California Air Resources Board

Summary 

Would have allowed the California Natural Resources Agency to authorize teal carbon demonstration projects and develop, with consultation from CARB and other parties, a teal carbon demonstration project program starting January 1, 2028. The bill would have also allowed the California Coastal Commission (Commission) to authorize blue carbon demonstration projects and develop, with CARB and other parties, a blue carbon demonstration project program. The bill would have allowed the Commission to require an applicant with a nonresidential project that impacts coastal wetland, subtidal, intertidal, or marine habitats or ecosystems to build or contribute to a blue carbon demonstration project. The bill would have required these provisions (both teal and blue carbon demonstration projects programs) to be implemented only upon an appropriation by the Legislature for its purposes.

View full bill text here

Governor’s Veto Message

To the Members of the California State Assembly:

I am returning Assembly Bill 1992 without my signature.

This bill would authorize the California Coastal Commission and the California Natural Resources Agency to facilitate the development of blue and teal carbon demonstration projects in certain coastal areas and inland wetlands.

California is a global leader in advancing nature-based carbon capture and sequestration solutions, having built and expanded our portfolio of actions over decades. In fact, between 2020 and 2023 alone, the State invested approximately $9.6 billion in nature-based solutions. Additionally, I signed Assembly Bill 1757 (C. Garcia) in 2022, which required the State to develop achievable carbon removal targets for natural and working lands. This same year, the Natural and Working Land Climate Smart Strategy cataloged over 350 efforts across State agencies to deliver meaningful nature-based solution climate action.

While I share the author's desire to accelerate novel nature-based climate solutions, this bill creates a new, unfunded program. In partnership with the Legislature this year, my Administration has enacted a balanced budget that avoids deep program cuts to vital services and protected investments in education, health care, climate, public safety, housing, and social service programs that millions of Californians rely on. It is important to remain disciplined when considering bills with significant fiscal implications that are not included in the budget, such as this measure.

For these reasons, I cannot sign this bill.

Sincerely,

Gavin Newsom

View Governor’s veto message here