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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

Texas ALJ Recommends Rejecting SWEPCO's Proposed Coal-fired Power Plant

LCG, January 23, 2008--An administrative law judge (ALJ) earlier this week concurred with Texas Industrial Energy Consumers and with the staff of the Texas Public Utility Commission and recommended to the Commission to deny the application for a certificate of convenience and necessity to build the John W. Turk Jr. Power Plant proposed by Southwestern Electric Power Company (SWEPCO). The judge stated that "SWEPCO failed to prove that there is a need for the plant." The Commission is scheduled to consider the recommendation on February 22.

SWEPCO proposed to construct a 600-MW, coal-fired plant in Hempstead County, Arkansas to serve retail and wholesale customers in Arkansas, Texas and Louisiana. The estimated cost of the facility is $1.3 billion. The proposed facility will use ultra-supercritical technology and will burn sub-bituminous, Powder River Basin coal from Wyoming. The project is planned to commence operations in 2011.

The ALJ stated that because SWEPCO's serving wholesale customers is entirely voluntary, the wholesale customers' load should be excluded when determining SWEPCO's projected demand.

In a 2-1 decision last November, the Arkansas Public Service Commission (APSC) granted a Certificate of Environmental Compatibility and Public Need (CECPN) to construct the plant.
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