A carbon dioxide capture, removal, or sequestration project operator shall do all of the following:

(a) Maintain financial responsibility for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir. The operator shall demonstrate financial responsibility by submitting a plan to the state board to cover the short- and long-term costs associated with corrective action, well plugging and abandonment, geologic storage reservoir monitoring, site care and site closure, emergency and remedial response, liability associated with seismic activity triggered by the reservoir, or loss of carbon dioxide containment by the geologic storage reservoir, and protection of drinking water quality and public and environmental health and safety through financial responsibility instruments as determined by the state board pursuant to § 39741.5 of the Health and Safety Code, which may include, but is not limited to, bonds.

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(b) Show proof to the state board that there is binding agreement among relevant parties that drilling or extraction that may penetrate the geologic storage reservoir are prohibited to ensure public and environmental health and safety for a period of time that is sufficiently long enough to demonstrate that the risk of carbon dioxide leakage poses no material threat to public health, safety, and the environment and to achievement of net zero greenhouse gas emissions in California and that terminates no earlier than 100 years after the last date of injection of carbon dioxide into a geologic storage reservoir.

(c) Create an air monitoring and mitigation plan to measure, track, and minimize potential toxic air contaminants and criteria air pollutants from the site of the carbon dioxide capture, removal, or sequestration project and submit the plan to the state board.

(d) Avoid any significant impact on residents in communities affected by a high-cumulative exposure burden caused by a potential net-increase in air, water, and soil pollution emanating from the site of the carbon dioxide capture, removal, or sequestration project in accordance with all applicable local, state, and federal laws and requirements, including requirements to use best available control technology, as defined in § 40405 of the Health and Safety Code.

(e) Comply with § 39741.1 of the Health and Safety Code and the regulations adopted by the state board pursuant to that section.

(f) Where avoidance of increased air pollution on site from such a project is not feasible, invest in mitigation in the community location adjacent to where the carbon dioxide capture, removal, or sequestration project is located which would be exposed to or impacted by any potential increased air pollution if mitigation measures are required pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000)) for the project to address significant impacts in local air pollution.

(Added by Stats. 2022, Ch. 359, Sec. 5. (SB 905) Effective January 1, 2023.)