Economic Alliance Houston Port Region - Newsletter - 2015 Q4

FOURTH QUARTER

2015

In This Issue: Economic Alliance Industry Brief................... 10 The Economic Alliance at 30: The Expansion Years.................................... 14 Re-branding: A New Era.................................. 18 Task Force Updates......................................... 22

President’s Letter • Members in Motion • San Jac Bond Approval

www.allianceportregion.com

Great Performances are coming to Lee College

February 27, 2016 7:30 pm

Hillbenders Tommy/Opry January 30, 2016

GCIC Choral Festival April 1, 2016

Celtic Nights April 16, 2016

Addams Family Musical March 3-6, 2016

Jazz@Lee College April 8, 2016

Baytown Concert Band April 22, 2016

Baytown Symphony Orchestra March 12, 2016

Student Art Exhibit & Reception April 12, 2016

Choirs of Lee College April 23, 25 2016

Tickets: 281.425.6255 www.lee.edu/pac aa/eeo

visit

BAYT TEXAS WN

Visual and Performing Arts

ECONOMIC ALLIANCE FOURTH QUARTER | 2015

Special Features 06 San Jacinto College

Bond Approval Maritime Technology and Training Center Now Open

In This Issue

10 Economic Alliance

Industry Brief Re-cap and A Look Ahead

PRESIDENT’S LETTER ...................... 05 CALENDAR OF EVENTS .................... 17

18 Re-branding: A New Era Introducing the Economic Alliance’s New Look

22 Task Force Updates Updates on Economic Alliance Task Force Committees

ECONOMIC ALLIANCE IN MOTION ......................................... 25 MEMBERS IN MOTION ...................... 28 MEMBER LISTING ............................. 30

14 The Economic Alliance at 30: The Expansion Years

Since its formation in 1985, the Economic Alliance Houston Port Region has become an integral player in the economic development of the entire Greater Houston area. Its influence can be felt as far away as Austin and Washington, D.C.

Credit: Port of Houston Authority

ECONOMIC ALLIANCE | FOURTH QUARTER 2015

3

About the Economic Alliance The Economic Alliance Houston Port Region, a non-profit organization created in 1985, provides professional economic development services on behalf of 16 communities surrounding the 25-mile Houston Ship Channel - home to one of the world’s most influential energy corridor and trade ports. Since 2008, the Economic Alliance has supported over 40 successful projects that has facilitated business activities creating over 4,400 new jobs and over $5.5 billion of capital investment to the Houston Port Region.

We are proud to count among our members the following Cities, Communities, Chambers of Commerce, and other government entities: Harris County Port of Houston Authority City of Baytown City of Deer Park City of Galena Park City of Houston City of Jacinto City City of La Porte City of Morgan’s Point City of Pasadena

City of Pearland City of Seabrook City of Shoreacres City of South Houston Community of Channelview Community of East End Community of North Shore Community of Sheldon Community of South Belt-Ellington Baytown Chamber of Commerce

Deer Park Chamber of Commerce Greater Houston Women’s Chamber of Commerce Highlands-Lynchburg Chamber of Commerce Houston East End Chamber of Commerce La Porte-Bayshore Chamber of Commerce North Channel Area Chamber of Commerce Pasadena Chamber of Commerce Pearland Area Chamber of Commerce South Belt-Ellington Chamber of Commerce South Houston Chamber of Commerce

pl President’s Letter

a look

Ahead

The close of 2015 and the beginning of 2016 bring with them the promise of growth and prevalence of change both in our industry and in our organization. This issue of the Economic Alliance Newsletter is dedicated to “A Look Ahead.”

Throughout the issue, you’ll find feature articles discussing the important work we are doing to ensure that we are prepared for continued growth as well as the context for how we got to this point and why some of the changes we are enacting as an organization are happening now. The Economic Alliance has been around for thirty years but never before have we seen a time like the present.

203 Ivy Avenue, Suite 200 Deer Park, TX 77536 281-476-9176 www.allianceportregion.com ECONOMIC ALLIANCE EXECUTIVE BOARD

Chairman, Karen Gregory, CenterPoint Energy Immediate Past Chairman, Dr. Brenda Hellyer, San Jacinto College Treasurer, Lawrence Waldron, LBC Tank Terminals Secretary, Jim Griffin, Mitsubishi Chemical Holdings Vice Chair, Steve Cote, Brady Chapman, Holland & Associates Vice Chair, Randy Boeding, Setech Consulting Solutions Vice Chair, Barry Klein, Shell Deer Park Advisory, Mayor Tom Reid, City of Pearland

EDITORIAL ADVISORY BOARD

Randy Boeding, Setech Consulting Solutions Melissa Botkin, Galena Park ISD and City of Seabrook Teri Crawford, San Jacinto College Patti Jett, City of Baytown Steve Lestarjette Connie Tilton, ExxonMobil

The low price of natural gas as a result of our shale plays coupled with investment by the Port of Houston in its infrastructure has created a positive market environment that is conducive to capital investment in the Houston Ship Channel Region. Capital expansion has resulted in an urgent need for investments on a broader scale in our region’s workforce and infrastructure.

The Economic Alliance is making investments internally as well.

ECONOMIC ALLIANCE STAFF

This year will see the unveiling of our new logo and brand as we raise the public profile of our organization to match the members we serve. This year will see the rebranding of our Petrochemical & Maritime Outlook Conference to become the Gulf Coast Outlook Conference. You will also see major accomplishments in the areas of Workforce Development and Transportation this year as we forge ahead in plans to overcome the primary hurdles to economic expansionlabor and infrastructure availability.

LAYOUT AND DESIGN

While there are many exciting changes anticipated here at the Economic Alliance in 2016, one thing that will never change is our commitment to our mission to grow this regional economy. We enter 2016 with steadfast dedication to make this region the place to do business, live and prosper.

Chad Burke, President/CEO Michelle Hundley, Vice President of Public Affairs Traci Koenig, Director of Economic Development Dana Ramirez, Event & Member Services Coordinator Denise Smesny, Dream It. Do It. Southeast Texas, Program Manager Bridget Yeary, Administrative & Financial Manager Lorrent Smith

EDITORIAL SUBMISSIONS traci@allianceportregion.com SPONSORSHIP SUBMISSIONS traci@allianceportregion.com To read an issue online, go to the bottom of our Homepage: www.allianceportregion.com

Yours,

Chad Burke President/CEO, Economic Alliance

ECONOMIC ALLIANCE | FOURTH QUARTER 2015

5

a look

Ahead

forecasting 2016 & beyond

Voters Approve $425 Million Bond Measure San Jacinto College bond passes by nearly 68 percent

T

hanks to voters, San Jacinto College will begin work in the next couple of years to construct new facilities and renovate existing buildings to provide technologically advanced space for student learning and workforce training for the Texas Gulf Coast.

Nearly 68 percent of voters in the San Jacinto College taxing district approved a $425 million capital improvement bond program on November 3, with a vote of 17,247 for the referendum, and 8,300 against. The voter turnout for this bond election totaled more than five times the number of total votes cast in the 2008 bond election.

of Trustees. “These bonds will allow us to move forward in providing state-ofthe-art facilities that are the right space for teaching and learning, while updating facilities that are more than 30 years old, and improving our security systems and infrastructure throughout the College. As the higher education leader in the Gulf Coast region, it is imperative that we continue to meet the workforce demand in East Harris County, and help our students complete their certificates and associate degrees.”

Proposed projects as part of this bond referendum include state-of-the-art facilities to train students and workers in

The early college high school program greatly reduces college expenses, and it would otherwise be very hard for me to go to college without it.

-Alejandro Aguilar, Student, Sheldon Early College High School “We are extremely grateful to the voters and taxpayers in our district for approving this bond measure,” said Mr. Dan Mims, Chairman of the San Jacinto College Board

6 6

ECONOMIC ALLIANCE | FOURTH QUARTER 2015

the petrochemical, energy, engineering, computers, and technology sectors; a new welcome center providing a “one-stop shop” for student support services such as

admissions, financial aid, and counseling; new culinary and cosmetology facilities; and additional classroom facilities across the district. Nine buildings will be renovated – most of which are more than 30 years old – to provide updated space for early college high school and dual credit programs, as well as more relevant, efficient, and technically updated instructional space for employees and students. Additionally, the funding will provide for security, access, and safety upgrades throughout all facilities and significant infrastructure upgrades and replacements for systems at the end of their useful life.

Focusing on the top priority of student success Additional facilities for dual credit and early college high school will help more students, like Alejandro Aguilar, complete their associate degree before earning a high school diploma. Aguilar will graduate from the Sheldon Early College High School next Spring, after earning an associate degree from San Jacinto College.

“The early college high school program greatly reduces college expenses, and it would otherwise be very hard for me to go to college without it,” he said. Aguilar plans to transfer to the University of Houston as an 18-year old junior. Such an incentive of transferring two years ahead of the average high school graduate is what attracts many to the early college high school model.

Aguilar is weighing his career options and is leaning toward either physical therapy or a career that deals with developing wind, solar, or other renewable energy sources.

This Fall, nearly 10 percent of students (approximately 3,100 College-wide) attending San Jacinto College are in dual credit or attend an early college high school.

“We really appreciate the support of our community,” added Dr. Brenda Hellyer, San Jacinto College Chancellor.

“The community support of this bond referendum will allow us to continue to be the leader in the region, providing critical training for our industry partners, while preparing students for their next step, whether that is transferring to a fouryear college or university, or entering the workforce. I am thankful for the support, which shows that voters in our district agree that San Jacinto College plays a vital role in the economic vitality in East Harris County.”

Most people realize that university degrees lead to higher earnings, a fact substantiated by a 2011 Georgetown University and Lumina Foundation report.

However, according to a more recent report by CareerCast, there are also well-paying, high-demand jobs available that require only a one-year or two-year college credential. San Jacinto College provides training for 11 of the 15 career

Whether you're preparing for a career, picking up a new hobby, or need classes to advance in your current position, the Continuing and Professional Development Division at San Jacinto College offers you a variety of noncredit courses for workforce training and lifelong learning.

Find out more at www.sanjac.edu/cpd, and enhance your skills today!

registration.cpd@sjcd.edu 281-542-2020 www.sanjac.edu/cpd Connect with us on An equal opportunity institution

fields listed in the CareerCast report (www.careercast.com/slide/best-jobswithout-4-year-degree-2015-computerservice-technician), which was based on nationwide Bureau of Labor Statistics data.

The success story of San Jacinto College graduate Jim Hodges exemplifies how a college education leads to higher earnings. Hodges earned an associate degree in construction management from San Jacinto College in 2005 and now holds the position of vice president at JV Driver Industrial Services, where he manages

a wide range industrial construction projects. He says his college training was the key to his rapid career advancement.

“I look at education as an accelerator and a steppingstone to greater success and fulfillment,” Hodges commented. “My time at San Jacinto College enabled me to gain technical knowledge at a much faster pace.

I was able to quickly become proficient in multiple areas of the construction trade, things like scheduling, blueprint reading, and handling finances. The College helped me become more professional and better

ECONOMIC ALLIANCE | FOURTH QUARTER 2015

7

Voters Approve $425 Million Bond Measure

a look

Ahead

forecasting 2016 & beyond

San Jacinto College bond passes by nearly 68 percent

rounded. Not only did I gain valuable technical knowledge of the industry, I also learned valuable leadership skills, as well as time management, social, and communication skills.”

Minimal tax increase The impact from this bond on taxpayers in the San Jacinto College District is expected to be minimal. The maximum increase in taxes for debt service when all the bonds are issued will not exceed 3 cents per $100 of valuation. Residents who own a home with an appraised value of $100,000 will see their taxes increase a maximum of approximately $28.50 per year, or $2.38 per month. Most senior citizens of age 65 or older will see no increase in their taxes; however, those senior citizens age 65 and older, and who own a house valued for taxes above $132,500, will see a nominal increase.

“We are committed to keeping taxes low for our residents,” commented Dr. Hellyer.

“Our goal is to help our students succeed by completing what they start. We want them to gain the skills they need to get the job they want or transfer to the four-year college or university of their choice. We know that keeping taxes low and offering an affordable tuition rate are keys to the success of our students and ultimately the success our community.”

As the region’s leader in higher education, San Jacinto College is committed to providing the highest quality of education, in facilities that are top-notch, while keeping taxes and tuition low. The College

8

ECONOMIC ALLIANCE | FOURTH QUARTER 2015

The Maritime Technology and Training understands that a well-trained workforce Center sits 14 feet above ground, and for the region’s employers, and helping includes 15 classrooms; engineering students seamlessly transition to a foursimulators to train maritime engineers for year college or university, is a high priority. hydraulic, electric, pump control, motor In order to help fill the worker pipeline heatingnational and air conditioning, and more quickly, a new Center for Industrial If thesecontrol, pristine refrigeration; and a multipurpose space Technology is under construction at treasures can’t meet the new for industry conferences and corporate the North Campus. This facility is not standard, how can Additional any community partner meetings. highlights of included in the 2015 bond referendum that be expected to comply? the new facility include three ships bridge was just approved, but instead is being simulators, donated by the Houston Pilots funded through alternate sources. The in 2013. These room-sized replicas of ship 113,000 square-foot facility will house the control bridges are a part of a 3,748 squareCollege’s welding, pipefitting fabrication, foot simulation suite, complete with diesel technology, international business instructor stations, debrief classrooms, and logistics, electrical technology, and and development stations. heating, ventilation, air conditioning and

…We know that keeping taxes low and offering an affordable tuition rate are keys to the success of our students and ultimately the success our community.

-Dr. Brenda Hellyer, San Jacinto College Chancellor refrigeration (HVACR) programs. It will provide the necessary space, as well as upto-date infrastructure, so that San Jacinto College can keep pace as workforce training needs continue to escalate.

In addition, the College’s newest gem and now the fourth campus, the Maritime Technology and Training Center, opened for classes in January. Construction has been ongoing at the facility, located at 3700 Old Highway 146 in La Porte, since Fall 2014. The facility was funded through the 2008 bond, which saw a 71 percent approval rating from voters in the San Jacinto College District.

San Jacinto College currently offers 31 U.S. Coast Guard-approved maritime courses year round, ranging from entry-level to mid-level skills. In the first four-and-ahalf years of the maritime transportation program at San Jacinto College, more than 3,500 certificates for mariners have been awarded. Though many courses are for recertification, some are for advancement in the profession. This facility along the Houston Ship Channel will provide the local and regional industry with a training facility close to home.

“People fly from all over the country to attend our courses,” said Brian Elliott, the

semester. The course has a 64.7 percent success rate, compared with 46 percent in stand-alone college algebra. This course, developed by San Jacinto College faculty, is co-taught, meets four days a week, and is supported by a collaborative learning session. Students benefit by having two faculty members in the classroom at all times, additional tutoring, and a supportive learning community, therefore expediting their pathway to completion.

About San Jacinto College

San Jacinto College Maritime Technology and Tranining Center

bridge simulation operator in the San Jacinto College maritime program. “It’s an advantage for local companies not to have the expense of sending employees away for training.”

More students earning college and industrydriven credentials Since 2007, San Jacinto College has increased by almost 109 percent the number of degrees and certificates awarded to graduates. In each of the last three years, the College has awarded more than 5,000 certificates and associate degrees, including 5,584 in the last academic year. San Jacinto College ranks 17th in the nation – out of more than 1,100 community colleges – in awarding the associate degree, and is second in associate degrees for process technology training.

Recently, San Jacinto College was one of 30 community colleges nationwide selected to participate in the American Association of Community Colleges Pathways Project.

This initiative will help to “scale up” student success initiatives already in place at the College, so that more students can complete their certificates or associate degrees to begin work immediately, or transfer to a fouryear college or university.

“At the end of the day, we want to build on the work we have in place and have already accomplished by enhancing the pathways work, creating stronger transfer and articulated pathways to regional universities, and innovative design of courses and support services that identify and meet the needs of our students,” said Dr. Laurel Williamson, San Jacinto College Deputy Chancellor and President.

One of the College’s most successful student success initiatives is the Acceleration in Math (AIM) program. AIM combines college preparatory math with college algebra to allow students to complete both in one

Surrounded by monuments of history, industries and maritime enterprises of today, and the space age of tomorrow, San Jacinto College has been serving the citizens of East Harris County, Texas, for more than 50 years.

As an Achieving the Dream Leader College, San Jacinto College is committed to the goals and aspirations of a diverse population of approximately 30,000 credit students. The College offers 186 degrees and certificates, with 46 technical programs and a university transfer division. Students benefit from a support system that maps out a pathway for success, and job training programs that are renowned for meeting the needs of growing industries in the region. San Jacinto College graduates contribute nearly $690 million each year to the Texas workforce.

For more information about San Jacinto College, call 281-998-6150, visit sanjac. edu, or follow the College on Facebook and Twitter. For information about proposed projects in the 2015 San Jacinto College bond, visit sanjac.edu/bond. Contractors who are interested in bidding for upcoming engineering or bond construction should contact the San Jacinto College purchasing department to get their company name on the distribution list when the College is ready to receive bids for specific work. The purchasing department contact is Patsy Laredo at Patsy.Laredo@sjcd.edu.

ECONOMIC ALLIANCE | FOURTH QUARTER 2015

9

a look

Ahead

forecasting 2016 & beyond

Economic Alliance Industry Brief

by Traci Koenig, Director of Economic Development The “Economic Alliance Industry Brief” column contains the latest research and market trends and is written with the intention of being a piece to be referenced throughout the quarter as you conduct your business. You may also subscribe to receive a curated digital digest of some of the articles used in the writing of this column at the following address: http://paper.li/e-1445354829.

2015 Re-Cap The Economic Alliance has been hard at work to bring capital investment to the Houston Port Region.

While the market slowed slightly from the huge boom seen between 2011 and 2014, the 2015 numbers are robust compared to every other region in the country. Texas is the largest chemistry-producing state in the country and the second-largest manufacturing state in the country.1 In 2015, the Economic Alliance: §§ Attracted $427 million in capital investment. §§ Supported: •• 4 major projects; •• creation of over 60 direct jobs; •• creation of approximately 420 indirect jobs; and •• creation of approximately 600 temporary construction jobs. §§ Hosted an unprecedented attendance

10 ECONOMIC ALLIANCE | FOURTH QUARTER 2015

of over 700 guests at the Gulf Coast Petrochemical & Maritime Outlook Conference (now called the Gulf Coast Outlook Conference), which suggests continuing growth in these industries.

all but ensured that the price of natural gas will remain low for the foreseeable future.

This is both positive and negative, given the fact that the U.S. is entering the LNG export market.

Market Drivers All around us, we hear talk of the rapidly diminishing rig counts and resultant job cuts in the upstream sector of oil and gas. We hear of mergers and acquisitions. We hear of upstream capital projects being delayed or canceled altogether.

Domestically, natural gas liquids (NGLs) are the primary feedstock for many of the plastics and resin products our refineries along the Houston Ship Channel produce.

Those plastics are then exported to countries like China to produce consumer goods. According to the Port of Houston trade statistic data, Plastics are second only to Petroleum & Petroleum Products in the amount of tonnage exported.2 They are second only to Machinery in leading export commodities by dollar value.

The good news? We aren’t upstream. We are downstream. Much of the membership base of the Economic Alliance, while affected indirectly by what happens in the upstream sector, is more readily affected by the price of its natural gas feedstock than by the price of crude oil.

The domestic shale plays, buoyed by innovations in fracking technology, have

In 2014, metro Houston had 28.3 percent of the nation’s capacity for polyethylene resins, 31.2 percent of its capacity for polypropylene resins and 34.4 percent of its capacity for polyvinyl chloride resins.3

Domestic demand for imported finished commercial goods is increasing rapidly in our region due to population expansion in the Houston MSA. This demand for imported finished goods means our refineries are producing plastics to be exported (to places like China) and returned to us in the form of imports. It’s a self-supporting ecosystem in many ways. However, our resin/plasticsproducing refineries may feel the contraction of Chinese demand for their product in the short-term due to China’s internal economic issues. It will be important for us to foster other export relationships to maintain our growth rate (Exhibit 1).4 Another burgeoning factor that may play a role in our region’s growth is LNG exports. The United States has the supplies to become the world’s third-largest LNG exporter after Australia and Qatar.5 We simply must identify a consistent market for our supply.

One would think Japan and Europe would be natural markets for our supply now that China’s demand is diminishing, but we are competing head to head with Russian supply to both markets, and theirs is cheaper.

At the time of this writing, the price of importing Russian gas to Europe hovered at $6 per mmBtu and the price of importing US regasified LNG to Europe hovered at $7.50 per mmBtu. There’s a differential there, but perhaps one not so great that it outweighs

(FERC)- approved, six of which are under construction (Exhibit 2). Of the six terminals under construction, two of them are in Texas.

The U.S. has an additional 22 proposed projects in some phase of the FERCapproval process, 7 of which are in Texas (Exhibit 3). The construction surrounding these new developments will be a boon to the local economies they are located in regardless of how the U.S. fares on the global LNG export market, but we may see some mid-term project delays while the price of LNG stabilizes at a rate that can support additional capital expansion in terminal facilities. As of 2012, unconventional oil and natural gas development supported 2.1 million jobs in the U.S. and is projected to support 3.9 million jobs by 2025. LNG exports theoretically could contribute as much as $10 billion to $31 billion per state to the economics of natural gas-producing states like Texas.6 Growth Implications Given all of the above, we are experiencing organic growth in the Houston Ship Channel region in a way not seen in any other region of the Houston MSA, the state, or the country. It is important to make the distinction between organic growth, which happens as a result of the right climate for it; and externally-driven growth, which happens as a result of some external variable like crude oil prices that

“Domestic demand for imported finished commercial goods is increasing rapidly in our region due to population expansion in the Houston MSA.” the potential benefit to Europe of having a more geopolitically stable source of LNG supply. We can hope.

As it stands right now, the U.S. has seven LNG Export terminal projects that are Federal Energy Regulatory Commission

vary given the current geopolitical climate.

The organic growth being experienced in the Houston Ship Channel Region is sustainable in the near- term because it is primarily based on low LNG feedstock prices (likely to last until the global market settles on a stable, higher price) and organic regional

population growth. The Greater Houston Partnership estimates that the Houston MSA will add 3.4 million additional residents between 2015 and 2040. That’s over 2,600 people per week on a straight average.7 Growth itself is neutral; our reaction to it will determine its value to our region. The Houston Ship Channel region is experiencing growth to be sure. Our near-term growth is somewhat assured. Our long-term growth is a given. How exponential our mid-term growth is will be determined by geopolitics that we can affect only marginally but have an interest in adapting to quickly.

Flexibility in our cap ex plans and focused infrastructure planning will be the keys to coming out on top.

1 American Chemistry Council. “Chemistry in My State: Texas,” (http://www.impactchemistry. com/mystate.aspx?state=tx).

2 Port of Houston Authority. “Port of Houston Foreign Trade Containerized Cargo Statistics,” (http://www.portofhouston.com/businessdevelopment/trade-development-andmarketing/trade-statistics/).

Greater Houston Partnership. “Chemicals,” (http://www.houston.org/newgen/16_ Industry_NEC/16H%20W001%20Chemical%20 Industry%20Overview.pdf).

3

Magnier, Mark. “China Growth in Focus as Imports and Exports Fall,” The Wall Street Journal. October 15, 2015 (http://www.wsj. com/articles/chinas-exports-imports-fallagain-1444704325)

4

5 Palti-Guzman, Leslie. “Gas Under Pressure: The United States is Ready to Export LNG, but Does the World Want It?” Foreign Affairs Magazine. January 8, 2016 (https:// www.foreignaffairs.com/articles/unitedstates/2016-01-08/gas-under-pressure).

6 American Petroleum Institute. “Liquefied Natural Gas Exports: America’s Opportunity & Advantage.” May 2015.

7 Greater Houston Partnership. “Population and Employment Forecast,” (http://www.houston. org/newgen/15_Economy/15C%20W001%20 Population%20and%20Employment%20 Forecast.pdf)

ECONOMIC ALLIANCE | FOURTH QUARTER 2015

11

Economic Alliance Industry Brief

a look

Ahead

forecasting 2016 & beyond

ENERGY SOURCE

by Traci Koenig, Director of Economic Development

How petrochemicals are used tod NUCLEAR

COAL

CRUDE OIL

BIOFUELS & RENEWABLES

REFINING & PROCESSING

DISTILLATION

Methane

Propane

CATALYTIC / HYDROCRACKING

Butane

Jet / Kerosene

THERMAL CRACKING / COKING

Diesel

Gasoil / VGO

CATALYTIC REFORMING

Ethane

Propane/LPG

STEAM CRACKING

CRACKER PRODUCTS

GASIFICATION

OLEFINS

PDH

Coke

Sulp

FCC

STEAM CRACKING

STEAM CRACKING

STEAM CRACKING

Ethylene

Propylene

Ethylene oxide

Ethanolamines

Methyl methacrylate (MMA)

Asphalt

Wax

Lubricants

Butane

Polyethylenes (LDPE, HDPE, LLDPE)

Methanol

Fuel oil

Naphtha

Refinery Gases Methane

INTERMEDIATES / CHEMICALS / POLYMERS

NGLs/Condensate

REFORMING / ISOMERIZATION

Gasoline

N

MEA

TEA

(Mono) ethylene glycol

Acrylonitrile

Ethylene glycol (di-, tri-)

Ethylene glycol ethers

Ethylene glycol ethers acetates

Polyesters

DEA

Polymethyl methacrylate (PMMA)

ABS plastics

C4 stream

Propylene oxide

Polypropylene

SAN plastics

NBR Synthetic rubber

(Mono) Propylene glycol

Acrylic fibres

Propylene glycol (di-, tri-, ...)

Butadiene

Propylene glycol ethers

Polyols

Propylene glycol ether acetates

Polyester resins

BR

SBR

Polyurethane

Solvents

Solvents

Isobutylene

Acetic acid Polyisobutylene

Formaldehyde

Polyurethane

Ethylbenzene

Styrene

Resins

Ethylene dichloride

Ethyl alcohol

ETBE

Vinyl acetate monomer

Vinyl chloride monomer

SBL

Cumene

Acrylic acid

Butyraldehyde

2-Ethylhexanol

Phenol

Polyacrylate

Acetone

Superabsorbents

n-Butanol

Isobutanol

Butyl rubbers

Isopropanol

Acrylic acid

Acetone

MTBE (Fuel ether)

Isopropyl acetate

n-Butenes

PVC Olefins

Plasticisers

Isobutyl acetate

n-Butylacetate

Acrylic esters Solvents

Solvents MTBE (Fuel ether)

APPLICATIONS

Fuel

Food packaging

Window profiles

Thermal insulation

Pipes

Wood products

Detergents

Glazing

Paints and coatings

Pharmaceuticals

Agrochemicals

Antifreeze

Adhesives

Automotive

Textiles

Disposable nappies (diapers)

Electric & electronic appliances

Engine parts

Construction

Computers

Cosmetics

Marine industry

Film and sheets

Š Copyright 2015 ICIS. ICIS is a division of Reed Business Information - www.reedbusiness.com, part of RELX Group - www.relxgroup.com. ICIS accepts no liability for commercial decisions based on the content of this flowchart.

Exhibit 1: ICIS Petrochemical Flowchart

12 ECONOMIC ALLIANCE | FOURTH QUARTER 2015

Paints and coatings

Inks

Automotive

Liquid packaging

Tyres

Paper

“The organic growth being experienced in the Houston Ship Channel Region is sustainable in the near-term because it is primarily based on low LNG feedstock prices (likely to last until the global market settles on a stable, higher price) and organic regional population growth.”

day

North American LNG Import/Export Terminals Approved

Import Terminals

NATURAL GAS

U.S.

APPROVED - UNDER CONSTRUCTION - FERC

1. Corpus Christi, TX: 0.4 Bcfd (Cheniere – Corpus Christi LNG) (CP12-507)

13

www.icis.com

PROCESSING

APPROVED – NOT UNDER CONSTRUCTION - FERC 2. Salinas, PR: 0.6 Bcfd (Aguirre Offshore GasPort, LLC) (CP13-193)

14

12

APPROVED - NOT UNDER CONSTRUCTION - MARAD/Coast Guard 3. Gulf of Mexico: 1.0 Bcfd (Main Pass McMoRan Exp.) 4. Gulf of Mexico: 1.4 Bcfd (TORP Technology-Bienville LNG)

Export Terminals

8

U.S.

phur

APPROVED - UNDER CONSTRUCTION - FERC

11

5. Sabine, LA: 2.76 Bcfd (Cheniere/Sabine Pass LNG) (CP11-72 & CP14-12) 6. Hackberry, LA: 1.7 Bcfd (Sempra–Cameron LNG) (CP13-25) 7. Freeport, TX: 1.8 Bcfd (Freeport LNG Dev/Freeport LNG Expansion/FLNG Liquefaction) (CP12-509) 8. Cove Point, MD: 0.82 Bcfd (Dominion–Cove Point LNG) (CP13-113) 9. Corpus Christi, TX: 2.14 Bcfd (Cheniere – Corpus Christi LNG) (CP12-507) 10. Sabine Pass, LA: 1.40 Bcfd (Sabine Pass Liquefaction) (CP13-552)

5 10 7 6 1,9 3 4

Methane

APPROVED – NOT UNDER CONSTRUCTION - FERC

FERC MARAD/USCG

Canada

APPROVED – NOT UNDER CONSTRUCTION

12. Port Hawkesbury, NS: 0.5 Bcfd (Bear Head LNG) 13. Kitimat, BC: 3.23 Bcfd (LNG Canada) 14. Squamish, BC: 0.29 Bcfd (Woodfibre LNG Ltd)

As of January 6, 2016

Trains 5 & 6 with Train 5 under construction

Pygas/ Reformate

Benzene

11. Lake Charles, LA: 2.2 Bcfd (Southern Union – Lake Charles LNG) (CP14-120)

2

US Jurisdiction

Exhibit 2: FERC- Approved Export Terminals. Source: http://www.ferc.gov/industries/oil.asp

Toluene

Mixed xylenes

AROMATICS

North American LNG Export Terminals Proposed

Ethylbenzene Toluene di-isocyanate

Styrene SBR Styrene butadiene rubber Polystyrene plastics

Unsaturated polyester

Solvents

Orthoxylene

Phthalic anhydride

Polyurethane

ABS/SAN

Plasticisers

Paraxylene

DMT

Metaxylene

1. Coos Bay, OR: 0.9 Bcfd (Jordan Cove Energy Project) (CP13-483) 2. Astoria, OR: 1.25 Bcfd (Oregon LNG) (CP09-6) 3. Elba Island, GA: 0.35 Bcfd (Southern LNG Company) (CP14-103) 4. Lake Charles, LA: 1.07 Bcfd (Magnolia LNG) (CP14-347) 5. Sabine Pass, TX: 2.1 Bcfd (ExxonMobil – Golden Pass) (CP14-517) 6. Pascagoula, MS: 1.5 Bcfd (Gulf LNG Liquefaction) (CP15-521) 7. Freeport, TX: 0.34 Bcfd (Freeport LNG Dev) (CP15-518) 8. Cameron Parish, LA: 1.41 Bcfd (Venture Global Calcasieu Pass) (CP15-550) 9. Hackberry, LA: 1.41 Bcfd (Sempra - Cameron LNG) (CP15-560)

PTA

21

Polyesters

Flexible PVC Aniline

MDI Cumene

Maleic anhydride

PBT

BDO

UPR

Caprolactam

Adipic acid

Polycarbonate

Nylons

2

Epoxy resin

12

1

PMMA

Bisphenol A

Projects in Pre-filing: 25

MMA

Phenolic resins

Cyclohexane

26 24 Acetone

Phenol

Solvents

Alkylbenzene

18 7 5 22 4 6 19 16 9 8 10 20 11 17 15 23 14 11

Surfactants

Optical media

Sports equipment

Soft furnishings

Sports equipment

PROPOSED TO FERC Pending Applications:

PET bottles

3

13

10. Plaquemines Parish, LA: 1.07 Bcfd (CE FLNG) (PF13-11) 11. Plaquemines Parish, LA: 0.30 Bcfd (Louisiana LNG) (PF14-17) 12. Robbinston, ME: 0.45 Bcfd (Kestrel Energy – Downeast LNG) (PF14-19) 13. Jacksonville, FL: 0.075 Bcf/d (Eagle LNG Partners) (PF15-7) 14. Brownsville, TX: 0.54 Bcfd (Texas LNG Brownsville) (PF15-14) 15. Brownsville, TX: 0.94 Bcfd (Annova LNG Brownsville) (PF15-15) 16. Port Arthur, TX: 1.4 Bcfd (Port Arthur LNG) (PF15-18) 17. Brownsville, TX: 3.6 Bcfd (Rio Grande LNG – NextDecade) (PF15-20) 18. Freeport, TX: 0.72 Bcfd (Freeport LNG Dev) (PF15-25) 19. Corpus Christi, TX: 1.4 Bcfd (Cheniere – Corpus Christi LNG) (PF15-26) 20. Plaquemines Parish, LA: 2.80 Bcfd (Venture Global LNG) (PF15-27) 21. Nikiski, AK: 2.55 Bcfd (ExxonMobil, ConocoPhillips, BP, TransCanada and Alaska Gasline) (PF14-21) 22. Cameron Parish, LA: 1.84 Bcfd (G2 LNG) (PF16-2)

PROPOSED TO U.S.-MARAD/COAST GUARD 23. Gulf of Mexico: 1.8 Bcfd (Delfin LNG)

PROPOSED CANADIAN SITES

Textiles

Electrical & electronics

Food packaging

Furniture

Wire and cables

US Jurisdiction FERC MARAD/USCG

As of January 6, 2016

24. Kitimat, BC: 1.28 Bcfd (Apache Canada Ltd.) 25. Douglas Island, BC: 0.23 Bcfd (BC LNG Export Cooperative) 26. Prince Rupert Island, BC: 2.74 Bcfd (Pacific Northwest LNG)

Exhibit 3: Proposed Export Terminal Projects. Source: http://www.ferc.gov/industries/oil.asp

This is not intended to be a fully comprehensive picture of all possible product flows in the industry. The products shown represent the data in the ICIS Supply and Demand Database at the time of printing, though data is not available for every product at the time of printing.

ECONOMIC ALLIANCE | FOURTH QUARTER 2015

13

a look

Ahead

forecasting 2016 & beyond

The Alliance at 30 Poised to take big strides Editor’s note: Since its formation in 1985, the Economic Alliance Houston Port Region has become an integral player in the economic development of the entire Greater Houston area. Its influence can be felt as far away as Austin and Washington, D.C. The new Chairman of the Economic Alliance Executive Board for 2016, Jim Griffin of Dianal America, and Economic Alliance President Chad Burke sat down recently to discuss what has made the organization a valued asset to the region—and what may be in store for the coming year.

What Key Values Have Helped The Economic Alliance Grow?

Burke: I believe the Alliance is what it has become because it is truly an effective regional organization.

We balance everything against our mission— to grow our economy. Our activities all point toward that goal. What makes us effective is the buy-in of our stakeholders. If we didn’t have quality leaders from industry, business, government, and education who buy in and participate, we wouldn’t be as effective as we are. These members see that if they participate, they can make positive change in our region.

14 ECONOMIC ALLIANCE | FOURTH QUARTER 2015

How Is The Alliance Working With Other Economic Development Organizations In The Region?

Griffin: When I first began rubbing elbows with the Greater Houston Partnership, I wasn’t sure how connected it was with East Harris County. Houston is a big city; Harris County is a big county. I’ve been told that the economic engine of Harris County is larger than 20 states. East Harris County wasn’t always included in the activities of Houston.

Today the Economic Alliance has created a strong relationship with the Partnership.

Burke: I give a lot of credit to our Executive Board.

Two or three years ago, the board said, “Let’s do what we can to partner with the Greater Houston Partnership. Let’s work with them on common issues.” So it was a strategic effort to make the Partnership aware of what was happening on the east side.

Simultaneously, our chemical industry began its huge expansion phase. This sector, located primarily in our area, began thriving while some sectors in Greater Houston were not. The growth in the petrochemical sector helped us gain attention across the region, even across the nation.

Today we work hand-in-hand on several economic development projects, such as policy development and workforce development, with the Greater Houston Partnership.

What Does A Strong Local Economy Mean For The Alliance?

Griffin: World media attention on the local economy has given the Alliance a bigger voice and more credibility. The news media is picking up on the fact that jobs are available and people are moving here from other parts of the country.

“We have the perfect name. We are an “alliance,” a partnership. We include large global companies and smaller local ones. We have grown partnerships at the local, state, and national levels.”

Credit: Port of Houston Authority

The Alliance at 30 Poised to take big strides

I believe we’ve done a better job educating people about the significant role East Harris County plays in our quality of life. Our plants produce items people use from the time they get up in the morning to the time they go to bed at night, plus the fuels we use. We have improved the nation’s understanding that what we do here brings value to everyone.

Burke: I have been amazed at the amount of attention and interest given to what’s going on here. Sometimes it is a group from China that wants to visit. Or it’s a call from Washington, D.C., inviting us to work on a public policy issue. We have been asked to return on the same issue four or five times; we have been asked to bring a stakeholder to represent an issue that is happening here.

We work with many who have interest in our story, including The Wall Street Journal and other national news outlets.

What Challenges Success?

Have

Come

With

Burke: Projects come fast and furious. The onus is on us to make sure we are communicating with our refining and petrochemical companies so they will know we can help with an upcoming project. Often they are moving so fast they jump right into a project and miss an opportunity for us to help them.

The questions we field have changed in the last few years. Originally we were asked about finding a particular site for relocation.

Now, we are asked, “Do you have enough people who can build and maintain and operate our plant? And can we get our permits?” People want to know about our public policy and legal environment their business will have to work within. The 16 ECONOMIC ALLIANCE | FOURTH QUARTER 2015

question is not whether they are coming, but what are the hurdles they might face, and how can the Alliance help.

Griffin: We have the perfect name. We are an “alliance,” a partnership. We include large global companies and smaller local ones.

We have grown partnerships at the local, state, and national levels. The Economic Alliance has brought these groups together with a lot of open communication. At the end of the day, we all have a similar mission—to grow opportunities, jobs, and the economy— and do it in a way that makes Houston a more powerful city. No one can predict the future with complete accuracy; unexpected issues often arise. I am confident we have people who can address issues that come up along the way.

What Major Issues Are Anticipated Over The Next Five Years?

Griffin: I think we have a great future in front of us.

There is a lot of capital being spent in our area, about $30 billion. We are seeing new infrastructure and jobs.

The challenge will be to make the supply chain work. It is very complex in an area of four million people. We have some of the most congested roads in the nation. We have rail congestion, too. We can produce a lot of things, but we need to get raw materials in and out.

And we must stay close to our legislative representatives in Austin to make sure that the rules and regulations affecting our businesses are reasonable.

a look

Ahead

forecasting 2016 & beyond

Burke: Another challenge is workforce, and we have taken some very positive steps to address this need. We have hired a full-time workforce director; we have created Dream It, Do It-Southwest Texas, partnering with a national initiative. We are working with San Jacinto College, Lee College, and Houston Community College to attract new students into technical courses. Our workforce initiatives are going to be fun to watch in 2016.

What Are The Personal Benefits Of Working With The Economic Alliance?

Griffin: I had a mentor once who said, “Jim, you are allowed to be in the neighborhood, so you have a responsibility to be a good neighbor.”

That means more than hiring people and paying taxes; it’s about being engaged with the community.

The Alliance has so much to offer. We have 10 community advisory panels. It’s very interesting to sit down with our neighbors to see what’s going on. So, I want to invest my efforts in the community where I raise my children and go to church.

Burke: We are providing opportunities for families to have a part in the American dream. It’s real easy to get behind that. And we get to work with the best of the best in our community— leaders in business and industry, education and government, wonderful people. They are the ones that give energy to our initiatives.

It is great to work with people who are interested in making our communities better.

CALENDAR of EVENTS

Business Growth Task Force Wednesday, February 3rd 9:00am – 10:00am

Business Growth Task Force Wednesday, March 2nd 9:00am – 10:00am

Business Growth Task Force Wednesday, April 6th 9:00am – 10:00am

Quality of Life Task Force Wednesday, February 10th 9:00am – 10:00am

Quality of Life Task Force Wednesday, March 9th 9:00am – 10:00am

New Member Orientation Thursday, April 7th 3:00pm – 4:00pm

Gulf Coast Outlook Conference Committee Meeting Tuesday, February 16th 3:00pm – 4:00pm

Gulf Coast Outlook Conference (Formerly PMOC) Committee Meeting Tuesday, March 17th 3:00pm – 4:00pm

Public Policy Trip to Washington D.C. April 11th – 14th

Board & Membership Meeting (EXECUTIVE & BOARD OF DIRECTORS ONLY) Wednesday, February 17th 3:30pm – 5:00pm Meeting 5:00pm – 6:00pm Reception

New Business Development Task Force Wednesday, March 16th 3:00pm – 4:00pm

Workforce Development Task Force Thursday, February 18th 3:00pm – 4:00pm Business Update Luncheon (Qtr.1) Tuesday, February 23rd 11:30am – 1:00pm Public Policy Task Force Tuesday, February 23rd 3:00pm – 4:00pm

Workforce Development Task Force Thursday, March 17th 3:00pm – 4:00pm

Quality of Life Task Force Wednesday, April 13th 9:00am – 10:00am Gulf Coast Outlook Conference (Formerly PMOC) Committee Meeting Tuesday, April 19th 3:00pm – 4:00pm

Public Policy Task Force Tuesday, March 22nd 3:00pm – 4:00pm

Board & Membership Meeting Wednesday, April 20th 3:30pm – 5:00pm Meeting 5:00pm – 6:00pm Reception

Economic Alliance Office Closed Good Friday Friday, March 25th

Workforce Development Task Force Thursday, April 21st 3:00pm – 4:00pm Public Policy Task Force Tuesday, April 28th 3:00pm – 4:00pm

ECONOMIC ALLIANCE | FOURTH QUARTER 2015

17

New Era

NEW BRAND

Recently, the Economic Alliance underwent a full-scale re-branding process in order to enhance our overall public presentation and solidify our brand uniformity across all mediums of representation.

Below, you’ll learn a little about the evolution of our brand and how the new collateral materials will be used to communicate with our membership moving forward.

Our Logo Evolution 1985-2004

Harris County South East Economic Development Council, Inc.

Economic Alliance Houston Port Region, Logo Version 1.0

2004-2014

18 ECONOMIC ALLIANCE | FOURTH QUARTER 2015

2015

Economic Alliance Houston Port Region, 30th Anniversary Logo

New Brand: 2016

2016

1985 – 2004: Harris County South East Economic Development Council, Inc. The Economic Alliance originally began in 1985 as “South East Economic Development” council – affectionately known as “SEED.” The name was changed to its current name in 2004 under the leadership of then-Chairman Thane Harrison.

Describing the reasons for the change at the time, Harrison said, “This dynamic, cooperative and proactive spirit, which inspired our name change, represents a new era for leveraging strengths and resources of our communities. Economic Alliance Houston Port Region is not just a new name, but a new organization with a new approach. Building on our experiences from a 20 year involvement in economic development and now with our newly-strengthened alliance, our southeast communities will not only gain from a regional focus on economic vitality, but also a united voice representing almost 900,000 citizens.”

2004 – 2014: Economic Alliance Houston Port Region, Logo Version 1.0 Along with the name change in 2004 came a brand new logo, which many of you will recognize.

The creation of the original logo and forward arrow icon for the Economic Alliance was inspired by the movement of goods in and around our port. This logo served the organization very well and was the first step in the evolution of our brand.

2015: Economic Alliance Houston Port Region, 30th Anniversary Logo The Economic Alliance Houston Port Region celebrated its 30th anniversary in 2015.

Thirty years in operation was a major milestone for our organization, and we created a logo to commemorate that accomplishment. The 30th Anniversary Logo was created with the help of Brandon Rowan at Bay Group Media, a key partner and member of the Economic Alliance. We asked Brandon to create a logo that captured the key elements of our membership; specifically, the petrochemical and maritime industries.

We received so much positive feedback about our 30th Anniversary Logo that we decided to incorporate elements of that logo into our new brand!

2016: A New Brand With the help of April Guzik at Day Zero Creative (www.dayzerocreative.com), we designed the new logo you’ll begin to see on all of our communications moving forward. You’ll see we kept the ship front and center, brought in a simplified version of the petrochemical refinery as the logo backdrop, and centered the “Houston Port Region” text to give the logo a more centered and balanced feel.

We didn’t stop at the logo; we also took on the task of updating our brand across all mediums that we use to reach out to members, prospective members, and other important stakeholders: an updated website and print collateral pieces were all re-designed with a unified brand in mind. In addition, we have re-branded our hallmark annual conference, formerly known as the “Petrochemical & Maritime Outlook Conference,” into the “Gulf Coast Outlook Conference.”

ECONOMIC ALLIANCE | FOURTH QUARTER 2015

19

New Era, New Brand

Website

T

(allianceportregion.com)

he new website was developed in-house with our members

Users can easily access event information, Task Force information,

and other users in mind. The design is sleek, simple, and

and even become members on the spot with our new shopping cart

informative.

Design elements from the print collateral

system. It is also worth mentioning that we have switched to PayPal

pieces have been brought into the slider section of the site

as our credit card processing vendor, which gives greater flexibility

to underscore brand uniformity.

20 ECONOMIC ALLIANCE | FOURTH QUARTER 2015

in how payments are received.

Print

O

ur new print and digital collateral pieces were designed in tandem with our website so that we have complete brand consistency. Below

are some shots of the inside of our new print collateral piece.

You may have noticed something missing at the 2015 Annual Banquet- our annual report! That was on purpose; we will no longer be distributing the report at the Annual Banquet. The core information is readily available in our new marketing collateral piece.

This new print piece was designed as a pocket folder so that it can be used for everything from new member development to presenting city-specific annual reports to each city we serve. It details the mission of our organization, information on our Board structure, information on each Task Force, economic development achievements, and a brand new map showing our primary territory, major area landmarks, and an overlay of the San Jacinto Texas Historic District that is administered by the Economic Alliance.

The Economic Alliance team is excited about the new image we have and know you will be too. We look forward to continuing to put our best foot forward as we work to serve our membership.

Conference

O

ur premiere annual event, formerly known as the

the conference from one day to two days, adding additional time

Petrochemical & Maritime Outlook Conference, will now be

for networking, and potentially creating a brand solely for the

known as the Gulf Coast Outlook Conference. Last year’s

conference in order to market it to a broader audience- both national

conference was record-breaking with over 700 attendees present.

and international. If you’d like to know more about this great event

The name change comes with the surge of recent growth in both

or be involved in helping to shape the direction of it in this pivotal

our industries.

transitional year, we welcome you to join our Outlook Conference

We have become a true Gulf Coast destination

conference.

New plans for this year include the name change, expanding

Task Force. You may find information on our website under the “Get Involved” section.

ECONOMIC ALLIANCE | FOURTH QUARTER 2015

21

a look

Ahead

forecasting 2016 & beyond

Task Force Updates Public Policy Task Force The Public Policy Task Force was busy in 2015 with providing a forum that facilitates information sharing and education on public policy issues that impact the Houston Ship Channel region.

Federal Over 2015, the Economic Alliance has become recognized as a credible resource for information and knowledge for our federal leaders and partners. In April, over 20 members of Economic Alliance Houston Port Region traveled to Washington, D.C. to advocate on behalf of the Houston Port Region. Over a two-day period, the delegation had over 20 individual meetings with members and staff of the Houston region congressional delegation, senior members of Congress, the U.S. Army Corps of Engineers, Department of Labor, and Vice President staff.

With the hard work and dedication of our members and business partners we saw some successes in our federal policy initiatives. For example, the U.S. ExportImport Bank was reauthorized, regional workforce development initiatives are being recognized, and individual companies received important permits after in-person

22 ECONOMIC ALLIANCE | FOURTH QUARTER 2015

meetings with the US Army Corps of Engineers.

State During this past state legislative session, the Economic Alliance worked with members and partners to advocate for maintaining and modernizing valuable economic development programs for the continued development and growth of the region. In addition, the Alliance continues to work with regional mayors to advocate for funding to build and maintain critical infrastructure necessary to protect communities, businesses, and industry in the region from the impact of coastal storm surge damage caused by future storms. The Economic Alliance also continues to advocate for the incorporation of overall port and freight mobility into the state transportation system through improvements to roads and rail infrastructure.

Region The Economic Alliance continues to work with, support, and lead where necessary, alliances of Economic Development partners, businesses and industry associations, to accomplish important public policy goals at a regional state and federal level. It would be difficult to list all regional accomplishments in 2015, so here are just a few highlights: Economic Alliance advocated for and provided recommendations to H-GAC for building and maintaining critical

transportation infrastructure to support the industries and communities we represent.

Economic Alliance continues to support regional workforce development initiatives with the creation of the Dream It. Do It. Southeast Texas Education Foundation and support of San Jacinto Texas Bond referendum.

Workforce Development Task Force 2015 was a successful year for the Workforce Development Task Force. The Dream It. Do It. Southeast Texas Education Foundation, Inc. was formed to continue to market the careers available in the industries we represent and engage students, teachers, parents, and counselors.

Overall, in 2015, the Economic Alliance Speakers Bureau addressed over 4,000 students in addition to hundreds of teachers, counselors, and parents. In addition, national Manufacturing Day was October 2, 2015.

This was the inaugural year for participation

by DIDI-SeTx. Because of the interest level of stakeholders, we had to extend Manufacturing Day into Manufacturing Weeks. We had activities in support of

Manufacturing Day from September 28 – October 23. We had 14 companies, 9 schools and 1,030 students participate.

Related to Manufacturing Day, 2015 was the inaugural year for our Teacher Job Shadowing Program as well. We were approached by Sheldon ISD with a request to provide Job Shadowing opportunities in the industries we represent for 19 teachers in various disciplines that ranged from Accounting to Wildlife/Agriculture Mechanics.

With the creation of the Foundation and hiring of a program manager this year, we anticipate 2016 will provide growth and more opportunities to share the message of our industries.

New Business Development Task Force With a transition in Economic Development staff, the New Business Development Task Force naturally saw transition as well. Efforts to track projects have been streamlined using new report software that will make it easier for the Alliance to quantify project efforts and provide nonconfidential information to its members.

The new, streamlined report contains only the projects that are considered “Priority” and are currently in active communication.

The meeting time for the New Business Development Task Force has been changed from a lunch meeting (11:30am – 1:30pm) to an afternoon meeting (3:30pm – 4:30pm), in uniformity with the other afternoon Task Force meetings held at the Economic Alliance.

The 2015 project year was capped off by a presentation from Lawrence Waldron of LBC Tank Terminals on his company’s crude/ chemical terminal joint venture project with Magellan and underscores the efforts to focus this Task Force exclusively on project updates. Look for strategic planning and additional project-specific speakers throughout 2016.

Transportation Task Force Our Transportation Task Force began to take actions in 2015 to work towards the goal of elevating the level of priority given to funding freight mobility projects in the Houston Ship Channel region to be commensurate with the level of value the region brings to the regional, state and federal economies.

Economic Alliance staff began talks with the Houston-Galveston Area Council (H-GAC) in the 3rd quarter of 2015 to discuss ways that our Task Force could effectively raise awareness of the needs of our members.

As a result, President and CEO of the Economic Alliance, Chad Burke, gave a presentation on our Transportation Task Force’s identified transportation project priorities to the H-GAC Technical Advisory Committee (TAC) and Transportation Policy Council (TPC) in the final quarter of 2015.

These presentations set the stage for the advocacy efforts to come in 2016, beginning with the selection of Traci Koenig, Economic Alliance Director of Economic Development, to sit on the H-GAC Technical Advisory Committee. Thank you to member Barbara Koslov of BayTran for the nomination.

This represents the first time in history that the Economic Alliance has occupied

a physical seat at the table in the process of selection of projects for funding through the H-GAC Transportation Improvement Program, which is the evaluation process through which federal funds are awarded for local transportation projects. Selection results will be announced at the January 22nd TPC Meeting.

Look for engagement with stakeholders not yet at the table and continued focus on advancing regional transportation project funding throughout 2016.

Quality of Life Task Force The Quality of Life Task Force closed out 2015 on a high note. The cities of Galena Park and Deer Park completed their gateway monument projects, marking the last in the series of planned gateways throughout the San Jacinto Historic District which spans all eleven of the original founding municipal partners of the Economic Alliance.

City of Deer Park Marketing Coordinator Kristin Edwards has been appointed Chair of the Task Force, beginning her two year term in 2016 and brings abundant energy and drive to her new assignment. Goals for the Task Force in 2016 include the drafting of a structured Marketing Plan, the creation of a new subcommittee structure to support anticipated growth, and expanded outreach to regional stakeholders. Also new in 2016 is a dedicated focus to how Quality of Life directly supports Economic Development in quantifiable ways.

This Task Force will be meeting monthly now instead of bi-monthly, beginning February 2016.

ECONOMIC ALLIANCE | FOURTH QUARTER 2015

23

Task Force Updates

Young Professionals The Economic Alliance has, for the first time, created a Young Professionals Task Force!

We are very excited about the potential of this Task Force. It is in its inception in 2016, and we are currently seeking a Chair to lead efforts to engage young professionals in our industry, organize networking events, and ensure that our Young Professionals have a voice within our organization. Look for the Task Force Chair appointment, Young Professional profile interviews in Bay Area Magazine, and Young Professionals networking events in 2016.

Business Growth Task Force The Business Growth Task Force broke its own attendance records this year at its Business Update Luncheons and Industrial Procurement Networking Breakfast- the latter of which saw over three hundred attendees at the Pasadena Convention Center. It was and remains the best source for middle-market companies to network with one another here at the Economic Alliance.

In addition to the quarterly Business Update Luncheons and bi-annual Procurement Networking Breakfasts, look for more innovative ways this Task Force is networking in 2016, like late afternoon “think tank�-style information-sharing sessions followed by food and drink.

24 ECONOMIC ALLIANCE | FOURTH QUARTER 2015

a look

Ahead

forecasting 2016 & beyond

Economic Alliance

in

MOTION

ECONOMIC ALLIANCE HOSTS DELEGATION FROM SHANDONG PROVINCE, CHINA

The Economic Alliance hosted a delegation of 23 from Shandong Province, China comprised of mayors, vice-mayors and county-level executives.

Shandong Province is one of the second-most populous provinces in China and one of the most industrialized. They are heavily involved in petrochemicals, chemicals, oil and gas, and heavy industry. The delegation heard an economic report of the region from Economic Alliance CEO Chad Burke and then from Economic Alliance Board Chairman Jim Griffin on the advantages we have along the Houston Ship Channel. The delegation was also taken on a bus tour of the region following the presentations.

CEO CHAD BURKE PRESENTS ON BEHALF OF ECONOMIC ALLIANCE TRANSPORTATION TASK FORCE TO THE HGAC TRANSPORTATION POLICY COUNCIL The Economic Alliance presented on behalf of its Transportation Task Force a presentation of the projects identified in the region that will help freight congestion and support economic growth. The Transportation Task Force is led by the regional Mayors, the Port of Houston Chairman Janiece Longoria and Executive Director Roger Guenther, East Harris County Manufacturers Association, the three rail companies, Harris County Precinct 2, BAYTRAN, and HGAC. The Mission of the Task Force is to identify and support projects that will maintain and upgrade regional transportation infrastructure on a timely basis in order to accommodate regional economic growth and to ensure efficient and safe movement of goods and people.

DIRECTOR OF ECONOMIC DEVELOPMENT TRACI KOENIG KEYNOTE SPEAKER AT TRANSPORTATION CLUB OF HOUSTON LUNCHEON

Marking the first time the Economic Alliance has presented to the Transportation Club of Houston, Traci Koenig gave a presentation covering the “Resin Boom” and how the influx of plastics production will affect current transportation infrastructure, an overview of projects the Economic Alliance Transportation Task Force has identified as critical, and the approach to advocacy the organization is taking to ensure that the transportation needs of the region are met.

ECONOMIC ALLIANCE | FOURTH QUARTER 2015

25

Economic Alliance

in

MOTION

ECONOMIC ALLIANCE OCTOBER BOARD MEETING HELD AT SAN JACINTO COLLEGE

Last October, the Economic Alliance hosted its bi-monthly Board & Membership Meeting at San Jacinto College Central Campus. Attendees heard from Chancellor Dr. Brenda Hellyer on the “San Jac Tomorrow” Bond Proposal that was approved last November. The bond, will fund improvements to several campus buildings and allow for an expansion of vital workforce development and training initiatives.

ECONOMIC ALLIANCE JOINS LEAGUE CITY CHAMBER OF COMMERCE TO HONOR CONGRESSMAN RANDY WEBER FOR SUPPORT OF EX-IM BANK Last December, the Economic Alliance joined the League City Chamber of Commerce in recognizing U.S. Congressman Randy Weber for his support of the U.S. Export-Import Bank Reauthorization discharge petition and his additional work supporting the issue in Texas. During the event, Morgan’s Point Mayor, Michel Bechtel, presented a joint thank you letter signed by regional mayors to Jed Webb, Congressman Weber’s District Director, to share with the Congressman.

26 ECONOMIC ALLIANCE | FOURTH QUARTER 2015

Economic Alliance

in

MOTION

ANNUAL BANQUET A SUCCESS AT SYLVAN BEACH PAVILION The celebration of our 30th Anniversary took place during the Annual Banquet at Sylvan Beach Pavilion on Thursday, November 12, and attendees had a great time. The organization honored its past Chairmen as well as the Businesses of the Year from local communities. The 2016 Board of Directors was also inducted, naming Jim Griffin of Dianal America as the organization’s new incoming 2016 Chairman.

ECONOMIC ALLIANCE HIRES DENISE SMESNY TO OVERSEE DREAM IT. DO IT. SOUTHEAST TEXAS PROGRAM The Program Manager position is a highly-visible, public-facing position in charge of the direction, strategy, outreach, and effective management and implementation of the regional workforce development programming of Dream It. Do It. Southeast Texas. Ms. Smesny will act as the primary point of contact for Dream It. Do It. Southeast Texas and the Economic Alliance Houston Port Region on all workforce programming-related tasks. CEO Chad Burke said, “We are excited to have Denise on-board with our organizations. We know she will not only represent our industries well, but energize students, parents, teachers, counselors, and administrators to learn more about the career opportunities available in our industries to fill the current gap.”

ECONOMIC ALLIANCE | FOURTH QUARTER 2015

27

John Thompson Named MEMBERS Financial Advisor of the Month Each month, MEMBERS Insurance & Investments recognizes an individual for “Financial Advisor of the Month.” Advisors are nominated by their Regional Sales Directors and chosen based on a recent sales success, sales ideas or passion for MEMBERS Products that can impact, inspire and motivate others.

This month’s “Financial Advisor of the Month” is Jon R. Thompson, LUTCF, located at Shell Federal Credit Union in Deer Park, TX. Please take a moment to read Jon’s story at the link below and see what Jon credits as some of the key ingredients in his success. http://crws.cunamutual.com/~/media/9001ABD90771450C8A707 5935C6C1706.ashx

Armand Bayou Nature Center Adds homeschool Options to Nature Classes In addition to its regular line up of field trips crafted to meet Texas Essential Knowledge and Skills standards for public schools, Armand Bayou Nature Center now offers a full range of outdoor classes for homeschool families. Building on the growing success of preschool EcoTots (toddler and parent) and EcoKids (3-6 years old), ABNC has introduced the EcoSchoolers natural science curriculum for 7-12 year olds to stimulate their interest in future STEM studies. ABNC has partnered with Texas Children in Nature to encourage more play and learning in the outdoors, knowing that time spent in nature makes us all happier, healthier and smarter.

Dixie Chemical Wins SOCMA Bronze Performance Improvement Award Dixie Chemical’s Pasadena facility is pleased to announce it has been recognized for exemplary efforts in improving its environmental, health, safety and security by the Society of Chemical Manufacturers and Affiliates (SOCMA), a trade association representing specialty chemical manufacturers.

Dixie Chemical participates in SOCMA’s ChemStewards® program, which encourages companies to operate their facilities in an environment that guarantees safety and environmental

28 ECONOMIC ALLIANCE | FOURTH QUARTER 2015

compliance to all stakeholders. Dixie Chemical will accept a Bronze Performance Improvement Award at SOCMA’s 94th Annual Dinner on December 7 in New York City.

“We are extremely proud of the hard work our employees have done on our EHS&S program. This award reflects our commitment to constant improvement for our products, our workers and our neighbors in the community,” said Senior VP, Michael Gromacki.

Raba Kistner Consultants Announces New Leader for Forensics Services – Eric Rypple, PE Raba Kistner Consultants has announced that Eric Rypple, PE has accepted the position of Manager, Forensic Services. Eric is responsible for expanding Raba Kistner’s Forensic Services capabilities and staff development in San Antonio and other Texas office locations. He will be focusing on structural failures, foundation movements, non-destructive testing, pavement analyses, and property condition assessments. His services will include complete scope and budget development for all forensics projects for the company, structural peer review, inspection reports, property condition assessments, surveys, forensic design, engineering production and client management.

City of Deer Park Assistant City Manager Gary Jackson Nominated for the University of Houston MPA Program’s “Public Official of the Year.”

A selection panel composed of University of Houston MPA Program alumni and an MPA student screened all nominations based upon the following criteria: §§ displayed outstanding performance in a challenging local situation; §§ demonstrated a commitment to ethics and ethical decision making; §§ demonstrated dedication to public service values and appears to have placed the welfare of citizenry above personal, professional, and political motives; and

§§ addressed problems beyond your jurisdictional boundaries, and/or shows evidence of maintaining harmonious and supportive relationships across jurisdictional boundaries.

They then selected Gary as one of five (5) finalists for the award.

The winner will be announced at an Awards Banquet held at 11:30 AM, on Friday, March 4, 2016, at the University of Houston Hilton, Waldorf-Astoria Ballroom, UH Campus. Please join us in congratulating Gary on his nomination.

Money Magazine names BBVA Compass Best Regional Bank in the South & West Money magazine named BBVA Compass as the best regional bank in the South & West and best mobile app in its annual Best Banks in America 201516 feature. According to the magazine, the bank’s ClearChoice Premium checking account and ClearChoice money market account made it the winner among other regional banks, while the BBVA Compass Mobile Banking App won for its broad array of capabilities and user-friendly interface that anticipates customers’ needs. The app has become a standard-bearer — it is a two-time winner of Javelin Strategy & Research’s Mobile Banking Leader in Functionality Award — and underscores BBVA Compass’ drive to stay in front of the digital transformation sweeping the industry.

Moody National Bank Names Executive Vice President and Senior Vice President Moody National Bank added two experienced local bankers to its team of lending professionals in 2015. Ken Wesson has been named Executive Vice President and Commercial Lender in Clear Lake, and Barry Beard is Senior Vice President for Business Development in Sugar Land.

Wesson has spent much of his 35-year career in the banking and financial services industries serving the needs of privately held businesses. His office is located in Moody National Bank’s Clear Lake Branch, 1100 Bay Area Blvd., (281) 998-3337. His email address is kwesson@moodybank.com.

Beard is a former combat helicopter pilot with 20 years of banking experience. Active in the community, he is Board President of OakBend Hospital, former chair and board member of the Central Fort Bend Chamber of Commerce and has served on numerous local boards and commissions. Beard’s office is in the Moody National Bank Sugar Land Branch, 7610 Highway 90A, (281) 9986700. His email address is bbeard@moodybank.com.

Moody National Bank is among the largest privately owned banks in the Houston Metropolitan area, with assets exceeding $1.1 billion, loans totaling more than $500 million and 19 banking locations serving Brazoria, Fort Bend, Galveston, Harris, and Travis Counties.

San Jacinto College Helping Students ‘See to Succeed’

Mayors Bechtel and Royal Participate in Rising Tides Summit 2015

The San Jacinto College eye care technology program has been a part of the Kid’s Vision for Life See to Succeed program for six years. This program provides free vision exams and eyewear to children and youth in need. It is coordinated through the Houston Department of Health and Human Services, San Jacinto College, the University of Houston (UH) College of Optometry, Essilor Vision Foundation, Walmart, Berkeley Eye Center, and the Luxottica One Sight Foundation. The College serves as a weeklong host site each Fall, seeing an average of 400 students per day. San Jacinto College eye care students and faculty also travel to the West End Health Center twice a year to assist in vision exams for students from Houston area ISDs, the Accelerated Learning Academy, and the KIPP Academy.

This past November, Seabrook Mayor, Glenn Royal and Morgan’s Point Mayor, Michel Bechtel, participated in the national Rising Tides Summit 2015 in Hampton, New Hampshire. During the Summit, the mayors joined a bipartisan group of leaders from across the U.S. to meet with congressional leaders to address the increasing threat of coastal flooding and hurricane storm surge.

ECONOMIC ALLIANCE | FOURTH QUARTER 2015

29

Join Our Growing List of Members Our Partner Members

Our Stakeholder*, Corporate, and Proprietorship Members A & B Labs Adaptive Tech Services Aggregate Technologies, Inc. Air Products Akzo Nobel Polymer Chemical LLC AL Law Group All American Screening & Medical Alpha Technical Services Amegy Bank American Acryl Andrews Myers, PC Anthem, LLC Apache Oil Company APJ Wealth Management/MerrillLynch Argosy Transportation Group Arkema Inc. Armand Bayou Nature Center Association of Bayport Companies AT&T August Companies Austin Industrial B.J. Superior, Inc. B2BCFO Barbara Walling Bay Area Houston Economic Partnership Bay Group Media Baytown/West Chambers Economic Development BB&T Branch Banking & Trust Company BBVA Compass Bank Beacon Federal Credit Union Belt Harris Pechacek, LLLP Bendel Tank & Heat Exchanger BIC Alliance Blasingame-Whitley Attorneys at Law Bowen Brady Chapman Holland and Assoc.

Brown & Gay Engineers, Inc. Bureau Veritas, NA Capital Bank

Capital Idea Houston Cardinal Delivery Cenikor Foundation Change Magazine Channel Biorefinery & Terminals, LLC Cherry Demolition Chevron Phillips Choice Energy Services Cintas CMEF Comerica Bank Commscope Community Bank of Texas Core Trucking of Texas Corporate Memory Solutions Cummings Westlake LLC D&C Inspection Services Dan Blanchard Dao’s Bookkeeping & Tax Services DeLane’s Ad Specialties Denbury Resources Inc. Dianal America, Inc. Dimension Energy Services, LLC Dixie Chemical East Houston Regional Medical Center Economic Incentive Services, LLC Ecosystem Renewal, LLC Energy Edge Consulting England & Company Equipment Depot Excel Modular Scaffold & Leasing Corporation Exel Logistics Fishbone Safety Solutions Force Corporation Freese and Nichols Frost Bank FSI - Field Specialties Inc. Galveston Bay Foundation GHD

*Stakeholder members in bold.

30

ECONOMIC ALLIANCE | FOURTH QUARTER 2015

Great Western Valve Greater Houston Natural Gas Vehicle Alliance Greater Houston Partnership Greens Bayou Corridor Coalition Gulf Coast Waste Disposal Authority Gulf Winds International, Inc. Gulfex, LP H&M Industrial Haldor Topsoe,Inc. Hargrove Engineers + Constructors HDR Engineering, Inc. Hilton NASA Clear Lake HKA Enterprises Houston Gulf Coast Building & Construction Houston Marriott South Houston Methodist San Jacinto Hospital Houston Pilots Association Houston Travel Zone Houston Yacht Club HTS, Inc. Hunter Buildings & Manufacturing HydroChem LLC IberiaBank IBEW, Local 66 IDS Engineering Group ILA #1351 Industrial Packaging System Infinity Construction Services, LP Innovative Alternatives, Inc. iProcess Data Systems, LLC Island Bound Company, LLC ISTC J. Simmons Group John Manlove Marketing & Communications JPMorgan Chase Bank, NA. JSC Federal Credit Union Kaneka North America LLC Kiewit Energy Group & TIC Group Kinder Morgan

Knudson LP La Porte Education Foundation Les Ellard Insurance Agency LJA Engineering Lubrizol Main Event Entertainment Marco A. Arredondo, Inc. Martin Recruitment Solutions Meador Staffing Services Metropolitan Commercial Finance Mid-America Contractors, LLC Mobil Steel International Moody National Bank Mosher Seifert & Company, CPA Munro’s Munsch Hardt Kopf & Harr P.C. My IT People, LLC NA Industries National Property Holdings Nissan Chemical Houston Corp Noltex, LLC OCTG, LLP Oxyvinyls Palms Banquet & Event Center Pannell Kerr Forster of Texas, P.C. (PKF) Parkway Chevrolet PetroLogistics Pfeiffer and Son,Ltd. Phelps State Farm Insurance Philibert Insurance Agency Pollution Systems

Port Terminal Railroad Association Priority Power Management, LLC Qualified Properties, Inc. R & R Heat Exchangers Raba Kistner Consultants Regions Bank Resource Development Company Richard Industrial Group Richardson Stevedoring & Logistics Roberts Markel Weinberg Butler Hailey P.C. RUS Industrial San Jacinto Family YMCA San Jacinto River and Rail SETECH Shafaii Party and Reception Center Inc. Shell Federal Credit Union Sol Bobst Solvay South Atlantic & Gulf Coast District ILA Southwest Shipyards, L.P. Springhill Suites by Marriott - Baytown Springhill Suites by Marriott - Seabrook Sprint Waste Services, L.P. Star Fleet Star of Hope STG Design Stockstill & Associates Structure Tone Southwest T & T Construction, LP Taylor Marine Construction TDS - Training & Development Systems Inc.

Teadit North America Tech Trans International Terracon Consultants, Inc. Tetra Tech Texas Industrial Medical Texas Lawn & Sprinkler Texas Molecular Limited Partnership Texas Southern University The Drake Companies The Mondello Group The Mundy Companies The Royal Group at Merrill Lynch Tolunay-Wong Engineers,Inc. Tower Tech Inc. TPC Group Trey Industries Trustmark National Bank United Way of Greater Baytown Area & Chamber County University of Houston-Clear Lake US Telehealth Vesco Office Services Walter P.Moore Welcome Group, LLC West Gulf Maritime Association Wilhelmsen Ships Services Winkler Public Relations Workforce Solutions XTL, Inc.

Newsletter Sponsorship Your sponsorship will allow us to continue to broaden our reach and to maintain and improve the visual quality of the publication and written content. We have some exciting themes planned for 2016 and look forward to continuing to highlight the impressive accomplishments of our members and region.

Quarterly publication sponsors will receive: §§ A sponsor ad in the print and online versions of the publication commensurate with level of sponsorship §§ A link to the sponsor company website from the electronic version of the publication

Sponsorship Opportunities

Based on the structured space we have within our publication, there will be a limited number of sponsorships available.

Website Sponsorship The Economic Alliance is developing a brand new mobile-responsive and user-friendly website to be launched in the third quarter of this year. We are now offering quarterly Website Sponsorship opportunities to begin showing upon launch to have your company logo placed prominently in key sections of the new website. With over 50,000 page views per month on average, a Website Sponsorship is an excellent way for members to increase their brand awareness and make the most of their membership in the Economic Alliance.

Please contact our Director of Economic Development, Traci Koenig via email at traci@allianceportregion.com, for sponsorship levels and benefits.

203 Ivy Avenue, Suite 200 Deer Park, TX 77536 281-476-9176

“Our energy is devoted to operating safely and reliably, each and every day ”

Throughout our 95 year history, ExxonMobil has devoted its energy to building a better Baytown. Our operations have grown from humble beginnings into America’s largest integrated refining and petrochemical complex. Most importantly, we’ve accomplished this while remaining committed to world-class safety, reliability and environmental stewardship and as an active member of the Baytown community, holding true to our values and embracing our Baytown identity. We look forward to celebrating our 100th anniversary with you soon.

exxonmobil.com