Wednesday, July 1, 2009

A means to create a strategy and process for Regional Economic Development in El Paso:

Regional Economic Development, the ‘Organisation of Economic Cooperation and Development (OECD)’ and the engagement of the Higher Education Institutions in the region as a means to create a strategy and process for Regional Economic Development

This is an initiative to pursue regional economic development in the greater El Paso, Southern Dona Ana County (New Mexico), and northern Chihuahua (Republic of Mexico) areas by the interaction of the institutions of Higher Education and the vision for economic growth and sustainability within the existing economies.

The Organisation for Economic Cooperation and Development (OECD), headquartered in Paris, France and of which more than 30 industrialized nations are members, including the U.S., has engaged a regional economic development study and evaluation for the last 7 years in various regions of the world to assess the interplay and strategy for economic development based on the interplay of higher education and business demand. They are now in their second round, and they were focused on finding a regional border application in the U.S., which, to date has not been a participant in the studies and assessments.

El Paso, in 2007, completed a study done by the National Center for Higher Education Management Systems (NCHEMS), out of Boulder, Colorado, that confirmed that for El Paso to move forward, its emphasis would have to be on growing, organically, higher end jobs and employment opportunities to better retain the key talent that otherwise El Paso exports because of the lack of use and demand presented by the status of the present economy. The opportunity to parlay this study into a practical and strategic direction for its implementation was not something we could resist, particularly since I was involved with key groups in setting the platform for the NCHEMS study to answer the issue as to whether El Paso had a brain drain or ‘supply problem’ or instead had a ‘demand problem’ pertaining to the ability to use college level graduates at a high enough level within the existing economy. The short answer to the assessment was that it was a ‘demand problem’, not a supply problem. This meant that economic demand and had to be developed.

Working with several business leaders in the community through an organization of this leadership called The Paso Del Norte Group (PDNG), I have undertaken, as part of my policy practice, in conjunction with key staff at The Paso Del Norte Group, the opportunity to assist in the engagement with OECD on this regional study. This struck us as the next logical step in this progression of taking findings and knowledge and converting them to practical strategies and implementation.

The region, through its institutions of higher education, is expected to conduct a “self-study” of the regional characteristics and opportunities, as well as obstacles, for the interaction and inter-engagement of regional economic demands and resources and capabilities at the institutions of higher learning. I and the staff of the PDNG are in the process of putting together the self-study assessment and evaluation and submitting it to OECD in late August for their assessment as they come out to the region in late October to make their observations, suggestions and determinations as part of their “experts” role in the OECD self-study assessment.

From a community standpoint, we regard this as a rare opportunity to gain the insights from a global perspective with the type of knowledge and expertise that generally resides in the OECD, for the eventual betterment and strategic planning for our particular region. OECD is intrigued by the dimensions presented by three states and two countries interacting and dealing with one another in this type of setting; a very different context from their previous efforts, not only because it includes the U.S., but also because of the national diversity in such a close, but complex proximity given enforcement and security considerations as they play out on the border, in addition to the commercial qualities of commerce in the region.

The challenge in bringing together University leadership at a Dean or above level to work through the project much like their staffs are generally tasked to do, is also a particularly rewarding and, also, difficult engagement because of the independence and self-reliance found within university professors. Yet, to garner the breadth of the experience it is necessary, and the diversity of thought and knowledge they bring to the table cannot be readily duplicated. This is a value resource that must be harnessed as it is unleashed. A challenge, though, is that this type of engagement between academics and business leaders is not usual and not customary outside of collaborations with a limited objective and mission. This is an integration of resources for a longer term direction.

The shepherding and organizing process, plus the drafting of the narratives in the self-study report, is the characteristic necessary to understand the prospects for a regional strategy, in spite of barriers, geographic as well as political, that must be integrated and overcome to make this effort succeed. Additionally, where the longer term implementation will reside is dependent on the effects and findings of the self-study process and the input from OECD. In this regard, the effort represents another opportunity by the region to plan and direct its way to a sustainable economy and economic base that will supply the fundamentals and keys to ultimate economic growth and sustainability.

The tie in between higher education, higher income, and sustainable economic growth are well documented and known. The resurrection and competitive structure of any economy is driven by these fundamentals; the OECD self-study and report, it is expected, will assist the region in positioning itself for stronger economic factors for wealth creation and sustainability; and do so in a planned and opportunistic manner reflective of the organic growth that is required for any economy to sustain itself and its growth prospects.

The skills required bringing such a diverse and intelligent group together, makes the effort all the more engaging, utilizing the breadth of skills underlying any policy development and implementation process through groups or organizations.

Government Best Practices in Governance Initiative to tackle Public Corruption

The El Paso, Texas region has been affected by a public corruption scandal over the last several years that has its basis in an investigation launched by the U.S. Attorney’s offices for the Western District of Texas to probe the allegations of “pay to play” involving contractors, business services, and investment advisors, plying political contributions to key political leaders at the County Government level and in the independent school district boards in order to gain access to and secure awards for various public works projects and services.

See article on: http://newspapertree.com/politics/3957

Additionally, there is a dimension to the investigation that began with probing the operations of a non-profit entity which was a major supplier of uniforms and other military apparel, including gas related protection gear, under a little known law adopted in the mid 1930s under the Franklin Roosevelt administration. This law was geared to promote the active employment of blind individuals for manufacturing or other types of work/services on a basis that blind individuals would have difficulties in being hired for employment by employers in the mainstream economy. The law is known as the Wagner-O’Day Act, and it was passed in 1938. The law was updated and revised in 1971 through its U.S. Senate sponsor, former Senator Jacob Javits of New York, (the act is known today as the Javits-Wagner-O’Day Act (41 U.S.C. 46-48e), expanding its scope to include severe physical disabilities beyond blindness.

There are several administrative dimensions to this law, but in the case of the El Paso based non-profit, it was alleged that the non-profit was not hiring sufficient disabled individuals to establish a workforce of not less than 70% as meeting the definitional standard for being physically disabled, thereby violating the provisions of the law for the sole source procurement that the statute directs under the objectives of the law to provide meaningful employment and work to such a classification of employee. (The criminality is alleged on the basis of knowingly doing this and misrepresenting to the U.S. government and the governing agency the compliance with the provisions of the statute.)

This condition resulted in a federal investigation to determine whether this failure to abide the legal standard was purposeful and therefore criminal. It related to a procurement process between industry and government, and the FBI began the investigation on this basis and eventually expanded it to cover various procurement practices in the region involving predominantly the County of El Paso and the independent school districts.

The situations involved the awarding of contracts by these governmental entities to private business enterprises, but the selection of the business enterprises, it is alleged, was driven by political contributions that on the face are legal but in their effect and use crossed a line of legality, acting, instead, as “bribes” because there is alleged to be a correlation between the timing of the payment for such contributions and the award of certain contracts. In the words of the allegations, a “quid pro quo” for the contribution in the form of directed awards of contractual services, even under the guise of competitive procurement processes.

The manner of payments, in a surreptitious manner, also suggested something improper as alleged by the prosecution/enforcement authorities pursuing the cases.

Fundamentally, though, the dragnet of corruption allegations placed a damper on the perception and view that the El Paso region was living up to non-corrupt in awarding government contracts and abiding by professional standards of business conduct, and, as such, was poised to advance economically because of its ability to do so. This series of allegations involving at least 19 elected officials, business individuals, and governmental entities, appeared to affirm that the business of government was for sale to the bidder with the greatest influence and, for that reason, the business community determined that this type of conduct and perception had to be eliminated, if for no other reason than economic development and sustainability required it.

From this clarion call, evolved the idea of tackling the issues behind political corruption and doing so with an engaged group of former political, business and community leadership to define an agenda for a public discussion concerning the effects and the resolutions related to these matters and the abuse of trust that they represent.

The initial research confirms that an initiative with this type of scope and effort is unprecedented and its emphasis on the citizen engagement takes us back to our basic governance standards for government process and action. It also revisits the idea that the government is a process that serves the citizenry but at the authorization of the citizenry and no other; it is a characteristic that makes the U.S. system of policy development and governance unique. However, if the citizen does not watch it; engage it; and participate within it, the opportunity for corruption is strong and the concentration of power a reality. The Founders believed in checks and balance to affirm the limits of government power and to dissipate the general predisposition to concentrate political power. The answer to the dilemma of corrupt influences and practices lies within that type of structure that continues to evolve and grow with the society.

The efforts to date have been to define the possible issues that underscore the basis for corruption and the possible resolutions to that state. Additionally, a challenge has been in the recognition that politics and corruption, though accommodated to some degree, need not be. It some ways, it is the consummate practical civics lesson at work; and, in the same way, it invites the cynicism that the ideals of such a civic lesson teach.

The next major step is to engage the public in a series of public meetings to initiate the dialogue about whether this is an issue that people believe is real, and, if real, whether they believe they can solve it, or even should solve it, or simply accept it as part of the process. The choice will determine whether economic balance and growth will actually thrive, or whether the insularity created by power appointments and control will ultimately dictate the future of the region and its real economic prospects. These dialogues are scheduled to begin in September, 2009.

Update: Renewable Energy Project Development in New Mexico

In the last quarter, a new opportunity has presented itself with the prospects of “green” or renewable energy development. With the present emphasis on alternative energy resources in order to diversify the nation’s energy portfolio, along with government targeted subsidies towards such applications under the “Stimulus Package” (ARRA) passed by Congress earlier in the year.

It concerns the prospect of commercial/industrial application of the conversion of dairy cattle manure into “green” (methane) gas for the eventual use of the “green” gas in power plants within the region. The State of New Mexico has announced its intention to become a major “green” energy state under the leadership of its present governor, Bill Richardson. Governor Richardson, most recently a former Energy Secretary in the Clinton Administration has indicated a vision to utilize renewable development opportunities to grow a new type of energy industry, not unlike the way that oil and natural gas were developed in the last century.

New Mexico has the 7th largest dairy operations in the U.S. Dairy and dairy products are a significant contributor to the economy of the State. There is located in southern Dona Ana County, New Mexico, an alignment of 13 dairy operations geographically located next to one another in a single corridor along Interstate 10. These dairy operations have been in existence for over 50 years. They are “open” dairy operations and, as such the odor of the dairy and the visual presentation of the dairy cows has long been a “presence” for the local communities. Though they support the dairy operations for their economic benefit, they also have suggestions for improving the visual and sensual offense that these operations generally impose.

Additionally, because, at the time, the cow manure lies on the ground for extended time, the potential for water contamination in the event of storm-water runoff as well as general release of the carbon dioxide with the natural break-down of the manure while on the ground, raise issues for environmental concerns as well. These were not issues when these families began their dairy operations several generations ago.

In Europe, there has been a more active use of digester plants for the purpose of dealing with the cow’s manure. The digester plant takes the manure, considered to be a form of bio-mass and, through a process called “anaerobic digestion” breaks the manure into its two chemical components, methane gas and carbon dioxide. The methane gas has the same properties as natural gas and as such can be used in the same manner as mined and captured natural gas.

In the U.S. the application of digester plants has been limited and generally has focused on using the methane gas to produce electricity by running a micro turbine on site that will address the power and other energy needs of the dairy operation.

There has not been a wide scale commercial application of a digester plant, unlike in Germany and in Spain where such uses, applied by a company called Entec, have been constructed.

Now, in the U.S. given the change in general energy policy to emphasize and promote the development of “green” or renewable resources, and, in the case of New Mexico, a directive to the local utilities that they diversify their energy resource base to include at least 10-15% renewable type energy within the next ten years, the opportunity for a wide scale application of methane gas production from cow manure is manifest. The other advantage that this type of resource has against the more traditional and acknowledged forms of renewable resources, i.e. wind and solar energy, is that this gas is available 24/7, without condition of a natural resource production, as in the case of wind and solar power.

This type of energy production would fit into the category of “bio-gas” and would produce this methane without the need for any burning, since the anaerobic process is a natural breakdown of the manure into its chemically based gaseous components.

The concentration of 50,000 dairy cows within a 5 mile radius in the 13 dairy operations in this corridor, and the presence of 1.5 million tons of cow manure produced annually from these dairy cows, aligns the material to be able to convert the digester plant into a commercial operation, capable of producing enough methane gas to generate 12 MW of electricity in its application.

In addition to the methane gas, the carbon dioxide has uses for algae farms that are being cultivated in the region to produce a bio-based fuel of sufficient quality and capability to power combustion engines that presently run on fossil based gasoline. The algae has the ability to also produce a high grade jet fuel for commercial and defense level applications as well. This is the type of synergy, therefore, that can produce a true bio-fuel based energy industry on a vertical basis. With the emphasis on government policy for diversity in energy resources and the supporting price structures from government subsidies to allow this new type of resource to compete with the lower priced fossil based fuels, the ability to establish a “green” energy resource base is very real.

The digester plant that is being contemplated will require 100 individuals, or new jobs, to run the operation once the full plant is built and completed. The total cost of the operation will be around $74 million. It will be built in 4 segments referred to as “quads” and will consist of the components for the Digester Plant. It will be a fully self-contained plant with all operating systems “under cover” and, because of the process of anaerobic conversion, the elimination of the Hydrogen sulfide (the “sulfur smell” that is associated with dairy operations) will be practically eliminated.


Another key product of the process is a product referred to as “liquid fertilizer” which is the cow manure, digested, and mixed in the water. This product has soil applications for this region that will enrich and extend the life of the soil for other agricultural applications. Further it can be transported to other users, so there is a commercial revenue stream for this product. The algae farm operations, likewise, will make use of this product. The Digester Plant structure calls for a water treatment facility to take the excess water, not otherwise used in the liquid fertilizer production, and convert the “waste” water into irrigation quality water capable of being used by the agricultural demands on the dairy farms or transported to nearby municipal water treatment plants for applications in their own waste water processes. Again, a revenue stream for this type of product is set.

Finally, the dry manure that is part of the dairy operation will be collected and placed in a compost processing pile that will result in a compost quality product similar to peat moss that will present a “soil enhancement” that will enrich sandy and clay like soils in the region to sustain the agricultural production of the soil.

This is a very interesting and intense project calling into the process policy, political, community, and investor interests with a collective goal of producing a clean, renewable energy process with several product applications that will address the demands in the region and elsewhere, and resolve an environmental issue associated with the operation of dairy farms, that will address the environmental matters responsibly and produce renewable product that is both sought and required. Aspects of energy industry knowledge, utility experience, and general business planning and execution are required to make this start up opportunity into a key building block of a renewable energy industry operation.

Monday, June 22, 2009

New Mexico Business Weekly Publishes Story on Manure to Methane Project

In relation to my prevous post, Kevin Robinson-Avila --writer for the New Mexico Business Weekly, wrote an article in the Friday, June 5, 2009 issue entitled:

Passing biogas: R-Qubed project converts cow manure to methane

Avila writes about the $72 million plan by R-Qubed Energy Inc. of El Paso (I am the President) to build one of New Mexico’s first biogas plants, near the towns of Vado and Berino. The plant will convert cow manure from local dairies into methane gas for use at Public Service Co. of New Mexico’s natural gas plants.

The plant also will make fertilizer and compost from manure, and recycle effluent water for re-use on farms. The plant will help dairy operations deal with environmental issues caused by manure piling up on the ground. Manure releases methane, a greenhouse gas, and it endangers water resources through storm runoff so by recycling the manure, the order and fly populations will reduce significantly.



Read more at: http://albuquerque.bizjournals.com/albuquerque/stories/2009/06/08/story2.html

Sunday, June 21, 2009

It takes a village to clean up corruption

On June 17, 2009, David Chowder--writer for The News Paper Tree - El Paso's Online Newspaper, wrote and posted a story about my involvement in the City of El Paso's campaign by federal authorities against public and private corruption. In the article, Chowder asks the question: How will the community address the fact that its public institutions and a segment of its private sector have been compromised by a deeply imbedded system of bribery, conspiracies, tainted bidding and contracts and dirty alliances that the federal corruption investigation may not cure?

Things in the El Paso community continue to happen that cause people to wonder why it’s not more prosperous and more capable. So, it kind of begs that question because we can be doing better. We should be doing better.

Read David Chowder's story at: Getting honest: It takes a village to clean up corruption. It's an interesting prelude to what can be done on a much grander scale.