The Texas asphalt industry is a major economic powerhouse, and plays a multifaceted role in our state. It is responsible for producing and installing asphalt pavements, which are integral to roadways, highways, bridges, parking lots, and a variety of transportation and infrastructure projects. This industry injects over $5 billion annually into Texas’ economy, as indicated by TXAPA.org.

Apart from its economic impact, the Texas asphalt industry demonstrates a steadfast commitment to sustainability, with asphalt exceeding recycling rates of materials like soda cans and newspapers. An impressive 94 percent of reclaimed asphalt from old roads and parking lots is seamlessly integrated into the production of new pavements, as highlighted by the Asphalt Pavement Alliance. In its drive for environmental responsibility, the industry actively seeks out innovative technologies and practices aimed at minimizing the ecological footprint of asphalt production and construction.

During the Texas Asphalt Pavement Association’s Annual Conference in September 2023, Gary Nicholls, P.E., Westward’s Senior VP of Operations, and Matt Bellos, REM, CESSWI, VP, delivered a presentation on sustainability trends within the asphalt industry. Their comprehensive exploration encompassed a range of topics, from assessing the carbon footprint linked to highway paving materials to strategies for accruing LEED points and the evolving landscape of pavement material procurement. Notably, they provided insights into Environmental Product Declarations (EPDs) for state and national pavement projects, among other pertinent issues. Here are some key takeaways from their presentation.

Sustainability Trends in the Asphalt Industry

The asphalt industry is facing growing pressure to reduce its environmental impact, prompted by several factors, including climate change, air pollution, and resource depletion. The industry is responding to these challenges by developing and implementing new sustainability initiatives, including Environmental Product Declarations (EPDs). EPDs are like a “nutrition label” for construction products. They provide information about the environmental impact of a product throughout its life cycle, from raw material extraction to disposal. EPDs are based on life cycle assessments (LCAs), which are a standardized way of measuring the environmental impact of products and services. LCAs consider all the environmental impacts associated with a product, including:

• Resource extraction: The use of raw materials, water, and energy to extract the raw materials needed to make the product.

• Manufacturing: The energy and resources used to manufacture the product, as well as the emissions and waste produced during manufacturing.

• Transportation: The energy and resources used to transport the product to its final destination.

• Use: The energy and resources used to use the product, as well as the emissions and waste produced during use.

• End of life: The energy and resources used to dispose of or recycle the product, as well as the emissions and waste produced during end of life.

 EPDs are becoming increasingly important as government agencies and private companies look to reduce their environmental impact. For example, the General Services Administration (GSA) now requires EPDs for all construction products used on its projects. The Federal Highway Administration (FHWA) also requires EPDs for asphalt used on federal highway projects. However, compiling Environmental Product Declarations (EPDs) for each product and production site is time and resource intensive. While EPDs can help the government choose environmentally friendly construction products, a lack of EPDs from most companies can limit competition, potentially driving up costs and leading to government inefficiency.

TCEQ Property Tax Regulations

Another important trend in the asphalt industry in Texas is the use of property tax rules to reduce the cost of pollution control equipment from property assessments through the Texas Commission on Environmental Quality (TCEQ). Under the Texas Commission on Environmental Quality (TCEQ) property tax regulations, companies are permitted to subtract the expenses related to essential pollution control equipment from their property assessments. This encompasses various items such as:

• Equipment (e.g., on-site water trucks for dust suppression)

• Stormwater ponds (including both construction and land costs)

• Dust collectors

• Air scrubbers

• Baghouses

• Electrostatic precipitators

• Catalytic converters

• Thermal oxidizers

 Generally, equipment that is used to prevent, monitor, control, or reduce air, water, or land pollution is eligible. However, the pollution control equipment must meet the following criteria:

•        It must be used wholly or partially for pollution control purposes.

•        It must have been purchased or installed after January 1, 1994, in order to meet or exceed the requirements of a rule or regulation adopted by a federal, state, or local political subdivision of Texas. And it must provide an environmental benefit.

 To obtain a property tax exemption for pollution control equipment, companies must first submit information for Tax Relief for Pollution Control Property Program through the TCEQ. If the application is approved, the company will receive a positive use determination. The company can then submit the positive use determination to the local property tax appraisal district to request a property tax exemption. The property tax exemption for pollution control equipment can help companies offset the costs of installing and operating this equipment. This can make it more financially feasible for companies to comply with environmental regulations and to reduce their environmental impact.

Compliance at Asphalt Plants and Materials Yards

The asphalt industry is actively engaged in its adherence to environmental regulations. It is imperative for those in the regulated community to keep current with their permits and plans that include:

• Air permits (production records & water truck log)

• Stormwater Plan (monthly inspections & sampling

• Tank Registrations (greater than 1,100-gallons)

• SPCC Plans (greater than 1,320-gallons)

• Tier II & TRI Reports done annually

• Waste (keep records for 3 years)

The Texas asphalt industry is making notable strides in its pursuit of environmental responsibility. The introduction of Environmental Product Declarations (EPDs), the utilization of property tax regulations at TCEQ, and the enhanced commitment to environmental compliance collectively contribute to a more sustainable industry landscape.