Energy & Water

Businesses in Las Vegas, colelctively 5% of the retail electric market, want to buy their own electricity from solar farms or power plants directly.

The Companies involved…Wynn Resorts, MGM REsorts International, and Las Vegas Sands

The power provider involved…NV Energy owned by Berkshire Hathaway

Why is this important? 2 reasons

• Nevada is a state that does not allow direct buy of electricity
• Data shows that 2 MGM Properties in Las Vegas use more electricity than Key West, FL

Wall Street Journal | Vegas Casinos Fight to Buy Their Own Electricity

Stokes County Board of Commissioners (North Carolina) on a vote 4-0 passed a mopritorium that would:

• prohibit anyone to engage in hydraulic fracturing or oil and gas development
• for a three year time period
• a $500 per day fine
• covers all areas of the county except cities & their ETJ zones

Commissioners during the 3 year moritorium will:

• research and study the impact of fracking
• determine the adequacy of existing state and federal laws
• study the impact of potential fracking on county roads, infrastructure, natural resources and health and safety of residents;
• develop standards and conditions to be implemented in the county zoning ordinance to address impacts not adequately addressed by state and federal regulations.

Marcellus.com | Fracking moratorium passes on 4-0 vote

1. known internet-related vulnerabilities. 
   • ​Especially the use of commercial ‘off-the-shelf’ software, which is cheaper but with greater access for hackers.
   • Lack of proper protection from internet access.
2. lack of nuclear facility personnel training
   • Many plants were built before cyber threats were an issue
   • A gap emerges between plant personnel and cyber security personnel
3. No proactive solutions for potential threats 
   • ​​Reacting to potential threats is not enough cyber security

A London based think tank produced a report, Cyber Security at Civil Nuclear Facilities: Understanding the Risks, after studying cyber risks to nuclear plants for 18 months, giving rise to these 3 identifiable probelms at nuclear power plants.

SC Magazine for IT Professionals | Cyber danger to nuclear power plants growing

1. 2014 law sets of 40 year minimum time frames for thes P3s
2. They’re not just in energy and oil and gas infrastructure, P3s in Mexico are also used for:
   • construction of roads,
   • construction of hospitals
   • prisons
   • airports
   • railroads 
3. Most have been ” granted through direct negotiations in cases where there was only one interested party”

IPS | Mexican Government Depends More and More on Private Business Partners

Port of Corpus officials are meeting with energy leaders in Mexico to talk energy, aerospace, education and brining it all together. 

Corpus Christi Caller Times | Port delegation heads to forum in Mexico

Texas A&M Institute of Renewable Natural Resources has gone through several drafts of a report calling San Antonio’s soon to be water pipeline highly risky. San Antonio has called for revisions.

The city is concerned with certain characterizations of the pipeline, such as:

• the pipeline process is not transparent enough
• contractual protections that protect the project’s financial security
• pipeline water being more suspectible to contamination
• San Antonio’s conservation goals would be impacted

The final report is to be officially released on October 7th.

Texas Public Radio | The Source: When A Water Study Leaks, A Deluge Of Controversy

San Antonio memo on Inaccuracies in the Texas A&M Report on the San Antonio Water Pipeline

What’s the Subsea Systems Institute? collaboration between the University of Houston, Rice University and  NASA Johnson Space Center

Why did it form? established in the aftermath of the 2010 Deepwater Horizon spill

What are the Subsea Systems Institute’s goals?

• developing new tools, policies and training 
• to produce oil and gas from deep-water reservoirs
• in a safe and environmentally friendly manner

Who is its leader? Bill Maddock

What is Bill Maddock’s background?

• He’s an expert in offshore operations and engineering​
• A marine and offshore engineer with 30+ years of experience in offshore structures, marine operations and ice sciences.
• Formerly of BP America, where he coordinated engineering and technology for development in the Arctic, coordinated Arctic engineering and technology capability within the company and participation with the executive in the development of arctic policy.

FuelFix | Former Arctic engineering exec to direct Houston deep-water research center

Blacksburg Virginia outdid other cities in the number of new solar installations. Here’s 3 ways how the city succeeded in solarizing:

1. Blacksburg negotiated an additional 16% savings for customers (that’s a $3200 savings per customer)
2. It puts demand LAST, and instead created a program to drive demand

What happened aftger Blacksburg’s solarize?

• 22 cities in Virginia followed suit
• In a 3 year period ending in 2015, residential solar grew by 122%

Governing | How Blacksburg, Va., Got So Many People to Go Solar

What’s going on? a loose coalition wants natural gas comapnies to be able to explore on university lands. Specifically, fracking on UT & A&M lands.

Who wants this? North Texans for Natural Gas (Devon Energy, EnerVest, EOG Resources and XTO Energy)

What is North Texans for Natural Gas Doing to Gin up Support? A petition urging UT Chancellor William McRaven and Texas A&M Chancellor John Sharp to support hydraulic fracturing and the extraction of oil and gas on University Lands.

Where do they want to explore for natural gas? On 2.1 million acres in West Texas  constitutionally set aside  as an endowment for the state’s two leading university systems.

What’s in it for Universities? Revenue to the Permanent University Fund.

Who is opposed? Environmental groups like Environment Texas Research and Policy Center and the California-based Frontier Group

Fuel FIX | Pro-industry group throws support behind drilling on Texas university land

Background:  3 water officials from Red River County asked the TWDB to get them out of Northeast Texas water planning region D & into Dallas-based Region C.

Their reasons why:

• Red River County has been vocal about needing water and has been rebuffed by NE TX water planning region
• The NE TX planning region said NO to Dimple Reservoir, a 2,300 acre reservoir,to essentially  Langford Lake which will be filled with silt by 2040

It looks like the ploy may be working as the NE TX water planning Region D may be open to expanding Red River’s water options. No Dimple Reservoir.

Longview News Journal: Northeast Texas water group could lose member

RRC needs flexibility for regulation. It points to these issues to support its need to be nimble:

Tech Insider says that Texas energy use is equal to Brazil. 

Side Note: Brazil’s population is 7 times the Texas population.

Tech Insider: This map shows how much energy each US state uses by pairing it with a similar foreign country

• Lincoln Clean Energy
• $183 million solar power project
• first commercial-grade one in the Panhandle
• 100 megawatts or more
• Economic Incentives:
  • Tulia Independent School District is  capping the taxable value of the project at $20 million a year for 10 years
  • Comptroller estimates this to be a $9 million dollar savings in maintenance and operations taxes for the solar project.

Amarillo Globe News:  $183M solar project heats up 

No Endangered Speciaes Status, but the Feds aren’t Done.

The federal Bureau of Land Management (BLM) is creating management plans to handle land use for the sage grouse.

How will BLM land use plans impact industry?

 Independent Petroleum Association of America say there are 3 problems:

1. it will put more restrictions for energy because the BLM is setting sage grouse standards different from state plans in WY and MT. 
2. making it more costly to operate
3. it will be harder to provide the benefits of abundant, affordable energy to American families

Note from the other side: The environmental groups are also displeased.

Fuel Fix via AP With no protections for Sage Grouse, focus is on land-use

Colorado Supreme Court will detemrine the legality of cities banning fracking. 

What fracking bans passed in Colorado?

Longmont banned hydraulic fracturing in 2012 & Fort Collinsapproved a 5-year moratorium in 2013

What did the lower courts say?

Oil & Gas Association wins. The Lower Courts said its the state’s prerogative to regulate fracking.

What issues are being used by both sides?

• fracking endangers public health and underground water supplies.
• property rights: landowners want to control what occurs below the ground because drilling brings Noise, lights and health worries

Fuel Fix via AP: Colorado’s high court to decide if cities can ban hydraulic fracturing

No impact to aging electric grids from an influx of renewable power. It works out just fine. California gets 30-40% of its daily power from renewables with no rolling blackouts or brownouts on the grid.

Solar is Booming in 2015. “In the first quarter, residential solar installations across the U.S. grew by 76% over the same period a year earlier, adding 1.3 gigawatts of capacity.”

Renewables are changing the Energy Business Market. “Think Bitcoin, eHarmony, eBay—platforms that match buyer and seller on an individual basis,” says Mr. Craver [ chief executive of Edison International Inc., parent of Southern California Edison, one of the nation’s largest electricity retailers.]. “That is the vision some of us have for the longer term.”

Business is Booming in Software to Manage Loads. Boston-based EnerNOC Inc., Solar City Inc., Enphase Energy Inc., based in Petaluma, Calif. are spotlighted as providing software and storage solutions either at the residential level or grid level. We’re talking batteries and software that warns companies that utilities may have a possible power insufficiencies.

WSJ

Round one win for Tarrant Regional Water this week when the TX Supreme Court ruled that the district had not violated open meetings act. 

The water district is in a legal bruhaha with a Dallas businessman who opposes a water pipeline routed through his land. The legal fight will continue with eminent domain proceedings. 

Ft. Worth Star Telegram: Texas high court denies rehearing for Monty Bennett’s pipeline suit

December 1, 2014 Information Intelligence:

Water Project Eminent Domain Extrapolated: Campaign Contributions, Open Records Requests and a Grand Jury

Land ownership is to Texans like blue is to the sky. Tarrant Regional Water District  (TRWD) needs to move water around to meet supply demands. The project is expected to cost $2.3 Billion in tax revenues.

Two big flags in this fact pattern:

• Billions of tax revenue draws attention of lawmakers. 
• To accomplish its goal, TRWD needs privately owned land from Texans who love their land.    

The land TRWD needs is owned by private citizens who want to continue to own their land without government interference.

State Representative Gooden requested information from TRWD, dissatisfaction ensued, campaign contributions flew around (all above board), and a grand jury is looking into the how TRWD is conducting its business. [Ft. Worth Star Telegram]

Application Period Opens: December 1, 2015

Eligibility requires: that the project must be included in the adopted 2016 Regional Water Plans &  the subsequent 2017 State Water Plan

Abridged Applications Due Date: February 5, 2016

How will projects be ranked for eligibility?  By SWIFT Prioritzation Rules 

After Project Ranking What happens? TWDBoard will identify the amounts of funds available by category & establish the structure of financing and the subsidy terms.

When does the full application process begin? TWDB will extend invitations in mid-spring to eligible entities (ranking, fund availability, and financing structure) to submit full applications. Those entities will have 30 days to complete and submit the full application to the TWDB.

TWDB

Edinburg TX denied a new natural gas well permit this week. Here’s why:

• Opposition, though minimal 
  • 1300 notices sent to local residents
  • 39 responded in opposition
  • 3 responded in support
• The well was inside the city limits
• It would harm Winter Texans desire to become permanent residents
• The city was enforcing an existing ordinance that regulates oil and gas operations within city limits by denying the permit

The Monitor Edinburg votes to deny new natural gas well within city limits

Wind energy is providing added revenue to the Port of Corpus Christi. But there is a cost- the Port is running out of space to take in wind propelers and turbines.

The loading and unloading areas for turbines, blades and other wind-energy equipment take massive amounts of space.

The American Wind Energy Association says Texas ranks #1 in the country for both installed and under-construction wind capacity.

• 18,000 wind-related jobs
• Wind energy industry last year invested $3 billion in Texas
• Texas is home to at least 46 wind energy manufacturing facilities

Corpus Christi Caller Times: Wind energy is making storage space scarce

New Mexico Governor Susanna Martinez new energy plan, 2 years in the making, includes:

• Building new pipelines 
• Building new transmission lines
• Building rail lines

to the coal mines in northwestern New Mexico to assist in developing New Mexico’s oil and natural gas interests as well. 

Her energy plan also includes promoting New Mexico in energey’s future markets:

• Creating a hub for renewable energy storage testing
• More emphasis on natural-gas powered vehicles
• Using less water in energy production
• Including more nuclear energy
• Encouraging manufacturers of small modular nuclear reactors to locate in New Mexico.

Santa Fe New Mexican: Gov. Martinez unveils ‘comprehensive’ energy plan

Contracting for solar power on top of the new Sacramento King stadium is a benefit bonaza. Solar Power will:

• Power 15% of the stadium
• the solar company is putting in a significant capital investment “to help the Kings fund the arena”
• Offers the stadium LEED Gold certification

The solar project is estimated to cost $507 million investment by SPI Solar. SPI is committed to solar stadiums in California as it also has a solar installation at the Staples Center sports arena.

Sacramento Bee: Sacramento Kings show off solar array plans for arena rooftop

SWIRFT Fall Schedule for 2015:

• TWDB will take $1 Billion of SWIRFT funds to market
• SWIRFT loans will close by the end of 2015
• Round 2 of SWIRFT funding starts in December 2015

SWIRFT recipients can expect:

• estimated to save over $115 million over the life of the loans
• Ratepayers and citizens will reap the benefits by obtaining the best interest rates and structures possible for these water projects
• TWDB approved approximately $3.9 billion in funding over the next decade to 21 entities for 32 state water plan projects

TWDB   Business Wire   

American Wind Energy Association released a new report supporting the need for tax credits to keep the industry from a sharp decline.

3 Reasons Why Wind Tax Credits are Necessary

• Electric Market isn’t competitive. Its unnaturally tilted toward cheap natural gas.
• An estimated and dramatic 70% to 90% drop off in new wind power installation projects will occur if there is no tax credit
• Smart energy policy requires a diverse energy policy, including wind. 
  • Coming full circle, a diverse energy policy, that is competitive requires wind tax credits.

FuelFix 

Background: For the first time in more than 100 years, we have a new border bridge for trains. Safety first.

4 Points of the Transportation Agreement with Mexico:

• Goal: promote and increase bilateral collaboration on future border infrastructure projects
• This is tied to energy. Hello, Mexico energy deregulation, how you doin’?
• This is about 3 other things
  • ​encourage economic development
  • facilitate bilateral trade
  • cooperative border security.
• At the same time, the leaders announced a Texas-Mexico The Energy Task Force that will :
  • focus on natural gas and electric power infrastructure connecting the United States and Mexico

Governor Abbott: Governor Abbott Signs Transportation Agreement With Mexico; Announces Energy Task Force

• Tax revenue does not meet estimated. Collected only $973 M of the projected $1,650 million. 
• More money from the tax credit project is going to auditors and contractors than to green energy projects.
• No remarkable job generation. Only a “measly 1700 jobs, costing a daunting $175,000 per job.

Midland Reporter Telegram: Opinion: TPPF: California’s failed green energy project lesson for Texas

Heartland, the conservative think tank, is questioning the “corporate welfare” of green tax credits.

Wait, what? Conservative Group Question Tax Credits?Yes relying on the trnedy populism of Republicans, Heartland points to a study by the Haas School of Business at Berkeley. 

The Haas School of Business Study Found:

• tax credits to improve homes’ energy efficiency
• tax credits expand the sales of green vehicles
• tax credits increase the use of renewable power
• BUT, have proven to be a very expensive form of welfare for the well to do.

 Institute For Market Transformation information supports this economic development equation:

local govenrments + recognizing and practicing effective energy management = 7 x energy cost savings for businesses.

What local governemnt policy reforms support this?

• mandatory disclosure and benchmarking policies related to buildings’ energy use for ienergy benchmarking
• energy audit legislation 

Governing

A non-Democrat Governor in an oil rich state is proposing to cut the tax credits oil companies receive.

Why cut the tax credits? 

Practical Answer: State revenues are down because oil price per barrel is down. The $7 billion revenue included $628 million in tax credits. That’s about 9% for the mathematicians.

Political Answer: Credits are no longer needed. Industries, like natural gas, are no longer flagging.

Who would do this? Alaska Governor Bill Walker

Governing

• The judge way north of Texas, who halted the EPA water rule, limited his ruling to only those states involved in the lawsuit. Read: Not Texas. 
• ” reining in the EPA’s blatant overstep of federal authority”- Attorney General Paxton
• “puts all Texas property owners at risk, making everything from ditches to dry creek beds subject to costly federal regulation” – Attorney General Paxton
• EPA’s actions are inconsistent with U.S. Supreme Court precedent
• EPA rule is contrary to the congressional intent of the Clean Water Act
• EPA Rule infringes on the state’s ability to regulate their own natural resources

Attorney General Paxton Statement

OAG Memorandum filed with Court

A new EPA water rule requires the mapping of small water ways on private land. It’s controversial as people like privacy on their private land.

Last week, a judge way north of Texas halted the EPA rule’s application.

But, that judge clarified that his cessation of the EPA rule only applies to the states involved in the lawsuit before him. Texas was not one of those states.

To prevent federal mapping of private lands, among other things, the Attorney General’s Office asked the U.S. District Court for Southern Texas, Galveston Division to halt the EPA rules to ensure that the rules do not apply in Texas.

Southeast Times Record

Longview News Journal: Texas Falls Under EPA Clean Water Regulation

Texas Tribune: EPA Water Rule Applies to Texas After All

• Tax Dollars for Green Energy are “crony capitalism” that didn’t work in California, just look at  California’s 2012 Clean Energy Jobs Act which produced 1,700 jobs  at a cost of $175,000 each.
• Texas tried to stop this in 2015, but Senate Bill 931 did not pass the House. 

TPPF

Part revenue trend, for the City of Odessa, part business trend, part legislative/regulatory trend: contracts with local governments to access sewage water to use for fracking.

Odessa, TX signed a an 11-year, $117 million deal with Pioneer to re-use sewer water.

Oil Price.com

A new report from Environment Texas Research & Policy Center posits that Texas solar power capacity grew by 61% per capita last year. 

This growth makes Texas the 12th largest state in the country for solar power capacity.

Which states produce more solar than Texas? Hawaii, Arizona, Nevada, California, New Jersey, New Mexico, Vermont, Massachusetts, North Carolina

What is different about their regulatory/legislative structure?

•  renewable energy requirements
• some have laws that allow solar customers to connect back to the grid and sell back excess power

San Antonio Business Journal

U.S. District Judge Robert Junell vacated federal protections for the lesser prairie chicken.
 

Why did the court do this? The court concluded that the Fish and Wildlife Service did not properly consider active conservation efforts for the bird when listing it last March.

• A voluntary program exists among industry representatives and stakeholders to protect the bird. 

The Hill: Court vacates lesser prairie chicken’s threatened status     AP:In win for oil and gas, Texas court strips threatened lesser prairie chicken of protections     FoxNews     TPPF

Confused? Me too.  Scientists outside the Texas Railroad Commission said the quakes and fracking are linked. A Report by the Railroad Commission siesmologists disagree. Ask 2 scientists, get 2 answers.

“Commission investigators concluded that a well where Exxon Mobil subsidiary XTO Energy pumps millions of gallons of the wastewater likely didn’t cause the quakes, but also said there wasn’t enough evidence to demonstrate the earthquakes were naturally occurring.”

Where are we now? The Administrative Process allows 15 days for Parties  to respond.

US News & World Report     AP/ABC News

“A coalition of energy companies and oil industry leaders is asking the Texas Supreme Court to reconsider a 5-4 decision that it recently handed down against Chesapeake Energy Corp. in a royalties dispute.”

Why? What’s the big deal about this TX Supreme Court Case? OIl + Landowners = Texas & that’s what this case is all about. It required Chesapeake to pay the Hyder family of Fort Worth more than $575,00 in royalties for natural gas leases on their land. 

How did this happen? Chesapeake deducted post-production costs from royalty payments, which the Texas Supreme Court decided was improper.

What legislation would address this?  If legislation was filed to uphold the TExas Supreme Court ruling for landowners, a bill would clarify that post production costs cannot be deducted from royalty payments. 

What harm would come of this? “The court’s misinterpretation of this ‘cost free’ language will throw into dispute thousands of royalty provisions in oil and gas leases and overriding royalty instruments throughout Texas that simply describe a royalty as being a cost free share of production,” the association’s attorney Ernest Smith wrote in the motion.”

San Antonio Business Journal

An Elgin community meeting about the Vista Regional Water Plan was laser focused on eminent domain. The citizen comments abou the Vista water pipleine to move water to San Antonio :

• “The hyper growth pattern planned is similar to California’s”
• “This meeting is about eminent domain. When plans began for the Trans-Texas Corridor, the eminent domain issues began.”
• References to the Spanish company building the pipeline, like the Spanish company that was the focus of the Trans Texas Corridor
•  water grab  StopWaterGrab.org‘

Elgin Courier

The unintended consequences of reduced water usage:

• lower revenues for water
• lower water flows means greater corrosion and movement problems for sewers
  • The cost of fixing the corroded pipes will be “astronomical”

Los Angeles Times: Unintended consequences of conserving water: leaky pipes, less revenue, bad odors

Major General  James K. “Red” Brown, a former Lindale ISD Trustee, is considering entering the SD 1 race to fill the vacancy created by Senator Eltife’s retirement. 

The Major General on Water:

“He also said he would stand up for East Texas water rights. Brown’s Texas Pump & Water Systems, a water utility and pump provider based in Tyler, gives him on-the-ground knowledge of water policy, he said.

“One of the major issues in East Texas is water,” Brown said. “We need to protect it for East Texans. It is a key to economic vitality.”’

Longview News Journal

Mexico’s September Oil Auction will have new terms to draw more firms.  The National Hydrocarbons Commission approved changes in both auction procedures and contract terms that reduce the risk to oil companies. 

The result of government changes will be:

Greater Disclosures of Bids. “The Finance Ministry has agreed to publish the minimum bids that the government will allow for each of the five groups of oil fields. The bid represents how much oil profit the private companies will offer the state under a production-sharing agreement. It is part of the so-called government take.”

Wallstreet Journal

Laguna Beach will no longer have nurseries.  The demise of these small local businesses has been attributed to drought and high property costs.

Los Angeles Times

• $27,310,000 to the Greater Texoma Utility Authority on behalf of the City of Sherman (Grayson County) for water system improvements 
• $840,000 to the City of Alba (Wood County) for wastewater treatment plant improvements
• $400,000 to the City of Fayetteville (Fayette County) for a water well project 
• $2,815,000 to the Port O’Connor Improvement District (Calhoun County) for water system improvements .

TWDB August 26, 2015

In 2014, California enacgted sweeping groundwater reforms. And, now, like the Terminator, California is back. 

• Governor Brown is targeting agricultural use of water
• Governor Brown wants stronger oversight of drilling and pumping wells
• Its being used as a Democrat- Republican issue about climate change. (e.g. Need stronger groundwater laws because climate change is real)

Sacramento Bee

3 states in recent months have strengthened regulations for tranporting oil via train. The states:

• Pennsylvania
• Oregon
• Washington

What do the new regulations do?

• greater policing of oil shipments through inspection, regulation and even lawsuits
• Washington added a 4-cent-per-barrel tax on oil moved by trains
• require freight rail companies to notify local emergency personnel when oil trains would pass through their communities.

Governing

WHO:   Sen. Charles Perry  & Rep. Lyle Larson

TERM:  Expires 2/1/2019 for Sen. Perry & 2/1/2017 for Rep. Larson

EverythingLubbock.com  Governor Abbott Press Release  Amarillo Globe News

Austin is moving forward with a community solar farm in East Austin that will:

• generate power for 500 houses daily, year-round
• have a $6 million price tag
• it will join  the growing list of these projects occuring in 17 states, according to the Solar Energy Industries Association

Athens Daily Review

The Cynthia and George Mitchell Foundation endorsed the EPA methane proposal as a “prudent regulatory strategy.”

The Foundation also stressed that:

• “the oil and gas industry has already made “important progress” cutting emissions of methane”
• ““While some industry leaders are already implementing aspects of the proposed rules, the number of oil and gas companies that aggressively control their methane emissions must increase”

FuelFix

• emissions from hydraulically fractured natural gas wells fell by 73% between 2011 and 2013
• from 2008 to 2012 methane emissions from natural gas systems have fallen by 14.3%
• since 2008 natural gas production rates have nearly quadrupled
• science is not on the EPA’s side—the warming potential of methane has been overstated by a factor of as much as 100 according to some scientists

TPPF

• Texas receives $1.3 Billion in Royalties
• Oil & Gas dominates some school tax bases like:
  • Terrell ISD 56%
  • Andrews ISD 79.7%
  • Sands ISD 91%
• Energy also provides innovative education programs and production opportunities that promote STEM (science, technology, engeneering & mathematics) such as one program seeded by $5 million from Chevron

TribTalk by Todd Staples

RioGrande Guardian

Baja California looks to California’s energy market for its electric supply, and California is looking to Baja to increase its renewable energy with Baja’s wind and solar energy opportunities.

Moving this trend to other border states- Arizona, New Mexico and Texas is the topic du jour for oilprice.com.

Can we say globalization of the energy market?

• Mexico has 5,500 miles of oil and gas pipeline built in the country, while Texas alone has 55,000 miles of pipeline.
• Potential for new midstream infrastructure in Mexico presents a booming opportunity for midstream companies, and not only for the large ones.
• Number of Projects are Growing Exponentially to transport oil and gas to and from Texas and Mexico.

Houston Business Journal

Los Angles is using plastic balls to stop water evaporation in its reservoirs.

These “shade balls” are expected to save 90% of the evaporation.

For charts, graphics and video: Time Magazine. 

California’s Governor Jerry Brown has proposed water tunnels to move water around California.  California farmers have water and the cities need it.

To accomplish this great water migration, California is proposing to use eminent domain against 300 farms to build the 30-mile-long tunnels that will reshape the delta formed by the San Joaquin and Sacramento rivers.

Landowners are facing a 30 day window to either accept or reject 1, single, offer from the state according to documents. 

AP via GOPUSA  AP (full AP story)   CBS Sacramento  Fresno Business Journal   Catholic.Org 

Breitbart

Tech philanthropist Thomas M. Siebel, whose Siebel Systems pioneered customer relationship management software in the 1990s, has founded the Siebel Energy Institute with $10 million to start.

The Siebel Energy Institute is involved with 8 universities, none in Texas, which may benefit from the  first round of 24 grants. The target: revolutionizing energy production, delivery and transmission.  

Inside Philanthropy

This week the U.S. Geological Survey released new earthquake report indicating half of the U.S. population lives in areas that face significant earthquake risk.

In 2006, the USGS said 75 million Americans lived in areas that face significant earthquake risk.

The Top 10 states for population risk are: California, Washington, Utah, Tennessee, Oregon, South Carolina, Nevada, Arkansas, Missouri and Illinois.

In Texas, it is 1,173,162 that live in areas that are potential earthquake damage areas. Its mostly the northern and western border of Texas. For the map: CityLab

Pennsylvania Department of Environmental Protection proposed new rules that backed off proposed noise regulations and location regulations for wastewater storage. 

Why did the agency back off noise regulations on a statewide basis?

• Industry & environmental advocates said that noise limits  were too vague
• The Agency will issue seprate guidance on noise

  The rules writing process has taken 4 years.  

TribLive Business

Companies scheduled to open manufacturing facilities in Mexico include:

• Ford
• Audi
• BMW
• Nissan
• Daimler

The expanded manufacturing is linked to:

• cheaper, more reliable and more efficient electricity that relies more on natural gas
• a labor force that is 20% cheaper than China

CNBC

Proposals for encouraging water conservation while not financially harming water utilities:

• Connection Fees for new users and new developments
  • Scale fees based on the size of their lot and house, the type of landscaping, and the efficiency of the property’s  fixtures
• Add financial water-saving incentives to connection fees

Case Study: Aurora Colorado

• Aurora’s connection fees provide incentives to builders to construct more water-efficient developments

Governing

Supporters:

• Brownsville Economic Development Council
• United Brownsville
• the chambers of commerce for South Padre Island, Harlingen and Los Fresnos
• the RGV Partnership
• South Texas Economic Energy Roundtable 

Rio Grande Guardian

Supporters face protestors, who say the LNG facility:

• will fundamentally change the coastal community with pollution of air and water
• will require the bulldozing of essential habitat for endangered species
• the LNG decisions will be made behind closed doors
• they are joined by medical professionals concerned about the health impacts of increased pollution and experts on conservation and the wildlife corridor.

Rio Grande Guardian

This week, Denton City Council adopted smaller set backs. It lowered the 1,200 set back to 1,000. 

KHOU notes that local frustration over drilling is mounting. 

GLO held its first online auction for rights to drill on state lands. The auction netted $20 million for public education.

PJ Tatler     World Oil     Nueces County Record Star   Texas Tribune

Farmers and urban areas are experimenting with leasing water rights. In California, the farmers have water and the cities need it.

Here’s what’s going down in the Golden State:

• The Palo Verde Irrigation District in Blythe, CA & the Metropolitan Water District—which supplies municipal water to the Los Angeles area, Orange and San Diego counties, and much of the Inland Empire— have entered into a leasing agreement.
• The farmers  leased millions of gallons of their Colorado River water rights to California’s coastal cities.

Pacific Standard: Could Leasing Water Rights Provide a Way Out of the Drought for California?

On September 2nd, the Texas Supreme Court will hear oral arguments related to the City of Houston’s authority to promulgate EPA like regulations on air and water quality.

What did the lower courts say?

• Trial court sided with business, granting a summary judgment. Inshort, Houston ordinance went too far.
• The First Court of Appeals found that the City is permitted to adopt its ordinances under the Clean Air Act 

Abbott filed an Amicus Brief on Tuesday. Read it here. The highlights:

Supreme Court Case No. 13-0768   Southeast Texas Record

Texas Weslyan becomes the 2nd North Texas institution of higher education to rely on new cogeneration technology.

UT-Dallas also employs cogeneration to diminish reliance on the state electric grid.

CBS DFW

Oklahoma Corporation Commission Monday announced new regulations for wells in certain earthquake prone areas. 

The new regulations require:

• Reduction in the amount of saltwater injected underground by 38 percent from current levels in the next 60 days.

Kansas made a similar move in March.

PermianShale News

The total amount of Texas wind bought through corporate power purchase agreements in the last 3 years: 1 GW.

GreenBiz

First Facebook’s new data center will be 100% wind powered, now HO announces its Texas data centers will be 100% powered by renewable energy.

How will HP accomplish this? A 12-year contract to buy 112 megawatts of wind power from a SunEdison wind farm in Texas.

The total amount of Texas wind bought through corporate power purchase agreements in the last 3 years: 1 GW.

GreenBiz

WHO

• Dr. Richard McLaughlin, Endowed Chair for Marine Policy and Law at the Harte Research Institute for Gulf of Mexico Studies at Texas A&M University-Corpus Christi
• Guillermo J. Garcia Sánchez, a doctorate candidate at Harvard Law School,

WHAT

• “The 2012 Agreement on the Exploitation of Transboundary Hydrocarbon Resources in the Gulf of Mexico: Conformation of the Rule or Emergence of a New Practice?” 
• “first bi-national study examining the legal issues involved with exploring and exploiting transboundary offshore oil and gas deposits in the Gulf.”

PUBLICATION

• The Houston Journal of International Law

WHAT IT MEANS FOR TEXAS

• Texas is the epicenter of all the business activity and policy decisions.

7WDAM

Sound contradictory to everything you’ve read about the impending doom of slower oil production? Well, the numbers show production is up.

• May 2015 averaged 2.4 million barrels per day
• May 2014 averaged 2.1 million bpd 
• 2nd straight month for gains in Texas
• Texas is roughly 44% of all active rig deployments in the U.S.

UPI

The impact on small business:

“The moment this rule goes into effect small businesses will have to seek a federal permit from the EPA to improve or develop any land that includes water no matter how incidental,” explained Karen Harned, Executive Director of the NFIB Small Business Legal Center. 

NFIB

Last week FERC (Federal Energy Regulatory Commission) said it will ask Energy Transfer Partners (the pipeline builder) for more proof that Texas, rather than the federal government, should regulate most of the project.

The BIG question for the pipeline:  Is this international pipeline, which leads to Mexico to partake in deregulation, is interstate (FERC regulation) or intrastate (Texas RRC regulation)?

Why does this matter? Throughout the country there have been legal trends denying the power of eimeint domain to pipelines that do not provide a public purpose to the state, that the pipe traverses. No eminent domain means negotiations with landowners, which is translated to delay.

Texas Tribune  Statesman    NewsOK

Bruce Evans is the new AEP Texas President.

He is currently vice president of Distribution Operations for AEP Texas.

Previously, he was:

• vice president – demand management for Nexant, Inc., in Houston
• president and chief executive officer of the former Central Power and Light Co. from 1996 to 1998.
• The first 21 years of his career were with West Texas Utilities, CPL, Central and South West and American Electric Power.
• Additionally, he has held a number of leadership positions with major energy consulting firms, as well as Cirro Energy and CPS Energy in San Antonio.

Laredo Times

This week Rhode Island began construction on its wind farm off Block Island.

Governing

• $300,000,000 to the Coastal Water Authority (Harris County) for an interbasin transfer project 
• $296,125,000 to the City of Houston (Harris County) for a water supply project 
• $953,405,000 to the North Harris County Regional Water Authority (Harris County) for a water supply project 
• $41,630,000 to the Central Harris County Regional Water Authority (Harris County) for a water supply project 
• $812,140,000 to the West Harris County Regional Water Authority (Harris County) for a water supply project 
• $555,845,000 to the North Fort Bend Water Authority (Fort Bend County) for a water supply project 
• $50,000,000 to the El Paso Water Utilities Public Service Board (El Paso County) for a land acquisition project 
• $705,000 to the City of Marfa (Presidio County) for a water well project  
• $1,210,000 to the Greater Texoma Utility Authority on behalf of the City of Tom Bean (Grayson County) for a water supply project 
• $27,640,000 to the Lone Star Regional Water Authority (Williamson and Bell counties) for a water supply project 
• $17,100,000 to the Palo Pinto County Municipal Water District No. 1 (Erath, Hood, Palo Pinto, and Parker counties) for a reservoir project 
• $90,000,000 to the City of Bedford (Tarrant County) for water system and water meter improvements 
• $82,105,000 to the North Texas Municipal Water District (Collin, Hunt, Rockwall, Dallas, Kaufman, Ellis, Rains, Fannin, and Denton counties) for a reservoir project 
• $440,000,000 to the Tarrant Regional Water District (Jack, Wise, Parker, Tarrant, Johnson, Ellis, Navarro, Henderson, Kaufman, Freestone, Denton, Dallas, Collin, and Rockwall counties) for a water supply project 
• $44,680,000 to the Upper Trinity Regional Water District (Fannin, Collin, Cooke, Dallas, Denton, Grayson, and Wise counties) for a reservoir project 
• $55,000,000 to the Canyon Regional Water Authority (Guadalupe, Bexar, Caldwell, Comal, Hays, and Wilson counties) for a water supply project 
• $76,000,000 to the City of Fort Worth (Tarrant, Denton, Johnson, Parker, and Wise counties) for an advanced metering system 
• $8,000,000 to the Guadalupe-Blanco River Authority (DeWitt, Victoria, Calhoun, Refugio, Gonzales, Caldwell, Hays, Comal, Guadalupe, and Kendall counties) for a seawater desalination project 
• $12,500,000 to the Hays Caldwell Public Utility Agency (Hays, Caldwell, Comal, and Guadalupe counties) for a water supply project 
• $28,300,000 to the Brazosport Water Authority (Brazoria County) for a brackish groundwater project 
• $7,100,000 to the Hidalgo County Irrigation District No. 1 (Hidalgo County) for an agricultural irrigation project

TWDB

Change is in the air for inter-regional planning rules. 

Proposed Rules are [here].

Comment Deadline is 8/4/2015

How high is too high for wholesale water and waste water pricing? According to 2 SOAH judges, Austin hit the two high mark and has been overcharging area water districts. 

The problem with the water rates? Austin defended its rates by pointing to non-water related projects like:

• municipal swimming pools & wildlife conservation
• “Just including a cost in the revenue requirement does not make that cost just, reasonable, and necessary to provide utility service,” the judges said.

Statesman

Direct Energy has a new online tool for customers to see how much electricity each appliance is pulling. Its a benefit of a smart meter.

But, as smart meters gather electricity information, that information turns into a treasure trove of information for data hackers. It’s a “data tsunami” as one energy CEO said.

Dallas Morning News | BizBeatBlog

“The Texas Public Policy Foundation’s Fueling Freedom Project today announced the launch of the Interstate Power Compact, an agreement between participating states to prevent the federal overreach of the Clean Power Plan.”  

The Interstate Power Compact will:

• be a powerful tool
• protect “Texas and all states from the EPA’s unconstitutional and overreaching proposed federal carbon rule so-called the Clean Power Plan”
• “allow states to join together to prevent the EPA from taking over our currently affordable and reliable electricity production capacity”

TPPF Announcement

Mark Sanders is the new executive director at Texas Renewable Energy Industries Alliance. His previous roles were:

• executive director of the Building Energy Retrofit Institute in Austin
• program manager at Lawrence Berkeley National Laboratories in California.

Austin Business Journal

California Water Commission yesterday set new rules concerning low water lawns. The rules will:

• eliminate grass from new office and commercial buildings
• reduce turf at new homes from 1/3 of landscaped area to 1/4

But, if new construction uses recycled water from toilets and showers, then the restrictions do not apply.

ABC7 Los Angeles

Beyond Coal a group seeking to end the use of coal is funded with:

• 10s of millions of dollars from Bloomberg Philanthropies
• Hewlett Foundation
• MacArthur Foundation
• Grantham Foundation
• Sandler Family Foundation
• Yellow Chair Foundation (David Filo, the co-founder of Yahoo)

Inside Philanthropy

September 2nd will be oral arguments to decide whether cities can create their own local agencies to regulate air quality.

Cities can create agencies to do what TCEQ and the EPA do?

In 2007, Houston city council decided it can do a better job. So, it created its own agency to regulate air quality. Houston required owners of facilities “within the scope of state law to register with city health officers and pay fees.”

The local air quality control agency quickly went to court…

• The appellate district for Houston (the 1st, for those who like numbers) agreed with Houston.
• The appellate court said  yes, the City of Houston may create its own air regulating agency under its police powers.
• Plus, the state hasn’t said Houston can’t explicitly do this.

SE Texas Record

On the eve of the 1st round of bidding in Mexico’s de-regulated energy market, let’s look at 5 economic and political impacts of this move:

1. ” Biggest economic moment for Mexico since the 1993 signing of NAFTA”
2. “an integrated continental energy market capable of “unleashing mutual economic, employment, and geopolitical benefits—a NAFTA-type collaboration,” as Manhattan Institute adjunct fellow Mark Mills put it in a 2012 report.”
3. “Biggest risks lay with Mexico’s weak rule of law and uncertain property-rights.”
4. ” Energy Intelligence Group website this month, Jason Fargo reported that the oil majors are expected to be most interested in the deep-water blocks “due to their high potential for significant discoveries.” With access to “existing infrastructure” and closer to home and in “a far more stable, pleasant place to do business” than the Mideast, Mexico is attractive to these companies.”
5. It is “an opportunity for the young, pragmatic president [President Enrique Peña Nieto] eager to make a name for himself.”

WallStreet Journal

Texas Secretary of State Carlos H. Cascos and Governor Abbott are pursuing economic development and stengthening Texas “economic bond” with Mexico.

They’re looking to Mexican Secretary of Foreign Affairs José Antonio Meade Kuribrena. Meade is also pro-business, economy minded official.

Can’t talk about Texas-Mexico and economic development without talking about Mexico’s de-regulated energy market.

• “The talks [Gov. Abbott & Secretary Meade] come amidst a request for proposals from Mexico’s state-owned electric utility for construction of a $1.5 billion, 155-mile pipeline from Nueces County to Brownsville, where it would connect with a $3.1 billion, 500-mile underwater pipeline to the Port of Tuxpan in the state of Veracruz, Mexico.”  

Valley Morning Star

On June 4th, Information Intelligence brought you news of the Pecos Pipeline. One month and 10 days later the Texas Tribune catches up and tells us about the project. Pecos Pipeline will be:

• A Mexico destined pipeline
• Cutting through Texas’ pride, Big Bend Park
• With no direct Texas public benefit of the oil and gas contained in the pipe
• Its a project uniting cattlemen, private property rights advocates and environmentalists
• It’s like Texas version of the Nebraska and Dakota fights over Keystone XL

Texas Tribune

Information Intelligence on June 4, 2015:

The Big Bend Conservation Alliance is uniting a diverse, bipartisan group of landowners, ranchers, and environmentalists. Its a group with deep roots, that kept the nuclear storage out of Hudspeth County in the 1990s. 

It is a growing group that does not like what Trans Pecos Pipeline means for Texas landowners, ranchers, environmentalists, and star gazers.

Hot issue- what impact will the pipeline have on the darkness required for the observatory? 

Marfa Public Radio   DesmogBlog

Clean Power Finance opened a new 500,000 square feet office at 2900 North Loop West. 

Clean Power Finance seeks to hire at least 100 new employees from the Houston area in the first quarter of 2016.

Houston Business Journal

Ft. Worth is home to a new $500 Million Facebook data center, powered by renewable energy.  Including an investment of 200 megawatts of new wind energy on a 17,000 acre site, 90 miles from the data center.

The facility broke ground this week and will be up and running by 2016 with 40 full time employees.

TechCrunch   Governor Abbott

Stillwater, Oklahoma has enacted new fracking zoning laws in response to citizen complaints and in opposition to oil and gas companies. The new requirements are:

• Setback to protected uses – 660 feet
• setback to unprotected uses – 400 feet
• reverse setback from an oil or gas well site – 400 feet
• noise standard – 69 decibels

Stillwater News Press

Congressman Henry Bonilla urges US comapnies to invest in Mexico’s Eagle For Shale and the Burgos Basin to stave off investment by China.

Natural Gas Intel Shale Daily

United States Geological Survey released a nationwide map for water use in fracking. 

USGS also reports that the water use skyrocketed after 2000, with the avergae gallons used “increased from about 177,000 gallons per oil and gas well to more than 4 million gallons per oil well and 5.1 million gallons per gas well.”

USGS Map   Public News Service

Water Revenue in California, like in Texas is big business. The water restrictions due to California’s drought are expected to cost governmental entities  $1 Billion in lost revenue.

Paying more for less makes for happy taxpayers? Probably not. Taxpayers in California, and in Austin, are not pleased with water districts raising their rates for less useage. 

Governing    US News and World Report

“Pedro Joaquín Coldwell, energy secretary, said Mexico planned to offer 670 exploration projects and 244 fields ready for development containing an estimated 107.5bn barrels of oil equivalent,”

Financial Times |Fast

Mexico’s de-regulation may be mired by contracting issues. The intitial 14 contracts contain provisions that allow the Mexican government to rescind the contracts for “administrative recission.”

Play by their terms or oops, no more contract. De-regulation with a catch?

Reuters

Three groups filed an official petition requesting that the Texas-nesting-only-golden-cheeked warbler be removed from the list of endangered and threatened species. The 3 Groups:

• Counsel for Texans for Positive Economic Policy (led by former Texas Comptroller Susan Combs)
•  the Texas Public Policy Foundation
•  Reason Foundation hand-delivered the petition to U.S. Fish and Wildlife Service (FWS) offices in Washington, DC.
   

The petition | LoneStar Success   TPPF

A proposal is floating around Sacramento to allow for excise taxes to be charged on high use water.

• The tax rate could be up to 3 times the normal water charge.
• Excise tax proceeds would be shared between the state & local governments for water conservation projects.

Sacramento Bee

California’s SB789

California SB 4 hit the middle, pleasing neither industry nor environmentalists. It will require:

• Requires  well permits
• Requires disclosure of what chemicals are used
• Requires water testing
• Requires studies of fracking’s impact
  Sacramento Bee
   

As even the crickets in the Capitol know, in a 5:4 decision the US Supreme Court overturned the EPA’s Clean Power Plan. The EPA will go back to the drawing board on its rulemkaing.

It’s a Huge Win for free market advocates.

Governor Abbott: “The Supreme Court rightly held that the EPA violated the law when it imposed a multi-billion-dollar regulation on power plants without considering whether the cost was justified.While today’s decision is good news for Texas, the EPA continues to push an agenda with little regard for the price tag these regulations would impose on employers and ultimately, Texans.”

AG Paxton: ““This ruling is a significant victory in our efforts to rein in an out-of-control EPA, which is a top priority for my administration. The EPA’s continued failure to consider the massive costs of its draconian regulations has killed jobs, crippled our economy and increased energy prices for consumers. We will continue to vigorously fight the agency’s lawless regulations.”

SE Texas Record

By 2018, Texas could gain from Mexico’s energy deregulation:

• 217,000 jobs
• $45 billion in additional gross state product
• South Texas could add more than 40,000 jobs and $5.6 billion in economic activity.

CPA Fiscal Notes

Georgia’s booming solar energy sector put Georgia on top as a clean energy job creator.

Georgia created 2,870 new jobs during the first quarter of 2015. That’s 1200 more jobs than #3 Texas.

Augusta Chronicle