The Senate Budget and Fiscal Review Subcommittee No. 2 on Resources, Environmental Protection, and Energy convened on May 1, 2025, to discuss critical updates regarding California's carbon capture and utilization strategies, as well as the introduction of E15 fuel.

The meeting began with a focus on the implementation of Senate Bill 905 (SB 905), enacted in 2022, which mandates the California Air Resources Board (CARB) to establish a carbon capture and utilization storage program. This program aims to evaluate carbon capture, utilization, and storage (CCUS) technologies, develop monitoring protocols, and ensure that projects prioritize air quality and public health. The discussion highlighted the need for permanent staffing to support these initiatives, as the current limited-term positions are set to expire next year. CARB officials expressed concerns about their ability to meet the requirements of SB 905 without additional permanent positions, emphasizing the urgency of legislative approval for these roles.

Senator McNerney raised questions regarding the timeline for developing regulations related to carbon sequestration, noting the lengthy process that could take three to four years. CARB representatives acknowledged the challenges faced in hiring qualified staff and the need for community engagement in the regulatory process. They indicated that foundational work is underway, including contracts with national labs to assess CCUS technologies, but the formal rule-making process has not yet begun.

The conversation also touched on community protections outlined in SB 905, which require CARB to ensure that operators of CCUS projects have the financial capability to address potential issues, such as leaks or accidents. The representatives assured that existing environmental regulations would remain in place, and they would work closely with local agencies to address community concerns.

In a subsequent agenda item, CARB requested funding and permanent positions to facilitate the evaluation and potential authorization of E15 fuel, which contains up to 15% ethanol. This request aligns with directives from the governor to prioritize E15 in California's fuel system. The subcommittee discussed the scientific evaluations necessary to assess the environmental and public health impacts of this fuel blend.

Overall, the meeting underscored the critical need for enhanced staffing and resources to advance California's ambitious climate goals, particularly in the areas of carbon capture and alternative fuels. The subcommittee's discussions highlighted the importance of timely action to ensure that California can effectively implement its environmental policies and meet its carbon neutrality targets by 2045.