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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

California Legislators Pass Energy Bill that Could Improve Outlook for Diablo Canyon

LCG, July 1, 2022--The California State legislature passed legislation (AB-205) Wednesday that could enable the Diablo Canyon nuclear plant to continue operating and providing carbon-free power to support the electric reliability of the California grid. The nuclear plant may also be able to access federal funds from the Infrastructure Bill’s $6 billion Civil Nuclear Credit (CNC) Program that is designed to keep nuclear power plants with financial shortfalls online. The Governor is expected to sign the legislation.

Back in June 2016, PG&E announced a Joint Proposal with labor and environmental organizations that would increase investment in energy efficiency, renewables and storage beyond then-current state mandates while prematurely phasing out PG&E’s 2,240-MW Diablo Canyon Power Plant in lieu of operating under license extensions. (The reactors’ operating licenses expire in November 2024 for Unit 1 and August 2025 for Unit 2.)

The current legislation, AB-205, would establish the Strategic Reliability Reserve (SRR) to be administered by the California Department of Water Resources (DWR) to support electrical grid reliability. The bill authorizes DWR to contract for, purchase, finance or otherwise secure electrical generation to create additional capacity available during extreme energy grid events.

The bill would require DWR to prepare a plan for its actions to invest in electric reliability for the California Energy Commission (CEC) to consider and approve. Furthermore, the bill requires the DWR to consult with the CEC, California Public Utilities Commission (PUC) and the California Independent System Operator (CAISO) or other applicable balancing authorities, and the California Air Resources Board when carrying out the duties of SRR.

The bill could also support and accelerate new renewable power installations. The bill would authorize the CEC to permit the siting of facilities by the DWR in implementing SRR programs, and it would establish an expedited review of applications. This bill would require the CEC in reviewing permitting requests to determine optimal location for resources based on electric reliability, reducing public safety power shutoffs, decreasing the use of high-emission resources and minimizing air pollution.

The DWR also would be required to submit a report to the Joint Legislative Budget Committee starting on January 31, 2023, and in specified intervals, on expenditures related the program.
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