Energy & Water

• 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

This week, Agriculture Commissioner Sid Miller created the Office of Water to ensure that the state’s largest user of water, agriculture, has a seat at the table to discuss water issues.

Paris News  Department of Agriculture Press Release

Coming off a win on its Clean Air win against the EPA, Texas is suing the EPA for its water rules.  Here’s hat texans have said about the EPA water rules that will track & map more waterways on private property. Texas Tribune

Governor Abbott:

“new level of absurdity by attempting to define ditches and ponds as part of the ‘navigable waters’ under the Clean Water Act​”

TPPF:

““EPA’s final redefinition of the meaning of ‘the waters of the United States’ under the Clean Water Act is not about water or clean water, it is about land—federal regulatory control of privately owned land.”

NFIB   Farmers and Ranchers  Cattle Raisers call the new EPA rule  a land grab.

Business leaders from San Antonio will be in Mexico city to  connect business from Eagle Ford shale and emerging energy and logistics issues south of the border. 

San Antonio-based logistics expert Jorge Canavati is leading a delegation of 40 business leaders.

San Antonio Business Journal

Mexico’s government announced $10 billion in electricity and natural gas projects. Including:

•   two pipelines linked to the United States.
  • 800-kilometer underwater pipeline costing $3.1 billion will connect Texas to the port of Tuxpan
  • 250-kilometer, $1.5 billion land pipeline will go from Brownsville, Texas, and link up with the underwater project.

Yahoo UK

Earthquakes use to be relegated to places like California and far away foreign lands. Not so much any more. Pourqoui?

The answer is up in the air.

• SMU scientists say quakes are linked to increase in fracking
• RRC sees no link between the two
• The 2016-2017 State Budget included $4.47 million for a new seismic monitoring program to pinpoint the location and source of the quakes.

FuelFix

Arguing that we had more of a water storage buffer in the 1970s, a Ft. Worth Star Telegram Opinion piece suggests that Texas should figure out how to increase water storage capacity.

The answer: HB 655 by Rep. Lyle Larson supporting Aquifer Recovery Storage to store excess water underground.

Ft Worth Star Telegram | Opinion by Researcher at BUREAU OF ECONOMIC GEOLOGY AT THE UNIVERSITY OF TEXAS AT AUSTIN.

Fast moving California legislation seeks to maka renewables accountable for 1/2 the state’s energy by 2030. 

As a result, the rooftop solar industry is on high alert to be the big policy issue for California.

Sacramento Bee

Howard Midstream Energy Partners announced the building of a pipeline from Webb County to Monterrey Mexico.

 The highlights:

• “Nonbinding interest indications for hub and transportation services on the Nueva Era system are now being accepted until July 17.”
• It will carry 600,000,000 cubic feet per day of gas
• The pipeline will run about 200 miles and will be 30 inches in diameter.

Oil & Gas Investor

British Columbia is holding a special summer session of their Legislature to adtop legislation for a new $36-billion LNG terminal and pipeline near Prince Rupert. 

They want to allow the B.C. government to enter into other agreements with  LNG proponents using cabinet orders, and without legislative approval.

Opponents sing the same tune as in the U.S.: Secret Deal with Foreign (U.S.) company. 

VanCouver Sun

The Tax Foundation says wind tax credit proponents are overstating the impact of the tax credits. 

How so?

• Wind relies on an assumption that, if the Production Tax Credit did not exist, the investment capital used to construct wind farms would simply disappear.
• If the wind tax credit did not exist, the federal government would gain tax revenues from other economic sectors to which investment would shift
• subsidies to any industry distort market prices, creating economic inefficiencies

Tax Foundation

The newly enacted California state budget contains provisions to ease environmental requirements for drought related groundwater & water recycling projects.

A state known for environmental regulations found a way to loosen environmental regulations.

Sacremento Bee

Denton has officially repealed its fracking ban ordinance approved by voters in November 2014.  Because nothing makes libertarian leaning tea party voters happier than having their vote changed by the state.

Courthouse News Service    FuelFix  Minneapolis Star Tribune   BBC News   

Denton Record Chronicle 

Previously:

TXOGA and GLO file motions for summary judgment to facilitate repeal of Denton City Council Fracking Ban ordinance.

TexasTribune

Litigation is the only means to determine which local regulations are permitted under 2015’s HB 40.

Denton is considering repealing it’s ban on fracking to implement regulations on fracking. Denton’s initial legal bills for the fracking ban are $220,000. KUT

Proposed rule changes will:

• expand the definition of interregional conflict to:
  • to include a situation where a recommended water management strategy is located in another region
  • And, that region has studied the impacts of the water management strategy on its economic, agricultural and natural resources. 
• will require the TWDB to review this information & decided whether there is a potential for a substantial adverse effect on the region.
• will require regional water planning groups to send a copy of their initially prepared plan (IPP) to other regions that contain a location or site of one of the recommended water management strategies ​​

• establishes a timeline for this review: conflicts will re resolved after Initially repared Planned are submitted to the Eexcutive Administrator in time for the resolution of the conflict to be incorporated into the revised and adopted regional water plans. 

  TWDB issue memo and proposal draft

TYexas Water Development Board authorized $20,275,000 for the following water projects on Tuesday.

• $3,080,000 in financial assistance to the Northwest Harris County Municipal District No. 22 (Harris County) for wastewater improvements
• $17,195,000 in financial assistance to the City of Amarillo (Potter & Randall counties) for a water supply project 

TWDB

This week, a man and his 92 year old mother were arrested for protesting* against fracking in Denton. Both were booked and charged with criminal trespass. 

Four police units repsonded to the protest. The protestors talked about protecting their private property rights and the use and enjoyment of their and other’s property. **

*Protesting involved sitting chained to a gate.

**Both sides harness private property rights as their rallying cry on this issue.

EagleFord Texas  Denton Record 

29% of Arizon’a energy use is accounted for by the energy neede to move water from the Colorado River to Tucson & Phoenix.  

15 t ons of coal per minute to move the water more than 330 miles. 

ProPublica  538

Water is a precious resource. Missoula Montana has recieved court approval to sieze a private water company by eminent domain. 

The private water company now has 30 days to provide Missoula with an appraisal of its valuation.  

The legal fees to get to this point: $3 million.

KAJ18

Washington Times

21 of the 37 largest aquifers worldwide (none of which are in the U.S.) are shrinking beyond sustainability. 

With maps: Washington Post

Since only 1.5 PSI change can trigger an earthquake, scientists want more data on what is happening underground.

This week scientists from SMU and UT Austin asked the Railroad Commission for more earthquake data including:

• Requiring disposal well operators to provide bottom hole measurements
• Requiring disclosure of saltwater disposal volume and pressure data on either a monthly or quarterly basis (its annual reporiting today)

Steve Everley with the industry-funded Energy In Depth responded to the 1.5PSI statement by saying “That’s less than half of what’s required to inflate an NFL football.”

San Antonio Business Journal

“Dublin [Ohio]-based Cardinal Energy Group Inc. (OTCQB: CEGX) is moving this week from Frantz Road to the tallest building in Abilene, Texas, CEO Timothy Crawford said in a statement.”   

Columbus Business First

UPDATE: The key terms for oil contracts will only be revealed on the day of tenders according to Mexico’s Finance Ministry. 

Reuters

​34 companies applied for the July 15th auction to drill in Mexico’s Gulf of Mexico territory. Successful companies include:

• Exxon
• Chevron
• Pacific Rubiales Energy Corp

Output estimates are:

• $62.5 billion in private investments by 2018,
• Increase Mexico’s annual oil output by 500,000 barrels/day

Bloomberg    Houston Business Journal

In an opinion penned by a conservative Bush administration appointee, an appeals court in DC denied states challenge to the EPA CO2 rules. 

McClatchy

Texas businesses and others want a piece of the pie in Mexico’s deregulated energy market. But, how are Texas companies competitive in light of Mexico’s response to Texas spending $800M for border security?

• “The Mexican government says it regrets Texas Gov. Greg Abbott’s decision to sign into law an $800 million border security package…”
• “Mexico’s Foreign Relations Department said Wednesday the new law will “promote division between our societies, and runs contrary to the principles and values governing the U.S.-Mexico bilateral relationship.” 

AP via Statesman

Litigation is the only means to determine which local regulations are permitted under 2015’s HB 40.

Denton is considering repealing it’s ban on fracking to implement regulations on fracking. Denton’s initial legal bills for the fracking ban are $220,000. KUT

A California Court will decide whether charging residents for water, pumped from groundwater is an unconstitutional tax. 

Great Oaks Water Co. vs.  Santa Clara Valley Water District 

Courthouse News