California Resources Corp. begins first carbon storage project at Elk Hills

California Resources Corp. has begun burying carbon dioxide at Elk Hills, a century-old oil field in Kern County, marking the state’s first carbon storage project. While the U.S. Environmental Protection Agency has approved the injections, the project proceeds despite California lacking its own specific regulatory framework for carbon storage.

State lawmakers previously mandated that regulators establish rules by January 2025 to govern monitoring, cleanup costs, and permit coordination. However, the California Air Resources Board has not yet adopted these rules. This regulatory gap raises concerns regarding liability and the ability of the state to hold companies accountable if leaks occur.

Proponents, including Governor Gavin Newsom, view the project as a vital innovation for meeting climate goals. The technology is considered essential by regulators to reach significant emissions reduction targets. Meanwhile, critics and legal representatives from Earthjustice have raised questions about long-term responsibility for potential environmental impacts.