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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 Commission Approves SWEPCO's Proposed Coal-fired Power Plant

LCG, July 8, 2008--The Public Utility Commission of Texas last week approved a proposal from Southwestern Electric Power Company (SWEPCO) to build a coal-fired electric generating facility in southwest Arkansas. Prior to proceeding with construction of the facility, SWEPCO awaits a number of permits, including the receipt of an air permit from the Arkansas Department of Environmental Quality.

On July 3, the Commission approved the proposal by a vote of 2-1 and rejected the recommendation from an administrative law judge (ALJ). Last January, the ALJ concurred with Texas Industrial Energy Consumers and with the staff of the Commission and recommended to deny the application for a certificate of convenience and necessity to build the John W. Turk Jr. Power Plant. The ALJ had stated, "SWEPCO failed to prove that there is a need for the plant."

SWEPCO, a subsidiary of American Electric Power (AEP), 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 $1.52 billion. The proposed facility will use ultra-supercritical technology and will burn sub-bituminous, Powder River Basin (PRB) coal from Wyoming.

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.
In March, the Louisiana Public Service Commission (LPSC) unanimously approved SWEPCO's request to build the plant, including a requirement for SWEPCO to prepare and submit a study that identifies potential, cost-effective energy efficiency and load management programs for SWEPCO's Louisiana customers.

SWEPCO's application to the Arkansas Department of Environmental Quality for an air permit is pending, and a SWEPCO spokesperson stated that they hope to receive the air permit by the third quarter of this year. Another project hurdle is opposition from some hunting clubs and landowners in Arkansas that believe the plant will harm the local environment, and they have appealed the Arkansas Public Service Commission's ruling to the state Court of Appeals.
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