Refiner proposing more budget misery for schools

For sometime now, environmentalists have been unhappy with Gov. Rick Perry’s probusinessatjustaboutanycost appointees on the Texas Commission on Environmental Quality. Now, educators – even those who don’t consider themselves particularly green – also have reason to be concerned.

According to a story in the Houston Chronicle, Valero Energy Corp., one of the country’s largest oil refiners, is asking TCEQ to expand the rules and give the company a full property tax break on equipment at five refineries it operates in Texas. If TCEQ agrees, school districts – which already are suffering serious budgetary problems – stand to lose untold millions in tax revenue. The potential loss to Houston ISD alone would be $2.5 million a year, the newspaper reports.

A provision in the Texas Constitution allows companies to receive tax exemptions for equipment that reduces pollution at the refinery. Valero is asking the TCEQ to grant it an exemption for equipment used to remove sulfur in the production of gasoline and diesel, but local officials say that reduces pollution from auto tailpipes, not at the refinery, as the constitutional provision requires.

The TCEQ’s staff has recommended Valero’s request be denied, but the Perryappointed commissioners have asked the staff to take another look at the issue.

“The three voting commissioners have expressed a willingness to give some tax relief to the company,” the Chronicle reported.

“It’s bigger than Valero,” Texas City ISD Superintendent Bob Brundrett told the newspaper. “With the exemption, then this also becomes BP and Shell and ExxonMobil.”

In other words, if the Valero request were granted, it would set a precedent that could produce a flood of tax breaks for refinery equipment that reduces pollution offsite. That would be very bad news for school districts, other local governments, homeowners, educators and school kids.

Here is a link to the Chronicle story:

http://www.chron.com/disp/story.mpl/metropolitan/6959428.html