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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

PG&E Executes Contract with NextEra for 250 MW of Solar Power

LCG, October 26, 2009--Pacific Gas and Electric Company (PG&E) yesterday announced a new power purchase agreement (PPA) with NextEra Energy Resources, LLC, a subsidiary of FPL Group, for solar power from the proposed Genesis Solar Energy Project, a 250-MW facility to be built in Riverside County, California. Construction on the project is scheduled to commence in late 2010, with operations planned to begin approximately 30 months later.

The Genesis Project will include two, 125-MW units that will incorporate parabolic trough solar thermal technology. Over 500,000 parabolic mirrors will be assembled in rows to reflect and focus the sun's energy in order to produce steam that powers a steam turbine generator. The mirrors will be located on an approximately 1,800-acre site in the Sonoran Desert between Center and Blythe. NextEra Energy Resources has operated for many years a similar solar facility, the SEGS solar facilities located in the Mojave Desert.

The PPA is subject to approval by the California Public Utilities Commission (CPUC). In addition, NextEra Energy Resources filed in August an Application for Certification with the California Energy Commission (CEC) to construct, own and operate the project. NextEra Energy Resources also filed for a right-of-way grant with the Bureau of Land Management (BLM) for this project.

California passed a Renewable Portfolio Standard (RPS) Program that requires utilities like PG&E to increase their electric supply procurement of eligible renewable generating resources by one percent of load per year. Last month, the Governor signed an Executive Order that increased the requirement to 33 percent by 2020 and that now applies to all utilities, including publicly-owned municipal utilities.
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