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TOP TEN INDUSTRIES IN TEXAS WITH 99-100 PERCENT GRANDFATHERED
NITROGEN OXIDE EMISSIONS
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INDUSTRY
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TONS OF GRANDFATHERED NOX EMISSIONS
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NUMBER OF EQUIVALENT CARS IN NOX EMISSIONS
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Electric Utilities
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128,692 tons
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6,599,605 cars
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Gas Transmission
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47,217 tons
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2,421,403 cars
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Refineries
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41,332 tons
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2,119,588 cars
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Natural gas liquids
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36,762 tons
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1,885,221 cars
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Natural Crude gas processing
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35,708 tons
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1,831,184 cars
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Organic chemical plants
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27,311 tons
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1,400,557 cars
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Alcoa aluminum smelting
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19,905 tons
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1,020,780 cars
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Inorganic chemical processing
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7,612 tons
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390,386 cars
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Petroleum, coal products
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1,201 tons
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61,571 cars
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Paper Mills
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905 tons
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46,414 cars
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Source: Galveston-Houston Association for Smog Prevention and Lone
Star Chapter of the Sierra Club, Grandfathered Air Pollution: The Dirty Secrets of Texas Industries (Austin: Lone Star Sierra Club, April 1998), 24.
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Built before the Texas Clean Air Act went into effect in 1972, "grandfathered" facilities have
not had to install the same pollution control equipment or meet the same emission limits as facilities that have either been built or substantially modified since 1971. The
reason? Until recent changed, they have not been required to obtain an air permit from the TNRCC, which sets
best-available-control-technology emission requirements. This disparity -- where some industries and utilities produce their products in a cleaner way than others because of
increasing regulations -- means that grandfathered facilities have often enjoy a competitive advantage.
The then-TNRCC recently conducted a 1997 emissions inventory update and found that
grandfathered emission points released 350,000 tons of nitrogen oxides, 750,000 tons of VOCs, 250,000 tons of sulfur dioxide, 180,000 tons of carbon monoxide, and 13,000 tons of PM10.* This level was virtually the same as it had been from these facilities in a 1986 inventory. In contrast, permitted
facilities facing stricter regulations were able to reduce their emissions from 3 million tons of criteria pollutants in 1986 to 1.43 million tons in 1994.*
Another analysis by two environmental organizations in Texas found that there are 1,020 "heavily" grandfathered plants
in Texas. These plants emit 37 percent of all air emissions from industrial plants and contribute as much nitrogen oxides as 18.4 million cars.* Most of the emissions from grandfathered units occur at major oil and gas production and
refining facilities and electric utility plants. Of special concern are areas like Houston and Beaumont that do not meet
clean air standards for ozone and yet are impacted by VOC emissions from grandfathered facilities. For example, one
analysis showed that 75 percent of emissions of VOCs statewide came from grandfathered units and units with standard exemptions from permitting requirements.* The analysis revealed that requiring the best available control
technology at these emissions sources in the Houston area could cut VOC emissions by 5,400 tons per year -- about the
same amount as Houston is trying to cut from automobiles through the Inspection and Maintenance Plan.*
In 1999, the Texas legislature adopted two pieces of legislation which began to help reduce emissions from
grandfathered plants. The first, the Electric Deregulation Bill (SB 7), required grandfathered electric generating utilities
to seek permits by September of 2000 and cut emissions of NOX by approximately 50% by September 1, 2003 and
Sulfur Dioxide by 25% during the same time period. Utilities could either reduce emissions by themselves or trade for
the reductions if another plant makes even deeper reductions. The second piece of legislation, called SB 766, was a
voluntary emissions reduction bill for non-utility grandfathered plants. Under the legislation, plants could voluntarily seek
a "voluntary emission reductions permit" to cut down emissions, and escape the prospect of a full permit. They had to apply for the permit by 2001, however, and a year after the legislation went into effect, however, participating industries had only pledged a 3 percent reduction in emissions.
Environmental organizations instead called for an obligatory permitting program for all remaining grandfathered plants.
In 2001, the Texas Legislature finally adopted legislation ending the grandfather loophole. Under the adopted
legislation, grandfathered plants throughout the state will have to apply for permits by September 1 of 2003 if they are
located in East Texas and by September 1, 2004 if they are located in West Texas and make emission reductions as
per their permits by 2007 and 2008. In addition, the provisions of the legislation created a special permit for
grandfathered pipeline facilities, and specified a 50% reduction in emissions from pipeline facilities in the East Texas region and a 20% reduction from those in West Texas.
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