2024 DC White Paper

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HOUSTON PORT REGION

ONE OF THE MOST VITAL INDUSTRIAL AND LOGISTICS HUBS IN THE WORLD

A U.S. economic asset consisting of the world’s largest petrochemical complex and Port Houston. The benefits of the Houston Port region’s jobs and port activity impacts not just Texas, but the entire U.S. economy.

#1 U.S. PORT

Leader in Foreign Waterborne Tonnage, U.S. Exports, and Imports

200+ COMPANIES

Petrochemical, Manufacturing, Maritime, and Logistics

SKILLED JOBS

3.4M U.S. Jobs

1.5M Texas Jobs

ECONOMIC IMPACT

$900 Billion in U.S. Economic Value 18% State of TX GDP

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FEDERAL PRIORITIES 2024

HOUSTON SHIP CHANNEL SUPPLY CHAIN IMPROVEMENTS

Request for funding in the Water Resources Development Act (WRDA) and revisions to Navigation Construction and Operations & Maintenance Cost-Share formulas for design studies, upgrades, deepening/widening and maintenance to Port Houston.

PETROCHEMICAL MANUFACTURING REGULATION IMPACTS

Examine and improve EPA regulatory processes, streamlined permits, elimination of conservative regulations to be replaced with flexible, smart, science-based approaches.

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COMMUNITY COLLEGES WORKFORCE DEVELOPMENT

Revise Pell Grant eligibility standards for short term programs/non-traditional students. Provide additional student aid by ending the taxation of Pell Grants and modifying the American Opportunity Tax Credit.

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COASTAL BARRIER ECONOMIC ASSET PROTECTIONS

Secure funding through federal annual appropriations and other sources for the engineering, design, and timely construction of the Coastal Protection Project.

The Houston Ship Channel consists of 200 private and eight public terminals and is a major economic generator in the state of Texas as well as the U.S. economy.

• More than 247M tons of cargo move through Port Houston, carried by 8,200 vessels and 215,000 barges - #1 U.S. port in foreign waterborne tonnage, along with export and import tonnages.

ECONOMIC ALLIANCE SUPPORTS requests in the Water Resources Development Act (WRDA) for upgrades and maintenance to Port Houston. Requesting the Navigation Construction and Operations & Maintenance Cost-Share Change and Authorization of the Project 12 Deepening Study.

• Navigation Construction Cost-Share Change - Current law permits a 75% federal and 25% non-federal cost-share for channel depths up to 50-feet, and an additional non-federal payment of 10%. The proposed change is to increase the 75/25 cost share up to 55-feet and eliminate the additional 10% requirement.

• Navigation Operations and Maintenance Cost-Share Change - Current law permits 100% federal cost-share up to 50-feet. The proposed change is to increase the 100% cost-share up to 55-feet. Ensuring ports who move 90% of our nation’s commerce, to be dredged to their authorized width and depth without financial supplementation by port authorities.

• Authorization of the Project 12 Deepening Study - Current law allows for the project to be studied without Congressional authorization. If the USACE does not agree, the Port will seek to authorize the study in WRDA.

2 PETROCHEMICAL MANUFACTURING REGULATION IMPACTS

Petrochemicals form the backbone of the U.S. economy and are found in a wide range of consumer, medical and industrial products, many of which are considered essential for daily use. Most associate petrochemicals with plastics, but their potential uses span a much broader spectrum of applications in our lives.

• The current Administration has proposed restrictions with the potential to impact the petrochemical industry. This affects supply chains for technologies, including semiconductors, clean energy solutions like electric vehicles, and healthcare applications.

ECONOMIC ALLIANCE SUPPORTS policy/legislation providing improvements to regulatory processes, streamlined permits, and elimination of conservative regulations to be replaced with flexible, smart, science-based approaches.

• Congress must exercise its oversight authority and examine how strict EPA regulations will cut off access to products and technologies. Striving to protect American innovation by supporting energy, vehicles, infrastructure, healthcare, semiconductors, and an array of essential goods.

1 HOUSTON SHIP CHANNEL SUPPLY CHAIN IMPROVEMENTS

The Houston Port region community colleges are building a strong Texas workforce by aligning quality education/training with our industry needs.

• With the expansion of Port Houston and continued industrial growth it’s important that our colleges meet job demand, attrition and skill enhancement that provides economic opportunity to students.

• The aerospace and biomanufacturing industries are expanding in the Houston region bringing emerging technologies and the need for additional skills in our workforce. In response to this growth our community colleges are investing in programs and facilities to provide a competitive advantage in attracting new students and industry.

ECONOMIC ALLIANCE SUPPORTS policy that addresses our community college student needs by ending the taxation of Pell Grants and modifying the American Opportunity Tax Credit, allowing students to claim additional aid.

End the Taxation of Pell Grants and Modify the American Opportunity Tax Credit

• Pell Grants Should Be Tax-Free - Under current law, community college students must pay taxes on any portion of their Pell Grants that is used to help meet living expenses. These are qualified educational expenses for which federal student aid is provided; reducing Pell Grant funds by taxing them makes it even harder for the lowest-income students to succeed.

• Revise the $2,500 American Opportunity Tax Credit (AOTC) - Currently Pell Grant awards are not counted against a student’s eligibility. This change would help hundreds of thousands of low-income community

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COASTAL BARRIER ECONOMIC ASSET PROTECTIONS

The Coastal Protection Project will protect against storm surge that could be a detriment to human life and critical national industry. Protecting assets contributing to manufacturing, retail, agriculture, business, and military supply chains across Texas and the nation.

• Authorized by Congress in December 2022 the project is recognized as a national security and economic protection project located along the Texas coastline. Consisting of a coastal flood gate and levee system to protect the Houston Port region, including the world’s largest petrochemical complex and busiest export port in the United States.

ECONOMIC ALLIANCE SUPPORTS funding the Coastal Texas Project for engineering, design, and timely construction through annual appropriations and other eligible federal sources.

The Gulf Coast Protection District (the non-federal sponsor for CSRM) has submitted $65 million in community project funding requests and is exploring other applicable federal funding sources. Both efforts will assist in beginning CSRM and ecosystem restoration work. Annual appropriations after initial funding will be required.

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ELECTED OFFICIALS & ADMINISTRATORS

Dennis Paul, Texas State Representative, District 129

Adrian Garcia, Harris County Commissioner, Precinct 2

Mike Lykes, Chief of Staff, Harris County Commissioner, Precinct 2

Kelly Waterman, Regional Director, U.S. Senator Ted Cruz

Brandon Capetillo, Mayor, City of Baytown

Jason Reynolds, City Manager, City of Baytown

Thomas Reeves, Director Public Affairs, City of Baytown

Michel Bechtel, Mayor, City of Morgans Point & Gulf Coast Protection District President

Rick Guerrero, Executive Director, City of Pasadena EDC

Thom Kolupski, Mayor, City of Seabrook

BUSINESS ORGANIZATIONS AND ASSOCIATIONS

MaryJane Mudd, Executive Director, East Harris County Manufacturing Association

Amy Skicki, Executive Director, BayTran

Coalter Baker, Senior Policy Director, Greater Houston Partnership

Christian Boinat, Vice President Advocacy, Greater Houston Partnership

Eric Carrero, President, Greater Houston Port Bureau

Christine Schlenker, Vice President, Greater Houston Port Bureau

Elizabeth Hale, Chief Executive Officer, Gulf Coast Authority

Patrick Anderson, Gulf Coast Authority, Federal Lobbyist, Proventure Consultants

EDUCATIONAL PARTNERS

Robert Baker, Assistant Professor, TAMU Galveston Maritime

Teri Crawford, Vice Chancellor, San Jacinto College

John Stauffer, Associate Vice Chancellor Maritime, San Jacinto College

Jeff Pearce, Coordinator Education and Workforce, San Jacinto College

PORT INFRASTRUCTURE

Matt Glass, 2nd Officer, Houston Pilots

JJ Plunket, Chief Operating Officer, Houston Pilots

PRIVATE SECTOR

Russell Carter, Director, Business Development, Bohler Engineering

Tim Berry, Marine Superintendent, ExxonMobil

Aaron Stryk, Public & Government Affairs Manager, ExxonMobil

Tim Vail, Vice President Water Group Dir, HDR

Chris Block, Operations Manager, LyondellBasell, Channelview

Mark Bookmyer, Site Manager, LyondellBasell, LaPorte

Aimee Cade, Senior Coordinator Government Relations, LyondellBasell

Tim Carnell, Site Manager, Matagorda,Choc Bayou, Victoria, LyondellBasell

Daniel Feimster, Site Manager, LyondellBasell, Edison

John Grant, Manager Federal Government Relations, LyondellBasell

Andrew Healey, Manager Federal Government Relations, LyondellBasell

James Hillier, Senior VP, O&P Americas Manufacturing, LyondellBasell

Alicia Matus, Site Manager, LyondellBasell, Corpus Christi

Nora O'Connor, Senior Advisor Government Relations, LyondellBasell

Devin Sears, Head of Federal Government Relations, LyondellBasell

Vicent DiCosimo, Senior Vice President Government Affairs, Targa Resources

Tony Wood, Site Manager, LyondellBasell, Channelview

ECONOMIC ALLIANCE HOUSTON PORT REGION

Chad Burke, President & Chief Executive Officer

Chad Carson, Vice President Economic Development

Karen Gregory, Government Contracts Manager

THANK YOU TO OUR
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