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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

"Clear Skies" Plan Sent to U.S. Congress

LCG, July 30, 2002-President Bush sent his power plant emissions plan to Congress yesterday, some five months after he first discussed his intentions.

"Clear Skies" addresses emissions of three power plant pollutants, limiting them by 70 percent in 16 years, or by 2018.

The proposed cap-and-trade system sets industry-wide limits on nitrogen oxides (NOx), sulfur dioxide, and mercury. Under the plan, plants receive allowances for specific weight of emissions and can then sell or buy the right to emit less or more pollution from other plants.

Considering the Bush Administration's environmental record, the plan might be treated with some suspicion. Senate Independent Jim Jeffords of Vermont has already noted the omission of carbon dioxide and has brought in a pollution measure of his own. Jeffords' plan includes tighter limits and a 23 percent cut in carbon dioxide emission by 2008.

The Bush Administration has regularly avoided addressing carbon dioxide emission and referred to one carbon dioxide report as "bureaucracy", although scientists worldwide agree that temperatures are increasing, and increasingly compelling evidence links this increase to human-related emission of carbon dioxide.

"Clear skies" has been welcomed by many because it will allow operators the flexibility to run older plants while providing for monetary penalties to those who overstep their emissions allowance.

The Environmental Protection Agency's website, http://www.epa.gov, claims that nationwide emissions of the three chemicals will be reduced by about 70 percent. However, for zone IX, which includes California, Arizona and Nevada, the EPA claims that by 2020, sulfur dioxide and nitrogen oxides emissions will be reduced by only 8.5 and 22 percent respectively, while mercury emission will be reduced by 23 percent as compared to 2000 statistics.

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