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January 05, 2010 Volume # 11 Issue # 2
 
 
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

Responsible Distribution

Networking and Education

Chemical Educational Foundation

Other Items of Interest


 

Regulatory Update – NACD Files Comments on OHSA GHS Proposed Rule

On December 23, NACD submitted comments to the Occupational Safety and Health Administration (OSHA) on the proposed Globally Harmonized System (GHS) of Classification and Labeling of Chemicals. NACD applauded many aspects of the proposed rule, including the standardized Safety Data Sheets (SDSs) and labels, which over time could be beneficial to the industry. However, there are some areas of the rule where NACD expresses concern, specifically the time needed to make an effective transition towards the new GHS. Under the proposed rule, chemical distribution companies and other stakeholders will have three years from the date of the final rule to adopt the GHS labeling and SDS requirements. NACD requested a phased-in implementation to allow downstream members of the supply chain, including distributors, at least 18 months beyond the manufacturers’ deadline. NACD also requested that OSHA develop several on-line informational tools for stakeholders to reference when transitioning to the GHS. The full text of our comments can be found at www.nacd.com/docs/advocacy/2009/pdf/NACDGHSComments%2012-23-09.pdf

OSHA will host several “informal public hearings” on the proposed rule in the coming months at the at the following locations and dates:

March 2, 2010, in Washington, DC
March 31, 2010, in Pittsburgh, PA
April 13, 2010, in Los Angeles, CA

All hearings will begin at 9:30am local time. If anyone is interested in appearing at a hearing to present testimony or question the witnesses, please contact NACD Manager of Government Affairs Chris Parinello at cparinello@nacd.com or 703/527-6223, ext. 3046 for more information.
 

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Legislative Action Needed – Make Plans to Attend the 2010 Washington Fly-In – April 28-29

Plan to attend NACD's 2010 Washington Fly-In, which will take place on April 28-29. With chemical security legislation, TSCA reform, the labor union card check bill, and railroad legislation among the issues before Congress, your participation is more important than ever. Members of Congress need to hear from you, their constituents and business leaders in their communities, on how these proposals will impact your operations and continued ability to provide good jobs.

Fly-in participants will stay at the Westin Washington, DC City Center at 1400 M Street, NW. Late April is an extremely busy time in Washington, and hotel rooms will sell out early, so please make your reservations today by visiting the Westin’s NACD Fly-In Web page or by calling 1-888/627-9035 and mentioning "NACD" to receive the special group rate of $219 S/D.

The program will begin at 2pm on the afternoon of Wednesday, April 28 with a “Congress 101”/Issues Briefing Session, and conclude in the late afternoon of April 29 after a full day of meetings with Senators, Representatives, and federal agency officials. You are also invited to attend the Chemical Educational Foundation Vanguard Award Dinner, which will take place on the evening of Tuesday, April 27.

On-line registration for the Fly-In will be available shortly. If you would like to register now, please click here and return the form by mail or fax. A detailed agenda and other information will also be posted shortly, so please check for updates. If you have any questions, please contact NACD Vice President of Government Affairs Jennifer Gibson at jgibson@nacd.com or 703/527-6223, ext. 3047.
 

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Regulatory Compliance Update – PHMSA Raises Maximum and Minimum Civil Penalties

On December 29, the Pipeline and Hazardous Materials Safety Administration (PHMSA) of the U.S. Department of Transportation (DOT) published a final rule in the Federal Register to raise maximum and minimum civil penalties for a knowing violation of Federal hazardous material transportation law, regulation, order, special permit, or approval. PHMSA has increased the maximum civil penalty to $55,000 from $50,000, and to $110,000 from $100,000 for a violation that results in death, serious illness, or severe injury to any person or substantial destruction of property. PHMSA has also increased the minimum civil penalty to $275 from $250, and to $495 from $450 for a training violation.

The Hazardous Materials Safety and Security Reauthorization Act of 2005 (Title VII of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (``SAFETEA-LU,'' Pub. L. 109-59, 119 Stat. 1905) substantially increased penalties from previous levels. These latest increases are required by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996. The penalty increases are in effect as of December 31, 2009. For a copy of the Federal Register notice announcing the increases, go to http://edocket.access.gpo.gov/2009/pdf/E9-30696.pdf.  

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Regulatory Update – PHMSA Proposes Special Permits for Inclusion in HMR

In the December 22, 2009 Federal Register, PHMSA published a notice of proposed rulemaking to incorporate several DOT Special Permits (SPs) into the Hazardous Materials Regulations. Among the revisions are proposals to authorize external visual inspection of the rupture disc in a non-reclosing pressure relief device of a rail tank car and to allow variation in the packing method for packagings prepared in accordance with Section 173.13. For a copy of the proposal and a complete list of SPs that are candidates for inclusion in the HMR, go to http://edocket.access.gpo.gov/2009/pdf/E9-30280.pdf. Comments are due to PHMSA by February 22, 2009.  NACD will work with the Transportation Issues Task Group to develop comments.

In a late December meeting, PHMSA Administrator Cynthia Quarterman, told NACD Vice President of Government Affairs Jennifer Gibson that the December 22 notice will be the first in a series of proposals to incorporate SPs into the HMR. Factors that will influence whether a SP is a candidate for inclusion in the HMR include the safety record, the broad application of the SP, the suitability of provisions in the SP for incorporation into the HMR, other rulemaking activity in related areas, and DOT priorities. Interested parties are invited to submit recommendations to PHMSA. If you know if any SPs that would be good candidates for inclusion into the HMR or if you would like to be involved in the effort to develop comments on the December 22 proposal, please contact Jennifer Gibson at jgibson@nacd.com or 703/527-6223, ext. 3047.
 

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Regulatory Update – PHMSA Publishes Corrections to HM-215-J Final Rule

Yesterday, the Pipeline and Hazardous Materials Safety Administration (PHMSA) published a final rule in the Federal Register to make corrections to the HM-215-J final rule, which the agency issued on January 14, 2009. HM-215-J included the most recent amendments to the International Maritime Dangerous Goods Code, the International Civil Aviation Organization’s Technical Instructions for the Safe Transport of Dangerous Goods by Air, the United Nations Recommendations on the Transport of Dangerous Goods, and Transport Canada’s Transportation of Dangerous Goods Regulations. The final rule amended the hazardous materials table (HMT) to maintain alignment with international standards, including changes to proper shipping names, hazard classes, packing groups, special provisions, packaging authorizations, air transport quantity limitations, and vessel stowage requirements. None of the January 4, 2010 corrections are intended to result in new requirements, but to clarify and provide a better understanding of the January 2009 final rule. Although the title of the January 4 final rule is focused on batteries, be sure to take a close look at the changes as most of them address areas such as the HMT and hazardous materials packaging and marking. The amendments take effect immediately. For a copy of the final rule, go to http://edocket.access.gpo.gov/2010/pdf/E9-30556.pdf

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Regulatory Update – EPA Announces Several Chemical Action Plans

The Environmental Protection Agency (EPA) announced plans to take action on four chemicals, including phthalates, deemed “chemicals of concern” as part of a growing effort towards more regulation of the industry. The establishment of a chemicals of concern list could lead to more stringent regulations on certain chemicals. In addition to phthalates, EPA is also examining short-chain chlorinated paraffins, polybrominated diphenyl ethers (PBDEs) and perfluorinated chemicals, including PFOA. EPA also recently announced that three U.S. companies agreed to phase out DecaBDE, a widely used fire retardant chemical. Other actions besides the creation of a chemicals of concern list include beginning a process that could lead to risk reductions actions under section 6 of the Toxic Substances Control Act (TSCA) for several phthalates, short-chain chlorinated paraffins, and perfluorinated chemicals, and reinforcing the DecaBDE phase-out – which will take place over three years – with requirements to ensure that any new uses of PBDEs are reviewed by EPA prior to returning to the market. For more information on this EPA initiative, visit www.epa.gov/oppt/existingchemicals/index.html

EPA claims it is using its authority under TSCA and is calling for an overhaul of the 1976 law. TSCA reform is a key issue for many industry stakeholders and is expected to begin in Congress early this year. NACD will continue to advocate for sensible reform that protects human health and the environment but does not place the economic burden of reform on chemical distribution companies.

In related news, yesterday the Washington Post ran a front page story blasting TSCA for putting people’s lives at risk by allowing chemical companies to keep information confidential. With TSCA reform legislation expected soon the timing of this front-page article is interesting. For a copy of the article, go to www.washingtonpost.com/wp-dyn/content/article/2010/01/03/AR2010010302110.html?sub=AR. .
 

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Regulatory Update – FMCSA Announces Public Listening Sessions on Hours of Service

In today’s Federal Register issue, the Federal Motor Carrier Safety Administration (FMCSA) announced that it will hold three public listening sessions on potential hours-of-service (HOS) regulations. Under an October 26, 2009 settlement agreement resulting from Public Citizen’s suit against the current HOS regulations, FMCSA must submit a new draft notice of proposed rulemaking to the Office of Management and Budget within nine months and publish a new final rule within 21 months of the date of the settlement agreement. Until a new final rule is published, the current HOS rules will remain in effect.

In today’s notice, FMCSA poses several questions for discussion regarding rest and on-duty time, a restart to the 60 and 70 hour rule, sleeper berth use, loading and unloading time, and adverse impacts on driver health. The listening sessions will take place on January 19 in Arlington, VA, January 22 at the Dallas Fort Worth Airport, and January 25 in Los Angeles. Each will take place from 9am to 5pm. For more information, including specific details on the listening sessions, go to http://edocket.access.gpo.gov/2010/pdf/E9-31194.pdf

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Regulatory Compliance Update – Mandatory Enforcement of Importer Security Filing Requirements (10+2) Begins January 26

Later this month, on January 26, mandatory enforcement will begin for the Customs and Border Protection (CBP) Importer Security Filing and Additional Carrier Requirements, or “10+2” rule. This regulation requires importers or their agents to submit an Importer Security Filing (ISF) with eight data elements, no later than 24 hours before the cargo is loaded on to a vessel destined for the U.S. These elements include the seller, the buyer, the importer of record number/foreign trade zone applicant identification number, the consignee number(s), the manufacturer (or supplier), the ship-to party, the country of origin, and the commodity Harmonized Tariff Schedule of the U.S. (HTSUS) number. The ISF must also include two data elements – the container stuffing location and the consolidator – that must be submitted as early as possible, but no later than 24 hours prior to the ship's arrival at a U.S. port. Finally, the rule requires five data elements in the ISF for shipments consisting entirely of foreign cargo remaining on board (FROB), shipments consisting entirely of goods intended to be transported in-bond as an immediate exportation (IE), or shipments for transportation and exportation (T&E). Importer ISF for IE and T&E shipments must be submitted no later than 24 hours before the cargo is loaded on to a vessel destined for the U.S. and any time prior to lading for FROB shipments. The five data elements include the booking party, the foreign port of unlading, the place of delivery, the ship-to party, and the commodity HTSUS number.

The 10+2 rule took effect on January 26, 2009, but provided for a 12-month enforcement grace period. Once this grace period ends on January 26, 2010, CBP will be able to impose fines of $5000 per violation for submission of inaccurate, incomplete, or untimely filings and to withhold the release or transfer of cargo. For more information on the 10+2 rule, go to http://www.cbp.gov/xp/cgov/trade/cargo_security/carriers/security_filing/.  

In related news, on December 24, CBP published correcting amendments to the Importer Security rule in the Federal Register. The final rule, which CPB published on November 25, 2008, inadvertently omitted the liability amounts for breach of the importer security filing bond and neglected to make a provision for using the ISF bond to secure a single ISF transaction. The correction notice clarifies the bond terms applicable to the ISF bond as set forth in an Appendix to the CBP bond regulations by adding the liability amounts for a breach of the bond and by adding a paragraph to cover a single transaction. For a copy of the correction notice, go to http://edocket.access.gpo.gov/2009/pdf/E9-30570.pdf
 

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Regulatory Update – OSHA Administrator Calls for More Regulation of Chemicals

In remarks prepared for the National Institute for Occupational Safety and Health (NIOSH), OSHA Administrator David Michaels called for a reform of our nation’s hazard and chemical laws. Calling the current system “inefficient, incomplete, and inadequate,” Michaels spoke highly of the European Union’s controversial REACH program, saying that REACH “also, finally, challenging the old paradigm where chemicals are considered innocent until proven guilty - and all too often proven guilty by the sick and dead bodies of American workers.” For the text of Michael’s full comments, go to www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=SPEECHES&p_id=2119

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Regulatory Compliance Resources – DHS to Begin Series of Explosive Threat Awareness Training Workshops

On Wednesday, January 27 in Plano, TX, the Department of Homeland Security (DHS) will hold the first in a series of Explosive Threat Awareness Training workshops. The January 27 workshop will include an update on the Chemical Facility Anti-Terrorism Standards (CFATS) and will assist facilities in meeting CFATS Risk Based Performance Standards (RBPS).

The course will also benefit security professionals dealing with the threat of explosive incidents and help reduce vulnerabilities associated with improvised explosive decvices.  Attendees will receive a Certificate of Participation upon course completion.

There is no charge to participate, but seating is limited. To reserve your seat, send an e-mail to chemicalsector@dhs.gov  The registration deadline is January 22, 2010. Click here for a copy of the complete workshop flyer.

Additional workshops will be held in the following cities: 

Tampa, FL - February

New Orleans, LA - March

St. Louis, MO - April

Seattle, WA - May

Buffalo, NY - June 

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Free RDP Webinar: Carrier Selection

Join RDP Director, Mike Lang, and National Tank Truck Carrier's President, John Conley, for a special webinar presentation on Carrier Selection. Issues such as carrier safety and fitness, security, regulatory compliance, and more will be reviewed. A question and answer session will follow the presentation. If you haven’t registered yet, please do so as soon as possible at Carrier Selection.
 

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RDP’s 4th Cycle Update

Even though RDP’s 4th Cycle begins on July 1, NACD is beginning to roll out new and improved resources for the upcoming on-site verifications.  These include:

  • A new RDP Code Coordinator manual, which will contain contact information, FAQs, website updates, RDP guidance, and more.
  • A revised online RDPV Profile and Protocol. We cut down the protocol questions by about a half (but requested content is mostly unchanged) AND built in a new archival and copy feature, meaning that you don’t need to recreate information from the previous protocol!
  • A new document, “RDPV Protocol and Guidance Document”, which contains more information about requested protocol information, examples, and more. Plus, it can be accessed directly when answering each online protocol question!
  • Webinars on these resources.

Be on the lookout for information in NewsBriefs and email blasts about these enhancements to the RDP program. Also, now is the time for you to take advantage of the RDP Mentoring Program, with Doug Kutz (dougk13@comcast.net). Find out how Doug can assist you electronically and over the phone free! If you need Doug to come to your facility for up to one business day, all you pay is the travel-related expenses!

 

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Great Results About NACD Members!

According to NACD's 2008 Membership and Performance Report, NACD members made 5.2 million chemical distribution shipments, were responsible for 81 billion pounds of delivered product, and drove more than 199 million miles in the distribution of these chemicals throughout 2008.

These increases are remarkable in a down economy. NACD members operated lean this past year and were consistent in delivering timely products safely. A continued commitment to safety was demonstrated again in 2008. While miles driven rose over 2007 numbers, NACD member companies reduced reportable vehicular accidents or spills by an astonishing 75.7%, and recordable injuries due to vehicular accidents or transportation spills decreased by 46.2% from 2007, according to the 2008. NACD member companies make a delivery every 6 seconds with a fatality rate twice as low as DOT’s target goal.

To review the report, click 2008 Membership & Performance Report and scroll down the page.
 

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Save the Date for the 2010 Western Region Meeting

Save the date on your calendar for the 2010 Western Region Meeting
on April 13 – 17, 2010

Mauna Lani Bay Hotel and Bungalows
68-1400 Mauna Lani Drive
Kohala Coast, Hawaii 96743

Reservations: 800/367-2323
NACD room rate is $235 per night for Run of Ocean

For additional hotel information, click here.

Call NACD at 703/527-6223 for additional information.
 

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Central Region Selects Location for 2010 Meeting

The Central Region 2010 Meeting will be held at the French Lick Resort in French Lick, Indiana. The meeting will be held June 21-22, 2010 and will include a golf outing on June 21 and an all day meeting on June 22.

The resort has a great Donald Ross and Pete Dye golf course on site. After our golf outing, the course will begin preparations for the PGA.

Visit the Central Region Web site for details to come.
 

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2010 Southern Region Meeting on July 12-15, 2010, “How do they Do It... and How can we do it Too?

Attendees will enjoy three ½ day training sessions from the Disney Institute. Each day will build on the previous day. Our focus will be on Leadership and People management with a theme of: “How do they Do It... and How can we do it Too?"

LOCATION:
Disney's BoardWalk Resort
2101 Epcot Resorts Boulevard
Lake Buena Vista, FL 32830

For additional hotel information, click here.

The room rate at Disney’s BoardWalk Resort for NACD guests is $159/night, including:
• free transportation to and from the Orlando airport with Disney’s Magical Express (a $55/value each direction),
• free luggage handling and delivery,
• free parking, and
• free Internet service.

Make your reservation today at the Disney's BoardWalk Resort to join us! Call 407/934-3372 and reference our room block code: NACD - G0552209
 

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Limited Enrollment, Register Your Team Today for the University of Industrial Distribution (UID) - Sponsored by NACD

Course Snapshot
Here is a view of just one day of the UID Agenda, courses include:

  • Creating a Winning Marketing Plan
  • Improving the Distributor’s Bottom Line
  • You Can Always Sell More – How to Improve Any Sales Force
  • Creating a Competitive Distinction
  • Leadership and Delegation for Distribution Managers
  • Differentiating Your Distribution Company – A Winning Strategy

Program Dates
Monday, March 8, 2010 through Thursday, March 11, 2010

Who Should Attend
Anyone looking for an opportunity to improve personal performance and/or the company’s bottom-line!

Cost
US$995 ( a $500 savings off the full rate for NACD members). This conference always sells-out. Register your staff Today. To register and for further program information, click here.
 

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Save the Date – CEF Vanguard Award Ceremony

CEF invites you to join us at the Westin City Center in Washington, DC, for the presentation of the 2010 Vanguard Award. The award ceremony will take place on Tuesday, April 27, 2010, with a 6:00 pm reception followed by dinner. 

The Vanguard Award honors an individual whose leadership, commitment, and outreach efforts have advanced the Foundation’s mission of fostering a greater understanding of chemistry, the benefits of chemicals, and the importance of chemical safety awareness. The event kicks off the National Association of Chemical Distributors’ Washington Fly-In week and offers an excellent opportunity to network with your colleagues. Attendees will include members of the chemical distribution and supplier communities, as well as allied organizations.

To reserve your seat, please contact Suzette Bucher by e-mail at sbucher@chemed.org  or by phone at 703/527-6223. For more information, visit the CEF Web site at http://www.chemed.org/industry_awards/vanguard.aspx.  

 

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NACD Sponsors CEF Academic Program

NACD is sponsoring CEF’s You Be The Chemist (YBTC) Challenge program at two Virginia middle schools. Students from Harper Park Middle School in Leesburg and Eagle Ridge Middle School in Ashburn will participate in Local Challenges on January 7, 2010. The top four winners from each school will move on to compete in the Virginia State Challenge held on February 8, 2010.

The YBTC Challenge is a question and answer academic competition that aims to engage grades 5-8 students in chemistry through a dynamic event that partners members of the chemical industry with schools and organizations in the communities in which they operate. Visit the YBTC Challenge section of the CEF Web site at http://www.chemed.org/ybtc/challenge/home.aspx for more information about the program. 

 

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Know a company that should be an NACD Affiliate? Let us know!

Are you working with a warehouse, trucking company, vendor, or consultant that should join NACD as an Affiliate? Let us know! If you refer a Prospective Affiliate, and they join, your company will recieve $300 off its next NACD meeting registration.

Contact Larry Bafundo, Manager of Member Advancement and Communications, at (703) 527-6223; Ext. 3042 or lbafundo@nacd.com with any leads or for more information.

 

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