December 15, 2014
Honorable Annise Parker
City of Houston, Mayor’s Office
Dear Mayor Parker,
This morning the general Houston community was alerted to a special deal being considered by the City of Houston for Valero Energy. As we understand it, the city’s staff has been in talks with Valero to shape an agreement for some time, although members of the Houston City Council were just briefed on the proposal last week. The proposed deal would allow a large portion of the Valero refinery to be considered outside the city boundaries for taxation purposes, costing the City of Houston an estimated $10-$18 million over the next 15 years. Valero, which has seen record profits this year and had $138 billion in revenue in 2013, has a track record of shifting its tax responsibility to others.
In 2011, the Texas Organizing Project and our allies successfully fought back against Valero’s efforts to receive a $92 million tax rebate from the Texas Commission on Environmental Quality (TCEQ) that it had requested for upgrades made to its refineries that it claimed reduced emissions. Although that tax rebate was prevented, Valero has continued to use loopholes to sue local entities for further tax rebates placing the burden on cash-strapped municipalities and school districts that are struggling to pay Valero back.
The proposed expansion at the Valero refinery has already been approved for up to $1.6 million from Texas Enterprise Zone program, and yet the company claims it will take its planned expansion to Louisiana if not for additional tax benefits afforded to it by the City of Houston. Given that the expansion is estimated to create only 25 permanent jobs and its increased footprint will certainly bring more air pollution to our area, what is the benefit to the community that warrants additional tax incentives?
It’s discouraging that this precedent-setting change would be put on the agenda a week before Christmas without any attempt to gather feedback from the community on revenue implications, public health or air quality matters. We are requesting that the council postpone the vote on this deal until the new year to allow for in-depth public discussion about the costs and benefits for the de- annexation of Valero’s property.
We look forward to hearing from you on this subject and finding the best solution for Houston.
Sincerely,
Tarsha Jackson Ginny Goldman
Harris County Director Executive Director
cc-City Council
Andy Icken