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Nearly $9 Billion in Tax Breaks for Gulf Coast Petrochemicals Despite Pollution Violations

A report reveals that 84% of operations exceeded air pollutant levels, impacting communities and sparking calls for conditional subsidies.

Playground in foreground with petrochemical plant in background
Gulf Coast Growth Ventures, a $10 billion plastics plant built by ExxonMobil and SABIC, started operations this year on 1,300 acres of previously undeveloped land in San Patricio County, across the bay from Corpus Christi.
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Overview

  • Petrochemical companies along the Gulf Coast have received nearly $9 billion in tax breaks since 2012 for plastics production, despite frequent pollution permit violations.
  • The Environmental Integrity Project report highlights that 84% of the operations exceeded allowed air pollutant levels, impacting marginalized communities.
  • Tax incentives are given without requiring compliance with state pollution control permits, raising concerns over subsidizing companies that violate environmental laws.
  • Proposed expansions in Texas include 42 new plastics plants, with significant environmental and health implications for local communities.
  • Critics argue for making subsidies conditional on environmental compliance, suggesting that companies failing to adhere to laws should not benefit from taxpayer money.