By Stacey Mobley, E. I. du Pont de Nemours L Company

EXHIBIT B
SUPERFUND STATUS REPORT
LEGISLATIVE UPDATE
By Stacey Mobley, E. I. du Pont de Nemours
L
Company
CONGRESS
HOUSE
Representative James Florio's (D-NJ) Subcommittee on
Commerce, Transportation and Tourism will markup his new
Superfund bill, H.R. 5 6 4 0 , on May 23. It is expected that the
Subcommittee will report H.R. 5 6 4 0 to the full committee.
Representative John Dingell (D-MI), Chairman of the full
Energy and Commerce Committee, who is a co-sponsor of Florio's
bill, is expected to begin consideration of Superfund after
the Memorial Day recess.
0
Speaker of the House of Representatives "Tip" O'Neill
has asked the three House committees (Energy and
Commerce, Public Works and Transportation and Ways and
Means) to complete work and have Superfund ready for
floor consideration in early August. O'Neill wants
to make Superfund a Presidential election issue against
President Reagan and the Republicans.
0
Representative Robert Roe (D-NJ), Chairman of the
Water Resources Subcommittee, Public Works and
Transportation Committee, has begun Superfund reauthorization hearings. Roe, who is a co-sponsor of the
Florio bill will complete his hearings in early June.
CMA will testify at the June hearings.
I
The Ways and Means Committee will not begin Superfund
hearings until mid-June on the taxing aspects of the
Florio bill.
SENATE
CMA testified before the Senate Environment and Public
Works Committee on May 16. Additional hearings were held
May 23 and 2 4 . The major Senate Superfund bill will not be
introduced until after these legislative hearings are completed.
MEDIA
The media continues to not write much about Superfund, in
general, but Senator Gary Hart is beginning to address the issue
of Superfund on a national basis.
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CMA 074679
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ASSOCIATIONS
CMA continues to hold regular meetings with other
industry groups which are impacted by the Superfund
legislation. Most other associations are working to
get exempted from the feedstock or waste-end tax.
They are concerned about the liability and compensation provisions.
CMA
CMA has initiated an aggressive lobbying campaign in
Washington and Congressional Districts' aimed prirnclL-ily
at the members of Florio's Subcommittee, the Enexgy
and Commerce Committee, the Ways and Means Commitcee
and the Senate Environment and Public Works Committee.
We have also undertaken contacts with key members and
staff of the House Public Works and Transportation
Committee.
ENVIRONMENTAL1STS
The environmentalists continue to lobby very aggressively
in the House and Senate for a very large increase in
the Superfund and f o r "victim's compensation".
ADMIN ISTRATION
EPA Administrator Ruckelshaus continues to advocate
that Superfund legislation should not be considered
this year until the Agency completes its study of
funding needs in December 1984.
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EXHIBIT C
Glenn
SUPERFUND FUNDING REPORT
Presented by
W . White, The Dow Chemical
Company
June 6, 1984
I am r e p o r t i n g today on b e h a l f of t h e Superfund Funding
Task Group i n r e s p e c t o f i t s c h a r g e t o s t u d y f u r t h e r t h e ARC0
gross r e c e i p t s t a x proposal.
The T a s k Group a f t e r due
consideration again r e j e c t e d t h a t tax proposal.
Previously
t h e Tax P o l i c y Committee had a l s o r e j e c t e d khe p r o p o s a l .
Before t h e E x e c u t i v e Committee and Board of CMA a t t h i s
t i m e is a m o d i f i c a t i o n t o t h e e x i s t i n g p o s i t i o n on Superfund
funding.
S p e c i f i c a l l y , CMA would modify i t s e x i s t i n g p o s i t i o n
to include support for:
The u s e of borrowing a s a " s a f e t y v a l v e " t o s u p p o r t
a c t u a l s i t e clean-up a f t e r t h e t r u s t fund revenues
had been e x h a u s t e d .
Borrowing, i n any one y e a r , would be l i m i t e d t o
$ 3 5 0 m i l l i o n , and
Repayment of any borrowings s h o u l d be a m o r t i z e d
o v e r a 10-year p e r i o d .
Installments of p r i n c i p a l
and i n t e r e s t s h o u l d be p a i d f i r s t from c o s t r e c o v e r i e s
and t h e n , t o t h e e x t e n t needed, from t h e t r u s t fund.
T h i s p r o p o s a l t i g h t l y l i m i t s f u n d i n g a s does CMA's p r e s e n t
position.
Earlier, Mr.
H o l m e r had t e s t i f i e d on r e a u t h o r i z a t i o n
i n t h e S e n a t e and h i s t e s t i m o n y r e f l e c t e d an $850 m i l l i o n t o t a l
annual funding.
I recommend f o r your a p p r o v a l t h e T a s k Group's p r o p o s a l .
I would l i k e t o f u r t h e r s u g g e s t t h a t CMA g e t busy and
a d d r e s s t h e i s s u e b e f o r e t h e t a x w r i t i n g committees of Congress.
L e g i s l a t i o n w i l l soon come o u t of t h e C o n g r e s s i o n a l committees
concerned w i t h e n v i r o n m e n t a l i s s u e s and p a s s t o t h e committees
CMA 074
T
-2concerned w i t h r a i s i n g r e v e n u e s .
While w e can s u p p o r t t h e
CMA position, I am convinced t h a t w e must address a more
s e r i o u s long-term i s s u e .
The chemical i n d u s t r y faces a major problem, a problem
s e v e r e i t s h a k e s CMA and many o f t h e companies.
o b v i o u s c o n f l i c t s of view t h a t are s e r i o u s .
SO
There are
They a r e s e r i o u s
b e c a u s e e a c h t a x p r o p o s a l can have a major adverse impact on
some o f the companies w i t h i n t h e i n d u s t r y .
Our argument c a n be t h a t this i n d u s t r y s u p p o r t s reautho r i z a t i o n a t t h e $850 m i l l i o n l e v e l w i t h a l i m i t e d a n n u a l
borrowing a u t h o r i z a t i o n .
However, t h i s i n d u s t r y does n o t have
t h e revenue c a p a c i t y t o fund +-he major
new w e l f a r e program.
s o c i e t a l cost of a
N o o n e , e s p e c i a l l y o u r l e g i s l a t o r s , should
be a l l o w e d t o l o s e s i g h t o f t h e f a c t t h a t a complete c l e a n u p
of a l l h a z a r d o u s waste s i t e s i n t h e United S t a t e s i s a n o t h e r
w e l f a r e program.
And t h a t becomes p a r t i c u l a r l y
t r u e if the
v i c t i m compensation l e g i s l a t i o n i s married t o t h i s program.
W e m u s t make t h e c o g e n t economic arguments and make them
i n terms t h a t are b o t h b e l i e v a b l e and r e a l i s t i c .
Even a t a
$1.5 b i l l i o n a n n u a l f u n d i n g l e v e l , t h e chemical i n d u s t r y does
not collapse.
However, t h e r e a l e f f e c t when t h e t a x becomes
centered on a v e r y narrow revenue b a s e , of g i v e o r t a k e seven
chemicals and g i v e o r t a k e 1 2 companies, is t h a t an e r o s i o n
b e g i n s t h a t moves p r o d u c t i o n o f the p a r t i c u l a r chemicals o f f -
shore.
E r o s i o n may be more p e r n i c i o u s t h a n c o l l a p s e .
That
"
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CMA 074682
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chemicals t h e r e is w o r l d w i d e e x c e s s c a p a c i t y .
From t h e p o i n t -
of-view of the c h e m i c a l companies, t h e f a c t t h a t t h e p r o d u c t i o n
may move from U n i t e d S t a t e s sources t o foreign s o u r c e s may be
good news o r bad news depending upon t h e i n d i v i d u a l company's
worldwide c a p a c i t y s i t u a t i o n and worldwide market p o s i t i o n .
From a United S t a t e s government v i e w p o i n t , any movement of
p r o d u c t i o n o u t of t h e United S t a t e s d e f e a t s t h e revenue
r a i s i n g c a p a b i l i t y o f t h e t a x , t h u s t h e t a x simply w o n ' t work
a s i t s r a t e goes up.
revenue b a s e .
T h i s t a x commits s u i c i d e by k i l l i n g i t s
Moreover, i t s e r o s i v e e f f e c t d i m i n i s h e s t h e
g e n e r a l income t a x b a s e as w e l l .
The s t a f f s of t h e committees
r e s p o n s i b l e f o r r a i s i n g revenues can b e made t o u n d e r s t a n d
t h i s argument.
However, w e must a r t i c u l a t e i t c a r e f u l l y and
without o v e r s t a t e m e n t , b e c a u s e o v e r s t a t e m e n t w i l l be f o l l o w e d
by complete d i s b e l i e f and w e c a n n o t a f f o r d t h a t consequence.
W e can make a s t r o n g , p o s i t i v e argument f o r a waste-end
t a x b a s e d on i t s e q u i t y and f a i r n e s s .
Equity i n t h a t i t
compels p e o p l e t o do what t h e y ought t o do, t h a t i s , simply
d i s p o s e of t h e i r w a s t e i n an e n v i r o n m e n t a l l y safe f a s h i o n .
F a i r n e s s i n t h a t a l l t h o s e who dispose of w a s t e pay a reasonable amount of t a x .
W h i l e w e a s an i n d u s t r y can fund most of a r e a s o n a b l e
program, w e c a n n o t fund g r a n d i o s e schemes.
Such schemes m u s t
be c o n s i d e r e d i n the g r e a t revenue d e b a t e s t h a t w i l l o c c u r
b e g i n n i n g i n 1 9 8 4 and c a r r y on i n t o a new Congress and Administration.
W e must
!
convey t h i s message i n iiashington.
CMA 074683
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Gentlemen, i t is t h e t o q u i t f e e d i n g maidens to t h e
dragon and i n s t e a d go f i n d
defenders.
US
some good St. George-type
I do n o t merely a d v o c a t e t h a t w e try h a r d e r b u t
i n s t e a d t h a t w e t r y smarter.
L e t ' s mobilize t h e resources of
t h e i n d u s t r y t o canvass C a p i t o l H i l l i n a j o i n t i n d u s t r y
e f f o r t t o d e s t r o y t h i s t h e o r y t h a t one i n d u s t r y can c u r e a
v a s t s o c i e t a l problem.
I s p e c i f i c a l l y recommend t h a t w e p u t
t o g e t h e r two-person teams t h a t would i n c l u d e o n e p e r s o n w i t h
governmental-lobbying e x p e r i e n c e and one p e r s o n w i t h a taxeconomic background t o lobby t h e s t a f f and members o f t h e ways
and Means C o m m i t t e e and F i n a n c e C o m m i t t e e , c a r r y i n g t h e message
I have o u t l i n e d above.
I s p e c i f i c a l l y recommend t h a t w e t r a i n
these p e o p l e w i t h t h e message t h a t w e want conveyed t o t h e H i l l
and t h a t w e d e d i c a t e t h e numbers of p e o p l e needed t o do a
thorough, competent job.
I f w e are d e f e a t e d on t h i s i s s u e
i t must n o t be because any s t a f f or c o n g r e s s i o n a l member can
l e g i t i m a t e l y s a y no one from i n d u s t r y t o l d h i m there w a s a
problem.
I have a l r e a d y d i s c u s s e d t h i s matter g e n e r a l l y w i t h
t h e CMA Government R e l a t i o n Committee l e a d e r s .
Now, I know
there are some who b e l i e v e t h e deal h a s a l r e a d y been c u t by
t h e Democractic m a j o r i t y i n t h e House and t h a t t h e S e n a t e
w i l l o f f e r no e f f e c t i v e r e s i s t a n c e t o t h a t d e a l .
If t h i s is
so, t h e n n o t h i n g w e do whatever c o u r s e w e d e c i d e t o f o l l o w ,
w i l l make any d i f f e r e n c e .
R a t h e r than assume w e a r e d e f e a t e d ,
I would p r e f e r t o see u s p r o c e e d w i t h an a c t i v i t i s t campaign.
Remember, if you are g o i n g t o g e t y o u r t h r o a t s l i t i t makes
very l i t t l e d i f f e r e n c e i f t h e y draw t h e k n i f e r i g h t t o l e f t
or l e f t to right.
T h i s i n d u s t r y c a n n o t b e a r t h e impact of
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CMA 074684
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ever growing f r o n t - e n d , waste-end o r other t a x mechanisms.
I t m u s t convey t h e message t h a t i t w i l l s u p p o r t a. reasonable
r e a u t h o r i z a t i o n of Superfund; b u t t h a t i t w i l l resist, i n t h e
s t r o n g e s t f a s h i o n , t h e broad expansion o f t h a t l e g i s l a t i o n .
W e m u s t t e l l t h e s t o r y i n an h o n e s t , r e s p o n s i b l e and d i r e c t
fashion.
I f t h a t s h o u l d i n c l u d e a massive g r a s s r o o t s e f f o r t ,
t h e n l e t ' s g e t a t it.
then l e t ' s b e s t r o n g e r .
I f i t means a s t r o n g e r l o b b y i n g e f f o r t ,
Whatever i t t a k e s , l e t ' s g e t on w i t h
t h e business of p r o t e c t i n g this i n d u s t r y .
CMA
EC-6/6/84
BD-6/6/84
CMA 074685
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*
Exhibit C-1
Alternate Sources of Superfund Revenue
Discussion
In April, the Executive Committee and Board of Directors approved the
recommendation of the Superfund Funding Task Group for supplemental revenue
options for the Superfund site cleanup program. In brief, the recommendations
adopted were:
o
To impose a tax of $50 per dry weight ton on the disposal of
hazardous waste to produce the first $300 million in tax revenues
for the Superfund site cleanup program.
o
To raise revenues over $300 million; maintain the existing feedstock
taxes with three principal amendments -- (a) adoption of technical
amendments package; (b) specifically exempt hydrocarbons used in
gasoline from separate taxation as chemicals; (c) freeze level of
revenues to be raised from the current taxes at approximately
$300 million per annum.
o
To continue funding from government general revenues at 12.5 percent,
or approximately $86 million per annum.
o
To provide EPA borrowing authority of up to $300 million per annum
(Task Group to develop details).
The Executive Committee and Board of Directors directed the Task Group to
study further an ARCO proposal to tax certain corporate gross receipts.
On May 16, Edwin C. Holmer testified on behalf of CMA before the Senate
Committee on Environment and Public Works on Superfund reauthorization.
In that testimony, Mr. Holmer presented a proposed funding mechanism to
match annual EPA spending needs of approximately $850 million. That
proposal includes the components discussed above, and would raise $700
million. In addition, he noted that $150 million would be provided from
cost recoveries and interest for total Superfund revenues of $850 million.
IF
In response to the directive of the Executive Committee, the Task Group
met on May 18, 1984, to determine what is the preferred mechanism to fund,
or to finance, an additional $350 million per annum. The Executive Committee
specifically requested that the Task Group present a recommendation on
whether CMA should adopt the ARCO proposal to impose a tax on corporate
gross receipts, or if not, what alternative financing mechanisms should be
adopted to raise this additional revenue.
After extended discussion, a majority of the Task Group declined to recommend
a tax on corporate gross receipts as an appropriate means to raise $350
million. It should be noted that the Task Group was closely divided on this
issue, and that the minority strongly supported the gross receipts proposal.*
In this respect, Congress may consider the gross receipts tax, the value
added tax, and other general tax increase proposals in 1985 to reduce the
Federal budget deficit.
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CMA074686
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The Task Group agreed that the preferred mechanism to finance the next $350
million increment for the Superfund program would be to provide EPA with
"Safety Valve" borrowing authority in that amount. The Task Group modified
its previous proposal on this subject.
The basic elements of the new proposal include:
1. Expanded borrowing authority should be considered a "safety
valve", that is, the authority to borrow would be available only
to finance actual Superfund site cleanup expenses after the
revenues in the trust fund have been expended.
2.
Expanded borrowing authority would be limited in any given year
to $350 million.
3.
Repayment of amounts borrowed should be amortized over a IO-yea;
period. Installments of principal and interest should be paid
first from cost recoveries and then, to the extent needed, from
trust fund revenues.
The new borrowing authority would be repaid from cost recoveries and,
through trust fund revenues, from contributors to the fund. Thus, this
new authority would leverage tax payments to meet current EPA spending
needs with the implied commitment of fund contributors to repay these
amounts over time.
The second preferred option would be to appropriate from general government
revenues an additional $350 million per year. The Task Group views the
added contribution from general revenues, like the tax on corporate gross
receipts, as a means to expand contributions to the fund f,rom industry
and the public at large.
The third preferred option, but which is not endorsed by the Task Group,
would be to modify or to expand the present CERCLA taxes. Possible modification
could include :
o
Taxing benzene, toluene and xylene used in gasoline separately.
1
o
Increasing the per barrel tax on petroleum from the present 0;79
cents per barrel level.
o
Doubling the proposed tax on hazardous waste disposal.
I
o Expanding the list of feedstocks subject to the CERCLA taxes to
include products named in recent legislation.
o
Increasing all CERCLA feedstock taxes to not more than 1.5 percent
of sales price.
CMA 074687
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It should be re-emphasized that the Task Group does not recommend any of
these t a x increases at this time, but that they may be preferable to doubling
the existing CERCLA taxes.
Recommendation
That CMA endorse expanded EPA "safety valve" borrowing authority of up to
$350 million per year to finance Superfund site cleanup costs.
ACTION REQUIRED:
Approval
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EXHIBIT D
Economic Impact of CERCLA Funding Proposal
--
Waste End Tax
At its May 8, 1984 meeting, the CMA Executive Committee was informed of the
existence of the Superfund Economic Impact Working Group which is examining
the impact which fees included in different proposals for Superfund reauthorization would have on the chemical industry. A paper presented at
that meeting argued that the petrochemical sector would be the industry
sector most affected by an increase in CERCLA feedstock taxes and those
taxes would likely exceed the petrochemical industry's ability to pay
them.
The CMA Executive Committee has requested that the Superfund Economic
Impact Working Group consider the affect of the imposition of a $50 per ton
tax on the industry. Such an analysis has been conducted based on a survey
where some 60 CMA member companies reported on their total amount of waste
and its disposition.
The analysis used the amount of waste disposed of in 1982, as reported in
the aforementioned survey, and compared the $ 5 0 per ton fee with 1983 sales
and earnings. With one exception, waste end taxes would be less than 5 percent
of profits and less than 1.1 percent of sales.
ACTION REQUIRED:
For Information Only
EC 6/6/84
BD 6/6/84
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CMA 074689
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E x h i b i t 0-1
SUPERE'UND ECONOMIC IMPACT STUDY
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An i n t e r i m r e p o r t of t h e Superfund Economic Impact Study Group was reviewed
f o r t h e Executive Cormnittee on May 8. The report c o n c e n t r a t e d on t h e p e t r o chemical f e e d s t o c k tax which p r o v i d e s t h e l a r g e s t p o r t i o n of t h e Hazardous
waste T r u s t Fund revenue and h a s t h e g r e a t e s t amount of a n a l y t i c a l d a t a a v a i l & l e i n t h e p u b l i c domain. The E x e c u t i v e Committee approved t h e summary paper
on t h e economic impact o f i n c r e a s e d f e e d s t o c k taxes f o r use by a s s o c i a t i o n
r e p r e s e n t a t i v e s i n Superfund r e a u t h o r i z a t i o n d i s c u s s i o n s w i t h Congress.
A d d i t i o n a l l y , t h e group w a s d i r e c t e d t o broaden t h e s t u d y t o i n c l u d e t h e impact
of waste-end t a x e s which exceeded t h e $300 m i l l i o n / y e a r of t h e CMA p r o p o s a l and
to a l s o i n c l u d e o t h e r revenue p r o p o s a l s c u r r e n t l y b e f o r e Congress.
Subsequent t o t h i s d i r e c t i v e , H.R. 5640 w a s i n t r o d u c e d w i t h a f e e d s t o c k t a x
and a waste-end t a x on d i s p o s a l a s t h e p r i n c i p a l funding v e h i c l e s . * Rates were
f o u r times g r e a t e r t h a n t h o s e proposed by CLYA f o r t h e f e e d s t o c k t a x and a t least
three t i m e s g r e a t e r f o r some major d i s p o s a l c a t e g o r i e s i n t h e waste-end o p t i o n .
I t is t h e r e f o r e a p p a r e n t t h a t a CMA economic impact s t a t e m e n t must c o n s i d e r
how C M A ' s f e e d s t o c k and waste-end tax c o n c e p t s are economically s u p e r i o r t o
t h o s e of H.R. 5640.
C E R C W TAXES
The CZRCLA f e e d s t o c k t a x h a s been i n e f f e c t f o r t h r e e years and IRS p r o v i d e s
d a t a on c o l l e c t i o n s q u a r t e r l y which i s analyzed by p r o d u c t and number o f taxp a y e r s . I t i s p o s s i b l e t o compare t h e taxes p a i d w i t h i n f o r m a t i o n i n t h e p u b l i c
domain o n p r o d u c t i o n rates, s a l e s revenue and p r o f i t s far t h e i n 6 u s t r y s e c t o r .
Under CERCLA, t h e i n d u s t r y p a i d taxes on 11 primary p e t r o c h e m i c a l s of $155-165
m i l l i o n d o l l a r s a n n u a l l y . Although t h i s t a x revenue i s a b o u t 2 0 p e r c e n t below
l e g i s l a t i v e l y p r o j e c t e d c o l l e c t i o n s , i t amounted t o 1.2 p e r c e n t of sales revenue.
C o l l e c t i o n s c o u l d n o t be compared w i t h p r o f i t s , since t h o s e p r o d u c t s showed a
n e t l o s s f o r 1982 and 1983 combined. H.R. 5640 would i n c r e a s e annual t a x e s t o
more than $600 m i l l i o n d o l l a r s and s e t t h e rate a t more t h a n 4 p e r c e n t of s a l e s .
CERCLA's p o s t - c l o s u r e t a x is a waste-end t a x which is somewhat comparable t o
CW's proposed waste-end tax.
I t d i f f e r s i n tax rate and c o v e r s fewer waste
d i s p o s a l c a t e g o r i e s . I t h a s been i n e f f e c t o n l y s i n c e t h e f o u r t h q u a r t e r of
1983 and c o l l e c t i o n r e s u l t s a r e minimal. N e v e r t h e l e s s , when t h e s e c o l l e c t i o n
data a r e a d j u s t e d from C.%'s h i g h e r proposed t a x r a t e s (S50/ST) and g r e a t e r
coverage, i t s u p p o r t s t h e p o t e n t i a l f o r a waste-end t a x revenue of $300 m i l l i o n
annually.
CYA'S WASTE-END
TAX PROPOSAL
I n o r d e r t o g e t a rough assessment o f t h e impact of a waste-end t a x on CMA
membership, waste d i s p o s a l q u a n t i t i e s on a d r y weight b a s i s of 60 member
company r e s p o n d e n t s o u t of 170 U.S. CMA member companies were compared on a
CMA 074690
I
Page 2
c o n f i d e n t i a l b a s i s w i t h sales revenues and e a r n i n g s of t h o s e companies.
s t a f f analyzed p o t e n t i a l SSO/ST d r y weight waste-end t a x l i a b i l i t y of
rn member companies u s i n g 1982 waste d i s p o s a l and 1983 chemical s a l e s / p r o f i t s .
G -
With t h e CMA waste-end tax p r o p o s a l a s t h e tax v e h i c l e , responding CMA
member company impacts on a n annual b a s i s would be t h e f o l l o w i n g :
o
Comparison with a n t i c i p a t e d revenues--We
e x p e c t e d t h a t 170
C,"IA member companies would pay $126 m i l l i o n of t h e $300 m i l l i o n
annual $50/ST d r y weight tax; 60 members i n t h e respondent
group would pay $85 m i l l i o n or 67 p e r c e n t of a n t i c i p a t e d t a x e s
f o r t h e e n t i r e CMA membership.
H.R.
o
Concentration--Ten o f 60 r e s p o n d e n t s would pay $76.3 m i l l i o n
of t h e $85 m i l l i o n t o t a l .
o
Economic impact--Of t h e t o p 10 t a x p a y e r s , two l o s t money i n
1983, a t h i r d company would pay 59 p e r c e n t o f e a r n i n g s , and t h e
remaining seven would pay 0.9 t o 4.0 p e r c e n t o f e a r n i n g s . None
of t h o s e t a x p a y e r s would pay more t h a n 1.1 p e r c e n t of sales.
O u t s i d e o f t h e 10 t o p t a x p a y e r s , none o f t h e remaining 50 would
be t a x e d i n e x c e s s of 2.6 p e r c e n t of e a r n i n g s .
.
5640 WASTE-END TAX
'then d a t a on i n d u s t r y a v e r a g e s a r e u s e d , i t a p p e a r s t h a t t h e waste-end t a x
of H.R. 5640 could c o s t GINA members a s much as 300 p e r c e n t o f C L W ' s
$50/ST p r o p o s a l . S i n c e H . R . 5640 would t a x d i l u t e s t r e a m s w i t h low s o l i d s
c o n t e n t on a l i q u i d b a s i s , r a t h e r t h a n a dry weight b a s i s , . t h e $5 t o
S l S / m e t r i c t o n t a x on t h e l i q u i d s b a s i s c o u l d be as much a s $75 t o $150/ST
on a d r y weight b a s i s . Companies d i s p o s i n g o f s t r e a m s more d i l u t e t h a n
average would, of c o u r s e , pay even h i g h e r rates and be p e n a l i z e d f o r water
added t o make t h e waste d i s p o s a l safer and improve o p e r a b i l i t y .
JO3S/I41PORTS/EXPORTS/8XANCE
I
OF PAYMENTS
Two econometric models which w e hoped t o a d a p t t o show t h e impact of h i g h e r
t a x e s on p e t r o c h e m i c a l i n v e s t m e n t , j o b s , and b a l a n c e o f payments were found
t o be n o t s u f f i c i e n t l y s e n s i t i v e o r c o n v e r t i b l e on a t i m e l y b a s i s f o r t h a t
purpose. Pie are r e v i s i n g methodology t o u s e a n e m p i r i c a l approach t o a n a l y s i s
of p a s t data t o develop p r o j e c t i o n s o f economic impacts. The r e s u l t s w i l l
l i k e l y r e l y on examples r a t h e r t h a n completely q u a n t i t a t i v e r e s u l t s b u t w i l l
demonstrate t h a t e x c e s s i v e Superfund taxes w i l l a d v e r s e l y a f f e c t j o b s ,
i n t e r n a t i o n a l c o m p e t i t i v e n e s s and b a l a n c e o f payments i n p e t r o c h e m i c a l s .
ACTION REQUIRED:
EC
BD
For I n f o r m a t i o n Only.
6/6/84
6/'6/84
Hugh I r v i n e
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EXHIBIT E
REPORT ON PUBLIC COMPENSATION
TO THE EXECUTIVE COMMITTEE
As requested by the Executive Committee, the Public Compensation
Task Group has continued to analyze various issues related to public
compensation. In this report the task group has defined advocacy
alternatives for waste site compensation that might be appropriate for
several possible outcomes of the study of the health effects associated
with waste sites being done by the Universities Associated for Research
and Education in Pathology (UAREP). The task group has also prepared a
brief summary on workplace disease compensation that includes advocacy
concepts still under review.
This report has three sections:
o
Section I, Status of Public Compensati.on Legislation, provides
a brief update of federal and state -legislative initiatives in
public compensation.
o
Section 11, Compensation for Wa_s_teSite Injuries, outlines
advocacy alternatives that might be appropriate for various
UAREP study scenarios.
o
Section 111, Workplace Disease Compensation,
includes brief
-background information on the subject, a description of other
advocacy groups activity in the issue, and a list of options
that the Task Group is still reviewing.
-
By way of an additional update, the UAREP study is on schedule and
under budget. UAREP has adopted management practices that enable the
study to stay on track.
The UAREP Executive Science Panel met on May 3 and 4 to assemble
the separate chapters of the study into an initial draft. This draft
was then reworked into a review draft at the end of May. Because the
terms of the contract guarantee UAREP's complete independence, CYA has
no knowledge of the draft's substantive content.
The Board of Sponsors has suggested that UAREP conduct a peer
review of the draft document before its release for general public
comment. A peer review would take 6 to 8 weeks, and would move the
document's public release to late July or early August. A work group of
company representative's and CMA staff are preparing a communications
program to discuss the UAREP study results.
c
A
CMA 074692
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I. STATUS OF PUaLIC COMPENSATION LEGISLATION
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Rep. Florio's New Superfund Reauthorization Bill. (B.R. 5640):
On May 9, 1984, Congressman Florio introduced a new "compromise"
Superfund bill. This staff product of Rep. Florio, Dingell and other
key members was prepared after the House Commerce Transportation and
Tourism Subcommittee voted 5-4 to reject the original Florio bill of
February 9 , 1984 (H.R. 4813). Hearings on the bill have n o t been held,
but we expect markup to take place on May 23. The bill will then begin
moving through the House for action this year because of compromises
made by key Congressional members and its broad-based sponsorship. The
bill does not create an administrative scheme or provide funding for
personal injury claims. There are no shifting burdens of proof for
proving causation. The bill would create a new "federal cause of
action", however, allowing persons alleging injury from waste sites to
bring a tort suit in federal court. Liability under the bill is strict,
joint, and several with provisions allowing courts to apportion damages
and defendants to show that responsibility for damages was divisible.
Despite the strict, joint and several liability provisions in the
bill, some Congressmen and advocacy groups are reluctant to support this
portion of the bill because the administrative fund concept has been
deleted. Politically, they believe the federal cause of action giving
victims injured by waste site substances a viable federal avenue of
redress would weaken the case for an administrative fund. The b i l l
itself is a recent development and deserves further study.
Senate Hearings on Superfund Reauthorization: On May 16, 1984, Mr.
Edwin C. Holmer testified on behalf of CMA on various Superfund reauthorization issues, including public compensation. CPA's testimony,
which parelleled comments made in the past, called for separating the
compensation issue from waste site cleanup and for obtairiing more
scientific information on possible waste site disease relationships,
Although no companion bill to Mr. Florio's (H.R. 5640) has been
introduced in the Senate, Sen. Stafford's Committee on Environment and
Public Works asked CMA to address public compensation issues similar to
those raised by Rep. Florio's. It's unclear whether the Senate will act
on a public compensation measure this term, although the prospects for
such action at this time remain unlikely. The Senate leadership,
legislative priorities and limited time remaining in this session make
it difficult for public compensation advocates in the Senate to act.
Massachusetts Study Commission on Waste Site Compensation: A study
commission established by the Massachusetts legislature has been holding
hearings on compensation-€or waste site injuries. The commission is
examining the adequacy of existing legal remedies in Massachusetts for ,
these injuries, and the necessity for an administrative fund. The study
of health effects at the Woburn site is fueling the debate in this
state.
-3-
Members of the cask group and CMA staff have worked with the state
industry representatives to brief them on CMA's public compensation
activities and to help elicit testimony before the Commission from key
individuals. Hearings will end on June 3 0 , a preliminary report
outlining issues will be released in the early summer, and a final
report will be published by spring 1985. Dr. Bruce Karrh (DuPont) is
scheduled to testify before the hearings finish at the end of June.
New Jersey Victims' Compensation B i l l :
Victim's compensation legislation was introduced in New Jersey
earlier this year which would establish an administrative compensation
fund, financed by industry fees, which would also have the potential to
adversely impact the tort system. Originally, hearings had bgen
expected to be held as early as March. However, committee activity is
now not expected to begin before June and possibly not until the summer
or early fall.
Despite the delays in moving the legislation, the potential f o r the
passage of onerous and precedent setting legislation remains h i g h if the
sponsors decide t o aggressively move the proposal. With this in mind,
State Affairs Committee members and CMA staff have been working closely
with the New Jersey Chemical Industry Council preparing for the
possibility of hearings and substantive discussions on the bill. New
Jersey CIC representatives have met privately with the sponsor to
determine his schedule and priorities with with respect to the bill.
Activity on both the federal and state fronts will continue to be
closely coordinated t o the maximum possible extent to ensure consistency
in the chemical industry's position.
07
-4-
11. COMPEXSATION FOR WASTE SITE INJURIES
The UAREP study has proceeded under conditions which precluded
CMA's acquiring knowledge of its direction or potential conchston..
TO
minimite surprise, the Task Force has postulated four Scenarios and
discussed CMA'S possible actions in response to each. The Scenarios are
as follows:
Scenario I: A major national public health problem exists as a
result of exposure to hazardous waste sites. A substantial
A substantial number of exposed
population is at risk.
persons have manifested chronic disease of a type reasonably
related to the exposure. A substantial number of persons have
been exposed and have not as yet manifested a chronic disease
or its symptoms (latency group) but realistically fear the
onset of chronic disease.
Scenario 11: A minor public health problem exists as a result
of exposure to hazardous waste sites. A small population is
at risk. A limited number of persons have manifested chronic
disease of a type reasonably related to the exposure. A small
number of persons have been exposed and have not as yet
manifested chronic disease or its symptoms (latency group) but
realistically fear the onset of chronic disease.
Scenario 111: The data generated by the study is incomplete,
equivocal or unverifiable so that no inferences may be drawn
concerning human health effects resulting from exposure to
hazardous waste sites.
Scenario IV: No public health problem exists as a result of
exposure to hazardous waste sites In any population nor will
any population in the future suffer adverse health consequences as a result of exposure to hazardous waste sites.
While CMA has no information from UAREP on the study's conclusions,
the task group believes scenarios X and XV are unlikely, and that
scenarios 11 and 111 are most probable. Nevertheless, scenarios I and
IV were considered in order to be complete in preparing for the study's
release.
CMA
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The chart below summarizes how the various advocacy options that
the task group has considered might apply under the four UAREP
scenarios.
UAREP FINAL REPORT
I. Major Problem
11. Minor Problem
111.
IV.
- Widespread
- Limited
Incomplete Data
- POSSIBLE SCENARIOS
exposure and problems with disease
exposure and few problems with disease
- No
conclusions, need
collection
for additional data
No Problem of Public Health
UAXEP SCENARIOS
I
I1
I11
IV
X
X
x
X
CMA OPTIGNS
1.
CERCLA § 104
Health Surveillance
X
X
2.
Private Insurance
X
X
3.
Administrative
Fund
X
4.
Federal Cause
of Action
X
X
Public Health Surveillance at Waste Sites: Most of the
o
proposals related to victim's compensation have attempted to deal with
the issue in one of two ways: 1) establish a no-fault federal administrative fund to reimburse alleged victims; and 2) change existing tort
law to shift the burden of proof to a defendant and force him to prove a
negative. The Task Group recognized that both of these changes were
attempts to deal with the problem of causation, or the relationship
between exposure to a hazardous substance and a disease. Causation has
been the central issue of debate on victim's compensation.
4
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After two y e a r s of s t r u g g l e w i t h t h e c a u s a t i o n issue, t h e t a s k
group h a s been u n a b l e t o develop any system t h a t would change curxetrt:
s t a n d a r d s of s c i e n t i f i c and l e g a l p r o o f , y e t s t i l l be intellectuaJ.,l.y
a c c e p t a b l e . Past e x p e r i e n c e w i t h f e d e r a l a d m i n i s t r a t i v e f u n d s c l e a r l y
i l l u s t r a t e d t h e d a n g e r s of g r a d u a l l y i n c r e a s i n g coverage, a l o n g w i t h an
almost geometric growth i n fund s i z e . Changes i n burden of proof does
v i o l e n c e t o s c i e n t i f i c n o t i o n s of cause and e f f e c t . T h e r e i s , moreover,
a r e a l danger t h a t such a change i n t h e t o r t l a w w i l l be c a r r i e d o v e r t o
worker's compensation and p r o d u c t l i a b i l i t y .
The t a s k group agreed t h a t a middle ground was needed. Our g o a l
was t o develop a p o s i t i v e program t h a t would d e a l w i t h p u b i i c
p e r c e p t i o n s of t h e hazardous waste exposure problem.
'
We recommend t h a t CMA s u p p o r t a r e v i s i o n of S e c t i o n 104(1)(4) and
=
f 5 ) of CERCLA t o p r o v i d e f o r more s i t e s p e c i f i c h e a l t h s t u d i e s and
medical m o n i t o r i n g a t o l d hazardous waste s i t e s . Our proposed changes
t o t h e s t a t u t e would g i v e t h e C e n t e r s for Disease C o n t r o l (CDC) new
a u t h o r i t y t o i n v e s t i g a t e h e a l t h c o n c e r n s around waste s i t e s i n
s i t u a t i o n s t h a t posed l e s s t h a n a p u b l i c h e a l t h emergency ( o n l y p u b l i c
emergencies can now be i n v e s t i g a t e d ) . CDC would be a b l e t o conduct
h e a l t h s t a t u s s u r v e y s and s c r e e n i n g programs of people exposed t o
hazardous s u b s t a n c e s .
Our approach treats t h e p u b l i c p e r c e p t i o n t h a t o l d waste s i t e s are
c a u s i n g d i s e a s e and i l l n e s s as a p u b l i c h e a l t h problem r a t h e r t h a n a
problem of how t o d e l i v e r compensation under t h e c u r r e n t ; o r any
proposed l e g a l system.
1;
I
The o b j e c t i v e s of o u r proposed changes t o S e c t i o n 104 are: p r o v i d e
g r e a t e r f l e x i b i l i t y t h a n now e x i s t s t o u t i l i z e t h a t s e c t i o n f o r medical
surveillance; l i m i t the s u r v e i l l a n c e t o i n d i v i d u a l s demonstrating a c t u a l
exposure from hazardous s u b s t a n c e s (as d e f i n e d in CERCLA); and r e s t r i c t i n g a p p l i c a t i o n of t h e s e c t i o n t o s i t e s p e c i f i c exposures from "old"
s i t e s r a t h e r t h a n ambient e x p o s u r e s . The proposed s t a t u t o r y change
allows t h e A d m i n i s t r a t o r (H.E.W.)
d i s c r e t i o n i n developing the protocols
f o r such s u r v e i l l a n c e . It was t h e t a s k g r o u p ' s consensus t h a t w e would
be b e t t e r a d v i s e d n o t t o p u t t o o much d e t a i l in the s t a t u t e , and i n s t e a d
work w i t h t h e a p p l i c a b l e agency on t h e p r o p e r p r o t o c o l o r scheme used t o
c a r r y o u t t h e s t a t u t o r y mandate.
F u r t h e r , t h i s approach a l l o w s us t o b u i l d on t h e UAREP s t u d y .
L'nder any of t h e p o s s i b l e r e s u l t s of t h a t work, t h e approach s u g g e s t e d
h e r e could be used.
0
I n s u r a n c e Coverage f o r People Exposed t o Waste s i t e Subs t a n c e s : I n t h e e v e n t government h e a l t h o f f i c i a l s d e t e r m i n e t h a t p e o p l e
ad j acen t t o w a s t e s i t e s have been s i g n i f i c a n t l y exposed t o hazardous
s u b s t a n c e s , t h e long-term h e a l t h s t a t u s of t h e exposed p o p u l a t i o n would
be u n c e r t a i n . To t h o s e who were exposed, t h e u n c e r t a i n t y of contracting
a c h r o n i c d i s e a s e w i l l l i k e l y p e r s i s t i n the form of f e a r and a n x i e t y .
-7-
The Task Group i s recommending a d o p t i o n of p r i v a t e p a r t y insurance
p o l i c i e s f o r p e o p l e exposed t o hazardous waste s u b s t a n c e s . These would
be s i m i l a r t o t h e s t r u c t u r e d s e t t l e m e n t s of t o r t s u i t s t h a t some
companies have used t o resolve environmental l i t i g a t i o n cases. The t a s k
group is not recommending l e g i s l a t i v e changes a t t h i s t i m e , b u t i s
s t u d y i n g f u r t h e r whether f e d e r a l government involvement i n t h i s matter
would be a p p r o p r i a t e .
,
The i n s u r a n c e p o l i c y would a p p l y t o people exposed t o waste s i t e
s u b s t a n c e s b u t who have n o t m a n i f e s t e d d i s e a s e . A t t h e e l e c t i o n of
r e s p o n s i b l e p a r t i e s who are i d e n t i f i e d and connected w i t h a waste
s i t e , t h e exposed p o p u l a t i o n would be o f f e r e d a f u l l y - p a i d i n s u r a n c e
p o l i c y . T h i s p o l i c y would cover p e r i o d i c medical t e s t i n g and
examination f o r e v i d e n c e of a d e s i g n a t e d c h r o n i c d i s e a s e o r d i s e a s e s
l i k e l y t o be caused by t h e exposure. These examinations woulQ c o n t i n u e
for t h e l i f e of t h e i n d i v i d u a l . I f t h e d i s e a s e d e v e l o p s , t h e p o l i c y
would pay a l l medical e x p e n s e s , l o s t wages o r e a r n i n g s , b u r i a l expenses,
and a lump sum f o r a n x i e t y and p s y c h o l o g i c a l trauma a s s o c i a t e d w i t h t h e
d i s e a s e . An i n d i v i d u a l a c c e p t i n g t h e i n s u r a n c e coverage would waive
h i s / h e r t o r t r i g h t s against the responsible p a r t y o r p a r t i e s providing
t h e i n s u r a n c e coverage.
The t a s k group b e l i e v e s t h e p r i v a t e p a r t y i n s u r a n c e , a p p r o a c h
a f f o r d s companies s e v e r a l advantages i n c l u d i n g reducing t h e f e a r compon e n t accompanying t h e exposure. Two of t h e s e advantages a r e :
e l i m i n a t i n g l i t i g a t i o n c o s t s , ar,d c h t a i n i n g epidemiology d a t a t o b e t t e r
understand cause and e f f e c t r e l a t i o n s h i p s between exposure t o waste s i t e
s u b s t a n c e s and c h r o n i c d i s e a s e . It o f f e r s t h e exposed p o p u l a t i o n t h e
obvious b e n e f i t s of medical examinations and, i f t h e d e s i g n a t e d d i s e a s e
e n s u e s , h e a l t h c a r e and money.
The u t i l i t y of t h i s o p t i o n w i l l depend on t h e e x t e n t t o which
people have been exposed t o waste s i t e s u b s t a n c e s and, t h e r e f o r e , t h e
number of p e o p l e who p o t e n t i a l l y would q u a l i f y f o r t h i s i n s u r a n c e p l a n .
The t a s k group p l a n s t o work w i t h i n s u r a n c e r e p r e s e n t a t i v e s t o d e t e r m i n e
t h e c o s t s of t h i s o p t i o n .
o
A d m i n i s t r a t i v e Fund: I f i t should become n e c e s s a r y t o
e s t a b l i s h a s e p a r a t e system t o compensate people f o r c h r o n i c d i s e a s e
caused by waste s i t e s , t h e t a s k group recommends a d o p t i o n of t h e
c o n c e p t s and p r i n c i p l e s provided t h e Executive Committee i n A p r i l 1983.
CMA would be p r e p a r e d t o a r g u e t h a t t h e p r i n c i p l e s of e l i g i b i l i t y ,
damages, c a u s a t i o n , e x c l u s i v i t y , funding, and d e l i v e r y mechanism t h a t we
prepared l a s t y e a r should a p p l y i n any a d m i n i s t r a t i v e fund t h a t t h e
government t r i e d t o s e t up. The t a s k group h a s modified t h e o r i g i n a l
damages p r i n c i p l e proposed t o t h e Executive Committee i n 1983. The
change i n v o l v e s capping any damages award t o an e l i g i b l e c l a i m a n t and
o f f s e t t i n g i t w i t h money h e r e c e i v e d from employment o r o t h e r
e n t i t l e m e n t programs. Other t h a n f o r damages, t h e waste compensation
p r i n c i p l e s proposed a y e a r ago f o r an a d m i n i s t r a t i v e fund remain i n t a c t .
CMA 074698
-8-
Members of the task group believe an administrative fund for
hazardous waste compensation would be appropriate only under U W P
Scenario I, where the study showed a major national health problem
exists. Past experience with other government programs involving
financed funds (e.g. the Black Lung Program), warrants
industry
proceeding with an administrative fund only where other legal remedies
prove inadequate. Such a situation might exist where large numbers of
claimants injured by waste site substances would swamp the tort system
and other compensation alternatives. Until this occurred though, the
task group believes a federal administrative fund should be avoided.
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o
Federal Cause of Action: In its simplest form, a federal cause
of action would give plaintiffs a right of access to federal courts to
pursue their tort claims for injuries received from exposure to waste
site substances. Such a right exists today under federal statute for
many claimants. In modified form, a federal cause of action might be
accompanied by other elements affecting liability such as causation
presumptions, shifting burdens of proof, and strict standards of
liability. Once a federal cause of action became law, court
interpretation and Congressional tinkering could easily modify the
federal right as originally conceived by Congress and adversely affect
con?panies' liability.
For these reasons, the task group believes there are significant
risks in endorsing a federal cause of action provision i n any
legislation. On the other hand, if our companies were forced to choose
among options such as a federal administrative fund, changes in burdens
of proof, o r causation presumptions, the task group would prefer a
"clean" federal cause of action.
A federal cause of action might be appropriate under any of the
four UAREP scenarios, depending upon other legislative proposals. In
contrast to the recommended CERCLA Section 104(i) change, CMA would be
r o r e hesitant to advocate adoption of a federal cause of action. Most
likely it would be a position to which CMA would retreat in the face of
other, nore onerous legislative proposals.
CMA 074699
I
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111.
WORKPLACE DISEASE COMPENSATION
Eackground
The workers' compensation laws of all 50 states provide broad
coverage for disability or death due to occupationally related disease.
The administrative system in place in the states are fairly efficient in
their operations and are designed to deliver prompt benefits at a low
transaction cost. Benefit funding mechanisms in use by self-insured
employers and insurance carriers are reliable and reasonably efficient.
No state program has yet experienced unmanageable numbers of
occupational disease claims.
khile the existing workplace benefit systems are sound, there has
a growing perception that workplace disease victims are not treated
fairly under workers' compensation laws. Although state laws vary
considerably, criticisms of the existing system. suggest (1) that benefit
azounts paid are too low; ( 2 ) that arbitrary notice and filing
limitations operate to bar many otherwise valid claims; and (3) that
proof of occupational causation is too difficult or costly to obtain.
Some or all of these views are shared by organized labor, some other
employee groups, some employers, some legislators, and some prominent
academicians.
',ten
From an employer's or manufacturer's perspective, it is clear that
workplace disease claims are, with increasing frequency, finding their
way into the tort system. In the case of a workplace exposure to a
known or suspected toxic substance, a tort theory of recovery may be
sustained against a manufacturer of the substance, or in some instancesI
against the employer itself, on the basis of traditional products
liability concepts or various creative theories which seek to avoid the
exclusive remedy protections in state workers' compensation laws.
Resorting to the tort system, with its potential for much higher awards,
higher attorneys' fees, and sympathetic jury verdicts, appears to be a
course that is pursued with increasing frequency.
Reform Activities
Dissatisfaction with the existing workers' compensation systems of
the states coupled with the asbestos disease litigation crisis which has
materialized has generated considerable activity in the past year. The
most prominent of these efforts are as follows:
o
In 1982 and again in 1983 Congressman George Miller (D.
Calif.) introduced legislation to create a federally administered
occupational disease compensation program funded by employers, and
to some extent by product manufacturers. This legislation, which
focused on asbestos and radon daughters, but could easily be
expanded to other substances, is now dormant but is not abandoned.
o
In June 1983 the Crum and Forster Insurance Company issued a
set of comprehensive proposals to reform state workers'
ccmpensation programs.
CMA 074700
.
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o
The insurance industry trade associations together with state
workers' compensation program administrators are now involved in an
effort to propose comprehensive system reform.
o
The AFL-CIO (Industrial Union Department) has assumed an
active role in pursuing broad-based reforms and favors a
federalized benefit system and continued access to the tort system.
The U.S. Chamber of Commerce has announced its support for
reform of state workers' compensation systems.
o
The Business Round Table is commissioning studies of workplace
disease reform funding and mechanisms for determining occupational
causation of disease.
o
A number of asbestos manufacturers have drafted legislation to
create a supplemental federally administered compensation program
for asbestos disease victims. The proposal has no congressional
sponsorship at this time.
o
The Kasten Bill (S.44) which would establish mandatory federal
standards for product liability suits proposes to integrate
workers' compensation and tort remedies.
o
CMA's Public Compensation Task Group has monitored all of these
activities and had undertaken an independent investigatlon of the
matters at issue from the prospective of the chemical manufacturing
industry. It appears that there are substantial industry interests at
stake and that those interests are focused primarily on the increasing
spillover of workplace disease claims into the tort system. A better
integration of the two systems and more rational methods for
distributing workplace disease liabilities are objectives which merit
the careful attention of the industry. The obligation to promote the
equitable compensation of chemical industry workers afflicted by
occupational disease, and the prevention of disease are also identified
as areas of substantial interest.
I
I
However, these aspects of the universe of workplace disease
concerns cannot be addressed apart from the interests of other involved
groups. In addressing the larger context the Committee has identified
15 general target principles to aid in the evaluation of evolving
workers' compensation reform proposals.
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CMA 074701
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. . .
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-11-
Target Principles And Objectives For Workers' Compensation Reform
1.
Prevention:
If occupational disease compensation reform
proceeds, the reforms agreed upon should actively promote disease
prevention and involve employers and employees in prevention
initiatives.
2.
The creation of a new federal occupational
Federalization:
disease compensation system is not warranted.
3.
Delivery System:
Occupational disease victims should be
equitably compensated within existing state workers' compensation
systems.
4.
Exclusive Remedy:
Workers' compensation must be the exclusive
remedy for disability or death caused by workplace disease. A
workers' compensation claim must be pursued prior to any effort to
seek tort recovery against a third party and that recovery should
be reduced by the current value of worker's compensation benefits
including medical care benefits. Employers' subrogation rights and
third-party rights to contribution or indemnity should be
abolished. Workers' compensation reform should be consistent and
integrated with product liability reforms endorsed by the chemical
industry. It is appropriate to explore proposed mechanisms t o
eliminate tort suits altogether in workplace disease claims through
manufacturer participation in workers' compensation benefit
programs.
5.
Eligibility:
Disability or death attributable to an occupational
disease should be compensated but eligibility decisions must be
based upon established and uniform scientific standards with
sufficient flexibility to encompass the extraordinary case.
6.
Causation:
Occupational causation should be determined by
occupational disease experts using established, uniform scientific
criteria developed by scientists in light of the best information
available. Presumptions and similar arbitrary legal 'devices are
incompatible with evolving science-based standards and are
inappropriate.
7.
Multiple Causation: A disease traced to multiple causes is not
compensated unless its occupational origins are medically
sigcificant.
8.
Statute Of Limitations: A claim should be filed within one year
from the date of actual or imputed discovery that an occupational
disease has been manifested or within one year from death due to an
occupational disease.
9, Notice, And Definitional Limitations: Arbitrary notice of claim
requirenents and unscientific or unfair definitional limitations
which preclude recovery in occupational disease claims should be
repealed.
CMA 074702
-12-
10.
DisabilityfDeath: An employer should be liable for disability
compensation only t o the extent that the disability is caused by
occupational factors; death benefits are appropriate only if death
was significantly related to or materially caused by occupational
disease. Disability and death inquiries are properly made by
medical experts,
11.
Benefits: Cash benefits paid should be computed in light of actual
wages lost, subject to statutory maxima and minima. In latent
disease cases, benefits should not be unreasonably low solely
because the last exposure occurred years earlier. Medical care
should be available without arbitrary restriction.
12.
Retirees: Disease compensation benefits are properly reduced only
by Social Security old age benefits.
13. Liability:
Disease compensation benefits are properly paid by
the last employer exposing the worker to a hazardous substance or
condition.
14.
Funding: Benefits liabilities must be insurable through existing
workers' compensation insurance Eechanisms.
15.
Retroactivity: Occupational disease ccmpensation system reforms
should be prospective. However, any retroactive application of
reforms must carry back exclusive remedy protections if benefit
obligations are extended to cover past incidences of disease.
Alternatives And Options Under Review
1.
2.
At this time there is no apparent need to support or propose
substantial changes in the occupational disease compensation
systems of the states. Current recommended options are:
o
Take no action to change existing systems;
o
Support modest state system reforms in statutes of
limitations, medical causation, etc.
o
Continue to monitor ongoing efforts pursued by others; develop
and refine CMA positions and alternatives.
o
Oppose federal involvement in occupational disease reform.
If more extensive occupational disease reform proposals gain
momentum, and there is a likelihood that some will in the next year
or so, the development and consideration of creative alternatives
may be essential to a realization of chemical industry objectives.
A number of promising alternatives and options have surfaced within
the Committee and are the subject of continuing discussion. These,
include :
e
CMA 074703
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o
A proposal to combine a disease prevention and health
surveillance system with traditional state workers'
compensation programs through a series of economic incentives
and disincentives which are designed to encourage employer and
employee participation in disease prevention initiatives, to
reward employee participation with increased benefits, and to
justify employer participation with improved protections from
tort suit. Other benefits which might accrue in this approach
include lower transaction costs, better medical records
compiled by employer-selected medical specialists for use i f
disease occurs, and an increased likelihood of early
detection, prompt treatment, and a return of the worker to
gainful employment.
o
Proposals which may facilitate the integration of a;l workers'
compensation and tort liabilities which may arise out of
occupational exposures to hazardous substances, with a view
toward limiting chemical macufacturing industry liabilities
arising from workplace disease.
o
Proposals to seek federal health agency participation in the
development of medical standards f o r use in claims.
I
o
Approve the recommendation to amend CERCLA Section 104(i) to
provide for more site specific health studies and medical
monitoring.
o
Review other options for waste site compensation and
principles for workplace disease compensation.
I
CMA
EC
BD
- 6/6/84
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6/6/84
CMA 074704
1
. . .
EXHIBIT F
REPORT OF THE TECHNICAL DIRECTOR
The Technical Director's report highlights CMA accomplishments and
activities in its advocacy of prime issues.
C 0kIM E R C I A L P R 0 D U C T ION 0 F C HEM I CA L S
--
TSCA REGULATION OF RESEARCH &TI DEVELOPMENT (R&D)
The Office of Toxic
Substances (OTS) is developing a proposed rule that will impose
requirements on research and development activities for commercial
chemicals. OTS is proposing the rule to implement TSCA Section 5(h)(3)
and
complete the final rule for premanufacture notification (P?lN). The
proposed rule will include provisions f o r recordkeeping, hazard analysis,
and risk notification of R&D chemicals. The Chemical Regulations Advisory
Committee (CIUC) is working with OTS staff to ensure that the requirements
of this rule do not have an adverse impact on innovation. OTS expects to
publish the proposed rule in the fall of this year.
--
CRAC has developed a proposal for
XXPORT CERTIFICATION FOR R&D SHIPMENTS
CPA to create a special provision for shipments of RhD chemicals subject to
the TSCA Section 13 import certification rule. The Section 13 rule
requires that importers o f chemical shipments certify either that the
shipment is not subject to TSCA or that the shipment is in compliance with
TSCA and all rules or orders under TSCA. For many shipments of R&D
substances, the certification of TSCA compliance is not possible because
the identity of the substance is unknown and, in fact, the substance is
being imported for analysis and identification. Even where the identity of
the substance is known, the import certification rule imposes burdensome
requirements on the thousands of shipments imported for R&D purposes. The
CRAC proposal emphasizes that R&D chemicals are used under the supervision
of individuals that are trained in safe handling procedures which minimize
t h e risk from exposure.
--
On May 7 , CRAC
STATEMENT ON NATIONAL RESEARCH COUNCIL (NRC) STUDY
submitted a statement to the Senate Subcommittee on Toxic Substances and
Environmental Oversight. The Statement presented CMA's view of the NRC
report Toxicity Testing: Strategies to Determine Needs and Priorities,
which was the subject of an April 10 Senate hearing. The statement
emphasized that the design of-the NRC study limits-the conclusions that can
be drawn from the study. In particular, the statement points out that the
NRC study did not include many ongoing or recently completed testing
activities, such as those at CIIT, in response t o TSCA Section 4 , or the
testing that individual companies sponsor. The Senate may use the NRC
study to justify the testing of all new chemicals.
--
ADMINISTRATOR'S TOXIC SUBSTANCES ADVISORY COWITTEE (ATSAC)
On May 9,
CRAC submitted a statement to ATSAC on confidential business information
(CBI).
The statement responds to 11 questions on CBI presented t o ATSAC by
Dr. John Moore, Assistant Administrator for Pesticides and Toxic
Substances. Dr. Moore is seeking ATSAC'S advice on confidentiality issues'
so that he can consider changes to the procedures used for handling
confidential business information submitted under TSCA.
i
CMA 074705
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CRAC's Risk Analysis Task Group is planning a symposium on error
propagation in risk analysis. The symposium will identify the. specific
nature of the problem of using overly conservative assumptions and suggest
ways of using more realistic methods.
CRAC's Impact Analysis Task Group is writing a paper on the chemical
industry's activities to reduce risk. The paper w i l l be based on an
industry survey completed last year, and will identify for the public what
the industry has been doing to reduce risks to health, safety, and the
environment.
BIOHEDICAL AND ENVIRONMENTAL SPECIAL PROGRAMS
-
BUTADIENE The Environmental Protection Agency (EPA) initiated regulatory
action on 1,3-butadiene under Section 6 of TSCA. The Agency detgmined
that the chemical may present an unreasonable risk. EPA is seeking
information to determine appropriate control measures. Five areas have
beer, designated in which information is being sought: 1) health effects;
2 ) manufacturing, processing, use and disposal; 3 ) human exposures; 4 )
appropriate controls and their costs; and, 5 ) substitutes.
-
CRESOLS
EPA has proposed that the cresols industry test various cresols
for potential health effects. Cresols manufacturers asked CMA to set up a
program on these chemicals. Accordingly, the Special Programs Division
convened an exploratory meeting and approved a tentative budget to cover
the initiation phase of the program.
The Program Panel w i l l work with EPA to develop a reasonable and sufficient
testing program. The Panel intends to evaluate the Agency's proposed
testing requirements in conjunction with additional data in order to
develop a reasonable testing program.
-
ETHYLENE DICHLORIDE (EDC)
On April 2 3 , 1984, EPA published its draft
Health Assessment Document on EDC. The Panel has hired an outside
consultant to prepare comments on EPA's draft Document. The comments w i l l
be filed by June 22, 1984.
I
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EPA released an external review draft of a Hazard
ETHYLENE OXIDE (EO)
Assessment Document on EO on April 23, 1984. Comments are to be submitted
by June 22 and EPA Science Advisory Board hearings are tentatively
scheduled for August. The Ethylene Oxide Industrial Council (EOIC)
Scientific Committee will develop comments and plans to form a Science
Panel consisting of EOIC members and consultants for the hearing.
-
FLUOROCARBONS On April 4, 1984, the Panel submitted comments to the U.S.
Department of State on the U.S Position Paper on protection of the ozone
layer.
The Panel continued its 1985 budget review in preparation for the
Management Briefing i n June.
i
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HETHYLENEDIANILINE (MDA)
The MDA Panel submitted to EPA and OSHA the
final report on its "Survey of Non-MDI Uses of 4,4'-Methylenedianiline".
The survey accounted for approximately 85 percent of the 1982 non-MDI uses
of 4,4-MDA.
-
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CMA 074706
3
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NAPHTHENATE METAL SOAPS The Interagency Testing Committee (ITC) in May
1983, recommended that EPA consider requiring manufacturers and processors
of calcium, cobalt, and lead naphthenates to conduct chemical fate, health
effects, and environmental effects testing on those three chemicals under
the Toxic Substances Control Act (TSCA). The CMA Naphthenate Metal Soaps
Program Panel and Shell Oil Company provided production, use, exposure and
health effects information to EPA and concluded that, in view of ongoing
research on those chemicals, no additional testing is necessary. On May
1 1 , 1 9 8 4 , EPA agreed with the industry position and signed a Federal
Register notice stating that it will not initiate rulemaking under Section
4(a) of TSCA.
-
NICKEL-CONTAINING CATALYSTS Manufacturers of nickel-containing catalysts
asked CMA to establish an advocacy program to respond to potential
regulatory activities within various government agencies. Accordingly, the
Special Programs Division convened an exploratory meeting which resulted in
a decision to form a Panel. A proposed ome-year budget was approved.
The Panel will represent the interests of nickel-containing catalysts
producers, adopting and conveying advocacy positions, as appropriate. To
support its positions, the Panel will collect information necessary to
assess safety, environmental and health issues.
-
POLYCHLORINATED BIPHENYLS (PCB)
The PCB Panel submitted comments in
response to EPA's Advance Notice of Proposed Rulemaking in the risks posed
from fires involving electrical transformers containing PCBs.
-
TITLYI~IDIOXIDE The CHA Titanium Dioxide Program Panel met with the
National Cancer Institute (NCI) on April 1 3 , 1 9 8 4 , to discuss NCI plans to
conduct an epidemiology study of titanium dioxide workers. NCI does not
plan to undertake any study on the chemical but is merely gathering
information on various chemicals to develop its priorities for future
projects. The Panel will continue to monitor activities of government
agencies and other research organizations interested in epidemiologic or
toxicologic studies.
-
VINYLIDENE CHLORIDE (VDC)
On January 9 , 1 9 8 4 , the Vinylidene Chloride
Program Panel filed written comments with EPA on the Agency's draft Health
Assessment Document on VDC. The written comments were followed by oral
presentation to the Science Advisory Board (SAB) on April 2 7 , 1 9 8 4 . In
addition to recognizing industry's concerns, SAB has raised its own issues
and has asked EPA to respond to various scientific issues in the next draft
document.
EFFECTIVE WASTE HANDLING AND DISPOSAL
INTERNATIONAL CONFERENCE ON LIABILITY AND COMPENSATION FOR DAMAGE IN
A CMA
CONNECTION WITH THE CARRIAGE OF CERTAIN SUBSTAVCES BY SEA
representative was a business advisor to the United States Delegation to an
International Maritime Organization Diplomatic Conference that opened on
April 30, 1984. The Conference addressed revisions to the International ,
Convention on Civil Liability for Oil Pollution Damage (1969); the
International Convention on the Establishment of an International Fund for
--
CMA074707
-
4
Compensation for Oil Pollution Damage (1971); and a proposed new
International Convention on Liability and Compensation in Connection with
the Carriage of Noxious and Hazardous Substances by Sea.
--
PHASE I1 RCRA IMPLPIENTING REGULATIONS LITIGATION SETTLEMENT
The
Environmental Management Committee (PIC) at its April 18, 1984, meeting
voted to authorize CMA entering into a proposed settlement agreement to
resolve
v.
All the regulations have been satisfactorily resolved
or mooted.
z.
--
FMC ANNUAL PLANNING SESSION
At its annual planning session on April 17,
1984, the Environmental Management Committee (PIC) covered a wide spectrum
of environmental issues. Specific attention was provided to the
groundwater issue and the need to develop a comprehensive CMA strategy, and
to environmental data relevancy for all media (i.e., sampling, analytical,
interpretation, etc.).
--
CMA AD HOC GROUNDWATER STRATEGY GROUP
Under the auspices of the
Environmental Management Committee, an ad hoc groundwater strategy group
was organized to develop a comprehensive CMA strategy for addressing
groundwater issues. Meetings were held on May 4 and May 17, 1984, with
staff and member company representatives of EMC, its task groups, GRC, SAC
and CRAC's Risk Assessment Task Group.
--
GROUNDKATER ANALYSIS
The EMC has approved a project that is designed to
provide more definitive evidence to EPA that the agency's existing
groundwater sampling/analysis methodologies (i.e. , SW-846) are
scientifically inappropriate for purposes of determining compliance.
HAZARDOUS WASTE TRACKING PROGRAM
--
CMA's hazardous waste tracking program
is operational with supplemental data continuing to be entered into the
system. The program has been expanded to handle data on groundwater,
drinking water, and monitoring-well information.
--
EPA SUPERFWD GUIDANCE PEER REVIEW
The EMC's Hazardous Waste Response
Task Group is conducting a peer review of two EPA Superfund guidance
documents
(1) Guidance on Remedial Investigations; and (2) Fates and
Effects Modeling at Superfund Sites.
--
--
EMC SEMIANNUAL ENVIRONMENTAL UPDATE
The Environmental Management
Committee conducted its semi-annual Environmental Update on Kay 22-23,
1984, in Washington, D.C. The one and one-half day program, attended by
approximately 150 persons, included comprehensive discussions on all
environmental issues and how they impact on chemical industry operations.
The luncheon speaker was F. Henry Habicht, 11, Assistant Attorney General
for Land and Natural Resources. He addressed general environmental issues
and offered some candid observations on enforcement at the Federal and
state level.
INCIDENTAL CHEhIICAL EXPOSURE A N D PUBLIC HEALTH
The Chemical Manufacturers Association and the Environmental Defense Fund
will jointly sponsor a symposium on the Health Effects of Industrial Waste
Sites at the AAAS annual meeting. The symposium will identify what is
t
5
known and what is not known about this controversial subject, and will
suggest scientific ways to fill data gaps.
e
The Universities Associated for Research and Education in Pathology ( U M P )
study of health effects associated with waste sites is on schedule. UAREP
is considering having the draft study "peer-reviewed'' prior to its release
for public comment. Such a review would move the release date to early
August
.
CLEAN WATER
--
e
EPA PRETREATMENT IMPLEMENTATION REVIEW TASK FORCE
CMA representatives
met with EPA on May 30, 1 9 8 4 , to discuss EPA's pretreatment program. The
group discussed: interim recommendations by EPA's Pretreatment
Implementation Review Task Force, removal credits workability, and general
policies and longer range pretreatment programs.
0
GAO DATA CONCERNING NPDES PERMITS NONCOMPLIANCE
On April 19, 1984, CMA
requested f r o m the U.S. General Accounting Office (GAO) information and
data concerning the organic chemicals category of the GAO report entitled
"Wastewater Dischargers Are Not Complying With EPA Pollution Control
Permits". Data on the frequency of noncompliance and the criteria with
which compliance was determined are specific concerns.
e
The Environmental
NATIONAL PRETREATMENT REMOVAL CREDITS AMENDMENTS
Management Committee's Water Policy Task Group has prepared a national
pretreatment removal credits amendment. These materials are designed for
use by Government Relations in its advocacy on the Clean Water Act.
--
--
CLEAN AIR
--
e
FUGITIVE EMISSIOh'S/E'LARES LITIGATION SETTLEMENT
The Environmental
Management Committee at its April 18, 1984, meeting voted to authorize CMA
entering into a proposed settlement agreement to resolve W ' s challenge of
EPA's new source performance standard for fugitive emission leaks and the
use of flare technology to control emissions.
e
The Environmental Management
EPA HAZARDOUS AIR POLLUTANT STRATEGY
Committee's Process Emission Regulations Task Group is working with EPA's
Office of Air Quality Planning and Standards in its reevaluation of a
national strategy for regulating hazardous air pollutants.
--
OCCUPATIONAL, SAFETY AND HEALTH
OSHA on improvements in their second draft of a proposed
standard €or confined space entry. Nevertheless, we suggested technical
changes in the latest draft. These dealt with definitions of "entry",
"hazardous atmosphere", "inerting", "solo entry", and other terms. We also
comented on the proposed requirement for listing, on the permit, names of
all who enter a confined space, reliance on outside help rather than
in-house rescue teams, and other aspects of the proposal.
0
CblA congratulated
0
The first symposium of a series on "Hazards Communication: Training and
Educating the Worker", held in Houston on April 2 4 , was well received. In
response to a suggestion from the audience, the program for future symposia
c
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6
in t h i s series vas revised to place more emphasis on the OSHA Hazards
Communication Rule's training requirements. The next symposium will be in
Philadelphia, June 14, and the last one in San Francisco, September 25.
SAFE AND COST-EFFECTIVE CHEMICAL PRODUCTS DISTRIBUTION
-
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HAZARDOUS MATERIALS REGULATIONS
INCIDENT REPORTS
An initial position
was prepared and mailed to industry representatives f o r their
consideration. Industry interest in this docket has been very low even
though elimination of excess reporting requirements could improve public
reaction to hazardous material transportation safety.
The DOT/MTB hearing regarding the use of Emergency Response Guidebooks and
Material Safety Data Sheets during transportation generated great interest
in both the carrier and shipper industries. All carriers and shippers who
testified at the May 2 hearing opposed reliance on MSDSs during
transportation. Comments are due by June 26, 1984.
--
TANK CAR COMPENSATION
The American Petroleum Institute (API) presented
their compromise solution on tank car compensation to the Joint Negotiating
Committee over CMA's objections. The API proposal reduces by perhaps $50
million, the compensation that car providers receive from the railroads.
The reduction in car compensation would be, primarily, a reduction in
compensation to CMA member companies. Our Car Compensation Subcommittee
met with representatives of API on May 2 3 , 1 9 8 4 , to attempt to resolve our
differences and improve our negotiating position,
OCEAN TRANSPORTATION
--
C& is working with the Ocean and International
Task Group to prepare comments on several rules proposed by the Federal
P!aritime Commission ( M C ) to implement the new shipping act. The subjects
CMA will address include service contracts , time/volume rates, independent
action, loyalty contracts, and processing of agreements.
On May 9, 1984, CMA filed comments with the FMC supporting its proposal to
prohibit Philippine flag vessels from entering U.S. ports. This is a means
of retaliation to the Philippine cargo reservation which has caused member
companies to shift 50-75% of their cargo from their preferred third flag
carriers and to endure administrative burdens and service delays.
--
EMERGENCY RESPONSE
Members of the CHEMTREC/Distributian staff visited
with the Canadian Chemical Producers' Association and the Transport Canada
officials t o learn more about the TEAP and CANUTEC operations. We also
discussed and obtained general agreement that extension of the CHEMTREC 800
service in Canada would be beneficial to both countries.
The Emergency Response Work Group is continuing its meeting with
associations representing emergency response organizations. The objective
of these meetings is to learn what kinds of training and technical
assistance can best be provided by the chemical industry to the first
responder at a hazardous material incident.
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ENERGY AND FEEDSTOCK ISSUES
--
NATURAL GAS POLICY
An Energy and Feedstock Issues Briefing was
held May 10 at CMA. Congressman Jack R. Fields (R-TX) discussed the
uncertain prospects for H.R. 4277 voted out of the House Committee on
Energy and Commerce. The CMA Energy Committee recommended urging the House
Rules Committee to oppose granting a rule on H.R. 4277. We believe it is
an unsatisfactory vehicle for Natural Gas Policy Act amendments.
Commissioner Oliver G. Richard, Federal Energy Regulatory Commission
(FERC), also discussed the priorities and efforts to enhance competition in
natural gas markets. He stressed the importance of addressing potential
regulatory impact on residential and commercial consumers.
CMA submitted written comments to the U.S. Department of Energy in response
to their public inquiry in connection with a report to Congress o,n the
Status of Natural Gas Markets. CMA restated advocacy for deregulation of
all wellhead ceiling prices by a date certain, removal of gas market
restrictions, and the need for more efficacious contract carriage programs
with equal access for all consumers to all categories of gas. CMA also
believes that there is minimal potential for a price fly-up in 1985 with
partial deregulation of natural gas under current law.
--
0
CMA joined an Ad
Hoc Task Force of the Business Advisory Council on Federal Reports to
oppose a new data collection proposal initiation by the Energy Information
Administration (EIA). Other Task Force members include: The Aluminum
Association of America, the American Iron and Steel Institute, the American
Paper Institute, the American Petroleum Institute, the American Textile
Manufacturers Institute, the Council of Industrial Boiler Owners, the
Industrial O i l Consumers Group, the Motor Vehicle Manufacturers
Association, the National Association of Manufacturers, the Society of the
Plastics Industry, and the Chamber of Commerce of the United States. Last
month CMA submitted comments to the EIA and Office of Management Budget.
0
100.4P STANDARD
On June 16, 1984, CMA will
participate in a meeting of the American Society of Heating, Refrigerating
and Air-conditioning Engineers (ASHRAE) to appeal implementation of their
100.4P proposed energy conservation standard for existing industrial
building. We believe the standard would be adopted by certain states and
other regulatory bodies as mandatory requirements for industry. Required
energy audits, engineering studies, and building conservation measures
could be costly. CMA will continue to urge that the ASHRAE 100.4P be
issued as a voluntary technical guide so that chemical industry management
will not have resources diverted arbitrarily from the most cost-effective
opportunities.
0
CXA MEMBERS EXCEED 1985 CONSERVATION TARGET
I
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NEGI ENERGY INFORMATION AGEXCY DATA COLLECTION EFFORTS
--
C?ZA APPEALS ASHRAE
--
The preliminary 1983 CMA
energy conservation survey results indicate that on average, chemical
industry energy productivity improved by 31% compared with 1972. This is
about seven percent higher than 1982 survey results, and it exceeds the
voluntary CMA target f o r 1985.
PLANT MANAGEMENT A N D DESIGN
t
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ELECTRICAL CODES AND STANDARDS
CXA voted to approve UL 783(Electria
Flashlights and Lanterns) as an American National Standard.
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CMA 074711
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REGULATIONS
Electrical Task Group Members assisted the PCB Program Panel
in preparing a CMA response to EPA's Advance Notice of Proposed Rulemaking
covering use of PCBs in electrical transformers.
A work group of the Electrical Task Group prepared additional CMA comments
on OSHA's proposed Electrical Standards for Construction.
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STANDARDS RELATED ACTIVITY
CMA's representative to the ANSI Electrical
and Electronics Standards Board approved a one-year extension of two
Instrument Society of America Standards as American National Standards.
CMA declined membership on the UL Intrinsically Safe Equipment for
Hazardous Locations Committee.
PROCESS COMPUTER FORUM
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Approximately 150 CMA member company
representatives attended the highly successful forum held May 7 4 in
Nashville.
CMA
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EXHIBIT G
REPORT OF THE DIRECTOR OF COMMUNICATIONS
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JON C. HOLTZMAN
With the active participation of CMA's officers and a number of board
members the Superfund communication program, initiated two months ago, has
moved into high gear. That effort will continue over the next several months
as we expand our network of contacts to include regional media.
The contacts produce discussions that are not limited to the Superfund
issue but bring in Clean Sites, Inc., general industry attitudes of cooperation
to solve problems. For the most part we are finding understanding of -- and
agreement with -- many of the points we raise.
A number of editors and reporters have expressed appreciation at our
willingness to talk and to answer questions. The payback for the effort is
beginning to come in more balanced reporting. But there is still a long way
to go.
NEW RESOURCES: Six members of member company staffs with special expertise
in Superfund issues have been recruited to either accompany board members or
directly handle contacts with regional news media. All have received special
training on the Superfund message. Assisting will be: David Baird, Exxon;
Gene Berman, Dupont; Tom Hellman, Allied; Lee Nute, Dow; Mike Pierle, Monsanto;
and Julie VanEgmond, Cyanamid.
SUPERFUND COMMUNICATION ACTIVITIES:
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Interviews have been conducted at the following publications: Business
Week magazine (Fernandez, Holmer); Wall Street Journal ( 2 interviews:
Fernandez and Fernandez, S e l l a ) ; New York Times (interview with
editorial writer; Fernandez); Washington Post (interviews with editorial
writer and reporter, Fernandez and Holmer); Congressional Quarterly
(Holmer); Los Angeles Herald Examiner (Street)
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Chemical Marketing Reporter; Chemical Week; Journal of Commerce;
Chemical & Engineering News; Hazardous Waste Report; Toxic Materials
News; Environment Reporter: Inside EPA: Industry Week: Industrial
Chemical News and CPI Purchasing.
Briefings are scheduled for the following publications:
New York Times, Chairman's Lunch, (Fernandez, Forney); Fortune
(Holmer, Sella)
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A number of publications and individual reporters have expressed
interest in scheduling interviews, including A . P . , U . P . I . , The
National Journal, Newsweek, L.A. Times, Boston Globe, Chicago
Sun-Times, Atlanta Journal, etc. Scheduling is continuing.
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Broadcast activities: Television news clips,
at 26 states, have been distributed to nearly
status of waste site cleanup in each state is
programs will be developed from the TV pieces
bution. 1
individually targeted
300 stations. The
reported. (Radio
for targeted distri-
In addition, 2 radio programs on Superfund issues have been distributed nationally to 2400 stations. A third program was developed
and distributed on hazardous waste generated and disposed of by
consumers.
WASTE HANDLING AND DISPOSAL: CMA has begun to "scout" company and EPA
National Priority List sites for shooting locations for the new waste site
cleanup film. The film will document progress on site cleanup and-will be
distributed to community groups, television and member companies.
The department is coordinating planning activities for a telenews conference
(scheduled for May 31) on establishment of Clean Sites Inc. and assisting in
coordination of media activities for the press conference on announcement of
CSI.
COMMERCIAL PRODUCTION OF CHEMICALS: Five programs were distributed
during the period on risks vs. benefits; the importance of using household
chemicals properly; and 3 programs on EDB.
TRANSPORTATION: The Department coordinated all communications activities
at the recently concluded Hazardous Material Spills Conference, including the
production and distribution (from Nashville, site of the Conference) on the
week-long event and transportation safety issues. Two radio programs also
were produced and distributed on these issues. In addition, the Department
coordinated communication response for a major transportation accident in
Marshville, N.C. in April. Among other things, the Department distributed,
by satellite, a video news release on CHEMTREC (which was used by at least
3 North Carolina stations). In addition, a TV newsfeature was produced and
distributed during the period on new cargo reservation laws and their effect
on U . S . exports and trade balance. .
A special training program for CHEMTREC media tour spokespersons was
conducted.
BENEFITS OF CHEMICALS: A special radio series, "Lifestyle," has just
issued its third series of consumer oriented programs on the importance of
chemicals, their benefits and their proper use and safety.
The series is produced inhouse at CMA and distributed to 1400 radio
stations. Feedback from station programing directors indicates 7 5 % usage
a phenominal participation. In addition to the stations the material also
goes to 400 home extension economists, many of whom write newsletters or
newspaper columns.
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CMA 074714
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Members wishing a sample of the program should write to Linda Edwards,
communications department. .'
REGIONAL COMMUNICATIONS PROGRAM:
The raw data has come in from the survey of the media made after the
Louisiana Chemical Association made its series of mini media tours in late
1983. The data compared attitudes surveyed about a year earlier. The
results are impressive.
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40 percent of the media found the relationship between the chemical
industry and the media was "excellent" or "good" in 1984, compared
to 2 3 percent in 1983.
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80 percent rated the industry "excellent" or "good" at pro;iding
useful background information in 1984, compared to 5 4 percent in 1983.
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77 percent rated the industry "excellent" or "good" at providing
comprehensive information in 1984, compared to 19 percent in 1983.
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71 percent rated the industry "excellent" or "good" at providing
accurate information in 1984, compared to 5 5 percent in 1983.
The media also rated the industry significantly higher in their perceptions of the industry as providing a safe work environment, being safe to live
near and controlling pollution.
A sobering fact:
the second survey, conducted a year later, found that
25 percent of the reporters and editors originally surveyed had moved on to
different assignments or jobs.
GENERAL COMMUNICATIONS: "Yellow Pages" section of the Issue Briefing
Book is in the hands of CMA executive contacts and key industry government
relations, communications, and management personnel. The Issue Book is updated
on a quarterly basis unless there is a rapidly changing issue which demands
more frequent revision. Distribution has grown' to 1200 and many members
reproduce and distribute the material internally;
The Communications Committee conducted a two day planning conference
May 2 and 3 to evaluate current programming and identify future courses of
action. Special attention was devoted to groundwater, chemophobia, balancing press reporting and issues which might follow hazardous waste management
as media focus of attention.
Videotape featuring three CMA issue-oriented films has been copied by
228 schools, becoming a permanent part of their library. Projection: more
than 500 duplications by July 31.
CMA
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CMA 074715
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