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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

Bush to Speed Cross-Border Permits with Mexico

LCG, March 9, 2001U.S. Energy Secretary Spencer, in Mexico City for the Fifth Hemispheric Energy Ministers Meeting, said yesterday the Bush administration will speed up the permitting process for electricity ties with Mexico.

Acknowledging the benefits of U.S. Mexican trade in electric power, Abraham said transmission arrangements were among the biggest obstacles. He said he had discussed the permitting process with Mexican Energy Minister Ernesto Martens and with Alfred Elias Ayub, director of the Comisin Federal de Electricidad.

Though Mexico has power shortages of its own, several new power plants in northwestern Mexico are under development with an eye to exporting power to California. One such plant, to be built in Mexicali, 10 miles south of El Centro, Calif., will require permits just to send its power to Calexico, Calif., which is across the street.

Abraham said "We are going to do our best to try to make this process work better, consistent with the goals of having a legitimate permits process." He had said earlier that the Energy Department would issue a permit for a cross-border connection at Brownsville, Texas.

But Abraham pointed out that there was room for lots of improvement within the U.S. If Mexican power were imported into Southern California, it might go no further because of constraints in California's aging transmission grid. He said California's problems have led the administration to take a closer look at the situation throughout the United States.

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