Who are we? Texas Business for Clean Air is a group of more than three hundred business leaders from across the state that is committed to improving Texas' air quality. We firmly believe that the economic vitality of our own businesses and the health of our workers and families depend upon our ability to keep our air clean by minimizing harmful emissions and promoting efficiencies. There is no conflict between clean air and business interests, but rather a natural alliance for the long-term health and economic benefits that clean air will bring to Texas. Striving for clean air, cleaner transportation, clean energy generation and energy efficiencies will help spur new technologies and new businesses that will act as a tremendous stimulus to economic growth and open the doors for Texas businesses to export these technologies across the U.S. and around the world.

What have we done? We provided a conservative, pro-business voice opposing TXU's plan to build 11 old technology coal-fired plants in Texas. We helped reduce the number of plants to be built to three. We played a crucial role in getting seven clean air bills through the Texas Legislature in the recently ended session, including legislation creating a major energy efficiency initiative aimed at reducing peak electricity demand. This legislation can help avert a pending power crisis in Texas forecast by the Electric Reliability Council of Texas (ERCOT). Other legislation encouraged those in high-pollution areas to switch to energy-saving vehicles, such as hybrids, and making it easier to build nuclear plants that can service our future need for electricity without harming air quality. Our efforts will be measured very simply -- how clean is the air is in Texas?

Why Air? We believe that the quality of our air is one of the most important issues for the continued growth of Texas businesses. If we do not properly care for our state's air, we will suffer financially as well. We must comply with the emissions standards in the Federal Clean Air Act by 2010. If we do not, we would be subject to draconian penalties including the loss of all federal funding for transportation projects - both roadways and mass transit. This would strike a devastating blow to economic development in our cities. The full costs of non-compliance are difficult to estimate, but according to the U.S. Office of Management and Budget in its September 2003 Report, taking into account additional hospital and health care costs, lost workdays and penalties, the figure is in the billions.

What are the most important issues now? The biggest contributor to air pollution in our state is transportation - cars, trucks and locomotives. If we take the right steps on transportation we could bring our cities into attainment under the Federal Clean Air Act. There are two opportunities where we can influence policy and make a significant difference in what already exists and are already funded: TERP and LIRAP. The Texas Emission Reduction Plan (TERP) provides approximately $400,000,000 of funding to replace older polluting diesel engines with the new, clean, low-sulfur diesel engines. The Low Income Vehicle Repair Assistance, Retrofit, and Accelerated Vehicle Retirement Program (LIRAP) helps consumers switch from "smoking" polluting vehicles to low-pollution vehicles. This has an important impact on air quality in our major cities.

The Power Issue

Generating power for electric consumption also causes significant air pollution, because most of our power is generated through burning coal, natural gas or oil. We need to use power efficiently and cut electric consumption. This will lead to cleaner air.

a. ERCOT, which operates most of the Texas electric grid, does not project the need for new baseload power generation in the next 3-5 years. The projected shortfall is from "peak" demand during the hottest Texas summer days when we run our air conditioners non-stop. Much of this peak demand can be met with existing power generation infrastructure and by promoting efficiency measures, such as Interruptible Load (the ability to interrupt electricity demand from predetermined customers during peak periods).

b. We believe that we should not build old-technology, coal-fired plants, but concentrate on new plants with the best possible emissions profile and Best Available Control Technology (BACT).

c. All future power plants should use newer and cleaner technologies such as IGCC (gasified coal), nuclear power and renewable sources, such as wind and solar power.

Our goal is to reduce air pollution. Here's how we do it:

a. Help lobby regulatory and governmental bodies to promote clean air as advocates at state and local levels. We plan to work with the Texas Commission on Environmental Quality (TCEQ) and the state Public Utility Commission (PUC), as well as all other governmental entities whose decisions impact the future of clean air in Texas.

b. Help to properly implement the TERP and LIRAP programs statewide.

c. Lobby for a statewide energy plan to properly allocate our power generation resources, to forecast demand, to oversee retail transactions and to review the impact of power generation on air quality.

d. Represent the business community's environmental concerns and help to ensure that enacted legislation is work quickly and efficiently.

e. Work with emitters of industrial pollution, such as cement kilns, as advocates for the implementation of the Best Available Control Technologies to reduce air pollution.

f. Lobby for low-polluting energy alternatives such as IGCC, nuclear and renewables.

Our success can be measured by the improvement in the quality of our air, specifically if we can keep our major cities in federal attainment.