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 responsibility for cleanup costs and to establish a coordinated permitting process.

More than 19 months after that deadline, California has not adopted its carbon storage rules. In May, California Resources Corp. began burying carbon at Elk Hills, a century-old oil field in Kern County, making it an important test run for carbon storage in the U.S. Without state rules, California cannot enforce stricter standards than the federal government or ensure that carbon remains underground.

The California Air Resources Board has indicated that it cannot achieve its ambitious climate goals without significantly increasing the use of carbon capture technology. The Elk Hills project, while seen as a potential solution, raises concerns about regulatory authority and responsibility in the event of a carbon leak, especially given the proximity of nearby communities. The financial implications are significant, as the project could generate billions in public funding if successful.