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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

FERC Commissioners Rule Merchant-Built NY Line Not Required to Expand

LCG, Sep. 6, 2002--The owners of a transmission line from Connecticut to New York's Long Island do not share the obligation of integrated utilities to upgrade their line to match growing demand, the Federal Energy Regulatory Commission ruled yesterday.

As part of the ruling, Commissioner William Massey expressed some concern that by not holding merchant transmission owners to the standards of regulated utilities, the ruling could allow such owners to diminish competition. Massey acknowledged that the set of power market rules recently announced for review, standard market design, will provide a protocol on the issue.

The company that owns the 24-mile Cross Sound Cable, capable of transmitting 330 megawatts, is Transenergie U.S. Ltd.
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