President's Message
TCC Board of Directors Has Productive Meeting in Austin
Registration Opens for 2008 EH&S Seminar at Moody Gardens
TCC Promotes Christina Wisdom to Vice President and General Counsel
Seats Available for 2008 Science Teachers and Industry Course at University of Houston
Judges Select Winners in "Caring for Texas" Awards
Fact: Texas Air Is Clean and Getting Cleaner (a statement from TCEQ Chairman Buddy Garcia)
TCC Position Statement on EPA's Change in the 8-Hour Ozone Standard
Dow Named ENERGY STAR by EPA
Texas Petrochemicals Recognizes Employee Volunteers with Donations to Charities
DuPont Clean Technologies Facilities Help Refineries Reduce Environmental Footprints
Industry Experts Probe Solutions to Workforce Challenges in Golden Triangle

President's Message: Talking to your friends and family about the chemical industry

If you've worked even a little while in the Texas chemical industry, you know about our high safety standards and the economic benefits we bring to neighboring communities and school districts. But chances are, your friends and family who live away from you know very little about our industry, and what they've heard may be misinformation born of anti-industry propaganda or environmental hysteria.

So what do you say to the people in your life who know what you do for a living, but are uncomfortable about it, or worse, sold on the idea that it's something bad? You might look at it as a "teaching moment" - and take the opportunity to introduce them to the truths about chemicals and the companies that make them. Here are some examples of what you can say:

• The chemical industry is vital to the Texas economy and the economic life of its communities. About 75,000 people work in production jobs in the industry, and their work creates nearly a half-million other jobs for people who provide goods and services to the industry.
• Texas chemical companies pay more than $1 billion a year in taxes to school districts, cities, counties, state government and other authorities.
• Our industry's products make our lives healthier, more comfortable, and more convenient. The Texas chemical industry's products go into cars, planes, medicines, computers and cell phones. They help build and furnish homes and put clothes on our backs. In fact, most of the goods and comforts we take for granted wouldn't exist without the chemical industry.
• The chemical industry is committed to worker safety: you're three times safer working in a chemical plant than you are in any other type of manufacturing.
• The industry does a lot to protect the environment: for example, we use infrared imaging and other advanced technologies to detect and reduce emissions. Since 2001, industry in the Houston area has invested more than $3 billion to reduce emissions by 80 percent - while cars are just now starting to show emission technology improvements.
• Our air quality is getting better. As the chart at right shows, air emissions have dropped more than 54 percent since 1970. This has been achieved while U.S. population has grown 46 percent, national energy consumption has increased 49 percent, and vehicle miles traveled by Americans has gone up 177 percent.
• Texas chemical companies are good neighbors. Manufacturing facilities sponsor Community Advisory Panels (CAPs) that include nearby residents who meet with plant representatives to discuss a facility's operations and neighborhood concerns. Chemical workers participate by the hundreds in community-building projects such as Habitat for Humanity, Little League, and Meals on Wheels, and contribute millions of dollars each year to United Way.
• The Texas chemical industry is a great place to work, especially if you're a young person just starting out: the average wage for production workers is nearly $24 an hour, and the average industry salary is $75,000. Many high schools and colleges along the Coastal Bend work closely with the industry on vocational programs that funnel students into their first jobs as chemical workers. And because there's a worker shortage, most Texas chemical companies are hiring right now - not too common a situation in today's economy.

All of this adds up to a very good picture that unfortunately is not often portrayed in mainstream media, or reflected in the general public's perception. But you can become part of changing how people think about the chemical industry, just by sharing some of these messages with your family, friends, and neighbors. And if you need a closing line, try this: we wouldn't be the Great State of Texas without the chemical industry!

TCC continues to effectively represent the industry to legislators, regulators and media, TCC leaders were told during the Board of Directors meeting March 6 in Austin.

Convening in the historic TCC Boardroom that has welcomed hundreds of state lawmakers and political candidates, Board members affirmed reports charting TCC's course for 2008 and assessed challenges and opportunities facing the organization.

Greg Kraft of Alcoa opened the meeting as TCC's new Board Chairman. He acknowledged new Board member Gary Hockstra of Dow (replacing Bob Walker) and welcomed new ACIT Chair Cherie Laughlin of Bayer MaterialScience, who replaces Bob Kostelnik in that role. In other highlights:

• The Board presented the 2007 Legislative Leadership Award to Sen. Mike Jackson (R-La Porte) for his efforts on behalf of the Texas chemical industry.
• Several Board members praised TCC for delivering strong regulatory and legislative representation for the industry. Kudos also were given for the newly proactive communications that aims to make TCC a strong voice for the industry and its members.
• Buddy Garcia, chairman of the Texas Commission on Environmental Quality (TCEQ) was a guest of the Board and provided an overview of TCEQ priorities.

Also during the Board meeting, Houston businesswoman Nancy Li was honored by TCC and state leaders her efforts in organizing the La Porte Independent School District's Education and Cultural Exchange Program , which allowed 20 high school students, three teachers and a director of the La Porte Education Foundation to spend 12 days visiting China.

Li, executive vice president of Easton Resource Development, Inc., received a certificate from the State Senate and a Texas flag that in her honor had been flown over the state Capitol at the request of Sen. Mike Jackson, R-La Porte. The tokens of appreciation were presented by TCC President Hector Rivero and Don Empfield of Sunoco.

"Nancy Li brought China to La Porte, Texas," said Empfield. "The growth of the 'new China' is remarkable, especially with the petrochemical industry. Those who will serve our industry tomorrow have a new appreciation for the challenge that will be there for them."

Li's company is a leading educational specialist for customized programs involving cultural exchanges with China. It is headquartered in Houston.

Registration has opened for one of the year's best learning experiences - the TCC/ACIT 2008 Environmental, Health and Safety Seminar (EH&S), scheduled June 9-12 at Moody Gardens in Galveston.

Led by experts in all aspects of the chemical industry, the EHS Seminar is a unique, world-class opportunity to share lessons learned and tools that work. The program is planned and coordinated by volunteers from TCC/ACIT member companies and loaded with information-packed sessions and quality training programs, all at an affordable price.

This year's EH&S Seminar also offers an inaugural track on energy management, consisting of five sessions with ten speakers talking about how your company can reap the benefits of energy management here and now. Topics in the June 12 track range from improving what you have with low-cost efficiencies, to utilizing new technologies, to developing a world-class program and a culture that supports results.

Another new offering is a June 9 training workshop entitled "Introduction to Texas Environmental Regulations," which requires an additional fee. Other tracks and speakers can be viewed at http://ehs-seminar.com/index.php?option=com_wrapper&Itemid=29.

Online registration for the EH&S Seminar is available up to May 23 at http://www.ehs-seminar.com/. Single-day vouchers also can be purchased ahead of time and given to attendees without prior registration. Both the vouchers and registration make great safety incentives and rewards for employees!

The EH&S Seminar also welcomes exhibitors, who are encouraged to find more information at http://ehs-seminar.com/index.php?option=com_wrapper&Itemid=32. The deadline for exhibitor registrations is May 1.

Christina Wisdom has been promoted to Vice President and General Counsel of TCC after energetically serving the organization for the past two years as General Counsel and Director of Governmental Affairs. As Vice President, Wisdom will continue her responsibility for TCC's government affairs activities and will have a more active role assisting TCC President, Hector Rivero, in managing TCC's strategic planning, policy development, and administrative duties.

Wisdom was recently recognized as a "Texas Rising Star" for 2008 by Texas Lawyer and Texas Monthly magazines. This accolade is given to the top young lawyers of Texas in their field. Wisdom was one of two young attorneys receiving the award for Government Relations.

"Christina has exceeded everyone's expectations at TCC," Rivero said. "She has established herself as a trusted and effective voice for the chemical industry at the state Capitol and at the TCEQ as well. This, in addition to providing strong in-house legal resources for the Council and its members. Christina repeatedly delivers on every front, and is respected by allies as well as opponents."

Before joining TCC in 2006, Wisdom practiced in environmental law and legislative and government affairs for Brown McCarroll, L.L.P, a Texas law firm. There she represented corporations and municipalities on regulatory and compliance issues before the Texas Commission on Environmental Quality (TCEQ), Texas Railroad Commission, Public Utility Commission of Texas, U.S. Environmental Protection Agency and the Texas Legislature.

Prior to that, Wisdom worked as government affairs coordinator and PAC manager for Lyondell Chemical Company (now LyondellBasell), assisting corporate lobbyists and consultants, and researching and tracking legislation affecting the company. She also served as special assistant for U.S. Sen. Phil Gramm, R-Texas, whom she assisted in appointments, legislation and policy.

Wisdom holds a law degree from The University of Texas at Austin School of Law, and a bachelor's degree in political science from Southwestern University in Georgetown, TX. She is a member of the American Bar Association, the Austin Bar Association, American Cancer Society and Gateway Community Church.

Several slots remain open for the industry-acclaimed training course for public educators, "Science Teachers and Industry (STI) Learning about Chemicals and the Environment," which will take place July 13-25 at the University of Houston. Held in cooperation with TCC and ACIT, this course offers real-world instruction to science teachers of grades 5-12 on the technology behind the Texas chemical industry.

The program is led by Dr. Eugene Chiappetta, who has taught at the University for more than 30 years. An expert in methods and materials for teaching science in middle and secondary schools, Dr. Chiappetta emphasizes the chemical industry's concern for, and impact on, the health and safety of its workers, neighboring communities, and the environment.

During the 11-day program, teachers become students again for six hours a day, hearing from academic, government, and industry experts on a full range of environmental issues. They also participate in a broad spectrum of educational exercises, complete assignments, engage in a panel discussion, and tour chemical plants and waste disposal sites.

TCC and ACIT members are encouraged to contact any grades 5-12 science teachers they know to encourage their participation in the STI program. TCC started the program in 1990 as an opportunity for Texas educators to gain the knowledge enabling them to give their students a better understanding of the state chemical industry, and a balanced view on environmental issues. (ACIT has been involved with the program since 1994.) The program is supported with contributions to the Texas Science Education Foundation (TSEF).

Judges recruited from the industry and local communities met in late March at BASF in Freeport to review nearly 40 applications for the 2007 Caring for Texas Awards Program, one of TCC's most important annual events and a magnet for high-achieving chemical facilities throughout the state. The winning companies will be notified by mail and will be announced at the TCC/ACIT Awards Banquet on June 12 at Moody Gardens Hotel in Galveston, on the final day of the TCC/ACIT EHS Seminar.

Caring for Texas is designed to promote continuous improvement in community awareness, emergency response, pollution prevention and security by TCC member companies. The program covers plants in four size categories based on number of employees (60 or fewer, 61-200, 201-500, and more than 500). This year, three facilities competed in the smallest category, 13 plants entered each of the two middle categories, and 10 companies vied in the largest category. Together, the applications provided an impressive list of industry achievements in community awareness, emergency response, pollution prevention and security.

TCC wishes to recognize the following persons for serving as judges in this year's competition:

• Community judges: John Faseler, Fernando Gomez, Dietrich Johnson, Gretchen Larson, Ed Matuszak, Wendy Reistle, and Curtis Wyche;
• Industry judges: Bob Blaschke, Phil Cuevas, Ed Fiesinger, Michelle Holyfield, John Koegel, Eileen Rangel, and Joanne Weik.

(A public statement from Buddy Garcia, Chairman, Texas Commission on Environmental Quality)

When the Environmental Protection Agency announced its new ozone standard, critics across the state jumped to the conclusion that the air we currently breathe is unhealthy. Nothing could be further from the truth. The air Texans breathe today is cleaner than it has been in the last decade, in spite of dramatic population growth.

Consider the achievements already on record in Texas.

In the Houston and Dallas-Fort Worth areas, we lead the U.S. in setting low emission requirements for all types of industry.

In Houston, nitrogen oxide emissions (a key component of urban smog) from industry are down from an estimated 479 tons per day in 2000 to a projected 157 tons per day in 2009. That's nearly a 70 percent decrease. Also, 22 out of 24 ozone monitors in Houston have lower overall annual averages, and two monitors stayed the same. So no monitors have seen an increase.

The Houston area also has seen impressive reductions in benzene emissions, which is another air pollutant that has received considerable attention. The highest recorded levels, which have occurred at the Lynchburg Ferry near the Houston Ship Channel, have fallen by half since 2005.

In the Dallas-Fort Worth area, the agency has worked hard to reduce emissions from industry, cement kilns and power plants, instituted a tough vehicle emissions inspection program, and aggressively pursued incentive programs like the Texas Emission Reduction Plan and Drive a Clean Machine to reduce emissions from automobiles and diesel equipment. As a result, the area will meet today's ozone standard of 85 parts per billion (ppb) by 2010.

The Beaumont-Port Arthur area scored a major victory by attaining the current 8-hour ozone standard earlier this year. And the areas of Austin, San Antonio, and Longview all met their air quality improvement goals by the end of 2007.

These benchmarks are remarkable, considering the rapid growth in Texas. We have worked hard and have applied much ingenuity and resources to reaching cleaner air.

Many Texas officials, including myself, were opposed to lowering the ozone standard from the current level of 85 ppb to 75 ppb. It's not that we don't want further air quality improvements, but the health benefits of lowering the current standard are debatable.

There's an assumption that the EPA standard defines "clean air," and anything above that level means unhealthy air. In reality, when scientists find a grey area and cannot discern whether there is a health effect, they set the bar at the lowest possible level.

If the yardstick by which we judge air quality is based on anything other than clear-cut scientific proof, then we are using the wrong measurement.

Despite disagreement about the new standard, Texas will continue to vigorously pursue all methods of reducing the emissions that cause ozone formation.

The challenge we as a state face in meeting the new ozone standard includes controlling industrial sources of air pollution to their lowest possible levels, as well as from the aggregate emissions from small sources like vehicles and equipment.

How do we reduce these emissions? For mobile emissions, we'll have to rely on the federal government to set tighter automobile standards, as states have no jurisdiction on these sources. Even if the federal government were to set lower emission standards on vehicles, these lower emissions are only beneficial when an older car is taken off the road and replaced by a newer, cleaner vehicle.

As emission limits become more stringent, control costs rise. Unnecessary regulation costs jobs and raises the price of all kinds of goods and services. The people most adversely impacted are not the wealthy, but those who live paycheck to paycheck, or lose their jobs, or never get the jobs that would've been created if not for additional, burdensome regulation.

While I still have concerns over the achievability of this new standard, Texas will work toward meeting it. We will maintain our working relationship with EPA, city and county officials, business and industry, and environmental groups throughout the state to reduce existing emissions and encourage the use of newer, cleaner control technologies.

In response to the Environmental Protection Agency's March 12 decision to lower the federal ozone primary 8-hour ozone standard to 0.075 parts per million, TCC has prepared the following position statement.

The Texas Chemical Council (TCC) agrees with U.S. Environmental Protection Agency (EPA) Administrator Johnson's statement that America's air is cleaner today than it was a generation ago, and proudly recognizes the chemical manufacturing sector in the Houston-Galveston-Brazoria (HGB) nonattainment area that has invested more than $3 billion since 2001 with other industry partners to reduce nitrogen dioxide (NOx) emissions by more than 80 percent. However, for the following reasons, TCC does not support EPA's decision to lower the National Ambient Air Quality Standard (NAAQS) below 0.08 parts per million (ppm) for ground level ozone at this time.

1. Air quality in Texas and across the nation is improving under the 0.08 ppm standard and will continue to improve. According to EPA, total emissions of the six principal air pollutants dropped by 54 percent nationally between 1970 and 2006. The Texas Commission on Environmental Quality (TCEQ) predicts the area of exceedance of the 0.08 ppm 8-hour standard in the HGB nonattainment area will decrease more than 80 percent from 2000 to 2009 (from 23,400 to 4,416 square kilometers). Such decreases are expected to continue despite the area's rapidly growing economy and population.
2. EPA's decision to lower the standard will create new nonattainment area designations for 10 Texas counties. In Texas, there are currently 12 counties whose monitors measure over the current standard of 0.08 ppm. The new standard of 0.075 ppm will put an additional 10 Texas counties in the nonattainment category. This will hurt both large and small businesses and will likely result in job loss, higher energy costs, permitting delays, and hinder business expansion and economic growth in Texas and the U.S.

The Texas chemical manufacturing industry is committed to cooperatively working with EPA and TCEQ to lower emissions and improve the state's environmental quality. In addition, TCC continues to support regulations that squarely balance sound science and economic growth. TCC also supports Administrator Johnson's recommendation that Congress modernize the Clean Air Act to allow decision-makers to consider benefits, costs, risk tradeoffs, and feasibility in making decisions about how to clean the air.

The U.S. Environmental Protection Agency (EPA) has named The Dow Chemical Co. as a 2008 ENERGY STAR Partner of the Year for excellence in energy management and reductions in greenhouse gas emissions. Dow's accomplishments were recognized at an awards ceremony in Washington, D.C. on April 1.

Dow was honored for demonstrating outstanding achievements in energy efficiency and management within the past year. Dow's commitment and leadership in energy efficiency over the past 12 years has resulted in significant energy, financial and greenhouse gas savings - more than 900 trillion Btu, over $4 billion and approximately 51 million metric tons of carbon dioxide (CO2).

"Energy efficiency continues to play a key role in our efforts to address the parallel issues of restricted resources, escalating energy costs and climate change - and we are delighted to be recognized by ENERGY STAR for our achievements in this area," said Andrew Liveris, Dow chairman and chief executive officer. "Efficiency improvements alone will not solve all of our nation's climate and energy challenges, but it is something that everyone can do right now to make a difference."

In choosing the company for the award, the EPA recognized Dow's comprehensive approach to saving energy: goal setting, detailed energy measurement, benchmarking, employing best practices and fully engaging employees.

Award winners were selected from more than 9,000 organizations that participate in the government led program. ENERGY STAR is the government's most-recognized efficiency program and brand, which is used to promote environmentally friendly consumer products.

"Dow's leadership in managing their energy use is a model for other businesses looking for ways to protect the environment," said Robert J. Meyers, principal deputy assistant administrator for EPA's Office of Air & Radiation. "Because commercial and industrial facilities account for half of all energy consumption in the U.S. and are responsible for nearly half of U.S. greenhouse gas emissions, energy management is a critical element in our efforts on climate change."

Texas Petrochemicals (TPC) has announced it will donate a total of $1,000 to three Southeast Texas charities on behalf of a trio of employees who are doing local volunteer work. The donations come from TPC's Employee Charitable Donation Lottery, a program designed to recognize the efforts of employees who volunteer their time off the clock, while rewarding a local nonprofit organization for the work it does to make the local community a better place.

The donations and employees include:

• $200 to Child Advocates, Inc. in Houston, on behalf of Mel Lara, a Houston resident. Lara is actively involved with Child Advocates' efforts to train and mobilize court-appointed child advocate volunteers to break the cycle of child abuse. Mel has served the organization for a year as a special event volunteer.
• $400 to the Salvation Army, in La Marque, Texas, on behalf of Bill Reid, a resident of the area. Bill Reid, is actively involved with the Salvation Army's efforts to provide the local area with emergency relief and assistance. Bill has been with the organization for 15 years as a local advisory council member. He has also served as president and treasurer.
• $400 to Court Appointed Special Advocates (CASA) of Liberty and Chambers County on behalf of Jason Chapman, a resident of the area. Chapman is actively involved with the organization's efforts to provide advocacy to abused and neglected children who are in protective custody and provide a voice to the courts on their behalf.

TPC provides ongoing support to various organizations and events that help to support and improve the local community through its outreach efforts. Since the inception of the Employee Charitable Donation Lottery in 2006, the program has given nearly $5000 to organizations in southeast Texas.

As part of its new Clean Technologies solutions, DuPont has announced that it has started up a plant in El Paso and is in the process of starting up a facility in Linden, N.J., that will help refineries reduce their environmental footprints with on-site spent sulfuric acid regeneration and sulfur gas recovery services with significant reductions in sulfur dioxide emissions.

The custom-designed DuPont facilities that are built on refiner's facilities will provide for efficient and environmentally superior management of the sulfur gas processing while providing a cost effective and reliable sulfuric acid regeneration service for the refineries.

"Petroleum refiners are being challenged to handle higher sulfur crudes, reduce emissions in the refining process, and continue to expand production of alkylate to meet market demand for clean burning fuels," said Gary W. Spitzer, vice president and general manager - DuPont Chemical Solutions Enterprise. "DuPont's Sulfuric Acid Regeneration-Sulfur Gas Recovery offering allows refiners to cost effectively meet these challenges with state-of-the-art technology and facilities, backed by DuPont expertise in safe and reliable operation."

DuPont builds, owns, operates and maintains on-site sulfuric acid plants that regenerate sulfuric acid used in the alkylation process and convert refinery gases to sulfur products. These plants reduce sulfur emissions and provide refiners with high levels of operational reliability. In addition to the Texas and New Jersey units, the company has an existing plant in Delaware City, Del.

DuPont Clean Technologies, part of the DuPont Safety & Protection platform, includes DuPont™ Stratco™ and IsoTherming™ Clean Fuel Technologies, DuPont™ Belco® Clean Air Technologies and Sulfur Products. The business is dedicated to the development of technologies for clean air, clean fuel, and clean water. These include the reduction of particulates such as sulfur dioxide (SOx) and sulfur emissions, as well as formulating cleaner fuels.

DuPont - one of the first companies to publicly establish environmental goals 18 years ago - has broadened its sustainability commitments beyond internal footprint reduction to include market-driven targets for both revenue and research and development investment. The goals are tied directly to business growth, specifically to the development of safer and environmentally improved new products and technologies for key global markets, including technologies that help oil refiners reduce their environmental impact such as DuPont Clean Technologies.

More than 150 chemical and construction industry professionals came together recently in Beaumont to review approaches to an increasingly problematic issue: the lack of qualified craft laborers for chemical and construction companies struggling to fill positions created by new projects and retirements.

At the Golden Triangle Workforce Solutions Luncheon, panelists from TCC member companies, the construction industry and the engineering profession offered varied perspectives on the extent of the issue and potential means of dealing with it. The event was sponsored by ACIT, TCC, and the Associated Builders and Contractors (ABC) of Southeast Texas.

TCC President Hector Rivero began the meeting with an overview of the investment and workforce needs for the Golden Triangle Region over the next five years. Among his observations:

• Since 2006, more than $15 billion in new investment has started to pour into the Golden Triangle, with major projects from Cheniere, Golden Pass, Motiva, TOTAL, Valero and Sempra. An estimated 12,000 or more workers are needed for these projects over a five year period.
• For the Gulf Coast, the craft labor force is expected to peak at more than 60,000 workers this year. Nationally, the Construction Labor Research Council estimates that up to 185,000 new construction workers will be needed to replace 95,000 retiring employees and provide for the needed1 to 2 percent workforce growth through 2015.
• In Texas, the demand for craft workers is hampered by several factors, including student dropout rates, declining emphasis on vocational training, and low appeal of physical and outdoor work.

Panelists then offered their organizations' experiences with the workforce challenge. They included:

• John Cattuna of BASF and Steve Barre of Huntsman, who shared their respective companies' experiences with securing skilled workers, and discussed the challenges and delays that resulted from recent maintenance shut-downs and start-ups.
• Debra Adams of ENglobal Engineering recounted how her organization actively recruits potential workers and provides education in high schools about high-paying career opportunities in the industry.
• John Bernard, representing ABC of Southeast Texas, described how ABC has been providing key skills training for future craft workers. He urged that Golden Triangle leaders to work together on an effective plan to accomplish all current projects in the regions.