Mr. Chairman, I appreciate this opportunity to address this legislation, and I want to thank Ranking Member King for rubbing it in on the Phillies. I know you're very pleased about the Yankees, but at least the Phillies beat the Mets.…
Mr. Chairman, I appreciate this opportunity to address this legislation, and I want to thank Ranking Member King for rubbing it in on the Phillies. I know you're very pleased about the Yankees, but at least the Phillies beat the Mets. That's all I have to say today about that. So with that, congratulations to the Yankees.
Again, this is a very important piece of legislation, as we all know. I have very serious concerns about it for a number of reasons, but it should be remembered that in 2006, we, Congress, enacted a law that gave the Department of Homeland Security the authority to regulate chemical facilities.
You're hearing a lot of talk today about inherently safer technologies, and I would like to get into that in just a moment and what it means. I should also point out as well that the State of New Jersey does require IST assessments, but not implementation of IST, which is quite different. We are going much further than the State of New Jersey in this legislation.
It's important to point out, too, that I certainly support the Department's efforts to secure chemical facilities, but unfortunately, I think this legislation is riddled with costly provisions that go beyond the underlying security purpose of the bill.
Currently, there are vulnerability assessments that the Department must do under the current regulations. There are about 6,000 vulnerability assessments that must be done. So far, 2,000 have been completed, leaving about 4,000 vulnerability assessments that remain. Adding these IST assessments will be enormously costly.
I should also point out that the Department of Homeland Security has no one on staff who is an expert in these inherently safer technologies, so I wanted to point that out for the record.
We've had a lot of testimony, too, and I want to say something about inherently safer technologies. Testimony was referenced. There was a statement from a Scott Berger, who is a director for the Center for Chemical Process Safety. Mr. Berger is an expert in inherently safer technology and inherently safer design. And as the organization that developed the most widely used reference addressing inherently safer design, inherently safer processes, and lifecycle approach, they are the leaders. That was in his testimony. And he said, What is inherently safer design, from his testimony back in June of 2006. He said, Inherently safer design is a concept related to the design and operation of chemical plants, and the philosophy is generally applicable to any technology. Inherently safer design is not a specific technology or set of tools and activities at this point in its development. It continues to evolve, and specific tools and techniques for application of inherently safer design are in the early stages of development. And he goes on.
But essentially what he's saying is inherently safer technology is a conceptual framework. It's not a technology; it's an engineering process. Unfortunately, it seems that too many in Congress are trying to act as chief engineers. We are essentially trying to tell people how to produce certain types of chemicals and what chemicals to use.
These are very technical issues. It will be very costly to implement. It will affect jobs in this country, and with unemployment rates approaching 10 percent nationally, I am very concerned about the impact on this.
I happen to represent a district, the 15th District of Pennsylvania. I have a company called Air Products and Chemicals. About 4,000 people work there. They spend their time designing and building chemical plants in this country and throughout the world. They know a bit about this. And I am extremely concerned that those types of jobs will be put at risk because these chemical plants will be built, but they will not be built here. They will be built elsewhere to produce the chemicals that we need every day in our lives. So that is something that I just feel we have to talk about.
I will yield briefly.
No
I am suggesting that we, as a country, maintain the regulations.
Reclaiming my time, the ones that are currently in place. The regulations that we just extended for 1 year.
About a month ago, when we passed the Homeland Security Appropriations Act, we extended the current regulations for 1 year. I think we should extend them for another 2 years. Let those regulations take effect. Let's implement them. We have agreement. There was a great deal of opposition to this legislation by farmers, manufacturers and others who are going to be saddled with these costs. I have to point this out:
Inherently safer technology deals with workplace safety issues and how you develop the product or the process. It doesn't deal with securing the plant--you know, hiring more guards or building fortifications to secure a plant. That deals with safety as opposed to security. I want to make that distinction because we all agree--you and I agree--that we need to make sure that these plants are secure, but inherently safer technology is really not about plant security, and I think we have to be clear about that.
I reserve the balance of my time.
Mr. Chairman, may I inquire as to how much time I have remaining.
Mr. Chairman, I yield 2\1/2\ minutes to the ranking member of the Committee on Agriculture, the distinguished gentleman from Oklahoma (Mr. Lucas).
(Mr. LUCAS asked and was given permission to revise and extend his remarks.)
I yield the gentleman an additional 30 seconds.
Mr. Chairman, in conclusion to this discussion, I must restate my reasons for opposition to this bill.
There is not one person in the Department of Homeland Security who has any expertise in inherently safer technology. They are not prepared to deal with this mandate. I am concerned that much of this bill is, in fact, not focusing on security at all but is, rather, focusing on Federal mandates that may force our small businesses and farms to shed American jobs, further harming our vulnerable economy.
I have a letter here from 27 different organizations, including the Chamber of Commerce, the Farm Bureau and the Fertilizer Institute, which oppose the underlying legislation. They said: ``We continue to oppose the bill due to the detrimental impact it will have on national security and economic stability.''
A lot has been said about chemical facilities, but this bill is not so much about chemical facilities as it is about facilities with chemicals, and those facilities include hospitals, colleges and universities, and 3,630 employers with fewer than 50 employees. These are the people who are going to be impacted, and jobs will be lost. With unemployment approaching 10 percent, I don't think now is the time to impose this kind of a mandate, which will not have any real security benefit to the American people.
So, with that, I would like to submit this letter for the Record from the various organizations in opposition to this legislation. Let's let the current regulations be implemented. Let's extend them for that 1 year and beyond.
November 3, 2009.
Hon. Nancy Pelosi,
Speaker, House of Representatives,
Washington, DC.
Hon. John Boehner,
Republican Leader, House of Representatives,
Washington, DC.
Dear Speaker Pelosi and Republican Leader Boehner: We write
to you today to express our opposition to H.R. 2868, the
``Chemical Facility Anti-Terrorism Act of 2009'' (CFATS).
Despite the changes made to this legislation in the Energy
and Commerce and Homeland Security Committees, we continue to
oppose the bill due to the detrimental impact it will have on
national security and economic stability.
Specifically, we strongly object to the Inherently Safer
Technology (IST) provisions of this legislation that would
allow the Department of Homeland Security (DHS) to mandate
that businesses employ specific product substitutions and
processes. These provisions would be significantly
detrimental to the progress of existing chemical facility
security regulations (the ``CFATS'' program) and should not
be included in this legislation. DHS should not be making
engineering or business decisions for chemical facilities
around the country when it should be focused instead on
making our country more secure and protecting it from
terrorist threats. Decisions on chemical substitutions or
changes in processes should be made by qualified
professionals whose job it is to ensure safety at our
facilities.
Furthermore, forced chemical substitutions could simply
transfer risk to other points along the supply chain, failing
to reduce risk at all. Because chemical facilities are
custom-designed and constructed, such mandates would also
impose significant financial hardship on facilities
struggling during the current economic recession. Some of
these forced changes are estimated to cost hundreds of
millions of dollars per facility. Ultimately, many facilities
would not be able to bear this expense.
Thank you for taking our concerns into account as the
Committee continues to consider the ``Chemical Facility Anti-
Terrorism Act of 2009.'' We stand ready to work with the
Committee and Congress towards the implementation of a
responsible chemical facility security program.
Sincerely,
Agricultural Retailers Association;
American Farm Bureau Federation;
American Forest & Paper Association;
American Petroleum Institute;
American Trucking Associations;
Chemical Producers and Distributors Association;
Consumer Specialty Products Association;
The Fertilizer Institute;
Institute of Makers of Explosives;
International Association of Refrigerated Warehouses;
International Liquid Terminals Association;
International Warehouse Logistics Association;
National Agricultural Aviation Association;
National Association of Chemical Distributors;
National Association of Manufacturers;
National Grange of the Order of Patrons of Husbandry;
National Mining Association;
National Oilseed Processors Association;
National Pest Management Association;
National Petrochemical and Refiners Association;
National Propane Gas Association;
North American Millers' Association;
Petroleum Equipment Suppliers Association;
U.S. Chamber of Commerce.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I rise in opposition to this legislation. Our side of the aisle is going to focus on the impact on jobs. This legislation is devastating to jobs in this country, and we will get into that in just a moment.
Mr. Chairman, I yield 4 minutes to the gentleman from Houston, Texas (Mr. Culberson).
I yield the gentleman an additional 20 seconds.
Mr. Chairman, I would like to yield 4 minutes to the distinguished gentleman from New Orleans, Mr. Scalise.
Mr. Chairman, I yield 3 minutes to the distinguished gentleman from Kansas (Mr. Moran).
Mr. Chairman, first, there has been considerable debate here today whether farmers and small agricultural retailers currently exempt from existing regulations will be exempt from the new regulations required by this legislation.
The short answer is: They will not. Section 2120 of this bill requires the Secretary to issue new regulations to replace the existing CFATS regulations. Nowhere in this bill does the Secretary have any authority to exempt certain individuals or classes from those regulations. Nowhere.
If the majority disagrees and would care to point to a particular provision that authorizes the Secretary to grant exemptions from the provisions, including the costly IST assessment and
implementation provisions, I would ask that they point to that provision.
At this time, I would like to yield 2 minutes to the gentleman from Illinois (Mr. Shimkus).
(Mr. SHIMKUS asked and was given permission to revise and extend his remarks.)
I yield the gentleman an additional 30 seconds.
Mr. Chairman, I think you just heard some very powerful arguments in opposition to this legislation. This issue is all about jobs. I want to say one thing. It is a darn good thing that the House of Representatives just a couple of hours ago passed an extension of unemployment benefits. Because of this legislation, people are going to need them. That said, people around this country are very scared of Washington right now. They are scared of the agenda, and they are scared of the national energy tax called cap-and-trade. They are afraid of the card check bill and the health care bill that will cost more than a trillion dollars. So is it any wonder that unemployment rates are going the way they are going.
But one thing about these IST assessments, and I feel we have to talk about this from a jobs standpoint, but contesting these IST assessments will be costly, too costly for most small businesses to afford.
Experts estimate that a simple, one ingredient substitution would take two persons 2 weeks to complete and cost between $10,000 and $40,000, and that is on the low end. A pharmaceutical pilot plant with about 12 products would take three to six persons up to 10 weeks to complete an assessment at a cost of $100,000 to $500,000.
Larger facilities with particularly hazardous chemicals, already regulated by OSHA, would require 8 to 10 people 6 months or more to complete at a cost of over a million dollars for the assessment. Fifty- nine percent of the facilities regulated under the current CFATS regulations that would be required to conduct these costly assessments employ 50 or fewer people. Mandating IST will be devastating to small businesses across America.
According to a California fertilizer manufacturer, eliminating the use of anhydrous ammonia and substituting it with urea can cost a 1,000 acre farm up to $15,000 per application. This would be a recurring cost passed on to the consumer.
On Friday, the Department of Labor is expected to revise the unemployment figures. Does anyone in this Chamber expect those numbers to go down? We hope they do, but I am afraid we know what the answer may be.