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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

ERCOT Board Endorses ETT's 345-kV Transmission Project

LCG, September 23, 2011--The Electric Reliability Council of Texas (ERCOT) Board of Directors Tuesday endorsed a 345-kV electric transmission project from the Laredo area into the Lower Rio Grande Valley. The project proposal is from Electric Transmission Texas LLC (ETT), a joint venture between subsidiaries of American Electric Power and MidAmerican Energy Holdings Company.

The Board characterized the $300 million project as "critical to reliability." Last February, Texas experienced rolling blackouts during an extremely cold period, when electric loads were high and a number of generators experienced difficulties in delivering power to the grid.

ETT's President stated, "The endorsement from the ERCOT board clearly establishes the need for this transmission project and paves the way for a Certificate of Convenience and Necessity (CCN) application from the Public Utility Commission of Texas (PUCT). Currently, there are only two 345-kV transmission lines serving the Valley. Both of the existing lines import power from the Corpus Christi area and run parallel to the Gulf Coast, which means both are vulnerable to hurricanes and other severe weather. The import capacity of these lines is limited, and the ability to schedule maintenance often can be a problem."

The 345-kV transmission project will extend approximately 163 miles and connect ETT?s Lobo Substation near Laredo with substations north of Edinburg. In addition, the Board supported the need for AEP Texas to reconductor two existing 345-kv lines and to upgrade substation facilities. These improvements are estimated to increase the project cost by $225 million. Given timely environmental and regulatory approvals, ETT anticipates that the project will be completed for 2016.
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