February 26, 2008 Volume # 9 Issue # 5

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 EPA Releases 2006 TRI Results – NACD Members Achieve Record Low Average Emissions Chemical Security Legislation Remains on a Fast Track Dates Set for 2008 Chemical Sector Security Summit – July 21-23 2008 Washington Fly-In – April 8-9 – Register Today Economic Stimulus Package Includes Business Incentives Truckers Report Being Asked to Obtain TWIC to Enter Chemical Facilities Massachusetts Lowell Center Releases Two Reports on Chemical Policies European Chemicals Agency Releases New REACH Guidance Documents Responsible Distribution Process New! Mock Audit at RDP Code Coordinator Workshop! 2007 Membership & Performance Data Report RDP & Public Warehouses Presentation Reduce Number and Cost of Supplier Audits Networking and Education OPSEM2008 Facility Tour - Florida Chemical Company, Inc. Annual Meeting Theme: YOU ARE THE DIFFERENCE Chemical Education Foundation California Chemical Distributor Wins Vanguard Award CEF Welcomes New Part-Time Staff Member   Calendar of Events   Education and Training   Annual Meeting   OPSEM EPA Releases 2006 TRI Results – NACD Members Achieve Record Low Average Emissions   Last Thursday, the U.S. Environmental Protection Agency (EPA) made available to the public the 2006 Toxics Release Inventory (TRI) data. For 2006, NACD members reported the lowest average release of toxic emissions per facility in history at 2650 pounds. In addition, the chemical distribution industry reported the lowest total releases in its nine-year reporting history at just over 1.3 million pounds. The total reported releases among NACD member facilities were 789,745 pounds.   The average release per non-NACD facility was 3275 pounds, almost 24 percent higher than the average release per NACD facility. Half of the top ten highest emissions reporters were non-NACD members, including the top one, whose emissions were over 3.75 times higher than the second-highest reporting emitter. The average toxic emissions per NACD member has consistently decreased since the EPA began requiring chemical distributors to report in 1998. In that first year of reporting, NACD members reported an average release of 4190 pounds per facility, well over 50 percent higher than the 2006 average of 2650 pounds. In a statement to the press, NACD President Chris Jahn stated, “The significant and consistent decreases in average emissions per NACD member facility since chemical distributors were required to report their emissions under TRI is an example of the success of NACD’s Responsible Distribution ProcessSM, the Association’s mandatory health, safety, security, and environmental management practice. Through RDP, NACD members strive for continuous improvement in these four areas. The 2006 TRI results demonstrate that NACD members have clearly succeeded in improving environmental performance.” To view the 2006 TRI data, visit the EPA’s TRI Web page at http://www.epa.gov/tri.       Back to Top   Chemical Security Legislation Remains on a Fast Track   The full House Homeland Security Committee, Chaired by Representative Bennie Thompson (D-MS), held a hearing this morning on the latest draft of the Chemical Facility Anti-Terrorism Act of 2008. The Homeland Security Subcommittee on Transportation Security and Infrastructure Protection approved an earlier version of the draft bill by voice vote on January 23, and a full committee mark-up of the bill is tentatively scheduled for next week. The legislation makes several changes to the current law and Chemical Facility Anti-Terrorism Standards (CFATS) regulations that would be problematic for industry. It requires facilities to consider the use of inherently safer technologies (ISTs) and gives DHS the authority to mandate high-risk facilities to use IST, requires worker involvement in the development of security vulnerability assessments and site security plans, requires DHS to rewrite information protection regulations, and gives states and localities the authority to adopt more stringent requirements unless they are in actual conflict with the federal law. The no-preemption language has already been enacted as part of the FY08 Omnibus Appropriations bill. NACD was part of a diverse group of 31 organizations to send a letter to Homeland Security members expressing concerns about the legislation. For more information and to view a recording of the hearing, go to http://homeland.house.gov/Hearings/index.asp?ID=116. The bill does not yet have a number, nor is it posted on the Library of Congress Thomas legislative database because it has not yet been officially introduced. If you would like a copy of the latest draft, or it you have any questions about it, please contact NACD Vice President of Government & Public Affairs Jennifer Gibson at jgibson@nacd.com or 703/527-6223, ext. 103.       Back to Top   Dates Set for 2008 Chemical Sector Security Summit – July 21-23   Mark your calendar for the 2008 Chemical Sector Security Summit to be held July 21-23 in Bethesda, Maryland, just outside Washington, DC. The summit will focus on the latest developments under CFATS and also address timely topics such as transportation security and the Department of Homeland Security’s (DHS) voluntary program for facilities not covered under CFATS. The summit will also provide an excellent opportunity to interact with DHS officials and industry colleagues. There will be no registration fee, and because NACD is a Chemical Sector Coordinating Council (CSCC) participant, you, as a member of NACD, will have first priority to register when the registration period opens. For more information on the summit, and to sign up for e-mail updates on the program, go to http://www.dhs.gov/chemicalsecuritysummit.       Back to Top   2008 Washington Fly-In – April 8-9 – Register Today   Register on-line today for the NACD Washington Fly-In to be held April 8-9. As described above, Congress is already considering significant changes to the Chemical Facility Anti-Terrorism Standards (CFATS) even though the first compliance deadline was only a month ago. Members of Congress need to hear from you, their constituents, about how changes to this regulation at this point would be disruptive to implementation of the significant new CFATS requirements. Your visit to Washington can truly make a difference. Numerous surveys of congressional offices have demonstrated that a face-to-face constituent visit with a Senator, Representative, or one of their staff members is more effective than any other lobbying technique, including phone calls, letters, and sending Washington lobbyists to Capitol Hill. The Fly-In is the perfect opportunity for you to have these face-to-face meetings and discuss chemical security and other issues. 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. This year’s Fly-In coincides with the National Cherry Blossom Festival, and rooms will sell out quickly, so make your hotel reservations today at the group rate of $249 S/D by calling 1-866/505-1001 by March 24 and referencing the NACD Washington Fly-In. Additional information and the on-line registration form are available at /advocacy/washingtonFlyin.aspx. Register early so NACD staff can begin scheduling your congressional appointments for you. If you have any questions or if you would like more information, please contact Jennifer Gibson at jgibson@nacd.com or 703/527-6223, ext. 103.       Back to Top   Economic Stimulus Package Includes Business Incentives   As you know, earlier this month, the President signed into law the “Economic Stimulus Act of 2008,” Public Law No: 110-185. While most of the publicity on this measure focused on the tax rebates for individuals, the package also includes tax incentives for businesses including bonus depreciation and increased expensing under Section 179. The new law provides 50% bonus depreciation for qualified property. Eligible property is the same as that covered in previous bonus depreciation measures, and must be new and placed into service in calendar year 2008. The bonus depreciation is available to businesses of any size. The new law also increases first-year expensing for small businesses for new machinery and equipment purchased in calendar year 2008. The expensing allowance for 2008 increases from $128,000 to $250,000, and the top limit on the cost of the investment increases from $510,000 to $800,000.        Back to Top   Truckers Report Being Asked to Obtain TWIC to Enter Chemical Facilities   NACD has learned from the American Trucking Associations (ATA) and the National Tank Truck Carriers (NTTC) that, in the effort to fulfill their personnel security requirements, chemical facilities have been asking truckers to obtain Transportation Worker Identification Cards (TWIC) before accessing their facilities. Under current law, TWICs are only required for individuals who need unescorted access within Maritime Transportation Security Act (MTSA)-regulated facilities. If a facility is not regulated under MTSA, there is no federal requirement for transportation workers to have a TWIC; however, according to the ATA and NTTC, non-MTSA regulated facilities have been asking truckers to obtain these cards. Because the MTSA TWIC requirement covers thousands of individuals and because the system for processing TWIC applications is currently overloaded, obtaining a TWIC right now is a difficult and time-consuming process. In order to facilitate continued trucker access to chemical facilities, the ATA has asked NACD to urge member companies to accept the commercial driver’s license (CDL) with the hazardous materials endorsement (HME) as a verifiable security credential. DHS has stated that fingerprint-based security threat assessments performed on individuals obtaining HMEs after May 31, 2005, are identical to the assessments performed under TWIC and will satisfy personnel security requirements such as those under CFATS. If you have questions or need more information, please contact Jennifer Gibson at jgibson@nacd.com or 703/527-6223, ext. 103. There is also a wealth of information on the TWIC program on the TSA Web site at http://www.tsa.gov/what_we_do/layers/twic/twic_faqs.shtm#security.       Back to Top   Massachusetts Lowell Center Releases Two Reports on Chemical Policies   Last week, the Lowell Center for Sustainable Production of the University of Massachusetts released two reports on chemical policies in the U.S. The first report, “Presumption of Safety: Limits of Federal Policies on Toxic Substances in Consumer Products” discusses the limitations of the Consumer Product Safety Act and the Toxic Substances Control Act (TSCA) and concludes that, “A more comprehensive, long-term solution to the limitations of current policies is to fundamentally reform the ways in which chemicals are designed and managed in commerce in a way that considers the inherent hazards of substances, as well as their use in all types of products, and the design and application of safer alternatives.” For a copy of this report, go to http://www.sustainableproduction.org/downloads/UMassLowellConsumerProductBrief21508.pdf. The second report, “Options for State Chemicals Policy Reform,” is described as a “Resource Guide” to help states develop policies to obtain more information about chemicals and to encourage the substitution of safer chemicals. To access this 244-page report, go to http://www.sustainableproduction.org/downloads/OptionsforStateChemicalsPolicyReform.pdf.       Back to Top   European Chemicals Agency Releases New REACH Guidance Documents   Last week, the European Chemicals Agency released four new REACH guidance documents covering how to register chemicals under REACH, how to address chemicals used to make other chemicals (known as intermediaries), how REACH may affect the development of new chemicals, and the responsibilities of companies that purchase chemicals to turn them into products that will be sold in the European Union. You can find these documents under “News” at http://echa.europa.eu/home_en.html.       Back to Top   New! Mock Audit at RDP Code Coordinator Workshop!   Mark your calendars for the RDP Code Coordinator Orientation and Workshop in Chicago, IL, on May 5-6, 2008. Register on-line for both the workshop and hotel at /dist_process/workshops.aspx. Space is limited and the workshop is expected to sell out!         Back to Top   2007 Membership & Performance Data Report   Yesterday, NACD Chairman Peter Hess sent a second e-mail request to NACD members to complete the 2007 Membership & Performance Data Report survey. To access the survey, click here, 2007 survey. Please direct this questionnaire to the appropriate person in your office and make sure it is completely filled out and returned to NACD via fax at 703/527-7747, e-mailed to mlang@nacd.com, or mailed no later than Friday, March 14, 2008. There are no changes between these questions and those asked last year. Please note the survey is mandatory for all Regular members to complete; all specific company information will be kept confidential. Thanks to the companies that have returned their reports.       Back to Top   RDP & Public Warehouses Presentation   If you missed the February 4 Webinar, you can download the presentation slides at /dist_process/documents.aspx under "Presentations."       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   OPSEM2008 Facility Tour - Florida Chemical Company, Inc.    The OPSEM Committee has confirmed that Florida Chemical Company, Inc., will host the 2008 facility tour. Their facility is located in Winterhaven, FL, which is a 45-minute bus ride from the hotel. They will also sponsor a Continental breakfast for tour participants. The tour will be held on Wednesday, September 10 from 7:30 a.m. - 11:00 a.m. For more details on their facility go to http://www.floridachemical.com/about.htm.       Back to Top   Annual Meeting Theme: YOU ARE THE DIFFERENCE   Have you made a difference in the way you work and live? Think green chemistry. In keeping with the theme, most of our promotions for the Annual Mmeeting will be by e-mail, and we will limit the number of all promotional materials. More details to come... Mark your calendars now for December 1-5, 2008 in Scottsdale, AZ.       Back to Top   California Chemical Distributor Wins Vanguard Award   Patrick J. Marantette, President of E.T. Horn Company, located in La Mirada, CA, has been announced as the winner of CEF’s 2008 Vanguard Award. The Award honors leaders in the chemical industry who have shown a commitment to promoting the CEF mission of fostering a greater understanding of the science of chemistry and the benefits of chemicals.   Marantette has long been involved with CEF activities. Most notably, he was a member of the Board of Trustees, serving as President for two years. During that time, he worked to establish a sustainable model of growth for CEF, as well as a fee structure for corporate contributions. In addition, Marantette has continuously promoted the importance of the CEF mission among industry members, encouraging the growth of resources on behalf of the Foundation.   Marantette will be honored at the Vanguard Award Ceremony, to be held April 7 at the Hotel Palomar in Arlington, VA. The ceremony will kick off NACD’s Annual Washington Fly-In.   CEF invites you to attend the ceremony to honor a well-deserving member of the chemical industry. If you would like to attend the ceremony, please contact Cori Bradley by e-mail at cbradley@chemed.org or by phone at 703/527-6223 ext.116.       Back to Top   CEF Welcomes New Part-Time Staff Member   CEF would like to welcome the newest addition to our staff, Dominic Cosby. Dominic joins CEF as a part-time administrative assistant. He will be responsible for general inquiries and administrative tasks in support of CEF programs and publications. Dominic can be reached via e-mail at dcosby@chemed.org or by phone at 703/527-6223 ext.115.       Back to Top