December 18, 2007 Volume # 8 Issue # 26

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 Draft Chemical Security Legislation Released – Hearing Held in House Subcommittee Chemical Security Language Included in Year-End Omnibus Appropriations Bill FMCSA Releases Interim Final Rule to Reissue Hours-of-Service  Rules GAO Releases Scathing Report on EPA’s TRI Changes Congressional Activities Make NACD Member Fly-In Participation Important  – April 8-9 Your Customers in Massachusetts Could be Impacted by New TURA Changes China and U.S. Sign Agreements on Product Safety Responsible Distribution Process RDP Internal Audits Webinar Reduce Number and Cost of Supplier Audits Networking and Education Annual Meeting Survey Deadline - December 28, 2007 Affiliates - Call for Papers and Speaker Topics NACD Western Region Meeting – Save the Dates: January 8 and April 23-26, 2008 Chemical Education Foundation New Program Honors Texas Chemical Company New Activity Guides Win National Media Contest Submit Nominations for CEF's Vanguard Award   Calendar of Events   Education and Training   OPSEM Draft Chemical Security Legislation Released – Hearing Held in House Subcommittee   Earlier this month, House Homeland Security Committee Chairman Bennie Thompson (D-MS) released draft legislation to repeal the chemical security law enacted last year and to replace it with much more prescriptive requirements. The draft bill would require high-risk facilities to evaluate the use of inherently safer technologies (ISTs) and, if they determine it is not feasible to adopt the ISTs, to appeal to a newly created “Panel on Methods to Reduce Consequences of a Terrorist Attack” for a final determination. The draft would also explicitly allow states and localities to adopt chemical security laws and regulations more stringent than the federal standards, require more employee involvement in the development of site security plans, establish a new information protection system to replace the Chemical Terrorism Vulnerability Information (CVI) requirements under the current regulations, subject those not in compliance with the new law to criminal penalties, and establish a program to certify third-party auditors. Last Wednesday, the House Homeland Security Subcommittee on Transportation Security and Infrastructure Protection held a hearing on the draft bill. Witnesses included Department of Homeland Security (DHS) Assistant Secretary for Infrastructure Protection Bob Stephan and representatives from the New Jersey Department of Environmental Protection, BASF Corporation, the International Chemical Workers Union Council, and the Mary Kay O’Connor Process Safety Center. To view the witness testimony or a recording of the hearing, go to http://hsc.house.gov/hearings. It is likely that Chairman Thompson will officially introduce the bill in early 2008. If you would like a copy of the draft, please contact NACD Vice President of Government & Public Affairs Jennifer Gibson at jgibson@nacd.com or 703/527-6223, ext. 103.       Back to Top   Chemical Security Language Included in Year-End Omnibus Appropriations Bill   Despite objections from NACD and others in the chemical industry, the massive fiscal year 2008 omnibus appropriations bill passed by the House of Representatives late last night includes language to allow states and localities to adopt chemical security laws and regulations more stringent than the federal standards unless they are in direct conflict with federal law. Although many “policy riders” were removed from the omnibus appropriations bill, this one survived because it had been included in both the House and Senate versions of the Homeland Security Appropriations bill. The effort to include this problematic language was spearheaded by Senator Frank Lautenberg (D), whose state of New Jersey has stringent chemical security regulations in place. The Senate is expected to take up the bill later this afternoon.       Back to Top   FMCSA Releases Interim Final Rule to Reissue Hours-of-Service Rules   Yesterday, the Federal Motor Carrier Safety Administration (FMCSA) published in the Federal Register an interim final rule to reissue the hours-of-service (HOS) rules struck down by the U.S. District Court of Appeals for the D.C. Circuit last July. The interim final rule takes effect on December 27, the day that a stay of the court’s decision granted to the American Trucking Associations expires. The rule allows drivers up to 11 hours of driving time within a 14-hour, non-extendable window from the start of the workday, following 10 consecutive hours off-duty (11-hour limit). It also allows drivers to restart calculations of the weekly on-duty time limits after they have had at least 34 consecutive hours off-duty. FMCSA states that the interim final rule is necessary to prevent disruption to enforcement of and compliance with the HOS rules as well as potential negative impacts on the timely delivery of essential goods and services. The agency is accepting comments on the interim final rule until February 15 and plans to issue a final rule in 2008 that addresses the issues raised by the court. If you would like a copy of the interim final rule, go to http://www.gpoaccess.gov/fr/index.html, type “page 71247” into the top box, and hit the submit key, or contact Jennifer Gibson at jgibson@nacd.com or 703/527-6223, ext. 103.       Back to Top   GAO Releases Scathing Report on EPA’s TRI Changes   Last week, the Government Accountability Office (GAO) released a report entitled “Toxic Chemical Releases: EPA Actions Could Reduce Environmental Information Available to Many Communities.” The report responds to a request made by Senate Environment and Public Works (EPW) Committee Chair Barbara Boxer (D-CA) and Senators Frank Lautenberg (D-NJ) and Olympia Snowe (R-ME) to investigate how the Environmental Protection Agency (EPA) went about finalizing a December 2006 final rule that revised the agency’s Toxics Release Inventory (TRI) reporting requirements to expand the eligibility of facilities to use of the less-burdensome Form A in lieu of the more extensive Form R. The report states that the EPA did not follow agency guidelines designed to ensure appropriate scientific, economic, and policy analyses; rushed the process in order to meet a commitment to the Office of Management and Budget (OMB) to finish by the close of 2006; underestimated the amount of information that would become unavailable to individual communities; and overstated the actual amount of relief the changes would provide. The report also recommends that Congress consider legislation to overturn the 2006 final rule because EPA did not follow an earlier GAO recommendation to complete a more thorough cost-benefit analysis. (The Senate EPW Committee already approved such legislation in July.) Also included in the report are letters from both EPA and OMB disagreeing with the GAO’s conclusions. If you would like a copy of the report, go to http://www.gao.gov, type GAO-08-128 into the top box and hit the search key or contact Jennifer Gibson at jgibson@nacd.com or 703/527-6223, ext. 103.       Back to Top   Congressional Activities Make NACD Member Fly-In Participation Important  – April 8-9   With action on chemical security legislation now guaranteed in 2008, it is important to contact your Senators and Representatives to let them know that the current chemical security regulations are working and should not be changed. As constituents and business owners in their states and districts you are in the best position to explain why some proposals such as being forced to appeal to an “IST Appeals Panel” (see item 1) are unworkable. The 2008 NACD Washington Fly-In, to take place April 8-9, is the perfect opportunity for you to do just that. The host hotel for the Fly-In is the brand new Hotel Palomar in Arlington, VA, just down the street from the NACD office and convenient to the Washington Metro, Capitol Hill, federal agencies, and numerous excellent restaurants. It is not too early to make your hotel reservations at the group rate of $249 S/D by calling 1-866/505-1001 and referencing the NACD Washington Fly-In. Registration and additional information on the 2008 Fly-In program will be available over the next few weeks, and updates will be posted at /advocacy/washingtonFlyin.aspx. For additional information, contact Jennifer Gibson at jgibson@nacd.com or 703/527-6223, ext. 103.       Back to Top   Your Customers in Massachusetts Could be Impacted by New TURA Changes   The Massachusetts Chemistry and Technology Alliance (MCTA) has brought a significant regulatory change to NACD’s attention. The Massachusetts Toxic Use Reduction Act (TURA), in effect since 1991, is in the process changing because of compromise reform legislation enacted in 2006. Companies with operating facilities in Massachusetts file annual use reporting information to the Massachusetts Department of Environmental Protection (MADEP), along with annual TURA fees. Every two years these companies also submit chemical use reduction plans to the MADEP, which must be "signed" by a certified TURA planner. Beginning in 2008, the following significant changes will take place. First, the TURA Administrative Council will begin to designate Higher Hazard Chemicals (HHC) and Lower Hazard Chemicals (LHC). Second, certain CERCLA chemicals will be delisted  and will no longer have to be reported. Third, TURA fees will not have to be paid to the state for any LHC. Finally, beginning in 2009, there could be higher fees for anyone reporting HHC. MADEP proposed regulations have named cadmium, cadmium compounds, and trichloroethylene as the first of three HHC, which means that any use of these chemicals in the manufacturing process, greater than 1000 pounds, will need to be tracked during 2008, and then reported to MADEP in 2009. Reporting thresholds for chemicals other than HHC remain at 25,000 pounds. While these changes may not have much impact on chemical distributors, they will impact distributors’ Massachusetts customers who use greater than 1000 pounds of an HHC chemical but less than 25,000 pounds, especially if that customer is not already a TURA filer. MCTA has been asked by the state government to assist in identifying potentially impacted Massachusetts manufacturing companies that currently use at least 1000 pounds of TCE, cadmium, or cadmium compounds. MCTA has contacted all their chemical distributor members to survey them about customers purchasing smaller quantities of the three HHCs and asked them to help to communicate the proposed regulatory changes to their respective customers. If you are not a member of MCTA and need more information on this issue, please contact CEO David Wawer at 617/451-6282 or wawer@sbcglobal.net or Jennifer Gibson at NACD.       Back to Top   China and U.S. Sign Agreements on Product Safety   Last week, the United States and Chinese governments signed agreements to improve the safety of food, feed, drugs, and medical devices. The agreements involve registration, certification, and verification. First, all Chinese producers of items covered under the agreement must register with Chinese authorities, who will share that data with the U.S Department of Health and Human Services (HHS). Second, Chinese regulators will certify that food and feed covered by the agreement meet U.S. standards and will also pursue a method to certify medical products. Third, to verify compliance, the Chinese will adopt quality-assurance methods for each stage of the process. For example, Chinese authorities will develop a comprehensive electronic tracking system to follow products from production to exportation in order to ensure that growers and manufacturers are building quality into their processes. For more information, including copies of the agreements, go to http://www.hhs.gov.       Back to Top   RDP Internal Audits Webinar   You can play back the RDP Internal Audits Webinar that was conducted today, December 18th. For continuous improvement in your company’s RDPV process, click on RDP Internal Audits.   (On the NACD Web site, under “Responsible Distribution Process,” click on the “RDP Documents & Logos” link. Then go to the “Presentations” section and click on the “RDP Internal Audits” link.)       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     Annual Meeting Survey Deadline - December 28, 2007   On December 6 the Annual Meeting survey was sent out to all attendees. By completing this survey by December 28, 2007, your name will be entered in a raffle to win either a free golf registration or a free tour for the 2008 meeting in Scottsdale, AZ. We look forward to hearing your good suggestions for next year! Thanks to all that have already completed the survey. To complete your survey now, click on the following links: Attendee/Exhibitor Survey - /surveys/survey.aspx?survey=12 Spouse/Guest Survey - /surveys/survey.aspx?survey=11       Back to Top   Affiliates - Call for Papers and Speaker Topics   One great benefit available to Affiliates is the opportunity to submit a proposal for speaker topic ideas for education sessions and/or articles. As an NACD Affiliate, your company has expertise and knowledge on many current trends and issues in the chemical distribution industry. Think about a speaker and/or topic your company can provide for purposes of educating NACD members. Ideas will be considered for the NACD Annual Meeting, OPSEM, Regional Meetings, RDP Workshops, the Washington Fly-In, and stand-alone educational sessions. Topics will also be considered for articles in the Chemical Distributor magazine. All submissions are due by January 11, 2008 and can be sent to kvanburen@nacd.com. Submissions should be for educational and informative purposes only. NACD will review all proposals and consider appropriate and applicable submissions based on the needs of our various meetings and publications. NACD cannot guarantee that ideas or submissions will be selected. For more information, please visit /events/development/.        Back to Top     NACD Western Region Meeting – Save the Dates: January 8 and April 23-26, 2008     Read about...         Back to Top   New Program Honors Texas Chemical Company   SACHEM, Inc. of Cleburne, TX, has been named the first-ever Educational Outreach Award winner of SOCMA’s Performance Improvement Awards Program. The award, created through a partnership between CEF and SOCMA, is an avenue by which both organizations hope to expand the community outreach efforts of SOCMA’s members. SACHEM was awarded for their efforts to promote science awareness within local schools and was recognized at SOCMA’s Annual Dinner, held last week in New York City. In addition, the charity or community organization of SACHEM's choice will receive a $2500 donation from CEF.       Back to Top   New Activity Guides Win National Media Contest   CEF’s You Be The Chemist Activity Guides: Lesson Plans for Making Chemistry Fun have won second place in the Educational Category of the Association TRENDS All Media Contest! Judging was based on layout, appearance, style, content, appropriateness, effectiveness, print quality and presentation. Association TRENDS is the weekly national newspaper for association executives and suppliers for the latest news, information and trends in association management. CEF has previously won in this category for the You Be The Chemist Kit and You Be The Chemist Challenge.       Back to Top   Submit Nominations for CEF's Vanguard Award   There is still time to submit nominations for CEF’s Vanguard Award. Each year, the award is presented to a member of the chemical industry whose leadership and outreach initiatives help advance the Foundation’s mission of fostering a greater understanding of the science and value of chemistry and chemicals. For more information or to download the submission form, please visit the CEF Web site at www.chemed.org.   Please mark your calendars and join us for the Vanguard Award Ceremony on April 7, 2007, in Washington, DC. The event will kick off NACD’s Washington Fly-In week.       Back to Top