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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 Public Utilities Commission Votes for Continue Strong Support for Solar Net Metering

LCG, January 29, 2016--The California Public Utilities Commission (CPUC) yesterday voted 3-2 to continue the retail rate net metering program for rooftop solar systems. The vote adopts a Proposed Decision released last month with some revisions.

The new solar net metering program will commence in 2017, or as soon as net metering caps are reached in each utility service territory. The commission's decision is supported by pro-rooftop solar businesses that want to extend the retail rate remuneration for solar facilities (e.g., rooftop solar PV) that deliver excess power from the consumer back to the grid.

SunEdison's President and Chief Executive Officer stated, "We thank California's policymakers for today's decision on net metering and applaud the integrity of all parties who contributed to these proceedings. We firmly believe that today's decision is an important step forward and will help build a stronger, more robust electricity grid which delivers clean, cost effective energy to all of the citizens of California."

California's utilities filed an alternative proposal designed to reduce net metering rates. However, the final decision was revised so as to exclude adjustments that would require solar customers to pay charges for transmission lines. The lack of the transmission fees drove two commissioners to vote against the decision, as solar customers, like all customers, rely on transmission lines to deliver electricity when the sun isn't shining.

A San Diego Gas & Electric (SDG&E) spokesperson stated the commission "ignored state law and the clear direction from the state Legislature, which called for them to reform net energy metering to ensure the benefits are balanced with the costs." The spokesperson further stated, "While we are still evaluating the decision, it appears to largely maintain the current program, penalizing the 95 percent of our customers who don't have solar."

Another key revision to the Proposed Decision is to require time-of-use (TOU) rates for new rooftop solar users in the Pacific Gas & Electric (PG&E) and Southern California Edison (SCE) territories, rather than phasing them in until 2019, when all residents are required to go on TOU rates. Solar facility owners in SDG&E service territory will be allowed to remain on SDG&E's tiered rate structure for five years after new TOU rates are approved in 2017.
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