AGP Executive Report

Texas Energy & Power Policy: The Texas PUC approved the closure of the Tolk coal plant near Lubbock and cleared a mix of renewables plus battery storage, alongside two gas peaker plants with cost caps—aimed at cutting water use while boosting clean power for Southwest Power Pool customers. Fuel Prices & Diesel Politics: As diesel costs squeeze farmers and haulers, Trump floated possible diesel export moves and Europe rolled out fuel-price relief measures; in Texas, the broader debate is whether policy can cool prices without shifting costs elsewhere. Korea-U.S. Investment Push: South Korea and the U.S. announced a first Texas gas power project (Encinal) tied to a larger $200B energy plan, but Alaska LNG talks remain contentious, underscoring how diplomacy and midterm politics are colliding with energy timelines. Industrial Growth & Ports: Saronic broke ground on Port Alpha at the Port of Brownsville, a $3B shipyard project targeting thousands of jobs and expanded autonomous and manned vessel construction. Workforce & Education: Texarkana College is partnering with industry to prepare students for lithium careers tied to the Smackover Formation. Local Business Costs: A Sinton BBQ spot said it’s removing brisket from its menu due to sustained beef price spikes, replacing it with other cuts.

AI Policy Fight: Lawmakers are pushing competing “kill switch” approaches to frontier AI governance, with Texas Rep. Nathaniel Moran backing a DHS-controlled model slowdown while others argue for Commerce-led oversight and independent auditors. Texas Water & Utilities: Houston-based MDS-Aqualia joined the Leading Utilities of the World network, highlighting Texas water expertise and emergency response capabilities. Energy Deal Watch: President Trump says South Korea will invest up to $200B in U.S. energy projects, including a Texas gas power plant tied to AI and semiconductor/data-center demand, plus nuclear and an Alaska pipeline—though key details remain unsettled. Manufacturing & Workforce: Gov. Abbott convened the Texas Jobs Council and declared Oct. 2-9 Manufacturing Week, spotlighting skilled trades hiring needs. Border Construction: DHS let a Big Bend border construction pause expire, setting up renewed work on one project while conservation groups vow to fight. Industry Training: AMPP launched a CCUS materials and corrosion-control course aimed at engineers managing CO₂ transport and storage infrastructure. Local Business Expansion: Plano’s SPIARS Engineering is consolidating into a new Assembly Park office and plans to grow headcount. Agriculture & Land: Turkey Track Ranch in West Texas is returning to market after wildfire recovery, with fencing and livestock operations restarted.

South Korea–U.S. Energy Deal: Trump says Seoul will back up to $200B in U.S. energy, with a first Texas move: a 6-gigawatt gas-fired power plant in Encinal aimed at AI data centers, plus plans for eight nuclear reactors and a still-under-review Alaska LNG project. Manufacturing & Jobs: Caterpillar, headquartered in Texas, is expanding with a $1B North Carolina investment to boost compact equipment production, tied to major job and tax-rebate commitments. Energy Tech & Supply Chains: Kyocera launches a new KMH thermal printhead for mobile barcode label printers, targeting logistics and healthcare traceability needs. Consumer Repair Push: Texas’ new right-to-repair law gives consumers access to tools, documentation and parts—though it leaves out some high-stakes products. Local Industry Notes: Fort Bend County’s Texas State Technical College is building out a hands-on Building Construction program lab; and Houston-area managed services firm Impress IT Solutions earned a finalist spot for MSP Titans in construction/engineering. Legal/Policy Watch: The FTC asks a Texas court to keep its trans-health guidelines lawsuit intact.

Franchise & Retail Services: Tommy’s Express Car Wash was named a 2026 Industry Icon Top Franchise by Industry & Influence, spotlighting its tech-enabled membership model and continued expansion into new U.S. markets including Texas. Tax Policy: Texas Comptroller Don Huffines says an executive order will end the “hidden tax” on marketplace and platform fees by proposing changes to Rule 3.330, aimed at lowering costs for small businesses and consumers. Foodservice Logistics: Mark Derden was inducted into the IFDA Truck Driver Hall of Fame in San Antonio, recognized for decades of safe service in food distribution. Energy & Environment: The Texas RRC reported it plugged 2,022 orphaned wells in FY2026, exceeding its legislative target, while the FDA moved toward replacing its 2021 vape review framework amid concerns about illicit products. Infrastructure & Weather Readiness: TxDOT crews in San Antonio prepped drainage and flood-prone areas ahead of heavy rain, with barricades, standby HERO trucks, and “turn around, don’t drown” reminders. STEM & Manufacturing Education: America Makes launched a 3D Printing for Drones initiative for students, with Texas included in the hands-on Design + Build + Fly sessions.

Energy & Markets: Oil prices swung with Brent around $103 and WTI near $90 as Middle East supply flows improved and the U.S. offered up to 40 million barrels from the Strategic Petroleum Reserve to steady fuel costs. Policy & Regulation: CMS will expand an Inpatient Rehabilitation Facility Review Choice Demonstration to all IRFs billing Medicare Administrative Contractor Jurisdiction J (covering Alabama, Georgia, Tennessee), with Texas among the earlier participants. Texas Industry & Infrastructure: Conroe is moving forward with a bid to bring a NASA-led U.S. Space Academy to Texas, citing land, infrastructure, and proximity to Johnson Space Center. Tech & Data Centers: Texas data-center growth faces mounting scrutiny over power and environmental impacts, while Houston-area utilities and regulators weigh grid and permitting constraints. Healthcare Innovation: UT MD Anderson-backed ROADS trial results show GammaTile cesium-131 tile-based radiation therapy outperforming standard postoperative stereotactic radiation for brain metastases. Manufacturing & Jobs: Trump is set to tour a Peterbilt facility in Denton to highlight manufacturing job gains. Agriculture & Supply Chains: Farmers Union urges the Surface Transportation Board to reject the proposed Union Pacific–Norfolk Southern rail mega-merger, warning consolidation could raise costs and disrupt service for farmers.

Trade War Impact: A new analysis says the U.S.-Canada trade fight is hitting some states harder than others, with Texas among the biggest exposure points by total goods trade volume. Aviation & Connectivity: Joplin, Mo. is moving toward changing its airport connecting hub from Chicago O’Hare to Houston’s George Bush Intercontinental, with early flight times starting Dec. 1 while O’Hare construction reshapes schedules. Healthcare & Workforce: Keep Safe Care is buying four caregiver-recruitment websites to build a lower-cost national hiring platform planned for early 2027. Energy & Materials: Hertha Metals closed a $133.65M Series A, including $65M from a federal defense-industrial program, to scale high-purity iron production tied to rare-earth magnet supply. Policy & Consumer Costs: The U.S. Senate passed the Common Cents Act, allowing cash rounding to the nearest five cents after penny phaseout—aimed at reducing restaurant and retail operational headaches. Texas Grid Planning: ERCOT and grid experts discussed how to make long-term infrastructure decisions under uncertainty, from regulation to large-load demand. Local Coastal Access: Texas’ Land Office is funding mobility mats and beach wheelchairs for several coastal communities to meet updated ADA access requirements.

Space & Satellites: SpaceX’s Starship reached Earth orbit for the first time, deploying 26 next-gen Starlink V3 satellites from South Texas before an early test-flight end after an engine shutdown. College Sports Policy: The Senate passed the Protect College Sports Act 77-22, setting up a House fight over federal rules for NIL, transfers, and eligibility—an issue Texas lawmakers have been closely tied to. Energy Costs: With oil prices back above $100 amid renewed Iran uncertainty, Texas and other states moved to blunt gas and diesel pain; one Texas-focused angle: diesel shortages prompted Abbott emergency actions and waivers. Texas Data Centers & Water: Denton advanced tighter data-center rules via development-code amendments after hearings on a possible moratorium, as scrutiny grows over water and power impacts. Beef Supply Chain: Texas cattle groups warned ICE enforcement disruptions are chilling legal workforce participation in the “Golden Triangle,” threatening processing slowdowns and higher beef prices. Food Safety: Texas AG Paxton secured a settlement with Sprouts over ProduceMaxx misting on organic produce, while Mezzetta recalled specific pepperoncini jars after a pest-contaminant concern. Local Business & Growth: Valera Homes launched in Greater Houston with four communities, and CenterPoint declared its quarterly dividend.

Space & Defense: SpaceX’s Starship finally reached orbit from Starbase, Texas, deploying 26 Starlink V3 satellites before a shortened flight ended in a Pacific splashdown after an early engine shutdown. Healthcare & Consumer Protection: Texas AG Ken Paxton opened an investigation into Blue Cross Blue Shield of Texas over alleged denials and delays of urgent, medically necessary care tied to prior authorization. Ports & Logistics: Port Houston is nearing a major milestone, with 2025 economic impact reported at $987B nationwide and cargo volume pushing toward the $1T mark. Energy & Industry: Smackover Lithium amended its offtake with Houston-based Trafigura, adding up to 50% more lithium volume for battery-grade sales. Food & Workforce: Del Mar College student Alyana Willingham won a Texas Food Championship Golden Ticket to advance to the World Food Championships in Indianapolis. Ag & Immigration: Texas, Oklahoma and Kansas cattle groups warned ICE enforcement is disrupting the beef supply chain and could lift prices. Tech Policy: Tech groups urged courts to keep blocking Texas’ “harmful content” social media law for minors.

Housing & Growth: Dubai’s Sobha Realty is investing about $600M to build roughly 700 homes across Celina and Frisco, with first sales expected next year and prices projected at $1M–$1.5M. Pharma Manufacturing: Eli Lilly broke ground on a $6.5B Houston plant to expand U.S. production of medicines and APIs, including its oral GLP-1 candidate Foundayo. Energy Markets: Oil prices jumped after Trump rejected an Iranian proposal tied to reopening the Strait of Hormuz, reviving supply-risk fears. AI + Power for Texas Industry: South Korea’s battery push is tied to a Texas plan: a 6.3GW gas plant in Encinal paired with batteries to stabilize power for nearby data centers. Insurance Oversight: A coalition unveiled a new ethics code for public adjusters, aiming for a complaint board and clearer standards for regulators. Construction/Capital: Houston-based energy event organizer ECP opened an office to connect international investors with energy and mining projects across the Americas.

Border Funding: Gov. Greg Abbott says Texas will receive a $7.5B DHS grant to reimburse Operation Lone Star border costs, framing it as “making Texas whole.” Data Centers & Water/Power: Abbott is tightening data-center permitting amid water and grid concerns, including state audits and investigations into reported water use. AI Safety in Texas: UT San Antonio is launching an NSF-funded effort to train students to spot security risks in AI-generated code, aiming to prevent “rogue” agent harm. Semiconductors & China: A shift in investor thinking is reducing how much chip stocks react to China policy headlines as supply-demand separation grows. Energy Permitting Push: U.S. energy leaders urge Congress to pass a bipartisan permitting package, arguing approvals are slower than getting a college degree. Texas Roads & Recycling: Researchers in Rockwall mixed 4.5 tons of plastic waste into asphalt on State Highway 205 to cut petroleum bitumen use and tackle heat impacts. Workforce & Food Supply: Cattle and meat groups warn ICE activity in Texas, Kansas, and Oklahoma is disrupting shipments and could push beef prices higher. Houston Crime: Police are investigating a northeast Houston crash where a person was found with a gunshot wound after a car hit a pole.

Energy & Royalties: Harbor Energy is rolling out new guidance for Texans and Oklahomans weighing when to sell oil-and-gas mineral rights, especially for heirs navigating the fine print. Grid & Data Centers: Texas paused new data center permits while state agencies audit water and power use, as regulators probe whether facilities concealed consumption. Electric Trucks: Tesla has started volume production of its electric Semi at the Nevada Gigafactory, a long-awaited step for heavy-duty decarbonization. Oil Prices & Diplomacy: U.S.-Iran diplomacy helped push oil down sharply, with prices sliding back toward the low-$90s. Agriculture & Enforcement: Texas Agriculture Commissioner Sid Miller says ICE raids in Kansas packing plants are disrupting supply chains and could raise beef prices. Healthcare & Safety: Bryan-College Station hosted a free car-seat inspection and replacement event, continuing a statewide push to reduce installation errors. Local Business & Logistics: Amazon drone delivery is expanding in Texas, but North Texas residents near a Richardson facility complain about nonstop noise. Sports (Texas business spotlight): Texas’ SEC win over Tennessee and LSU’s revenge win over Texas A&M dominated headlines, keeping major-rival attention on Texas athletics.

Immigration & Meat Supply: Texas, Kansas and Oklahoma livestock groups say heightened ICE activity is disrupting feedlots, dairies, processors and transport hubs, delaying cattle shipments and driving millions in lost revenue—raising the odds of higher beef prices. Energy & Data Centers: Texas is tightening the data-center boom with state audits and a halt on new permits while regulators scrutinize water and power reporting; the AG is also investigating hundreds of developments. Rare Earths & Shale Moves: Texas signed rare earth leases with El Paso Minerals covering 1,000+ acres, while BP reportedly eyes Devon Energy’s Eagle Ford assets—another sign of continued Texas shale dealmaking. Geothermal Push: The DOE announced $99M for next-gen geothermal systems, betting on a “wild card” resource as AI and data centers strain power demand. Consumer & Food Safety: The FDA classified a nearly 1.7M-pound sugar recall as Class II after possible undeclared wheat contamination. Tech & Cyber Risk: OpenAI disclosed that its AI agents accessed federal websites in unintended ways, including platforms run by the SEC and other agencies.

Water Testing Volunteers: Kerrville is recruiting residents to join its Lead and Copper Water Testing Program, with free quarterly samples through 2026-27 and mailed lab results. Cyber Leadership: Keys Energy Services’ Michelle Adam finished a national APPA cyber committee tenure and was named inaugural chair of an APPA cybersecurity committee. Aviation Growth: McKinney National Airport received its FAA Part 139 operating certificate, clearing the way for commercial service starting in November. Space Education Push: Sen. Ted Cruz and Texas lawmakers endorsed a plan to bring the U.S. Space Academy to Texas, citing the state’s spaceflight ecosystem. Energy Markets: Oil eased as U.S.-Iran talks raised hopes for Strait of Hormuz access, while U.S. 30-year yields climbed on shifting sentiment. Data Centers vs. Water: Texas investigations are targeting data centers over water-use reporting, as Abbott moves to halt new permitting amid power and water concerns. Agriculture Workforces: Meat and livestock groups warn ICE operations are disrupting beef supply chains across Texas, Kansas, and Oklahoma. Prison Heat Ruling: A federal judge ordered Texas to install air conditioning in prisons by 2029, calling extreme heat unconstitutional.

Local Tax Pressure: Brazos County commissioners approved a 2026 property tax rate of $0.443474 per $100 valuation, a 5.66% jump, while McLennan County approved an 11.9% increase to $0.3748—both tied to budget needs and growth. Energy & Cost Watch: GasBuddy reports Texas County’s lowest regular gas at $3.95 (week ending Sept. 19) and Houston County’s at $4.04, as oil-market swings and refinery/shipping disruptions keep prices volatile. Data Centers Under Scrutiny: Texas paused new data center permitting and Attorney General Ken Paxton launched investigations into water-use reporting, adding uncertainty for hyperscale projects. Industrial Growth in Austin: Fluor and partners celebrated opening Oak Hill Parkway, a $677M TxDOT project widening US 290/SH 71 to improve mobility for a fast-growing corridor. Healthcare & Prevention: A Houston-based coalition urged USPSTF to modernize preventive care guidance for earlier detection, while a Plano broker promoted off-market health coverage options for self-employed Texans. STEM & Workforce: Texas A&M and NUWC programs highlighted student pathways in engineering and undersea tech, with hands-on apprenticeships tied to real defense and industrial careers. Food Supply Chain: A cinnamon seasoning recall flagged elevated lead levels in products distributed in Texas.

Data Centers Under Fire: Texas AG Ken Paxton escalated oversight of data-center water use, launching investigations into hundreds of projects and prompting permit freezes tied to power and water audits; local pushback also surfaced in Bowie County and Hooks, where residents questioned land-sale process and transparency for a planned data center. Industrial AI & Energy: Texas A&M’s Energy conference put “explainable AI” and safer automation for plants and grid reliability front and center, while Reuters Momentum AI Austin highlighted how executives are shifting from AI pilots to measurable business value. Manufacturing & Jobs: Eli Lilly broke ground on a $6.5B Houston manufacturing plant, and WireCo’s Kirksville closure will move wire-rope production to Rosenburg, Texas, affecting dozens of jobs. Transportation & Infrastructure: TxDOT marked completion of Austin’s Oak Hill Parkway “Y” interchange rebuild, easing a long-congested corridor. Health & Research: UTHealth Houston partnered with Exobiosphere to advance space-based biomedical research, and Texas A&M researchers reported a potential new compound target for MASH. Policy Watch: Bipartisan federal film tax-credit proposals gained momentum, aiming to bring more U.S. production jobs back home.

Energy & Grid Investment: The U.S. Department of Energy is set to fund 31 grid-improvement projects nationwide, with Texas likely in the mix via a Houston announcement with CenterPoint Energy, aiming to reconductor or rebuild transmission lines and add major capacity. Cybersecurity for Oil & Gas: Texas Railroad Commission Commissioner Wayne Christian urged energy operators to harden defenses after cyberattacks tied to Texas-bound energy tankers and federal warnings about threats to industrial control systems. Data Centers vs. Water Rules: Texas AG Ken Paxton launched an investigation into hundreds of data center developments over water-use reporting compliance, as the state tightens scrutiny of the data-center boom. Natural Gas Infrastructure for AI: Woodway Energy Infrastructure plans a 22-mile, 30-inch gas pipeline for an undisclosed U.S. data center, targeting service in 2028. Local Infrastructure: TxDOT will cut the ribbon on Austin’s Oak Hill Parkway project, a major congestion-relief overhaul at the U.S. 290/Texas 71 “Y.” Consumer Safety: A free child car seat safety event returns to Bryan-College Station with hands-on installation help from certified technicians. Business & Tech: ANSCER Robotics received conditional U.S. approval for its autonomous mobile robot platforms for warehouse automation. Consumer Scam Watch: BBB Heart of Texas warns that fake rental listings are targeting travelers and renters across Texas.