California has authorized the development of pipelines to transport captured carbon dioxide for permanent underground storage, a key step in the state’s strategy to reduce greenhouse gas emissions.

Gov. Gavin Newsom signed Senate Bill 614 into law, creating a regulatory framework for building the infrastructure needed to move captured carbon from industrial sources to sequestration sites. Proponents say the measure positions California at the forefront of the growing carbon management industry.

“Carbon management is a critical pillar of California’s world-leading efforts to cut climate pollution,” Newsom said in a statement. He added that the law will help create “good paying, skilled jobs” in an emerging 21st-century industry.

The legislation, authored by Sen. Henry Stern, D-Los Angeles, expands upon a 2022 law that first established rules for carbon capture and storage projects.

“This bill will ensure that California adopts best-in-class regulations for carbon dioxide pipeline safety through a public process,” Stern said, noting it would also encourage investment in clean energy.

The state’s strategy is backed by an $85 million allocation from its Greenhouse Gas Reduction Fund for the 2026–27 budget to advance climate technologies.

California’s push comes as the industry faces uncertainty at the federal level. A potential rollback of the Environmental Protection Agency’s Greenhouse Gas Reporting Program has raised concerns, as the program is crucial for projects to qualify for the 45Q federal tax credit, a primary incentive for private investment in carbon capture technology.

Despite the federal challenges, California passed three other major bills in September to fortify its support for carbon dioxide removal initiatives.