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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 Issues Ruling on Midwest ISO Transmission Request Processing

LCG, Jan. 31, 2003--A complaint by Tenaska Inc. over a rejected offer to purchase long-term transmission rights from the Midwest Independent System Operator should be considered again under a revised framework, the Federal Energy Regultory Commission (FERC) ruled yesterday.

The Midwest ISO, which said that opting to allow a purchase of short-term transmission rights by other buyers instead was done on a first-come, first-served basis, controls grid access over an area that includes 15 states, and part of Canada. The position of Tenaska was backed by Dynegy Inc., Reliant Resources and Public Service Enterprise Group Inc.

The transmission access in question is around the Michigan-Ontario border. The FERC ruling stated, "This order benefits customers by providing certainty to Midwest ISO's customers concerning the processing of long-term firm transmission service requests." The ISO was directed to change its tariff within 30 days, and adopt a new method of responding to requests.
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