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EPA and Texas Railroad Commission Sign Memorandum of Agreement for Permitting Geologic Storage of Carbon Dioxide

LCG, April 29, 2025--Officials from the U.S. Environmental Protection Agency (EPA) and Texas Railroad Commission (RRC) signed a memorandum of agreement (MOA) today outlining the state’s plans to administer programs related to carbon storage wells, known as Class VI wells. The MOA signing is a required step in the RRC’s application to be granted authority to permit Class VI wells in the state of Texas. EPA is currently preparing a proposed approval of RRC’s primacy application.

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Calpine and ExxonMobil Sign CO2 Transportation and Storage Agreement for CCS Project in Texas

LCG, April 24, 2025--Exxon Mobil Corporation (ExxonMobil) announced yesterday an agreement with Calpine Corporation (Calpine) to transport and permanently store up to 2 million metric tons per annum (MTA) of CO2 from Calpine’s Baytown Energy Center, a natural gas-fired facility located near Houston, Texas. This is part of Calpine’s Baytown Carbon Capture and Storage (CCS) Project that is designed to add CCS for the facility’s CO2 emissions. The Calpine facility could then provide a 24/7 supply of low-carbon electricity to the Texas grid plus steam to nearby industrial facilities.

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Industry News

Dominion Energy Virginia Receives Approval for Nearly 500 MW of New Solar Capacity

LCG, May 4, 2021--The Virginia State Corporation Commission (SCC) approved last Friday the largest group of new solar projects for Dominion Energy Virginia customers. The nine new solar facilities will total nearly 500 MW of generating capacity and represent a major step toward achieving the goals of the Virginia Clean Economy Act (VCEA) and Dominion Energy's goal of net zero emissions.

The president of Dominion Energy Virginia stated, "This is another major step forward in building a clean energy economy in Virginia. Our customers deserve reliable and affordable energy, and they also deserve a clean environment. These projects will help us deliver on that promise."

Six of the nine new solar projects are PPAs that were selected following a competitive solicitation process. Dominion Energy owns and will operate the other three projects: Grassfield Solar, a 20-MW facility in the City of Chesapeake; Norge Solar, a 20-MW facility in James City County; and Sycamore Solar, a 42-MW facility in Pittsylvania County.

Dominion Energy plans to submit this fall its annual filing to the SCC requesting approval to construct or purchase another large group of solar, wind and energy storage projects. The company will issue Requests for Proposals (RFPs) from developers to support these filings.

The VCEA was signed into law in April 2020 and established renewable portfolio standards (RPS) for Virginia that include requiring Dominion Energy Virginia to be 100 percent carbon-free by 2045 and Appalachian Power to be 100 percent carbon-free by 2050. Furthermore, the VCEA requires nearly all coal-fired plants to close by the end of 2024.

The renewable requirements in the Act established that 16,100 MW of solar and onshore wind is "in the public interest" and requires Virginia's largest energy companies to install or acquire more than 3,100 MW of energy storage capacity by 2035. Furthermore, the VCEA provides that, prior to the end of 2034, up to 5,200 MW of offshore wind generation is "in the public interest."

In any application before the SCC to construct a new generating facility, the utility must include the social cost of carbon, as determined by the Commission, and the Commission may adopt any rules it deems necessary to determine the social cost of carbon.
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