Court Rules California’s First Major Carbon Capture Project Violates Law

A California court ruled in favor of community, environmental justice, and conservation groups Monday, determining that Kern County’s approval of the massive Carbon TerraVault I project violated the state’s bedrock environmental law. The ruling means the county must set aside its environmental review and approval of the project and California Resources Corporation (CRC) must stop all project operations until it complies with the law.

“This is a tremendous victory for Kern County communities. We live in one of the most polluted regions in the nation, yet the county and powerful corporations attempted to push forward a project that threatened our air, water, and public health without conducting the proper environmental review required by law,” said Lupe Martinez with Delano Guardians. “Today, the law and justice are on our side. We have shown the oil and gas industry that they cannot take shortcuts at the expense of our communities. Our concerns about prolonging our dependence on dirty fossil fuels and further burdening communities already suffering from pollution cannot be ignored. We stood together and fought for what was right, and won.”

In 2024, the coalition sued over Kern County’s approval of Carbon TerraVault I, citing multiple environmental, public health, and safety issues that the county failed to address before greenlighting the first carbon capture and storage (CCS) project of its kind in California. Despite the lawsuit and the patchwork system of regulations still in development for CCS in the state, earlier this year CRC began carbon injection at the project site, located at the Elk Hills oil and gas field near Bakersfield.

According to the Kern County Superior Court ruling, the county violated the California Environmental Quality Act (CEQA) by failing to fully evaluate, disclose, and mitigate the environmental consequences of the project. The court found significant and pervasive flaws in the county’s environmental review that undermine CRC’s claims that Carbon TerraVault I will effectively reduce greenhouse gas emissions and serve as a real climate solution.

“For years, Kern County residents have raised serious concerns about increased pollution and the safety of millions of tons of CO₂ stored beneath their community. 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. “The county not only failed to uphold its environmental laws but failed its obligation to the constituents it serves.”

“This is a resounding win for communities fighting against deeply flawed proposals from the oil and gas industry that will not reduce climate impacts. It’s also a clear message that California needs to invest in real solutions like clean wind and solar to solve our energy and climate emergencies,” said Michelle Ghafar, senior attorney with Earthjustice’s California office. “We can’t waste time on ‘Hail Mary’ projects pushed by the fossil fuel industry that will only delay our progress and further entrench pollution in frontline communities.”

“This important ruling shows California’s strong environmental protection at work, exposing the potential dangers and pollution from carbon capture and storage projects,” said Victoria Bogdan Tejeda, an attorney at the Center for Biological Diversity’s Climate Law Institute. “The environmental review here failed at almost every level to demonstrate this project would be either safe or effective. This case shows just how vital it is to have strong laws like CEQA protecting Californians.”

“Kern County communities did not want yet another polluting project brought to their doorsteps, especially one that could ultimately exacerbate greenhouse gas emissions,” said Gordon Nipp, vice chair of Sierra Club’s Kern-Kaweah Chapter. “Rather than investing in harmful and expensive projects like Carbon TerraVault I, the county should be focused on meeting its environmental obligations and addressing the unacceptable pollution risks facing our residents.”

“We are thrilled with the court’s ruling and its direction to halt this dangerous project,” said Lori Pesante, Director of Sierra Club’s Kern-Kaweah Chapter. “The ruling is critically important to all Californians but especially to Kern communities who are so often on the frontlines of the oil and gas industry’s dangerous proposals.”

A broad coalition of groups concerned about TerraVault I’s serious harms filed the lawsuit. Earthjustice represented Central California Environmental Justice Network and Sierra Club, the Center for Biological Diversity represented itself, and Center on Race, Poverty & the Environment represented Committee for a Better Shafter, Delano Guardians, and Comité Progreso de Lamont.

Background

Proposed by CRC, the state’s largest oil and gas company, Carbon TerraVault I claims it will capture and inject 49 million metric tons of carbon dioxide (CO₂) into the Elk Hills oil field over 26 years. This threatens to extend the life of one of California’s oldest oil and gas fields. The CO₂ will come not just from existing operations at Elk Hills, but also from a range of polluting industries like hydrogen, cement, and steel that Kern County and CRC propose to build from scratch in the region. The Elk Hills field is covered with thousands of previously drilled oil and gas wells that increase the risk of dangerous carbon leaks.

Kern County received thousands of comments from the public during the environmental review process for Carbon TerraVault I, urging it to address the deficiencies in its analysis given the project’s long-term consequences for California’s climate goals. Many of these comments were from residents who live in communities surrounding the Elk Hills project site, a majority of whom are low-income and people of color who are already disproportionately harmed by the highest pollution burdens in California. Residents from other areas of the county who faced the build-out of new carbon pipelines to the project also submitted comments opposing it. CCS projects like Carbon TerraVault I are most commonly proposed in frontline communities across the US.