Currently the proposed legislation is in a senate committee. The following summary of chemical security legislation reports that Senator Frank Lautenberg, a New Jersey Democrat, may introduce a new bill on this topic.
Debate over Chemical Plant Security Moves to the Senate
By Beveridge & Diamond, P.C., April 21, 2010
Following the House’s passage of a chemical plant security bill last November, the Senate has begun to turn its attention to the issue, with subcommittee hearings held in March and multiple bills either proposed or in the works. As in the House, the focus of contention thus far in the Senate has been the possible addition of inherently safer technology (“IST”) requirements into a reauthorization of the existing Chemical Facility Anti-Terrorism Standards (“CFATS”) program.
Background
The security of chemical facilities has been a subject of increased concern since the September 11, 2001 attacks, when it became apparent that stores of hazardous chemicals are a logical target for terrorists. Members of Congress have agreed on the need for a federal chemical facility security program, but have disagreed sharply on the issue of making IST mandatory. IST refers to technological and procedural steps intended to reduce the potential for a hazardous chemical release, in contrast to security measures intended to deter sabotage of existing processes. IST measures typically involve modifying processes to reduce the quantity of hazardous chemicals used or stored, reducing temperatures or pressures, or replacing a hazardous chemical with a less hazardous one. While facilities are always free to reduce hazards in these ways, a mandatory IST approach would require facilities to examine their industrial processes to evaluate safer alternatives and would enable a government agency to compel facilities to adopt the changes that it concludes are justified.
In the House of Representatives, a bill has passed that contains provisions for Inherently Safer Technology (IST). The Senate bill does not contain these provisions.
IST regulations seek to force companies to replace existing methods and raw materials with those deemed to be safer. But the legislation may not produce its intended effect. Stephen Poorman of the Society of Chemical Manufacturers and Affiliates stated in his written testimony: “Inherent safety is a superficially simple but truthfully very complex concept, and one that is inherently unsuited to regulation. Any IST mandate is bound to create situations that will actually increase or transfer overall risks.”
His testimony gave three examples of where a change to a process mandated by IST would actually increase the overall risk. For example, a process might use a toxic catalyst. Eliminating the use of the catalyst would mean the company has to increase the temperature and pressure of the process, two factors that work to increase risk. The end result might be a process with more risk than the original process.
In her opening remarks, Senator Susan M. Collins gave another example of how IST might force more hazardous trucks on highways:
According to one water utility located in an isolated area of the Northwest, if Congress were to force it to replace its use of gaseous chlorine with sodium hypochlorite, then the utility would have to use as much as seven times the current quantity of treatment chemicals to achieve comparable water quality results. In turn, the utility would have to arrange for many more bulk chemical deliveries, by trucks, into the watershed. The greater quantities of chemicals and increased frequency of truck deliveries would heighten the risk of an accident resulting in a chemical spill into the watershed. In fact, the accidental release of sodium hypochlorite into the watershed would likely cause greater harm to soils, vegetation and streams than a gaseous chlorine release in this remote area.
IST regulations and mandates would also be very expensive, forcing manufacturers and even local water utilities to increase their prices, all for something that may not reduce risk. Furthermore, as Sen. Collins remarked, “The increased cost of a mandatory IST program may force chemical companies to simply transfer their operations overseas, costing American workers thousands of jobs.”
Legislation currently under consideration in Congress will allow citizens to sue the Department of Homeland Security if they believe that chemical plants are not in compliance with new regulations.
In a Washington Times piece, two Washington lawmakers explain the risks and dangers that this law will bring about:
“… civil lawsuits would necessitate DHS diverting its limited resources from its core mission — protecting American lives from terrorists.”
“… civil lawsuits, and the discovery process involved, could very well lead to the public disclosure of sensitive — even classified — security information about U.S. chemical facilities and DHS’ assessments of those facilities.”
“To allow civil lawsuits against DHS in this area has the real potential to make the American people less safe. DHS itself has warned Congress of the potential consequences.”
The Endangered Species Act contains provisions that allow for citizen lawsuits. The result? The authors write: “As a result, biologists then divert their attention away from protecting species to responding to the lawsuit and reacting to any judicial decisions. In 2002, this brought the Fish and Wildlife Service to a standstill.”
Let’s not saddle the Department of Homeland Security with the same burden.
As Congress considers legislation that would force our nation’s chemical plants to make expensive changes in their processes and technologies, we need to make sure that we don’t cripple our economy just to appease a small group of environmental activists — all in the name of purportedly greater safety.
That’s the danger we face from IST, or Inherently Safer Technology. What could be wrong with a law that contains such a noble goal as safety? It has to do with the complexity of a modern industrial economy providing the backdrop on which unintended consequences develop. A recent article in The Hill explains:
IST is governed by the laws of physics and engineering, not the laws of politics and emotion. A reduction in hazard will result in a reduction in risk if, and only if, that hazard is not displaced or replaced by another hazard. Even if it were possible to simply switch from one chemical to another, switching often results in the mere transfer of risk from the chemical plant to some other entity, perhaps the surrounding community, with no actual risk-reduction registered. For example, a government mandate that forces a company to reduce the amount of a particular chemical at a facility could very well result in an increase in transportation and safety risk. The company still has to maintain the same level of production capacity and the only way to maintain current capacity is to increase the number of shipments — through the community — going into the chemical plant.
The article also states that there’s no objective way to measure the notion of “inherently safer.” But there is an objective way to measure the costs that IST will impose on manufacturers and our economy. It’s a huge cost, both in terms of dollars and lost jobs. Even the Wichita water treatment plant is on a list of facilities targeted by environmental extremists as dangerous.
Chemical manufacturers, says the author, aren’t opposed to safety. In fact, the industry places great emphasis on safety and has spent billions on plant security since 9/11.
This bill contains provisions for Inherently Safer Technology (IST). These regulations seek to force companies to replace existing methods and raw materials with those deemed to be safer. But the legislation may not produce its intended effect. Congressional testimony found that this could actually increase risk to the businesses that the bill intends to protect.
The problem, as with much government regulation, lies in the unintended consequences. The article Inherently Safer Technology (IST) not always that explains how these regulations can work to increase the real danger that Americans might face. In this example, a switch to a different input chemical would mean many more chemical tanker trucks would be on our nation’s highways.
Chemical manufacturing and processing is a complicated matter, and mandates that force the use of one chemical instead of another can have consequences that lead to less safety, not more.
In a letter to Henry Waxman and Joe Barton, Chair and Ranking Members of the House Energy and Commerce Committee, Charles T. Drevna, the president of the National Petrochemical & Refiners Association, told how “The bill’s IST provisions may result in simply transferring risk to other points along the supply chain instead of reducing risks as intended.”
He also said that these mandates will increase cost: “Not only will IST mandates fail to reduce risk, but they will also impose significant financial hardship on refiners and petrochemical producers struggling in the current economic recession. In addition to the fact that mandated switches may not reduce risk, some estimates indicate that forced changes could cost in the hundreds of millions of dollars per facility.”
There are existing regulations that have been effect for some time, and have proven to work. As one industry group wrote earlier this year: “The current chemical security regulations are enforced by the Department of Homeland Security, which has clear authority to inspect facilities and apply strong penalties for non-compliance. Since the regulations have been in place, not one incident as a result of terrorism has occurred. These regulations have been effective.”
We have working regulations in place. So why are we contemplating more burdensome regulations that will surely increase cost, while at the same time increasing the risks Americans face?
The Senate last week passed H.R. 2892, the Department of Homeland Security’s appropriations bill, which included a one-year extension of department’s authority over security for chemical facilities potentially threatened by terrorist attacks. This one-year extension helps continue the progress that the agency and chemical industry have made in implementing safety and security regulations adopted in 2007, the Chemical Facility Anti-Terrorism Standards. (CFATS).
The House has also passed a one-year extension, and the approach is far superior to the permanent legislation passed by the House Homeland Security Committee, H.R. 2868, the Chemical Facility Antiterrorism Act. That seemingly well-intentioned piece of legislation would U.S. production and storage of chemicals more burdensome and costly while providing no benefit public safety or national security.
Bill Allmond, vice president of government relations at the Society of Chemical Manufacturers and Affiliates (SOCMA), put it well: “As we have argued for the past several months, Congress needs to address the October 2009 CFATS deadline expeditiously. Because the House appears, so far, to be more interested in passing controversial amendments like inherently safer technology (IST) to the existing regulations rather than make the rules permanent, this extension is the most responsible action.”
Currently Congress is considering new regulations for chemical plants — Chemical Facility Anti-Terrorism Standards or CFATS — that will, if enacted, require substitution of technologies believed to be less vulnerable to terrorist attack.
These regulations would affect facilities in addition to those we usually picture when thinking of chemical plants. The Wichita water treatment plant, for example, could be affected.
The problem is that chemical manufacturing and processing is a complicated matter, and mandates that force the use of one chemical instead of another can have consequences that lead to less safety.
Proponents of IST would like oil refineries to switch to sulfuric acid as a safer alternative to hydrofluoric acid. This sounds like a reasonable measure, until you dig a little deeper. Then, you’ll find this:
The alkylation process takes roughly 250 times more sulfuric acid than hydrofluoric acid to achieve the same result; therefore, a forced switch to sulfuric acid would result in a significant increase in transportation and transfer of the substance. For a 10,000 barrel per day alkylation unit, this equates to one to two truckloads of hydrofluoric acid delivered to the refinery each month, compared to three to four truckloads of regenerated sulfuric acid coming in and three to four truckloads of spent sulfuric acid going out each day.
This is an example of how seemingly small shifts in technology can have a big impact. In this case, many more trucks carrying a still-dangerous acid would be on our roads and highways.
There’s also a cost consideration: “A mandate for a refinery to switch from hydrofluoric acid to sulfuric acid will result in capital and design costs between $45 and $150 million dollars per refinery and an increase in operating costs of between 200 and 400 percent.”
As all refineries would face these costs, it’s very likely that these costs would be passed on to consumers. Except: foreign refiners would not be subject to these expensive technology requirements. This raises the possibility of the United States importing gasoline in large quantities — an unintended consequence that I don’t believe Congress intends.
“Although we believe CFATS should be reauthorized and made permanent, we do not support current draft legislation that replaces CFATS and extends the power of the DHS to dictate how a product is made. Decisions pertaining to feedstocks, processes and products should be left to the engineers and safety experts at local facilities.”
The Stealth Single-Payer Agenda
George F. Will’s column explains that while President Obama and Congress are presently considering a “public option” health care plan, this is just the first step on the road to a single-payer plan. “The puzzle is: Why does the president, who says that were America ‘starting from scratch’ he would favor a ‘single-payer’ — government-run — system, insist that health-care reform include a government insurance plan that competes with private insurers? The simplest answer is that such a plan will lead to a single-payer system.”
The Big Chill
Congress shouldn’t fight global warming by freezing the economy.
In a Wall Street Journal column, Pete Du Pont explains the enormous cost of the Waxman-Markey global warming bill and how little warming it would stop. “Manzi estimates the additional economic costs of the bill would be 0.8% of gross domestic product, while the economic benefits would be just 0.08% — so the costs would be 10 times the benefits. The cost of reducing emissions turns out to be greater than the cost they impose on societies. According to a 1999 Federal Reserve Bank of Dallas estimate, the emissions cuts the Kyoto Protocol would have required in 2010 were likely to reduce America’s GDP by $275 billion to $468 billion, or $921 to $1,565 per person, and of course Kyoto does not apply to fast-growing developing countries such as China and India.”
Taking back control of the classrooms
“The dirty little secret of America’s schools is that teachers have lost control of the classroom. Disrespect is commonplace. Disorder is an epidemic — 43 percent of high school teachers say they spend more than half their time maintaining order instead of teaching, according to a Public Agenda survey. Learning is impossible in these conditions. One misbehaving student steals the floor, spoiling the learning opportunity for the other 29 students. ‘You know, it really doesn’t take very many kids to ruin a classroom,’ observed David Adams, superintendent of Shelbyville Central Schools.”
Phillip K. Howard explains that the problem is too much law: “There is a broad perception — by teachers and students alike — that teachers lack the legal authority to enforce respect and order.”
“But there are problems with the proposals, as he makes clear. He cites the ‘private right of action,’ i.e., encouraging litigation against companies as a parallel regulatory process.”
Unlike environmental statutes, CFATS is not a series of prescriptive statutory measures with which compliance is mandatory, like emission standards or discharge limitations, and therefore it is much more difficult for an outsider — whether it be a citizen or judge — to ascertain if a standard is being met or to decide what needs to be done to address an alleged deficiency.
This industry is already regulated, and the regulations have accomplished their goal. As explained by the Texas Chemical Council:
The current chemical security regulations are enforced by the Department of Homeland Security, which has clear authority to inspect facilities and apply strong penalties for non-compliance. Since the regulations have been in place, not one incident as a result of terrorism has occurred. These regulations have been effective. Removing the sunset date and making the chemical security regulations permanent would provide the certainty needed to both protect citizens and support our nation’s economic recovery.
(This is a Scribd document. Click on the rectangle at the right of the document’s title bar to get a full-screen view.)
Current chemical security regulations should be reauthorized By Hector Rivero, President & CEO, Texas Chemical Council Americans should take note of the Chemical Facility Anti-terrorism Act being debated in Congress. At a time when millions have already lost their jobs, the Chemical Facility Anti-terrorism Act (HR 2868) would force more people out of work by imposing needless and harmful regulations on American industry. It would also raise prices for many everyday products, including food, water, pharmaceutical drugs, fertilizers and energy. Securing chemical facilities against deliberate attack is crucial to protecting Americans. The fact is that since 2006, clear and comprehensive chemical security regulations have been in place. Those regulations secure everything from chemical facilities to warehouses and university labs. The rules require facilities to address a wide range of threats, from preventing a bomb-laden car from reaching a target to preventing theft or diversion of materials from a site. The current chemical security regulations are enforced by the Department of Homeland Security, which has clear authority to inspect facilities and apply strong penalties for noncompliance. Since the regulations have been in place, not one incident as a result of terrorism has occurred. These regulations have been effective. Removing the sunset date and making the chemical security regulations permanent would provide the certainty needed to both protect citizens and support our nation’s economic recovery. Proposed legislation poses threats Legislation being proposed by Congress should concern us all. It would create overlapping and conflicting security requirements that will cause disruptions of federal security standards, increase government red tape, and create more economic instability. The proposed regulations also go beyond security protections by placing mandates on American manufacturers as to which products and process they use. These mandates will be imposed without any regard for practicality, availability or cost. If current provisions of the proposed bill are implemented, unemployment will shoot even higher and consumers may see prices for everyday consumer products skyrocket. The chemical industry understands the importance of operating safe and secure manufacturing facilities. However, this can be accomplished without compromising our economic security.
The Kansas Meadowlark contributes coverage about a chemical security law that promises to overburden an important American industry. Even the family farm is at risk. That’s the operative word — risk. As has been reported, Congressional testimony found that the legislation could actually increase risk to the businesses that the bill intends to protect.
An important point of this article is the involvement of the left-wing Center for American Progress.
The United States Congress is considering legislation that aims to increase the security of America’s chemical industry to terrorism threats. The legislation, if passed, would require chemical companies to substitute government-mandated processes and technology for their current processes. The post Chemical security law goes beyond protection explains more about this legislation.
Even places that we might not consider to be “chemical plants” could fall under this act.
The Wichita Water Treatment Plant appears on their list of 202 additional facilities that should be required to change their processes, according to the report. The Wichita plant appears because it uses chlorine to treat drinking water, and, apparently, because it’s located in a large city.
I asked David Warren, Director of Utilities for the City of Wichita, about the proposed legislation and about the Wichita Water Treatment Plant being on a list of dangerous facilities.
While declining — understandably so — to discuss specifics of security at the Wichita plant, he said that if the legislation passes and is found to apply to Wichita’s plant, “it would require expensive changes in our treatment process.”
He also said that the reason for the Wichita plant’s inclusion on the list is due to its location (near the center of Wichita) rather than to any defect in security precautions.
It would be one thing if these changes were necessary and would contribute to national security. But Congressional testimony found that the legislation could actually increase risk to the businesses that the bill intends to protect.
Wichita water rates are already on the rise as the city undertakes capital improvement projects. It’s unknown how much bills might increase if the water plant was forced to make changes to its treatment technology.
But even slight increase can cause hardship. Last year Wichita city council member Lavonta Williams expressed concern that a $1 per month increase in water bills would be a hardship. And in her campaign last year, she stated “We need to start the conversation with service providers about whether we can offer laid-off workers reduced rates for water, heat and other essential services.”
As reported in this website, Congress is considering legislation that threatens to harm the American economy, while at the same time accomplishing little or none of its stated goals.
It’s important to let your elected representatives in Washington know how harmful this proposed law will be to a vital American industry.
An easy way to let them know is by clicking on this link: Ask Your Legislator to Oppose the Chemical Facility Antiterrorism Act. This will take you to a form where you fill in your name and address. The site will determine who are your representatives and show you the letter it has created. Then, you can choose to have the site send it for you, or you can print it and mail it yourself.
As reported earlier, the United States Congress is considering legislation — the Chemical Facility Anti-Terrorism Standards — that will increase regulation on chemical plants and facilities. The proposed legislation, however, would extend government control into another of our nation’s most important industries. It would require companies to change their manufacturing processes and substitute products in the name of safety.
Earlier this week I reported on legislation being considered by Congress that would, under the lofty goal of national security, impose a huge burden on the American chemical industry. (Chemical security law goes beyond protection)
Congress is about to consider legislation that, on the surface, seems like it implements an important goal. Its name — Chemical Facility Anti-Terrorism Standards — suggests something that no one could oppose.
The proposed legislation, however, would extend government control into another of our nation’s most important industries. It would require companies to change their manufacturing processes and substitute products in the name of safety. But the legislation may not produce its intended effect.
The Kansas Legislature blew through a $900 million surplus in two years, and now they're asking you for more. Learn more from AFP-Kansas, the state's voice for economic freedom and growth, of how we can return fiscal sanity to the Kansas Statehouse.
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Late one night in Washington, D.C. a mugger wearing a ski mask jumped into the path of a well-dressed man and stuck a gun in his ribs. "Give me your money!" he demanded. Indignant, the affluent man replied, "You can't do this. I'm a United States Congressman!" "In that case," replied the robber, "give me my money!" — Related by Walter Block
The libertarian creed, finally, offers the fulfillment of the best of the American past along with the promise of a far better future. Even more than conservatives, who are often attached to the monarchical traditions of a happily obsolete European past, libertarians are squarely in the great classical liberal tradition that built the United States and bestowed on us the American heritage of individual liberty, a peaceful foreign policy, minimal government, and a free-market economy. Libertarians are the only genuine current heirs of Jefferson, Paine, Jackson, and the abolitionists. — From "For A New Liberty: The Libertarian Manifesto" by Murray N. Rothbard
No matter how disastrously some policy has turned out, anyone who criticizes it can expect to hear: “But what would you replace it with?” When you put out a fire, what do you replace it with? — Thomas Sowell
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When it becomes dominated by a collectivist creed, democracy will inevitably destroy itself. — F.A. Hayek
The most dangerous man, to any government, is the man who is able to think things out for himself, without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane and intolerable, and so, if he is romantic, he tries to change it. — H.L. Mencken
Of all tyrannies, a tyranny exercised for the good of its victims may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end, for they do so with the approval of their own conscience. — C.S. Lewis
When the people find they can vote themselves money, that will herald the end of the republic. — Benjamin Franklin
What is euphemistically called government-corporate "partnership" is just government coercion, political favoritism, collectivist industrial policy, and old-fashioned federal boondoggles nicely wrapped up in a bright-colored ribbon. It doesn’t work. — Ronald Reagan
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The American people will never knowingly adopt socialism, but under the name of liberalism, they will adopt every fragment of the socialist program until one day America will be a socialist nation without ever knowing how it happened. — Norman Thomas
[The political system] tends to give undue political power to small groups that have highly concentrated interests; to give greater weight to obvious, direct and immediate effects of government action than to possibly more important but concealed, indirect and delayed effects; to set in motion a process that sacrifices the general interest to serve special interests rather than the other way around. There is, as it were, an invisible hand in politics that operates in precisely the opposite direction to Adam Smith's invisible hand. — Milton Friedman
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Liberty is not a means to a political end. It is itself the highest political end. — Lord Acton
The great virtue of a free market system is that it does not care what color people are; it does not care what their religion is; it only cares whether they can produce something you want to buy. It is the most effective system we have discovered to enable people who hate one another to deal with one another and help one another. — Milton Friedman
It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages. Nobody but a beggar chooses to depend chiefly upon the benevolence of his fellow citizens. — Adam Smith
Democracy is a pathetic belief in the collective wisdom of individual ignorance. — H.L. Mencken
This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard. — Alan Greenspan, “Gold and Economic Freedom” [1966]
Fundamentally, there are only two ways of coordinating the economic activities of millions. One is central direction involving the use of coercion — the technique of the army and of the modern totalitarian state. The other is voluntary cooperation of individuals — the technique of the marketplace. — Milton Friedman
The compelling issue to both conservatives and liberals is not whether it is legitimate for government to confiscate one’s property to give to another, the debate is over the disposition of the pillage. — Walter Williams
In Germany, they came first for the Communists,
And I didn’t speak up because I wasn’t a Communist;
And then they came for the trade unionists,
And I didn’t speak up because I wasn’t a trade unionist;
And then they came for the Jews,
And I didn’t speak up because I wasn’t a Jew;
And then ... they came for me ...
And by that time there was no one left to speak up.
— Pastor Martin Niemöller
There is no virtue in compulsory government charity, and there is no virtue in advocating it. A politician who portrays himself as "caring" and "sensitive" because he wants to expand the government's charitable programs is merely saying that he's willing to try to do good with other people's money. Well, who isn't? And a voter who takes pride in supporting such programs is telling us that he'll do good with his own money — if a gun is held to his head. — P.J. O'Rourke
The difference between libertarianism and socialism is that libertarians will tolerate the existence of a socialist community, but socialists can't tolerate a libertarian community. — David Boaz
When the people fear their government, there is tyranny; when the government fears the people, there is liberty. — Thomas Jefferson
After all, only the imagination limits the kind of laws and restrictions that can be written in the name of saving the planet. — Walter E. Williams
One of the methods used by statists to destroy capitalism consists in establishing controls that tie a given industry hand and foot, making it unable to solve its problems, then declaring that freedom has failed and stronger controls are necessary. — Ayn Rand
People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the publick. ... It is impossible indeed to prevent such meetings, by any law which either could be executed, or would be consistent with liberty and justice. But though the law cannot hinder people of the same trade from sometimes assembling together, it ought to do nothing to facilitate such assemblies; much less to render them necessary. — Adam Smith
Act only on that maxim through which you can at the same time will that it should become a universal law. — Immanuel Kant
When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that justifies it. — Frederic Bastiat