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NewsKPBS Public MediaAugust 11, 2026San Diego

California lacks carbon storage safety rules as Elk Hills project begins operations

California has failed to meet its 2025 deadline to establish state-level safety and financial responsibility regulations for carbon storage projects. Consequently, the Elk Hills carbon injection site—the first of its kind in the U.S.—is currently operating under federal oversight without the stricter state-mandated standards intended to protect the public and ensure long-term accountability.

carbon captureclimate changeoil and gasenvironmental regulationpublic funding
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Why It Matters

Residents face uncertainty regarding who is legally and financially responsible for potential carbon leaks from aging oil wells near communities like Valley Acres, as the state has not yet finalized its own regulatory framework.

Key Facts

  • California missed its January 2025 deadline to adopt state-level carbon storage regulations.
  • The Elk Hills project is the first in the U.S. to inject carbon solely for permanent storage rather than oil recovery.
  • The project is currently operating under federal EPA permits, which do not require integrity testing for the hundreds of surrounding legacy oil wells.
  • FracTracker Alliance identified 913 oil and gas wells within one mile of the project's four injection wells.
  • A 2024 federal report warned that 204 wells may penetrate the rock layer intended to seal the carbon storage site.
  • The California Air Resources Board cited staffing shortages as the reason for failing to meet the regulatory deadline.
  • The project is eligible for billions in public funding through federal tax credits and California climate programs.
  • There is no clear state-level authority designated to handle emergency responses if a leak occurs through an old well.
  • The project is a joint venture between California Resources Corp. and Brookfield Asset Management.
  • The California Air Resources Board stated it likely cannot meet climate goals without expanding carbon capture.

Who's Mentioned

organizationCarbon TerraVault“Joint venture between CRC and Brookfield Asset Management.”personDanny Cullenward“Climate expert and committee vice-chair.”organizationBrookfield Asset Management“Investor partner in the carbon storage project.”personAnna Caballero“State Senator who authored the legislation regarding carbon storage.”organizationU.S. Environmental Protection Agency“Federal agency that authorized the injection wells.”locationElk Hills“Oil field site of the carbon storage project.”organizationCalifornia Resources Corp.“Primary operator of the Elk Hills carbon storage project.”other204“Number of wells identified as potentially piercing the storage seal.”other913“Number of oil and gas wells within one mile of injection wells.”locationKern County“Location of the project.”personMichelle Ghafar“Attorney for Earthjustice.”organizationCalifornia Air Resources Board“State agency responsible for drafting storage regulations.”organizationCalGEM“Division of Geologic Energy Management, responsible for oil and gas well oversig”personGavin Newsom“Governor of California who supports the project.”locationValley Acres“Community near the injection site.”