As Texas Republican leaders continue their drumbeat against what they say is federal overreach by the Obama administration, the Environmental Protection Agency remains a primary target.
Attorney Generalย Greg Abbott, a candidate for governor, has trumpeted the state’sย multiple lawsuitsย targeting the agency, and other candidates for statewide office are also pledging to protect Texas from what they see as encroachment by the EPA.
But a new law that comfortably passed the state Legislature this year reflects a different reality โ that Texas businesses have to live with climate change regulation, regardless of the politics.ย House Bill 788ย orders the state to regulate emissions of greenhouse gases. It had the support of many of the companies that needย permits related to greenhouse gas emissions from theย Texas Commission on Environmental Quality to expand or construct facilities.
Before HB 788, the state agency said it did not have the legal authority to issue such permits, leaving dozens of energy companies in limbo waiting for the EPA to issue the necessary permits instead.
โIโve lost $90 million worth of revenue in a year waiting for this that I will never recoup,โ Michael A. Heim, president ofย Targa Resources, an energy services company, said in March, testifying in favor of the measure. Heim had waited more than a year for two permits for facilities that would require investments of more than $500 million.
โSo weโre basically sitting here ready to spend the money, create the jobs, but we donโt have a permit to even start turning dirt,โ he said.
A few months after Heim’s testimony, the EPA issued one of the permits, for a new natural gas processing plant in Wise County. The agency is still working onย applicationsย for more than 50 other facilities in Texas.
There was minimal debate on theย three-page bill, which wasย supportedย in testimony by a group of strange bedfellows โ including representatives forย Koch Industries, theย Texas Conservative Coalitionย and the Sierra Club.ย The ironyย was not lost on the billโs author, Rep. Wayne Smith,ย R-Baytown.ย
โThis is not a statement about climate change,โ Smith told fellow lawmakers in March. โThis is about efficiency for business. So Iโm not making any statement that has anything to do with greenhouse gases and climate change.โ
Smith’s district is home to many petrochemical companies who pushed for the bill.ย He did not respond to requests for comment for this article.
Sen. Juan “Chuy” Hinojosa, D-McAllen, who sponsored the bill, said the state should have agreed to the regulations years ago.
โQuite frankly, it hurts businesses,โ Hinojosa said of Texasโ lawsuits and adversarial relationship with the EPA. โIt doesnโt help them. And this is a good example of that.โ
Last month, a federal judge dismissed one such suit, in which Texas had sued the EPA for taking over greenhouse gas permits after the state refused to do so itself in 2010. The judge said the suit had no standing because the EPA was simply trying to help businesses get the needed permits.
โThatโs the irony of ironies here,โ said Jim Marston, director of theย Environmental Defense Fundโs Texas office. โEPA stepped in, actually to make it easier for industry.โ
โIndustry will say, explicitly, โWe need certainty more than anything else,โ” Marston said. โAnd what Attorney General Abbott has given them is uncertainty.โ
Industry representatives were not willing to go that far.
โWe have always been in favor of the State of Texas issuing these permits, because we just anticipated delays in projectsโ if the EPA had to issue them, said Celina Romero, a lawyer for theย Texas Pipeline Association.
But asked if the associationโs members were frustrated that the state would not cooperate earlier, she declined to comment.
Abbott and the state environmental agency say the EPA gave states an unfairly short time for developing the new permit rules.
The accelerated timeline โgives room for argumentโ that the state was wronged, said David Spence, a professor of business and law at the University of Texas at Austin. Still, he said, the requirements did not come out of nowhere. The Bush EPA believed it did not have the authority to regulate greenhouse gases, he noted. It was the Supreme Court that indicated it should do so in 2007.
Nonetheless, of all the states, โonly Texas said, โWeโre never going to regulate greenhouse gases,โโ Spence said. โI guess everyone can draw their own conclusions over whether thatโs a prudent interpretation of the law, or just political posturing.โ
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