SUPPORT FOR INNOVATION IN PETROCHEMICAL PRODUCTION, SUSTAINABILITY/USE AND ADVANCED RECYCLING TECHNIQUES

Houston Port region petrochemical companies are part of an ecosystem that contributes to the development of critical innovative materials and techniques needed to make America’s manufactured products (automobile, construction materials, etc.) more resilient and sustainable.

The chemical industry invests more in research and development than other more mainstreamed industries of electronics, automobiles, and healthcare. In 2019, more than $10 billion was invested in R&D by the chemical industry in innovative production techniques for sustainable materials and advanced recycling standards across many sectors of the U.S. economy.

Support the following legislation and recognition of the Houston Port region petrochemical industry through:

The Innovative Materials in American Growth and Infrastructure Newly Expanded (IMAGINE) Act. Designed to encourage the research and use of innovative materials and techniques to speed up the deployment and extend the life of transportation, construction, and water infrastructure.

Resolution of differences between the “America COMPETES Act” (“COMPETES”) and the Senate-passed “United States Competition and Innovation Act” (“USICA”). Ensure both bills provide support for key technology/ advanced materials research and development, supply chain resilience and provisions vs China ensuring intellectual property and unfair trade protections.

Recognition of the role of plastics and polymer composites in AV/EV/infrastructure related legislative efforts, to advance the role of our industry’s position as a solution provider for more advanced automobile safety and alternative production materials impacting fuel efficiencies.

Recognizing the need for a modern regulatory system that enables rapid scaling of advanced recycling for plastics while continuing to grow and modernize mechanical recycling. It’s important that legislation clearly define advanced recycling as a manufacturing process, distinguish it from solid waste disposal, and clarify that converting plastic to fuel is defined as advanced recovery. Policies which treat advanced recycling as “waste disposal” mischaracterize the activities being undertaken and will continue an outmoded regulatory pathway for siting a facility, making it more difficult for companies to invest in modern, advanced recycling technologies.

Coastal Barrierhurricane Surge Protection

The Texas Gulf Coast Region is a vital economic artery with the Houston Port region being home to the largest petrochemical complex and export port in the United States. Hurricane Ike made landfall along the Texas Gulf Coast and accounted for over $30B in damages to the region, most of which was a direct cause of storm surge/ flooding. The Houston Port region proposed Coastal Barrier will protect more that 4 million residents, industry, and infrastructure from storm surge associated with hurricanes.

The Coastal Barrier, which includes a series of navigable gates between Galveston Island and the Bolivar Peninsula, create sand dunes along the coast to hold back storm surge, creating a barrier of seawalls around Galveston, and more. The 87th Texas Legislature created the Gulf Coast Protection District comprising five counties, including Harris and Galveston, that will act as an avenue through which the Coastal Barrier and its related projects can be funded federally and locally. In conjunction with the Army Corps of Engineers, the State of Texas General Land Office has already invested major state funding, conducted extensive academic research, and has developed a preliminary plan to protect our region.

The Houston Port Region seeks Project Support, Authorizations and Appropriations that protects our regional assets that have an immense local and national economic impact:

Project authorization in the 2022 Water Resources Development Act (WRDA).

Funding of environmental review and design of the Coastal Barrier such that the design achieves the following main objectives:

Providing the intended protection from storm surge

Maintaining an environmentally responsible footprint

Sustaining current levels of continuous two-way navigation/anchorage with accommodation of projected future economic growth

Support the USACE Chief’s Report (2022).

Attendees

ELECTED OFFICIALS

Larry Taylor - Texas Senator, District 11

Adrian Garcia - Harris County Commissioner, Precinct 2

Mike Lykes - Chief of Staff, Harris County

Michel Bechtel - Mayor, City of Morgan's Point

Brian Moran - Assistant City Manager, City of Baytown

Thom Kolupski - Mayor, City of Seabrook

David Robinson - Council Member, City of Houston, At-Large 2

BUSINESS ORGANIZATIONS & ASSOCIATIONS

Bob Mitchell - President, Bay Area Houston Economic Partnership

Amy Skicki - Executive Director, BayTran

Elizabeth Hale - General Manager/CEO, Gulf Coast Authority

Patrick Anderson - GCA Federal Lobbyist, Proventure Consultants

EDUCATIONAL PARTNERS

Jim Griffin - Associate Vice Chancellor, San Jacinto College

PORT INFRASTRUCTURE

Captain Robert Thompson - Presiding Officer, Houston Pilots

JJ Plunkett - Port Agent & COO, Houston Pilots

Captain Bill Diehl - CEO, Houston Port Bureau

INDUSTRY SECTOR

Connie Tilton - Public & Government Affairs, ExxonMobil

Phillip Fordham - Federal Government Relations, LyondellBasell

Russell Carter - Business Development, Bohler Engineering

ECONOMIC ALLIANCE HOUSTON PORT REGION

Chad Burke - President/CEO, Economic Alliance

Chad Carson - VP of Economic Development, Economic Alliance

Karen Gregory - Contracts Manager, Economic Alliance

Thank You To Our Sponsors

Economic Alliance Houston Port Region Federal Advocacy

For the last several years, the Economic Alliance has established itself as the convening entity in promoting issues of Houston Port region significance to federal legislators and agencies through our annual trip to Washington, D.C. This signature federal advocacy trip provides our members/businesses and community leaders with exclusive access to members of the U.S. Senate, Congress and their staff, executive branch policymakers, and representatives from several key institutions.

Communication Goals and Federal Priorities

The Economic Alliance’s efforts continue to eliminate unnecessary procedures so that representatives, government agencies and our members/businesses can work together seamlessly. Our strategic approach directly impacts the growth and maintenance of the most sought-after region in the entire world for petrochemical, manufacturing, maritime and logistics operations.

Goals of the Houston Port region annual trip to D.C. is to:

 Communicate the region’s legislative priorities clearly and succinctly

 Obtain more federal funding for local projects

 Advocate for legislation or policy changes that will benefit the Houston Port region

 Support our legislators by meeting with their community leaders/constituents to understand projects and issues relevant to the Houston Port region

Each year, the Economic Alliance’s Public Policy Taskforce compiles a Federal Policy White Paper to allow our members and partners to advocate as one region with one voice, both during the D.C. trip held annually and throughout the year. The 2022 Federal Policy White Paper centered on:

1. Houston Ship Channel Infrastructure Investment and Widening

2. Community College Federal Priorities for Workforce Opportunities

3. Support for Innovation in Petrochemical Production, Sustainability/Use and Advanced Recycling Techniques

4. Coastal Barrier- Hurricane Surge Protection

This strategic and unified approach is positively recognized at the federal level and is viewed as a means of assisting our federal representatives to identify and prioritize policy/projects that will have the most impact on the Houston Port region.

The Economic Alliance has been encouraged to continue this collaborative approach and build upon the relationships and communication channels established with our federal representatives. The trip has not only successfully organized high-level meetings with access to key decision makers but has also given participants a clear understanding of regional priorities and invaluable connections.

Washington, D.C. Trip/2022 – Highlights

A leadership team organized by the Economic Alliance travelled to D.C. (April 26 -28) and was led by Local Elected Officials, Business Organizations & Associations, Educational Partners, Port Houston Advocates and the Private Sector

 Over 3 days the 20-person Economic Alliance Leadership Team conducted 23 meetings with Senate, Congressional and Association representatives, along with a Congressional Dinner to discuss the Houston Port regions Federal Policy Priorities

 The trip began with a welcome dinner hosted by the Economic Alliance in partnership with the Greater Houston Partnership, Dallas Regional Chamber and Fort Worth Chamber to receive updates from Texas' U.S. senators John Cornyn and Ted Cruz on current federal issues Keynote speaker, Roman Popadiuk, first United States Ambassador to Ukraine, serving under President George H.W. Bush. offered historical insight leading up to the current Ukraine/Russian conflict and its impact on the global economy.

 Just recently the House Committee on Transportation and Infrastructure voted to move the Water Resources Development Act of 2022 toward the full House for a floor vote. This follows a vote two weeks ago by a similar committee in the Senate, which also included language in its bill approving legislation that gives the go-ahead for our Coastal Barrier- Hurricane Surge Protection proposal. This reinforces the value of our convening, consensus building and continued face to face communication between our federal representatives, our local officials and industry leaders

3

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U.S. Senate Meetings

Sen. John Cornyn TX Sen. Ted Cruz TX

Sen. John Kennedy LA

15 – Congressional Delegation Meetings/Texas

Dan Crenshaw TX-2

Lizzie Fletcher-TX-7

Kevin Brady TX-8

Michael McCaul TX-10

Randy Weber TX-14

Jody Arrington TX-19

Troy Nehls TX-22

Michael Cloud TX-27

4 – Congressional Delegation Meetings/U.S.

Kelly Armstrong ND

David Rouzer NC-7

John Curtis UT-3

Bob Gibbs OH-7

Sylvia Garcia TX-29

Eddie Bernice Johnson TX 30

John Carter TX-31

Collin Allred TX-32

Brian Babin TX-36

Sheila Jackson Lee TX-25

Lance Gooden TX-5

3 – Major U.S. Associations focused on Petrochemical, Manufacturing and Maritime

American Fuel & Petrochemical Manufacturers

Texas Engineering Extension Service – Cyber Security

American Chemistry Council

23 – Congressional Dinner Attendees/1 Member of the Texas Congressional Delegation

 The congressional dinner is where team members had the opportunity to network with local U.S Representatives in a more informal setting. This year Congressman Brian Babin, his wife Roxanne Babin, and members of his Washington DC office attended the dinner. Also as a special bonus this year, several members of the team were treated to a tour of the Capital Dome hosted by Mrs. Babin.

20 – Houston Port Region Leaders/Economic Alliance Leadership Team (including EA staff)

Elected Officials & Gov’t Staff Private Sector

Sen. Larry Taylor - Texas Senate, District 24

Rep. Dennis Paul - Texas House of Reps, District 129

Adrian Garcia - Harris County Commissioner Pct 2

Mike Lykes – Commissioner Garcia Chief of Staff

Michel Bechtel - Mayor, Morgan's Point

Brandon Capetillo - Mayor, Baytown

Brian Moran - Baytown Asst City Manager

Thom Kolupski- Mayor Seabrook

Connie Tilton – ExxonMobil

Russell Carter - Bohler

Phillip Fordham – LyondellBasell

Patrick Anderson – Proventure Consultants

Port Houston Advocates

Capt. Robert Thompson - Houston Pilots

JJ Plunkett - Houston Pilots

David Robinson - Council Member, Houston, At-Large 2 Bill Diehl – Houston Port Bureau

Business Organizations & Associations Educational Partners

Kaitlyn Murphy - Government Relations, GHP

Elizabeth Hale - Gulf Coast Authority

Amy Skicki - Executive Director, BayTran

Jim Griffin - Vice Chancellor, San Jac College

Houston Port Region Impacts

One Of The Most Vital Industrial And Logistics Bases In The World

The Houston Ship Channel is a United States economic asset consisting of the world’s largest petrochemical complex and Port Houston. The economic impact of Manufacturing and Supply Chain/Logistics of the Houston Port Region interfaces with every Congressional District in the nation.

Regional Footprint

25 Mile Houston Ship Channel

250 Private Sector Members Petrochemical, Manufacturing, Maritime, and Logistics

12 Cities, Harris County, Port Houston, and Educational Institutions

ECONOMIC IMPACT

#1 Busiest Exporting and Energy Port in the U.S. –World’s Largest Petrochemical Complex

3.2M U.S. Jobs | 1.3M Texas Jobs

$802B U.S. Economic Impact

$32B U.S. Tax Revenues

$5.7B State and Local Tax Revenues

ECONOMIC ASSETS

Houston Port Region economic activity impacts the nation’s:

Supply Chain Efficiencies

Export Goods Production

High Paying Skilled Jobs

FEDERAL POLICY PRIORITIES '23

Houston Ship Channel Supply Chain Improvements

Allocations in the Infrastructure Investment and Jobs Act, USACE Work Plan, and Inland Waterway Trust Fund for Houston Ship Channel upgrades and maintenance.

PETROCHEMICAL INDUSTRY EFFICIENCIES/PARTNERSHIPS

Reforms to Surface Transportation Board policies to impact product movement and enhanced partnerships with industry to use the most innovative technologies/ materials for infrastructure rebuilds.

Community Colleges Workforce Development

Economic Alliance supports policies to enhance port/supply chain infrastructure, skilled worker growth, industry partnerships, and coastal protections for critical economic assets. 1 2 3 4

Increased training funds via the Department of Labor, reforms to Pell Grant eligibility and appropriations from the U.S. Department of Transportation to establish a Maritime Center of Excellence at San Jacinto College.

Coastal Barrier Economic Asset Protections

Phased appropriations through the U.S. Army Corp of Engineers for the design/construction of a coastal barrier protecting the Texas/Louisiana portion of the U.S. Gulf Coast, impacting our national supply chain/ economy.