Debate over water rights in Maryland divides boaters, anglers, and rafters

Boats docked at Traders Landing on Deep Creek Lake at dusk. (AMY DAVIS / Baltimore Sun)

Scott Dance reports for the Baltimore Sun

Fights over water rights usually wrack Western states, but a similar debate is bubbling in Western Maryland.

On one side are the thousands of boaters who spend their summers cruising and playing in the waters of Deep Creek Lake, the largest of the state’s lakes, all of them man-made. During the driest years, when lake levels drop too low, waters can recede far enough from some docks that they get trapped by dry land.

Those enjoying the waters of the nearby Youghiogheny River, which lake waters help feed, have a different set of concerns.[From The Archives] No, Deep Creek Lake is not going to be drained »

Whitewater rafters and kayakers depend on scheduled releases of lake waters into the river for an exciting ride downstream. The river’s trout, which attract anglers from across the state and region, depend on the surges of cool lake water, because otherwise the river could get too warm for them to survive.

In the middle is a 94-year-old hydroelectric dam that uses the lake water to generate electricity, and also bears some responsibility for keeping water users on both sides of the earthen dike happy. The Maryland Department of the Environment is currently weighing a new permit to govern how the dam owner must manage water flow over the next dozen years.

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The permit, expected to be issued by the end of the year, has been the focus of a months-long debate because the lake and river waters are the lifeblood of the economy in Garrett County, a remote part of the state with few remaining industries. Wherever the water flows, it draws with it tourism dollars, whether they’re tied to recreation with speedboats and jet skis, tackle and lures, or rafts and paddles.

The environmental agency’s John Grace said the state will have to weigh the impacts on both sides of the dam before issuing a final permit. Advocates for the lake and the river will get one more chance to share their concerns publicly at an Oct. 15 hearing at Garrett College in McHenry.

“It’s a really challenging situation to make everyone totally happy,” said Grace, chief of the source protection and appropriations division of the state water supply program. “I don’t think that’s realistic, but I think it’s realistic for us to be consistent and follow our mission.”

[From 2010] Residents concerned about Deep Creek Lake’s future »

A string of wet or wet-enough years has prevented much conflict for the past six or seven years. But those who see the potential for it know it could be just a dry season away.

Drought has developed rapidly across parts of Maryland in recent weeks, and all of Garrett County and the surrounding area is considered “abnormally dry,” a precursor to drought. A relatively small 62-square-mile watershed feeds Deep Creek, so Grace said the lake’s fortunes can change quickly, for better or worse.

As population and development spread around the area, Neil Jacobs said, he’s prepared for more conflicts like this one. The McHenry resident and angler said he expects there will only be more need to share water resources in the future.

“There’s going to be some pain,” he said. “Everyone’s going to have to take a little pain.”

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To residents, many of whom spend summers or weekends there but live elsewhere in Maryland and Pennsylvania, lake access is paramount. Development has been building around the lake ever since its creation, when the Deep Creek was impounded to power the hydroelectric station that began operating in 1925 and is now owned by Brookfield Renewable Power.

Concerns about low lake levels last appeared in 2012, the area’s third dry year in four. It prompted the Deep Creek Watershed Foundation, a nonprofit group, to commission research that found significant potential impacts to water access.

The lake’s surface currently lies at an elevation of about 2,458½ feet, though it’s often higher in the summer. Just six inches below that level, 2,458 feet, about 9% of the lake’s 2,200 boat slips lose access to water, said David Myerberg, the foundation’s president. At two feet lower, 2,456 feet, 15% are affected.

But in some southern coves, the impact is more pronounced, with more than half of boat slips inaccessible when the lake surface lies at 2,457 feet or lower, Myerberg said.

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Minn. regulators reject Xcel’s purchase of Mankato natural gas plant

Elizabeth Dunbar reports for Minnesota Public Radio
September 27, 2019 6:55 p.m.

The King plant will retire in 2028 and Sherco 3 in 2030.
Xcel Energy will retire their last two coal-fired power generating stations. The Allen S. King station will retire in 2028 and the Sherco 3 station will be retired in 2030. William Lager | MPR News file

The Minnesota Public Utilities Commission on Friday rejected Xcel Energy’s purchase of a natural gas power plant in Mankato, Minn., saying it wasn’t in the public’s interest.

Xcel had wanted to purchase the Mankato Energy Center, saying it would help with the utility’s planned early retirement of coal plants in the state. 

But the Minnesota Department of Commerce, Xcel’s large industrial customers, the Citizens Utility Board of Minnesota and others raised questions about the cost of the plant and said it could hurt Xcel’s utility customers. 

Still, other groups backed Xcel’s plan, including several clean energy groups and the Laborers’ International Union of North America. 

They had argued having the gas plant in Xcel’s control would give both the utility and Minnesota more flexibility in the transition away from the fossil fuels contributing to climate change.

“Any decision about it has input from people,” said Kevin Lee, an attorney for the Minnesota Center for Environmental Advocacy. “That’s decisions like retirement dates, things like operational control. I can imagine a scenario in 2040 or 2045 or 2050 where you keep the gas plant, but maybe you only use it one or two days a year.”

Instead, he said, the Mankato Energy Center will be owned by someone else and could keep burning natural gas long into the future. 

Kevin Pranis of the Laborers’ International Union of North America said having Xcel in control of the plant might provide opportunities for union workers leaving jobs at retired coal plants. 

“Minnesota is going to be going through a really challenging transition,” he said. “This was an important asset that would have facilitated that.”

But Citizens Utility Board executive director Annie Levenson-Falk said the PUC’s decision protects Xcel’s customers. 

“This purchase was not in customers’ interest. For Xcel to spend $650 million of ratepayer dollars to purchase the plant would present too much cost and too much risk,” she said.

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Republican Rep. Chris Collins resigns House seat ahead of guilty plea to insider-trading charges

The Republican from New York had called the charges against him ‘meritless’ but is scheduled to change his plea Tuesday afternoon

Rep. Chris Collins (R-N.Y.) leaves a courthouse in New York after a pretrial hearing on his insider-trading case on Sept. 12. (Seth Wenig/AP)
Rep. Chris Collins (R-N.Y.) leaves a courthouse in New York after a pretrial hearing on his insider-trading case on Sept. 12. (Seth Wenig/AP)

Renae Merle and Mike DeBonis report for the Washington Post
September 30, 2019 at 2:10 p.m. EDT

NEW YORK — Rep. Chris Collins is resigning from Congress and expected to plead guilty to insider-trading charges on Tuesday, following allegations last year that the Republican from New York schemed with his son to avoid significant losses on a biotechnology investment.

Collins, President Trump’s first congressional supporter, allegedly tipped off his son to confidential information about an Australian biotechnology company, Innate Immunotherapeutics, that he learned as a member of its board. Collins and several others used the information to avoid more than $700,000 in losses, according to prosecutors.

He is scheduled to change his plea Tuesday afternoon in a Manhattan federal court.

Collins’s son, Cameron; and another family member are scheduled to change their pleas on Thursday.

House Speaker Nancy Pelosi (D-Calif.) received a letter of resignation from Collins on Monday, a senior Democratic aide said. The resignation will be effective when the letter is officially filed at a scheduled House session Tuesday.AD

Collins’ attorney did not respond to an email and phone call seeking comment.

Collins, who once called the charges against him “meritless,” has since 2013 represented New York’s 27th Congressional District, which encompasses suburban and rural areas stretching east of the Buffalo metropolitan area.

Rep. Chris Collins charged with insider trading, federal prosecutors announce

Collins won reelection last year after initially suspending his campaign, then reversing that decision despite pressure from Republicans to step aside and allow another GOP candidate on the ballot. Collins was sworn in for a fourth term in January but was not seated on any House committees pending resolution of his indictment.

Several candidates have announced campaigns to challenge Collins in 2020, including GOP state Sens. Chris Jacobs and Rob Ortt as well as Democratic lawyer Nate McMurray, who came about 1,000 votes shy of unseating Collins last year. Should Collins resign, New York Gov. Andrew M. Cuomo (D) would set a special election for the coming months.AD

Despite Collins’s close reelection race, the 27th District is considered reliably Republican — Trump won it by 24 points in 2016.

Collins was among Trump’s earliest endorsers and continued speaking out on his behalf after being indicted — including as recently as last week, when the congressman issued a statement criticizing Democrats’ announcement of a formal impeachment investigation of Trump. The White House and fellow Republicans, however, have kept their distance from Collins.

Collins was indicted in August 2018 and had been fighting the charges. Innate Immunotherapeutics was developing a new therapy for multiple sclerosis. Collins served on the company’s board of directors and was its largest shareholder, according to a federal indictment.

According to prosecutors, while at the June 2017 congressional picnic at the White House, Collins received an email from Innate Immunotherapeutics’ chief executive alerting the company’s board that an eagerly anticipated drug trial had been a failure. Minutes later, Collins responded to the email: “Wow. Makes no sense. How are these results even possible???”AD

Collins immediately tried to contact his son, who owned millions of Innate Immunotherapeutics shares, according to the indictment. Within a few minutes, Collins and his son called each other six times before connecting and talking for six minutes. During that call, Collins told his son about the failed drug trial, according to the indictment, which cites phone and bank records as well as texts.

With that insider knowledge, Collins and his family were able to avoid significant losses before the news became public and the company’s stock price fell more than 90 percent, prosecutors allege.

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$29.6 billion of Philly real estate is exempt from property taxes. Should nonprofits be asked to pay up?

Lincoln Financial Field – Philadelphia Magazine photo

The Philadelphia Museum of Art. Lincoln Financial Field. The former Aramark Tower.

Together, those Philadelphia landmarks are worth $794 million, according to city assessment records. But they are among the nearly 23,000 properties in Philadelphia exempt from paying property taxes because they are owned by nonprofit or government institutions.

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In sum, the $29.6 billion value of all exempt properties account for 17% of the city’s total real estate value, according to an Inquirer analysis. Their combined tax breaks equal about $414 million annually.

It’s not unusual for cities like Philadelphia, with a high concentration of universities and hospitals, to have a large amount of untaxed property. Adam Langley, who studies tax exemptions at the Lincoln Institute of Land Policy, a Massachusetts-based think tank, said he often cites the city when referring to places with lots of tax-exempt properties.

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Still, Langley said, Philadelphia is “kind of an outlier” because it does not seek payment in lieu of taxes (PILOT) agreements with its largest nonprofit institutions, a step that has enabled other cities to recoup millions in extra revenue.

When he ran for mayor four years ago, Jim Kenney said the city should pursue PILOTs or comparable service agreements. Now, as Kenney asks voters in November for a second term, other types of tax exemptions have come under scrutiny from City Council, activists, and residents, and property reassessments have led to tax hikes for thousands of homeowners in the last two years.

And some of the same activists who have urged the city to eliminate or reform its 10-year tax abatement for new construction or rehabilitation have called for PILOTs for institutions such as the University of Pennsylvania, which owns at least $3.2 billion in property and has a $14.7 billion endowment.

But no negotiations for PILOT agreements are underway, said Jim Engler, Kenney’s chief of staff.

What kinds of properties are tax-exempt?

State law dictates that churches, cemeteries, hospitals, institutions of learning, charities, and government-owned properties are exempt from taxes, as long as their revenue goes toward the support of the institution or charity. Many argue that they help the city in other ways, as large employers, tourist attractions, or health-care providers.

Government properties — owned by the city, state, and federal governments, housing authorities, SEPTA, and other agencies — account for nearly 40% of the value of all tax-exempt properties, the records show. The remaining exemptions are for nonprofits.

Educational institutions in Philadelphia own about a quarter of the value of tax-exempt properties, the Inquirer analysis found.

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Restoring the Chesapeake Bay one oyster shell at a time

Kara Holsopple reports for the Allegheny Front

Jessica Lewis says shucking an oyster is like picking a lock.

“You can’t really muscle through it,” she said, running a small knife around the edge of a closed oyster shell. “You press down, and then you just wiggle, and pop it open.”

Jessica Lewis, executive chef, prepares oysters at Spirit & Tales.
Photo: Kara Holsopple/The Allegheny Front

Lewis is the executive chef of Spirits & Tales at the Oaklander Hotel in Pittsburgh. She says the restaurant goes through 300 to 400 oysters a week, from the East and West coasts. But regardless of where they’re sourced, the top and bottom shells will end up as a part of a restoration project in the Chesapeake Bay. 

Lewis and her staff toss the spent shells into a 35-gallon barrel with a screw-on lid, located in the trash area on the ground floor of the building. About once a month a truck picks up the old shells from this and six other participating restaurants in Pittsburgh and drives them more than 250 miles to a staging area just across the Chesapeake Bay Bridge in Maryland.

From there, the oyster shells from Pittsburgh, and ones collected from Maryland, Virginia and the D.C. area are taken to a site at the University of Maryland Center for Environmental Science’s Horn Point Laboratory in Cambridge, for processing.

“So here you’re looking at about 7,000 tons of clean shell,” said Karis King, with Oyster Recovery Partnership, a nonprofit which works to increase oyster numbers in the Chesapeake Bay. She’s standing at the base of a mountain of gray shells.

They’re dumped with a front loader into a machine that’s like a modified potato hopper, which helps sort the shells. While on the sorter, the shells are washed with water from the nearby Choptank River, a major tributary of the bay. Smaller fragments of broken shell fall away, as a conveyor belt deposits the half shells into wire cages or piles where they’re cured for a year.

“Even with all the shell that we do recycle, and also purchase from shucking houses, we still don’t have enough to do large scale restoration, at the rate that we could,” King said.

A mountain of cleaned shells. Photo: Kara Holsopple/The Allegheny Front
Shells will be cured for a year before being used for spat. Photo: Kara Holsopple/The Allegheny Front

Nature is “out of whack”

A look back in history explains the scale of the problem, says Stephanie Alexander, manager at the Horn Point Lab oyster hatchery.

“When John Smith sailed up in the 1600s, he was running aground on oysters,” Alexander said. 

That’s before these waters were overharvested, and before there was agricultural runoff and soil erosion from development.

“We’ve pretty much wiped the oyster out to less than one percent of historic levels,” she said. “So we started this restoration effort where we’re using a hatchery to produce spat on shell to put back into the bay, so we can kind of help jump-start Mother Nature.”

The concept is pretty simple: Scientists here at the lab produce baby oysters from adults harvested from the bay, nurture the microscopic larvae with a custom algae diet, then get them to attach to the recycled, treated oyster shells. That’s the “spat on shell.”

Stephanie Alexander manages the Horn Point Lab oyster hatchery. Photo: Kara Holsopple/The Allegheny Front
Oysters from the bay waiting to spawn. Photo: Kara Holsopple/The Allegheny Front
Special algal diet for the oyster larvae. Photo: Kara Holsopple/The Allegheny Front
Tanks where the oyster larvae grow into spat. Photo: Kara Holsopple/The Allegheny Front

It’s a lot harder than it sounds. Even in the lab, with its high-tech tanks, instruments and network of pipes, nature is in charge.

Alexander says it was a slow summer for the project. Increased rainfall caused a drop in salinity in the bay, stressing the adult oysters, and making them less likely to spawn, or produce eggs and sperm.

The water in the bay is also warming, which could make it harder for the spat on shell they release to grow a second shell, and over the years, form the clusters that create oyster reefs.

“When one thing gets out of whack, everything else is going to kind of follow,” Alexander said. “So we’re trying to get the oysters back into balance, so then, hopefully, everything else will follow.”

Vacuum cleaners of the bay

Over the last two decades, the lab and Oyster Recovery Partnership have planted 8 billion oysters on the bottom of the Chesapeake Bay and its tributaries, with the help of other partners like the Maryland Department of Natural Resources and the U.S. Army Corps of Engineers. Throughout the summer spat on shell are released from a boat on sites where they’re most likely to survive. Alexander says that’s critical.

“Oysters are the vacuum cleaners, or the kidneys, of the bay,” she said. “They just suck the water in. They decide if it’s food or not food. But no matter what it is, they remove it from the water column, and that’s how they clean it.”

Because of this superpower, oyster aquaculture is a best management practice identified by the regional partnership that oversees cleaning up the Chesapeake Bay.

Some of the spat raised at the Horn Point Lab will make its way to oyster farmers, and those are the “oysters on the half shell” that are served in restaurants. But the majority of the spat will help rebuild oyster reefs, creating habitat for fish, and restoring the ecosystem.

“We did something good.”

Half of the land area of Pennsylvania drains into the Chesapeake Bay, and that includes a lot of pollution from agricultural runoff, like nitrogen. It’s a factor in the formation of dead zones in the bay. Recently, the commonwealth has come under fire from Maryland’s governor for not investing enough money to help clean up the Chesapeake.

Back in Pittsburgh, Jessica Lewis is educating diners and trying to convince other Pittsburgh restaurants to join the oyster shell recycling effort that feeds the conservation work. She hopes they’ll see the value in giving back.

“With climate change, and all those scary things, it’s like a bright light shining through–that we did something good,” she said.

Her pitch: Every shell counts. 

##

This story is part of our series, Wild Pennsylvania, which is funded by the Richard King Mellon Foundation. To check out other stories in the series, click here

This story is produced in partnership with StateImpact Pennsylvania, a collaboration among The Allegheny Front, WESA, WITF and WHYY to cover the commonwealth’s energy economy.

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Farmers find another reason to get frustrated with Trump

By Katie Lobosco, CNN

CNN — The trade war with China has been particularly painful for American farmers, but a separate issue is currently straining their support for the administration: biofuel.

The leaders of 23 corn grower organizations sent a letter to President Donald Trump on Friday, arguing that his administration’s biofuel waivers have reduced demand for their crops.

“Frustration in the countryside is growing,” the letter reads.

In August, the Environmental Protection Agency granted 31 waivers to small refineries, temporarily exempting them from biofuel laws. The waivers free refineries from having to blend biofuels like ethanol into their gasoline.

Corn growers immediately voiced their concerns and Trump later tweeted that a “giant” ethanol package was in the works.

“The Farmers are going to be so happy when they see what we are doing for Ethanol,” Trump tweeted.

But, a month later, they appear tired of waiting for the details to be finalized. In the letter, growers said that that a rising number of ethanol plants are closing or reducing production, costing more than 2,700 jobs. If refineries are using fewer soybeans and corn, it drags down the price farmers can get for their crops.

“Clearly, this has eroded support for the administration right now,” said Ron Heck, an Iowa soybean farmer who serves as secretary of the National Biodiesel Board and sits on Trump’s Agricultural Advisory Committee.

Farmers have generally stood behind Trump and his mission to get a new deal with China, even as Beijing has put tariffs on a variety of American-grown agricultural products. China was the biggest market for soybeans, but exports have plummeted. A record amount of soybeans are sitting in storage.

Trump appropriated $28 billion to farmers hurt by Beijing’s retaliatory tariffs, but the aid package isn’t meant to make up for their entire losses.

But to many farmers, including Heck, the short-term pain is worth what he believes a new trade deal with China will provide in the future by addressing unfair trading practices. But the issue with ethanol is different. He blames the EPA for causing the problem.

“The trouble is with the EPA. So we’re giving Trump a reasonable amount of time to fix this, and if he doesn’t, there will be some farmers who will say he didn’t deliver on his promise,” Heck said.

The Clean Air Act requires transportation fuel to contain a minimum amount of renewable fuel. But under the Renewable Fuel Standard program, small refineries can apply for a temporary exemption if it demonstrates that meeting the requirement would cause an economic hardship. The Trump administration has approved 85 waivers in total.

A spokesman for the EPA said the agency “will continue to consult with our federal partners on the best path forward to ensure stability in the Renewable Fuel Standard.”

“The President will always seek to engage with stakeholders to achieve wins for the agriculture and energy sectors,” he added.

Earlier in the week, farm groups applauded the Trump administration for signing a new trade deal with Japan. It will open up markets for US beef, pork, wheat and other agricultural produce.

“This is a huge victory for America’s farmers, ranchers, and growers, and that’s very important to me,” Trump said at a press conference Wednesday.

But while American pork producers say they’re happy about the deal, it only gives them about the same level of access to the Japanese market as they would have gotten under the Obama-era Trans-Pacific Partnership in the first place. Trump pulled out of the 11-country deal as one of his first acts as President, opting for a bilateral agreement instead.

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