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Environmental & Energy

Oct. 7, 2026

California's carbon storage plan hits constitutional bedrock

California's proposed framework for carbon sequestration projects seeks to prevent landowner holdouts through unitization but may require significant revisions to address constitutional takings concerns and other legal and regulatory obstacles.

Jill E.C. Yung

Senior Counsel
Allen Matkins Leck Gamble Mallory & Natsis LLP

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California's carbon storage plan hits constitutional bedrock
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In 2022, the California Legislature enacted SB 905, directing the California Natural Resources Agency (CNRA) to publish a framework for developing government-sanctioned agreements to manage multiple tracts of land overlying a geologic storage reservoir for purposes of operating a carbon dioxide sequestration (storage) site. This process, known as unitization, ensures that holdout property interests cannot undermine a carbon capture and sequestration (CCS) project or leverage their minority...

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