Energy and Petrochemical Companies Define Plans to Clean Up Texas Skies as EPA Releases Final Rule on Ozone Nonattainment Areas

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). On April 15, 2004, the Environmental Protection Agency (EPA) announced its final rule designating and classifying areas not meeting the National Air Quality Standard for 8-hour ozone. Some 474 U.S. counties in 31 states fell into this category or as the EPA puts it are in "nonattainment". Nonattainment areas are classified into five categories (marginal, moderate, serious, severe, or extreme) depending on the severity of monitored ozone in those areas. The EPA has defined the National Ambient Air Quality Standard (NAAQS) for ozone, otherwise known as the 8-hour ozone standard, as being 0.08 parts per million (ppm) of ozone averaged over eight hours. What the government is telling us is that air in these 474 counties is unhealthy to breathe, because ozone levels exceed 0.08 ppm, and that these states will be required by law to reduce emissions of ozone causing pollution. This will be achieved through legislation and enforcement of stricter controls on industrial facilities, additional planning requirements for transportation sources, and vehicle emissions inspection programs.

The responsibility for emissions reduction will largely fall on the shoulders of the industrial community and the transportation practices of taxpayers. An EPA document states, "Ground-level ozone forms when emissions of nitrogen oxides (NOx) and volatile organic compounds (VOCs) "cook" in the sun. Sources of these pollutants include cars and trucks, power plants, refineries, and other large industrial facilities, and some natural sources."

It is now up to the individual states to come up with plans to implement these rules. Known as State Implementation Plans (SIP), states must submit their plans to EPA within three years. In Texas, that falls on the shoulders of the Texas Commission on Environmental Quality (TCEQ), formerly know as the Texas Natural Resource Conservation Commission (TNRCC).

In Texas, the EPA has designated 23 counties as being in nonattainment of the standard. This includes two nonattainment areas classified as moderate, which means they have to reduce emissions to below 0.08 ppm ozone by June 2010, and includes the Houston/Galveston area counties of Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, and Waller and the Dallas-Fort Worth area counties of Collin, Dallas, Denton, Ellis, Johnson, Kaufman, Parker, Rockwall, and Tarrant.

Click on the image at right to view the Texas Nonattainment Area Environmental Projects List.

It is no surprise that the Houston/Galveston area, with its large petrochemical, energy, and industrial manufacturing infrastructure will bear the brunt of future area emissions reduction programs laid out by the federal and state government. In fact, over the past year, Industrialinfo.com has researched 44 environmental emission reduction projects representing greater than $1.1 billion in capital spending at Texas industrial plants located in the 23 nonattainment counties. The leader is, of course, Harris County with close to 54% of the projects. Most of the projects are taking place at power plants, refineries, or petrochemical complexes and will focus on the addition of emission controls, such as SCR, scrubbers, baghouses, and boilers to reduce NOx emissions.

The Beaumont/Port Arthur nonattainment area, which includes Hardin, Jefferson, and Orange counties is classified as marginal and must improve air quality by June 2007. In Orange County, Entergy Gulf States (Beaumont, Texas), a division of Entergy Corporation (NYSE: ETR) (New Orleans, Louisiana) is planning a $25 million NOx reduction project (PEC 01009583) at the Sabine power station (Plant 1001024). Entergy has already spent millions on NOx reduction projects in Texas. For details see archived September 22, 2003, IIR Industry Alert: Entergy's Texas Power Plants Complete NOx Emissions Reduction Projects.

The San Antonio area, which includes Bexar, Comal, and Guadalupe counties is classified as basic and must clean up by December of 2007. The San Antonio City Public Service Board, which operates the JT Deely (Plant 1000169) and JK Spruce (Plant 1001521) coal-fired power plants in San Antonio, Texas, is planning more than $300 million for NOx, SO2, and mercury reduction programs at those plants.

In addition to the large NOx and VOC emissions sources found at coal-fired power plants and petroleum refineries, states, in conjunction with industry, are developing programs for specific pollutants in areas where petrochemical production is concentrated, such as the Baton Rouge, Louisiana, or Houston/Galveston areas. New programs are targeting the reduction of HRVOC (Highly Reactive Volatile Organic Compounds) emissions. This affects source plants that produce, have as a feedstock, or emit HRVOCs, which includes; 1,3-butadiene, butene isomers, beta-butylene, ethylene, and propylene.

Watch Industrialinfo.com for future articles on HRVOC. For a complete project listing including contact and projects details contact Industrialinfo.com's Member Center at 1-800-762-3361.