©Kim Christensen
Lee College Economic Alliance event in Pasadena 2017
Lee College Economic Alliance event in Pasadena 2017 (Photos by ©Kim Christensen)
From left, Texas Chemical Council President Hector Rivero, Texas Commission on Environmental Quality Commissioner Toby Baker, American Chemistry Council President Cal Dooley and U.S. Rep. Larry Taylor (R-TX) discuss industry regulations. Photo credit: Economic Alliance Houston Port Region.
Texas Chemical Council President Hector Rivero has observed "a positive change" that has occurred under the Trump administration: a regulatory change that is helping Texas industry become more globally competitive. And he's not alone in that assessment.
The most dramatic shift, according to Texas Commission on Environmental Quality Commissioner Toby Baker, is improved communication with the EPA.
"We talk to the EPA on a daily basis," he said. "They pick up the phone and say, 'Hey, Texas, you have the largest petrochemical complex in the United States. What do you think about this? How does this impact you?'"
Baker added improved interaction with the EPA, particularly in the aftermath of Hurricane Harvey, is a sober reminder of the essential duties regulators are required to fulfill.
"It is about public health, public safety, protecting the environment and making sure the economy gets up and running as quickly as possible," Baker said. "It's not about being activists. It's about doing the job and doing it well and making sure that we can get the public, in this case, back to their normal lives as quickly as possible."
Rivero and Baker made their remarks on an expert panel discussing regulatory impacts on industry at the Economic Alliance Houston Port Region's annual Gulf Coast Industry Forum held recently in Pasadena, Texas.
Co-panelist and American Chemistry Council President Cal Dooley agreed with Baker regarding an improved level of communication with the Trump administration and noted Texas and the Gulf region are "ground zero" for an unprecedented era of growth in chemical manufacturing in the U.S.
"We've gone in the last 10 years from being one of the highest-cost manufacturers of chemicals globally to now being among the lowest because of natural gas and hydraulic fracturing," he said.
The shift has resulted in an unprecedented flood of new capital investment coming into the U.S. - approximately $185 billion, with the Gulf region accounting for about 70 percent of that, Dooley said.
Regulatory certainty encourages investment
"One of the things that is so critical to the flow of investment is having regulatory certainty," Dooley continued. "Under this administration, they are making it clear that we can respond to the appropriate environmental priorities that are important to people."
Dooley said maximizing development of energy resources and natural gas and being environmentally responsive are not mutually exclusive.
"We also have an opportunity with this new administration to make progress to complement our competitive advantage from a feedstock and manufacturing basis to develop the world's most competitive regulatory environment," he added. "A regulatory environment that gives us certainty will encourage the flow of capital investment in manufacturing and ensures we have the regulatory construct that places the chemical industry on the forefront of innovation."
U.S. Rep. Pete Olson (R-TX), who represents the Lone Star State's 22nd District, echoed his co-panelists' statements and emphasized the importance of effective regulations.
"Texas has actually improved our air quality while we are growing the industry," he said. "A lot of people think the only way you can improve or clean the air is to shut down. Obviously that doesn't work if you're trying to take care of people and at the same time provide good jobs and a good economy for those people in the state. We've shown here in Texas that you can actually improve the quality of the environment at the same time you're growing industry, and I think that's a huge plus for us. I am very encouraged by what's going on."
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