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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

Black Hills Power Applies to Decommission Coal Plants

LCG, September 17, 2013--The Wyoming Public Service Commission recently published a public notice stating that Black Hills Power filed an application on August 29, 2013 with the Commission to retire three aging coal units. The company stated the decision to decommission the facilities is driven by costs to comply with ever-growing regulations dictated by U.S. Environmental Protection Agency (EPA).

The Commission's public notice stated, "After an analysis of the cost of compliance, as well as consideration of the likelihood of additional future EPA regulations affecting the continued operation of the facilities, Black Hills Power determined the most cost effective plan for EPA compliance is to retire and decommission the facilities."

The coal-fired units targeted for retirement are the 34.5-MW Osage unit in Osage, Wyoming and the 21.8-MW Neil Simpson I unit in Gillette, Wyoming. In addition, the 25-MW Ben French unit in Rapid City, South Dakota is targeted. The newest of the three units is Neil Simpson I, which commenced commercial operations in 1969. All three units are owned entirely by Black Hills Power.

According to the public notice, Black Hills Power states the EPA issued the National Emission Standards for Hazardous Air Pollutants for Area Sources: Industrial, Commercial and Institutional Boilers (Area Source Rules), to reduce emissions of hazardous air pollutants from various small boilers, to include coal-fired units of 25 MW or less. The deadline for compliance with the Area Source Rules is March 21, 2014.
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