SB 643: Carbon Dioxide Removal Purchase Program.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. Existing law requires the state board to establish a Carbon Capture, Removal, Utilization, and Storage Program, as provided, to evaluate the efficacy, safety, and viability of carbon capture, utilization, or storage technologies and carbon dioxide removal technologies and facilitate the capture and sequestration of carbon dioxide from those technologies, where appropriate. Existing law requires the Secretary of the Natural Resources Agency, in consultation with the state board, to publish a framework 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 require the state board to establish and administer the Carbon Dioxide Removal Purchase Program as a competitive grant process for eligible carbon dioxide removal projects, as specified. The bill would require the state board, on or before January 1, 2028, and annually thereafter, to conduct and publish on its internet website a survey of carbon dioxide removal projects existing or in development within the state, and, on or before December 31, 2027, and annually thereafter, until December 31, 2035, to publish on its internet website a report describing Carbon Dioxide Removal Purchase Program activities completed and carbon dioxide removal projects to date, as specified. The bill would require the state board, on or after July 1, 2026, but on or before December 31, 2035, to fund carbon dioxide removal projects in an amount totaling $50,000,000. The bill would authorize up to 10% of that amount to be used to supplement necessary administrative costs in establishing the program. The bill would prohibit carbon dioxide removal projects from exceeding $25,000,000 of grants toward qualified carbon dioxide removals in any one of specified project categories or $12,500,000 of grants towards any one individual carbon dioxide removal project sponsor, except as specified. The bill would require that eligible carbon dioxide removal projects permanently retire the contracted tons of removed carbon dioxide from any future carbon dioxide removals credit issuance. The bill would require the state board, on or before January 1, 2028, to adopt guidelines, including the definition of an eligible carbon dioxide removal project, for the program, which the bill would require to be consistent with certain provisions governing carbon dioxide capture, removal, or sequestration projects, as specified. The bill would make implementation of these provisions contingent upon an appropriation by the Legislature for purposes of the program. The bill would require all funds to be available for encumbrance or expenditure until June 30, 2035, and to be available for liquidation until June 30, 2035.

Sponsors

Sponsors by party (alphabetical): Democratic 2 · Republican 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. March 2, 2026Veto sustained.
2. March 2, 2026Stricken from file.
3. October 13, 2025In Senate. Consideration of Governor's veto pending.
4. October 13, 2025Vetoed by the Governor.
5. September 23, 2025Enrolled and presented to the Governor at 2 p.m.
6. September 12, 2025Assembly amendments concurred in. (Ayes 37. Noes 0. Page 2986.) Ordered to engrossing and enrolling.
7. September 12, 2025In Senate. Concurrence in Assembly amendments pending.
8. September 11, 2025Read third time. Passed. (Ayes 78. Noes 1. Page 3274.) Ordered to the Senate.
9. September 3, 2025Ordered to third reading.
10. September 3, 2025Read third time and amended.
11. September 2, 2025Read second time. Ordered to third reading.
12. August 29, 2025From committee: Do pass. (Ayes 15. Noes 0.) (August 29).