A Kern County judge has ruled that the environmental review behind California's first operating carbon capture and storage project fell short of state law, ordering the county to redo its approval of California Resources Corporation's Carbon TerraVault 1 project at Elk Hills Field. The project had already received its first carbon dioxide injection months before the ruling came down.
Kern County Judge Marcos Camacho found that the project's environmental impact report did not fully address where the carbon dioxide would come from, how much the project would actually capture, or the potential for leaks, according to 23ABC News Bakersfield. As reported by CalMatters, the judge found that the county's review violated state environmental law and must be set aside, in part because it failed to analyze the industries expected to supply the project with carbon dioxide in the first place.
Camacho's written findings went further on the leakage question. Per Courthouse News Service, the judge wrote that “the issue of atmospheric leakage of CO2,” for example, was not “fully addressed,” and that the report “fails to adequately mitigate the project's greenhouse gas impacts.”
What Happens to the Project Now Is Disputed
Reports differ on what the ruling means for day-to-day operations at Carbon TerraVault 1. Courthouse News reported that the ruling means TerraVault must temporarily shut down, while CalMatters reported that a tracker on the company's website showed carbon injection continuing and noted that the judgment is not yet final. Earthjustice, which represented the environmental groups that sued, said the ruling requires that the county set aside its environmental review and approval and that CRC must stop all project operations until it complies with the law.
Environmental groups filed the underlying lawsuit against Kern County challenging its review of Carbon TerraVault 1, arguing the project violates California environmental law. Cesar Aguirre, affiliated with the Central California Environmental Justice Network, said the ruling advances transparency and community participation in decisions, and said carbon capture needs proper guardrails and regulations.
CRC Calls the Ruling a Setback, Points to Community Support
California Resources Corporation CEO Francisco Leon pushed back on the decision, saying it was a step in the wrong direction for addressing climate change impacts and reflected what he called a weaponization of the California Environmental Quality Act by a narrow group of special interests, per 23ABC. Leon said the project followed years of work and close consultation with surrounding communities, which he said gave the project overwhelming support, and told CalMatters that the company intends to aggressively pursue all available options to protect and advance this important project.
According to CRC's own announcement of the project's first injection, Carbon TerraVault I is located at the company's Elk Hills Field in Kern County and draws CO₂ from CRC's cryogenic gas plant. The company said it achieved its first injection on May 26, 2026.
Published figures on the project's scale vary by source. CalMatters reported the project is designed to collect up to 46 million metric tons of carbon dioxide, while CRC said its CTV I–26R reservoir has total storage potential of 38 million metric tons. Annual injection estimates also diverge: E&E News reported the project was designed to inject up to 1 million metric tons of CO₂ annually, while CRC said its CTV I–26R reservoir can store up to 1.46 million metric tons annually and has total storage potential of 38 million metric tons.
County Says It's Reviewing the Decision
Kern County is reviewing the ruling and weighing its next steps. A county spokesperson said officials are reviewing and evaluating the decision and expressed disappointment, citing the environmental review, mitigation, and consideration the county says it applied to the project.
The case lands amid a broader statewide push for carbon storage. CalMatters reported that Carbon TerraVault 1 is the first of at least nine carbon storage projects CRC plans around California, and CRC has told Decarbonfuse that it has already submitted eight additional Carbon TerraVault storage reservoirs for U.S. EPA Class VI permitting. E&E News reported that six carbon capture and storage projects were in development across California as of November 2024, underscoring how closely this Kern County fight could shape the state's broader climate strategy.
