Document 5DjQYxqejmMY9ZRJQLx9gwbNz

MINUTES OF MEETING CMA EXECUTIVE COMMITTEE C11A Headquarters Board Conference Room Washington, D. C. March 6, 1985 1. The meeting was called to order at 8:30 a.m. by Chairman Sella, There were present: George J. Sella, Chairman Alan Belter W. H. Clark, Jr. Robert C. Forney Vincent L. Gregory, Jr. Edwin C. Holraer John W. Johnstone, Jr. Robert D. Kennedy Richard J. Mahoney Robert H. Malott Harold A. Sorgenti Gary C. Herman - Treasurer David F. Zoll - General Counsel Charles W. Van Vlack - Secretary Sv invitation: Peter R. Agnew * Frederic E. Allen Richard G. Askew David L. Baird, Jr. * Nela Brown * Timothy F. Burns Robert D. Cadieux Geraldine V. Cox * Wells Denyes * Donald D. Evans * Robert B. Hill Jon C. Holtzman E. Hamilton Hurst * Geoffrey B. Hurwitz * John A. Klacsmann * Charles T. Marck * Janet S. Matey * Joe J. Mayhew Keith R. McKennon * Leslie F. Nute Vernon R. Rice James H. Senger * Thomas G. Singley William M. Stover * Gordon D. Strickland Juliane H. Van Egmond CMA E, I. du Pont de Nemours & Company Phillips Chemical Company Exxon Chemical Company Shell Oil Company CMA Amoco Chemicals Corporation CMA Eastman Kodak Company CMA CMA CMA Nalco Chemical Company Rohm and Haas Company Clean Sites Inc. Dow Chemical U.S.A. CMA CMA The Dow Chemical Company Dow Chemical U.S.A. E. I. du Pont de Nemours & Company Monsanto Company Shell Chemical Company CMA CMA American Cyanamid Company * Part time CMA 044340 - $176 million from general revenue. - $210 million from interest, cost recoveries, etc. - Borrowing authority. - Continue to work with API on the development of a broadbased tax on manufacturing. The NEET proposal is expected to be ready for review by the end of March. - Meet with API representatives as soon as possible to discuss options on funding and the Bradley proposal. On motion by Mr. Holmer, it was also agreed that Association repre sentatives could surface, as part of CMA's lobbying efforts, the concept of a broad-based tax on manufacturing as a contingency in the event that funds from general revenues and recoveries from liable parties appear insufficient to reach the Administration's $1 billion per year funding level. Dr. Forney was recorded as reserving DuPont's position on this motion pending review of whatever broad-based tax ultimately is brought forward for approval. Mr. Stover briefed the Executive Committee on Senator Bradley's fund ing amendments which had just been released. d. Joint and Several Liability In response to the request made at the January meeting, Mr. Stover, on behalf of the Government Relations Committee, presented the following position concerning legislative changes to joint and several liability: The Government Relations Committee recognizes the need to encourage the prompt and effective cleanup of haz ardous waste sites and that the application of joint and several liability may impede this goal, leading to excessive transaction costs. It is, therefore, the recommendation of the Government Relations Committee that CMA continue to seek opportunities to support amendments, such as those offered in 1984 by Senator Alan Simpson, which would reduce the harsh effects of Superfund's joint and several liability provision. The committee will continue to carefully monitor pros pects for improvements in this important area of the law. This was agreed to. ' 8. BHOPAL INITIATIVES Mr. Hurst reported on the further development of the Community Awareness and Emergency Response (CAER) program and the establishment of the National Chemical Response and Information Center (NCRIC) which were approved at the January Board meeting. The detailed proposals to implement CAER and NCRIC, contained in Exhibits E and F, were agreed to. Mr. Hurst reported that a CMA 044345 press conference to announce the initiatives had been scheduled for March 26 in Washington. A schedule of briefings are being established to inform key legislative, agency, and association contacts. Chairman Sella urged that pending federal legislation be reviewed carefully to determine if it supplements and supports the objectives of CAER. Mr. Johnstone reported on related activities being considered by American Institute of Chemical Engineers (AIChE). It was agreed that th se and other initiatives should be coordinated with the CMA programs. Chairman Sella urge that a maximum effort be made to get member company commitment to these initi tives by the Annual Meeting in June. It was agreed that plant managers' involvement would be critical to the success of CAER. 9. COMMUNITY RIGHT-TO-KNOW Mr. Hurwitz, on behalf of the Joint Right-to-Know Task Group, presente* a proposed policy statement on community right-to-know. This policy, as set forth in Exhibit G, was approved. Mr. Hurwitz also reported on pending feder* and state right-to-know legislation. 10. BHOPAL RELATED LEGISLATIVE DEVELOPMENTS Mr. Stover reported on the various pieces of legislation which had beei introduced in response to the Bhopal incident. Mr. Zoll distributed an analy: of the Florio proposals, attached as Exhibit H, which had been prepared by tht Legal Department. Serious consideration of the bills was reported to be some time away; however, Association policy is being reviewed to determine whether new positions or adjustments in existing policy are required. 11. FIRST RESPONDER TRAINING Mr. Allen's report is attached as Exhibit I. His report included the fact that no comprehensive federal programs exist to provide training and equipment to respond to hazardous materials incidents. The first stage of the training program, which included the development of a lending library of trair ing materials and a video training course and manuals, was approved. Mr. Alle indicated that the Distribution Committee would bring forward the remainder of the program for approval at a later time. 12. REPORT OF THE PRESIDENT a. Special Program The proposed special program on cumene was approved as described in Exhibit J. b. Departmental Reports Orai reports of the Vice Presidents were deferred due to a lack of time The full Report of the President on Association activities is attached as Ex hibit K. CMA 044346 13. NEW BUSINESS In response to the issue raised by Mr. Malott relative to the Stafford amendment to the Kasten product liability reform bill, it was agreed that staff would review the legal memo received that day and make a recommendation to the Officers concerning the desirability of CMA testifying at Senate hearings later in March. a**-***************** On motion, made and seconded, the meeting adjourned at 3:50 p.m. :4! ; * Certified correct: Charles W. Van Vlack Corporate Secretary CMA 044347 EXHIBIT F National Chemical Response and Information Center (NCRIC) Charter, Operations and Flan for Implementation I Obj ectives The National Chemical Response and Information Center is established to provide to the public and emergency response organizations information about chemicals and advice or assis tance when an emergency occurs in their use, distribution, or manufacture. CMA will accomplish these objectives through four programs: - CHEMTREC - Will continue to provide information to emergency response personnel and contact the shipper to obtain addi tional assistance in incidents involving chemicals. This service would be officially expanded to include non-trans portation events. - CHEMNET will provide actual on-site assistance in the event of serious transportation incidents through a mutual aid network of Industry and for-hire emergency response teams. This program will operate through CHEMTREC. Membership in tne network is at the discretion of individual CMA members, - Emergency Response Training - Encompasses training materials to assist industry and rank and file firefighter and police man in dealing with hazardous materials Incidents. Currently CMA provides 2-3 workshops per year to train industry person nel. This would be expanded to include the development of "first responder" training materials. The objective of the first responder training would be to reduce injury, environ mental damage, and identify sources of assistance for these personnel. Chemical Referral Center (CRC) - Would create a referral cen ter that the general public could call to identify the correct information contact within the appropriate chemical company for information about chemicals. The center would maintain an index that relates chemical products to the producing company and a number for the general public to call for in formation. J1* Background There are several Issues and events that lead to the development of this program. In the past, concerns of private citizens, firefighters, policemen, local, state and federal authorities about the safe use, manufacture and distribution of chemicals CMA 044398 % Companies would be asked to have a designated respond to referral inquiries, provide CRC an their products and provide the disposition of on the quarterly log. office to index to referrals IV. Liability Concerns Liability issues associated with the NCRIC program Include: e Current liability of the CHEMTREC program. Expansion of the CHEMIREC program to formally provide precautionary and first aid advice to emergency service personnel involved in non-transportation emergencies, to provide a referral service to non-emergency response personnel who need emergency information, and to pro vide a referral service to all callers that need nonemergency information. The quality of MSDSs that the producers will use to provide hazards Information. The consistency of MSDSs for the same product amongst the manufacturers. Greater CMA involvement with the public is likely to result in more suits and defense costs, regardless of whether CMA was negligent. Lack of state Good Samaritan legislation in 18 states . and lack of adequate coverage in some of the states that have adopted such legislation. In connection with these concerns the legal department has recommended that CMA consider one or more of the following steps: Increase insurance coverage Promote state Good Samaritan legislation Attempt to correct inadequacies in coverage of Good Samaritan legislation in target states Consider federal Good Samaritan legislation Establish a contingency fund for CMA liability and defense costs CMA 044403 ( Set-up NCRIC as a separate non-profit corporation V. Costs Of the programs described in this document CRC and the first responder training programs would entail incremental costs. The CRC program would cost, as outlined above, approximately $95,000 year. This amount is included as a priority 2 item the FY 85/86 budget request. The first responder training e fort, as outlined in this document, would cost approximately $100,000 in the first year and $75,000 for each additional year chat training materials are produced and distributed. Costs of any increased liability insurance are not included in this description will be factored Into final costs estimates. VI, Implemen t at Ion The NCRIC program would be Implemented as follows: Announce the expansion of the CHEMTREC program and the establishment of the CHEMNET program. Begin operations of the CHEMNET program as soon as sufficient members have signed the agreement and the for-hire contractors have been selected (August, 1985). This is subject to the availability of liability insurance . Complete the formulation of the first responder training program and request Board approval (April, 1985) . Produce and distribute the first responder training materials (October, 1985). Budget approval would be necessary. Complete planning, begin training personnel and pur chasing equipment for the center (June, 1985). Budget approval would be necessary. (Currently a Priority 2 item. Announce start-up of the CRC in Fall 1985. CMA 044404