The Nickel Report

On May 7, the California Air Resources Board (CARB) announced “Concepts for Potential Regulations for Establishing the Carbon Capture, Removals, Utilization, and Storage (CCUS) Program.” This draft document released by CARB staff furthers the agency’s obligation under California’s Senate Bill 905 (SB 905), which we previously reported on here, to adopt regulations establishing a state permitting framework for approval of CCUS projects.

The preliminary concepts are non-binding but provide insight into CARB’s development of the CCUS regulatory program. The draft identifies potential standardized definitions both for CCUS and for carbon dioxide removals (CDR), as well as outlines key aspects of potential regulations, including applicability, monitoring, reporting, financial responsibility, and CCUS and CDR protocols.

The draft concepts document references and generally incorporates the U.S. Environmental Protection Agency’s Safe Drinking Water Act Underground Injection Control Class VI regulations but includes some notable additional requirements, such as seismic monitoring and risks, post-injection site care and monitoring periods, and financial responsibility requirements.

One of the key components of the program would be the creation of an online reporting database through which the public could access project data, project plans, and compliance status. Per the proposal, the program would apply to the following CCUS and CDR projects:

1. Carbon capture from large emissions sources with permanent geologic storage or storage through utilization pathways;
2. Direct air capture with permanent geologic storage or storage through utilization pathways;
3. Bioenergy with carbon capture and storage (BECCS);
4. Depleted oil and gas reservoir storage;
5. Saline aquifer reservoir storage; and
6. Mafic and ultramafic reservoir storage.

 Concepts for Potential Regulations for Establishing the Carbon Capture, Removals, Utilization, and Storage Program at 12.

The draft reiterates that carbon dioxide injection into Class II wells for purposes of enhanced oil recovery is prohibited in California except for those projects that predated S.B. 905’s enactment.

CARB is seeking public input on the 28-page draft as part of its pre-rulemaking activity to develop the CCUS regulatory program, as directed by SB 905. CARB requests input on a variety of topics, including applicability and monitoring and reporting requirements. For example, CARB is seeking input on whether the program should apply to “non-CO₂ geologic storage methods, such as bio-oil, storage in building materials, and other storage mediums.” The draft also seeks feedback on whether CARB should adopt key definitions from US EPA’s Class VI regulations or CARB’s own Low Carbon Fuel Standard Carbon Capture and Sequestration Protocol, or create a hybrid set of definitions.

CARB has not provided an anticipated date by which it will begin formal rulemaking despite its initial deadline under S.B. 905 to issue final regulations by January 1, 2025. CARB is accepting comments on the draft concepts through June 5, 2026.