Federal & State Issues Update LCA/LMOGA Post-Session Government Affairs Meeting Point Clear, AL July 2017
1. LCSA Implementation 2. Uniform Federal Labeling 3. Regulatory Reform Federal Advocacy 4. Rail 5. Infrastructure 6. Tax Reform 7. Risk Management Plan 8. Marine Debris
Engaging EPA New Chemicals Program Framework Rules Met with Administrator Pruitt on May 10 Former ACC employees currently hold senior positions at EPA Backlog of over 500 pre-manufacture notices (PMNs) Pruitt has committed to work through backlog by end of July Main focus areas for ACC: Prioritization Process Rule Risk Evaluation Process Rule
Uniform Federal Labeling Federal, State & Local government-endorsed labeling programs are growing (e.g. GMOs; Cell Phones; CA Prop 65) 19 Bills in 11 States Reforms needed to ensure consumers benefit from credible, meaningful & consistent info.
Solution: Improve Consumer Protection by Requiring Consistent, Credible Information on Warnings & Labels Establish minimum federal standards for risk & science-based government-sanctioned labeling claims Preempt state & local labeling programs that do not meet minimum scientific standards Establish a uniform threshold for ingredient disclosure Discourage further growth of conflicting state & local product labeling & warning initiatives Ensure labeling program offers manufacturers multiple means of compliance & complements SmartLabel TM & disclosures
Regulatory Reform Pillars for Credible Reg. Reform Sound scientific approach to chemical risk assessments Complete economic impact analysis, including appropriate cost & benefit analysis
Pathways to Regulatory Reform Executive Orders & directives Fast-tracking infrastructure or other projects Requiring additional cost/benefit analysis Streamlining enforcement Administrative/Congressional defunding Federal legislation on new procedures
Rail Advocacy DOT Rulemaking STB Action Legislative Opportunities Urge DOT to assert exclusive authority to set national tank car standards Ensure new members appointed to STB are committed to freight rail reform Leverage Congress to move on reforms Potential for Congressional action on tank car committee
Infrastructure Leverage PwC study to ensure industry is recognized as leading stakeholder Addressing challenges is critical to fully capitalizing on economic benefits of growing production Reps Graves (R-LA) & Westerman (R-AR) Mark Lustig, author of PwC study
Open Competition Pursue legislation requiring open, competitive bidding procedures for all materials By Steve Russell, Vice President, Plastics Division, American Chemistry Council on May 19 Held meetings with key decisionmakers & W.H. in May; looking to include principle in Trump s infrastructure bill May 17, 2017 Open Letter to Congress: Support Open Competition in Infrastructure Projects Pending legislation in NC, MI & OH Enhance relationships & secure support to demonstrate potential savings
Tax Reform Prospects for Action Healthcare debate likely to push tax reform until after August recess Reconciliation process ensures simple majority vote threshold Significant pressure to get tax reform done important victory for Trump Administration ACC s Main Focus Areas: Border Adjustment Tax (BAT) Interest deductions Mandatory repatriation
Risk Management Plan Led effort to subject final rule to disapproval under the CRA - secured 63 cosponsors in House & majority support in Senate Scheduled vote blocked by Energy & Commerce Committee Filed legal challenge against EPA EPA proposed delay until February 2019 pending new rulemaking Filed comments on May 19 supporting proposed stay & highlighted EPA s legal authority to do so
Marine Debris Prevention Estimated 8MMT of used plastics enters the ocean each year UN s #WaronPlastics galvanizing calls for plastic bans, fees, product redesign & use reduction Ultimate solution is waste management in developing countries
Marine Debris Engagement Legislative Action Helped shape Save Our Seas Act Advocating for better recycling & energy recovery policies in U.S. Engaged in bills to ban single use plastics most commonly found in environment Solutions Partnership with Ocean Conservancy Advance waste management in S.E. Asia Partner with WWF on sustainable material vision Cascading Materials Vision Global Engagement Mobilizing plastic producer & converter groups globally Organizing engagement where it has been raised in: UNEP APEC G7/G20 OECD
Congressional Chemistry Caucus LA House Members: - Rep. Garret Graves (R-LA-06) - Rep. Cedric Richmond (D-LA-02) LA Senators: - Sen. Kennedy (R-LA) House Chemistry Caucus: Launched June 2016 Co-Chairs: Reps Moolenaar (R-MI) & Lipinski (D-IL) 44 members (16 Ds & 28 Rs) Senate Chemistry Caucus: Launched March 2017 Co-Chairs: Sens Coons (D-DE), Capito (R-WV), Peters (D-MI) & Daines (R-MT) 10 members (6 Ds & 4 Rs)
State Advocacy 1. ACC State Affairs 2. 2017 State Issues 3. 2017 Key Successes
AMERICAN CHEMISTRY COUNCIL Designated Regions for State Affairs West Midwest Southern Northeast Mid-Atlantic Sacramento Office 1121 L Street, Suite 609 Sacramento, CA 95814 Tim Shestek Lauren Scott Lindsay Stovall 916-448-2581 Midwest Office 107 E 5 th Street Suite 201 Des Moines, IA 50309 John Easter Marcus Branstad 515-471-1957 Atlanta Office 1995 North Park Place Suite 24D Atlanta, GA 30339 Michael Power Thomas Beusse 770-421-2991 Sydney Rubin Albany Office 11 North Pearl Street Suite #1400 Albany, NY 12207 Steve Rosario Margaret Gorman 518-432-7835 ACC Headquarters 700 2 nd Street, NE Washington, DC 20002 Josh Young 202-249-6223 Allyson Azar 202-249-6226 Kuper Jones 202-249-6214
2017 State Issues Energy Codes (Offense & Defense) Engaged on legislation/regulations in 16 states: FL, GA, IA, ME, MD, MN, NH, NY, OH, OK, SD, TX, VT, WA, WV and WI Defense actions to oppose roll-backs, weakening revisions, or delays in implementing progress. Dead: FL, GA, IA, MD, MN, OK, SC, SD, TX, WV Still pending: ME, NH, NY, OH, VT, WA, WI Monitoring: IA, VA 18
2017 State Issues (cont.) Drones Legislation to regulate drones near critical infrastructure was introduced in 13 states: AL, FL, HI, IL, IN, KY, MT, NH, NJ, NM, PA, VA, WA, and WV. Passed: FL Dead: AL, HI, IL, IN, KY, MT, NH, NM, VA, WA, and WV Drone legislation enacted 2014-2016: AR, AZ, DE, LA, NV. OK, OR, TN, and TX 19
2017 State Issues (cont.) Plastics: Energy Recovery and Plastics-to-Fuel: Introduced: GA, FL, HI, IL, MA, WI Passed: FL GA will pass this measure in 2018 Packaging Bans: CA, ME, WA Degradability: MD Marine Debris: CA, GA, HI Passed: GA (resolution drastically altered by ACC) Extended Producer Responsibility: CA, CT Task Force, IN, MA, NM, NY, RI Dead: IN, RI Passed: NM Recycling: CT, GA, MI, WA 20
2017 State Issues (cont.) Polystyrene: Regulation and Legislation- legislation/regulations introduced in the following jurisdictions: CA, GA, HI, IA, IL, ME, MD, MT, NJ, NY, RI, SC Ban bills: CA, HI, MA, ME, MD, MT, NJ, NY, PR, RI Dead: CA, HI, ME, MD, MT, NY, RI Pending: MA, NJ, PR Pre-emption bills: GA, IL, IA, MO, MN and SC Existing preemption laws: FL, ID, IN, MI, WI Passed: IA Open Competition: ACC is active on Open Competition for Pipe Legislation in these states: AZ, AR, IN, MI, NC, OH, SC, and WI Dead: AR, IN, SC (bill remains alive for 2018) 21
2017 State Issues (cont.) Hydraulic Fracturing: States with proposed legislation or regulations banning fracturing, requiring chemical disclosure, preempting local action, or banning wastewater treatment or waste handling 15 states: AZ, CA, CO, CT, FL, GA, MA, MD, MT, NJ, NV, NY, OR, SD, and UT Dead AZ, FL, SD, UT Bans on Hydraulic Fracturing proposed in 9 states: AZ, FL, MA, MD, NJ, NV, NY, OR, SD Dead: AZ, FL, SD Passed: MD ACC opposed ban bills in 6 states: AZ, CA, MD, NV, OR, SD Set-back from schools requirement in CO was defeated Disclosure bills: CA, GA, NJ, NY, MT Dead: GA Passed: MT Disclosure regulations: MD expected to be withdrawn Wastewater or waste handling ban : CT, MA, NJ, NY Local control/preemption legislation in UT was defeated 22
2017 Key State Level Successes Defeated 15 chemical management proposals in 8 states Defeated or blocked 23 FR bills so far - pending bills in ME, RI, NY & MA Defeated 19 disclosure/labeling measures - still pending CA & NY Defeated 16 plastic foodservice bans in eight states including CA EPR measures failed in all five states where introduced
Thomas D. Beusse Manager, State Affairs American Chemistry Council thomas_beusse@americanchemistry.com 706-202-9308