38562.3.
(a) For purposes of this section, the following definitions apply:
(1) “Agricultural residues” means agricultural crop residues and waste biomass associated with horticultural or agronomic practices, such as pruning or removal of plant biomass from agricultural sources that were not grown primarily for the purpose of supplying biomass energy or carbon removal processes.
(2) “Carbon dioxide equivalent” has the same meaning as defined in Section 38505.
(3) “Carbon dioxide removal” means a net reduction of carbon dioxide from the atmosphere by a process that uses biological means, chemical means, physical means, or any combination of these means, and that puts the removed carbon atoms into a form of carbon sequestration, including the use of CDR technology, as defined in Section 39741, and carbon dioxide removal through the use of nature-based climate solutions, as defined in Section 38561.5. The carbon dioxide removal process may remove carbon from the atmosphere directly or indirectly, including by direct air capture or using carbon stored in biomass or soil or absorbed in water, but may not represent only an avoidance or reduction of greenhouse gas emissions.
(4) “Carbon sequestration” means storing carbon atoms in a geological location or in a stable chemical or biological form so that the geological location or the stable chemical or biological form keeps the carbon atoms from reentering the atmosphere as a greenhouse gas for an extended period of time.
(5) “Durable carbon dioxide removal” means either of the following:
(A) A type of qualified carbon dioxide removal that uses a form of durable carbon sequestration.
(B) Any other type of qualified carbon dioxide removal that, at the end of the guarantee period for its carbon sequestration, is coupled with an enforceable commitment to provide an equal quantity of qualified carbon dioxide removal meeting the criteria of subparagraph (A).
(6) “Durable carbon sequestration” means carbon sequestration that uses a form of long-term carbon storage with requirements for financial responsibility and longevity consistent with, or equivalent to, those required under Section 39741.5, as determined by the state board.
(7) “Forestry residues” means byproducts of sustainable forest management, biomass that is removed to reduce the risk of wildfires, wood processing wastes, and residues from forest product manufacturing processes.
(8) “Guarantee period” means the period of time during which an entity is responsible for ensuring that sequestered carbon remains in storage and for replacing any losses in excess of expected attrition or established buffers.
(9) “Municipal organic waste” means organic wastes that are separated or diverted from the municipal solid waste stream, organic wastes from municipal wastewater treatment processes, and other non-marketable biogenic wastes created by non-agricultural commercial or industrial processes.
(10) “Natural and working lands” has the same meaning as defined in Section 39740.1.
(11) “Short-lived climate pollutants” has the same meaning as defined in Section 39730.
(12) “Qualified carbon dioxide removal” means carbon dioxide removal that meets all of the following:
(A) If the carbon dioxide removal process requires terrestrial biomass as a feedstock, it only uses biomass from agricultural residues, forestry residues, or municipal organic waste.
(B) The carbon dioxide removal process is not used for purposes of enhanced oil recovery, including the facilitation of enhanced oil recovery from another well.
(C) The carbon dioxide removal process is consistent with the requirements of paragraph (3) of subdivision (a) Section 39741.1, as applicable, as determined by the state board.
(b) For the purpose of meeting, or tracking progress against, any state goal, target, or legal requirement to achieve net zero emissions of greenhouse gases, including pursuant to Section 38561.2, Section 38562.2, and Section 38562.4, or for the purpose of reporting offsets against any of a reporting entity’s greenhouse gas emissions as part of reporting required pursuant to Section 38532, all of the following shall apply:
(1) Only qualified carbon dioxide removal may be used to reduce counterbalance the state’s or an entity’s net remaining greenhouse gas emissions, including to counterbalance the net emissions of greenhouse gases, if any, from the state’s natural and working lands.
(2) The qualified carbon dioxide removal used to counterbalance each type of greenhouse gas emissions for purposes of paragraph (1) shall use a form of carbon sequestration with substantially equivalent duration to the longevity of the form of storage from which the greenhouse gas was released when emitted or the longevity of the greenhouse gas in the atmosphere once emitted, subject to all of the following:
(A) Emissions of carbon dioxide from fossil fuels or from carbon that was previously held in a stable, long term mineral form, such as a carbonate rock, may only be counterbalanced by durable carbon dioxide removal.
(B) Emissions of carbon dioxide from relatively short-term forms of storage in the natural carbon cycle, such as from soils and biological forms, may be counterbalanced by negative net emissions from natural and working lands or by other qualified carbon dioxide removal with carbon sequestration of at least equivalent storage duration.
(C) Emissions of short-lived climate pollutants may be counterbalanced by an equal quantity, on a carbon dioxide equivalent basis, of negative net emissions from natural and working lands or of other qualified carbon dioxide removal with carbon sequestration that is at least equivalent in duration to the short-lived climate pollutant’s average lifetime in the atmosphere.
(c) When reporting information for the purposes described in subdivision (b), an entity responsible for that reporting shall provide the amount of greenhouse gas emissions and the amount of qualified carbon dioxide removal used to counterbalance those emissions as separate numbers and shall provide sufficient detail about the types of greenhouse gas emissions and types of qualified carbon dioxide removals used to counterbalance those greenhouse gas emissions to demonstrate compliance with subdivision (b).
(d) This section does not restrict what can be used as an offset credit within the market-based mechanism established pursuant to Section 38562.
(e) This section does not restrict the types of voluntary carbon offsets or other tradeable instruments that may be used to meet voluntary pledges to achieve reductions in net emissions of greenhouse gases or for the reporting of progress against those pledges.