California Advances Carbon Capture and Removal Regulations Under SB 905

California is moving toward a comprehensive regulatory framework for carbon capture, utilization and storage (CCUS) and carbon dioxide removal (CDR). The California Air Resources Board (CARB) published preliminary regulations and supporting documents on October 20, 2026, establishing proposed requirements for project monitoring, geological storage, financial responsibility and environmental protection.

Developed under Senate Bill 905 (SB 905), the proposed framework aims to support carbon management deployment while strengthening oversight of project safety and long-term carbon storage. CARB expects a 45-day public comment period to begin October 30 and end December 14, 2026. The agency has emphasized that the preliminary materials may change before formal rulemaking begins.

>> In Other News: Why a Japanese Power Giant Is Betting on Denver's Koloma

New Monitoring and Financial Requirements for Carbon Storage

The proposed California Carbon Capture, Removal, Utilization and Storage Program introduces additional oversight requirements for qualifying carbon capture projects, carbon removal operations and geological storage facilities.

Key provisions address operational monitoring, reporting, emergency response planning and financial responsibility. Geological storage operators would face enforceable requirements intended to maintain accountability for underground carbon dioxide storage and protect surrounding communities.

CARB's proposal also addresses monitoring and reporting practices designed to identify potential storage integrity problems and improve public access to project information.

The regulations would complement existing federal, state and local environmental requirements, including protections governing underground injection activities. CARB intends to avoid unnecessary duplication while establishing additional safeguards required under California law.

California Proposes Changes to Existing Climate Programs

The regulatory package extends beyond individual project operations. It includes proposed amendments to California's Low Carbon Fuel Standard, greenhouse gas emissions reporting rules and the state's Cap-and-Invest program.

CARB has also proposed revisions to its carbon sequestration protocols, including requirements concerning geological carbon storage and the accounting methods used to demonstrate permanent sequestration.

These changes could affect how project operators document captured carbon dioxide, report storage activities and demonstrate compliance with applicable climate program requirements.

Another component of SB 905 involves coordinating permit applications across regulatory agencies. The legislation directs CARB to develop a unified permit application process while preserving the responsibilities of existing permitting authorities.

What the Rules Could Mean for Carbon Capture Developers

For carbon capture companies, storage developers and carbon removal technology providers, the proposed framework could provide clearer expectations for operating in California.

However, additional monitoring obligations, reporting requirements and financial safeguards could also influence project development costs. Companies considering new facilities will need to evaluate the proposed obligations alongside existing permitting requirements.

The regulations distinguish between capturing carbon dioxide from industrial emissions and removing carbon dioxide already present in the atmosphere. Both approaches can support California's climate objectives, although their operational methods and verification requirements differ.

The state's broader climate strategy, established through Assembly Bill 1279, requires California to achieve carbon neutrality by 2045 and reduce greenhouse gas emissions at least 85% below 1990 levels by that year.

Carbon capture and removal technologies are among the approaches identified in California's climate planning for addressing emissions that remain difficult to eliminate through conventional decarbonization measures.

Public Comment Period and Regulatory Timeline

CARB's October 20, 2026, staff report identifies January 28, 2027, as the scheduled date for consideration of the proposed regulations.

Before that meeting, CARB plans to submit the rulemaking materials to the Office of Administrative Law. The anticipated public comment period will allow stakeholders to evaluate the proposed requirements and submit recommendations.

Final regulations have not yet been adopted. Their eventual requirements will depend on the formal rulemaking process, public feedback and any revisions made by CARB.

About the California Air Resources Board

The California Air Resources Board is the state agency responsible for developing and implementing programs addressing air pollution and climate change. Its regulatory responsibilities include greenhouse gas emissions reporting, transportation emissions, fuel standards and climate initiatives supporting California's long-term emissions reduction targets.