Creation of a Carbon Capture Regulatory Framework (SB 905)

Passed by the California Legislature in September 2022, SB 905 requires the California Air Resources Board (CARB) to establish a "Carbon Capture, Removal, Utilization and Storage Program" to evaluate CCUS and carbon removal (CDR) technologies. More specifically, SB 905 requires CARB to:

• Adopt regulations for a unified permit application for the construction of CCUS projects throughout the state
• Develop a centralised database to track the deployment of CCUS and CDR technologies and projects in the state
• Adopt protocols to support additional and new methods for CO2 utilisation and CO2 storage
• Adopt financial responsibility regulations for CCUS projects that require the CO2 storage operator to maintain financial responsibility for not less than 100 years after the last date of injection

In addition, SB 905 contains several provisions on property rights around CCUS projects. One provision requires the Natural Resources Agency to publish a framework for governing agreements between property owners overlying the same geologic storage reservoir. The other provision clarifies the title of the geologic storage reservoir is vested with the owner of the overlying surface estate, unless it has already been severed.

Other requirements in SB 905 include monitoring and reporting requirements for CO2 storage operators, the establishment of a working group on CO2 storage, and state reporting requirements of any leakage or seismic activity.

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