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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 Releases Seasonal Assessment of Resource Adequacy for Spring

LCG, March 3, 2016--The Electric Reliability Council of Texas (ERCOT) on Tuesday released its Seasonal Assessment of Resource Adequacy (SARA). ERCOT expects the region will have sufficient installed generating capacity to serve forecast peak demands with expected generation outages in the upcoming spring season (March - May 2016).

This SARA report is ERCOT's latest spring 2016 peak forecast that incorporates expected weather conditions, which are similar to those that occurred in May 2006, a hotter-than-normal month. The report includes a unit outage forecast of 9,482 MW based on historical outage data since the start of the Texas Nodal Market in 2010. The forecast assumes the high likelihood that the spring peak will occur in May, after completion of most scheduled seasonal maintenance.

The SARA report calculates the spring peak solar unit capacity consistent with the methodology to be applied once operational solar capacity registered with ERCOT reaches the 200 MW threshold as specified in ERCOT Nodal Protocol Section 3.2.6.2.2. The spring peak solar capacity contribution percentage is 58%, which is based on three years of historical spring solar production data. The previous capacity contribution percentage of 100% was significantly higher. The impact of this change is to reduce total available installed and planned solar capacity from 295 MW to 171 MW.

ERCOT stated that it does not anticipate changes to available generation capacity for the spring season due to compliance with environmental regulations. The final compliance date for the Mercury and Air Toxics Standards (MATS) for coal units with compliance extensions is April 15, 2016. Confidential survey information gathered in December 2015 indicated that coal generators are expected to be compliant with MATS by the compliance date. ERCOT continues to monitor implementation and consults with generation resource owners on their compliance plans for MATS and other environmental regulations.
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