, direct loans and debt instruments, loan guarantees and credit enhancements, and other forms of financial assistance.
71285.(a)Before awarding funds pursuant to this part, the state board, in consultation with the commission, the California Geological Survey, the State Water Resources Control Board, the State Fire Marshal, the Department of Fish and Wildlife, the State Lands Commission, local air quality management districts and air pollution control districts, regional water quality control boards, and other state entities as needed, shall develop both of the following:
(1)Guidelines for the implementation of the initiative and development of geologic carbon sequestration pilot projects consistent with Section 71283, and including, but not limited to, best practices and agreement templates for all of the following:
(A)Well site, reservoir, and project site health and safety standards.
(B)Technology development and transfer for future deployment of geologic carbon sequestration in the state.
(C)Community benefits associated with geologic carbon sequestration, including workforce and economic development, housing and community services, and access to federal, state, and other funding sources.
(D)Skilled and trained workforce, antidiscrimination, collective bargaining, dispute resolution, and other project labor standards.
(2)Criteria for selection of eligible carbon sequestration pilot projects, including, but not limited to, the project eligibility and prioritization criteria listed in subdivisions (b) and (c) of Section 71283.
(b)(1)(A)Before adopting the guidelines and the selection criteria described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public on the draft guidelines and selection criteria, and shall consider all comments received in adopting the guidelines and selection criteria.
(B)The state board shall hold at least one public workshop in each of the following areas:
(i)Northern California.
(ii)The central valley.
(iii)Southern California.
(C)The state board shall publish the draft guidelines and selection criteria on its internet website at least 30 days before each public meeting.
(2)The state board shall conduct outreach to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, to encourage residents of these communities to participate in the public workshops and submit comments pursuant to this subdivision.
(3)The state board, in adopting the guidelines and selection criteria described in subdivision (a), shall consider all comments received during the public workshops held pursuant to this subdivision.
(c)(1)Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the state boards development and adoption of the guidelines and selection criteria pursuant to this section.
(2)Guidelines and selection criteria developed by the state board pursuant to this section shall not abridge, alter, or amend any regulations or protocols issued by the state board relating to participation of a geologic carbon sequestration pilot project in any program administered by the state board.
(3)Guidelines and selection criteria developed by the state board pursuant to this section shall not promote or facilitate enhanced oil recovery or fossil fuel production and shall ensure that geologic carbon sequestration pilot projects do not promote or facilitate enhanced oil recovery or fossil fuel production.
(d)Upon the adoption of the guidelines and selection criteria pursuant to this section, the state board shall submit, in compliance with Section 9795 of the Government Code, copies of the guidelines and selection criteria to the fiscal and appropriate policy committees of the Legislature. publish the final guidelines and selection criteria on its internet website.
71287.(a)The state board may establish a Hub for Research and Innovation in Geologic Carbon Sequestration.
(b)The state board, in consultation with the commission, may administer the research hub to do all of the following:
(1)Study the development of geologic carbon sequestration technology and pilot projects associated with the initiative, and therefore not associated with enhanced oil recovery or fossil fuel production.
(2)Coordinate research efforts regarding geologic carbon sequestration technology piloted through the initiative.
(3)Evaluate the feasibility and effectiveness of commercial applications of geologic carbon sequestration technology in furtherance of the states greenhouse gas reduction goals.
(c)(1)The research hub, if feasible, shall be located at a University of California, California State University, or California Community College campus in physical proximity to one or more of the geologic carbon sequestration pilot projects approved by the state board pursuant to this part.
(2)The research hub may include facilities for use by state agencies, University of California, California State University, and California Community College researchers, economic development organizations, and industry members to develop, study, and collaborate on innovative geologic carbon sequestration strategies and technologies for the cement industry that are not associated with enhanced oil recovery or fossil fuel production.
71291.(a)On or before July 1, 2024, the Attorney General secretary shall present a written proposal to the Legislature outlining legal standards governing agreements regarding two or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project. The proposal shall include recommended requirements for the submission of these agreements to, and the review, approval, or denial of these agreements by, an authorized state agency, and shall include, but not be limited to, all of the following:
(1)Identification of the appropriate state agency for submission, review, and approval or denial of the agreements, including any legal authorization or delegation necessary.
(2)A requirement that agreement proponents own title to at least an undivided three-fourths of the total interests subject to the proposed agreement.
(3)Standards to determine fair and reasonable compensation for owners.
(4)A requirement to make a good faith offer of compensation prior to submission of an agreement.
(5)Standards for the provision of surface site access, to the extent reasonably necessary for postinjection monitoring.
(6)Any other requirements necessary to comply with state or federal legal or constitutional standards.
(b)In developing the written proposal required pursuant to subdivision (a), the Attorney General secretary shall consult with appropriate state agencies, including, but not limited to, the Attorney General, the Geologic Energy Management Division, the California Geological Survey, the State Lands Commission, the state board, and the commission, as well as industry and legal experts, regarding applicable legal standards. The Attorney General secretary shall also review other states legal standards applicable to geologic carbon sequestration projects.
(c)Before submitting to the Legislature the written proposal required pursuant to subdivision (a), the Attorney General secretary shall provide no less than 90 days for public comment on the proposal. The Attorney General secretary shall consider all comments received during this public comment period in developing the proposal.
71293.(a)Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.
(b)A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.
(c)(1)An instrument that transfers the rights to a geologic storage reservoir under this section shall include both of the following:
(A)A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.
(B)A general description of the potential location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.
(2)The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.
(d)Not less than 60 days before commencing development of a geologic carbon sequestration project, including a geologic carbon sequestration pilot project approved by the state board pursuant to this part, the geologic carbon sequestration pilot project operator shall provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project.
(e)Each geologic carbon sequestration pilot project operator shall record a notation on the deed to the property, or deeds to the properties, where the geologic storage complex or geologic storage reservoir is located, or any other document that is normally examined during a title search, that will in perpetuity notify a potential purchaser of the property, or properties, that the property has, or properties have, been used to sequester carbon dioxide, the volume of carbon dioxide sequestered, the injection zone or zones into which the carbon dioxide was injected, and the dates during which injection occurred.
(f)Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease before the effective date of this part.
(g)This section is enacted for the limited purpose of facilitating the development of up to five geologic carbon sequestration pilot projects approved by the state board pursuant to this part, and only applies to property that is part of a geologic carbon sequestration pilot project.
71295.For purposes of a geologic carbon sequestration project other than a geologic carbon sequestration pilot project approved by the state board pursuant to this part, the geologic carbon sequestration project operator, or its designee, shall have title to the carbon dioxide injected into and stored in a geologic storage reservoir associated with the project, including all rights and interests in, and all responsibilities and liabilities associated with, carbon dioxide stored in the geologic storage reservoir or project operations.71297.(a)For purposes of environmental review pursuant to the California Environmental Quality Act (CEQA) (Division 13 (commencing with Section 21000)) of a geologic carbon sequestration project, including, a geologic carbon sequestration pilot project approved by the state board pursuant to this part, the state board is the lead agency.(b)For purposes of environmental review pursuant to CEQA of a geologic carbon sequestration project, including a geologic carbon sequestration pilot project approved by the state board pursuant to this part, the responsible agencies include, but are not limited to, all of the following:(1)The State Geologist, for all activities related to the subsurface, well and reservoir engineering, wellhead infrastructure, and well site safety.(2)The State Fire Marshal, for carbon dioxide pipelines.(3)The State Water Resources Control Board, for impacts to water quality.(4)The local air quality management district or air pollution control district, for impacts to air quality and carbon dioxide monitoring, reporting, and verification requirements.(5)The Department of Fish and Wildlife, for impacts to species and natural resources.71298.71295.(a)On or before January 1, 2025, the state board shall adopt regulations creating a single unified permit application for submission by developers or sponsors of geologic carbon sequestration pilot projects. The single unified permit application described in this subdivision shall solicit from applicants, and direct to relevant agencies, all information needed to obtain all approvals from state and local agencies necessary to approve a geologic carbon sequestration pilot project, as applicable, including, but not limited to:
(1)The state board and local air quality management districts and air pollution control districts, for air quality and greenhouse gas matters.
(2)The State Water Resources Control Board and regional water quality control boards, for underground injection and water quality matters.
(3)The State Fire Marshal, for pipeline safety matters.
(4)The Public Utilities Commission, for pipeline permitting matters.
(5)The State Lands Commission and local zoning, land use, and planning agencies, for land use planning and leasing of publicly owned land.
(6)Local zoning, land use, and planning agencies, for local land use and pore space ownership matters.
(7)The State Geologist, for seismic activity monitoring and reporting matters.
(b)The state board shall consult with each of the agencies described in subdivision (a), and any other state or local agencies identified by the state board, to develop the single unified permit application described in subdivision (a).
(c)In developing the single unified permit application described in subdivision (a), the state board shall, where possible, do both of the following:
(1)Consult with relevant federal agencies and local governments regarding the process.
(2)Incorporate relevant federal permits into the process.
(d)The state board shall oversee the single unified permit application described in subdivision (a) to minimize application burdens, but shall not abridge any direct contact between applicants and permitting agencies. The state board shall adopt regulations as necessary to implement the single unified permit application and ensure a streamlined application process for applicants.
(e)The single unified permit application developed by the state board pursuant to subdivision (a) shall not eliminate, abridge, or reduce the review or issuance of the individual permits included in the application. As part of the single unified permit application, the state board shall, where possible, streamline duplicative administrative requirements or permit application questions.
(f)The single unified permit application developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000)), or its implementing regulations, with respect to the review or approval of a geologic carbon sequestration pilot project.
(g)The single unified permit application developed by the state board pursuant to subdivision (a) shall include a streamlined process for all participating agencies to assess and collect individual permit application fees, as applicable.
(h)71296.On or before January 1, 2025, the State Geologist shall adopt regulations requiring a geologic carbon sequestration pilot project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration pilot project in the state. The State Geologist may require changes in operations of a geologic carbon sequestration pilot project to ensure safety, including, but not limited to, a mandatory pause in operation, if monitoring and reporting detects increased seismicity.
71299.71297.A geologic carbon sequestration pilot project operator shall demonstrate and maintain financial responsibility sufficient to cover the cost of corrective action, well plugging, site care and site closure, emergency and remedial response, and protection of drinking water quality through financial responsibility instruments such as trust funds, surety bonds, letters of credit, insurance, self-insurance, or escrow accounts. The state board shall, no later than January 1, 2025, and consistent with this section, adopt regulations for financial responsibility in accordance with this section that are no less stringent than those contained in Section 146.85 of Title 40 of the Code of Federal Regulations, as that section existed on January 1, 2023.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The Legislature finds and declares all of the following:
(a)Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of extreme heat, wildfires, drought, species loss, and other disruptions to the states environment and ecosystems.
(b)Leading climate experts, including the United Nations Intergovernmental Panel on Climate Change, have found that deep reductions in carbon dioxide and other greenhouse gases in the coming decades will be necessary to prevent catastrophic global warming in excess of 1.5 and 2 degrees Celsius.
(c)Carbon already emitted into the atmosphere and carbon emitted through natural and industrial processes can be captured and injected into underground geological formations through a process known as geologic carbon sequestration. Geologic carbon sequestration may be a vital strategy to achieve the carbon reductions needed to prevent catastrophic global warming.
(d)California has several geologic formations that are known to have the potential for large-scale carbon storage. Carbon storage in these geologic formations could play an important role in achieving the states target of reducing greenhouse gas emissions to at least 40 percent below 1990 levels by 2030 and the Executive Order No. B-55-18 target of achieving statewide carbon neutrality by 2045.
(e)Several other promising carbon storage mechanisms exist, including mineralization, a process that can permanently store carbon dioxide in rocks.
(f)Carbon capture and storage projects would provide jobs for Californias skilled and trained workforce consistent with the states commitment to an equitable and just clean energy transition. Carbon capture projects are skilled-labor intensive and represent a viable pathway for new skilled and trained jobs in the green economy.
(g)Senate Bill 596 (Chapter 246 of the Statutes of 2021) identified Californias cement industry as a top priority for the development of carbon-neutral industrial operations, including by setting a goal of net-zero greenhouse gas emissions associated with cement used within the state by 2045.
(h)The California cement industry faces a significant economic risk due to high environmental standards and economic costs associated with making cement in the state. Unless the state adequately remedies this risk to the domestic cement industry in meeting its high environmental goals, cement production could move out of state at high economic and environmental cost. This risk will increase as the industry faces higher compliance costs and as the industry makes significant investments to achieve the states goal of achieving carbon neutrality by 2045. The state needs to consider mechanisms to minimize the risk of economic and emissions leakage and ensure that investments in decarbonization measures, regardless of whether those investments are made by the state or by the industry, do not result in increased imports of cement from outside of the state with higher lifecycle carbon intensity.
(h)(i)As California pushes to reduce greenhouse gas emissions associated with domestic cement production, the state needs to also focus on reduction of copollutants, including sulfur dioxide, nitrogen oxide, particulate matter, and carbon monoxide emissions, associated with cement production that can impact the health of local communities.
(i)(j)It is in the states interest to evaluate the safety, efficacy, and benefits of geologic carbon sequestration for cement production as part of a public-private partnership, to establish clear legal standards for geologic carbon sequestration, and to enable the deployment of geologic carbon sequestration by 2025 in order to prevent catastrophic global warming.
(j)(k)It is the intent of the Legislature that California establish pathways for safe and effective geologic carbon sequestration that promote workforce and local community benefits and advance the states leadership in the global effort to reduce greenhouse gas emissions and mitigate climate change.
SEC. 2.Part 3.9 (commencing with Section 71280) is added to Division 34 of the Public Resources Code, to read:3.9.Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act71280.This part shall be known, and may be cited, as the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.
71281.For purposes of this part, the following terms have the following meanings:
(a)Carbon dioxide stream means carbon dioxide captured and transported for the purpose of geologic carbon sequestration.
(b)Commission means the State Energy Resources Conservation and Development Commission.
(c)Geologic carbon sequestration means the capture, transportation, and permanent underground storage of carbon dioxide streams in a geologic storage complex.
(d)Geologic carbon sequestration pilot project means a project for geologic carbon sequestration that is approved by the state board pursuant to the requirements of this part.
(e)Geologic carbon sequestration project operator means a person owning or operating a geologic carbon sequestration project, including a geologic carbon sequestration pilot project approved by the state board pursuant to this part.
(f)Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.
(g)Geologic storage reservoir means a portion of void space in a subsurface a sedimentary geologic stratum or formation, formation containing void spaces, including depleted oil and gas reservoirs and saline aquifers, formations, that is suitable for injection and permanent storage of carbon dioxide in the state.
(h)Initiative means the Geologic Carbon Sequestration Demonstration Initiative developed by the state board pursuant to Section 71283.
(i)Permanent means that sequestered carbon dioxide will remain within a geologic storage complex for at least 100 years.
(j)Research hub means the Hub for Research and Innovation in Geologic Carbon Sequestration established pursuant to Section 71287.
(k)State board means the State Air Resources Board.
71283.(a)The state board shall develop and administer the Geologic Carbon Sequestration Demonstration Initiative to do all of the following:
(1)Evaluate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production.
(2)Enhance air quality and reduce greenhouse gas emissions.
(3)Promote workforce and community benefits.
(b)The state board, in consultation with the commission and the State Water Resources Control Board, shall award funding under the initiative to at least one, and no more than three, geologic carbon sequestration pilot projects that each do all of the following:
(1)Demonstrate the feasibility of one or more geologic carbon sequestration strategies by facilitating the capture, removal, and geologic sequestration of carbon dioxide generated at one or more existing cement production facilities in the state to one or more geologic storage complexes.
(2)Achieve the capability to annually sequester at least 1,000,000 metric tons of carbon dioxide equivalent in greenhouse gas emissions.
(3)Achieve the capability to permanently sequester carbon dioxide in a geologic storage complex at a total capacity of at least 50,000,000 metric tons of carbon dioxide equivalent.
(4)Incorporate strategies to reduce copollutant emissions from a cement production facility participating in the project and limit air pollution, water pollution, and construction- and transportation-related impacts from the project in the community or communities adjacent to any geologic storage complexes used for the project.
(5)Incorporate both of the following:
(A)Strategies to minimize the risk of seismic impacts to the project.
(B)Commitments to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide.
(6)Include monitoring and reporting schedules to state regulatory agencies.
(7)Promote workforce development and create employment opportunities in the community or communities in which the project is located.
(8)Advance the states net-zero cement industry goal and the strategy developed by the state board pursuant to Section 38561.2 of the Health and Safety Code.
(9)Include an infrastructure path for construction of, or reuse of existing, pipelines to connect geologic storage complexes to carbon dioxide sources.
(10)Begin construction before January 1, 2026.
(c)In awarding funds pursuant to this part, the state board shall prioritize geologic carbon sequestration pilot projects that do all of the following:
(1)Are likely to generate the greatest net reduction in greenhouse gas emissions.
(2)Represent appropriate land use and minimize potential environmental, noise, air quality, traffic, and other construction- and operation-related impacts to the community or communities in which the project is located.
(3)Promote the goals of the environmental justice element of any applicable general plan pursuant to subdivision (h) of Section 65302 of the Government Code.
(4)Provide benefits to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.
(5)Leverage private funding sources and public-private partnership structures alongside state funding sources.
(d)A geologic carbon sequestration pilot project funded pursuant to this part is a public works project for which prevailing wages shall be paid in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(e)(1)The state board shall require, as a condition of funding pursuant to this part, that a recipient of funding provide an enforceable commitment to the state board that, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, all contractors and subcontractors at every tier will use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code, to perform all project work that falls within an apprenticeable occupation in the building and construction trades.
(2)This subdivision shall not apply if the work is covered by a project labor agreement that requires all contractors and subcontractors at every tier to use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code.
(f)The state board shall, no later than January 1, 2026, approve at least one geologic carbon sequestration pilot project eligible for funding under this part.
(g)No geologic carbon sequestration project that is associated with, incorporates, or connects to enhanced oil recovery or fossil fuel production shall qualify as a geologic carbon sequestration pilot project or be eligible for or receive funding under this part.
(h)In awarding funds pursuant to this part, the state board may employ methods, including, but not limited to, grants, direct loans and debt instruments, loan guarantees and credit enhancements, and other forms of financial assistance.
71285.(a)Before awarding funds pursuant to this part, the state board, in consultation with the commission, the California Geological Survey, the State Water Resources Control Board, the State Fire Marshal, the Department of Fish and Wildlife, the State Lands Commission, local air quality management districts and air pollution control districts, regional water quality control boards, and other state entities as needed, shall develop both of the following:
(1)Guidelines for the implementation of the initiative and development of geologic carbon sequestration pilot projects consistent with Section 71283, and including, but not limited to, best practices and agreement templates for all of the following:
(A)Well site, reservoir, and project site health and safety standards.
(B)Technology development and transfer for future deployment of geologic carbon sequestration in the state.
(C)Community benefits associated with geologic carbon sequestration, including workforce and economic development, housing and community services, and access to federal, state, and other funding sources.
(D)Skilled and trained workforce, antidiscrimination, collective bargaining, dispute resolution, and other project labor standards.
(2)Criteria for selection of eligible carbon sequestration pilot projects, including, but not limited to, the project eligibility and prioritization criteria listed in subdivisions (b) and (c) of Section 71283.
(b)(1)(A)Before adopting the guidelines and the selection criteria described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public on the draft guidelines and selection criteria, and shall consider all comments received in adopting the guidelines and selection criteria.
(B)The state board shall hold at least one public workshop in each of the following areas:
(i)Northern California.
(ii)The central valley.
(iii)Southern California.
(C)The state board shall publish the draft guidelines and selection criteria on its internet website at least 30 days before each public meeting.
(2)The state board shall conduct outreach to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, to encourage residents of these communities to participate in the public workshops and submit comments pursuant to this subdivision.
(3)The state board, in adopting the guidelines and selection criteria described in subdivision (a), shall consider all comments received during the public workshops held pursuant to this subdivision.
(c)(1)Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the state boards development and adoption of the guidelines and selection criteria pursuant to this section.
(2)Guidelines and selection criteria developed by the state board pursuant to this section shall not abridge, alter, or amend any regulations or protocols issued by the state board relating to participation of a geologic carbon sequestration pilot project in any program administered by the state board.
(3)Guidelines and selection criteria developed by the state board pursuant to this section shall not promote or facilitate enhanced oil recovery or fossil fuel production and shall ensure that geologic carbon sequestration pilot projects do not promote or facilitate enhanced oil recovery or fossil fuel production.
(d)Upon the adoption of the guidelines and selection criteria pursuant to this section, the state board shall submit, in compliance with Section 9795 of the Government Code, copies of the guidelines and selection criteria to the fiscal and appropriate policy committees of the Legislature.
71287.(a)The state board may establish a Hub for Research and Innovation in Geologic Carbon Sequestration.
(b)The state board, in consultation with the commission, may administer the research hub to do all of the following:
(1)Study the development of geologic carbon sequestration technology and pilot projects associated with the initiative, and therefore not associated with enhanced oil recovery or fossil fuel production.
(2)Coordinate research efforts regarding geologic carbon sequestration technology piloted through the initiative.
(3)Evaluate the feasibility and effectiveness of commercial applications of geologic carbon sequestration technology in furtherance of the states greenhouse gas reduction goals.
(c)(1)The research hub, if feasible, shall be located at a University of California, California State University, or California Community College campus in physical proximity to one or more of the geologic carbon sequestration pilot projects approved by the state board pursuant to this part.
(2)The research hub may include facilities for use by state agencies, University of California, California State University, and California Community College researchers, economic development organizations, and industry members to develop, study, and collaborate on innovative geologic carbon sequestration strategies and technologies for the cement industry that are not associated with enhanced oil recovery or fossil fuel production.
71291.For purposes of this part, the provisions of Article 3 (commencing with Section 3640) of Chapter 3.5 of Division 3 respecting unit agreements shall apply as if incorporated herein.71291.(a)On or before July 1, 2024, the Attorney General shall present a written proposal to the Legislature outlining legal standards governing agreements regarding two or more tracts of land overlying the same geologic storage reservoir or reservoirs for purposes of managing, developing, and operating a geologic carbon sequestration project. The proposal shall include recommended requirements for the submission of these agreements to, and the review, approval, or denial of these agreements by, an authorized state agency, and shall include, but not be limited to, all of the following:
(1)Identification of the appropriate state agency for submission, review, and approval or denial of the agreements, including any legal authorization or delegation necessary.
(2)A requirement that agreement proponents own title to at least an undivided three-fourths of the total interests subject to the proposed agreement.
(3)Standards to determine fair and reasonable compensation for owners.
(4)A requirement to make a good faith offer of compensation prior to submission of an agreement.
(5)Standards for the provision of surface site access, to the extent reasonably necessary for postinjection monitoring.
(6)Any other requirements necessary to comply with state or federal legal or constitutional standards.
(b)In developing the written proposal required pursuant to subdivision (a), the Attorney General shall consult with appropriate state agencies, including, but not limited to, the Geologic Energy Management Division, the California Geological Survey, the State Lands Commission, the state board, and the commission, as well as industry and legal experts, regarding applicable legal standards. The Attorney General shall also review other states legal standards applicable to geologic carbon sequestration projects.
(c)Before submitting to the Legislature the written proposal required pursuant to subdivision (a), the Attorney General shall provide no less than 90 days for public comment on the proposal. The Attorney General shall consider all comments received during this public comment period in developing the proposal.
71293.(a)Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.
(b)A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.
(c)(1)An instrument that transfers the rights to a geologic storage reservoir under this section shall include both of the following:
(A)A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.
(B)A specific general description of the potential location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.
(2)The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.
(d)Not less than 60 days before commencing development of a geologic carbon sequestration project, including a geologic carbon sequestration project approved by the state board pursuant to this part, the geologic carbon sequestration project operator shall provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project.
(e)Each geologic carbon sequestration project operator shall record a notation on the deed to the property, or deeds to the properties, where the geologic storage complex or geologic storage reservoir is located, or any other document that is normally examined during a title search, that will in perpetuity notify a potential purchaser of the property, or properties, that the property has, or properties have, been used to sequester carbon dioxide, the volume of carbon dioxide sequestered, the injection zone or zones into which the carbon dioxide was injected, and the dates during which injection occurred.
(f)Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease before the effective date of this part.
71295.For purposes of a geologic carbon sequestration project other than a geologic carbon sequestration pilot project approved by the state board pursuant to this part, the geologic carbon sequestration project operator, or its designee, shall have title to the carbon dioxide injected into and stored in a geologic storage reservoir associated with the project, including all rights and interests in, and all responsibilities and liabilities associated with, carbon dioxide stored in the geologic storage reservoir, and liability for any and all damages caused by the project. reservoir or project operations.
71297.(a)For purposes of environmental review pursuant to the California Environmental Quality Act (CEQA) (Division 13 (commencing with Section 21000)) of a geologic carbon sequestration project, including, a geologic carbon sequestration pilot project approved by the state board pursuant to this part, the state board is the lead agency.
(b)For purposes of environmental review pursuant to CEQA of a geologic carbon sequestration project, including a geologic carbon sequestration pilot project approved by the state board pursuant to this part, the responsible agencies are as follows: agencies include, but are not limited to, all of the following:
(1)The State Geologist, for all activities related to the subsurface, well and reservoir engineering, wellhead infrastructure, and well site safety.
(2)The State Fire Marshal, for carbon dioxide pipelines.
(3)The State Water Resources Control Board, for impacts to water quality.
(4)The local air quality management district or air pollution control district, for impacts to air quality and carbon dioxide monitoring, reporting, and verification requirements.
(5)The Department of Fish and Wildlife, for impacts to species and natural resources.
71298.(a)On or before January 1, 2025, the state board shall adopt regulations creating a coordinated state permitting process for approval of geologic carbon sequestration projects, including a single unified permit application for submission by developers or sponsors of geologic carbon sequestration projects. The single unified permit application described in this subdivision shall incorporate the requirements for solicit from applicants, and direct to relevant agencies, all information needed to obtain all approvals from state and local agencies necessary to approve a geologic carbon sequestration project, as applicable, including, but not limited to:
(1)The state board and local air quality management districts and air pollution control districts, for air quality and greenhouse gas matters.
(2)The State Water Resources Control Board and regional water quality control boards, for underground injection and water quality matters.
(3)The State Fire Marshal, for pipeline safety matters.
(4)The Public Utilities Commission, for pipeline permitting matters.
(5)The State Lands Commission and local zoning, land use, and planning agencies, for pipeline siting matters. land use planning and leasing of publicly owned land.
(6)Local zoning, land use, and planning agencies, for local land use and pore space ownership matters.
(7)The State Geologist, for seismic activity monitoring and reporting matters.
(b)The state board shall consult with each of the agencies described in subdivision (a), and any other state or local agencies identified by the state board, to develop the single unified permit process application described in subdivision (a).
(c)In developing the single unified permit process application described in subdivision (a), the state board shall, where possible, do both of the following:
(1)Consult with relevant federal agencies and local governments regarding the process.
(2)Incorporate relevant federal permits into the process.
(d)The state board shall oversee the single unified permit process application described in subdivision (a). (a) to minimize application burdens, but shall not abridge any direct contact between applicants and permitting agencies. The state board shall adopt regulations as necessary to implement the single unified permit process application and ensure a streamlined application process for applicants.
(e)The single unified permit process application developed by the state board pursuant to subdivision (a) shall not eliminate, abridge, or reduce the substantive review or approval issuance of the individual permits for which requirements are included in the process. application. As part of the single unified permit process, application, the state board shall, where possible, eliminate or streamline duplicative administrative requirements. requirements or permit application questions.
(f)The single unified permit process application developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000)), or its implementing regulations, with respect to the review or approval of a geologic carbon sequestration project.
(g)The single unified permit application developed by the state board pursuant to subdivision (a) shall include a streamlined process for all participating agencies to assess and collect individual permit application fees, as applicable.
(h)On or before January 1, 2025, the State Geologist shall adopt regulations requiring a geologic carbon sequestration project operator to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide for any geologic carbon sequestration project in the state.
71299.A geologic carbon sequestration project operator shall demonstrate and maintain financial responsibility sufficient to cover the cost of corrective action, well plugging, site care and site closure, emergency and remedial response, and protection of drinking water quality through financial responsibility instruments such as trust funds, surety bonds, letters of credit, insurance, self-insurance, or escrow accounts. The state board shall, no later than January 1, 2025, and consistent with this section, adopt regulations for financial responsibility in accordance with this section that are no less stringent than those contained in Section 146.85 of Title 40 of the Code of Federal Regulations, as that section existed on January 1, 2023.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The Legislature finds and declares all of the following:
(a)Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of extreme heat, wildfires, drought, species loss, and other disruptions to the states environment and ecosystems.
(b)Leading climate experts, including the United Nations Intergovernmental Panel on Climate Change, have found that deep reductions in carbon dioxide and other greenhouse gases in the coming decades will be necessary to prevent catastrophic global warming in excess of 1.5 and 2 degrees Celsius.
(c)Carbon already emitted into the atmosphere and carbon emitted through natural and industrial processes can be captured and injected into underground geological formations through a process known as geologic carbon sequestration. Geologic carbon sequestration may be a vital strategy to achieve the carbon reductions needed to prevent catastrophic global warming.
(d)California has several geologic formations that are known to have the potential for large-scale carbon storage. Carbon storage in these geologic formations could play an integral important role in achieving the states target of reducing greenhouse gas emissions to at least 40 percent below 1990 levels by 2030 and the Executive Order No. B-55-18 target of achieving statewide carbon neutrality by 2045.
(e)Several other promising carbon storage mechanisms exist, including mineralization, a process that can permanently store carbon dioxide in rocks.
(f)Carbon capture and storage projects would provide jobs for Californias skilled and trained workforce consistent with the states commitment to an equitable and just clean energy transition. Carbon capture projects are skilled-labor intensive and represent a viable pathway for new skilled and trained jobs in the green economy.
(g)Senate Bill 596 (Chapter 246 of the Statutes of 2021) identified Californias cement industry as a top priority for the development of carbon-neutral industrial operations, including by setting a goal of net-zero greenhouse gas emissions associated with cement used within the state by 2045.
(h)As California pushes to reduce greenhouse gas emissions associated with domestic cement pollution, production, the state needs to also focus on reduction of copollutants, including sulfur dioxide, nitrogen oxide, particulate matter, and carbon monoxide emissions, associated with cement production that can impact the health of local communities.
(i)It is in the states interest to evaluate and demonstrate the safety, efficacy, and benefits of geologic carbon sequestration for cement production as part of a public-private partnership, to establish clear legal standards for geologic carbon sequestration, and to accelerate enable the deployment of geologic carbon sequestration by 2025 in order to prevent catastrophic global warming.
(j)It is the intent of the Legislature that California establish pathways for safe and effective geologic carbon sequestration that promote workforce and local community benefits and advance the states leadership in the global effort to reduce greenhouse gas emissions and mitigate climate change.
SEC. 2.Part 3.9 (commencing with Section 71280) is added to Division 34 of the Public Resources Code, to read:3.9.Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act71280.This part shall be known, and may be cited, as the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.
71281.For purposes of this part, the following terms have the following meanings:
(a)Carbon dioxide stream means carbon dioxide captured and transported for the purpose of geologic carbon sequestration.
(b)Commission means the State Energy Resources Conservation and Development Commission.
(c)Geologic carbon sequestration means the capture, transportation, and permanent underground storage of carbon dioxide streams in a geologic storage complex.
(d)Geologic carbon sequestration demonstration pilot project means a project for geologic carbon sequestration that is approved by the state board pursuant to the requirements of this part.
(e)Geologic carbon sequestration project operator means a person owning or operating a geologic carbon sequestration project, including a geologic carbon sequestration demonstration pilot project approved by the state board pursuant to this part.
(f)Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.
(g)Geologic storage reservoir means a cavity or portion of void space in a subsurface geologic stratum or formation, whether natural or artificially created, including depleted oil and gas reservoirs and saline aquifers, suitable for injection and geologic permanent storage of carbon dioxide in the state.
(h)Initiative means the Geologic Carbon Sequestration Demonstration Initiative developed by the state board pursuant to Section 71283.
(i)Permanent means that sequestered carbon dioxide will remain within a geologic storage complex for at least 100 years.
(j)Research hub means the Hub for Research and Innovation in Geologic Carbon Sequestration established pursuant to Section 71287.
(k)State board means the State Air Resources Board.
71283.(a)The state board shall develop and administer the Geologic Carbon Sequestration Demonstration Initiative to do all of the following:
(1)Evaluate and demonstrate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production.
(2)Enhance air quality and reduce greenhouse gas emissions.
(3)Promote workforce and community benefits.
(b)The state board, in consultation with the commission and the State Water Resources Control Board, shall award funding under the initiative to at least one, and no more than three, geologic carbon sequestration demonstration pilot projects that each do all of the following:
(1)Demonstrate the feasibility of one or more geologic carbon sequestration strategies by facilitating the capture, removal, and geologic sequestration of carbon dioxide generated at one or more new or existing cement production facilities in the state to one or more geologic storage complexes.
(2)Achieve the capability to annually sequester at least 1,000,000 metric tons of carbon dioxide equivalent in greenhouse gas emissions.
(3)Achieve the capability to permanently sequester carbon dioxide in a geologic storage complex at a total capacity of at least 50,000,000 metric tons of carbon dioxide equivalent.
(4)Incorporate strategies to reduce copollutant emissions from a cement production facility participating in the project and limit air pollution, water pollution, and construction- and transportation-related impacts from the project in the community or communities adjacent to any geologic storage complexes used for the project.
(5)Incorporate both of the following:
(A)Strategies to minimize the risk of seismic impacts to the project.
(B)Commitments to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide.
(6)Include monitoring and reporting schedules to state regulatory agencies.
(7)Promote workforce development and create employment opportunities in the community or communities in which the project is located.
(8)Advance the states net-zero cement industry goal and the strategy developed by the state board pursuant to Section 38561.2 of the Health and Safety Code.
(9)Include an infrastructure path for construction of, or reuse of existing, pipelines to connect geologic storage complexes to carbon dioxide sources.
(10)Include facilities, site access, and technical capacity available to support the research hub.(11)Have the technical capacity to begin operation no later than September 1, 2023.(10)Begin construction before January 1, 2026.
(c)In awarding funds pursuant to this part, the state board shall prioritize geologic carbon sequestration demonstration pilot projects that do all of the following:
(1)Are likely to generate the greatest net reduction in greenhouse gas emissions.
(2)Represent appropriate land use and minimize potential environmental, noise, air quality, traffic, and other construction-related construction- and operation-related impacts to the community or communities in which the project is located.
(3)Promote the goals of the environmental justice element of any applicable general plan pursuant to subdivision (h) of Section 65302 of the Government Code.
(4)Provide benefits to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.
(5)Leverage private funding sources and public-private partnership structures alongside state funding sources.
(d)A geologic carbon sequestration demonstration pilot project funded pursuant to this part is a public works project for which prevailing wages shall be paid in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(e)(1)The state board shall require, as a condition of funding pursuant to this part, that a recipient of funding provide an enforceable commitment to the state board that, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, all contractors and subcontractors at every tier will use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code, to perform all project work that falls within an apprenticeable occupation in the building and construction trades.
(2)This subdivision shall not apply if the work is covered by a project labor agreement that requires all contractors and subcontractors at every tier to use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code.
(f)The state board shall, no later than January 1, 2024, 2026, approve at least one geologic carbon sequestration demonstration pilot project eligible for funding under this part.
(g)No geologic carbon sequestration project that is associated with, incorporates, or connects to enhanced oil recovery or fossil fuel production shall qualify as a geologic carbon sequestration demonstration pilot project or be eligible for or receive funding under this part.
(h)In awarding funds pursuant to this part, the state board may employ methods, including, but not limited to, grants, direct loans and debt instruments, loan guarantees and credit enhancements, and other forms of financial assistance.
71285.(a)Prior to Before awarding funds pursuant to this part, and no later than July 1, 2023, the state board, in consultation with the commission, the California Geological Survey, the State Water Resources Control Board, the State Fire Marshal, the Department of Fish and Wildlife, the State Lands Commission, local air quality management districts and air pollution control districts, regional water quality control boards, and other state entities as needed, shall develop both of the following:
(1)Guidelines for the implementation of the initiative and development of geologic carbon sequestration demonstration pilot projects consistent with Section 71283, and including, but not limited to, best practices and agreement templates for all of the following:
(A)Well site, reservoir, and project site health and safety standards.
(B)Technology development and transfer for future deployment of geologic carbon sequestration in the state.
(C)Community benefits associated with geologic carbon sequestration, including workforce and economic development, housing and community services, and access to federal, state, and other funding sources.
(D)Skilled and trained workforce, antidiscrimination, collective bargaining, dispute resolution, and other project labor standards.
(2)Criteria for selection of eligible carbon sequestration demonstration pilot projects, including, but not limited to, the project eligibility and prioritization criteria listed in subdivisions (b) and (c) of Section 71283.
(b)(1)(A)Prior to Before adopting the guidelines and the selection criteria described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public on the draft guidelines and selection criteria, and shall consider all comments received in adopting the guidelines and selection criteria.
(B)The state board shall hold at least one public workshop in each of the following areas:
(i)Northern California.
(ii)The central valley.
(iii)Southern California.
(C)The state board shall publish the draft guidelines and selection criteria on its internet website at least 30 days prior to before each public meeting.
(2)The state board shall conduct outreach to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, to encourage residents of these communities to participate in the public workshops and submit comments pursuant to this subdivision.
(3)The state board board, in adopting the guidelines and selection criteria described in subdivision (a), shall consider all comments received during the public workshops held pursuant to this subdivision in adopting the guidelines and selection criteria described in subdivision (a). subdivision.
(c)(1)Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the state boards development and adoption of the guidelines and selection criteria pursuant to this section.
(2)Guidelines and selection criteria developed by the state board pursuant to this section shall not abridge, alter, or amend any regulations or protocols issued by the state board relating to participation of a geologic carbon sequestration demonstration pilot project in the Low Carbon Fuel Standard Program (Subarticle 7 (commencing with Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations). any program administered by the state board.
(3)Guidelines and selection criteria developed by the state board pursuant to this section shall not promote or facilitate enhanced oil recovery or fossil fuel production. production and shall ensure that geologic carbon sequestration pilot projects do not promote or facilitate enhanced oil recovery or fossil fuel production.
(d)Upon the adoption of the guidelines and selection criteria pursuant to this section, the state board shall submit, in compliance with Section 9795 of the Government Code, copies of the guidelines and selection criteria to the fiscal and appropriate policy committees of the Legislature.
71287.(a)The state board may establish a Hub for Research and Innovation in Geologic Carbon Sequestration is hereby established. Sequestration.
(b)The state board, in consultation with the commission, shall may administer the research hub to do all of the following:
(1)Study the development of geologic carbon sequestration technology and demonstration pilot projects associated with the initiative, and therefore not associated with enhanced oil recovery or fossil fuel production.
(2)Coordinate research efforts regarding geologic carbon sequestration technology piloted through the initiative.
(3)Evaluate the feasibility and effectiveness of commercial applications of geologic carbon sequestration technology in furtherance of the states greenhouse gas reduction goals.
(c)(1)The research hub, if feasible, shall be located at a University of California, California State University, or California Community College campus in physical proximity to one or more of the geologic carbon sequestration demonstration pilot projects approved by the state board pursuant to this part.
(2)The research hub shall may include facilities for use by state agencies, University of California, California State University, and California Community College researchers, economic development organizations, and industry members to develop, study, and collaborate on innovative geologic carbon sequestration strategies and technologies for the cement industry that are not associated with enhanced oil recovery or fossil fuel production.
71291.For purposes of this part, the provisions of Article 3 (commencing with Section 3640) of Chapter 3.5 of Division 3 respecting unit agreements shall apply as if incorporated herein.
71293.(a)Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.
(b)A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.
(c)(1)An instrument that transfers the rights to a geologic storage reservoir under this section shall include both of the following:
(A)A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.
(B)A specific description of the location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.
(2)The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.
(d)Not less than 60 days before commencing development of a geologic carbon sequestration project, including a geologic carbon sequestration project approved by the state board pursuant to this part, the geologic carbon sequestration project operator shall provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project.
(e)Each geologic carbon sequestration project operator shall record a notation on the deed to the property, or deeds to the properties, where the geologic storage complex or geologic storage reservoir is located, or any other document that is normally examined during a title search, that will in perpetuity notify a potential purchaser of the property, or properties, that the property has, or properties have, been used to sequester carbon dioxide, the volume of carbon dioxide sequestered, the injection zone or zones into which the carbon dioxide was injected, and the dates during which injection occurred.
(f)Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease prior to before the effective date of this part.
71295.For purposes of a geologic carbon sequestration project other than a geologic carbon sequestration demonstration pilot project approved by the state board pursuant to this part, the geologic carbon sequestration project operator, or its designee, shall have title to the carbon dioxide injected into and stored in a geologic storage reservoir associated with the project, including all rights and interests in, and all responsibilities associated with, carbon dioxide stored in the geologic storage reservoir, and liability for any and all damages caused by the project.
71297.(a)For purposes of environmental review pursuant to the California Environmental Quality Act (CEQA) (Division 13 (commencing with Section 21000)) of a geologic carbon sequestration project, including, a geologic carbon sequestration demonstration pilot project approved by the state board pursuant to this part, the state board is the lead agency.
(b)For purposes of environmental review pursuant to CEQA of a geologic carbon sequestration project, including a geologic carbon sequestration demonstration pilot project approved by the state board pursuant to this part, the responsible agencies are as follows:
(1)The State Geologist, for all activities related to the subsurface, well and reservoir engineering, wellhead infrastructure, and well site safety.
(2)The State Fire Marshal, for carbon dioxide pipelines.
(3)The State Water Resources Control Board, for impacts to water quality.
(4)The local air quality management district or air pollution control district, for impacts to air quality and carbon dioxide monitoring, reporting, and verification requirements.
(5)The Department of Fish and Wildlife, for impacts to species and natural resources.
71298.(a)On or before January 1, 2025, the state board shall adopt regulations creating a coordinated state permitting process for approval of geologic carbon sequestration projects, including a single unified permit for submission by developers or sponsors of geologic carbon sequestration projects. The single unified permit described in this subdivision shall incorporate the requirements for all approvals from state and local agencies necessary to approve a geologic carbon sequestration project, as applicable, including, but not limited to:
(1)The state board and local air quality management districts and air pollution control districts, for air quality and greenhouse gas matters.
(2)The State Water Resources Control Board and regional water quality control boards, for underground injection and water quality matters.
(3)The State Fire Marshal, for pipeline safety matters.
(4)The Public Utilities Commission, for pipeline permitting matters.
(5)The State Lands Commission and local zoning, land use, and planning agencies, for pipeline siting matters.
(6)Local zoning, land use, and planning agencies, for local land use and pore space ownership matters.
(b)The state board shall consult with each of the agencies described in subdivision (a), and any other state or local agencies identified by the state board, to develop the single unified permit process described in subdivision (a).
(c)In developing the single unified permit process described in subdivision (a), the state board shall, where possible, do both of the following:
(1)Consult with relevant federal agencies and local governments regarding the process.
(2)Incorporate relevant federal permits into the process.
(d)The state board shall oversee the single unified permit process described in subdivision (a). The state board shall adopt regulations as necessary to implement the single unified permit process and ensure a streamlined application process for applicants.
(e)The single unified permit process developed by the state board pursuant to subdivision (a) shall not eliminate, abridge, or reduce the substantive review or approval of the individual permits for which requirements are included in the process. As part of the single unified permit process, the state board shall, where possible, eliminate or streamline duplicative administrative requirements.
(f)The single unified permit process developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000)), or its implementing regulations, with respect to the review or approval of a geologic carbon sequestration project.
71299.A geologic carbon sequestration project operator shall demonstrate and maintain financial responsibility sufficient to cover the cost of corrective action, well plugging, site care and site closure, emergency and remedial response, and protection of drinking water quality through financial responsibility instruments such as trust funds, surety bonds, letters of credit, insurance, self-insurance, or escrow accounts. The state board shall, no later than January 1, 2025, and consistent with this section, adopt regulations for financial responsibility in accordance with this section that are no less stringent than those contained in Section 146.85 of Title 40 of the Code of Federal Regulations, as that section existed on January 1, 2023.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The Legislature finds and declares all of the following:
(a)Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of extreme heat, wildfires, drought, species loss, and other disruptions to the states environment and ecosystems.
(b)Leading climate experts, including the United Nations Intergovernmental Panel on Climate Change, have found that deep reductions in carbon dioxide and other greenhouse gases in the coming decades will be necessary to prevent catastrophic global warming in excess of 1.5 and 2 degrees Celsius.
(c)Carbon already emitted into the atmosphere and carbon emitted through natural and industrial processes can be captured and injected into underground geological formations through a process known as geologic carbon sequestration. Geologic carbon sequestration may be a vital strategy to achieve the carbon reductions needed to prevent catastrophic global warming.
(d)California has several geologic formations that are known to have the potential for large-scale carbon storage. Carbon storage in these geologic formations could play an integral role in achieving the states target of reducing greenhouse gas emissions to at least 40 percent below 1990 levels by 2030 and the Executive Order No. B-55-18 target of achieving statewide carbon neutrality by 2045.
(e)Several other promising carbon storage mechanisms exist, including mineralization, a process that can permanently store carbon dioxide in rocks.
(f)Carbon capture and storage projects would provide jobs for Californias skilled and trained workforce consistent with the states commitment to an equitable and just clean energy transition. Carbon capture projects are skilled-labor intensive and represent a viable pathway for new skilled and trained jobs in the green economy.
(g)Senate Bill 596 (Chapter 246 of the Statutes of 2021) identified Californias cement industry as a top priority for the development of carbon-neutral industrial operations, including by setting a goal of net-zero greenhouse gas emissions associated with cement used within the state by 2045.
(h)As California pushes to reduce greenhouse gas emissions associated with domestic cement pollution, the state needs to also focus on reduction of copollutants, including sulfur dioxide, nitrogen oxide, and carbon monoxide emissions, associated with cement production that can impact the health of local communities.
(i)It is in the states interest to evaluate and demonstrate the safety, efficacy, and benefits of geologic carbon sequestration for cement production as part of a public-private partnership, to establish clear legal standards for geologic carbon sequestration, and to accelerate the deployment of geologic carbon sequestration by 2025 in order to prevent catastrophic global warming.
(j)It is the intent of the Legislature that California establish pathways for safe and effective geologic carbon sequestration that promote workforce and local community benefits and advances advance the states leadership in the global effort to reduce greenhouse gas emissions and mitigate climate change.
SEC. 2.Part 3.9 (commencing with Section 71280) is added to Division 34 of the Public Resources Code, to read:3.9.Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act71280.This part shall be known, and may be cited, as the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.
71281.For purposes of this part, the following terms have the following meanings:
(a)Carbon dioxide stream means carbon dioxide captured for the purpose of geologic carbon sequestration.
(b)Commission means the State Energy Resources Conservation and Development Commission.
(c)Geologic carbon sequestration means the permanent underground storage of carbon dioxide streams in a geologic storage complex.
(d)Geologic carbon sequestration demonstration project means a project for geologic carbon sequestration that is approved by the state board pursuant to the requirements of this part.
(e)Geologic carbon sequestration project operator means a person owning or operating a geologic carbon sequestration project, including a geologic carbon sequestration demonstration project approved by the state board pursuant to this part.
(f)Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.
(g)Geologic storage reservoir means a cavity or void in a subsurface stratum or formation, whether natural or artificially created, suitable for injection and geologic storage of carbon dioxide in the state.
(h)Initiative means the Geologic Carbon Sequestration Demonstration Initiative developed by the state board pursuant to Section 71283.
(i)Innovation hub means the Hub for Innovation in Geologic Carbon Sequestration established pursuant to Section 71287. (j)(i)Permanent means that sequestered carbon dioxide will remain within a geologic storage complex for at least 100 years.
(j)Research hub means the Hub for Research and Innovation in Geologic Carbon Sequestration established pursuant to Section 71287.
(k)State board means the State Air Resources Board.
71283.(a)The state board shall develop and administer the Geologic Carbon Sequestration Demonstration Initiative to do all of the following:
(1)Evaluate and demonstrate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production.
(2)Enhance air quality and reduce greenhouse gas emissions.
(3)Promote workforce and community benefits.
(b)The state board, in consultation with the commission and the State Water Resources Control Board, shall award funding under the initiative to at least one, and no more than three, geologic carbon sequestration demonstration projects that each do all of the following:
(1)Demonstrate the feasibility of one or more geologic carbon sequestration strategies by facilitating the capture, removal, and geologic sequestration of carbon dioxide generated at one or more new or existing cement production facilities in the state to one or more geologic storage complexes.
(2)Achieve the capability to annually sequester at least 1,000,000 metric tons of carbon dioxide equivalent in greenhouse gas emissions.
(3)Achieve the capability to permanently sequester carbon dioxide in a geologic storage complex at a total capacity of at least 50,000,000 metric tons of carbon dioxide equivalent.
(4)Incorporate strategies to reduce copollutant emissions from a cement production facility participating in the carbon sequestration demonstration project and limit air pollution, water pollution, and construction-related construction- and transportation-related impacts from the project in the community or communities adjacent to any geologic storage complexes used for the project.
(5)Incorporate both of the following:
(A)Strategies to minimize the risk of seismic impacts to the project.
(B)Commitments to conduct regular monitoring and reporting of seismic activity related to geologic sequestration of carbon dioxide.
(5)(6)Include monitoring and reporting schedules to state regulatory agencies.
(6)(7)Promote workforce development and create employment opportunities in the community or communities in which the carbon sequestration demonstration project is located.
(7)(8)Advance the states net-zero cement industry goal and the strategy developed by the state board pursuant to Section 38561.2 of the Health and Safety Code.
(8)(9)Include an infrastructure path for construction of, or reuse of existing, pipelines to connect geologic storage complexes to carbon dioxide sources.
(9)(10)Include facilities, site access, and technical capacity available to support the innovation research hub.
(10)(11)Have the technical capacity to begin operation no later than September 1, 2023.
(c)In awarding funds pursuant to this part, the state board shall prioritize geologic carbon sequestration demonstration projects that do all of the following:
(1)Are likely to generate the greatest net reduction in greenhouse gas emissions.
(2)Represent appropriate land use and minimize potential environmental, noise, air quality, traffic, and other construction-related impacts to the community or communities in which the project is located.
(3)Promote the goals of the environmental justice element of any applicable general plan pursuant to subdivision (h) of Section 65302 of the Government Code.
(4)Provide benefits to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.
(5)Leverage private funding sources and public-private partnership structures alongside state funding sources.
(d)A geologic carbon sequestration demonstration project funded pursuant to this part is a public works project for which prevailing wages shall be paid in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(e)(1)The state board shall require, as a condition of funding pursuant to this part, that a recipient of funding provide an enforceable commitment to the state board that, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, all contractors and subcontractors at every tier will use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code, to perform all project work that falls within an apprenticeable occupation in the building and construction trades.
(2)This subdivision shall not apply if the work is covered by a project labor agreement that requires all contractors and subcontractors at every tier to use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code.
(f)The state board shall, no later than January 1, 2024, approve at least one geologic carbon sequestration demonstration project eligible for funding under this part.
(g)No geologic carbon sequestration project that is associated with, incorporates, or connects to enhanced oil recovery or fossil fuel production shall qualify as a geologic carbon sequestration demonstration project or be eligible for or receive funding under this part.
(h)In awarding funds pursuant to this part, the state board may employ methods, including, but not limited to, grants, direct loans and debt instruments, loan guarantees and credit enhancements, and other forms of financial assistance.
71285.(a)Prior to awarding funds pursuant to this part, and no later than July 1, 2023, the state board, in consultation with the commission, the California Geological Survey, the State Water Resources Control Board, the State Fire Marshal, the Department of Fish and Wildlife, the State Lands Commission, local air quality management districts and air pollution control districts, regional water quality control boards, and other state entities as needed, shall develop both of the following:
(1)Guidelines for the implementation of the initiative and development of geologic carbon sequestration demonstration projects consistent with Section 71283, and including, but not limited to, best practices and agreement templates for all of the following:
(A)Well site, reservoir, and project site health and safety standards.
(B)Technology development and transfer for future deployment of geologic carbon sequestration in the state.
(C)Community benefits associated with geologic carbon sequestration, including workforce and economic development, housing and community services, and access to federal, state, and other funding sources.
(D)Skilled and trained workforce, antidiscrimination, collective bargaining, dispute resolution, and other project labor standards.
(2)Criteria for selection of eligible carbon sequestration demonstration projects, including, but not limited to, the project eligibility and prioritization criteria listed in subdivisions (b) and (c) of Section 71283.
(b)(1)(A)Prior to adopting the guidelines and the selection criteria described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public on the draft guidelines and selection criteria, and shall consider all comments received in adopting the guidelines and selection criteria.
(B)The state board shall hold at least one public workshop in each of the following areas:
(i)Northern California.
(ii)The central valley.
(iii)Southern California.
(C)The state board shall publish the draft guidelines and selection criteria on its internet website at least 30 days prior to each public meeting.
(2)The state board shall conduct outreach to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, to encourage residents of these communities to participate in the public workshops and submit comments pursuant to this subdivision.
(3)The state board shall consider all comments received during the public workshops held pursuant to this subdivision in adopting the guidelines and selection criteria described in subdivision (a).
(c)(1)Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the state boards development and adoption of the guidelines and selection criteria pursuant to this section.
(2)Guidelines and selection criteria developed by the state board pursuant to this section shall not abridge, alter, or amend any regulations or protocols issued by the state board relating to participation of a geologic carbon sequestration demonstration project in the Low Carbon Fuel Standard Program (Subarticle 7 (commencing with Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations).
(3)Guidelines and selection criteria developed by the state board pursuant to this section shall not promote or facilitate enhanced oil recovery or fossil fuel production.
(d)Upon the adoption of the guidelines and selection criteria pursuant to this section, the state board shall submit, in compliance with Section 9795 of the Government Code, copies of the guidelines and selection criteria to the fiscal and appropriate policy committees of the Legislature.
71287.(a)The Hub for Research and Innovation in Geologic Carbon Sequestration is hereby established.
(b)The state board, in consultation with the commission, shall administer the innovation research hub to do all of the following:
(1)Advance Study the development of geologic carbon sequestration technology and demonstration projects associated with the initiative, and therefore not associated with enhanced oil recovery or fossil fuel production.
(2)Coordinate research efforts regarding geologic carbon sequestration technology. technology piloted through the initiative.
(3)Promote Evaluate the feasibility and effectiveness of commercial applications of geologic carbon sequestration technology in furtherance of the states greenhouse gas reduction goals.
(c)(1)The innovation research hub, if feasible, shall be located at a University of California, California State University, or California Community College campus in physical proximity to one or more of the geologic carbon sequestration demonstration projects approved by the state board pursuant to this part.
(2)The innovation research hub shall include facilities for use by state agencies, University of California, California State University, and California Community College researchers, economic development organizations, and industry members to develop develop, study, and collaborate on innovative geologic carbon sequestration strategies and technologies for the cement industry that are not associated with enhanced oil recovery or fossil fuel production.
71291.For purposes of this part, the provisions of Article 3 (commencing with Section 3640) of Chapter 3.5 of Division 3 respecting unit agreements shall apply as if incorporated herein.
71293.(a)Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.
(b)A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.
(c)(1)An instrument that transfers the rights to a geologic storage reservoir under this section shall include both of the following:
(A)A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.
(B)A specific description of the location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.
(2)The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.
(d)Not less than 60 days before commencing development of a geologic carbon sequestration project, including a geologic carbon sequestration project approved by the state board pursuant to this part, the geologic carbon sequestration project operator shall provide written notice of the project to each owner of a surface, subsurface, or storage reservoir estate that is adjacent to a geologic storage complex or a geologic storage reservoir that is included in the project.
(e)Each geologic carbon sequestration project operator shall record a notation on the deed to the property, or deeds to the properties, where the geologic storage complex or geologic storage reservoir is located, or any other document that is normally examined during a title search, that will in perpetuity notify a potential purchaser of the property, or properties, that the property has, or properties have, been used to sequester carbon dioxide, the volume of carbon dioxide sequestered, the injection zone or zones into which the carbon dioxide was injected, and the dates during which injection occurred.
(d)(f)Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease prior to the effective date of this part.
71295.For purposes of a geologic carbon sequestration project other than a geologic carbon sequestration demonstration project approved by the state board pursuant to this part, the geologic carbon sequestration project operator, or its designee, shall have title to the carbon dioxide injected into and stored in a geologic storage reservoir associated with the project, including all rights and interests in, and all responsibilities associated with, carbon dioxide stored in the geologic storage reservoir, and liability for any and all damages caused by the project.
71297.(a)For purposes of environmental review pursuant to the California Environmental Quality Act (CEQA) (Division 13 (commencing with Section 21000)) of a geologic carbon sequestration project, including, a geologic carbon sequestration demonstration project approved by the state board pursuant to this part, the state board is the lead agency.
(b)For purposes of environmental review pursuant to CEQA of a geologic carbon sequestration project, including a geologic carbon sequestration demonstration project approved by the state board pursuant to this part, the responsible agencies are as follows:
(1)The State Geologist, for all activities related to the subsurface, well and reservoir engineering, wellhead infrastructure, and well site safety.
(2)The State Fire Marshal, for carbon dioxide pipelines.
(3)The State Water Resources Control Board, for impacts to water quality.
(4)The local air quality management district or air pollution control district, for impacts to air quality and carbon dioxide monitoring, reporting, and verification requirements.
(5)The Department of Fish and Wildlife, for impacts to species and natural resources.
71298.(a)On or before January 1, 2025, the state board shall adopt regulations creating a coordinated state permitting process for approval of geologic carbon sequestration projects, including a single unified permit for submission by developers or sponsors of geologic carbon sequestration projects. The single unified permit described in this subdivision shall incorporate the requirements for all approvals from state and local agencies necessary to approve a geologic carbon sequestration project, as applicable, including, but not limited to:
(1)The state board and local air quality management districts and air pollution control districts, for air quality and greenhouse gas matters.
(2)The State Water Resources Control Board and regional water quality control boards, for underground injection and water quality matters.
(3)The State Fire Marshal, for pipeline safety matters.
(4)The Public Utilities Commission, for pipeline permitting matters.
(5)The State Lands Commission and local zoning, land use, and planning agencies, for pipeline siting matters.
(6)Local zoning, land use, and planning agencies, for local land use and pore space ownership matters.
(b)The state board shall consult with each of the agencies described in subdivision (a), and any other state or local agencies identified by the state board, to develop the single unified permit process described in subdivision (a).
(c)In developing the single unified permit process described in subdivision (a), the state board shall, where possible, do both of the following:
(1)Consult with relevant federal agencies and local governments regarding the process.
(2)Incorporate relevant federal permits into the process.
(d)The state board shall oversee the single unified permit process described in subdivision (a). The state board shall adopt regulations as necessary to implement the single unified permit process and ensure a streamlined application process for applicants.
(e)The single unified permit process developed by the state board pursuant to subdivision (a) shall not eliminate, abridge, or reduce the substantive review or approval of the individual permits for which requirements are included in the process. As part of the single unified permit process, the state board shall, where possible, eliminate or streamline duplicative administrative requirements.
(f)The single unified permit process developed by the state board pursuant to subdivision (a) shall not impair, abridge, or alter any rights or obligations under the California Environmental Quality Act (Division 13 (commencing with Section 21000)), or its implementing regulations, with respect to the review or approval of a geologic carbon sequestration project.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
The Legislature finds and declares all of the following:
(a)Climate change poses a severe threat to Californias people, places, resources, and institutions that is already manifesting in the form of extreme heat, wildfires, drought, species loss, and other disruptions to the states environment and ecosystems.
(b)Leading climate experts, including the United Nations Intergovernmental Panel on Climate Change, have found that deep reductions in carbon dioxide and other greenhouse gases in the coming decades will be necessary to prevent catastrophic global warming in excess of 1.5 and 2 degrees Celsius.
(c)Carbon already emitted into the atmosphere and carbon emitted through natural and industrial processes can be captured and injected into underground geological formations through a process known as geologic carbon sequestration. Geologic carbon sequestration may be a vital strategy to achieve the carbon reductions needed to prevent catastrophic global warming.
(d)California has several geologic formations that are known to have the potential for large-scale carbon storage. Carbon storage in these geologic formations could play an integral role in achieving the states target of reducing greenhouse gas emissions to at least 40 percent below 1990 levels by 2030 and the Executive Order No. B-55-18 target of achieving statewide carbon neutrality by 2045.
(e)Several other promising carbon storage mechanisms exist, including mineralization, a process that can permanently store carbon dioxide in rocks.
(f)Carbon capture and storage projects would provide jobs for Californias skilled and trained workforce consistent with the states commitment to an equitable and just clean energy transition. Carbon capture projects are skilled-labor intensive and represent a viable pathway for new skilled and trained jobs in the green economy.
(g)Senate Bill 596 (Chapter 246 of the Statutes of 2021) identified Californias cement industry as a top priority for the development of carbon-neutral industrial operations, including by setting a goal of net-zero greenhouse gas emissions associated with cement used within the state by 2045.
(h)As California pushes to reduce greenhouse gas emissions associated with domestic cement pollution, the state needs to also focus on reduction of copollutants, including sulfur dioxide, nitrogen oxide, and carbon monoxide emissions, associated with cement production that can impact the health of local communities.
(i)It is in the states interest to evaluate and demonstrate the safety, efficacy, and benefits of geologic carbon sequestration for cement production as part of a public-private partnership, to establish clear legal standards for geologic carbon sequestration, and to accelerate the deployment of geologic carbon sequestration by 2025 in order to prevent catastrophic global warming.
(j)It is the intent of the Legislature that California establish pathways for safe and effective geologic carbon sequestration that promote workforce and local community benefits and advances the states leadership in the global effort to reduce greenhouse gas emissions and mitigate climate change.
SEC. 2.Part 3.9 (commencing with Section 71280) is added to Division 34 of the Public Resources Code, to read:3.9.Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act71280.This part shall be known, and may be cited, as the Decarbonized Cement and Geologic Carbon Sequestration Demonstration Act.
71281.For purposes of this part, the following terms have the following meanings:
(a)Carbon dioxide stream means carbon dioxide captured for the purpose of geologic carbon sequestration.
(b)Commission means the State Energy Resources Conservation and Development Commission.
(c)Geologic carbon sequestration means the permanent underground storage of carbon dioxide streams in a geologic storage complex.
(d)Geologic carbon sequestration demonstration project means a project for geologic carbon sequestration that is approved by the state board pursuant to the requirements of this part.
(e)Geologic carbon sequestration project operator means a person owning or operating a geologic carbon sequestration project, including a geologic carbon sequestration demonstration project approved by the state board pursuant to this part.
(f)Geologic storage complex means one or more geologic storage reservoirs and any associated facilities or infrastructure necessary to convey, inject, or store carbon dioxide streams at the site of a geologic storage reservoir.
(g)Geologic storage reservoir means a cavity or void in a subsurface stratum or formation, whether natural or artificially created, suitable for injection and geologic storage of carbon dioxide in the state.
(h)Initiative means the Geologic Carbon Sequestration Demonstration Initiative developed by the state board pursuant to Section 71283.
(i)Innovation hub means the Hub for Innovation in Geologic Carbon Sequestration established pursuant to Section 71287.
(j)Permanent means that sequestered carbon dioxide will remain within a geologic storage complex for at least 100 years.
(k)State board means the State Air Resources Board.
71283.(a)The state board shall develop and administer the Geologic Carbon Sequestration Demonstration Initiative to do all of the following:
(1)Evaluate and demonstrate the efficacy, safety, and viability of geologic sequestration of carbon dioxide not associated with enhanced oil recovery or fossil fuel production.
(2)Enhance air quality and reduce greenhouse gas emissions.
(3)Promote workforce and community benefits.
(b)The state board, in consultation with the commission and the State Water Resources Control Board, shall award funding under the initiative to at least one, and no more than three, geologic carbon sequestration demonstration projects that each do all of the following:
(1)Demonstrate the feasibility of one or more geologic carbon sequestration strategies by facilitating the capture, removal, and geologic sequestration of carbon dioxide generated at one or more new or existing cement production facilities in the state to one or more geologic storage complexes.
(2)Achieve the capability to annually sequester at least 1,000,000 metric tons of carbon dioxide equivalent in greenhouse gas emissions.
(3)Achieve the capability to permanently sequester carbon dioxide in a geologic storage complex at a total capacity of at least 50,000,000 metric tons of carbon dioxide equivalent.
(4)Incorporate strategies to reduce copollutant emissions from a cement production facility participating in the carbon sequestration demonstration project and limit air pollution, water pollution, and construction-related impacts in the community or communities adjacent to any geologic storage complexes used for the project.
(5)Include monitoring and reporting schedules to state regulatory agencies.
(6)Promote workforce development and create employment opportunities in the community or communities in which the carbon sequestration demonstration project is located.
(7)Advance the states net-zero cement industry goal and the strategy developed by the state board pursuant to Section 38561.2 of the Health and Safety Code.
(8)Include an infrastructure path for construction of, or reuse of existing, pipelines to connect geologic storage complexes to carbon dioxide sources.
(9)Include facilities, site access, and technical capacity available to support the innovation hub.
(10)Have the technical capacity to begin operation no later than September 1, 2023.
(c)In awarding funds pursuant to this part, the state board shall prioritize geologic carbon sequestration demonstration projects that do all of the following:
(1)Are likely to generate the greatest net reduction in greenhouse gas emissions.
(2)Represent appropriate land use and minimize potential environmental, noise, air quality, traffic, and other construction-related impacts to the community or communities in which the project is located.
(3)Promote the goals of the environmental justice element of any applicable general plan pursuant to subdivision (h) of Section 65302 of the Government Code.
(4)Provide benefits to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code.
(5)Leverage private funding sources and public-private partnership structures alongside state funding sources.
(d)A geologic carbon sequestration demonstration project funded pursuant to this part is a public works project for which prevailing wages shall be paid in accordance with Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of the Labor Code.
(e)(1)The state board shall require, as a condition of funding pursuant to this part, that a recipient of funding provide an enforceable commitment to the state board that, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division 2 of the Public Contract Code, all contractors and subcontractors at every tier will use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code, to perform all project work that falls within an apprenticeable occupation in the building and construction trades.
(2)This subdivision shall not apply if the work is covered by a project labor agreement that requires all contractors and subcontractors at every tier to use a skilled and trained workforce, as defined in subdivision (d) of Section 2601 of the Public Contract Code.
(f)The state board shall, no later than January 1, 2024, approve at least one geologic carbon sequestration demonstration project eligible for funding under this part.
(g)No geologic carbon sequestration project that is associated with, incorporates, or connects to enhanced oil recovery or fossil fuel production shall qualify as a geologic carbon sequestration demonstration project or be eligible for or receive funding under this part.
71285.(a)Prior to awarding funds pursuant to this part, and no later than July 1, 2023, the state board, in consultation with the commission, the California Geological Survey, the State Water Resources Control Board, the State Fire Marshal, the Department of Fish and Wildlife, the State Lands Commission, local air quality management districts and air pollution control districts, regional water quality control boards, and other state entities as needed, shall develop both of the following:
(1)Guidelines for the implementation of the initiative and development of geologic carbon sequestration demonstration projects consistent with Section 71283, and including, but not limited to, best practices and agreement templates for all of the following:
(A)Well site, reservoir, and project site health and safety standards.
(B)Technology development and transfer for future deployment of geologic carbon sequestration in the state.
(C)Community benefits associated with geologic carbon sequestration, including workforce and economic development, housing and community services, and access to federal, state, and other funding sources.
(D)Skilled and trained workforce, antidiscrimination, collective bargaining, dispute resolution, and other project labor standards.
(2)Criteria for selection of eligible carbon sequestration demonstration projects, including, but not limited to, the project eligibility and prioritization criteria listed in subdivisions (b) and (c) of Section 71283.
(b)(1)(A)Prior to adopting the guidelines and the selection criteria described in subdivision (a), the state board shall conduct at least three public workshops to receive comments from the public on the draft guidelines and selection criteria, and shall consider all comments received in adopting the guidelines and selection criteria.
(B)The state board shall hold at least one public workshop in each of the following areas:
(i)Northern California.
(ii)The central valley.
(iii)Southern California.
(C)The state board shall publish the draft guidelines and selection criteria on its internet website at least 30 days prior to each public meeting.
(2)The state board shall conduct outreach to disadvantaged communities, as identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code, to encourage residents of these communities to participate in the public workshops and submit comments pursuant to this subdivision.
(3)The state board shall consider all comments received during the public workshops held pursuant to this subdivision in adopting the guidelines and selection criteria described in subdivision (a).
(c)(1)Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to the state boards development and adoption of the guidelines and selection criteria pursuant to this section.
(2)Guidelines and selection criteria developed by the state board pursuant to this section shall not abridge, alter, or amend any regulations or protocols issued by the state board relating to participation of a geologic carbon sequestration demonstration project in the Low Carbon Fuel Standard Program (Subarticle 7 (commencing with Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations).
(3)Guidelines and selection criteria developed by the state board pursuant to this section shall not promote or facilitate enhanced oil recovery or fossil fuel production.
(d)Upon the adoption of the guidelines and selection criteria pursuant to this section, the state board shall submit, in compliance with Section 9795 of the Government Code, copies of the guidelines and selection criteria to the fiscal and appropriate policy committees of the Legislature.
71287.(a)The Hub for Innovation in Geologic Carbon Sequestration is hereby established.
(b)The state board, in consultation with the commission, shall administer the innovation hub to do all of the following:
(1)Advance the development of geologic carbon sequestration technology and projects not associated with enhanced oil recovery or fossil fuel production.
(2)Coordinate research efforts regarding geologic carbon sequestration technology.
(3)Promote commercial applications of geologic carbon sequestration technology in furtherance of the states greenhouse gas reduction goals.
(c)(1)The innovation hub, if feasible, shall be located at a University of California, California State University, or California Community College campus in physical proximity to one or more of the geologic carbon sequestration demonstration projects approved by the state board pursuant to this part.
(2)The innovation hub shall include facilities for use by state agencies, University of California, California State University, and California Community College researchers, economic development organizations, and industry members to develop and collaborate on innovative geologic carbon sequestration strategies and technologies not associated with enhanced oil recovery or fossil fuel production.
71291.For purposes of this part, the provisions of Article 3 (commencing with Section 3640) of Chapter 3.5 of Division 3 respecting unit agreements shall apply as if incorporated herein.
71293.(a)Title to any geologic storage reservoir is vested in the owner of the overlying surface estate unless it has been severed and separately conveyed.
(b)A conveyance of the surface ownership of real property shall be a conveyance of any geologic storage reservoir below the surface of the real property unless the ownership interest in the geologic storage reservoir previously has been severed from the surface ownership or is explicitly excluded in the conveyance. The ownership of a geologic storage reservoir may be conveyed in the manner provided by law for the transfer of mineral interests in real property. No agreement or instrument conveying a mineral or other interest underlying the surface shall act to convey ownership of a geologic storage reservoir unless the agreement explicitly conveys that ownership interest.
(c)(1)An instrument that transfers the rights to a geologic storage reservoir under this section shall include both of the following:
(A)A description of the scope of any right of the owner of the geologic storage reservoir to use the surface estate.
(B)A specific description of the location of the geologic storage reservoir, including a subsurface geologic or seismic survey or a metes and bounds description of the surface overlying the geologic storage reservoir and any depths or portions of the subsurface that are excluded from the geologic storage reservoir being transferred.
(2)The owner of a geologic storage reservoir right shall have no right to use the surface estate beyond that set out in a properly recorded instrument.
(d)Nothing in this section shall alter, amend, diminish, or invalidate a right to the use of a geologic storage reservoir that was acquired by contract or lease prior to the effective date of this part.
71295.For purposes of a geologic carbon sequestration project other than a geologic carbon sequestration demonstration project approved by the state board pursuant to this part, the geologic carbon sequestration project operator, or its designee, shall have title to the carbon dioxide injected into and stored in a geologic storage reservoir associated with the project, including all rights and interests in, and all responsibilities associated with, carbon dioxide stored in the geologic storage reservoir, and liability for any and all damages caused by the project.
71297.(a)For purposes of environmental review pursuant to the California Environmental Quality Act (CEQA) (Division 13 (commencing with Section 21000)) of a geologic carbon sequestration project, including, a geologic carbon sequestration demonstration project approved by the state board pursuant to this part, the state board is the lead agency.
(b)For purposes of environmental review pursuant to CEQA of a geologic carbon sequestration project, including a geologic carbon sequestration demonstration project approved by the state board pursuant to this part, the responsible agencies are as follows:
(1)The State Geologist, for all activities related to the subsurface, well and reservoir engineering, wellhead infrastructure, and well site safety.
(2)The State Fire Marshal, for carbon dioxide pipelines.
(3)The State Water Resources Control Board, for impacts to water quality.
(4)The local air quality management district or air pollution control district, for impacts to air quality and carbon dioxide monitoring, reporting, and verification requirements.
(5)The Department of Fish and Wildlife, for impacts to species and natural resources.
71298.(a)On or before January 1, 2025, the state board shall adopt regulations creating a coordinated state permitting process for approval of geologic carbon sequestration projects, including a single unified permit for submission by developers or sponsors of geologic carbon sequestration projects. The single unified permit described in this subdivision shall incorporate the requirements for all approvals from state and local agencies necessary to approve a geologic carbon sequestration project, as applicable, including, but not limited to:
(1)The state board and local air quality management districts and air pollution control districts, for air quality and greenhouse gas matters.
(2)The State Water Resources Control Board and regional water quality control boards, for underground injection and water quality matters.
(3)The State Fire Marshal, for pipeline safety matters.
(4)The Public Utilities Commission, for pipeline permitting matters.
(5)The State Lands Commission and local zoning, land use, and planning agencies, for pipeline siting matters.
(6)Local zoning, land use, and planning agencies, for local land use and pore space ownership matters.
(b)The state board shall consult with each of the agencies described in subdivision (a), and any other state or local agencies identified by the state board, to develop the single unified permit process described in subdivision (a).
(c)In developing the single unified permit process described in subdivision (a), the state board shall, where possible, do both of the following:
(1)Consult with relevant federal agencies and local governments regarding the process.
(2)Incorporate relevant federal permits into the process.
(d)The state board shall oversee the single unified permit process described in subdivision (a). The state board shall adopt regulations as necessary to implement the single unified permit process and ensure a streamlined application process for applicants.
(e)The single unified permit process developed by the state board pursuant to subdivision (a) shall not eliminate, abridge, or reduce the substantive review or approval of the individual permits for which requirements are included in the process. As part of single unified permit process, the state board shall, where possible, eliminate or streamline duplicative administrative requirements.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SECTION 1.Section 39740.2 of the Health and Safety Code is amended to read:39740.2.(a)No later than July 1, 2023, the Natural Resources Agency, in coordination with the California Environmental Protection Agency, the state board, the Department of Food and Agriculture, and other relevant state agencies, shall establish the Natural and Working Lands Climate Smart Strategy and shall update the strategy every four years thereafter. In developing this strategy, the agencies shall do all of the following:(1)Create a framework to advance the states climate goals.(2)Consider, based on the best available estimates, how increasing fire risk, warming temperatures, decreasing precipitation, and other climate change impacts will affect the ability of the state to sequester carbon on natural and working lands.(3)Support the economic and resource value of the lands and consider multiple benefits.(4)Support pathways for sectors, such as agriculture and forestry, to participate in the transition to a carbon neutrality economy.(5)Collect public feedback and conduct outreach.(6)Seek to align funding mechanisms to advance the strategy.(b)The state board, as part of its scoping plan prepared pursuant to Section 38561, shall establish carbon dioxide removal targets for 2030 and beyond, and shall take into consideration the Natural and Working Lands Climate Smart Strategy, science-based data, cost-effectiveness, and technological feasibility in setting the targets pursuant to this subdivision. The state board shall consider a range of targets, including those in line with the special report prepared by the United Nations Intergovernmental Panel on Climate Change (IPCC) entitled Global Warming of 1.5 degrees Celsius, issued October 6, 2018, and leading carbon removal commitments globally, as well as recent and emerging research on carbon dioxide removal potential in California and market and technology conditions.(a)No later than July 1, 2023, the Natural Resources Agency, in coordination with the California Environmental Protection Agency, the state board, the Department of Food and Agriculture, and other relevant state agencies, shall establish the Natural and Working Lands Climate Smart Strategy. Strategy and shall update the strategy every four years thereafter. In developing this strategy, the agencies shall do all of the following:
(1)Create a framework to advance the states climate goals.
(2)Consider, based on the best available estimates, how increasing fire risk, warming temperatures, decreasing precipitation, and other climate change impacts will affect the ability of the state to sequester carbon on natural and working lands.
(3)Support the economic and resource value of the lands and consider multiple benefits.
(4)Support pathways for sectors, such as agriculture and forestry, to participate in the transition to a carbon neutrality economy.
(5)Collect public feedback and conduct outreach.
(6)Seek to align funding mechanisms to advance the strategy.
(b)The state board, as part of its scoping plan prepared pursuant to Section 38561, shall establish carbon dioxide removal targets for 2030 and beyond, and shall take into consideration the Natural and Working Lands Climate Smart Strategy, science-based data, cost-effectiveness, and technological feasibility in setting the targets pursuant to this subdivision. The state board shall consider a range of targets, including those in line with the special report prepared by the United Nations Intergovernmental Panel on Climate Change (IPCC) entitled Global Warming of 1.5 degrees Celsius, issued October 6, 2018, and leading carbon removal commitments globally, as well as recent and emerging research on carbon dioxide removal potential in California and market and technology conditions.
|
Date
|
Status
|
|---|---|
| Sep 16, 2022 | Chaptered by Secretary of State. Chapter 359, Statutes of 2022. |
| Sep 16, 2022 | Approved by the Governor. |
| Sep 2, 2022 | Enrolled and presented to the Governor at 1 p.m. |
| Aug 31, 2022 | Assembly amendments concurred in. (Ayes 29. Noes 9. Page 5401.) Ordered to engrossing and enrolling. |
| Aug 31, 2022 | In Senate. Concurrence in Assembly amendments pending. |
| Aug 31, 2022 | Assembly Rule 96 and 63 suspended. |
| Aug 28, 2022 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR. |
| Aug 25, 2022 | Read third time and amended. |
| Aug 17, 2022 | Read second time. Ordered to third reading. |
| Aug 16, 2022 | Read second time and amended. Ordered to second reading. |
| Aug 15, 2022 | From committee: Do pass as amended. (Ayes 12. Noes 4.) (August 11). |
| Aug 3, 2022 | August 3 set for first hearing. Placed on suspense file. |
| Jun 23, 2022 | Read second time and amended. Re-referred to Com. on APPR. |
| Jun 22, 2022 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (June 20). |
| Jun 13, 2022 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on NAT. RES. |
| Jun 2, 2022 | Referred to Com. on NAT. RES. |
| May 25, 2022 | In Assembly. Read first time. Held at Desk. |
| May 24, 2022 | Read third time. Passed. (Ayes 27. Noes 9. Page 3882.) Ordered to the Assembly. |
| May 23, 2022 | Read second time. Ordered to third reading. |
| May 19, 2022 | From committee: Do pass as amended. (Ayes 5. Noes 2. Page 3774.) (May 19). |
| May 13, 2022 | Set for hearing May 19. |
| May 2, 2022 | May 2 hearing: Placed on APPR suspense file. |
| Apr 22, 2022 | Set for hearing May 2. |
| Apr 21, 2022 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 2. Page 3457.) (April 20). Re-referred to Com. on APPR. |
| Apr 18, 2022 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on ED. |
| Apr 6, 2022 | Set for hearing April 20. |
| Mar 28, 2022 | From committee: Do pass and re-refer to Com. on ED. (Ayes 5. Noes 2. Page 3238.) (March 28). Re-referred to Com. on ED. |
| Mar 8, 2022 | Set for hearing March 28. |
| Mar 3, 2022 | Referral to Com. on N.R. & W. rescinded because of the limitations placed on committee hearings due to ongoing health and safety risks of the COVID-19 virus. |
| Mar 2, 2022 | Re-referred to Coms. on E.Q., ED., and N.R. & W. |
| Feb 18, 2022 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Feb 9, 2022 | Referred to Com. on RLS. |
| Feb 7, 2022 | Art. IV. Sec. 8(a) of the Constitution dispensed with. |
| Feb 3, 2022 | From printer. May be acted upon on or after March 5. |
| Feb 2, 2022 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 31, 2022 | SB 905 Caballero Senate Third Reading | Assembly Floor |
Passed |
|
| Aug 31, 2022 | Unfinished Business SB905 Caballero et al. Concurrence | Senate Floor |
Passed |
|
| May 24, 2022 | Senate 3rd Reading SB905 Skinner et al. | Senate Floor |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
Bill Co-Author(s):
