Texas

Energy and Environment Reporting for Texas

Valero Request for Tax Break Draws Protest

Early Wednesday morning, a caravan of buses set out from the Houston area, headed for Austin and the headquarters of the Texas Commission on Environmental Quality. Their goal? To protest a request from Valero Energy Corp. for tax breaks for some of its oil refineries through a system that could give millions of dollars back to one of Texas’s most profitable corporations.

So far this year Valero has earned more than $2 billion. That makes the possible millions Valero wants in tax exemptions kind of seem like small potatoes.

But that, in turn, might be what has the 150 community activists and environmentalists chanting “Say ‘no’ to Valero” in front of TCEQ headquarters on Wednesday so angry. Continue Reading

Why So Few Solar Farms in Texas?

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The Obama administration announced last week that 445 square miles of the West — more than 285,000 acres — will be zoned for solar energy development. Across parts of Arizona, California, Colorado, Nevada, New Mexico and Utah, the government is essentially fast-tracking large tracts of land managed by the Bureau of Land Management (BLM) for solar energy development. The BLM has done the research and surveys, now companies can start applying for permits to build solar energy farms. It can shave one to two years off the approval process. The areas are called Solar Energy Zones (SEZs), and they represent an important step forward in the development of solar energy.

But Texas wasn’t on the list. Why? I put the question to Megan Stouffer, the State Planning and Environmental Coordinator for BLM New Mexico, which manages agency projects in that state as well as Texas, Oklahoma and Kansas.

“Texas likes to be separate,” she says.

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In Texas Drought, “Who Holds the Hammer?”

It was hammer time this week at a joint meeting of the Texas Senate Committee of Agricultural and Rural Affairs and the Committee on Natural Resources.

Lawmakers were there to hear about the impact of the ongoing drought on the state. It’s already the worst single-year drought in Texas history, and could become a new drought of record if the dry weather continues.That prompted state Senator Troy Fraser (R-Horseshoe Bay), who chairs the panel, to wonder how the state can enforce water conservation if it needs to.
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With Profits Like These, Does Valero Need a Tax Break?

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Valero Chairman and CEO Bill Klesse

Yesterday we reported on Valero Energy Corporation’s attempts to get a tax exemption from the state of Texas for upgrades it made to its refineries. The money comes in the form of a property tax exemption from local appraisal districts, which could mean money lost from already-short school and city budgets. Looking at the arguments for and against, we examined Valero’s financial earnings and concluded that one of the arguments against is that they might not need the money in the first place.

Today, Valero announced earnings for the third quarter of 2011, and they are having a banner year thus far. Their net income was reported at $1.2 billion, as opposed to $303 million for the same quarter last year. For this year so far, they have a net income of $2.1 billion. These were Valero’s best quarterly results in over four years, according to the company’s CEO and Chairman, Bill Klesse.

What is responsible for the company’s good fortune? Continue Reading

Hungry for Electricity, Mexico Considers Border Fracking

The Eagle Ford Shale formation in South Texas has made headlines for its abundance of natural gas, but the formation doesn’t end at the Rio Grande. That fact is not lost on the Mexican government.

This rig uses hydraulic fracturing to obtain gas from Texas' Barnett Shale formation. Photo courtesy of KUT News.

Last week, the Mexican Minister of Energy proposed ramping up hydraulic fracturing operations in Northern Mexico. The announcement wasn’t especially newsworthy for many this side of the border, but down South?

“It’s huge! It’s huge!” said Jaime Williams, president of the energy and climate change commission of CONCAMIN in Monterrey, which is akin to Mexico’s industrial chamber of commerce.

“We are the interested party! The industrial sector, the private sector is the interested party in it,” Williams told KUT News.

Williams said the maquilas (factories) in Mexican border states use a lot of electricity. They’ve been importing more and more natural gas from Texas just to keep the lights on in recent years.

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UT Economists Doubt “Green” Jobs Economic Impact in Texas

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Green industries promise new jobs but Texas is still dominated by traditional energy.

Federal funds would be better spent on traditional jobs rather than those in “green energy” businesses, according to economists with the University of Texas Bureau of Economic Geology.

“We looked as objectively as we could,” said Michelle Foss, Chief Energy Economist with the Bureau. “And for quite a long time, for the foreseeable future, (Texas) would be losing more than gaining from any policy that caused a diversion of investment away from our traditional energy businesses and towards green energy businesses.”

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A Plan to Save Haiti’s Forests, Hatched in Texas

Take a look at this satellite image of the Caribbean island of Hispaniola. Haiti’s on the western side, the Dominican Republic is on the east. Now look at the border dividing those counties and you notice a troubling detail. In many places, the forests on the Haitian side disappear:


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“Ninety-five percent of Haiti’s virgin forests, which used to be 100 percent forested and was one of the richest, most verdant forests in the face of the earth, is gone,” Lewis Lucke, former U.S. ambassador to Haiti, told StateImpact Texas. “And the reason it’s gone is because of the manufacture of charcoal.”

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The Arguments: The Valero Tax Break

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There’s a request for a tax refund currently under consideration by the Texas Commission on Environmental Quality (TCEQ) from the Valero Energy Corporation, one of the world’s largest oil refiners. Valero is asking for money under a state law that says companies don’t have to pay taxes on equipment (in this case, something called a hydrotreater) that reduces on-site pollution. The request was originally made in 2007, when Valero bought the equipment. The catch? The property tax refunds would come from appraisal districts, which means money taken back from cities and schools that are already struggling.

Here are the arguments, both for and against:

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A Hidden Danger of Fracking

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An oil depot explosion in China.

Much of the attention to the potential dangers of oil and gas exploration, especially in hydraulic fracturing (aka “fracking”), has focused on the environmental impact it may have. Will it cause earthquakes? Can it pollute the water? Does natural gas have a bigger carbon footprint than coal?

But a new study from the Chemical Safety Board (CSB), a federal agency that investigates chemical accidents, demonstrates another, less obvious danger: teenagers.

Children and young adults frequently socialize at oil sites in rural areas, unaware of the explosion hazards from storage tanks that contain flammable hydrocarbons like crude oil and natural gas condensate.  The unintentional introduction of an ignition source (such as a match, lighter, cigarette, or static electricity) near tank hatches or vents can trigger an internal tank explosion, often launching the tank into the air and killing or injuring people nearby.

Last year in the rural community of New London, Texas, an M-C Production oil tank exploded when a cigarette was lit by a couple in their mid-twenties. The exploding tank flew 48 feet away, killing the woman and seriously injuring her companion. An investigation by the CSB revealed that “at the time of the explosion the oil site had no fences or hatch locks, nor were the tanks designed to reduce the potential of an internal explosion.” Continue Reading

Zombie Activists Going For “That Oily Look” This Halloween

Frederick Florin/Getty Images

This Halloween, the streets of Austin will be invaded by a whole new class of the undead: Oil Zombies.

In a bid to win the hearts and braiiiiiins of Austinites, an environmental group called Texans Against Tar Sands is putting together a gathering of crude-soaked undead to protest the Keystone XL pipeline.

The protest is modeled on a similar one that took place in June in London called the “Tar Sands Undead Walk.”

But not everyone is eager to join the marauding hordes. Continue Reading

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