President’s Message: Chemical Industry Boasts Success in the 82nd Legislative Session

TCC President & CEO Hector L. Rivero

I am proud to report that the Texas chemical industry had very successful legislative sessions of the 82nd Texas Legislature.  Lawmakers wrapped up the regular session on Memorial Day – May 30th; and the special session – made necessary because of an 11th-hour filibuster of a key budget bill – concluded last week.

Most importantly, lawmakers balanced the state’s budget – the only legislation required to pass by the Texas constitution – without raising taxes.  Gov. Rick Perry, Lt. Gov. David Dewhurst and House Speaker Joe Straus (R-San Antonio) promised a balanced budget with no new taxes or increases, and they delivered.

The legislature had two big budget problems to solve this session: a $4 billion deficit in the current biennium’s budget and an estimated $15 billion revenue shortfall for the 2012-13 biennium.  After a regular session full of heated debates and contentious “fiscal matters” bills, lawmakers finally hammered out the final details, making cuts to education, health and human services, and other state programs, and using some “smoke and mirrors” accounting tricks to balance the budget.

Lawmakers voted to spend $3.2 billion from the state’s Rainy Day Fund so the state wouldn’t default on bills for the current budget, but used none of it to help close the shortfall for 2012-13.

TCEQ Sunset Passes
Prior to the legislative session, the Texas Commission on Environmental Quality (TCEQ), and several other state agencies, went through a sunset review.  This process, which usually occurs every 10 to 12 years, allows lawmakers to review state agencies and ensure that they are operating efficiently and meeting state’s needs.  Once the review was complete, the Sunset Advisory Commission issued a report that gave the Legislature guidance on potential changes discovered during the review.  TCC was very involved throughout the review process and provided input to the Sunset Commission in the development of its report to the Legislature.

HB 2694 by Rep. Wayne Smith (R-Baytown) – which was the TCEQ Sunset Bill – passed during the regular session and was signed by Gov. Perry.  In addition to continuing the agency for 12 years, the bill also contains key changes to compliance history and the contested case process, which our industry was instrumental in negotiating.

On compliance history, the bill caps the final penalty at 100% of the base penalty after using the compliance history components as penalty enhancements.  It also specifies that the use of Notices of Violation (NOV) in compliance history can only be used for one year from the issuance date of the NOV.

With respect to contested case hearings, the bill requires the TCEQ Executive Director to participate as a party in contested case hearings, prohibits state agencies from contesting permits issued by the TCEQ and makes necessary changes in the discovery process for contested case hearings.

Additionally, the bill makes changes to the Executive Director’s ability to temporarily suspend water rights in periods of drought or other emergency.  During this time of prolonged drought, this language was important to many of TCC’s members that have senior water rights.

The passage of this bill is not only a major success for our industry, but also shows that the agency has made tremendous strides over the last 10 years.  When TCEQ went through this process back in 2001, legislators felt the need to make drastic changes that imposed new requirements on industry and created more paperwork without any environmental benefit to the state.  While this session had its cantankerous moments, it was a much smoother process as a result of the agency’s performance improvements since 2001 and open cooperation with the Sunset Commission.    In the Sunset Commission’s Report to the Legislature, TCEQ received numerous commendations for its performance and efficiency and withstood little criticism of its programs and leadership.

Other major state agencies went through the sunset process, including the Texas Water Development Board (TWDB), the Public Utility Commission (PUC) and the Railroad Commission (RRC).  The TCEQ and TWDB were the only sunset bills to pass.  That means the PUC and RRC will all undergo the sunset review again.  The new Sunset Advisory Commission Chairman is Rep. Dennis Bonnen (R-Angleton).

Permit Protection
Another important bill to our industry that passed was SB 875, which protects Texas businesses from regulatory overreach by the Environmental Protection Agency (EPA).  Sponsored by Senator Troy Fraser (R-Horseshoe Bay) and Rep. Kelly Hancock (R-North Richland Hills), the new law prevents administrative, civil and criminal enforcement for nuisance or trespass claims for greenhouse gas emissions by a business that holds a permit and is in substantial compliance with its permit or is under enforcement discretion granted by the state or federal government.

There is a trend of claims around the country alleging that companies who are operating in compliance with their permit(s) may be subjected to new enforcement action for greenhouse gas emissions alleged to result in abnormal weather activity resulting in natural disasters.  This trend may result in misguided regulatory actions that could penalize Texas businesses for operating within their permit.  SB 875 will prevent state or local governments from using nuisance ordinances to regulate greenhouse gas emissions in their jurisdictions, and it ensures that Texas businesses legally operating under their permits are not subject to frivolous greenhouse gas enforcement.

Other Important Bills
SB 321, known as the “guns in parking lot” legislation, by Senator Glenn Hegar (R-Katy) and Rep. Tim Kleinschmidt (R-Lexington), passed.  The legislation includes an industry exemption that TCC negotiated with the bill sponsors and the National Rifle Association (NRA).  That language exempts chemical facilities and allows sites to restrict guns in their parking lots except for those employees with a “Texas Concealed Handgun License” (CHL) who must lock their handgun in their car, which must be parked outside a sites security gate.

Because of differences in the House and Senate versions, the bill went to conference committee where TCC was also able to successfully insert liability language, which further protects TCC member companies from liability associated with the passage of the new law.

Finally, the legislature passed an omnibus tort reform bill: HB 274 by Rep. Brandon Creighton (R-Conroe) and Senator Joan Huffman (R-Southside Place).  The bill includes the following civil justice reforms:

2011 TCC/ACIT EHS Seminar a Success; Sets Record Attendance

The 24th Annual TCC/ACIT Environmental, Health & Safety (EHS) Seminar was a huge success and attracted record attendance with over than 900 daily registrations.  Attendees included operators, engineers, and managers, who gained regulatory knowledge, learned from best practices, networked with industry peers, and heard from leading industry experts. 

“TCC and ACIT are proud of the growth and success of our EHS Seminar,” said TCC/ACIT President & CEO Hector L. Rivero.  “Our success is a credit to the industry’s commitment to safety education and training and the many industry volunteers who continue to put together a world class program.”

The event – held annually at Moody Gardens Hotel & Resort on Galveston Island – is a unique industry opportunity to share lessons learned and tools that work. The seminar is planned and coordinated by volunteers of TCC/ACIT member companies and led by experts in all aspects of the industry.  This year’s EHS Seminar featured three full days of Environmental presentations, four days of Safety presentations, three days of Process Safety Management presentations, a new track on Energy and Environment topics, and an all-day “Breakthrough to EHS Success” training session.

TCC/ACIT would like to thank the hard work and dedication of the EHS Committee who organized this seminar.  They put in countless volunteer hours to select the speakers, attract sponsors and vendors, publicize the event and help plan the overall seminar.  We also want to thank those member companies who have allowed their staff attend the committee meetings and devote their time on this committee.  The volunteers include:
 
EHS Seminar Chairperson:  Kristy Stewart, TRC Environmental Corp.
Co-Chairs:  Maria Gallegos, Texas Brine Company and Ray Supak, INEOS
Past Chair 2010:  Bob Brennecke, BASF
Committee:  Brian Akins, Veolia Environmental Services; Mike Bailey, Vapor Point; Thomas Brinsko, BIC Alliance; Paul Chavez, Bay Area Houston Economic Partnership; Phil Cuevas, Chevron Phillips Chemicl Co.; Pat Daigle, INEOS; Lee Ethridge, Castolon LLC; Kathey Ferland, Texas Industries of the Future; Carla Fiegener, ExxonMobil; Melinda Fowler, Ineos Oligomers; Jason Frederick, TOTAL PETROCHEMICALS; Hilary Gafford, Weston Solutions; Bob Gaither, Process Safety and Reliability Group; Alvin Garza, The InterGulf Corporation; Kim Gray, Webb, Murray & Associates; Larry Green, DuPont; Yvonne Haislar, ExxonMobil; Sherman Hampton, ExxonMobil; Lee Haring, The Lubrizol Corporation; Doreen Harvey, Nalco Company; Nancy Heard, LynondellBasell (Retired); Larry Hensley, INEOS (Retired); Mark Hernandez, U.S. Occupational Safety and Health Administration; Sharon Jackson, International Specialty Products; Kate Johnson, BIC Alliance; Becky Keasler, LyondellBasell; Buster Keasler, OxyChem; Sheryl Kuhfeldt, Webb, Murray & Associates; Laura LaValle, Beveridge & Diamond, PC; Dan Lehtola, Huntsman; Kim Lenz, LyondellBasell; Dennis Malloy, BP; Sam Mannan, Mary Kay O’Connor Process Safety Center; Ken Martin, DuPont; Steve Mason, U.S. Environmental Protection Agency Region 6; Maci Massengale, Sprint Safety; Brady McCollum, The Dow Chemical Company; Dan McManus, United Shutdown Safety; Jack McVauch, Environmental Technology & Management; Shannon Methvin, Hunter Buildings; Dewey Miles, The Dow Chemical Company; Alisha Nash, Hunter Buildings; Leslie Ray, INVISTA; Steve Reed, BASF; Shiraz Sheikh, The Lubrizol Corporation; Niti Shrivastava, Process Safety and Reliability Group; Sterling Simoneaux, BASF; Shaun Stickler, Sprint Safety; Deanna Strain, TOTAL PETROCHEMICALS; Malinda Tange, INEOS Olefins and Polymers; Jim Thompson, ABS Consulting; Bryan Trahan, MB Industries; Bob Weber, Process Safety and Reliability Group; and Cindy Wright, Industrial Safety Training Council.

We also want to thank our generous sponsors:
 
Silver Sponsors – The Lubrizol Corporation, Turner Industries Group
General Sponsors – 24Hr. Safety, ABS Consulting, AXYS Industrial Solutions, B & B Ice and Water, BakerRisk, BASF, Bayer MaterialScience, CAM Enviromental Services, Chevron Phillips, Craig & Heidt, DuPont, Eastman, Flare Ignitors, FLIR Systems, FMC, Formosa Plastics, GB Biosciences, GEM Mobile Treatment Services, Glove Guard, Houston Area Safety Council, INVISTA, ISP Technologies, Kaneka Texas, Merge9i, Nalco Company, OSHA Alliance, OxyChem, Praxair, Process Safety and Reliability Group, Puffer-Sweiven, Rain For Rent, Region VI VPP, RMT, Inc., RPS JDC, Specialty Maintenance Products, TASC, TOTAL PETROCHEMICALS, TPC Group, Tray-Tec, Tyndale Company, and Westex.

Finally, we thank our exhibitors, many of whom are repeat exhibitors and have been for many years.  We appreciate your continued support, because you bring valuable information and innovations to share with attendees, and your contributions help to keep registration fees affordable for attendees.

Planning for the 2012 (25th Anniversary) EHS Seminar will begin in August.  Please contact Darlyne Harlan at Harlan@txchemcouncil.org if you’d like to join the planning committee.  Mark your calendars: the EHS Seminar will again be held in Galveston, Texas at Moody Gardens Hotel & Resort from June 4 through 7, 2012.

Chemical Industry Recognizes Achievement at TCC/ACIT Awards Banquet

The 2011 TCC/ACIT Awards Banquet was held on June 7th at Moody Gardens Resort & Conference Center. TCC recognized member sites and individuals for outstanding performance in their communities and for safe operations during the previous year.
Award winner photos by category are available by clicking the links listed below. For various Award Banquet photos click here.

Caring for Texas Awards
TCC’s “Caring for Texas” award program promotes continuous improvement by the chemical industry relative to their performance in community awareness, emergency response, security and pollution prevention. The program was adopted by the TCC Board of Directors in 1998 and provides recognition for TCC member facilities that, during the previous calendar year, have achieved exemplary results and demonstrated a strong commitment to their employees and their community.

Group One (companies with 1 to 60 employees) category winners: Nalco Company – Freeport; and Rhodia, Inc. – Baytown.

Group Two (61 to 200 employees): Champion Technologies, Inc. – Odessa; Equistar Chemicals, LP, A LyondellBasell Company – Bayport; Ethyl Corporation – Pasadena; Honeywell – Orange; INVISTA – La Porte; PL Propylene LLC – Houston; and TOTAL PETROCHEMICALS USA, Inc. – Bayport HDPC Site.

Group Three (companies with 201 to 500 employees): Chevron Phillips Chemical Company LP – Borger Plant; Huntsman Advanced Technology Center – The Woodlands; LyondellBasell Industries – Bayport Choate; and Marathon Petroleum Company LP – Texas City.

Group Four (companies with 501 or more employees): Ascend Performance Materials – Alvin; Chevron Phillips Chemical Company LP – Pasadena; ExxonMobil Chemical Company – Baytown; Formosa Plastics Corporation – Point Comfort; INVISTA – Victoria; Shell Chemical – Deer Park; and Union Carbide Corporation, A Subsidiary of Dow Chemical Company – Seadrift.
All Caring for Texas Award Winner photos can be found by clicking here.

The following companies that stood out in the judges’ minds as excellent in their respective groups won the Excellence in Caring For Texas awards.

Group One Excellence in Caring for Texas Award winner: Akzo Nobel Surface Chemistry – Fort Worth; Honorable Mention: Huntsman Ethyleneamines, LLC – Freeport.

Group Two Excellence in Caring for Texas Award winner: Chevron Phillips Chemical Company, LP – Orange; Honorable Mention: DuPont Company – Corpus Christi Plant.

Group Three Excellence in Caring for Texas Award winner: Equistar Chemicals LP & LyondellBasell Acetyls, LC – La Porte; Honorable Mention: ExxonMobil Chemical Company – Baytown Olefins Plant.

Group Four Excellence in Caring for Texas Award… this year we had two winners:  The first award goes to award goes to Eastman Chemical Company, Texas Operations – Longview; and the second award goes to The Dow Chemical Company – Freeport.
All Excellence in Caring for Texas Award Winner photos can be found by clicking here.

To be considered for the Sustained Excellence Awards, a company must have won the Excellence in Caring for Texas award at least once within the last three years.  The list of winners is below:

Group One: no winners.

Group Two Sustained Excellence Award winner: Nalco Company – Sugar Land.

Group Three Sustained Excellence Award… this year we had two winners: the first award goes to Chevron Phillips Chemical Company, LP – Sweeny; the 2nd award goes to Chevron Phillips Chemical Company, LP – Port Arthur.

Group Four Sustained Excellence Award… we also had two winners: the first award goes to BASF Corporation – Freeport; the second award goes to Chevron Phillips Chemical Company, LP – Cedar Bayou Plant.
All Sustained Excellence in Caring for Texas Award Winner photos can be found by clicking here.

Safety Awards
The first award recognized facilities with a Zero Incident Rate, meaning they did not have an employee OSHA recordable injury or illness in 2010.  Winners include: Nalco Co. – Freeport; INEOS Oligomers – La Porte; Texas Brine Co. – Mont Belvieu; Texas Brine Co. – Beaumont; Underground Services Markham – Clemville; Underground Storage LLC – Pierce Junction; Akzo Nobel Chemicals, Battlegound – La Porte; Noltex – La Porte; Ethyl Corp. – Houston; and Huntsman Advanced Technology Center – The Woodlands.

The next safety award recognized facilities with a Zero Contractor Incident Rate at their facility in 2010: Nalco Co. – Freeport; Texas Brine Co. – Baytown; Texas Brine Co. – Mont Belvieu; Underground Services Markham – Clemville; Underground Storage LLC – Pierce Junction; Akzo Nobel Chemicals, Battlegound – La Porte; ExxonMobil Chemical Co. – Mont Belvieu Plastics; Noltex – La Porte; Ethyl Corp. – Houston; DuPont – La Porte; and Huntsman Advanced Technology Center – The Woodlands.

The Occupational Safety Distinguished Service Awards were presented to facilities that had at least 50% attendance at TCC Occupational Safety Committee’s meetings and have demonstrated improvement in their injury and illness incident rate for 2010, compared to the previous 3 years: INEOS Oligomers – La Porte; Nalco Co. – Freeport; Texas Brine Co. – Mont Belvieu; Texas Brine Co. – Beaumont; Underground Services Markham – Clemville; Underground Storage LLC – Pierce Junction; Akzo Nobel Chemicals, Battlegound – La Porte; Champion Technologies – Fresno; ExxonMobil Chemical Co. – Mont Belvieu Plastics; INEOS Nitriles – Green Lake; Noltex – La Porte; Chevron Phillips Chemical Co. – Sweeney; DuPont – La Porte; Huntsman Advanced Technology Center – The Woodlands; Ticona Polymers (a Celanese Co.) – Bishop; Ascend Performance Materials – Chocolate Bayou; Bayer MaterialScience – Baytown; ExxonMobil Chemical Co. – Baytown; Formosa Plastics Corp. – Point Comfort; INVISTA – Orange; INVISTA – Victoria; and Shell Chemical – Deer Park.
All Safety Award Winner photos can be found by clicking here.

Best in Texas Awards
Finally, the “Best in Texas” Awards were presented to the top facilities that met the criteria for Distinguished Service and maintain a contractor safety program under TCC’s recommended guidelines.

The Group One (companies with 1 to 60 employees) winner was Underground Services Markham, in Clemville.

For Group Two (companies with 61 to 200 employees) our Best in Texas winner was ExxonMobil Chemical Co.’s Mont Belvieu Plastics Plant.

In Group Three (companies with 201 to 500 employees), DuPont’s La Porte Plant won Best in Texas.

Group Four’s (companies with 501 or more employees) winner was ExxonMobil Chemical Co. in Baytown.
The Best in Texas Award Winner photos can be found by clicking here.

l-Bobby Laughlin, r-Ed McKinley

Industry peers who serve on the TCC Occupational Safety Committee recognized two individuals for outstanding safety leadership. The Gerald Ehrman Award for Leadership in Safety Management is given to a plant manager who has demonstrated outstanding leadership in safety management. The award is named after longtime TCC and ACIT member, Jerry Ehrman, who worked for DuPont and retired in 2007.  This year the Committee gave the Ehrman Award to Ed McKinley of Celanese.

l-David Womack, r-Bobby Laughlin

Region 1 (Houston and the Ship Channel) Member of the Year: Kristy Stewart of RMT, Inc. in Houston.

Region 2 (Mid Coast Region) Member of the Year: Jim Heath of TIC Energy & Chemical, Inc. in Freeport.

Region 3 (Golden Triangle Region) Member of the Year: Robin Brown of Industrial Surfacing Corporation in Beaumont.

Region 4 (South Texas) Member of the Year: Pete Anderson of Ray West Warehouses, Inc. in Corpus Christi.
The ACIT Member of the Year Award Winner photos can be found by clicking here.

EPA Delays Final Boiler MACT Regulation Until April 2012

The Environmental Protection Agency has announced it would delay issuing final regulations aimed at cutting pollution from factory boilers until April 2012, amid pressure from industry groups and lawmakers.

The EPA decision came just days after a top EPA official publicly touted the health and economic benefits of a separate but similar rule to control mercury emissions from aging coal-fired power plants.

The EPA faces increasing pressure from Congress and business groups to slow down a broad regulatory agenda, including proposals to curb carbon dioxide emissions using the Clean Air Act and several rules aimed at clamping down on emissions from coal-burning power plants.

Rep. Fred Upton (R-Mich)

The boiler rules were the target of a House bill introduced by four Republicans and four Democrats Wednesday that would give the agency 15 months to finalize the boiler rules and allow factories at least five years to comply.

Rep. Fred Upton (R., Mich.), who chairs the House Energy and Commerce Committee, said the EPA was still operating on too short a schedule to issue the boiler rules, given its plan to propose standards by the end of October.

“The limited time frame EPA has announced will prevent the agency from revising the rules in their entirety and addressing all the difficult technical issues that have been raised,” Upton said.
 
EPA Administrator Lisa Jackson has said stronger controls on emissions of toxic substances such as mercury from boilers would yield a significant improvement to public health.

Opposition to the boiler rules, which would affect chemical facilities, paper mills, refineries, and other facilities, has been vigorous. The regulations face headwinds from an array of industry groups, from the U.S. Chamber of Commerce to representatives of cement makers and biofuel refineries, many of which have lobbied for a delay.

A federal court has ordered the EPA to implement the boiler standards, but the agency has said it needed more time for public input. This latest delay would push the deadline for compliance to 2015 from 2014.

“This is the best approach to put in place technically and legally sound standards that will bring significant health benefits to the American public,” the agency said on June 24th.

The EPA’s delay has frustrated environmental and public-health groups, which cite evidence that the rules would save lives and avert thousands of heart and asthma attacks.  Industry, on the other hand, has said that the rules would be extremely costly and difficult to implement.

Boilers are on-site generators that can provide energy for apartment buildings and shopping malls, as well as refineries and factories.  The EPA rules also would affect incinerators at industrial facilities. Small boilers located at universities, hotels, hospitals and commercial buildings might have to comply, though the EPA wants to limit the impact on smaller emitters.

U.S. Senate Committee Votes to Extend CFATS: Chemical Facility Anti-Terrorism Standards

Legislation that would extend the Chemical Facility Anti-Terrorism Standards (CFATS) program for three years was approved last week by the U.S. Senate Committee on Homeland Security and Governmental Affairs.

CFATS establishes security standards for high-risk chemical facilities that cover a wide range of vulnerabilities including perimeter security, access control, theft, internal sabotage, and cyber security.

The bill, which mirrors a bill unanimously approved by the committee last year includes:

• A three-year extension of the current CFATS program; the development of voluntary exercise and training programs to improve collaboration with the private sector and state and local communities under the CFATS program;
• The creation of a voluntary technical assistance program under the existing CFATS structure that would allow DHS, at the request of the owners/operators of covered chemical facilities, to provide recommendations or assistance to covered facilities to aid in compliance with the CFATS program or to reduce the risk of consequences of a terrorist attack on the covered facility;
• And, the creation of a chemical facility best practices clearinghouse and private sector advisory board at DHS to aid in the implementation of CFATs and the voluntary technical assistance program.

Sen. Susan Collins  (R-Maine)

“Simply put, the program works and should be extended and I am pleased the committee agreed,” Sen. Susan Collins (R-Maine) said in the statement. 

“Chemical facilities are tempting targets for terrorists. The Department of Homeland Security has done a good job developing a comprehensive chemical security program. It has yielded a successful collaborative, risk-based security framework – providing a model for other security-related programs,” said Sen. Collins

The measure, S. 473, was introduced with bipartisan support by Sen. Collins, along with Senators Mark Pryor (D-Ark.), Rob Portman (R-Ohio), and Mary Landrieu (D-La.).

American Chemistry Council (ACC) President and CEO Cal Dooley said the Senate committee vote follows the previous week’s strong bi-partisan 26-5 vote in the House Homeland Security Committee to approve H.R. 901, which would extend CFATS for seven years.
“These recent votes show that the bi-partisan groundwork we laid during the last Congress and earlier this year is paying off,” said Dooley.

Natural Gas Driller Downplays Texas Hydrofracking Law

While natural gas drillers may be disclosing more information about chemicals used in the hydrofracking process, one oil and gas company leader says it’s not exactly a win for environmentalists and others who oppose drilling.

Texas Gov. Rick Perry recently signed a bill into law that requires companies to make public the chemicals used on every hydrofracking job in that state.

Thomas O’Neill Jr., chairman of Fort-Worth-based Union Drilling Inc., called the new Texas law a “non-event.”

O’Neill, whose company has drilled more than 2,000 wells worldwide, said hydraulic fracturing (often referred to as “hydrofracking,”) has been done for more than 50 years.  He said the hydrofracking process is more transparent than ever.

“Everyone (in the industry) is happy to disclose [the information] because they’re happy to take the argument (against hydrofracking) off the table,” he said, adding those who oppose the process usually lack any scientific background to make a case against the process.

Dow CEO Liveris to Co-Chair Obama’s Advanced Manufacturing Partnership

Andrew Liveris

Dow Chemical Co. Chairman and CEO Andrew Liveris will co-chair President Barack Obama’s newly formed Advanced Manufacturing Partnership.  Liveris will lead the initiative with Massachusetts Institute of Technology President Susan Hockfield.

Liveris has served as Dow’s CEO since 2004 and has worked for the company for 35 years. He has been a strong advocate of a national manufacturing policy.  In January he published a book called “Make it in America: The Case for Re-Inventing the Economy.”

Among the topics Liveris discussed in his book was the need for policies that foster new infrastructure, research and development, education and regulatory reform.  He has also voiced his support for free-trade agreements and the positive impact it has had on manufacturing.

“America enjoys a trade surplus with countries with whom we share free-trade agreements,” said Liveris in his book. “When other countries lower their tariffs, it makes our exports more competitive and gives us access to new markets. That boosts demand for our products, increases our jobs and boosts our economic growth.”

Liveris called on Congress to ratify free-trade agreements with Columbia, Panama and South Korea.

Liveris’ appointment to Obama’s council shows the president recognizes the chemical industry as a critical part of the U.S. economy, American Chemistry Council (ACC) President and CEO Cal Dooley said.

“We are pleased that President Obama has recognized the essential role that chemical manufacturers will play in fulfilling his vision by naming Andrew Liveris chairman,” said Dooley. “In particular, we are encouraged by the president’s focus on industrial energy efficiency and the effort to move advanced materials to market more quickly – a goal that will only be possible if we have an updated, sound and efficient federal chemical regulatory system in place.”

Texas Manufacturing Activity Slows in June; But Orders are Up

While Texas manufacturing growth slowed in June, but the monthly data from the Dallas Federal Reserve Bank had a silver lining: New orders improved.

“The new orders indicator is a bright spot in the survey, as it suggests a pickup in demand,” said Dallas Fed assistant economist Emily Kerr. “Although firms continue to report stronger manufacturing activity and company outlooks improved in June, respondents’ perceptions of general business conditions worsened.” She said, “the general business activity index, which often reflects broad or even national economic trends, pushed further into negative territory in June.”

The Fed reported that its Texas manufacturing output index dropped to 5.6 from 12.7 in May. Kerr said that’s not surprising after companies took in fewer orders last month.

The survey shows that manufacturing leaders expect things to improve. The company outlook index rose to 7.2 from 3.2 the prior month. And the new orders index increased to 6.4 from 1.1.

Around 82 percent of respondents said new orders improved or remained the same in June.
Texas fared better than other regions. Both the Philadelphia and New York Federal Reserve banks reported that manufacturing activity worsened in June, with key indexes dropping to negative territory.

The Dallas data was collected June 14-22, and 84 Texas manufacturers responded to the survey.
Firms are asked whether output, employment, orders, prices and other indicators increased, decreased or remained unchanged over the previous month.

According to recent economic reports, both existing home sales and new home sales fell last month, suggesting a housing sector continuing to struggle and bouncing along the bottom.

Overseas, world trade volumes slipped for the first time since September 2010, suggesting the global economic expansion may be slowing. Furthermore, year-earlier comparisons of industrial production continue to moderate in a number of nations and at the global headline level, production has slipped in recent months.

As the recovery enters its third year, the pace of improvement has slowed in the United States (and elsewhere). Business investment and exports have led the recovery thus far; however, recent indicators suggest that the robust manufacturing recovery has lost its momentum.

Turning to chemistry, with the exception of latex, all of the product reports released this week indicated positive year-over-year growth.  The railcar loadings also point to continued year-over-year growth.

DuPont Chairwoman and CEO Ellen Kullman said that remaining competitive in manufacturing is important for the U.S., which is “not going to be the low-cost producer, but we do need to be a producer.” DuPont is doing its part through spending on basic research initiatives, Kullman added.

Medical Experts Debunk Messages on Risks of Exposures

You’re sitting in a freshly drywalled house, drinking coffee from a plastic foam cup and talking on a cellphone. Which of these is most likely to be a cancer risk?  It might be the sitting, especially if you do that a lot.

Despite all the recent news about possible cancer risks from cellphones, coffee, styrene, and formaldehyde in building materials, most of us probably face little if any danger from these things with ordinary use, according to health experts. Inactivity and obesity pose a greater cancer risk than chemicals for some people.

“We are being bombarded” with messages about the dangers posed by common things in our lives, yet most exposures “are not at a level that are going to cause cancer,” said Dr. Len Lichtenfeld, the American Cancer Society’s deputy chief medical officer.

Linda Birnbaum agrees. She is a toxicologist who heads the government agency that just declared styrene, an ingredient in fiberglass boats and Styrofoam, a likely cancer risk.

“Let me put your mind at ease right away about Styrofoam,” she said. Levels of styrene that leach from food containers “are hundreds if not thousands of times lower than have occurred in the occupational setting,” where the chemical in vapor form poses a possible risk to workers. “In finished products, certainly styrene is not an issue,” and exposure to it from riding in a boat “is infinitesimal,” she said.

Carcinogens are things that can cause cancer, but that label doesn’t mean that they will or that they pose a risk to anyone exposed to them in any amount at any time.

They have been in the news because two groups that periodically convene scientists to decide whether something is a carcinogen issued new reports.

In May, the International Agency for Research on Cancer, part of the World Health Organization, said there is a possibility cellphones raise the risk of brain tumors.

“The operative word is ‘possibility,’” said Lichtenfeld, who among others has pointed out the thin evidence for this and the fact that cancer rates have not risen since cellphones came out.

In June, the National Toxicology Program, part of the National Institute of Environmental Health Sciences — both of which Birnbaum heads — issued its report.

It adds to the list of known carcinogens formaldehyde, which is in building materials and some hair-straightening products, though Birnbaum said on-the-job exposure is the main concern. The list also adds a plant substance in some “natural” arthritis remedies, aristolochic acid. Six other things were dubbed “reasonably anticipated” to be carcinogens, including styrene and another herbal medicine ingredient, riddelliine (rih-DELL-een).

Since 1971, the international cancer agency has evaluated more than 900 substances. Just over 100 have been deemed carcinogens, 59 are called probable carcinogens, and 266 others are possible ones.

In this last category of possibles — besides the electromagnetic energy from cellphones — are coffee, engine exhaust and talc-based body powder. Talc in its natural form may contain asbestos, though products sold for home use since the 1970s have been asbestos-free. Again, most risk is thought to involve occupational or unusual exposure to natural talc.

The evidence on coffee has gone back and forth for years, with no clear sign of danger and some suggestions of benefit.

However, known carcinogens include alcoholic beverages, estrogen treatments for menopause symptoms, birth control pills, certain viruses and parasites, and even some drugs used to treat cancer, such as cyclophosphamide and tamoxifen.

“Most people would probably be shocked to see the number of things they interact with every day” on these lists, Lichtenfeld said.
Here’s the problem: The agencies that pass judgment on a carcinogen don’t regulate it or determine what levels or routes of exposure are a concern and for whom.

“People immediately assume it’s going to cause cancer at any exposure level, and that’s simply not true,” said A. Wallace Hayes, editor of the scientific journal Food and Chemical Toxicology, and an industry consultant.

The rule is “RITE” – Risk Is equal to Toxicity times Exposure – and “they’ve left out half of the equation” by not saying how much exposure is a concern, Hayes said.

“The organizations that list these substances as possibly carcinogenic have to be conservative. That means if there’s any reasonable evidence, way before it’s a sure thing, they have to say, ‘Let’s be cautious.’ That’s their job – to raise the flag,” said David Ropeik, a consultant and author of “How Risky Is It Really? Why Our Fears Don’t Always Match the Facts.”

It’s human nature to fear risks we didn’t choose more than those we did, such as lack of exercise, poor diets or smoking, he said.

“A risk that is imposed on us scares us more than a risk we take voluntarily,” especially if it comes from companies we don’t trust, Ropeik said.

Styrene is an example: The government says it is a component of tobacco smoke and that is the biggest way most people are exposed to it. Smoking, of course, is the most easily preventable cancer risk.

To minimize risk, people can take reasonable measures to avoid exposure to possibly harmful things, experts say.

“If you walk into a room and you can smell formaldehyde, you probably want to vent the room before you spend a lot of time in it. That’s just common sense,” Birnbaum said.

If you’re concerned about pesticides, you can peel fruit and vegetables or choose organics, though there is some evidence that organic products may be less safe in terms of germs like E. coli and salmonella.

People worried about cellphones can hold them farther from the head, text-message instead of talk, or use a headset or earpiece as Lichtenfeld does. He was returning from a major cancer conference in Chicago last week when a fellow traveler pointed at Lichtenfeld’s Bluetooth earpiece and said, “Do you know that thing can cause cancer?”

“I said, ‘Yes, ma’am, I’m very familiar with the data and I choose to use Bluetooth,’” said Lichtenfeld, who didn’t tell her he was one of the biggest cancer experts she’d ever meet.

“You can’t live life in fear,” he said. “You have to live life.”

SMRP’s MaRS Conference – August 18th & 19th at Moody Gardens

Join us for the Houston Chapter of the Society for Maintenance and Reliability Professionals (SMRP)’s 5th Annual Maintenance and Reliability Symposium (MaRS) at Moody Gardens Resort and Conference Center on Galveston Island.

The MaRS event – on August 18th and 19th – is supported by Texas Chemical Council (TCC) and Associated Chemical Industry of Texas (ACIT) for its training value and networking opportunities for the industry’s newest generation of maintenance and reliability engineers.

Proceeds from MaRS are used to provide scholarships for engineering students and technicians enrolled in degree plans/programs in related fields of study.  MaRS supports current and future industry needs for skilled personnel and enhances the productivity of the refining and chemical industry in the United States.

Attendance at MaRS is open to all interested parties… attendees do NOT have to be a member of SMRP.  Registration for the conference is affordable too: $200 per person before August 1, and $250 thereafter. MaRS is geared toward maintenance and/or reliability engineers/technicians with 0 to 10 years experience and managers new in their roles as leaders of the maintenance/reliability effort.

The technical program offers timely presentations that address topics under one of the Five Pillars of the Maintenance and Reliability Body of Knowledge: Business and Management; Process Reliability; Equipment Reliability; Work Management and Organization and Leadership.  Attendees create their own course of study by selecting 5 sessions from 25 presentations to choose from.

The latest in technology and industrial services is on display in the trade show that runs concurrently with the presentation schedule. 

The event features three panels with industry professionals, plant managers, and maintenance managers covering topics of current interest, including: 1) Current Trends in Maintenance and Reliability; 2) My Plant’s Plan to Improve Reliability; and 3) Smart Tools.

ACIT South Texas Region Hosts Golf Tournament

On June 24th, ACIT’s South Texas Region hosted 144 players for its golf tournament held at River Hills Golf Country Club in Corpus Christi. The first place winners were Gary Byrd of Repcon, Gary Box of Repcon, Rodney Dillon of Flint Hills Resources, and Bubba Clark of Flint Hills Resources.  Sam Bliven of Team Industrial Services won closest to pin contest.
Photos from the ACIT South Texas Golf Tournament can be found by clicking here.

Thanks to all the the volunteers, and to our generous sponsors:

Upcoming TCC & ACIT Events

August 18-19th - SMRP MaRS Conference. For more information, click here.

September 7th – ACIT South Texas Reverse Trade Show. Details to follow.

October 5th – ACIT Mid Coast Breakfast Meeting. Details to follow.

October 13th – TCC/ACIT Annual Meeting Luncheon at the Hilton Houston Hobby Airport Hotel. Details to follow.

October 21st – ACIT Mid Coast Golf Tournament. Details to follow.

October 27th – ACIT Houston Ship Channel Fall Golf Tournament. Details to follow.

Upcoming Member Events

For a listing of TCC & ACIT Member promotions and events, please click http://www.acit.org/categories/Events/Upcoming-Member-Events/.
(These events are not organized or endorsed by TCC or ACIT.)