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Legislative Update: House subcommittee holds hearing on CFATS extension
Last week, House Subcommittee on Cybersecurity, Infrastructure Protection, and Security Technologies Chairman Patrick Meehan, R-Pa., held a hearing to discuss the merits of the recently introduced Chemical Facility Anti-Terrorism Standards Authorization and Accountability Act of 2014, H.R. 4007. The subcommittee heard from the Department of Homeland Security as well as industry representatives during the hearing. Echoing the sentiments of DHS Secretary Jeh Johnson, who earlier in the week voiced his support for the House CFATS legislation, Assistant Secretary of Infrastructure Protection Caitlin Durkovich stated that she supports a multi-year authorization of CFATS and that she does not think a complete overhaul of the program is necessary. Likewise, industry representatives also backed the bill because it provides certainty in the program, which will allow for long term capital planning with regards to implementing security measures. More action on CFATS legislation is expected from the Committee on Homeland Security in the coming months. To learn more or to view clips from last week's hearing, click here. If you would like to contact your representative to urge their support of H.R. 4007, please click here.
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Regulatory Update: NACD files extension request for Process Safety Management comments to OSHA
Last week, NACD sent a request for a deadline extension for comments to the U.S. Occupational Safety and Health Administration on the agency's Request for Information on Process Safety Management and Prevention of Major Chemical Accidents. NACD requested that the deadline be extended until March 31 from March 10. The RFI is in response to President Barack Obama's Executive Order 13650 — Improving Chemical Facility Safety and Security. Some of the options include expanding PSM coverage and requirements for reactive hazards, updating the list of chemicals subject to the PSM regulations, requiring third-party compliance audits, and narrowing the retail facilities PSM exemption. OSHA will use the information received in response to this RFI to determine what regulatory actions, if any, it may take. Extending the deadline until March 31 will align it with the deadline for the EO's solicitation for input on its 85-question policy options paper, which addresses PSM as well as other issues such as the Environmental Protection Agency's Risk Management Program, the Department of Homeland Security's Chemical Facility Anti-Terrorism Standards, industry best practices, inherently safer technologies and improved agency coordination. On Monday, OSHA replied to the industry coalition that they would extend the deadline to March 31. Likely due to federal agencies being closed on Monday, OSHA has yet to make a public announcement of this deadline extension.
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Legislative Update: NACD signs letter in support of regulatory reform bills
Last week, NACD signed onto a letter urging House members to vote in favor of passing H.R. 2804, the Achieving Less Excess in Regulation and Requiring Transparency Act. The ALERRT Act brings together the principles from four separate regulatory reform bills, attempting to bring accountability, transparency, and fairness to the regulatory process. The legislation provides for more participation by those who work with and are regulated by federal agencies. It also allows greater public access to the data on which agencies rely in their rulemaking process. To view the letter in its entirety, please click here.
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Regulatory Update: DOT withdraws loading and unloading proposed rule
Last week, the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration published a notice in the Federal Register withdrawing HM-247, which would have to required persons involved in the loading and unloading of cargo tank motor vehicles to conduct risk assessments and implement specific operating procedures. NACD filed comments on the proposal when PHMSA issued it in 2011. In the comments, NACD expressed support for the concept of including reasonable standards to address loading and unloading operations in the Hazardous Materials Regulations, but said that the measures included in HM-247 were much too extensive and prescriptive. The comments focused heavily on PHMSA's underestimation of the resources and effort it would take for facilities to conduct the risk assessments and implement the operating procedures outlined in the proposal.
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Legislative Update: Ways and Means chairman releases tax reform package
On Wednesday, Ways and Means Committee Chairman Dave Camp, R-Mich., released the "Tax Reform Act of 2014." Chairman Camp released his detailed discussion draft, almost 1,000 pages, to end the debate about needing to do tax reform. Camp's draft is not without criticism. Even before the plan was released, Senate Majority Leader Mitch McConnell, R-Ky., told reporters that a tax overhaul would not make it through Congress this year. Click here to find out which deductions and tax liabilities would change under Rep. Camp's plan.
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Regulatory Update: DOT issues another Emergency Order on crude oil shipments
Effective immediately, those who offer crude oil for transportation by rail must ensure that the product is properly tested and classified in accordance with federal safety regulations. The DOT's fourth Emergency Order in less than a year also requires that all Class III crude oil shipments be designated as Packing Group I or II, thereby requiring the use of a more robust tank car. Packing Group III, a lower risk designation, will not be accepted, until further notice. PHMSA actions include unannounced spot inspections and investigations, data collection and sampling at strategic locations that service crude oil.
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Legislative Update: Subcommittee hearing on 'Improving the nation's highway freight network'
The Transportation and Infrastructure Subcommittee on Highways and Transit met last Thursday to receive testimony related to highway freight mobility. Priority for this Congress is the consideration of the recommendations found in the special panel's report on Improving the Nation's Highway Freight Network and building on the foundation of Moving Ahead for Progress in the 21st Century Act.
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Legislative Update: Draft House bill to modernize TSCA made public
On Feb. 27, a draft House bill to modernize the Toxic Substances Control Act was made public. Congressman John Shimkus, Chairman of the House Energy and Commerce Committee's Subcommittee on Environment and the Economy, released a discussion draft prior to holding two intended hearings this month. He hopes to have the bill to the House floor in May. The draft bill, entitled the Chemicals in Commerce Act, significantly alters current law and is similar in its construct to the Senate bill, S.1009. The draft does take different directions in several areas, however, including when agency action is final and in requiring EPA to obtain net benefits and not impose actions if alternatives that will materially reduce risks are available. Shimkus plans to mark up a bill in early April in Subcommittee and late April in full Committee. Click here for a link to the bill.
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Legislative Update: House subcommittee holds roundtable on surface transportation reauthorization
On Feb. 26, the Transportation and Infrastructure Subcommittee on Highways and Transit held a roundtable policy discussion with representatives of the transportation community in preparation for the development of a surface transportation reauthorization bill. At the opening of the discussion Subcommittee Chairman Tom Petri, R-Wis., announced that he wanted a 5-6 year reauthorization and a bill presented this spring. Chairman Bill Shuster, R-Pa., moderated and reiterated his desire to pass a long-term surface transportation bill.
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Regulatory Update: DHS releases new CFATS fact sheet
The U.S. Department of Homeland Security has released an updated fact sheet demonstrating more progress on approving Chemical Facility Anti-Terrorism Standards site security plans. As of Feb. 1, DHS had authorized 1053 SSPs, conducted 744 authorization inspections, and approved 506 SSPs following inspections. Click here for a copy of the new fact sheet. DHS has made substantial progress over the past year in increasing the pace of SSP reviews and inspections. The agency is also encouraging the use of alternative security plans to streamline the process further. Another advantage of ASPs is that they are true security plans/documents that companies can implement, update, and pass along to new employees as needed. NACD is actively working with DHS and the American Chemistry Council to develop an ASP specifically for chemical distribution and warehousing with plans to complete this project and make it available later this year. If you have questions or would like to be involved in this project, please contact NACD Vice President of Regulatory Affairs Jennifer Gibson at or (571) 482-3047.
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REACH dossiers need improvement, report finds
Environmental Leader
The quality of registration dossiers filed under the European Union's chemical rules — known as the Registration, Evaluation, Authorization and Restrictions of Chemicals program — still needs to be improved, according to an evaluation report. In the 2013 evaluation report, the European Chemicals Agency found 61 percent of the 1,130 dossiers that it checked lacked information required under REACH. In those cases, ECHA requested more information from the registrants in draft decisions, the report says. Most of the gaps in information related to substance identity, physicochemical properties, sub-chronic toxicity studies, pre-natal developmental toxicity studies and exposure assessment, the report says.
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Fleets, manufacturers tell Congress size and weight boost good for economy
Upping the size and weight limits for trucks on U.S. roads would reduce traffic, help road conditions and help the trucking industry absorb growth in the next few decades, said representatives of fleets, manufacturing and transportation planning at a House hearing held Feb. 27. FedEx Ground President and CEO Henry Maier told Congress that the amount of tonnage in the U.S. is expected to double by 2035, and changing the federal truck size and weight limits will reduce the number of vehicles on the road, the number of trips and the number of miles necessary to transport freight, he said.
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Logistics study projects slow economic growth, more near-shoring
Fleet Owner
Sluggish economic growth will continue to be a dominate factor affecting the logistics landscape for the next 12 years, according to a global study conducted by Penn State University, Capgemini Consulting and recruiting firm Korn/Ferry International, with such slow-growth conditions helping spur more "near-shoring" of manufacturing activity back to the North and South America in the future. The 18th annual study of the global logistics market — also supported by Penske Logistics and the eyefortransport forum — is based on responses from 581 third-party logistics firms, 633 users of 3PL services, and 179 shippers that don't use 3PL providers.
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CSB letter says Tesoro's action after incident 'creates real concern'
San Antonio Business Journal
The U.S. Chemical Safety Board has posted an open letter on its website questioning why Tesoro Corp. blocked investigators with the federal agency from examining the company's Martinez, Calif., refinery after two workers were burned with sulfuric acid in an incident there. Officials with San Antonio-based Tesoro were unavailable for immediate comment but in an earlier email denied that the company refused entry to federal officials.
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Missed last week's issue? See which articles your colleagues read most.

    Regulatory Update: Calls for Inherently Safer Technology mandates intensify (NACD)
Preventing the hazards of above-ground storage tanks (Heather Rhoades)
FDA agrees to deadlines on food safety overhaul (The Hill)

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

NACD NewsBrief
Colby Horton, Executive Vice President of Publishing, 469.420.2601
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