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Regulatory Update: Chemical Safety Board chairman calls for use of General Duty Clause to force inherently safer technology
Last week, The New York Times published a letter from U.S. Chemical Safety and Hazard Investigation Board Chairman Rafael Moure-Eraso stating that "the United States is facing an industrial chemical safety crisis" and calling on the Environmental Protection Agency to use the Clean Air Act General Duty Clause to force chemical facilities to implement inherently safer technologies. The letter was prompted by the recent West Virginia chemical spill, last April's West Fertilizer explosion and other incidents. This is the latest in a multiyear series of calls for the EPA to use the General Duty Clause to mandate IST and the first from a current government official. NACD will send a letter to the CSB and EPA explaining why such IST mandates are problematic. Click here to read Chairman Moure-Eraso's letter.
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Regulatory Update: DHS releases revised CFATS personnel surety proposal
Yesterday, the U.S. Department of Homeland Security published a notice in the Federal Register to announce a 30-day Office of Management and Budget review of the Chemical Facility Anti-Terrorism Standards Personnel Surety Program. This is the last stage in the process before the program is finalized and regulated facilities must comply. According to a fact sheet released with the notice, DHS did not make any significant changes from the previous version of the proposal. NACD filed comments expressing concerns about that proposal, specifically that it was duplicative of other background check programs and the fact that it did not provide a mechanism for DHS to notify facilities if there was a match of an individual to the Terrorist Screening Database. Comments are due to OMB by March 5. Click here for a copy of the proposal.
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Legislative Action Alert: Please send stories on Hazardous Materials Safety Permit denials to NACD
Have you been denied a Hazardous Materials Safety Permit due to Out-of-Service disqualifications? If so, send us your story! Currently, the Federal Motor Carrier Safety Administration can deny a Hazardous Materials Safety Permit to motor carriers solely on the basis of hazardous materials out-of-service disqualifications with no opportunity to appeal or request a waiver. Rep. Charlie Dent, R-Pa., a member of the Appropriations Transportation subcommittee, has been working diligently to require adequate due process for motor carriers. In some cases, these permits are the difference in whether our members are able to continue operating or shut their doors. NACD has reached out to Rep. Dent on this issue and he wants to hear your story in order to help him make a strong case on why this system must be reformed. We will be gathering as many stories from NACD members who have been affected by this issue to send to Rep. Dent's office as soon as possible. If you have a story to share, please send it to Theresa Forbes, Policy Coordinator, Government Affairs, at tforbes@nacd.com by Monday, Feb. 10, with the subject line Call to Action - HMSP Story.
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Regulatory Compliance Resources: Clarification on timing for TSCA Section 12(b) Exporting Obligations
In response to a member inquiry regarding U.S. Environmental Protection Agency updates to the Toxic Substances Control Act Section 12(b) exporter notification list and response time for compliance, NACD Environmental Regulatory Preferred Provider Bergeson & Campbell recently provided the following information: The firm is not aware of a schedule or timeline that EPA follows concerning the update of the Section 12(b) list. This, however, is not really relevant to the question of compliance timing. The listing on the Section 12(b) list is not the trigger for compliance. EPA provides the list as a courtesy to industry, but it is not a legal document. Instead, Section 12(b) obligations are triggered for a chemical when a Section 4 rule for that chemical is issued in final; an order has been issued for the chemical under Section 5; a proposed rule for that chemical is issued under Sections 5 or 6; or if there are pending actions or relief has been granted under Sections 5 or 7 for the chemical.
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Regulatory Update: FMCSA publishes final rule on shutting down carriers for patterns of safety violations
The U.S. Department of Transportation Federal Motor Carrier Safety Administration recently published a final rule in the Federal Register to enable the Agency to suspend or revoke the operating authority registration of for-hire motor carriers that show egregious disregard for safety compliance, permit persons who have shown egregious disregard for safety compliance to exercise controlling influence over their operations, or operate multiple entities under common control to conceal noncompliance with safety regulations. FMCSA states that the final rule implements section 4113 of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users, as amended by section 32112 of the Moving Ahead for Progress in the 21st Century Act and that it is designed to enhance the safety of commercial motor vehicle operations on the nation's highways. The final rule will take effect on Feb. 21, 2014. For a copy of the final rule, click here.
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Tax Update: Senate Finance Committee proposes major changes to depreciation deductions
As part of a series of tax reform proposals in November 2013, the Senate Finance Committee released a tax reform staff discussion draft on cost recovery and accounting. The Cost Recovery and Accounting ("CR&A") proposal repeals several provisions regarding non-depreciation and timing. More significantly, the draft completely redesigns the depreciation deduction. The rules for cost recovery and accounting determine when a business can deduct the cost of investments and how they account for their income. The discussion draft proposes a modernized set of CR&A rules that are "simpler, fairer and lessen tax burdens on small businesses."
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State Policy Update: Majority of states to consider chemical measures this year
Safer States, an organization of environmental and health advocacy groups fighting for chemical restrictions and bans, has announced that at least 33 states will consider policies in 2014 to address toxic chemicals in consumer products. The group notes that some states have already enacted measures to require manufacturers to disclose toxic chemicals in their products. The group also notes that the Toxic Substances Control Act fails to protect consumers from risks of chemicals in commerce. Measures for 2014 include Identification and Disclosure of Chemicals Harmful to Children; Bans on Formaldehyde; Bans on Toxic Flame Retardants; Restrictions on Bisphenol A; policies to restrict phthalates, lead and/or cadmium in children's products; and a focus on using less toxic cleaning supplies in schools. For more information, click here.
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International Regulatory Update: China issues list of restricted chemicals
The Chinese Ministry of Environmental Protection and Chinese Customs have issued a joint notice No. 85 to publish the 2014 version of the List of Toxic Chemicals Restricted to Be Imported into or Exported from China. The new list replaces previous list and became effective on Jan. 1, 2014. Compared to the previous list that includes 158 chemicals, the new list includes 4 new entries covering primarily perfluorooctanesulfonic acid or perfluorooctane sulfonate and their derivatives. Pursuant to China MEP's order 22, companies that deal with import and/or export of those 4 types of chemicals will need to register with the Chemical Registration Centre of China MEP and apply for relevant registration certificates or custom clearance notification prior to import or export. Click here for more information, including the lists.
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INDUSTRY TOPICS


FDA announces FSMA sanitary transport rule
Food Safety News
The U.S Food and Drug Administration has filed its rule on sanitary transportation under the Food Safety Modernization Act, keeping to a court-ordered deadline of Jan. 31. "Sanitary Transportation of Human and Animal Food" will require certain shippers, receivers and carriers who transport food by motor or rail vehicles to take steps to prevent the contamination of human and animal food during transportation.
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TRENDING ARTICLES
Missed last week's issue? See which articles your colleagues read most.

    West Virginia chemical spill poses a new test for lawmakers (The Washington Post)
Senate Democrats push bill to prevent chemical spills (The Hill)
Chicago mayor backs fee for rail cars carrying hazardous materials (Chicago Sun-Times)

Don't be left behind. Click here to see what else you missed.


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OSHA seeks comments on proposed changes to process safety management regulations
Lexology
A federal working group responsible for improving chemical safety and security after the April 2013 explosion at a fertilizer distributor in West, Texas, has articulated several proposed changes to OSHA's process safety management regulations as part of the increased scrutiny on chemical facilities. These tighter and more expansive regulations undoubtedly will gain even more support in the wake of the recent spill at Freedom Industries in West Virginia.
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Ferro on HOS: 'We are not changing the rule'
The Trucker
FMCSA Administrator Anne Ferro threw down the gauntlet when it comes to Hours of Service during the Q & A portion of her keynote speech at the Mid-West Truck & Trailer Show in Peoria, Ill. "We are not changing the rule," Ferro said firmly, as The Trucker listened in to the speech. "This is the first time in a decade that we've got a rule that passed legal challenge. There are today no changes afoot." However, Ferro quickly followed that the door is still open to comments.
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Circuit court remands PHMSA fuel cell rule for adequate explanation
Federal Regulations Advisor
The United States Court of Appeals for the District of Columbia Circuit has remanded a final rule that barred butane fuel cell cartridges from checked luggage in Lilliputian Systems Inc. v. Pipeline and Hazardous Materials Safety Administration. At bottom, the Department of Transportation's Pipeline and Hazardous Materials Safety Administration failed to explain the different treatment of butane fuel cell cartridges from other products containing the same class of hazardous material, such as aerosolized health and beauty products. Lilliputian Systems typifies a problem of agency rulemaking decisions without an adequate explanation in the rulemaking preamble and of judicial review of those inadequate explanations.
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The year of shipping dangerously
Material Handling & Logistics
If you breathed a huge sigh of relief when 2013 ended, figuring things just had to start getting better now that there was a new year on the calendar, then you're not alone. A quick glance at FTR Associates' Shippers Conditions Index — a monthly look at the state of the environment for manufacturers, retailers, wholesalers and other companies with freight that needs to be hauled — reveals that every month in 2013 was worse than the corresponding month in 2012.
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NACD NewsBrief
Colby Horton, Executive Vice President of Publishing, 469.420.2601
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Valerie Hunt, Senior Content Editor, 469.420.2690   
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Caitlin O'Donnell, NACD Manager, Communications, 703.527.6223   

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