President’s Message: TCEQ Sunset Bill Passes Texas House

TCC President & CEO Hector L. Rivero

The TCEQ Sunset Bill has crossed its first major hurdle.  The legislation (CSHB 2694) which reauthorizes the Texas Commission on Environmental Quality (TCEQ) recently passed the Texas House of Representatives.

The debate on the House floor over the TCEQ sunset bill took several hours as there were over 40 amendments filed to the bill.  The bill has several key elements that are important to the Texas chemical industry.

First, it reauthorizes the TCEQ for another 12 years.

Second, the bill makes some important and long-sought changes to the agency’s compliance history program.  Notably, it limits the use of Notices of Violation in the escalation of penalties and puts a statutory cap on the percentage by which a final penalty may be enhanced.  Overall, the compliance history portion of the bill reflects changes sought by House Environmental Regulation Chairman Wayne Smith (R-Baytown) for the past three legislative sessions.  The bill “brings predictability and consistency to the enforcement process,” according to Chairman Smith.  All other suggested changes to the compliance history language were defeated, including an effort by Rep. Jessica Farrar (D-Houston) to allow criminal convictions by a local government based on compliance history. 

During floor debate, House members rejected an amendment by Rep. Ron Reynolds (D-Missouri City) that would have changed the TCEQ’s mission to include “the protection of human health and the environment” and would require the mission statement to be placed in statute. The agency’s current mission is “to protect our state’s human and natural resources consistent with sustainable economic development.”  The defeat of the amendment was led by Rep. Dennis Bonnen (R-Angleton).  During the debate, Rep. Bonnen fought off the amendment by explaining that it would serve as a vehicle for future lawsuits by opening a new cause of action for tort actions related to human health.

The House approved an amendment by state Rep. Warren Chisum (R-Pampa) to streamline the regulatory process by shifting the burden of proof in contested case hearings at the State Office of Administrative Hearings (SOAH), requiring the TCEQ Executive Director to participate in contested case hearings at SOAH, making necessary changes to the discovery process in contested case hearings, and preventing state agencies from contesting permits issued by TCEQ.

Under current law, the burden of proof in a contested case hearing is on the permit applicant.  Rep. Chisum argued that the change is needed so that power plants and other facilities do not experience so much delay in the permitting process that they choose to invest in states outside of Texas. 

“It levels the playing field,” Chisum said. “Too many times these contested case hearings have just been to not do anything else but extend the permit process until [applicants] just virtually have rolled up their stuff and left,” he added.

Rep. Lon Burnam (D-Fort Worth) offered several unsuccessful amendments, including one to require the agency to consider an in-depth of review of economic benefit in the assessment of penalties during the enforcement process.  Another failed Burnam amendment would have only continued TCEQ for 6 years, instead of the preferred 12-year reauthorization.

TCC congratulates several people who were instrumental in passing this legislation through the House:

Texas Congressmen Highlight Texas Clean Air

Four Texas Congressmen – U.S. Reps. Joe Barton, Kevin Brady, Pete Olson, and Ted Poe – visited the Houston Ship Channel last week to take a firsthand look at the latest environmental protections being deployed in the area. 

The visit included a demonstration of several pieces of high tech, mobile air quality testing equipment being used by the Texas Commission on Environmental Quality (TCEQ) and briefings by industry leaders, including TCC’s Vice President and General Counsel Christina Wisdom.

Reps. Barton, Brady, Olson, and Poe are members of the Texas EPA Task Force, which is a group made up of federal and state officials who are on the front lines of protecting Texas from the job-destroying, over-regulation of the U.S. Environmental Protection Agency (EPA).

The lawmakers are concerned that the Obama Administration may be targeting Texas because it is a Republican stronghold.

The event included a short tour of latest mobile air monitoring equipment and an explanation of its capabilities by TCEQ officials.  The Congressmen heard from industry representatives about the affect of overbearing EPA regulations on jobs in the Houston area.  Each made brief statements about the EPA’s attack on Texas then took questions from the assembled news media.

Eastman’s Mark Bogle Appointed to TCC Executive Committee and as Chairman of Outreach Committee

TCC Chairman Rick Roberts (Chevron Phillips Chemicals) has named Mark Bogle of Eastman to the TCC Executive Committee and as the new Chairman of the TCC Outreach Committee.  Bogle succeeds John Harvey who retired from INEOS earlier this spring. 

Mark Bogle is the Vice President and General Manager of Eastman Chemical Company Texas Operations, based in Longview, Texas.  Bogle started his professional career at the Eastman Longview site in 1981 and has since served Eastman in many capacities across the United States and around the globe.

“Mark has been an outstanding member of the TCC Board of Directors,” said Chairman Roberts.  “I’m delighted that he has agreed to serve as Chairman of our Outreach Committee and he will be a valuable addition to the TCC Executive Committee.”

The TCC Outreach Committee is charged with promoting awareness of the many contributions of the Texas chemical industry.  This includes outreach and interaction with stakeholders, coordinating educational outreach opportunities, and coordinating community awareness regarding emergency response, pollution prevention, and site security.

Please join us in congratulating Mark Bogle on his appointment as the new Chair of the TCC Outreach Committee.

Business Roundtable Urges Obama to Abandon GHG Regulations

The Business Roundtable, a group of chief executives officers from large American companies has urged the Obama administration to abandon efforts to regulate greenhouse gases.

The Washington-based association wants President Barack Obama’s Environmental Protection Agency (EPA) to scrap the rules for power plants and oil refineries, giving Congress time to craft legislation.

The EPA rules are “an example of damaging regulatory overreach that threatens to stifle U.S. economic growth and job creation,” Thomas Fanning, CEO of Atlanta-based Southern Co., a Roundtable member and the biggest U.S. utility owner by market value, said in the group’s statement.

The Chamber of Commerce, the biggest U.S. business lobbying group, Republican lawmakers and some Democrats also have called for blocking or delaying the EPA rules. White House aides said in a statement last month that they would recommend that Obama veto any legislation stripping the EPA of its power to regulate carbon-dioxide pollution under the Clean Air Act.

The EPA began regulating carbon emissions in January after Congress failed to pass legislation last year.  The first phase of the agency’s limits on greenhouse gases began in January. The rules require industrial sources to apply for state permits if they build or expand operations. Existing facilities aren’t affected.

While the Republican-controlled House of Representatives passed legislation that would bar the EPA regulations, a similar measure failed in the Democratic-led Senate in a 50-50 vote.

EPA: 2009 GHG Emissions Lowest Recorded Since 1995

Fewer greenhouse gases were emitted in 2009 than any year since 1995, the Environmental Protection Agency (EPA) said last month.

The EPA found that greenhouse gases emitted in the United States during 2009 decreased by 6.1 percent as compared to those emitted in 2008.
 The 2009 emissions data – included in EPA's annual greenhouse gas inventory – represent the lowest annual U.S. greenhouse gas emissions since 1995.

Congressman Ted Poe: EPA Regulations Strangling America

Congressman Ted Poe

Right now, someone is sitting at a large oak table in the EPA’s marble palace in Washington, D.C., sipping a vanilla latte and dreaming up a new rule to impose.
 
Without fail, the EPA continues to come up with ideas that leave you scratching your head in wonderment because of the questionable science used to justify these regulations.  Instead of protecting the environment, these rules dreamed up by the EPA in Washington are destroying American industry and killing job creation, which is just what our economy needs right now.  This type of federal meddling is exactly what causes companies to lay off workers, move overseas, and in many cases, fail.  The purpose of the Environmental Protection Agency is to protect the environment—not to regulate American industry into nonexistence.

The EPA’s blatant disregard of the fragile state of our economy is alarming.  Businesses in the United States already are operating in an environment of uncertainty, which makes investors hesitant to invest in American businesses.

The EPA’s efforts to force companies to comply with its expensive (and many times environmentally unnecessary) regulations will inevitably increase the cost for businesses, and accordingly consumers, and destroy job growth.  If the EPA continues on its crusade of destruction and over-regulation, manufacturing and energy companies will take their business to friendlier lands overseas, jobs will be destroyed, and the environment will not be any better off.

In the name of saving us from ourselves, the EPA continues to abuse its power.  The mother of all mandates is the proposed cap-and-trade regulations.  Houston is the energy capital of the world, and my area of southeast Texas is home to more energy companies and facilities than almost any other location in the United States.  What I hear most often from the businesses that supply the energy that our country demands is that these questionable regulations will significantly increase costs that make doing business in the U.S. too difficult.

This type of over-regulation will crush the economy and put thousands of people out of work.  What makes the EPA’s proposed regulations most disturbing is that Texas has been successful on its own in ensuring clean air through the Texas Commission for Environmental Quality.  Despite Texas’ own progress, the EPA is looking for more to control, arrogantly ignoring the will of the people and the will of Congress.

The American people have rejected the EPA’s cap-and-trade regulations overwhelmingly, and this month, the House of Representatives passed the Energy Tax and Prevention Act that would prevent the EPA from regulating greenhouse gasses (i.e., carbon dioxide).  Of course, this caused the fear-mongerers to scream that we don’t care about the environment. What was left out of their talking points is that this legislation does not prohibit the EPA from regulating those hazardous pollutants that are harmful to public health.  We await the Senate's action on this bill.

The EPA’s assault on our economy and state does not stop there.  It wants to control what kind of light-bulbs Americans use, how much power the utility companies generate, the “particulate coarse matter” – more commonly known as dust found on farms and ranches, how much water we have in our toilets, and one of the newest ones:  What kind of anti-bacterial soap we use to wash our hands. That’s right, the EPA’s overstepping of authority now touches almost every aspect of our lives. 

So, if you’re a mom who has been using the same soap for years to protect your children from spreading germs, sorry.  You need to go to the pharmacy and buy some new “improved” EPA-authorized soap.  While you’re there, you should pick up a box of only-Made-in-China compact fluorescent bulbs – because thanks to the EPA – incandescent bulbs will be banned by 2014.

Despite the unconstitutionality of government controlling every aspect of our lives, we’re left without any grounds for why this nanny state is needed.  The EPA has not adequately defended its destructive policies.  Recently, the EPA has chosen to miss several Capitol Hill hearings.  My colleague Joe Barton fairly referred to them as the “Evaporating Personnel Administration.”

But when the EPA has actually chosen to show up for a hearing, what Congress has heard from its administrators is worrisome.  This month, EPA Assistant Administrator Mathy Stanislaus testified before the House Environment and Energy Subcommittee.  Congressman Cory Gardener (R.-Colo.) asked Administrator Stanislaus whether the EPA took job creation into account when it analyzes new regulations.  This simple question sent Stanislaus on a five-minute-long frenzy, where he let it slip that the EPA could care less about job creation.  Apparently, the EPA comes up with regulations in the marble palace without considering the effect that its policies will have on job creation.  You can’t make this stuff up.

The reality is that the EPA policies are driving up energy costs at a time when gas is nearly $5 a gallon, destroying jobs when unemployment is hovering at 8%, and sending companies overseas at a time when investment in America is at a low.  Many of these regulations – such as regulating dust on farms – just make no sense.  It is understandable, but not defend-able, how someone who does not set foot out of his marble palace might think that dust on farms should be regulated.  This just shows how disconnected some people in Washington really are, coming up with rules based on no science or knowledge.  This is why the Constitution does not give the government the power to decide what kind of light bulb you use.

The pure absurdity of the ridiculous and expensive federal regulations is what makes normal Americans all across our country so frustrated with Washington, D.C.  The regulators sitting at the table in the marble palace are out of touch with America.  The EPA needs to do its job – protect the environment – and get out of the way of American businesses and job creators.

And that’s just the way it is.

Congressman Ted Poe represents the 2nd Congressional District of Texas. Prior to serving in Congress, Poe was a prosecutor and judge in Houston, Texas for 30 years.

Industry Groups Call for Stay of EPA Boiler Rules

A coalition of industry groups has urged the Environmental Protection Agency (EPA) to put air emissions regulations for industrial boilers on hold while the agency reconsiders the rules.

The industry groups – including the American Chemistry Council, the National Association of Manufacturers, and the American Petroleum Institute – say companies should not be required to comply with the regulations until after the reconsideration period is complete.

“EPA is reconsidering major portions of these rules, and businesses should not be asked to comply until final requirements are clear,” American Chemistry Council President Cal Dooley said in a statement. “Otherwise, businesses could spend millions, if not billions, to comply with rules that may change.”

EPA issued its final boiler regulations in February under a court-ordered deadline. The rules require that boilers and incinerators install “maximum achievable control technology” (MACT) to reduce harmful emissions. The agency says the regulations will prevents thousands of deaths and heart attacks at a reasonable cost to industry.

The boiler regulations have come under fire from Republicans and some Democrats, who say they will impose major costs on industry — one of a series of attacks on EPA regulations in recent months.

EPA revised its draft standards, issued last year, after industry groups said the regulations were unworkable. Since the final rules differ so much from the draft rules, EPA opened up a reconsideration period in which the public can comment on and review the final standards.

In a petition for an administrative stay on the regulations, the industry groups say the agency should halt requirements that companies comply with the boiler rules during this reconsideration period.

“A stay will give manufacturers the certainty they need,” Alicia Meads, director of energy and resources policy at the National Association of Manufacturers, told reporters. “Facilities won’t have to work on complying with the new regulations while the reconsideration process is going on.” Meads said the reconsideration period could last as long as a year.

Texas Manufacturing Activity Increases but at a Slower Pace

Texas factory activity continued to expand in April, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, moved down from 24 to 8, suggesting slower growth in output.

Other measures of current manufacturing activity remained positive but retreated from their March levels. The capacity utilization and shipments indexes declined to readings of 10 and 8, respectively. The new orders index was positive for the sixth consecutive month, although it decreased from 14 to 4 in April. Downward movement in the indexes for current activity was largely due to a rise in the share of manufacturers reporting decreases in these indicators.

Respondents noted continued improvement in the broader economy as indexes reflecting general business conditions had positive readings for the seventh month in a row. The general business activity index was largely unchanged in April, coming in at a reading of 11. The company outlook index declined from 16 to 10, with a quarter of respondents saying their outlooks were improved from the prior month compared with 15 percent saying their outlooks had worsened.

Labor market indicators showed mixed movements in April. The employment index edged up from 12 to 13, its highest reading this year. Nineteen percent of manufacturers reported hiring new workers compared with 6 percent reporting layoffs. Hours worked were essentially flat in April after increasing for five consecutive months.

Prices and wages continued to climb in April. The raw materials price index held steady at a reading of 57, suggesting input prices rose at about the same pace as in March. The finished goods price index advanced from 17 to 24, its highest level since mid-2008. More than 60 percent of respondents anticipate further increases in raw materials prices over the next six months, while 37 percent expect higher finished goods prices. The wages and benefits index rose from 12 to 16, although the great majority of respondents noted no change in labor costs.

Future indexes of manufacturing activity were little changed in April, and all remained in solid positive territory. Future indexes for production and shipments moved up from their March readings. The future general business activity index held steady at 17. The future company outlook index came in at 25, down slightly from a reading of 27 in March.

The Dallas Fed conducts the Texas Manufacturing Outlook Survey monthly to obtain a timely assessment of the state’s factory activity. Data were collected Apr. 12–20, and 94 Texas manufacturers responded to the survey. Firms are asked whether output, employment, orders, prices and other indicators increased, decreased or remained unchanged over the previous month.

Survey responses are used to calculate an index for each indicator. Each index is calculated by subtracting the percentage of respondents reporting a decrease from the percentage reporting an increase. When the share of firms reporting an increase exceeds the share reporting a decrease, the index will be greater than zero, suggesting the indicator has increased over the prior month. If the share of firms reporting a decrease exceeds the share reporting an increase, the index will be below zero, suggesting the indicator has decreased over the prior month. An index will be zero when the number of firms reporting an increase is equal to the number of firms reporting a decrease.

ACIT Mid-Coast Region Hosts Economic Outlook Breakfast

The ACIT Mid Coast Region held its Economic Outlook Forum Breakfast on April 6th at the Dow Chemical facility in Freeport.  115 attendees heard from panelists Gary Freiburger of ConocoPhillips, Laura Ambrose of Dow Chemical and Chris Witte of BASF. The panel shared insight into capital and maintenance projects planned at their sites for the coming year.  Thanks to our sponsors:

ACIT South Texas Region Holds Political Forum Luncheon

More than 135 attendees heard from candidates for mayor and city council of Corpus Christi at the ACIT South Texas Region’s Political Forum and Luncheon on April 20th at the Flint Hills facility in Corpus Christi.  Jim Lago of Clear Channel Radio Station KKTX served as moderator for the forum.  Mayoral candidates were Carolyn Moon and Joe Adame who both were given the opportunity to share their views with the attendees.  Also participating were candidates for Corpus Christi City Council At-Large District, District 2 and District 3.

Guests included members of the Corpus Christi Chamber of Commerce, Port Commissioner Bernard Paulson, Mayor David Krebs from the City of Portland, and representatives from the Coastal Bend Bays & Estuaries and Port Industries of Corpus Christi.  TCC and ACIT members from the region included Air Liquide, Celanese, CITGO, EPSCO, Hagemeyer, LyondellBasell, The Mundy Companies, NuStar Energy and Repcon. 

Thanks to our sponsors:

ACIT Houston Ship Channel Regions Holds Clay Shoot

The ACIT Houston Ship Channel hosted 125 shooters its Clay Shoot on April 21st at the American Shooting Center in Houston.  1st place winners left to right were Randy Boeding of Noltex, Rock Houstoun of Insurance Alliance, Mark Williams of Foster Wheeler, Jim Cattan of Winzer Corporation, not pictured is Cy Cattan of Sound Financial Solutions.  ACIT Board member Steve Barre of Huntsman won the shoot-off and the grand prize: a Benelli shotgun.  Thanks to our sponsors:

Upcoming TCC & ACIT Events

May 12th – ACIT Houston Ship Channel Crawfish Boil. Click here for details.

May 13th – ACIT Golden Triangle Golf Tournament. Click here for details.

June 6-9th – TCC/ACIT EHS Seminar at Moody Gardens in Galveston.  Please visit http://ehs-seminar.com/ to register.

June 24th – ACIT South Texas Region Golf Tournament. Click here for details.

June 28th – ioMosaic is hosting a Facility Siting Workshop in Houston.  Click here for more information.
 
August 18-19th - SMRP MaRS Conference is requesting panelists for day two of their seminar.  Click here for more information.
 
August 19th – ACIT Mid Coast Golf Tournament. Details to follow.

September 7th – ACIT South Texas Reverse Trade Show. Details to follow.

All 2010 TCC and ACIT events are now listed on the website.
 

Upcoming Member Events

For a listing of TCC & ACIT Member promotions and events, please click here.
(These events are not organized or endorsed by TCC or ACIT.)