The state of California has passed three new major bills that further fortify its support for the development of carbon dioxide removal (CDR) innovations.
Bills AB1207, SB804, and SB643 help form a reliable framework for the responsible scaling of CDR, providing pathways for the different carbon removal methods to gain momentum and advance on their growth journey.
Through Bill AB1207, introduced by Assembly Members Irwin and Rivas and Senators Limón and McGuire, the state of California has included CDR into the Cap & Invest program, enabling carbon removal operations to be recognized as a compliance offset category.
The second enrolled bill, labeled SB804, reauthorizes the Greenhouse Gas Reduction Fund, including a new framework that permits CDR to be included in future climate tech innovation fund allocations.
This bill, introduced by Senator Archuleta and coauthor Assembly Member Petrie-Norris, also opens the doors for CDR projects to tap into an $85 million climate tech innovation program.
Lastly, bill SB643 requires the California State Board to establish and run the Carbon Dioxide Removal Purchase Program as a competitive grant process for eligible CDR projects.
As specified in the bill details, under the Carbon Dioxide Removal Purchase Program, the state board is required to allocate $50,000,000 in funding for CDR projects in the period between July 1, 2026, and December 21, 2035.
Additionally, bill SB643 details that eligible CDR projects need to offer additional carbon removal, and they need to prove their ability to secure purchases from third parties that cover at least the same amount as granted to the project by the state of California.
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Projects approved for a grant under this program will need to be active in at least two of the following categories: Direct Air Capture (DAC), biomass carbon removal and storage, enhanced mineralization or enhanced weathering, and marine CDR.
With these three motions, California continues to acknowledge the importance of carbon removal solutions for meeting time-sensitive climate goals.
The newly introduced CDR bills will not only cement the state’s leading position in this novel decarbonization field but are also expected to introduce significant economic and environmental benefits for the people in this U.S. state.
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