November 6, 2007 Volume # 8 Issue # 23

A bi-weekly source for Association news and regulatory and legislative developments affecting the chemical distribution industry.

NACD News - Table of Contents Legislative and Regulatory Updates CFATS Update – Final Appendix A is Available on DHS Web Site REACH and TSCA Resources Posted on NACD Web Site Massive Tax Package Introduced in House House Passes Ammonium Nitrate Security Legislation Another Rail Competition Hearing Held Phthalates Ban Legislation Introduced in Congress Chemical Safety Board Urges Distributors to Read Report on Flammable Liquids OSHA Publishes Compliance Directive on Combustible Dust First Cargo Tank Rollover Summit Next Week in St. Louis It’s Not Too Late to Sign Up for the EPA Region 3 Conference Responsible Distribution Process RDP Webinar, Internal Audits:  December 18, 2007 RDP Workshop:  Spring 2008 Reduce Number and Cost of Supplier Audits Networking and Education El Conquistador Room Deadline has Passed! University of Industrial Distribution - Register Now! Chemical Education Foundation You Be The Chemist Activity Guides  - Now Available! Golf to Benefit Chemistry Education     Calendar of Events   Education and Training   Annual Meeting   OPSEM CFATS Update – Final Appendix A is Available on DHS Web Site   As reported in the NACD Regulatory Alert on Friday, the final Appendix A list of chemicals and quantities to trigger the requirement to complete a Top Screen consequence assessment under the Chemical Facility Anti-Terrorism Standards (CFATS) is now available on the DHS chemical security Web site at http://www.dhs.gov/chemicalsecurity. This list will be published in the Federal Register later this month, likely just before Thanksgiving. Facilities with chemicals at or above the listed screening threshold quantities (STQs) will have 60 days from the Federal Register publication date to complete the Top Screen. Please note that DHS has temporarily removed the Top Screen questionnaire from the Web site in order to change it to reflect the new Appendix A. The revised Top Screen will be posted within the next week or two. The Top Screen is part of the on-line CFATS Chemical Security Assessment Tool (CSAT), which requires registration. If your facility has chemicals that meet or exceed the STQs on the new Appendix A and you have not yet registered for CSAT, you can do so through the DHS chemical security Web site. The CSAT section of this site has another helpful tool – a Web page of Frequently Asked Questions. This page contains an extensive list of questions and answers on many aspects of CFATS. You can find the link at the bottom the CSAT page.       Back to Top   REACH and TSCA Resources Posted on NACD Web Site   The October 22-23 NACD TSCA-REACH Workshop was a success with more than 30 participants. To begin, Sunil Hangal, Principal at RTP Environmental Associates, Inc., delivered an informative presentation on TSCA. Next, Bart Seitz, Esq., of the law firm Baker Botts LLP, spoke extensively about the new EU REACH Regulation. Richard Siegel, Ph.D., President of R & B Consulting Services, facilitated the workshop. Participants at the workshop asked numerous questions and engaged in an active dialogue with the presenters during both the sessions and networking reception. On the evaluations, attendees gave the workshop high marks for being useful and informative. For those who missed the workshop, the presentations as well as additional links on REACH and TSCA are posted on the NACD Web site at /advocacy/resources.aspx. NACD will post additional information on REACH and TSCA on this page as developments occur. The latest link, just posted yesterday, is to the REACH page of the U.S. Department of Commerce’s Mission to the European Union site at http://www.buyusa.gov/europeanunion/reach.html. This organization will hold a REACH seminar on Tuesday, November 13, in Trenton, NJ. Complete information is on the Web page. Please contact NACD Vice President of Government & Public Affairs Jennifer Gibson at jgibson@nacd.com or 703/527-6223, ext. 103 if you have questions about the TSCA-REACH Workshop or recommendations for future NACD regulatory workshops.       Back to Top   Massive Tax Package Introduced in House   On October 25, Representative Charles Rangel (D-NY), Chairman of the House Ways and Means Committee, introduced H.R. 3970, the so-called Tax Reduction and Reform Act, which would eliminate the alternative minimum tax (AMT) and make numerous other changes to the tax code that would impact both individuals and corporations. The most immediate concern for some NACD members is that the tax package would eliminate the LIFO (last in, first out) inventory accounting method. Repeal of LIFO would force companies currently using this system to report their reserves as income, resulting in a substantial tax hit for many. If your company uses LIFO and is concerned about its possible repeal, please let Jennifer Gibson know so she can keep you informed of further developments. On the positive side, H.R. 3970 would extend the research and development (R&D) tax credit, which is currently scheduled to expire on December 31, 2007. Because the proposed tax package is so large and controversial, it is doubtful that it will be acted upon this year. Therefore, the House Ways and Means Committee late last week approved a smaller bill, H.R. 3996, the Temporary Tax Relief Act, to “patch” the AMT problem for one more year and extend the R&D tax credit for another year, among other provisions. LIFO repeal is not included in H.R. 3996. The full House is scheduled to take up the bill later this week. You can find information on both the large and smaller tax packages at http://waysandmeans.house.gov.       Back to Top   House Passes Ammonium Nitrate Security Legislation   On October 23, the House of Representatives approved by voice vote H.R. 1680, the Secure Handling of Ammonium Nitrate Act, which would require facilities that produce or sell ammonium nitrate, as well as those who purchase the substance, to register with DHS. Under the bill, facility owners would also be required to maintain records of each sale or transfer of the product, and DHS would be required to establish a process for inspection and audit of these records. Companion Senate legislation, S. 1463, is pending in the Senate Homeland Security and Governmental Affairs Committee. For a copy of H.R. 1680, go to http://thomas.loc.gov, type H.R. 1680 into the top box, choose the bill number circle, and hit the search box.       Back to Top   Another Rail Competition Hearing Held   On October 23, the Surface Transportation and Merchant Marine Infrastructure, Safety, and Security Subcommittee of the Senate Commerce Committee held a hearing on rail competition. Earlier this fall, the Senate Judiciary Committee held a hearing on and approved S. 772, the Railroad Antitrust Enforcement Act, which would strengthen the Surface Transportation Board, require greater competition among railroads, and eliminate the railroads’ antitrust exemption. Lack of competition in the rail industry is an increasing concern for industries such as the chemical industry, who depend on railroads to safely transport large volumes of hazardous materials. Many such companies have access to only one railroad, giving the railroad little incentive to keep prices in check. The House Transportation and Infrastructure Committee also held a rail competition hearing on September 25. To see the testimony or to view the entire October 23 hearing via an archived Webcast, go to http://commerce.senate.gov, and choose hearings.       Back to Top   Phthalates Ban Legislation Introduced in Congress   Following the enactment in California of legislation to ban the manufacture, sale, or distribution of certain children’s products that contain phthalates, similar legislation was introduced in Congress last week. On October 31, Senator Dianne Feinstein (D-CA) introduced S. 2275, and Representative Darlene Hooley (D-OR) introduced H.R. 4030. Several other states are considering similar bans of phthalates in certain products, and there is a concern that the California ban will give these proposals and the new federal bills more momentum and credibility. The European Union and several other countries banned phthalates some time ago.       Back to Top   Chemical Safety Board Urges Distributors to Read Report on Flammable Liquids   The U.S. Chemical Safety and Hazard Investigation Board (CSB) has released an accident investigation report on the June 2006 Universal Form Clamp explosion and fire in Bellwood, IL. In this incident, workers at the plant were heating and mixing flammable solvents in an open top tank. During the heating process, there was a sudden evolution of flammable vapors that ignited, resulting in a fatal explosion and fire. The CSB determined that mechanical design plans that should have illustrated ventilation and other safety systems were not reviewed by a registered design professional before being submitted to the Village of Bellwood. In addition, the CSB found that Bellwood, during its 2002 review of the project, did not ensure compliance with required codes and standards. The CSB encourages chemical distributors involved with flammable liquids to review this study. The full 11-page document is available at http://www.csb.gov under Completed Investigations, April 10, 2007.       Back to Top   OSHA Publishes Compliance Directive on Combustible Dust   Last month, the U.S. Occupational Safety and Health Administration (OSHA) issued a compliance directive outlining policies and procedures for inspections of workplaces that handle combustible dusts. The directive references the combustible dust hazard study recently conducted by the CSB, which found that nearly 280 dust fires and explosions have occurred in U.S. industrial facilities over the past 25 years, resulting in 119 fatalities and over 700 injuries. The purpose of this initiative is to inspect facilities that generate or handle combustible dusts which can pose a deflagration or other fire hazard when suspended in air or some other oxidizing medium over a range of concentrations, regardless of particle size or shape as these deflagrations can lead to explosions. The directive also references several National Fire Protection Association standards. For a copy of the directive, go to http://www.osha.gov/OshDoc/Directive_pdf/CPL_03-00-006.pdf.       Back to Top   First Cargo Tank Rollover Summit Next Week in St. Louis   The first of a series of three Cargo Tank Rollover Summits that NACD is sponsoring with the National Tank Truck Carriers (NTTC) and several other trade associations at the request of the U.S. Department of Transportation (DOT), will be held next Wednesday, November 14, in St. Louis, MO. NACD members and Affiliates are encouraged to participate in these FREE Summits. Next week’s event will take place from 10 a.m. – 4 p.m. at the St. Louis Renaissance Grand Hotel. The next two Summits will take place November 28 from 9 a.m. – 3 p.m. in Baltimore, MD, at the new Westin BWI Airport Hotel, and December 4 from 9 a.m. – 3 p.m. in Oakland, CA, at the Marriott City Center. DOT now considers tank truck rollovers and the release of hazardous materials in those rollovers as one of its top safety concerns, and this is a priority issue in PHMSA’s strategic plan. The Summits will provide an opportunity for tank truck carrier and equipment manufacturer personnel to educate attendees on current training and management approaches to reducing rollovers. The Summits will also give industry and government an opportunity to solicit new ideas for rollover prevention from attendees, as well as to determine what tools they would like to see developed to combat rollovers. To register, please send your name, company, address, phone number, fax number, and e-mail address to Jennifer Gibson at jgibson@nacd.com, by Friday, November 9, for the St. Louis Summit, Tuesday, November 20 for the Baltimore Summit, or Friday, November 30 for the Oakland Summit. For additional information, see “What’s New” at www.nacd.com.       Back to Top   It’s Not Too Late to Sign Up for the EPA Region 3 Conference   EPA Region 3 will hold the 2007 Emergency Preparedness and Prevention & HazMat Spills Conference in Pittsburgh, PA, December 2-5. The conference, “Partnerships: Bridging the Gap Between Preparedness & Response,” is designed for environmental, health, and safety and operations personnel, local emergency planning committee representatives, first responders, HazMat response teams, and law enforcement representatives. The registration fee is $250. The conference will be held at the Hilton Pittsburgh, where the group rate is $100/night. To reserve your room at this special rate, call 1-800-HILTONS by this Friday, November 9. To register for the conference, and for detailed information on the program and venue, visit the conference Web site at http://www.2007conference.org.       Back to Top   RDP Webinar, Internal Audits:  December 18, 2007   Just announced! A Webinar dedicated to the Code that perhaps causes the most questions, Internal Audits, will be presented by one of NACD’s third-party verifiers. Registration is limited so reserve your spot today at https://nacd.webex.com/nacd/onstage/g.php?d=713751519&t=a.       Back to Top   RDP Workshop:  Spring 2008   Mark your calendar and plan on attending the next RDP Code Coordinator Orientation and Workshop, May 5-6, 2008, in Chicago, IL. Please note that attendance at a Workshop is part of your RDP commitment. More information to follow soon!       Back to Top   Reduce Number and Cost of Supplier Audits   Distributors: Do you experience multiple audits from your suppliers? Suppliers: Do you have to audit your distributors? If you answer “yes” to either of these questions, you could save time and money by inquiring about NACD's RDP Verification program. Eliminate multiple audits and multiple audit protocols. Visit /dist_process/srdpv.aspx for more information.       Back to Top   El Conquistador Deadline Has Passed!   Please note that the hotel deadline for the El Conquistador has passed. The $125 room rate is no longer available at this point. If you have not made your room reservation yet, please call the hotel directly to see if they have any rooms left to sell. Call the hotel directly at 787/863-1000 for reservations. Also, please note that we have moved everyone from the Wyndham Riomar Resort to the El Conquistador. We are no longer offering complimentary transportation to and from the Wyndham hotel. If you choose to book a room at the Wyndham at this point, please know that you will be responsible for your own transportation to and from the NACD meetings at the El Conquistador.   The El Conquistador rooming list still shows many attendees with several rooms under their name. If you do not need those rooms or need to cancel a room, please let NACD know first before canceling the reservation since we are still looking for rooms to provide to last minute attendees. If you have not registered for the meeting yet, please note that there will now be a late fee of $100 added to your registration. Attendee registration forms are available at /events/annual_meeting/registration.aspx.       Back to Top   University of Industrial Distribution - Register Now!   UID sold out quickly the past four years so register for the March program as soon as possible! Download the brochure and register on-line by visiting www.univid.org.   2008 marks the 15th year that University of Industrial Distribution (UID) has been serving the distribution industry. UID is a concentrated educational program focused on the unique needs of the industrial wholesale distribution industry. Known worldwide for excellence in education, UID is sponsored by the leading industrial distribution professional associations, in cooperation with the Industrial Distribution Program of Purdue University. Working together, these groups take great pride in providing a superior learning experience.   Who Should Attend CEO’s, Branch Managers, Sales & Marketing Managers, Purchasing Managers, Sales Personnel, Human Resources Directors, Operations Managers, Manufacturers, Personnel working with Distributors, Inventory Managers, and Training Managers -- Anyone looking for an opportunity to improve personal performance and/or the company’s bottom-line!   Program Dates Sunday, March 2 through Wednesday, March 5, 2008   Registration and Fees As a member of NACD, a UID sponsoring organization, registration for the conference is $995 ($1,465 for non-members). For your convenience, the registration fee includes continental breakfasts, buffet-style lunches, and morning & afternoon snacks. Dinner is the responsibility of the registrant.   For a conference brochure, travel information, or to register on-line, visit www.univid.org.        Back to Top   You Be The Chemist Activity Guides  - Now Available!   The You Be The Chemist (YBTC) Activity Guides: Lesson Plans for Making Chemistry Fun (previously known as the YBTC kit) are now available for distribution. The Activity Guides are instructional aides designed to engage students in the science of chemistry and serve as great community outreach tools. Two booklets, one for grades K-4 and another for grades 5-8, will be available for purchase, separately ($12 and $15, respectively) or together ($20).  Each booklet has approximately 30 educator-reviewed lesson plans, in-depth activity sheets, project extensions, and vocabulary lists. Also included is a Resource Guide that highlights important chemists, tips for non-chemistry educators to better teach the subject, and safety information. Animated chemists Newton and Kelvin are back again to help walk grade K-4 students through some of the basic chemistry concepts. New review game material will be included in the 5-8 grade kits to provide students with a fun, interactive review of chemistry concepts. For more information about the YBTC Activity Guides or to place your order, please visit www.chemed.org, call CEF staff at 703/527-6223, or e-mail comments@chemed.org.       Back to Top   Golf to Benefit Chemistry Education   Look for CEF at the Golf Tournament at NACD’s Annual Meeting! On Tuesday, November 27 at the El Conquistador golf course in Las Croabas, Puerto Rico, CEF staff will be on hand to raise money in support of programs and community outreach efforts! This year’s fundraisers include: Mulligans: $10 each or three for $25! You Be The Hot Shot – For a $10 donation, you’ll win a sleeve of Titleist golf balls if you hit the green on your first attempt! Hollywood Distributor Squares – For $10, pick an element on the Distributor Square board and you’ll be entered into a raffle for a chance to win cash prizes!  Hit the links and support chemistry education!        Back to Top