New Rules for Hydrofracking Proposed: This Time in California

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Going along with the same theme from my last post, new rules have been proposed for hydrofracking, but this time in California. Governor Jerry Brown’s administration released these draft regulations that would require energy companies, for the first time ever, to disclose what chemicals they are releasing into the ground during the fracking process. These companies would also have to reveal the locations of their wells where this process is occurring.

These proposed regulations have arose because energy companies are looking into tapping the state’s Monterey shale, which runs from Northern California to Los Angeles and contains approximately 15 billion barrels of oil- making it the largest shale formation in the continental U.S.

A recent conclusion was drawn from a Bloomberg News study that in their disclosure reports, companies nationwide withheld one out of every five chemicals they used in fracking. Perhaps this is why nine other states have deemed these new rules appropriate, and why California is proposing them as well.

Under these new rules, companies would be required to disclose chemicals 60 days after completing fracking. They would also have to test their wells before fracking to ensure that leaks don’t occur, and provide the results of those tests to regulators before starting to drill.

With regulations around fracking steadily increasing, transparency has never been more essential for energy companies. By using SaaS based Locus EIM software to better organize, validate, and report all of the data and information involved with fracking, companies would be able to prove that when fracking is engaged in, it is engaged in safely. Locus’ EIM has already been proven to assist companies in showing that obtaining these valuable fossil fuels while remaining environmentally responsible is an attainable feat.

Latest version of proposed regulation changes on hydrofracking expected this week

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It’s no secret that hydraulic fracturing, or hydrofracking, has been a popular topic for debate in recent years. Another occurrence revolving around this that has garnered support from some, and opposition from others, is Texas’ oil and gas regulatory agency, the Railroad Commission, updating its rules to address all aspects of the drilling process.

The latest version of the proposed rule changes is expected this week, and will be the largest revamping of Texas well construction regulations since the 1970s. These rules are important to ensure that toxic, fracking-related fluids do not leak into aquifers due to poor construction of oil and gas wells. These regulations will require examinations of things such as the quality of the protective cement placed between layers of pipe in a well, and a pressure test for the pipes themselves.

Keeping with the controversial theme around hydrofracking, some say the rule changes are too restrictive, and others say they aren’t enough. But most agree that hydrofracking does have the potential to contaminate groundwater if not performed correctly.

The contamination of groundwater can occur from faulty drilling or well completion. For the natural gas industry to ensure this doesn’t happen and to stay in compliance with these new regulations, it must keep up with an ongoing monitoring of site conditions and air emissions, management of production water, and the remediation of adverse environmental impacts: all of which involve the collection and analysis of large quantities of complex data.

Owners of hydrofracking sites and drilling companies need to take advantage of existing software tools to better organize their hydrofracking waste and water quality data. By using SaaS based software like Locus’ EIM to organize, manage, validate, visualize, store, and report this information, they can effectively demonstrate that this drilling can be done safely and transparently.

California Kicks Off Cap-and-Trade Program to Auction Carbon Emission Credits

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Today, California kicked off the first auction of their cap-and-trade system for greenhouse gases under the California Air Resources Board (CARB) new cap-and-trade program. This is the first large-scale carbon market in the United States, and is expected to be the second largest carbon market in the world, after the European Union.

The outcome of today’s auction will likely determine the future of greenhouse gas policy in the United States. California’s program already includes the concept of potential “linkage” with other carbon markets, which means that carbon credits could be transferred between other cap-and-trade programs. This essentially allows for expansion of this market to other states or jurisdictions outside the U.S.

Locus has been involved in the development of California’s carbon market from nearly the beginning.  Locus was one of the first accredited verification bodies for greenhouse gas emissions, and has years of expertise in reporting greenhouse gas data. Locus staff have also been certified as carbon offset verifiers under CARB.  From experience, Locus knows that participants in the cap-and-trade program have many options available to them in how they calculate and report their greenhouse gas data, and how they select those options can have significant effects on the financial impact of the cap-and-trade program. Some of Locus’ customers have saved thousands by making simple changes to their greenhouse gas reporting methods, as recommended by Locus’ technical experts or by using Locus’ Cloud-based GHG software.

California Kicks Off Cap-and-Trade Program to Auction Carbon Emission Credits

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Locus Helps Companies Optimize Greenhouse Gas Reporting under AB 32

SAN FRANCISCO, Calif., 14 November 2012 — Today, California kicked off the first auction of their cap-and-trade system for greenhouse gases under the California Air Resources Board (CARB) new cap-and-trade program. This is the first large-scale carbon market in the United States, and is expected to be the second largest carbon market in the world, after the European Union.

“Many may agree, especially with the buzz around climate change lately, that this cap-and-trade program is an attempt toward reaching an admirable goal of reducing California’s greenhouse gas emissions,” said Neno Duplan, President and CEO of Locus Technologies. “However, Locus also recognizes the challenges that face businesses dealing with this auction, and stands at the ready to assist them in minimizing the costs of complying with the cap-and-trade regulation.”

Locus has been involved in the development of California’s carbon market from nearly the beginning.  Locus was one of the first accredited verification bodies for greenhouse gas emissions, and has years of expertise in reporting greenhouse gas data. Locus staff have also been certified as carbon offset verifiers under CARB.  From experience, Locus knows that participants in the cap-and-trade program have many options available to them in how they calculate and report their greenhouse gas data, and how they select those options can have significant effects on the financial impact of the cap-and-trade program. Some of Locus’ customers have saved thousands by making simple changes to their greenhouse gas reporting methods, as recommended by Locus’ technical experts or by using Locus’ Cloud-based GHG software.

The outcome of today’s auction will likely determine the future of greenhouse gas policy in the United States. California’s program already includes the concept of potential “linkage” with other carbon markets, which means that carbon credits could be transferred between other cap-and-trade programs. This essentially allows for expansion of this market to other states or jurisdictions outside the U.S.

CPA Firm Issues SOC 1SM Report on Controls at Locus Technologies Relevant to Locus’ Internal Control over Financial Reporting (SSAE 16)

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SAN FRANCISCO, Calif., 12 November 2012 — Locus Technologies (Locus), the industry leader in Cloud-computing enterprise software for environmental, energy, air, water, and compliance management, announced today that the company has undergone a Service Organization Control 1SM examination resulting in a CPA’s report stating that management of Locus Technologies maintained effective controls over the Financial Reporting of its Software as a Service (SaaS) system. The engagement was performed by Cropper Accountancy.

A SOC 1SM report is designed to meet the needs of existing or potential customers who need assurance about the effectiveness of controls at Locus that are relevant to its financial reporting system. This report was prepared in accordance with Statement on Standards for Attestation Engagements (SSAE) No. 16, Reporting on Controls at a Service Organization, and is specifically intended to meet the needs of the entities that use Locus’ SaaS software and the CPAs that audit Locus’ financial statements, in evaluating the effect of the controls at Locus on the company’s financial statements. Locus’ SOC 1 report is a Type 2–report stating that the presentation and description of Locus’ system is fair, and that its design and operating effectiveness of controls do achieve the related objectives included in the description throughout a specified period of time.

The SOC 1SM report places Locus in a rare category among environmental information management providers to have attained this rigorous classification. In today’s corporate social responsibility (CSR) and risk-management environment, it is essential that service providers like Locus demonstrate that they have adequate controls and safeguards in place so customers can be confident that their data are safe, and that they are being charged fairly.

“We are pleased that our SOC 1SM report has shown that we have the appropriate financial controls in place. This is in addition to a SOC 2 SM report that we received recently that is focused on mitigating risks related to security, availability, processing integrity, confidentiality and privacy of customers’ environmental, energy, sustainability, and compliance data stored in Locus’ Cloud,” said Dr. Neno Duplan, President and CEO of Locus. “The culture here at Locus is to put our customers first at all times, and it is essential that they feel secure with our financial information management and in trusting us with their data.”

 

Despite Sandy’s Wrath, Nuclear Energy Facilities Stand Strong

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This past week, the East Coast experienced the strongest Atlantic tropical storm on record. Despite the chaos and devastation Hurricane Sandy brought with it, nuclear energy facilities in the northeast seem to have stood strong.

Due to strategic planning and preparation beforehand, such as securing equipment, making sure doors were weather-tight and emergency backup diesel generators were ready to go, 24 out of 34 facilities from South Carolina to Vermont continued to generate electricity during the storm. Even though not all facilities remained in operation, all 34 responded well. Of the 10 that were shut down only three closed because of storm conditions, and the remaining seven were already closed due to refueling or inspection.

This successful response was largely due to the actions of reactor operators and emergency response personnel. These workers ensured the power plants and areas around the facilities remained safe throughout the storm.

“Hurricane Sandy once again demonstrates the robust construction of nuclear energy facilities, which are built to withstand extreme flooding and hurricane-force winds that are beyond that historically reported for each area,” said Marvin S. Fertel, president and chief executive officer at the Nuclear Energy Institute.

This preparation for the unknown certainly paid off in the battle against Sandy. In addition, many of those reactors have installed Locus’ Cloud-based EIM system to manage their environmental data. Consequently, their access to key data, or ability to add new data, has been unaffected by the storm.

It is during tragic natural disasters like this that the value a Cloud-based system brings to critical infrastructure environmental information management is truly proven.  The last location that an environmental information management system should be running from is within the plant itself. Both Fukushima and the BP Gulf spill disaster have shown that no critical software should run at the facility itself; that software and data could be destroyed (or become inaccessible )along with the facility, and the data that would have helped determine the cause of the disaster would be lost for all practical purposes. For these and other reasons, a Cloud-based alternative for environmental information management is the preferred way of managing such data. In the case of a disaster these Cloud-based systems can also be accessed from any location with Internet access, so data can be instantly accessible up until the disaster onset, and can continue to be remotely collected during and after the event.

2012 Railroad Environmental Conference: Environmental Management in the Cloud

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I recently travelled to the University of Illinois at Urbana-Champaign to attend and present at the 2012 Railroad Environmental Conference. Held on Tuesday and Wednesday of last week, the conference was a great opportunity to both learn more about the railroad industry’s environmental programs, and to share my knowledge with this industry on managing environmental, energy, emissions and air quality information in the Cloud.

For the railroad industry, as well as many others, information management is the key driver behind all aspects of environmental management, costs and performance. The larger railroads in particular already own millions of analytical, geological, and other types of records across a portfolio of sites. However, because these records are scattered across various silo systems that neither the companies nor their consultants can easily access, this data cannot be effectively mined for actionable information, and what can’t be measured can’t be managed.

As opposed to numerous silo systems that can cause redundancy, general usability confusion, and errors in your data, the use of a centralized, web-based software application can bring about a variety of benefits. Some quantitative benefits can include about 40 to 60% of total environmental reporting and laboratory program management cost savings, determining trends and identifying sites that can be monitored less frequently and wells that can be decommissioned earlier than first expected, and identifying inefficiencies in sampling programs that can be optimized to save money. In addition, management in the Cloud allows you to pay for only what you use with no hardware to procure, no costly up-front license fee, and no complex set-up.

Although a bit harder to grasp, the qualitative benefits of organizing environmental information in the cloud are eminent, and should not be underestimated. Because every decision you make about your sites is dependent on the quality of your data, it’s essential that you have full ownership of it. The use of a centralized, web-based system instills uniform processes across your organization and its consultants, reduces the cycle time for data loading, validation, management, and reporting, and assures that your data will be error free. It also opens up various windows of opportunities to improve other processes like lab management, EDD loading, data validation, automated reporting, and long term archiving.

Locus’ CEO to present Cloud Solution for Environmental Information Management for Railroad Industry at the Railroad Environmental Conference at University of Urbana-Champaign.

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Environmental, Energy, Emissions, and Compliance Management in the Cloud presented by Locus’ CEO, Neno Duplan.

RailTec, University of Illinois at Urban-Champaign

Abstract of Original 2012 Presentation Follows:

As they go about the lengthy, tedious, expensive and very often dirty job of decontaminating polluted industrial sites, environmental consultants bill their clients by the hour, capturing…and then completely controlling…the superabundance of project-related environmental data that underlies remediation strategies. As a result of this process, a “consultant-centric model” has dominated the field of corporate environmental data management.  This is primarily because environmental data is not integral to the daily functioning of a company, and because the quantities and complexities of the data produced are enormous.  So company managers are generally quite comfortable with letting their consultants do all the querying, analysis, reporting…and then storing the data.

And since the consultants derive increased billing hours from controlling their clients’ data, the ultimate incentive for them is a renewed or extended contract, an outcome which, though certainly not guaranteed, is optimized by their control of the data.

But change is coming.  The environmental data management practices of corporations and their consultants are undergoing a profound transformation as new Web-based software provides a low-cost means of making available the critical information that organizational decision makers need not only to better understand and manage their overall environmental liabilities but also to improve their operations by analyzing the valuable data.  While environmental data is collected primarily for compliance reporting, when mined with the right tools it can also be used to point to weaknesses in data gathering and processing operations and provide valuable information on how to eliminate or reduce these.

A new “company-centric” environmental data management model now offers a remote data repository situated in the Internet “Cloud” and equally accessible in real time to all, including both the client and its consultants.

Cloud computing is a software outsourcing model that offers great promise for managing environmental, energy, emissions, and compliance  information of any type. It is slowly making its way into companies that have to manage large quantities of data and meet routine compliance requirements. The model fits the way environmental information needs to be managed through mashups (applications that integrate data or functionality from multiple sources or technologies), and has the potential to completely upend the way railroad industry  organize, manage, and report their environmental and energy data and information. Companies that have large portfolios of sites and facilities can use Cloud computing as a very low-cost means to take control of their mission-critical environmental data and information, gain new functionality and capabilities, and at the same time circumvent the involvement of their IT department if they so desire.

Cloud-based data management can completely replace existing stand-alone data systems and reporting tools to provide a comprehensive integrated solution to the railroad industry’s one of the most vexing problems—the centralization and management of complex data pertaining to contaminated water, groundwater, soil, and air.

At many contaminated transportation sites or at facilities and other sites contaminated with hydrocarbons, Cloud-based information management systems already provide market-tested solutions that were rapidly deployed and provide a high level of functionality and data security, an extensive set of QA/QC standards, and scalability.

The Cloud provides a platform for the complete electronic processing of analytical data, emissions data, compliance activities, and sustainability data beginning with the upload of electronic data deliverables from labs, and terminating in state-mandated or federal regulatory exports and reporting. When companies use such Software as a Service (SaaS) models, they eliminate most of the difficulties associated with the management of complex data sets while offering the opportunity for more rapid customization of data reporting to meet the changing needs of the industry.

CPA Firm Issues SOC 2SM Report on Controls over Security, Availability, Processing Integrity, Confidentiality, and Privacy at Locus Technologies

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SAN FRANCISCO, Calif., 24 September 2012 — Locus Technologies (Locus), the industry leader in Cloud-computing enterprise software for environmental, energy, air, water, and compliance management,

A SOC 2SM report is designed to meet the needs of existing or potential customers  who need assurance about  the effectiveness of controls at Locus that are relevant to  the security, availability, or processing integrity of the system used by Locus to process customers’  information, or the confidentiality or privacy of that information. The SOC 2SM report places Locus in a rare category among environmental data management providers to have attained this rigorous classification. In today’s corporate social responsibility (CSR) and risk-management environment, it is essential that service providers like Locus demonstrate that they have adequate controls and safeguards in place so customers can be confident that their data are safe.

“We are pleased that our SOC 2SM report has shown that we have the appropriate controls in place to mitigate risks related to security, availability, processing integrity, confidentiality and privacy of customers’ environmental, energy, sustainability, and compliance data stored in Locus Cloud,” said Dr. Neno Duplan, President and CEO of Locus. “The culture here at Locus is to put our customers first at all times, and it is essential that they feel secure in trusting us with their data.”

The following principles and related criteria have been developed by the American Institute of CPAs (AICPA) and the Canadian Institute of Chartered Accountants (CICA) for use by practitioners in the performance of trust services engagements:

  • Security. The system is protected against unauthorized access (both physical and logical).
  • Availability. The system is available for operation and use as committed or agreed.
  • Processing integrity. System processing is complete, accurate, timely and authorized.
  • Confidentiality. Information designated as confidential is protected as committed or agreed.
  • Privacy. Personal information is collected, used, retained, disclosed and destroyed in conformity with the commitments in the entity’s privacy notice and with criteria set forth in generally accepted privacy principles issued by the AICPA and CICA. 

A SOC 2SM report is an internal control report on the services provided by Locus to its customers and provides valuable information that existing and potential customers of the service organization need to assess and address the risks associated with an outsourced service.