California Enacts Law to Spur Carbon Capture Investment and Pipeline Development

California Governor Gavin Newsom on Oct. 10 signed legislation to advance the state’s growing carbon capture, removal, and storage market, marking another milestone in its climate leadership. The measure, Senate Bill 614, authorizes the development of dedicated pipelines to safely transport carbon dioxide captured from industrial facilities or directly from the atmosphere to underground sites for permanent storage. The law establishes a key foundation for large-scale deployment of carbon management technologies critical to achieving the state’s decarbonization goals.

This legislation builds on California’s existing Climate Commitment, which in 2022 introduced a comprehensive regulatory framework for carbon capture and sequestration projects through SB 905. The new measure complements that framework by supporting the safe and regulated construction of carbon dioxide pipelines, connecting capture sites with approved storage locations. Together, these measures are designed to accelerate investment and innovation in a sector that is still emerging globally, positioning California as a leading hub for carbon removal technologies.

The announcement comes as the federal government shifts away from policies that previously supported such projects, prompting California to strengthen its own incentives. State officials emphasized that the legislation will create new economic opportunities, attract private investment, and generate high-quality jobs while helping cut climate pollution linked to extreme weather.

In another measure, SB 840 allocates $85 million in the 2026–27 budget from the Greenhouse Gas Reduction Fund to advance climate technology research and support deployment of carbon capture and removal projects. The fund is backed by revenue from the state’s Cap-and-Invest program, which prices carbon emissions to drive reductions across sectors.

California continues to show measurable progress in its clean energy transition. Greenhouse gas emissions have declined 20 percent since 2000, while the state’s economy expanded by 78 percent, making it the world’s fourth-largest economy. Clean energy supplied two-thirds of California’s power in 2023, and battery storage capacity has increased to more than 15,000 megawatts, a 1,900 percent rise since 2019. The new law reinforces California’s trajectory toward a resilient, low-carbon economy driven by innovation and strong climate policy.