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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

EPA Issues Final MATS Rule

LCG, April 3, 2013--The Environmental Protection Agency (EPA) on March 29 issued the final rule for the Mercury and Air Toxics Standards (MATS) for new coal- and oil-fired power plants, setting mercury limits slightly higher than the previous rule set in December 2011.

The EPA's action revises certain new source numerical limits in the MATS National Emission Standards for Hazardous Air Pollutants (NESHAP). Specifically, the EPA is finalizing revised hydrogen chloride (HCl), filterable particulate matter (fPM), sulfur dioxide (SO2), lead (Pb), and selenium emission limits for all new coal-fired electric generating units (EGUs); the mercury (Hg) emission limit for the "unit designed for coal > 8,300 Btu/lb subcategory;" fPM and SO2 emission limits for new solid oil-derived fuel-fired EGUs; fPM emission limits for new continental liquid oil-fired EGUs; and most of the emission limits for new integrated gasification combined cycle (IGCC) units.

The final rule sets the limit for mercury emissions for units not designed for low rank virgin coal at 0.003 pounds/GWh, which is slightly higher than the initial rule. Mercury emissions for units designed for low rank virgin coal were not opened for reconsideration.

With respect to fPM, emission limits from all new coal-fired power plants are set to 0.09 pound/MWh, and HCl emission limits are set to 0.01 pound/MWh.

The EPA stated, "Our analysis shows that new EGUs would choose to install and operate the same or similar air pollution control technologies in order to meet the revised emission limits as would have been necessary to meet the previously finalized standards. We project that this final action will result in no significant change in costs, emission reductions, or benefits. Even if there were changes in costs for these EGUs, such changes would likely be small relative to both the overall costs of the individual projects and the overall costs and benefits of the final rule. Further, we believe that EGUs would put on the same controls for this final action that they would have for the original final MATS rule, so there should not be any incremental costs related to this revision."
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