The relationship between the economy and the environment is quite complex and multi-dimensional. At times, it appears to be one of conflict, as interested parties clash over the proper development of residential and commercial real estate, industrial sites, reservoirs, or other economic resources.
On the other hand, a substantial body of evidence suggests that environmental quality actually contributes to economic growth, particularly among high-tech industries, which seek desirable and attractive locations. Similarly, clean air and ample supplies of clean water are vital to public health.
Air pollution is a very serious matter in many parts of our state, as well as across much of the nation. Most of this pollution results from daily business routines and activities; with higher factory output, increased construction, and greater traffic congestion, the problem continues to grow.
The Federal Clean Air Act is the legal foundation for the national air pollution control program. Authority to enforce the provisions of the Act is granted to the Environmental Protection Agency (EPA). The act requires each state to develop and regularly update a State Implementation Plan (SIP) that denotes measures being taken to maintain proper air quality standards.
During the 1990s, federal environmental standards became more stringent with passage of the 1990 Clean Air Act Amendments. Specific attention was given to the operation of vehicles and industrial equipment, considered to be major sources of two types of pollutants—nitrogen oxides and volatile organic compounds. These pollutants combine in hot, stagnant air to form ground-level ozone; high levels can cause serious health problems, which in turn result in increased medical expenses and losses in productivity and efficiency throughout the economy.
The EPA can impose penalties for areas not in compliance. The sanctions include limiting new facility development and withholding federal highway funds from the affected areas.
Several Texas metropolitan areas have been found by the EPA to be in violation of air quality standards, primarily due to excessive ozone levels. The areas include Houston/Galveston/Brazoria, Dallas/Fort Worth, and Beaumont/Port Arthur. The El Paso area, in addition to having ozone levels that exceed the standards, also has problems with high levels of carbon monoxide and particulate matter.
In addition to these nonattainment areas, six other urban regions—Corpus Christi, Victoria, Austin-San Marcos, San Antonio, Tyler, and Longview-Marshall—are characterized as “near nonattainment” areas.
The 41 counties involved represent only a small portion of the vast landmass of Texas, but they account for more than 70.0% of the state’s population, 76.4% of aggregate employment, 83.4% of total personal income, and 83.0% of gross state product. Nearly 85.0% of manufacturing activity is located in these counties. Because of the integrated nature of the Texas economy and the dependence of rural and suburban areas on spin-off activity from the larger metropolitan areas, all parts of the state are affected by what occurs in these regions.
The 77th Legislature created the Texas Emissions Reduction Plan (TERP). It incorporated a variety of voluntary financial incentive programs, as well as other programs designed to assist in the improvement of air quality across the state. A major component of the TERP was a grant program to replace and retrofit diesel engines that have unacceptable levels of emissions. The funding approach initiated involved a significant increase of fees on cars imported into Texas. The fee was subsequently struck down as too excessive by a court challenge. This action left a key element of the state compliance plan without necessary dollars.
The EPA has indicated that Texas’ SIP will be non-compliant unless funding is restored. Failure to do so would cause the state to become subject to severe penalties affecting our health, quality of life, future business and export expansions, and highway funding. As we face the challenge of enormous fiscal stress and the task of assigning priorities among many worthy endeavors, Texas must comply with the Clean Air Act Amendments to ensure our future.