Court Sets Aside Kern County Approval of California's First Carbon Storage Project, Carbon TerraVault I

A California judge has ruled that Kern County's approval of Carbon TerraVault I, the state's first operational carbon capture and storage (CCS) project, violated the California Environmental Quality Act (CEQA). The Kern County Superior Court issued the decision on November 2, 2026.

The court ordered Kern County to withdraw its certification of the project's environmental impact report and set aside its approval. The county can't authorize further work on the project until it completes a legally adequate review.

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What the Court Found

The project is run by California Resources Corporation (CRC) through its carbon management business, Carbon TerraVault. Judge Marcos Camacho found the environmental review didn't fully account for CO2 that could come from other industries in the future.

The court noted that the project's two underground reservoirs held four and seven times the capacity needed for CO2 from the original source. The review left out the foreseeable impacts of bringing in CO2 from eight industrial sectors, including hydrogen production, cement, steel and biomass carbon removal.

The judge also flagged gaps in how the report handled CO2 leakage, greenhouse gas emissions, air quality mitigation and the cumulative impact of other CCS developments. The county's analysis of induced seismicity and CO2 pipeline safety was upheld.

Who Brought the Case

The ruling follows a 2024 lawsuit filed by a coalition of community and conservation groups. They included the Center for Biological Diversity, the Sierra Club and the Central California Environmental Justice Network. Earthjustice and the Center on Race, Poverty & the Environment represented several of the petitioners.

"We are so grateful that the court recognized what Kern County failed to see and gave community concerns the serious consideration they deserve," said Ileana Navarro, policy associate with Central California Environmental Justice Network.

According to the plaintiffs, the decision means CRC must pause project operations until the county complies with the law. Whether CRC will appeal or pursue a revised environmental review remains unresolved.

A Project Already Storing CO2

CTV I began injecting CO2 at CRC's Elk Hills Field in May 2026, using emissions from the company's cryogenic gas plant. At full capacity, its 26R reservoir can store up to 1.46 million metric tons of CO2 a year, with total storage potential of 38 million metric tons.

The 26R reservoir was the first in California to receive final Class VI permits from the U.S. Environmental Protection Agency. It's part of a joint venture between CRC and Brookfield.

Expansion Plans Continue

The ruling lands as CRC keeps growing its storage pipeline. On November 2, Carbon TerraVault submitted a new Class VI permit application for about 57 million metric tons of storage, bringing its total submitted permit volumes to roughly 409 million metric tons.

The company also signed a memorandum of understanding with Bloom Energy to evaluate 1 GW or more of solid-oxide fuel cell power paired with CCS in California.

"We are focused on expanding our carbon storage portfolio through alliances like this to accelerate commercialization of CCS," said Francisco Leon, CRC President and Chief Executive Officer.

At its core, the decision centers on how a storage project's environmental review must account for CO2 that may later arrive from other industrial sources.

About California Resources Corporation

California Resources Corporation is an independent energy and carbon management company based in Long Beach, California. Through Carbon TerraVault, it develops services to capture, transport and permanently store CO2 for customers, with a portfolio of CCS projects across the San Joaquin and Sacramento basins.