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CAPITOLMAY 2014

ConnectSneak Peak

A Message from SOCMA’sVice President

Snow Storm Doesn’t Put Damper onGlobalChem 2014

SOCMA Testifies on Draft House TSCA Bill

Environment Committee Tackles Myriad of Issues

MAY 2014Inside this edition

3 A Message from SOCMA’s Vice President

4 Snow Storm Doesn’t Put Damper on GlobalChem 2014

5 SOCMA Testifies on Draft House TSCA Bill

5 SOCMA Helps Draft CFATS Legislation

5 SOCMA Engages on President Obama’s Executive Order on Chemical Facility Safety and Security

6 SOCMA, U.S. Champion Athlete Work Together on CFATS Authorization

7 Environment Committee Tackles Range of Issues

7 Committee Honors Service of Long-Time Co-Chair

8 Trade a Key Issue on Capitol Hill

8 Taiwan Makes Changes to Chemical Control Laws

2 • MAY 2014 • WWW.SOCMA.COM

Calendar of Events ChemAlliance.org Webinars

2014 ChemStewards®Regional RoundtablesPreventing and Mitigating Loss of Containment Incidents – The Key Objectives of Process SafetyMay 13*-14 - Philadelphia, PAJune 12*-13 - Kalama, WA*Introduction to ChemStewards Optimization Program

SOCMA's 7th Annual Washington Fly-InSOCMA MEMBERS ONLYApril 29 - 30, 2014Washington, DC

2014 Leadership and Business Development ForumMay 19-21, 2014DoubleTree Charleston Historic DistrictCharleston, SC

2014 Chemical Sector Security Summitand ExpoJuly 22-24, 2014Baltimore Convention CenterBaltimore, MD

Chemistry in the Capital & More…

SOCMA’s ChemAlliance.org Offers Webinars on Variety of TopicsWebinars start at 3:00 PM (EST)

The 2014 EHS&S Regulatory Webinar SeriesHosted by ChemAlliance.org continues tohighlight issues of interest to the specialtychemical industry. The members-only we-binar is free. The first webinar in this serieswas held on February 5.

The remaining “Chemistry in the Capital”webinars are currently scheduled for:• May 21• September 17• December 3

2014 EHS&S Regulatory Webinar Series

ChemAlliance.org also launched its 2014EHS&S Regulatory Webinar Series withsessions on “OSHA’s Increased Targetingon Chemical Facilities: Are you Prepared?”;“The Executive Order on Chemical Safetyand Security: Where Do We Go FromHere?”; and “Tools to Improve SupplyChain Communication.” Additional webi-nars are being planned, so stay tuned formore information.

Webinar costs:SOCMA Members - $49/webinarNon-members - $189/webinarThe whole series can be purchased for $499.

On the COVER

Do you have particular topics you would like to see included in the Webinar series?Please contact Dan Moss at [email protected] or (202) 721-4143 if you have questionsor for more information.

WWW.SOCMA.COM • CAPITOL CONNECT • 3

A Message from SOCMA’sVice President

By Bill AllmondVice President, Government and Public Relations

But it Can’t Keep SOCMA Members Away

Allergy Season is Upon Us in Washington

AS I watched Beth Bosley, President ofSOCMA member Boron Specialties, testifylast month before a House subcommittee,it occurred to me: her testimony was thethird time in a month a specialty chemicalmanufacturer has spoken directly to membersof Congress, in a Congressional hearing,on public policy priorities important to ourindustry.

These occurrences are important for acouple of reasons. First, the obvious reason:Congress is still mired in partisan rancorwith little to no progress to show for itslabor. It’s as if our public policy makers areallergic to public policy making; if they gettoo close to it, there may be an adversereaction. Therefore, opportunities to weighin on a new law these days are as elusiveas bipartisanship, and, yet, when thoserare opportunities arose this year, SOCMAreceived the phone call from Congressdespite the odds. Bosley testified twice, bothtimes on reform of the Toxic SubstancesControl Act (TSCA); and Kate Donahue,President of Hampford Research, testifiedon reauthorizing the Chemical Facility Anti-Terrorism Standards (CFATS).

The second and most important reasonwhy our frequent testimony is important isbecause laws that are written more oftenthan not have unintended consequences forsmaller manufacturers, especially in industriesas diverse and thoroughly regulated as

specialty chemicals. During Donahue’s tes-timony last month, she addressed the needfor regulatory certainty. She said, “Even underideal circumstances, it costs companies,especially small businesses, time and moneyto plan for, pay for, prepare for, and cleardays off of calendars of multiple employeesto comply with” regulations like CFATS. Shewent on to say, “Responsible companies likeHampford want the CFATS program – butwe want a stable and predictable program.”Conversely, when legislation is favorable forour membership, it is important to recognizeit. For example, in Bosley’s second trip tothe witness table this year, she approved ofprovisions in the TSCA bill by saying, “Icannot overstress the importance of marketaccess to startups and small businesseslike mine. In general, the new chemicalsprovision in the draft bill preserves the del-icate balance in existing law between theopportunity to innovate and protectinghuman health and the environment.”

At the end of this week’s Congressionalhearing, I realized what is most remarkableabout the frequency of our recent testimonyto Congress. It’s that we have dedicated

members like BoronSpecialties and Hamp-ford Research thatstepped up on behalfof their industry andmade our views knownto a reluctant Congress.SOCMA, together withour members, mustrepeatedly stay enga-ged in the legislativeprocess to ensure thespecialty chemical in-

dustry is represented. Based on what we’veaccomplished thus far this year, despite anallergic Congressional season, we are verywell positioned.

…Opportunities to weigh in on a new lawthese days are as elusive as bipartisanship,and, yet, when those rare opportunitiesarose this year, SOCMA received the phonecall from Congress despite the odds.

Snow Storm Doesn’t Put Damperon GlobalChem 2014

By Dan NewtonSenior Manager, Government Relations

More Than 400 Attend Annual Chemical Regulations Conference in Baltimore

DESPITE unexpected ice and snow, more than 400 stakeholders from across the interna-tional chemical industry gathered in Baltimore, MD, March 3-5, for the 2014 Global ChemicalRegulations Conference (GlobalChem). SOCMA President Larry Sloan kicked off the conferenceon March 4 with opening remarks, where he highlighted the current movement by Congressto modernize TSCA and called for greater cooperation with the European Union to eliminatetrade barriers caused by REACh.

Many SOCMA members and staffers participated in the premier global chemical regulationsconference that has been co-hosted by SOCMA and the American Chemistry Council(ACC) for more than two decades.

For a complete GlobalChem recap, visit www.socma.com/globalchem2014.


SOCMA President Larry Sloan welcomes attendees to GlobalChem.

Dr. George Gray of George Washington Universitygives the keynote address at GlobalChem.

Boron Specialties President Dr. Beth Bosleygives an overview of TSCA sections during apre-conference workshop.

SOCMA’s Bill Allmond greets GlobalChem attendees at the SOCMA booth.

Jim DeLisi of Fanwood Chemical tells the audience REACh regulations have a huge impact on small companies.

Lyle Bresler of Cedarburg Pharma-ceuticals enjoys Baltimore Oriolesmemorabilia during a reception atthe Sports Legends Museum.

Snow did not keepmany from attendingGlobalChem.

SOCMA Senior Manager Dan Newton

This slide thanks conference sponsors, Beveridge & Diamond,Steptoe and Johnson, Verdant Law and Chemical Watch.

More than 400 chemical industry professionals attended GlobalChem 2014.

Dr. Beth Bosley and SOCMA’s Bill Allmond

FROM August to February, SOCMA worked closely withChairman Mike McCaul (R-TX) of the House Committee onHomeland Security to write legislation that will provide a multi-year authorization of theChemical Facility Anti-Terrorism Standards (CFATS) program. The CFATS Authorizationand Accountability Act of 2014 (H.R. 4007) was introduced in early February withsignificant SOCMA input and influence on the legislation. Subsequently, SOCMA wasinvited to testify about the bill on February 28.

Kate Donahue, President of Hampford Research, Inc., and a member of SOCMA’s Boardof Governors, testified on behalf of SOCMA before the House Homeland SecuritySubcommittee hearing on the bill. Donahue told the Subcommittee that specialtychemical manufacturers need greater regulatory certainty with CFATS through a long-term authorization. "The CFATS program is working, but it would help my companyand others like it if Congress would ensure CFATS’s continued stability through alonger-term authorization like H.R. 4007 would provide," Donahue said.

Outgoing SOCMA Safety and Security Committee Chairman Clyde Miller, BASF, alsotestified.

For more information on CFATS, contact Elizabeth O’Neal at [email protected] or(202) 721-4198.

Kate Donahue

Board of Governors Member Testifies Before Congress


SOCMA Helps Draft CFATS Legislation

Briefings:TSCA | CFATS | President's Executive Order

By Dan NewtonSenior Manager, Government Relations

SOCMA Testifies on Draft HouseTSCA Bill, Chemicals in Commerce Act (CICA)

DR. Beth Bosley, president of Boron Spe-cialties, LLC, testified on behalf of SOCMAat a House Energy and Commerce Sub-committee on Environment and the Economyhearing March 12 regarding the recentlyissued Toxic Substances Control Act (TSCA)reform bill, known as the “Chemicals inCommerce Act” (CICA).

The hearing, called by Congressman JohnShimkus (R-MI), Chairman of the Subcom-mittee and author of CICA, is the latest ina number of educational hearings heldover the course of a year on current TSCAlaw. Another hearing was expected in Aprilon a revised draft.

CICA shares many aspects of its Senatecounterpart, the Chemical Safety Improve-ment Act (CSIA), S.1009. During the hearingBosley explained how the House bill is animprovement over the status quo. Someof the panelists claimed the draft was astep back, and that some areas will requireclarification.

Preemption continues to be the majorsticking point on the House side, just as ithas been in the Senate. Concerns duringthe House hearing centered on how low-priority designations of chemicals would

By Elizabeth O’Neal, Senior Manager, Government Relations

IN the aftermath of the April 2013 explosion at West Fertilizer in West, TX, PresidentObama issued Executive Order 13650, “Improving Chemical Facility Safety and Security.”The Executive Order requires federal agencies, primarily EPA, DHS and OSHA, tocollaborate through a working group and issue formal recommendations to the Presidenton how to improve chemical facility safety and security. The working group must deliverits recommendations to President Obama by May 1, 2014.

SOCMA serves the working group in an educational capacity because many of thechanges may impact member companies. Most recently, SOCMA testified before theworking group via Administration-hosted listening sessions in November and January.Additionally, SOCMA met with agency leaders assigned to the Executive Order and high-ranking officials from the U.S. Department of Homeland Security and U.S. EnvironmentalProtection Agency on specific concerns that could impact specialty chemical manufacturing.

In January, the working group issued an “options list” of ideas for further assessmentthat was very extensive and heavily dependent on a similar Occupational Safety andHealth Administration Process Safety Management Request for Information (PSMRFI). SOCMA submitted comments on both the options list and the PSM RFI in March.

SOCMA Engages on President Obama’s Executive Order on Chemical Facility Safety and Security

Continued on page 6

Continued on page 6

By Elizabeth O’Neal, Senior Manager, Government Relations

SOCMA, U.S. Champion Athlete WorkTogether on CFATS Authorization

By Elizabeth O’NealSenior Manager, Government Relations

FOR the last six months, SOCMA served asa resource for the House Committee onHomeland Security in creating new legisla-tion for long-term authorization and fundingof Chemical Facility Anti-Terrorism Standards(CFATS). During many meetings, SOCMAworked closely with a new attorney on theteam, Joan O’Hara, who seems to havemade improving the CFATS program herpersonal mission.

SOCMA has long-standing relationshipswith many committee staffers, includingseveral we tremendously respect on theHouse Committee on Energy and Commerce.We didn’t know Joan very well when shewas promoted to Deputy Chief Counsel byRepresentative Mike McCaul (R-TX) after hebecame Chairman of the House HomelandSecurity Committee in 2013. When welearned late last summer of her involvementon potential CFATS legislation that couldimpact SOCMA members, we quickly gotup to speed with her.

As Deputy Chief, she is lead attorney andstaffer for CFATS, helping oversee thecommittee’s legislative initiatives. I foundthe Deputy Chief to be a listener and a strongcollaborator. She hears the concerns ofinterested stakeholders, including SOCMA,on potential improvements to CFATS. Shehas juggled many different opinions andcompeting concerns, drafted many revisionsof the potential bill, and incorporated our

input into a final product that most of theindustry supports. Even though there weresignificant challenges along the way, Joan’sefforts in working with SOCMA and somany different groups resulted in getting aCFATS authorization bill across the firsthurdle – introduction.

After all the prep-aration, the hardwork paid offwhen HR 4007,The CFATS Author-ization and Ac-countability Act of2014, was intro-duced February 6by House Home-land SecuritySubcommi t teeChairman PatrickMeehan (R-PA)and Chairman

McCaul with bi-partisan support in originalco-sponsor Representative Gene Green (D-TX). The bill is a simple multi-year fundingbill with an improvement on PersonnelSurety, which requires regulated facilities toimplement measures designed to identifypeople with terrorist ties.

Joan has never held a job on Capitol Hillbefore, which is rare in Washington forsomeone in her position. Instead, for morethan a decade she was a professional athlete

training for the Olympics. Joan was a ResidentAthlete at the U.S. Olympic Training Centerin San Diego, CA, where she was a sculler,training with the U.S. National Rowing Team.She became the U.S. National Champion insingle and quadruple sculls. After retiring,Joan became an NCAA coach and wasnamed 2005 West Coach Conference Coachof the Year.

In 2008, a year after the CFATS program wasimplemented, Joan retired from athletics topursue law and public policy. She graduatedcum laude in the top 10 percent of her class,made her way to Washington, on to ChairmanMcCaul’s Homeland Security Committee,and into the push to help CFATS win long-term authorization. Now, with the focus ofthis former athlete, the bill has been introducedand is gaining momentum.

On February 27 Chairman Meehan’s com-mittee held a legislative hearing on the bill.SOCMA member Kate Donahue of HampfordResearch, Inc. testified in support of thelegislation, a day after DHS Secretary JehJohnson endorsed the bill. For SOCMAand our industry colleagues who have longadvocated for permanency of the programfor regulatory certainty, we appreciate thesemembers of Congress and the support ofthis national gold medalist.

Additionally, SOCMA formed an advisory panelof members from its Safety and Security andthe Environment committees, with oversightalso from its Performance ImprovementCommittee, to narrow the focus of officialcomments to issues of highest priority toSOCMA members. SOCMA’s latest responseto President Obama’s Executive Order, sub-mitted at the end of March, is posted on thewww.SOCMA.com website under Govern-ment Relations/Comments & Testimony.

For more information on the President’sExecutive Order, contact Elizabeth O’Neal [email protected] or (202) 721-4198.


preempt states and remain in that bucket even if new information comes in. Critics failedto acknowledge that low-priority chemicals are judicially reviewable, which was a SOCMArecommendation, and is a clear improvement.

Another recurring theme in both Congressional chambers has been how the safety standardwould operate. It received a lot of criticism during the hearing for not separating costs andbenefits. This seemed to be a gross misunderstanding, since the two are now separated.Bosley and another majority witness testifying on his own behalf, Mark Duvall, explainedthis in oral and written testimony.

The Subcommittee is continuing to work on the draft to muster bipartisan support.

For more information on this issue, contact Dan Newton at [email protected] or (202)721-4158.

Continued from page 5 Continued from page 5

Joan O’Hara


Environment Committee Briefs

CMAS Draft Audit ProtocolTo assist SOCMA members in complyingwith EPA's Chemical Manufacturing AreaSources (CMAS) Rule, SOCMA hired DixonEnvironmental to develop a detailed CMASrule inspection checklist (an audit protocol).The document will assist federal, state andlocal regulatory personnel with enforcingthe standard while providing guidance tothe affected sources on criteria that will beused to determine compliance. This effort isa direct result of the Environment Committee’sinterest in developing such a tool. The protocolwill be made available to SOCMA members after it is finalized.

Chemical Safety and Drinking Water LegislationSOCMA’s Environment Committee is closely monitoring legislation introduced earlier thisyear in both the Senate and House of Representatives in response to the recent chemicalspill that contaminated the drinking water in Charleston, WV. The “Chemical Safety andDrinking Water Protection Act” (S. 1961) is sponsored by Senators Joe Manchin(D-WV), Jay Rockefeller (D-WV) and Barbara Boxer (D-CA), Chairwoman of the SenateEnvironment and Public Works Committee. Similar—but not identical—legislation,“The Ensuring Access to Clean Water Act of 2014” (H.R. 4024),was introduced in theHouse. Among other provisions, the Senate legislation establishes state programs underthe Safe Drinking Water Act (SDWA) to oversee and inspect chemical facilities. It alsosets minimum federal standards for state programs and requires regular inspections.

SOCMA’s First Environment Committee Meeting of 2014The SOCMA Environment Committee held its first-ever virtual meeting March 12, whereparticipants heard from Douglas Green, partner at Venable, LLP, regarding chemicalsafety legislation. Michael Shapiro, EPA’s Principal Deputy Assistant Administrator forthe Office of Water, also talked to the committee about the Water Office’s regulatorypriorities for 2014. In addition, there were brief updates on issues ranging from waterquality/nutrient limits to the Executive Order on Chemical Safety and Security.

The committee also solidified its position on the pending chemical safety legislation. Thecommittee supports the position of a variety of the most important groups of state environ-mental officials, who recently urged Senators to first examine the need for such legislationby inventorying existing programs and agencies in the states before proceeding with anyfederal action. More broadly, the committee believes most of the legislative suggestionsare duplicative of existing authority presently held by state or federal regulatory authorities.

DSW UpdateOn April 11, SOCMA met with the White House Office of Management and Budget(OMB) to discuss EPA's long-delayed Definition of Solid Waste (DSW) rule. The agencyfinally accepted the rule for review from EPA in mid-March. SOCMA raised all of theissues members care most about during the session, and our advocacy effort wasbolstered by the participation of one of our members from Ashland Specialty Ingredients.

Those with questions or interest in getting involved with the Environment Committee,please contact Dan Moss at [email protected] or (202) 721-4143.

Environment Committee Tackles Range of IssuesThe SOCMA Environment Committeesalutes Co-Chairman Bill Turetsky, who isleaving his job at Ashland at the end ofApril. Bill has been actively involved withthe Environment Committee for nearly 30years. He has served as co-chairman ofthe committee since 2004.

His expertise and work on behalf ofSOCMA has been tireless and invaluable.On issue after issue Bill has been at theforefront of SOCMA engagement. InSOCMA’s original comments on DSW, heprovided examples that likely played arole in persuading the U.S. EnvironmentalProtection Agency (EPA) to include favor-able provisions that potentially could saveSOCMA members tens or hundreds ofthousands of dollars. Most recently, Billproposed that SOCMA hire a consultant tocreate an audit protocol to help memberscomply with the CMAS rule. Additionally,his earlier work also featured many highlights,including:

• Spearheading SOCMA’s first workshopwith high-ranking EPA officials to discussissues important to SOCMA membersand develop priorities and actionsmoving forward; and

• Leading the effort to develop the Poten-tial To Emit (PTE) Guidance documentto assist members in establishingminor source status under the CleanAir Act. Bill worked with SOCMA tohave this endorsed by EPA.

Bill has a constructive relationship andfriendship with fellow long-serving Co-Chair Seth Levine of Cambrex; that fruitfulpartnership has consistently redounded toSOCMA’s benefit. On a personal note, I oweBill a deep debt of gratitude. As someonewho does not possess a chemical engineer-ing degree, I have leaned heavily on Bill’sadvice and assistance over the years, andI am grateful for the patience he has shown.

Due to Bill’s extraordinary contributions tothe work of the Committee over the years,SOCMA has invited Bill to continue toparticipate in Committee activities. Wethank him for his past and present effortson SOCMA’s behalf, and look forward toseeing him in his new role going forward.

Committee Honors Service ofLong-Time Co-ChairBy Dan MossSenior Manager, Government Relations

SOCMA’s Environment Committee metwith EPA Administrator Gina McCarthyduring Committee Week in October.

GlobalChem 2014 attendees received an up-date on trade regulations in Taiwan, includingthe new chemicals registration certificate.

InternationalTrade

By Justine FreislebenManager, Government Relations

Trade issues continue to be a key topic ofdiscussion on Capitol Hill, as U.S. free tradenegotiations continue throughout significantareas of the world like the Asia Pacific regionand Europe. Below are a few updates onkey trade issues currently at the forefront ofthe free trade conversation.

Trade Promotion Authority TPA is seen as essential to getting tradeagreements passed, and the most recentbill has been greatly modernized from its2002 predecessor. However, after a strongintroduction of the Bipartisan CongressionalTrade Priorities Act by Senate Financeleadership, Max Baucus (D-MT) and OrinHatch (R-UT), and House Ways and MeansChairman Dave Camp (R-MI), action on theTrade Promotion Authority (TPA) has slowed.

Despite many educational sessions withMembers of Congress, staff, the Adminis-tration and business community, the initialgoal of having TPA passed in the first quarterof 2014 is unrealistic. For instance, formerSenator Max Baucus (D-MT), the championof TPA in the Senate, was appointed U.S.Ambassador to China earlier this year.Senator Rob Wyden (D-OR) is rumored tobe shopping around an entirely new bill thatwould require starting from scratch in thecommittee process.

Additionally, the majority of Members ofCongress have never taken a trade vote.With limited expertise on these votes, a sig-nificant educational effort is under way.Right now, Members are having candiddiscussions with leaders, including U.S. TradeRepresentative (USTR) Michael Froman,Secretary of Commerce Penny Pritzker,World Trade Organization AmbassadorMichael Punke and others who have beeninvolved.

TPPTrans-Pacific Partnership (TPP) negotiationscontinue to develop at an aggressive pace, ascountries work to conclude this “21st century

Taiwan recently announced several changesto its chemical control laws – the Occupa-tional Safety and Health Act (formerly theLabor Safety and Health Act) and the ToxicChemical Substances Control Act (TCSCA)– and has reorganized agencies overseeingchemicals. The Council of Labor Affairs wasupgraded to the Ministry of Labor Affairs,and the Environmental Protection Agencywas updated to the Ministry of Environmentand Natural Resources.

The new chemical notification scheme isexpected to start January 1, 2015. SOCMA isstill awaiting details on implementing regu-lations that will be released later this year.There are certain exclusions and exemptionsallowed under the law, including substancesused in research and development (R&D)and education at less than one metrictonne per year, non-isolated intermediates,polymers for which the less than 2 percentrule applies, and others. A Small QuantityRegistration, which includes an online formand a 10-day review period, is also an option.

SOCMA plans to comment when the imple-menting guidelines come out later this year.

Please contact Justine Freisleben [email protected] or (202) 721-4155with questions, concerns and input.

agreement.” It has been difficult, however,with the inclusion of many issues that werenever addressed in previous trade agreements;some of which are considered controversial,such as state-owned enterprises and intel-lectual property.

As a historically closed market with a myriadof trade barriers to overcome, the TPP is amechanism to open up trade with Asia-Pacific countries. Unfortunately, Japan hasmade some less-than-ambitious offers —particularly in the agriculture and automo-tive sectors — that the USTR is working toaddress. Most recently, Acting DeputyUSTR Wendy Cutler met with JapaneseAmbassador Hiroshi Oe the week of March12 to address these latest concerns.

TTIPNegotiations on the Transatlantic Trade andInvestment Partnership (TTIP) continue withthe fourth round of negotiations recentlycompleted March 15 in Brussels. In February,high-level Democrats and Republicanstook stock of the TTIP negotiations anddecided to remain committed to the effort.The talks have inspired spirited discussionon issues from transparency to harmonizingregulations. The chemical industry, in par-ticular, has a significant amount to gain asa top tariff payer and also as one of themost regulated industries.

There have been numerous opportunities forpublic input on TTIP throughout the nego-tiations process. Individuals can submit theircomments directly to the USTR via [email protected]. SOCMA’s GovernmentRelations team continues to monitor TTIPdevelopments and is available to answer anyquestions or assist with submitting commentsfrom members.

For more information about internationaltrade issues, contact Justine Freisleben [email protected] or (202) 721-4155.


Trade a Key Issue on Capitol Hill

Taiwan Makes Changes toChemical Control Laws

05_SOC_CapConNL14_8pg_4LR

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