EPA Issues Permits for Carbon Storage Wells in California

The EPA has approved California's first carbon storage wells, enabling large-scale carbon sequestration in Kern County to reduce emissions and combat climate change.

• By Robert Yaniz Jr.
• Jan 01, 2025

The U.S. Environmental Protection Agency (EPA) has issued its first Underground Injection Control (UIC) Class VI well permits in California, authorizing the construction of four carbon sequestration wells in Kern County. 

According to a recent release, the permits—granted to Carbon TerraVault JV Storage Company Sub 1, LLC (CTV)—allow for the long-term underground storage of carbon dioxide as part of a broader effort to combat climate change.

The wells, located in the Elk Hills Oil Field near Bakersfield, will inject carbon dioxide into the Monterey Formation, more than a mile below the surface. Over the 26-year project lifespan, the wells are expected to store approximately 38 million metric tons of carbon dioxide. Initial injections will use carbon dioxide sourced from pre-combustion gas treatment at the oil field, with potential for additional sources pending EPA approval.

EPA has mandated that CTV plug 200 existing wells in the area before starting injections to prevent potential leaks into underground drinking water sources. The agency has also required continuous monitoring of well integrity, groundwater quality and carbon dioxide movement. Monitoring data will be publicly accessible.

"Although carbon sequestration does not address emissions of methane -- a climate super pollutant, responsible for approximately one-third of global warming -- from the oil and gas sector, it does capture carbon dioxide," EPA Pacific Southwest Regional Administrator Martha Guzman said in a statement. "This permit is authorized because the Safe Drinking Water Act allows for carbon injection projects that protect drinking water sources. EPA worked to ensure that the permit includes important features such as continuous monitoring for carbon dioxide leaks, with that monitoring data made available to the public, and a requirement that CTV plug all abandoned wells in the area of the project — 200 — before injection. I believe this permit is protective of the public and the environment."

CTV has allocated $30 million—which will be reviewed annually by the EPA—for well plugging, emergency responses and site care throughout the project. The EPA’s decision follows an extensive review of seismic activity, geologic conditions and public comments. The permits will remain in effect until the project’s closure and completion of post-injection site care.