TCC/ACIT President's Message
TCC Announces New Communications Director and Regulatory Affairs Director
TCC & ACIT Welcome New Officers and Board Members
Former TCEQ Chairman, Kathleen White, receives TCC Leadership Award
TCC Committee Members recognized for Outstanding Service
New TCEQ Commissioner, Bryan Shaw, Appointed by Governor Perry
Texas Petrochemicals makes Donations Totaling $30,000
Houston Regional Air Quality Task Force Report Released
EPA Proposes a Lower National Standard for Ozone
Texas House Speaker Issues Interim Legislative Study Charges
TCEQ Rulemaking Update
Homeland Security Releases Chemicals of Interest for Anti-Terrorist Standards
TCEQ Agenda and Work Session Dates for 2008

TCC/ACIT President's Message - Chemical Industry is a Pioneer of Green Chemistry
Recently, there has been an increasing amount of reference to Green Chemistry. But most people don't really know what green chemistry is or who's doing it. The chemical industry has been a pioneer of green chemistry for many years and many chemical manufacturers have incorporated green chemistry into their sustainable growth goals and initiatives.

Green Chemistry is a philosophy encouraging the design of chemical products and processes that reduce or eliminate the use and generation of hazardous substances. Green chemistry seeks to reduce and prevent pollution at its source. The concept behind Green Chemistry is to include designing processes to maximize the amount of raw material contained in products, utilizing safe substances whenever possible, increasing energy efficiency in processes, all while minimizing waste disposal.

Green Chemistry is a part of the modern day chemical industry's sustainability efforts. The chemical industry for years has been focused on developing chemical products that are less hazardous to human health and the environment. As part of this initiative, chemical companies are using feedstocks and reagents that are less hazardous and often from renewable resources or from waste streams. Industry has also made significant investment in technologies that promote reuse, recycling, and utilizing processes that yield greater energy efficiency.
The United State Environmental Protection Agency (EPA) has recognized 12 principles of Green Chemistry as published by then EPA employee Paul Anastas and John Warner in Green Chemistry: Theory and Practice (Oxford University Press: New York, 1998). They are as follows:

Prevent waste: Design chemical syntheses to prevent waste, leaving no waste to treat or clean up.
Design safer chemicals and products: Design chemical products to be fully effective, yet have little or no toxicity.
Design less hazardous chemical syntheses: Design syntheses to use and generate substances with little or no toxicity to humans and the environment.
Use renewable feedstocks: Use raw materials and feedstocks that are renewable rather than depleting. Renewable feedstocks are often made from agricultural products or are the wastes of other processes; depleting feedstocks are made from fossil fuels (petroleum, natural gas, or coal) or are mined.
Use catalysts, not stoichiometric reagents: Minimize waste by using catalytic reactions. Catalysts are used in small amounts and can carry out a single reaction many times. They are preferable to stoichiometric reagents, which are used in excess and work only once.
Avoid chemical derivatives: Avoid using blocking or protecting groups or any temporary modifications if possible. Derivatives use additional reagents and generate waste.
Maximize atom economy: Design syntheses so that the final product contains the maximum proportion of the starting materials. There should be few, if any, wasted atoms.
Use safer solvents and reaction conditions: Avoid using solvents, separation agents, or other auxiliary chemicals. If these chemicals are necessary, use innocuous chemicals.
Increase energy efficiency: Run chemical reactions at ambient temperature and pressure whenever possible.
Design chemicals and products to degrade after use: Design chemical products to break down to innocuous substances after use so that they do not accumulate in the environment.
Analyze in real time to prevent pollution: Include in-process real-time monitoring and control during syntheses to minimize or eliminate the formation of byproducts.
Minimize the potential for accidents: Design chemicals and their forms (solid, liquid, or gas) to minimize the potential for chemical accidents including explosions, fires, and releases to the environment.

EPA's Green Chemistry Program promotes the research, development, and implementation of innovative chemical technologies that accomplish pollution prevention in a scientifically sound and cost-effective manner. To accomplish these goals, the Green Chemistry Program recognizes and supports chemical technologies that reduce or eliminate the use or generation of hazardous substances during the design, manufacture, and use of chemical products and processes. More specifically, the Green Chemistry Program supports fundamental research in the area of environmentally benign chemistry as well as a variety of educational activities, international activities, conferences and meetings, and tool development, all through voluntary partnerships with academia, industry, other government agencies, and non-government organizations.

The chemical industry has made great strides in increasing the sustainability of the millions of products that are essential to modern day human life. Industry continues to lead the way in the development of sustainable chemical products that protect human health and the environment while meeting the global economic demands of its customers.

TCC Announces New Communications Director and Regulatory Affairs Director
TCC is pleased to announce the appointment of Dan McGowan as Director of Communications. Dan has served as Media Relations Manager at SEMATECH, a consortium of semiconductor manufacturers. He has extensive experience in working with national, regional and local media on industry issues and provided media training for company managers. Dan has also been a reporter with the Arizona Republic, Phoenix Gazette, and Phoenix Business Journal. He received his Bachelor of Arts in Journalism from Arizona State University. As TCC Communications Director, Dan will be the staff liaison to the TCC Outreach Committee and Communications Committee. Dan will also play a leadership role with the TCC Science Teachers & Industry (STI) program in collaboration with the University of Houston.

TCC is pleased to announce the appointment of Michael McMullen as Director of Regulatory Affairs. Mike has served as Committee Director and Legislative Analyst for Texas State Senator Kyle Janek (R-Houston) and has worked on numerous issues impacting the chemical industry. Mike has also worked as a Legislative Aide in Washington for Congressman Lamar Smith (R-San Antonio) and has managed winning campaigns for Congressman Michael McCaul (R-Austin) and a statewide race for now Supreme Court Chief Justice Wallace Jefferson. Mike received a Bachelor of Arts from St. Edwards University. As Director of Regulatory Affairs, Mike will be the staff liaison to the TCC Air Conservation Committee, Water & Waste Management Committee, and Occupational Safety Committee. Mike will have daily responsibilities for monitoring state agency activities that impact the chemical industry.

We are very pleased to welcome Dan McGowan and Mike McMullen to the TCC family.

TCC & ACIT Welcome New Officers and Board Members
Greg Kraft of Alcoa was elected TCC Chairman for 2008 - 2009 at the TCC/ACIT Annual Meeting on October 18th, in Houston, Texas. Kraft has served on the TCC Board since 1996 and was Vice Chair from 2005 - 2007. Other Officers elected for 2008 - 2009 are Steve Wood of Lyondell as Vice Chair and Art Colwell of BASF as Secretary/Treasurer replacing Bob Walker of Dow Chemical who has accepted a new assignment. The TCC membership also elected the following new Board members:

     Neil Ackerman - OxyVinyls
     Darwin Koepp - INVISTA
     Greg Defrates - Firestone Polymers
     Ann Jackson Rhodes - DSM Nutritional Products
     Wendel Turley - Arkema

ACIT re-elected Bob Kostelnik of CITGO as Chairman for 2008 - 2009. Other ACIT Officers elected are Vice Chairman Mark Lincecum of Puffer-Sweiven; and Secretary/Treasurer Cherie Laughlin of Bayer Material Science. ACIT also elected the following new Board members:

     Bobby Massengale - The Mundy Companies
     Mike Van Der Snick - Equistar Chemicals, LP
     Donald Comer - Nalco Chemical Co.
     Steve Barre - Huntsman - Port Neches Site
     Wayne McDowell - Chevron Phillips Chemicals - Orange Site
     Mike Morton - Securitas Security Services USA, Inc.
     Janet Capuzzi - Wilson Supply

Kathleen Hartnett White Receives TCC Texas Leadership Award
Former TCEQ Chairman, Kathleen Hartnett White, was presented with the 2007 TCC Texas Leadership Award at the TCC / ACIT Annual Meeting in Houston, Texas on October 18th. The award recognizes the outstanding achievement and dedication of individuals in their efforts to maintain a globally competitive environment for the chemical industry in Texas.

A native of Valentine, Texas, Kathleen White was appointed TCEQ Commissioner by Governor George W. Bush in October 2001 and was later appointed TCEQ Chairman by Governor Rick Perry in October 2003. Her term expired in August of this year. During her tenure at the TCEQ, she tackled every environmental issue imaginable - from water quality standards in the Bosque River, to the clean-up of scattered cathode ray TV tubes on a Texas highway, to brokering a resolution to the Mexican Water Treaty. Of most significance to the chemical industry was her tireless dedication to improving air quality in Texas with a sensible approach that balanced both business and the environment. Kathleen White presided over the TCEQ during a time when trends showed steady improvement in air quality, even with a growing economy and rapid population growth. Throughout her tenure, she supported efforts to implement attainable and reasonable air quality regulations in a manner that made the most sense for Texas. Arguably, some of Kathleen's main accomplishments go unseen, because what didn't happen under her watchful eye during her term at the TCEQ may be her most significant contribution to the environment and economy in Texas.

Kathleen and her husband, Beau, are co-owners of White Herefords in a 115-year-old ranching operation in Jeff Davis and Presidio counties. Prior to joining to the TCEQ in 2001, White was appointed to the Texas Water Development Board in 1999. She also sits on the board of the Texas Water Foundation and the Texas Natural Resource Foundation.

A writer and consultant on environmental laws, natural resource policy, and ranching history, Kathleen received her bachelor and master degrees from Stanford University. She also studied comparative religion at Princeton University and law at Texas Tech University. Kathleen was Director of Private Lands and the Environment for the National Cattlemen's Association in Washington, D.C. She has served as director of the Ranching Heritage Association, and was a special assistant in the White House Office of the First Lady Nancy Reagan.

TCC Committees Recognize Members for Outstanding Service
The TCC Outstanding Service Awards are bestowed each year by TCC Committees to members who make an outstanding contribution through their work on their committee(s). The awards are presented each year at the TCC/ACIT Annual Meeting. TCC owes much of its success to the hard work and dedication of its member company representatives who devote their time and effort on TCC committees which in turn direct TCC's involvement on legislative and regulatory issues.

Winners of the 2007 Outstanding Service Awards are as follows:

Air Conservation Committee - Russell Wozniak, Dow Chemical Company

Industrial Health Committee - Dr. Don Webb, M.D., DuPont

Occupational Safety Committee - Dr. David Womack, Bayer Material Science

Outreach Committee - Larry Rice, Syngenta Crop Protection

Water & Waste Management Committee - Tom Stang, Rohm and Haas, Inc.

Tax Committee - Steve Hazlewood, Dow Chemical Company

New TCEQ Commissioner, Bryan Shaw, Appointed by Governor Perry
Governor Rick Perry has appointed Bryan W. Shaw, Ph.D. as the newest Commissioner to the Texas Commission on Environmental Quality (TCEQ). Dr. Shaw is an associate professor in the Biological and Agricultural Engineering Department of Texas A&M University (TAMU) with many of his courses focused on air pollution engineering. The majority of his research at TAMU concentrates on air pollution, air pollution abatement, dispersion model development and emission factor development. Shaw is associate director of the Center for Agricultural Air Quality Engineering and Science, and formerly served as Acting Lead Scientist for Air Quality and Special Assistant to the Chief of the U.S. Department of Agriculture Natural Resources Conservation Service.

Shaw is a member of several committees for the U.S. Environmental Protection Agency (EPA) Science Advisory Board, including the Environmental Engineering Committee, Committee on Integrated Nitrogen, and Ad Hoc Panel for review of EPA's Risk and Technology Review Assessment Plan. Additionally, he is a member of the U.S. Department of Agriculture - Agricultural Air Quality Task Force.

Shaw received a bachelor's and master's degree in agricultural engineering from TAMU and a doctorate degree in agricultural engineering from the University of Illinois at Urbana-Champaign.

Governor Perry appointed Shaw on November 1, 2007 to fill the vacancy left by Kathleen White. Shaw's term will expire on August 31, 2013.

TCC Welcomes Dr. Shaw to the TCEQ and looks forward to working with him and his staff.

Texas Petrochemicals makes Donations Totaling $30,000
Texas Petrochemicals, Inc. (TPC) (TXPI.PK - news) recently hosted its second annual charity golf tournament benefiting the Cossaboom Family YMCA in Houston's East End and the Estelle and Allen Fetters Center in Groves, Texas.

Each organization received $15,000. The tournament raised nearly $20,000 thanks in part to supporting sponsors of the event, including Platinum Sponsors Austin Industrial, Invensys and Kirby Marine and Gold Sponsors Luminant, Air Liquide, USA Environmental, Burns & McDonnell, Fellon McCord, Celerity Engineering and Yokogawa. TPC contributed an additional $10,000.

Headquartered in Houston, Texas, Texas Petrochemicals Inc. is a premier chemical company with more than $1.5 billion in annual sales. Its products are sold to a wide range of performance, specialty and intermediate markets, including synthetic rubber, fuel additives, plastics and detergents. The Company has manufacturing facilities in the industrial corridor adjacent to the Houston Ship Channel, Port Neches and Baytown, Texas and operates a product terminal in Lake Charles, Louisiana. For more information, visit the Company's web site at www.txpetrochem.com.

Houston Regional Air Quality Task Force Report Released
On September 7, 2007, the Houston Regional Air Quality Task Force (AQTF) released its Report on Houston air quality. The AQTF is a diverse group of eighteen business executives, economic development executives, community leaders, environmental and health professionals organized to develop a comprehensive understanding of the state of air quality in the Houston region. The AQTF was appointed earlier this year by the Greater Houston Partnership (GHP) at the encouragement of Houston Mayor Bill White and mayors of surrounding Houston municipalities. The Task Force was formed in response to Mayor White's proposed nuisance ordinance, which was introduced in January 2007, the purpose of which is to attempt to locally regulate air emissions permitted by the Texas Commission on Environmental Quality (TCEQ). The AQTF established a goal to identify effective regulatory mechanisms and voluntary initiatives that could enhance air quality improvement efforts in the Houston region. The Task Force met on a regular basis for five months to understand the current air quality challenges facing the Houston region and to develop the principles for the Report. The final Report recommends that industry, government entities and educational institutions undertake certain voluntary initiatives intended to further the air quality improvements already made in the Houston region within the last decade.

Since its release, the AQTF Report has been endorsed by GHP, the East Harris County Manufacturers Association (EHCMA), the Economic Alliance and the mayors surrounding the City of Houston. However, Mayor White has withheld his support for the initiatives outlined in the Report. Despite the fact that industry is responsible for only 14% of the benzene emissions in the entire Houston region and the remainder of benzene emissions (approximately 80%) come from cars, trucks, off-road equipment and vehicles, Mayor White has publicly stated that he expects industry to solely shoulder the burden of reducing the Houston region's benzene emissions within the next six months. The looming threat to industry is passage of the proposed nuisance ordinance, despite the fact that it is in direct conflict with the Texas Clean Air Act.

The chemical manufacturing industry takes great pride in the environmental enhancements it has made throughout the State of Texas and will continue to build on those enhancements in the future through continued compliance with state and federal regulations.

For a copy of the AQTF Report, go to: http://www.houstontx.gov/environment/pdf/ghp-airqualityreport.pdf

EPA Proposes Lower National Standard for Ozone
On July 11, 2007, EPA issued a proposal to lower the National Ambient Air Quality Standards (NAAQS) for ozone (see 72 Fed. Reg. 37818-37919). Specifically, EPA proposed to revise the current 8-hour ozone standard of 0.08 parts per million (ppm) to a level within the range of 0.070 - 0.075 ppm, but possibly as low as 0.060 ppm.

EPA held public hearings around the country to receive oral testimony on the proposed lower ozone standard. TCC testified at the EPA hearing in Houston, Texas on September 5, 2007 and expressed its position that EPA should retain the current NAAQS of 0.08 ppm for ozone for the following reasons:

1) From a practical standpoint, the current standard should be achieved prior to a new standard being introduced;
2) Attainment in the Houston-Galveston-Brazoria nonattainment area is absolutely dependent on federal mobile source programs coming into fruition. Until such time as nitrogen oxide (NOx) reductions from mobile sources through federal programs are realized, EPA should not propose lowering the current 8-hour ozone standard; and
3) There are conflicting scientific studies and data that fail to support the assertion that the difference between the current standard and any proposed lower standard will result in a measurable improvement in public health.

Written comments on the proposed rule were due to EPA on October 9, 2007. TCC submitted written comments. TCC members may access those comments under the "Members" section of the TCC website at: www.txchemcouncil.org.

Texas House Speaker Issues Legislative Interim Study Charges
Texas House Speaker Tom Craddick issued Legislative Interim Study Charges for the Texas House of Representatives. Interim charges are items to be specifically studied by the legislative committees in preparation for the upcoming legislative session, which will convene in January 2009. We anticipate the release of the Senate interim charges in the next few weeks. During the upcoming year, the House and Senate committees will meet, hear testimony on the issues they were charged to study, and each committee will write a report based on its findings related to each charge. TCC will be actively engaged in this process throughout 2008. Of the 36 House Committees that received charges, we have identified the following House interim charges as having a potential impact on TCC member companies.

House Committee on Environmental Regulation

Work to create and maintain a market-based approach to the application and implementation of Green Chemistry initiatives for the State of Texas.
Evaluate capabilities at public and private universities relating to the potential formation of dedicated Green Chemistry programs.

Collaborate with businesses to identify current Green Chemistry efforts that are already taking place, as well as what the incentives and disincentives are for businesses to make this shift. Examine and identify the environmental and economic benefits of promoting Green Chemistry initiatives.
Examine funding options for a statewide Green Chemistry initiative.
Work with the various state agencies such as the General Land Office, the Railroad Commission of Texas, and the Department of Agriculture in order to facilitate the promotion of Green Chemistry practices.
Examine the obstacles that must be overcome for Green Chemistry to be effective; identify solutions to such obstacles.
Study the Clean Air Act State Implementation Plan (SIP) to determine if:

Data is being collected adequately;
Recent changes to the SIP are bringing Texas closer to federal Environmental Protection Agency (EPA) requirements; and
There are any midcourse corrections necessary to achieve EPA requirements.
As background, examine and document the trend in levels of air quality in Texas since 1980.

Examine the progress of the Texas Emissions Reduction Plan, the Low-Income Vehicle Repair Assistance, Retrofit, and Accelerated Vehicle Retirement Program and the Texas Environmental Research Consortium.
Study the air permitting process to examine, define, or interpret the following:

The role of public input in the standard air permitting process;
The requirements and interpretation of what constitutes Best Available Control Technology;
The requirements for monitoring ambient air in the beginning stages of the permitting process;
The requirements for modeling future air pollution in the event that the proposed plant is constructed;
The issue of the cumulative impact of different air pollution sources;
The use of permits-by-rule and flexible permits in some cases; and
The requirements for permit renewals and the process for granting or denying permit renewals.

House Committee on County Affairs

Examine recent attempts by municipalities to exert regulatory authority beyond city limits and extraterritorial jurisdiction. Evaluate the current relationship between and possible conflicts related to regulatory authority expressly given to state agencies by the legislature and regulatory authority delegated to home-rule municipalities. (Joint Interim Charge with the House Committee on Land and Resource Management)

House Committee on Regulated Industries

Research the effects of both wholesale and retail competition in the Texas electric market.
Monitor agencies and programs under the committee's jurisdiction, including identifying possible ways to merge or streamline agency functions to produce long-term financial benefit to the state and better efficiency of the agencies.

House Committee on Energy Resources

Examine whether the Railroad Commission of Texas should regulate carbon capture.
Discuss alternative energy sources and how best to incorporate them into our traditional energy sector. Also study the potential benefits of biofuels in Texas, including Texas feedstocks best suited for biofuel production and synergies between that industry and traditional energy sectors. Develop recommendations for facilitating the growth of the biofuel industry in a manner that best positions Texas in the national market.

Study the use of the Texas Economic Development Act since its enactment as HB 1200, 77th Legislature, Regular Session. Determine how the act may be enhanced to better attract significant capital investments by science and technology industries developing alternative energy sources. (Joint Interim Charge with the House Committee on Economic Development)

House Committee on Agriculture and Livestock

Study and evaluate the feasibility and potential economic impact of biofuel production from alternative feedstocks such as biomass, waste oils, and processed animal fats.

House Committee on Ways and Means

Monitor the receipts of the franchise tax.

House Committee on Local Government Ways and Means

Examine the system for appraising property for property tax purposes:

Study the implementation and effects of HB 1010, 80th Legislature, Regular Session.

Consider whether the statutory system for choosing the Central Appraisal District Board of Directors and governing the board's operation adequately protects the public interest.
Evaluate whether the authority of the chief appraiser should be limited.
Consider alternative methods and procedures for conducting the Comptroller's School Value Study to ensure both the equitable distribution of state school aid and a more stringent review of local appraisal practices.
Examine constitutional and statutory constraints on the enforcement of uniform appraisal standards across the state and the ability of the state to provide oversight of appraisal districts.
Consider ways to improve appraisal district efficiency, transparency and services, including, but not limited to, the reconfiguration of appraisal districts.
Evaluate changes in the property valuation appeal system that could expedite and reduce the cost of dispute resolution.

House Committee on Transportation

Study and make recommendations for funding mechanisms for the Rail Relocation Fund.

House Committee on Defense Affairs and State-Federal Relations

Study and make recommendations to address the need to identify essential personnel necessary to enter a disaster area to restore critical infrastructure.

House Committee on Business and Industry

Monitor the Texas workers' compensation system, and the continued implementation of the reforms of HB 7, 79th Legislature, Regular Session, by the Texas Department of Insurance and other state agencies. Specifically evaluate the recent decision by the Texas Supreme Court in Entergy v. Summers in terms of its impact on the system. (Joint Interim Charge with the House Committee on Insurance)

House Committee on Civil Practices

Study the cumulative effects of Texas civil justice reforms enacted since 2003, with particular attention toward effects on Texas job creation, judicial efficiency, medical access, and medical malpractice insurance rates.
Examine the effect on our tort system of meritless litigation filed in Texas, especially meritless litigation designed to harass Texans or intimidate Texans from exercising their rights. Consider the law in other states and consider whether Texas law should be amended to allow greater recourse, such as recovery of costs and other financial penalties, to reduce such litigation.
Monitor the effect of multiple plaintiff trials in tort cases, other than those concerning asbestos and silica, and recommend any statutory changes needed to increase judicial efficiency and ensure access to the courts for all plaintiffs.

House Committee on Judiciary

Examine the current Texas court system, including its complex layers of trial courts with overlapping and varying jurisdiction. Consider whether the system needs modernization to improve judicial efficiency.

House Committee on Redistricting

Consider the need for modifications to judicial districts in Texas.

House Committee on Natural Resources

Monitor ongoing efforts related to joint planning in groundwater management areas, including progress toward setting desired future conditions for aquifers. Examine and evaluate the process relating to an appeal challenging the approval of desired future conditions.
Monitor the implementation of legislation enacted by the 80th Legislature, including HB 3, HB 4 and SB 3; work in conjunction with legislatively created committees, such as the Environmental Flows Advisory Group, the Water Conservation Advisory Council, the Bexar Metropolitan Water District Oversight Committee, and the Joint Interim Committee on State Water Funding.

Review the Texas Commission on Environmental Quality fee structure for water programs and examine the scope of services being funded by such fees and the allocation of resources, including personnel to provide services on a timely basis.

House Committee on Public Health

Examine the status of asthma in Texas, and make recommendations to prevent asthma and to assist children and adults with asthma to more effectively manage their disease. Develop strategies for decreasing the direct medical and indirect related costs associated with asthma.

House Committee on State Affairs

Research and recommend the best ways to require governmental entities in Texas, both state and local, to develop reasonable investment strategies that will help the Texas economy and increase jobs and resources brought to the state.
Research the possibilities of including Texas manufacturing in the Invest Texas First/Buy Texas First Program.

House Committee on Economic Development

Study the performance of the Texas Enterprise Fund, the Texas Emerging Technology Fund, the Texas Economic Development Act, the Texas Enterprise Zone Program, and other economic development tools in promoting economic development in Texas, and recommend any needed statutory changes.

House Committee on Government Reform

Review a wide variety of state agencies with an eye to streamlining state government. Recommend the amendment or repeal of unnecessary statutory requirements, the deregulation of certain industries if in the public interest, and ways to implement agency efficiency recommendations identified by the Legislative Budget Board, the State Auditor's Office, and the Sunset Advisory Commission.

TCEQ Rulemaking Update
TCC is actively involved in the following proposed rulemakings at the Texas Commission on Environmental Quality (TCEQ):

Maintenance, Startup and Shutdown (MSS) Proposed Rule
TCEQ is currently undergoing a process to permit MSS emissions. Permit applications for MSS emissions for chemical plants are due to TCEQ on January 5, 2008. On November 2, 2007, TCC submitted written comments on the TCEQ Draft MSS Rule, which was posted on the TCEQ website on September 25, 2007. TCC members may access those comments under the "Members" section of the TCC website at: www.txchemcouncil.org.

TCEQ Enforcement Review
At the TCEQ Work Session on September 7, 2007, the Commissioners requested that the TCEQ Executive Director (ED) and his staff prepare a draft rule package on the Compliance History rule. The Commissioners concurred that the proposed changes to the current Compliance History rule concerning the site rating formula, repeat violators, nomenclature of classification, change of ownership, review of data and appeal of classification should be included in the draft rule package. With regard to the TCEQ's Penalty Policy, the Commissioners discussed and provided guidance on eight Penalty Policy issues. Those issues and the dialogue surrounding those issues are laid out in the marked agenda from that Work Session, which can be located at: http://www.tceq.state.tx.us/assets/public/comm_exec/agendas/worksess/marked/2007/070907.pdf.

Going forward, the proposed rule for the Compliance History changes is scheduled to be presented to the Commissioners at the January 16, 2008 Agenda Meeting. The adoption of the Compliance History rule is scheduled for the June 18, 2008 Agenda Meeting. The draft Penalty Policy is currently under review at the Deputy Director level. The Enforcement Division is also piloting the potential policy changes by applying them to past cases and comparing the results to the penalty amounts assessed with the current policy. TCEQ staff anticipates offering briefings to the Deputy Executive Director and ED in January on the draft Penalty Policy, after which time, the ED will provide guidance to the staff on how it should proceed going forward.

TCC will remain actively engaged in these issues as they evolve. If you have any questions, please do not hesitate to contact Christina Wisdom at wisdom@txchemcouncil.org or 512-646-6403.

Homeland Security Releases Chemicals of Interest for Anti-Terrorist Standards
On November 20, 2007, the U.S. Department of Homeland Security (DHS) issued its final rule revising the list of chemicals of interest (COI), which the DHS included as Appendix A to the Chemical Facility Anti-Terrorism Standards Interim Final Rule (see 72 Fed. Reg. 65395-65435). Appendix A lists chemicals of interest and screening threshold quantities (STQs). Any facility that possesses (or later comes into possession of) the listed chemicals in quantities that meet or exceed the STQ for any applicable security issue must complete and submit a Top-Screen. This will assist DHS in determining whether a facility presents a high level of security risk. The final rule does the following:

Adjusts the STQs for certain COI;
Defines the specific security issue or issues implicated by each chemical of interest, and in some cases, establishes different STQs for COI based upon the security issue presented; and

Adds provisions that instruct facilities on how to calculate the quantities of COI that they have in their possession.

These refinements to Appendix A will assist DHS in more precisely identifying facilities that may be designated as high risk, while reducing the burden on facilities that possess chemicals in smaller amounts.

The effective date of Appendix A to part 27, as added on April 9, 2007 (see 72 Fed. Reg. 17688) and revised by this rule, is November 20, 2007. Additionally, the regulations published in the Federal Register on November 20, 2007 are effective on that date.

TCEQ Agenda and Work Session Dates for 2008
The TCEQ has posted the following calendar for Agenda Meetings and Work Session for 2008:

Agenda Meetings
January 16, 30
February 8 - The Commission will only consider enforcement matters on this agenda date.
February 13, 27
March 19
April 2, 16
May 7, 21
June 4, 18

Work Sessions (all meeting times are from 9:30 - noon)
January 18
February 29
April 11
May 9

If you have industry news or would like additional information about our newsletter, please contact TCC Communications Director, Dan McGowan, at mcgowan@txchemcouncil.org.