An oil field became California’s first carbon vault. Who’s responsible if something goes wrong?

Nearly four years ago, California lawmakers ordered state regulators to prepare for an industry that promised a new way to fight climate change: permanently burying carbon dioxide underground. The law called for rules governing how companies would monitor stored carbon and respond if something failed, setting a January 2025 deadline to address financial responsibilities and establish a single application for permits. However, California has not adopted its carbon storage rules nearly 19 months after that deadline.

In May, California Resources Corp. began burying carbon at Elk Hills, a vast oil field in Kern County, which has become an important test run for carbon storage. The U.S. Environmental Protection Agency approved the injections, marking it as the only known project of its kind in the United States. Without its own rules, California cannot enforce stricter standards than the federal government or ensure that the carbon remains underground.

The California Air Resources Board is tasked with writing the carbon storage rules, but it has indicated that staffing issues have hindered timely completion. The project is expected to earn billions in public funding, partly from federal tax credits and California drivers, if it scales up as planned. Stakeholders are concerned about the lack of a clear regulatory framework and the accountability of companies involved in the project.