Environmental & Energy
Oct. 7, 2026
Regulating the market for pore space: California's attempt to map out a new frontier
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.
In 2022, the California Legislature enacted Senate Bill (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 derail a carbon capture and sequestration (CCS) project or leverage a m...
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