Document Z4qRGYYe8Ek9wdRjR3KBo1jGY

Exhibit E Report Co Che Board By W. C. Lowray September 3, 1980 - 'a glad to have this time co talk about th work of the jj ve rnment Relations Committee, and to ackn wledge the fine work of my predecessor, Jack Estes of Allia Chemical. Also * vast to tell you that Bill Stover and his staff have provided Suoarfund intelligence and counsel almost ai ound the clock for -he last 13 months, and Jack and I are part-' cularly grateful. ;a the broadest terms, the CMA (or about any other trade association) has three major areas of activi ty : 1, to sort out the issues and decide 4kac positions make sense ; 2. to mold public opinion in a favorable way; 3. to lobby legislators, regulators a ,d federal and state jiacutives to get acceptable legislation an , regulations, and :o avoid legislation and regulations when they really aren't needed. In the currant CMA structure, these functio s are rougly divided between the Technical Committees, the Commu ications Committee end the Government Relations Committee. Th ere is a question on how we can sharpen our lobbying of the regujl atory agencies and the Executive branch and I'd like to return to that question later on and make a recommendation about it All three of these work areas represent big challenges for CMA. Our major issues are complex and generally neither CMA nor the jovernment has all the facts we need to rea ch a fully objective recommendation on public policy. Public op inion is not on our aide, and even with our best efforts it is likely to be a decade or more until the public begins to underst of chemicals outweigh their risks. In the for sound legislation and regulations will intensely political activity, and done in nd that the benefits meanwhile, lobbying continue to be an oolitical environment that's always changing. - don't need to tell you that in September 1930 the nation is aeply divided. And let me tali'you, we se that division five 1?s a week on Capitol Hill. About half ou^ citizens and 3liticians still believe that the governme At is obligated to idrasa all.the major problems of our socie uy and find legislative CMA 044647 ana regulatory solutions. The other half believes that the government causes more problem s than it solves and wants to sae more non-governmental approach as to societal problems. We dou't know whether the division is 5 Q/5Q, 52/43 or 43/52, but it's close- and appears to be shifti ng toward an anti-government, anti-regulation majority. Tha shift is important to our committee, because Congress de cides most tough issues by narrow margins. The 15 members of our Committe e represent a wide array of backgrounds and skills. Tou'v e been generous in making this group available and letting th em spend so much time on our projects. And the companies n ot now represented on our Committee are equally generous We constantly ask for their help and they always respond w ith enthusiasm. The ideal member of the Govern ment Relations Committee would have an impressive set of tala its : L- current knowledge of the chemical industry and its role in the American economy, particularly its relationship to other industries; 2. ability to grasp a wild e variety of complex issues ai articulate CHA's position on t ham to anyone -- from the high; levels of Congress to junior s taf f; 3. political know how -- understanding (as only experience teaches) how to win political battles, even when you don't hold all the cards, and :o deal effectively with both liberal and conservative polit :lcians Hot all our members have all those skills, but we are a team.! We respect each others expertise divide up tha work to make the best of our talents., and la spite- of' what you may hear from time to- time, we get along well together. 3etter, in fact, than 15 Department Heads in a ::ypical company. Against this general background how do we operate? First we try to set priorities and assig n a cask, group to aach priority project. Each task group is ap proved by the Executive Committee Currently we have five cask grcp ups (Air, Energy, RCRA, Suparfund and Transportation) and they a e detailed on Pages 4 and 5 of our Committee Report. When less immediate- needs are dentified or where a monitoring approach is called for, we ass gn a kevman to monitor the developments. We now have nine "key-man" assignments and they are listed on Page 3 of our Rap o rt. Finally, in cases like Superfu4id where a very complex program is being undertaken, we assign a company representative to coordinate contacts with aach Congressional Committee or Sub- CMA 044648 e involved in the legislation we ar a working on. .,saidca r . -'he^ jii iS^aa assignments nts normally are made on come and go individual on a short Congressmen. cycle. These ;=3n ,-ce .^s :ne war the time comes for all-out lobbying, or another the entire Washington c allied industries, to plan and ex wla bring together amical community cute our moves on in itol Hill- On those occasions, which ma y be of very short iur3tion or over one or more Congresses, 1 fie Superfund, we \av our political muscle i3 being tested. Let's talk about ?olitica 1 muscle, how much we've got, and ow we can get more. first requirement for effective lobbyin is honest, credible, genual information. While it's not necess ariiy easy to get, ."-'s the simplest of all the resources need ed by the Government halations Committee. Under ideal circumsta ices, the output of '.'ijg Technical Committees is a position pape c that has most of Iue back-up material we need for lobbying. Congress seldom ,a3 enough information to decide what corns a to take on legisla -ion. And as economic conditions have begu te turn Congress avay from its cavalier attitude of 5-10 yea ts ago,, good economic forecasts of legislative effects have a pow erful influence on :be legislative process. Executive order 1 1044 has made the regulatory agencies calculate the economic impact of their regulations. We are trying to get that req airement enacted .r.to law. But what's really important is t 3 dabate costs and rose affects before the legislation is writ ten, not later, iad that's the reason our Committee places such a high value ;a having appropriate economic information available when we ire lobbying priority legislation. In my o pinion, this is an iraa of CHA capability that needs improveme it. the next step is proper management and coor iination of lobbying bv our Committee. We divide up the work on the basis of who tan do it best -- corporate locations and p arsonal contacts jeaerally decide these assignments. Often we have major gaps, lad we try to get other trade associations :o help on these -- billing in States and Congressional Districts where the presence j: the chemical industry is ineffective. wish we could give you a meaningful asse ssment of the political muscle of the Government Realtion 3 Committee. I'm mre you know, that your lobbyists are limit ad in what they can do on CapitoL Hill. We- can understand the themical industry impact of the. issue, better than Congress does a d work, to sell CHA's Position on it. Sometimes that's enough. He can trade on our Personal relations with a few members and t leir staffs, and some* dines that's enough. But in terms of polit Leal muscle, we don't Play hardball like the administration, envi ronmental, consumer ltd labor lobbyists do. In fact, there are i' t that many times need to play hardball, but there are son When those times when you have to go to a few key Memb lers and say, "we've a serious problem and we need your help even if you have take political risks to help us" -- we n eed real muscle, the -3 - CMA 044649 kind none of "our .obbyiscs are likely to have as individuals. Than kind of poll: strength comes from outside Washington, so 1st'5 tali about our needs fo r external help. One grovitt = : ;arta of political strength outside Washington is the Political cion Coamittees. PAC contributions improve access :: 5a ' iTs. 3ut over the long term the more important function of - := ?ACS is to upgra e the Congress. As that happens , and -- i3 happening, fa cts will have more weight in the political pro: -33, and our succa ss race will improve. We need a C3U ?AC aa 3111 Stover and his staff better known as CMA lobbyists, an. - tnr Committee ask s your support on this point. Another succ: ^oic5 development are the grassroots networks of member corn so ss. A number of ompanies -- Daw, Monsanto, Allied, and du Pont ; d to mind -- air ady have- effective grassroots systems in P^ :e. Any many othe r companies are rapidly getting this cap ah -- r organized. If t|hese systems are geing to be of maximum bene: : to CMA, we've g t to feed, them materials, through your corner fines, that ar ready to use in their contacts with Members engress. In o 4her words,, if these grassroots organiearners going to be c asely linked to CMAr we've got to make tnr =rrrmnicatian and la bbying programs compatible. In addition, is sres nanagemenc has come of age throughout the business c:mmmciry. it will he Ip other industries to understand and support n-s- Tea Chemcap or gram is a good current example of CXa" tanlc-r"--i rttarials for se by grassroots operatives. Chemcar -- ing us politic 11y closer to other industries that derate rn ns for essential chemicals, plastics, and fibers. Whan 70nr grassr;oc3 systems ar fully developed, we should be able to os -- --- your help and |et several thousand, letters. telegrams 3rd telephone calls t Members in a few days, each with the i tarn of local reievan a and personal understanding of the issue, We won' a come to yo ijtr well often, but when we do, please pa: toe pressure on your people to give us maximum response. advancing chese capai ilitias is so important that our Committee' =' portion of the semi annual meeting has the title "Getting : :ur Massage to Govern^ ent. " The. final 3 re* rcr CMA muscle iii the unique role of senior management -- imiluanciag Coagr^ ss. You are unique because Congress t ,rv* than 70 ur main c oiicanis are your stockholders: employees 3 me cue to mar3 . 3ecau e Congress is increasingly sensitive : m the unintended' eco bionic impact of their actions; your views ~ legislation have validity no one can match. We area't = gressional But as yrn use these : get to be : bile indns: already do: iS-srtng you spend any fixed amount of time on Con"tacts, or sat any particular goals far yourselves, v*icp good ralatio is with Members of Congress, an -aricts in CMA camp signs , our political ttscla can :r=S3iTa, avan by c 1 a standards of, say, the automo -ur Committee 13 aware that many of you are I a let of good wor fc with Congress. We appreciate -4 CMA 044650 3 ur co willingness urage you to to come co Washington when we ask you, continue your own inittiativ es . and ~ _ this point, the question becomes, is this political muscle plough? Will the PA.Cs, the grassroots orga nizations, issue i^aagenient, senior management political acti vity for CMA, whan 3-tded to the reSular work, of the Government Relations Committee 2."'ll it be enough to protect our industry fi om punitive and ;Z-atioual actions by the government? When the time comes to ,*ay hardball, will we be ready? answer depends,, we believe, on a number of factors* 1. First, high quality work by the Tec hnical Committees, -;a aeed to generate, and we think we do, pos itions that stand ^ to any coming from our political adversar ies. But once we need more economic impact informat ion to make our case affectively. Z. Second, on how fast we can turn aro und the tide of public opinion on chemical hazards. For eve n our best friends la Congress, tharer3 a limit to how long the y'll support us if the public's against us. And for those in C ongress and the aedia that mak& hay from chemophobia, negatl.ve public attitndes toward chemicals represent job security. 3. Th ird, national political trends an d developments will ^e;j.riiaa i f our muscle is adequate. For bu siaass as a whole, Si are's no doubt that our political fortunes are improving. The low point, since WWII, seemed to have been a bout 1970-72. By 1977-78, wh en business lobbying beat Ralph N ader on his Consumer ?ro t ac tion Agency Bill, and the AFL-CIO on C ommon Situs Picketing, :: h ad to b e clear that our backs weren't to the wall anymore, Jade r the p resent political climate, we have at least half Che :ard s if we play them right. Next year shou Id see an improved ?oli ti cal c limata, barring unexpected develo pments. So we think aext y ear s hould be a. time when the CMA can begin, in cooperation vith 0 ther industries, to amend some of the legislative mistakes the past ten years. After tax incentives , Clean Air Act amendments may merit the highest priority. -arliar, I indicated there might be some unr esolved questions ibouc lobbying the regulators and the White House for CMA. `T-at s an important question because so much of the action '*as moved from Capitol Hill to the regulato r|y agencies. One -tiaad. in 0MB remarked to me the other day t hat in his opinion ara than three--fourths of the big decisions affecting industry J4r* "made downtown." * che agencies were more professional and _ ess political, if ax-parte rule didn't inhibit their abili ty to work with tdustry professionals, this question might not need attention, Technical Committees that have the exper tise the agencies aed would find an easy, professional relati onshio with the Saacy staffs. -5- CMA 044651 3ut cha cold fact la chat It ha Congress today has more inf luance over the agencies chan the White House does. While the ? reside appoints the Cabinet and c ia Administrators, the agencies are raally the wards of cha Co igrass. Congress writes and re author izes the organic acts for ill the agencies. Congress app rpri their funds and evaluates and directs their programs thro ugh Congressional oversight, As if this wasn'c enough Congra 3 3 lone control ovar cha regulator^, Congressional veto of ragula tions has become a major cause cile bra. Elliott Levitas ia the House and Dale 3tampers in cha Sauac e are champions of the notio a that the regulators have no unique ability to regulate. 3oth Lavita and Bumpers have bean support ed by a majority of the Hous e and the Senate. One wa7 or anoth er the views they represent are going to impact agency operat ions. The significance of a 11 thi is that CHA should work the; a gencias and the Congress wit h a f u recognition of the dapcnder.ce of the agencies on Congress ional approval. The Government Relations Cq mmittee believes that hybrid task groups representing our skills and those of the Technical Committees could help us taka advantage of the close Link, betwe the agencies and the Subcommittees that authorize and appropria for their programs. I'm pl|.eased to see the Technical Committee taking steps coward hybrid task groups and we are looking forwa to participating in these i oint efforts. Hovember 4th, regardless of its outcome, r o n s an an to our political problems with either the Congress or ch a age But it could bring ia a Con grass mora objective, me re will to listen to facts. But ch |e most dramatic affect woouuIldd come i: the new administration is d letermined to filJ 70 0 Pre appointments with qualified people, federal ve s tha raally understand the compl (ax policy questions they aare ddeealing with, that can manage their organizations effectiveliyy and are neutral toward business* Whatever the outcome of November 4th, ch e CHA should keep developing its political muscle and the techniques of using it responsibly. We ask you to keep scaffin g your Washington offic with strong people, encouraging your PAC 's and building grassroots networks and finally, taking your own political initiativ as senior chemical executives. The Gove rnmant Relations Commit will kaep trying to deal with the indust ry's political problems by making us understood and respected by Congress. And when ch time comes to play hardball we'11 try c o make good use of the political muscle you've bee^. helping us develop. Thank you. CMA 044652 6