The U.S. Environmental Protection Agency (EPA) issued its first-ever Class VI Underground Injection Control (UIC) permits in California, giving Carbon TerraVault (CTV), a subsidiary of California Resources Corporation, the green light to store carbon dioxide underground. These old permits allow CTV to do carbon sequestration at the Elk Hills Oil Field near Bakersfield, where 1.5 million metric tons of CO₂ will be stored a year for the next 26 years. This initiative, touted as landmark legislation in efforts to combat climate change, also speaks to the critical balance between innovation and environmental safety.
This permit is approved because the Safe Drinking Water Act permits carbon injection projects that protect sources of drinking water,” said Martha Guzman, EPA Pacific Southwest Regional Administrator. The agency’s thorough permitting process reflects its commitment to protecting public health and natural resources, while promoting activities that reduce greenhouse gas emissions.
CTV’s project involves injecting CO₂ more than a mile underground into the Monterey Formation, a geological site deemed suitable for secure long-term storage. The total planned capacity for the project is nearly 38 million metric tons of CO₂ over its operational lifetime. The carbon dioxide to be stored will primarily originate from pre-combustion gas treatment at Elk Hills, with any additional sources requiring EPA approval to ensure compliance with stringent safety and environmental standards.
In issuing permits, the EPA has focused an entire spectrum of strong safeguards toward the potential risk. CTV will be forced to monitor continually well integrity, air quality, and the injected CO₂’s movement. Transparency will be required in that monitoring data will need to be accessible to the public through a specific website. The EPA further mandated the sealing of 200 abandoned wells found within the injection area properly. This will significantly reduce the likelihood of leakage to the public as well as its safety.
The seismic risks related to underground carbon storage have also been evaluated. The EPA carried out detailed seismic surveys, fault line evaluations, and historical seismic activity analyses to establish that the Monterey Formation could safely contain CO₂ without risking upward migration or triggering earthquakes. Results from these evaluations showed that the geology and containment zone are strong enough to store CO₂ safely.
“Continuous monitoring for leaks and proper sealing of abandoned wells are integral parts of this permit,” Guzman said, as she emphasized that proactive measures for the protection of groundwater and public health are imperative. The decision of the EPA is accompanied by stringent financial assurance requirements. CTV must maintain a $30 million reserve to fund well plugging, post-injection site care, and emergency responses. This money in reserve shall be reviewed each year and be realigned, in case adjustments may be required.
Despite the tremendous innovation in carbon sequestration, the project was not spared. The promising practice of storing CO₂ underground and reducing emissions from this sector, however, would not help stop methane emissions within the oil and gas sector-a major contributor to climate change, according to its critics. A comprehensive climate approach should target all the greenhouse gases and not just carbon dioxide.
The Class VI permits mark a major milestone in California’s pursuit of climate goals, reflecting the state’s commitment to innovative solutions in the mitigation of greenhouse gas emissions. However, the road ahead is far from smooth. CTV will need to navigate the federal, state, and local regulatory complex, where the EPA will be in charge at every stage, from injection through post-injection.
The Elk Hills project marks the start of what could be a paradigm shift in the way the U.S. addresses carbon management. If it succeeds, it may well become a template for other states and companies that want to exploit underground carbon storage as part of their climate strategy. But it will succeed only if it maintains the strictest safety protocols, continues to advance technology, and takes an integrated approach to addressing all aspects of climate change.
As the world begins to tackle reducing greenhouse gas emissions, EPA’s decision indicates a potential future of carbon sequestration being critical in moving the world to the low-carbon future. More importantly, this decision is now a clear evidence of how big the climate crisis issue will be in that it demands action on more broader and more integral levels.