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TOP TEN INDUSTRIES 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, until recent changes
"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? They are not 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 can 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 designed to reduce emissions from grandfathered
plants. The first, the Electric Deregulation Bill (SB 7), required grandfathered 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% by the same
time period. Utilities can either reduce emissions by themselves or trade for the reductions if another plant makes even
deeper reductions. Under this program, all grandfathered power plant facilities were required to apply for a special
permit and allowances were set for all plants. Preliminary results show major cuts have already occured. The second
piece of legislation, called SB 766, was a voluntary emissions reduction bill for non-utility grandfathered plants. Under
the legislation, plants can voluntarily seek a "voluntary emission reductions permit" to cut down emissions, and escape the prospect of a full permit. A year after the legislation went into effect, however, participating industries had only pledged a 3 percent reduction in emissions.
Based upon the low participation in the voluntary program for non-utility grandfathered facilities, the Legislature passed
groundbreaking legislation in 2001 which finally ended the era of the grandfathered facilities in Texas. Under HB 2912 --
which created major reforms in environmental legislation and changed the name of the TNRCC to the TCEQ, all
grandfathered facilities were required to apply for special permits and commit to emissions reductions. The four new
types of permits created by HB 2912 include existing facility permits, small business stationary source permits, EGF
permits, and pipeline facility permits. Those facilities not meeting the definition of a smal business that were located in
in East Texas had to apply for a permit by September of 2003, while those in West Texas had to apply by September of
2004, and make reductions depending upon the permit conditions by either 2007 or 2008 depending upon the area of
the state in which they are located. In addition, grandfathered pipeline facilities are required to reduce their annual
emissions rate of NOx by 50 percent in East Texas by 2007, while those in West Texas only have to reduce their emissions rate by 20 percent*.
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