EnergyTHE Council Quarterly FALL 2019 The 2019 State and Provincial Trends in Energy and the Environment Conference Convenes on the Gulf Coast The 2019 State and Provincial Hoffman, and Chairman for the Technology” was given by Mr. Trends in Energy and the Center for Legislative Energy and Ryan Hoffman, Director, Kansas Environment Conference took Environmental Research (CLEER), Oil & Gas Conservation Division. place in Biloxi, Mississippi on June Representative Ken “Technological advances in the oil 13-16. Discussion topics ranged Bragg, presided over the meeting. and gas industry present unique from State Oil and Gas Regulatory Mississippi Senator Briggs Hopson challenges to State Oil and Gas Programs to The Gulf Coast’s Role and Representative Jim Beckett regulatory programs,” Mr. Hoffman in U.S. Energy Exports. Additionally, served as Co-Vice Presidents for said. He told participants that one meeting participants had a unique the Conference, assisting with of these challenges is induced opportunity to tour Chevron’s leadership duties for the conference. seismic activity associated with Pascagoula Refinery. horizontal well production and The Opening Address on large volume disposal operations. Chairman of the Energy Council, “State Oil and Gas Regulatory To effectively address prior trends Kansas Representative Kyle Programs – Adoptions to Evolving and mitigate future risks, State Oil and Gas regulatory programs must communicate with the regulated industry, regulatory programs from other jurisdictions, and national organizations to adapt their programs to issues associated with technological advances, Mr. Hoffman concluded.

Next on the agenda was Mr. Chuck Caisley, Senior Vice President of Marketing, Public Affairs & Chief Customer Officer, Evergy, Inc. He reported on “Preparing States for a Higher Electric Vehicle Market Share.” Participants at the 2019 State and Provincial Trends Conference visited the Chevron Re- finery in Pascagoula, MS. Operations began at the refinery in 1963 and 351,000 barrels See STATE and PROVINCIAL TRENDS of crude oil are processed at the refinery each day. continued on page 3 The Energy Council Quarterly Goes Digital We are excited to announce that future editions of The Energy Council Quarterly will be emailed to members and available on the home page of www.theenergycouncil.org! If you would like to continue receiving The Energy Council Quarterly in the mail, please email the Council at [email protected] or call 972-243-7788. The Energy Council Returns to Alaska The Energy Council’s 2019 Annual Meeting takes place in Anchorage, Alaska September 19-21, for the first time since 2011. The Energy Council Quarterly is the official publication of the Energy Council, a legislative organization comprised of 13 states and two Welcoming attendees to the conference will be Kansas international affiliates, drawn from the major Representative Kyle Hoffman, The Energy Council Chairman; energy producing regions of the United States Arkansas Representative Ken Bragg, Chairman of the Center for and Canada. The Energy Council provides a forum for Legislative Energy and Environmental Research (CLEER); Alaska discussing government policies regarding energy and the environment. Senate President Cathy Giessel; and Alaska Senator Bert Stedman, who will both serve as Co-Vice Presidents for the 2019 Annual Meeting. For information regarding the Energy Council Quarterly or the Energy Council, please contact: The meeting begins on Thursday evening, with a Welcome Reception. It will conclude on Saturday evening, which will The Energy Council allow for a travel day on Sunday. 13760 Noel Road, Suite 1160 Dallas, 75240 Phone: (972) 243-7788 Among discussion topics to be considered at the 2019 Annual Fax: (972) 243-7722 Meeting are: E-mail: [email protected] OICERS • Unconventional Unconventionals Representative Kyle Hoffman Kansas • The Challenges of a 100 Percent Renewable Chairman Energy Future

Senator Steve Neville • Domestic Impacts of Alaska’s Role in Global Vice Chairman Energy Trade

Tara Shaw • Integrating the Next Generation of Transportation and Secretary, Treasurer and Executive Director Energy Infrastructure

STA • Community Distributive Generation Evya Richards, CMP Manager - Meeting Planning/Publications • The Potential for Large Pump Hydroelectric Capacity in the West Jane Taylor Manager - Financial/IT • The International Maritime Organization’s 2020 Sulfur Isela Vera Limit Regulations Manager - Administrative • Grid Modernization with Equity in Mind

• Work Force Challenges for the Energy Sector Tell us what you think! We welcome your suggestions and feedback. Please • Post Clean Water Plan – What’s Next? email [email protected] • North America Energy Security – the U.S. and Canada and Continental Trade

• CLEER UAB Seminar: Water Issues Associated with Energy Production

More information is available at www.theenergycouncil.org.

2 THE ENERGY COUNCIL QUARTERLY • FALL 2019 State and Provincial Trends continued from page 1

natural gas produced in the Rockies Basin to the West Coast. As with DAPL, Ruby does not cross any Indian reservation lands but passes through former treaty and aboriginal lands of various tribes. The Council of Energy Resource Tribes, a tribal advocacy organization, assisted Ruby’s owner in strengthening tribes’ ability to participate in tribal consultation.

The next speaker on this topic, Professor Lindsay Robertson, stated that tribes and First Nations, states and the private sector could together achieve economic development Standing (left to right): Arkansas Representative Ken Bragg, Chairman of CLEER; Mississippi goals unattainable by any two of Senator Briggs Hopson; Kansas Representative Kyle Hoffman, Chairman of The Energy Coun- these operating without the other. cil; Kansas Corporation Commission Director Ryan Hoffman; and Mississippi Representative A broader knowledge of the rules Jim Beckett opened the 2019 State and Provincial Trends General Session in Biloxi. governing the legal relations among According to Mr. Caisley data shows Select Committee on Tribal Relations, the three, however, is essential to that states must be prepared by and Professor successful cooperation. Professor providing the following to consumers: Lindsay Robertson, Chickasaw Robertson spoke about aspects of - Smart electrification; Nation Endowed Chair in Native Law, this relationship that can materially - Proactive policymaking; University of Oklahoma College of affect business relations and explored - Economic development; Law presented. avenues to education. - Customer programs; - Utility cost and infrastructure Senator Ellis began the discussion Addressing “Trends in Refining” was advantages; and, explaining that there are more than Ms. Susan Grissom, Director and - Improved environment. 570 federally recognized Indian Chief Industry Analyst, American tribes in the U.S. “It is really important Fuel & Petrochemical Manufacturers. A “Canadian Oil Pipeline Update” when dealing with an Indian nation to Ms. Grissom gave attendees an was given by Mr. Jonathan Timlin, recognize that, and to recognize there overview of the refining industry, the Vice President of Projects, National is not one set story or document you refining process and a discussion of Energy Board (NEB). According to Mr. can read, each tribe has their own current issues and trends in refining. Timlin, the sphere in which energy unique history with the government,” She also took an opportunity to regulators operate in the 21st century Senator Ellis said. detail the upcoming change in is in constant flux and unpredictable. the sulfur specification for marine Canadians count on the National She briefly discussed the Dakota fuel mandated by the International Energy Board, Canada’s federal Access Pipeline (DAPL), the Standing Maritime Organization, and the energy regulator, to keep them safe Rock Indian Reservation, and the impact of sanctions on the global and protect the environment, and associated mass protests. Senator Ellis crude supply and crude supply to to help achieve reconciliation with encouraged proponents of similar U.S. refineries. Indigenous peoples. “The NEB will energy projects to bear the lessons continue to focus on the activities that of DAPL in mind, and encouraged On Friday afternoon following the improve the services of Canadian’s robust tribal consultation to ensure last general session, Chevron’s regulatory framework, requirements the project’s success. Pascagoula Refinery hosted The and performance,” Mr. Timlin said in Energy Council for a tour of its his conclusion. In Wyoming, Senator Ellis said, an facilities. Since beginning operation example of the energy industry’s in 1963, Chevron’s Pascagoula Friday morning’s panelists reported effective use of tribal consultation on “Tribal and First Nations Law is the Ruby Pipeline Project (Ruby), See STATE and PROVINCIAL TRENDS and Energy Law in North America.” a 700-mile interstate pipeline continued on page 4 The Honorable Affie Ellis, Chairman, completed in 2011 that delivers

THE ENERGY COUNCIL QUARTERLY • FALL 2019 3 State and Provincial Trends continued from page 3

Refinery has grown to be the “The Gulf Coast’s Role in U.S. Energy growth of clean energy businesses corporation’s largest U.S. refinery and Exports” was covered by Mr. Robert based on available policy mechanisms one of the top petroleum refineries McDonald, Senior Analyst, Value and advanced research conducted by in the United States. The refinery’s Chain Optimization-U.S. East & Latin the state universities. success is built upon Chevron’s America, Chevron Corporation. business and community partnerships Mr. Sullivan spoke next on the panel. with the people of Jackson County, Mr. McDonald stated that the U.S. He stated that for some time now Mississippi, as well as the production Gulf Coast Products Export market there has not been a coherent federal of quality products in ways that are is dynamic and highly liquid with energy policy. He added that energy compatible with the community and export volumes fluctuating over policy is not a partisan issue, but a the environment. time, primarily driven by supply and regional issue. “States that are like- demand fundamentals. He noted that minded and have the same goals Saturday morning’s “Breakfast additional factors that influence actual see the value of having affordable, Address: Distribution System export levels include refinery design, available, reliable, and sustainable Planning & Electric Grid Reliability degree of refining and marketing energy for their communities,” & Resiliency,” was given by Mr. integration and location of markets, Sullivan said. Anthony Wilson, Chairman, President government policies, logistical and CEO, Mississippi Power. “One constraints, and other elements, such Sullivan noted that energy demand of the many advantages of being a as shipping freight rates that affect the is expected to increase 30 to 40 Mississippi Power customer is being economics of export opportunities. In percent by 2040. That is tantamount a part of much larger system. This his conclusion, he said that Chevron to adding two more USA-sized State and Provincial Trends makes a significant difference when would explore these issues using consumers to the globe. He estimated continued from page 4 you are talking about restoration Chevron’s US Gulf Coast refineries as the growth will require an additional efforts, innovation initiatives and specific examples of how to apply the 14.3 billion barrels of oil each year; technological advances,” Mr. Wilson Products Export framework. 200 new nuclear power plants; 850 said. new natural gas plants; 524 new coal A panel discussion entitled “Policy plants; and other additional energy Mississippi Power is part of Southern Integration & Innovation: Approaches, infrastructure support. In complex, Company, the second largest energy Challenges, Solutions and Success expensive energy systems, planning company in the United States. With Stories in Clean Energy,” was next on now will be essential in order to the company’s power delivery system the agenda. The two panelists were maintain the level of comfort we of transmission and distribution, there Dr. Sumesh Arora, Energy Director, expect. are about 172-thousand miles of Mississippi Development Authority power lines strewn across the system. and Mr. Patrick Sullivan, President, “Stranded Assets Tools” was the Considering Southern Company’s Mississippi Energy Institute. subject presented by the Honorable footprint, we have to be ready in Steve Neville, Ranking Member, this part of the country to respond to Dr. Arora spoke first on the topic Senate Finance Committee, New threats to our customers’ livelihood and noted that Mississippi’s energy Mexico Senate. Senator Neville and our electric infrastructure, Mr. economy contributes over 15 percent explained that stranded assets Wilson said. to the state’s GDP and generates are assets that have suffered from $1.1 billion annually in state and unanticipated or premature write- Mississippi Power has collaborated local taxes. The mission of the Energy downs, devaluations or conversions with the Navy’s Seabee Base to and Natural Resources Division to liabilities. According to the Senator, install solar energy to help ensure at the Mississippi Development in Farmington, New Mexico they their resilience; collaborated with Authority is to strengthen the state’s are taking a proactive approach to local communities to install lighting energy economy by promoting its address a power plant that risks being and surveillance cameras to make vast natural resources, encouraging stranded. neighborhoods safer; and has energy efficiency, supporting electrified critical assets at the Port energy workforce development and PNM Resources, an energy holding of Gulfport to power Mississippi’s enhancing energy security. According company based in New Mexico, is growth as a state. to Dr. Arora, Mississippi presents moving toward eliminating coal from several exciting opportunities for the its energy mix and closing down its

4 THE ENERGY COUNCIL QUARTERLY • FALL 2019 In Memoriam – Senator John Pinto The Honorable John Pinto, New Mexico State Senator, passed away on May 24, 2019 in Gallup, New Mexico. He was 94.

He was elected to the in 1977; he was the longest-serving member of the New Mexico Senate and one of the longest-serving members of The Energy Council.

Senator Pinto was a Marine Corps veteran and a member of the elite group of Navajo men who used the Navajo language to develop an unbreakable code to transmit military messages in the Pacific Theater during World War II. He was among the Code Talkers who received Congressional Silver Medals in 2001.

Senator Pinto was renowned as a gentleman, a gracious collaborator and selfless public servant who steadfastly pursued his vision to the betterment of the residents of New Mexico, the Navajo people, and The Energy Council. John Pinto New Mexico Senator On behalf of his friends and colleagues at The Energy Council, we extend our heartfelt condolences to Senator Pinto’s family and to the Navajo Nation.

San Juan Generating Station by 2022. Production?” was covered by Mr. noted that society functions with This move will impact the power Randall Luthi, President, National a diverse set of applications with plant, investors, employees, and the Ocean Industries Association. energy storage with a diverse set of nearby San Juan Mine, Senator Neville battery technologies. said. New Mexico officials passed an “The offshore energy industry is not Energy Transition Act, which includes dead, nor is it irrelevant, but it could Dr. Ingram feels that the fundamental workforce-training provisions and be doing a lot better than it is,” Mr. limit to developing new technologies provides transition assistance for Luthi said. He believes rising global is the current lack of available affected communities. This law allows energy demand will spur trillions of transformative materials, which will PNM Resources to recoup some of its dollars of energy investment in the support the ever-increasing energy stranded assets costs by issuing bonds coming decades, and as onshore demands of society. Dr. Ingram also at lower interest rates to pay off its shale investments have slowed down, reported on The Joint Center for debts. there has been a rise in offshore Energy Storage Research (JCESR), a investment. However, Mr. Luthi U.S. Department of Energy’s Energy Senator Neville told attendees that noted, the offshore recovery has been Innovation Hub, which is tasked the City of Farmington also signed a uneven, with the Gulf of Mexico still with discovering, developing, and letter of intent with Enchant Energy lagging behind other basins. Luthi evaluating such transformative that gives the city the option to sell said that through a new Five-Year materials. The outlook is to be able the plant to Enchant Energy. The Program, royalty reform and other to provide the fundamental science company has commissioned a study to policy changes, U.S. Policymakers enabling commercialization of next- determine the feasibility of installing have a chance to make U.S. offshore generation batteries ahead of the carbon capture technology at the energy competitive again. typical product development cycle, plant. In closing, he said officials Dr. Ingram concluded. are hopeful such technology will Saturday afternoon’s CLEER University help the power plant meet the Energy Advisory Board (UAB) Seminar was On Sunday morning, The Energy Transition Act’s carbon-free goal and on the topic of “Global Advances in Council and CLEER Business keep the current, good paying jobs in Battery Storage Technology.” Dr. Brian meetings were held. The CLEER San Juan County. Ingram, Materials Engineer, Chemical Program Advisory Board Planning Sciences & Engineering Division, Session, which gathered input for the “Are Shale Plays Overshadowing Argonne National Laboratory briefed 2019 Annual Meeting, followed the Additional Opportunities for Increased meeting participants. Dr. Ingram Business Sessions.

THE ENERGY COUNCIL QUARTERLY • FALL 2019 5 NEW MEMBERS JOIN THE ENERGY COUNCIL’S EXECUTIVE COMMITTEE ALASKA Representative DeLena Johnson Representative DeLena Johnson has served in the Alaska House of Representatives since 2016. She serves as Minority . She is a member on the Education; Legislative Council; and Legislative Ethics Committees. Representative Johnson, and her husband Steven, have five children and two grandchildren. They reside in Wasilla.

DeLena Johnson Representative Chris Tuck Alaska Representative Representative Chris Tuck has served in the Alaska House of Representatives since 2009. He currently serves as the Chair for the Legislative Budget and Audit Committee and Vice Chair for House Military & Veterans’ Affairs Committee. He serves as a member of the Resources; Education; Arctic Policy, Economic Development & Tourism; and Joint Armed Services Committees. Representative Tuck, and his wife Devon, have one child and call Anchorage home.

Chris Tuck Alaska Representative ARKANSAS Representative Representative Justin Gonzales is serving his third term in the Arkansas House of Representatives. He serves as Vice-Chair for the House State Agencies & Governmental Affairs Committee. For the 92nd General Assembly, he also serves on the House Public Health, Welfare, and Labor Committee, the Joint Energy Committee, and the Legislative Joint Auditing Committee.

Representative Gonzales is a father of two and currently lives in Okolona with his wife, Cassie. Justin Gonzales COLORADO Arkansas Representative Representative Dominique Jackson Representative Dominique Jackson was elected to the Colorado House of Representatives in 2016. She currently serves as Chair for the Energy & Environment Committee. She serves as a member of the Health & Health Insurance; Legislative Council; and Energy Legislative Review Committees. Representative Jackson, and her husband Wade Hansen, reside in Denver.

Dominique Jackson Colorado Representative NEW MEXICO Representative Micaela Cadena Representative Micaela Cadena was elected to the New Mexico House of Representatives in 2018. She currently serves as a member of the Judiciary and the Agriculture & Water Committees. She also serves as a member of the following Interim Committees: New Mexico Finance Authority, Economic and Rural Development, and Legislative Health & Human Services. Representative Cadena makes her home in Mesilla. Micaela Cadena New Mexico Representative 6 THE ENERGY COUNCIL QUARTERLY • FALL 2019 NEW MEMBERS JOIN THE ENERGY COUNCIL’S EXECUTIVE COMMITTEE NEW MEXICO Representative Representative Greg Nibert has been serving in the New Mexico House of Representatives since 2017. He serves as a member on the Judiciary and State Government, Elections and Indian Affairs Committees. He also serves as a member on the Legislative Ethics and Water & Natural Resources Interim Committees. Representative Nibert, and his wife Carolyn have two children and currently live in Roswell.

Greg Nibert New Mexico Representative President Pro Tempore Senate President Pro Tempore Greg Treat was elected to the Oklahoma Senate in 2011. He serves as Ex Officio voting member of all Committees. Senator Treat, and his wife Maressa, reside in Oklahoma City with their three children.

Greg Treat Representative Kevin McDugle Senate President Pro Tempore Representative Kevin McDugle was elected to the Oklahoma House of Representatives in 2016. He serves as the Chair of the Wildlife Committee. He also serves as a member on the Veterans & Military; and Energy & Natural Resources Committees; and the Appropriations Subcommittee on Non-Appropriated Agencies. Representative McDugle, and his wife Tracy Rogers, make their home in Broken Arrow.

Kevin McDugle Oklahoma Representative TEXAS Representative Chris Paddie Representative Chris Paddie was elected to the Texas House of Representatives in 2012. Representative Paddie serves as the Chair of the Energy Resources Committee. He also serves as Vice-Chair of the Sunset Advisory Commission. He is a member on the Licensing and Administrative Procedures and Redistricting Committees. Representative Paddie, and his wife Brooke, have two children and make their home in Carthage.

SASKATCHEWAN Chris Paddie Member of Legislative Assembly Doug Steele Texas Representative MLA Doug Steele has served the Cypress Hills Constituency since 2016. He serves as the Legislative Secretary to the Minister of Energy and Resources. MLA Steele, and his wife Phyllis, have three children and make their home in Gull Lake.

Doug Steele Member of Legislative Assembly THE ENERGY COUNCIL QUARTERLY • FALL 2019 7 The Energy Council’s 2019 State and Provincial Trends in Energy and the Environment Conference June 13-16, 2019 Biloxi, Mississippi

Opening Breakfast and Welcome Wyoming Senate Are Shale Plays Overshadowing Remarks Professor Lindsay Robertson Additional Opportunities for The Honorable Kyle Hoffman Chickasaw Nation Endowed Chair Increased Production? Kansas House of Representatives in Native American Law Mr. Randall Luthi and Chairman, The Energy Council University of Oklahoma College of President Law National Ocean Industries The Honorable Ken Bragg Association (NOIA) Arkansas House of Representatives Trends in Refining and Chairman, CLEER Ms. Susan Grissom CLEER University Advisory Board Director/Chief Industry Analyst Seminar: Global Advances in The Honorable Briggs Hopson American Fuel & Petrochemical Battery Storage Technology Mississippi Senate and Co-Vice Manufacturers Dr. Brian Ingram President for State and Provincial Materials Engineer, Chemical Trends Breakfast Address: Distribution Sciences & Engineering Division System Planning & Electric Grid Argonne National Laboratory The Honorable Jim Beckett Reliability & Resiliency Mississippi House of Representatives Mr. Anthony Wilson Working Breakfast: Energy Council and Co-Vice President for State and Chairman, President and CEO and CLEER Business Sessions Provincial Trends Mississippi Power

State Oil and Gas Regulatory The Gulf Coast’s Role in U.S. Energy Programs – Adoptions to Evolving Exports Technology Mr. Robert McDonald, Mr. Ryan Hoffman, Director Senior Analyst Kansas Corporation Commission Value Chain Optimization-U.S. East Oil & Gas Conservation Division & Latin America Chevron Corporation Preparing States for a Higher Electric Vehicle Market Share Policy Integration & Innovation: Mr. Chuck Caisley, Senior Vice Approaches, Challenges, Solutions President of Marketing, Public and Success Stories in Clean Energy Affairs & Chief Customer Officer Dr. Sumesh Arora Evergy, Inc. Energy Director Mississippi Development Authority Canadian Oil Pipeline Update Mr. Jonathan Timlin Mr. Patrick Sullivan Vice President, Projects President National Energy Board Mississippi Energy Institute

Tribal and First Nations Law and Stranded Assets Tools Energy Law in North America The Honorable Steve Neville The Honorable Affie Ellis Ranking Member, Senate Finance Chairman, Select Committee on Committee Tribal Relations New Mexico Senate