From Copenhagen to Cancun

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1 From Copenhagen to Cancun Expo Negocios Verdes April 28, 2010 Texas General Land Office Jerry Patterson, Commissioner

2 Overview Oldest State Agency: Republic of Texas Congress established the General Land Office (GLO) in The core mission of the GLO is to manage over 13 million acres of land constitutionally dedicated to the Permanent School Fund (PSF). First job was to collect and manage land records. Today, additional responsibilities include real estate and energy management of state lands, oil spill clean-up and response, and stewardship of Texas coast.

3 Overview (cont d) Permanent School Fund established in 1854 to provide financial support of public schools apart from taxpayer money. Revenues to the fund are largely royalties collected off oil and gas mineral leases. Seeking diversification of PSF revenue stream; renewable programplays a role. Renewable Energy divisionformed to find leasing opportunities for state lands wind, solar, geothermal, and more.

4 Texas Renewable Energy Initiatives Overview Due to its vast size and diverse climate, Texas ranks first in the nation for its renewable energy resources. (Source: SECO) Our mission is to harness these resources through clean technologies. Source: SECO

5 New Texas Renewable Energy Law

6 Texas Wind Energy Texas is by far the #1 state for installed capacity with over 8,000MW in ERCOT; 9,000MW total. Wind nameplate capacity now approximates 10.5% of all ERCOT generation resources.

7 Texas Wind Energy Projects Onshore: One producing wind lease in far West Texas. Two leases in Texas Panhandle in research phase.

8 Texas Wind Energy Projects (cont d) Offshore: GLO executed first offshore wind lease in history of U.S. 7 active offshore wind leases each project 250MW or more. Met Tower gathering data for 4 yrs. (WL 02 Galveston County)

9 Texas Solar Energy & Statistics Texas' solar potential as well as energy experience gives our state the potential to be the U.S. anchor for solar development. Source: U.S. Department of Energy, Solar Program

10 Texas Solar Energy Projects GLO/Austin Energy Solar Lease. First utility scale solar project in Texas. Located on PSF lands in West Texas. Estimated 150MW+ capacity upon completion. Technology agnostic.

11 Texas Solar Energy Projects (cont d) San Benito Water Treatment Plant. 45 KW Photovoltaic project provides power to city plant (water purification). Constructed as partnership between City, GLO, EPA and NADBank. Largest solar project in Texas south of San Antonio. Awarded Texas Renewable Energy Project of the Year.

12 Texas Solar Energy Projects (cont d) At least two other major solar leases coming (very) soon. Some projects will use photovoltaic (PV) technology, others use concentrating solar power (CSP). These leases could dramatically increase deployed solar capacity in Texas.

13 Other Texas Renewable Energy Sources Geothermal. Successful data from DOE project. Resources in west, north central and coastal areas. Can use existing O&G infrastructure. Over 128,000 acres in Gulf of Mexico leased by Geo Texas Co. at April 7, 2009 bid sale. Geothermal is a baseload resource.

14 Other Texas Renewable Energy Sources (cont d) Natural Gas Vehicles. GLO administers NGV grant program to pay substantial portion of cost differential between diesel and natural gas vehicles. Public customers can purchase natural gas for vehicle use through the GLO. Available in certain counties with air quality attainment issues.

15 SUMMARY Renewable Energy Division is the new kid on the block at the GLO. In many cases, we started with a blank sheet of paper. Our operations and revenue should grow substantially in the coming years.

16 Alternative Fuels

17 Alternative Fuels Works to encourage alternative fuels, especially compressed natural gas (CNG) and liquefied natural gas (LNG). Public customers can purchase natural gas for vehicle use through the GLO. Economic development benefits. Texas fuel for Texas vehicles. State program helps cover incremental vehicle upgrades or costs. Environmental benefits NGVs reduce emissions significantly. Honda natural gas Civic GX, greenest light duty vehicle. Cummins natural gas engine already meets 2010 standard.

18 NGVs and Texas Stellar programs under way in major Texas urban areas. To mention just a few: The T in Fort Worth, Sun Metro in El Paso, DFW Airport, City of Lake Jackson, City of Dallas, Dallas Area Rapid Transit (DART), and H-E-B in Houston

19 Border Energy Border Energy Forum Started in El Paso in 1994 Looks at issues affecting energy and the environment throughout the 10 border states of Mexico and the U.S. Purpose To emphasize the best use of energy possible in our fast-growing region, for economic development and least possible environmental impact. Location October 2009: Houston, Texas Sept. 30 Oct. 1, 2010 CHIHUAHUA, Chih.

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21 Texas General Land Office Renewable Energy Division Contact: Soll Sussman GLO (4456)

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