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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

Alliance Transco Agrees to Management by National Grid

LCG, Nov. 5, 2001--National Grid USA said on Friday that is has signed an agreement with members of the Alliance regional transmission organization that details the terms for the American subsidiary of the operator of Great Britain's transmission system to be the managing member of the Alliance Transco.

The Alliance Transco is a proposed, profit-motivated independent transmission company whose member companies operate 51,400 miles of transmission in 11 states stretching from Missouri to Virginia. Upon approval by the Federal Energy Regulatory Commission and the fulfillment of other conditions, the Alliance would operate as an RTO.

Whether that comes to pass is another matter, as FERC has recently pursued a policy that would place the U.S. transmission system under the governance of four super-regional organizations. Smaller RTOs and other independent system operators would be folded into the larger organizations.

Rick Sergel, president and chief executive of National Grid USA appears not to believe that FERC really wants four huge RTOs.

"Today brings us closer to the formation of the nation's first for-profit RTO, and the realization of the FERC's goal to reshape electricity markets to enhance reliability, encourage cost-effective service to customers, and promote a competitive marketplace," he said.

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