Elk Hills becomes California’s first carbon sequestration site

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 vault. While the U.S. Environmental Protection Agency has approved the injections, California has yet to adopt its own specific rules for carbon storage.

State lawmakers previously ordered regulators to establish guidelines for monitoring stored carbon and ensuring companies can cover cleanup costs. A January 2025 deadline has been set to address financial responsibility and permit coordination. The project represents a significant test for the industry, as companies could potentially access billions of dollars in public funding through federal tax credits, the Low Carbon Fuel Standard, and cap-and-invest programs.