Carbon C sequestration in terrestrial ecosystems and geologic formations provides a significant opportunity for California to address global climate change. The physical size of its resources (e.g., forests, agriculture, soils, rangeland, and geologic formations) and the expertise in California provides a substantial foundation for developing C sequestration activities. Furthermore, the co-benefits c sequestration - such as improved soil and water quality, restoration of degraded ecosystems, increased plant and crop productivity, and enhanced oil recovery - are significant. In fact, C sequestration often represents a "no regrets" strategy - implementing C sequestration provides multiple benefits, even without the advent of global climate change. Nevertheless, researchers need to address several issues to determine more accurately the potential, benefits, and costs of sequestering C in California's terrestrial ecosystems and geologic formations, as well as to identify the most promising sequestration methods and their optimal implementation. One key issue is the type of regulatory constraints facing developers of C sequestration projects: what permits are needed for developing these projects? The permitting process may impede the penetration of sequestration technologies into the market if the costs (including transaction costs) of obtaining the permits are too burdensome and costly. For example, at least nine federal regulations and seven state regulations will potentially influence C sequestration projects in California. This paper also provides an example of the types of permits needed for developing a C sequestration project, using California as an example. It is possible that a C sequestration project may have to obtain a total of 15 permits (3 federal, 6 state, 6 local), before it even starts to operate. In the concluding section, we offer some suggested areas for research and activities for policy makers.
