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Valero Wants to Literally Steal Money from School Children


by: Adam Schwitters

Tue Oct 25, 2011 at 04:54 PM CDT


Despite the crippling budget shortfalls afflicting Texas’s school districts and county budgets in the wake of the 2011 Legislative session, energy giant, Valero, has requested a $92 million property tax refund from the Texas Commission on Environmental Quality (TCEQ). Valero claims that this refund is due to them based on a 1993 consitutional amendment, proposition 2, that helps property owners comply with local pollution regulations by granting them property tax exemptions.  This is a good law that requires owners to “provide an environmental benefit at the site.”  

The problem here is that Valero’s proposed environmental improvements have nothing to do with reducing on or near site pollution.  The exemptions would fund the installation of hydrotreaters at several of its Texas refineries.  These hydrotreaters reduce the sulfur content of the gasoline produced so that it can be used in all modern automobiles.  According to the TCEQ’s own staff, these hydrotreaters “do not provide an environmental benefit to the site.” In fact, according to TCEQ engineer Minor Hibbs they “actually increase pollution.”

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The TCEQ’s three commissioners (all Perry appointees incidentally) will soon have to determine whether the environmental benefits from low sulfur gasoline (the kind that all modern engines use) constitutes an “at site” improvement.  According to the Houston Chronicle, “if the “at the site” provision was interpreted in Valero’s favor, it would open the floodgates for businesses to argue that they’re reducing pollution somewhere and get a big break on property taxes.”

To add insult to injury, the tax rebates would come out of the budgets of school districts and counties in the direct vicinty of the refineries.  Not only would the schools lose future revenue, they would have to return over $62 million in funds they already received.  Rural districts would be particularly hard hit.  According to the Associated Press, “Moore County, where a Valero refinery is seeking two exemptions, a $15.8 million refund would amount to more than $720 per person.”

Texas schools already saw their budgets slashed by over $4 billion in the last Legislative session.  If this plan is approved by the commission, Mary Lozano, a retired teacher and Texas Organzing Project member, says “the money Valero will get from the TCEQ’s decision is going to come directly out of the budget of our local school districts. This isn’t about taxes anymore, this is about literally taking money from school children.”

There is still time to help prevent this looming envirnomental and budgetary disaster.  The TCEQ is holding its next public meeting on November 2.  You can contact them here to express your outrage at Valero, or plan on attending the meeting and rallies that will accompany it.  

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