Senate panel backs $50M pilot for in‑state carbon dioxide removal projects to scale industry
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Summary
SB 643 would direct CARB to purchase and permanently retire $50 million in carbon dioxide removal credits for California-based projects to accelerate deployment of direct air capture, biomass removal, enhanced mineralization and marine carbon removal.
Sen. Anna Caballero presented SB 643 to the Senate Committee on Environmental Quality, proposing a $50 million Carbon Dioxide Removal purchase pilot to accelerate in‑state deployment of CDR pathways the state's climate strategy says will be necessary to reach long-term neutrality goals.
Sen. Caballero said state scoping plans “have stated that there is no path to carbon neutrality without carbon removal,” and she asked the committee to support a targeted purchase program to help create a market and build capacity in California. “This bill establishes the carbon dioxide removal purchase pilot program under CARB and directs CARB to purchase and permanently retire $50,000,000 in CDR credits generated by carbon removal projects by 02/1930,” she said.
Daniel Lashof, senior fellow at World Resources Institute, testified SB 643 can “jumpstart” a diverse portfolio of CDR projects and help scale removal technologies responsibly. He noted existing pilots in California remove carbon at only thousands of tons per year today while state targets call for millions of tons annually by midcentury.
Bob Epstein of Project 2030 described the bill as an economic development opportunity as well as a climate measure, saying a market signal could help keep nascent CDR companies and jobs in California rather than exporting that growth to other states.
Supporters included environmental organizations and labor unions; witnesses said CARB should prioritize projects that offer community benefits, geographic distribution and durable permanence. Committee members asked how the measure would protect environmental justice communities and sought clarity about project safeguards; the author said the bill requires community benefit plans and verification of permanence and additionality.
No formal opposition witnesses were recorded at the hearing. The committee accepted amendments and recommended the bill for further action; supporters and the author said they would continue to refine implementation details with CARB and community stakeholders.