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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

Entergy Files Complaint to Stop Vermont from Closing Vermont Yankee Nuclear Plant

LCG, April 19, 2011--Entergy Corporation yesterday announced that its subsidiaries, Entergy Nuclear Vermont Yankee, LLC and Entergy Nuclear Operations, Inc., filed a complaint in U.S. District Court for the District of Vermont seeking a judgment to prevent the state of Vermont from forcing the Vermont Yankee nuclear power plant to cease operation on March 21, 2012, when the original operating license is set to expire.

Last month, the U.S. Nuclear Regulatory Commission (NRC) issued a 20-year license extension to the Vermont Yankee nuclear plant, with its 605-MW reactor, following a five-year review of the safety and environmental aspects of the plant.

Entergy stated that, "We have made every reasonable effort to accommodate the State of Vermont and its officials while allowing the continued operation of Vermont Yankee ? an outcome that benefits all stakeholders, including Vermont consumers and the approximately 650 men and women who work at the plant. Despite the fact that Vermont Yankee is important to the reliability of the New England electric transmission grid, emits virtually no greenhouse gases, and provides more than $100 million in annual economic benefits to the state of Vermont, it has been made clear that state officials are singularly focused on shutting down the plant. That has left us with no other choice but to seek relief in the court system."

In 2006, the Vermont General Assembly passed a law that invalidated a key provision of a 2002 Memorandum of Understanding tied to Entergy's purchase of Vermont Yankee, according to Entergy. An Entergy spokesperson stated, "The 2006 state law took the decision about Vermont Yankee's future away from the Public Service Board, a quasi-judicial expert decision-maker, independent of legislative control. It instead placed Vermont Yankee's fate in the hands of political decision-makers, namely the state General Assembly and governor who could deprive Entergy's two subsidiaries of the opportunity to operate the Vermont Yankee plant beyond March 21, 2012, for unsupported or arbitrary reasons. This is not what we signed up for in 2002."

In a related matter, the Vermont Public Service Board approved on Friday a 26-year, power purchase agreement (PPA) between the state's two largest electric utilities and Hydro-Quebec to purchase up to 225 MW of commencing in November 2012 and ending in 2038. Most of Hydro-Quebec's power is produced by hydroelectric stations in the northern part of the Quebec.

The Vermont Legislature enacted a bill in 2010 that classifies electricity from large dams as renewable energy, rather than limiting renewable energy facilities to small hydro projects. Eligible renewable energy resources include hydropower facilities with a capacity limit of 200 MW prior to July 1, 2012, and no capacity limit thereafter.
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