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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

California Assembly Passes RPS Legislation with Target of 50% Renewables by 2030

LCG, September 23, 2015-The California State Assembly on September 11 passed legislation (SB 350) by a vote of 51-26 to raise the state's Renewable Portfolio Standard (RPS) goal for procurement of renewable resources from 33 percent in 2020 to 50 percent by the end of 2030. The legislation, the Clean Energy and Reduction Act, is expected to be signed by Governor Brown by the end of the month.

The Clean Energy and Reduction Act includes requirements for the doubling of energy efficiency savings in electricity and natural gas by retail customers by 2030.

The 50 percent renewable energy standard will be implemented by the California Public Utilities Commission (CPUC) for investor-owned utilities (IOUs) and other retail sellers that are subject to CPUC jurisdiction. The California Energy Commission (CEC) will implement the standard for publicly-owned utilities (POUs).

The legislation sets forth a process to implement and evaluate procurement plans, including an annual renewable energy procurement plan that each retailer of electricity must provide. The retailers are called upon to provide integrated resource plans (IRP) for approval.
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