Court Voids Approval of California Carbon Storage Project
A state court ruled Kern County's approval of the Carbon TerraVault I project violated the California Environmental Quality Act.
Updated on Nov. 4, 2026 in Environmental
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A California court ordered Kern County to withdraw its certification of the environmental impact report for Carbon TerraVault I, the state's first operational carbon capture and storage project. The ruling found the assessment failed to adequately consider sourcing carbon dioxide from other industries.
Why it matters
The decision sets a legal standard for how wider industrial CO2 sourcing must be evaluated under state environmental law before carbon storage projects proceed. It also affects California Resources Corporation's pending permit applications for additional storage capacity.
The court ordered Kern County to set aside its approval and refrain from further authorizing implementation until a legally adequate assessment is completed. Whether the company will pursue an appeal or a revised review remains unresolved.
The players
California Resources Corporation
The Los Angeles-based oil and gas producer that operates the Carbon TerraVault projects and has submitted permit volumes totaling around 409 million tonnes.
Center for Biological Diversity
A nonprofit environmental advocacy organization that opposed the Kern County approval of the project.
The details
The ruling followed opposition from environmental groups, including the Center for Biological Diversity. The court upheld the county's analysis of induced seismicity and CO2 pipeline safety risks while finding shortcomings in the assessment of CO2 leakage, greenhouse gas emissions, air quality mitigation, and cumulative impacts.
Timeline
May: Carbon TerraVault I began storing carbon dioxide at the Elk Hills Oil Field.
November 2, 2026: Carbon TerraVault submitted a new Class VI permit application.
Legal Context
The ruling applies the California Environmental Quality Act to the state's first operational carbon capture and storage project, requiring review of wider CO2 sourcing before approval. It shows how state environmental review can constrain carbon storage permitting at scale.
Residents near the Elk Hills Oil Field and Kern County will see any future CO2 storage approvals delayed until a legally adequate environmental review is completed. Local permitting decisions for similar projects may take longer as the county revises its assessment.
The takeaway
Carbon storage projects in California must undergo full environmental review that accounts for where their carbon dioxide comes from, not just the project site itself. Projects seeking expanded capacity should expect scrutiny of cumulative and upstream impacts.
Further reading
For related coverage, see Environmental news from across California.
Source note: This article includes information reported by Gasworld.
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