NATIONAL ASSOCIATION OF CHEMICAL DISTRIBUTORS for NATIONAL ASSOCIATION OF CHEMICAL DISTRIBUTORS

Environment/Superfund ENV

Superfund Excise Tax Full or Partial Repeal - Infrastructure Investment and Jobs Act reinstatement of the Superfund excise tax led to NACD advocating for full or partial repeal of the Superfund excise tax. Additionally, NACD advocated for Congress to put pressure on the Internal Revenue Service (IRS) and Department of Treasury to issue additional guidance on the excise tax due to unclear initial guidance that left taxpayers guessing as to what should be taxed. The Superfund Tax on chemicals was sold as a fee on chemicals, but it is really a new tax on consumers. The 42 chemicals identified for taxation are the building blocks for a limitless number of goods, including steel, plastics, wood products, copper, cement, glass, pesticides, fungicides, pharmaceuticals, rubber, paint and coatings, batteries, solar panels, soap and detergents, ceramics, textiles, semiconductors, water treatment, light bulbs, refrigerants, dental fillings, fireworks and consumer electronics. The Superfund Tax on chemicals will also impede the goals of the Bipartisan Infrastructure Framework by making the components of infrastructure more expensive-including clean energy building blocks such as renewable energy, advanced coatings, energy efficiency solutions and electric vehicle (EV) infrastructure. The Superfund Tax on chemicals will also make U.S. manufacturers less competitive. NACD advocated for full repeal of the Superfund Tax in 2022, as well as partial repeal/exclusion of certain specific chemicals not manufactured in the US. While we awaited more information from the IRS, Congress passed the Inflation Reduction Act of 2022, which reinstated the Hazardous Substance Superfund Financing Tax Rate on Crude Oil and Petroleum Products. The tax will go into effect on January 1, 2023, and will be applied upon importation of the petroleum products. This additional component of the Superfund Tax will have an impact on NACD members, in addition to the initial resurrection of Part 1 of the Superfund Tax. NACD engaged in congressional advocacy to eliminate or limit the scope of the Superfund tax, including working with representatives and senators to send letters to Treasury/IRS, and educating offices on key committees about our compliance challenges. NAC advocated for and secured two letters to Treasury Secretary Janet Yellen from Rep. John Moolenaar (R-MI) and Sen. Shelley Moore Capito (R-WV) requesting detailed guidance for the Superfund Tax, along with penalty relief until improved clarity is achieved. NACD advocated against legislation that would impose blanket bans of Per- and polyfluoroalkyl substances (PFAS) class of chemicals. NACD advocated in support of S. 576, the Railway Safety Act of 2023, introduced by Sens. Sherrod Brown (D-OH), J.D. Vance (R-OH), Bob Casey (D-PA), and John Fetterman (D-PA), Marco Rubio (R-FL), and Josh Hawley (R-MO) on March 1, 2023, following the train derailment in East Palestine, OH. NACD also supported and advocated in favor of the House of Representatives companion bill, H.R. 1674, introduced by Reps. Chris Deluzio (D-PA) and Nick LaLota (R-NY) on March 21, 2023. This bill addresses safety requirements for rail carriers and trains transporting hazardous materials. Specifically, the Department of Transportation (DOT) must issue safety regulations for trains carrying hazardous materials to require that rail carriers or shippers (1) provide state emergency response commissioners with advanced notice and information about the hazardous materials; (2) reduce blocked rail crossings; and (3) comply with certain requirements regarding train length and weight specifications, track standards, speed restrictions, and response plans. DOT must also establish requirements for wayside defect detectors. These are used by railway systems alongside the tracks to detect defects and failures (e.g., wheel bearing failures). Current federal regulations do not require their use, but federal guidance does address their placement and use. Under the bill, DOT must issue regulations establishing requirements for the installation, repair, testing, maintenance, and operation of wayside defect detectors for each rail carrier operating a train carrying hazardous materials. The bill also 1)increases the maximum fines DOT may impose on rail carriers for violating safety regulations, 2) requires DOT to update rail car inspection regulations and audit the federal inspection program, 3) requires a minimum two-person crew for certain freight trains, 4) phases out certain railroad tank cars by May 1, 2025 (four years sooner than required under current law), 5) expands training for local first responders, 6) imposes a new fee on certain rail carriers, and 7) provides funding for research and development to improve railway safety. NACD highlighted the numerous ongoing rail safety issues and initiatives to help bolster the bill text. NACD advocated for minor changes to the bill text to ensure provisions help to resolve the actual safety issues the railroads need to address to bolster rail safety. - NACD's concern with this legislation was providing legislative text that ensures the required advanced notices and information about the presence of hazardous materials onboard the rail is kept strictly between those with a need-to-know (i.e. first responders, state emergency response commissioners, state/local authorities), and not the general public. Additionally, the onus of sharing this information be on the rail carrier, and not the shippers, because shippers do not have that information to share. NACD advocated in support of H.R. 1633, the Reducing Accidents in Locomotives (RAIL) Act, introduced by Reps. Bill Johnson (R-OH) and Emilia Strong Sykes (D-OH) in the House of Representatives. This legislation is a bipartisan product that aims to enhance safety requirements for trains transporting hazardous materials. The RAIL Act would improve railway safety and operations by 1) directing the Federal Rail Administration (FRA), in conjunction with the findings of the National Transportation Safety Board (NTSB) investigation, to recommend changes to how our nations rail system operates - from train length, weight to speed, and track standards, 2) increasing funding for Hazardous Materials Training for first responders, 3) increasing maximum penalties for violations of rail safety regulations, 4) increasing inspections on all trains, including those carrying hazardous materials, 5) auditing federal rail inspection programs.

Contacted: SENATE; HOUSE OF REPRESENTATIVES

Bills named: H.R. 1633 (118th), H.R. 1674 (118th), S. 576 (118th)

Chemicals/Chemical Industry CHM

NACD advocated for legislation to be introduced that provides long-term reauthorization of the Department of Homeland Security's Chemical Facility Anti-Terrorism Standards (CFATS) program, administered by the Cybersecurity and Infrastructure Security Agency, before the program sunsets on July 27, 2023. This advocacy was intended educate Congress on the CFATS program and to bring awareness to the impending expiration of the program in July 2023. NACD worked to educate members of key congressional committees in the new Congress about the importance of the program and is seeking several avenues to ensure the swift and timely reauthorization of CFATS. NACD advocated in support of S. 576, the Railway Safety Act of 2023, introduced by Sens. Sherrod Brown (D-OH), J.D. Vance (R-OH), Bob Casey (D-PA), and John Fetterman (D-PA), Marco Rubio (R-FL), and Josh Hawley (R-MO) on March 1, 2023, following the train derailment in East Palestine, OH. NACD also supported and advocated in favor of the House of Representatives companion bill, H.R. 1674, introduced by Reps. Chris Deluzio (D-PA) and Nick LaLota (R-NY) on March 21, 2023. This bill addresses safety requirements for rail carriers and trains transporting hazardous materials. Specifically, the Department of Transportation (DOT) must issue safety regulations for trains carrying hazardous materials to require that rail carriers or shippers (1) provide state emergency response commissioners with advanced notice and information about the hazardous materials; (2) reduce blocked rail crossings; and (3) comply with certain requirements regarding train length and weight specifications, track standards, speed restrictions, and response plans. DOT must also establish requirements for wayside defect detectors. These are used by railway systems alongside the tracks to detect defects and failures (e.g., wheel bearing failures). Current federal regulations do not require their use, but federal guidance does address their placement and use. Under the bill, DOT must issue regulations establishing requirements for the installation, repair, testing, maintenance, and operation of wayside defect detectors for each rail carrier operating a train carrying hazardous materials. The bill also 1)increases the maximum fines DOT may impose on rail carriers for violating safety regulations, 2) requires DOT to update rail car inspection regulations and audit the federal inspection program, 3) requires a minimum two-person crew for certain freight trains, 4) phases out certain railroad tank cars by May 1, 2025 (four years sooner than required under current law), 5) expands training for local first responders, 6) imposes a new fee on certain rail carriers, and 7) provides funding for research and development to improve railway safety. NACD highlighted the numerous ongoing rail safety issues and initiatives to help bolster the bill text. NACD advocated for minor changes to the bill text to ensure provisions help to resolve the actual safety issues the railroads need to address to bolster rail safety. - NACD's concern with this legislation was providing legislative text that ensures the required advanced notices and information about the presence of hazardous materials onboard the rail is kept strictly between those with a need-to-know (i.e. first responders, state emergency response commissioners, state/local authorities), and not the general public. Additionally, the onus of sharing this information be on the rail carrier, and not the shippers, because shippers do not have that information to share. NACD advocated in support of H.R. 1633, the Reducing Accidents in Locomotives (RAIL) Act, introduced by Reps. Bill Johnson (R-OH) and Emilia Strong Sykes (D-OH) in the House of Representatives. This legislation is a bipartisan product that aims to enhance safety requirements for trains transporting hazardous materials. The RAIL Act would improve railway safety and operations by 1) directing the Federal Rail Administration (FRA), in conjunction with the findings of the National Transportation Safety Board (NTSB) investigation, to recommend changes to how our nations rail system operates - from train length, weight to speed, and track standards, 2) increasing funding for Hazardous Materials Training for first responders, 3) increasing maximum penalties for violations of rail safety regulations, 4) increasing inspections on all trains, including those carrying hazardous materials, 5) auditing federal rail inspection programs. Superfund Excise Tax Full or Partial Repeal - Infrastructure Investment and Jobs Act reinstatement of the Superfund excise tax led to NACD advocating for full or partial repeal of the Superfund excise tax. Additionally, NACD advocated for Congress to put pressure on the Internal Revenue Service (IRS) and Department of Treasury to issue additional guidance on the excise tax due to unclear initial guidance that left taxpayers guessing as to what should be taxed. The Superfund Tax on chemicals was sold as a fee on chemicals, but it is really a new tax on consumers. The 42 chemicals identified for taxation are the building blocks for a limitless number of goods, including steel, plastics, wood products, copper, cement, glass, pesticides, fungicides, pharmaceuticals, rubber, paint and coatings, batteries, solar panels, soap and detergents, ceramics, textiles, semiconductors, water treatment, light bulbs, refrigerants, dental fillings, fireworks and consumer electronics. The Superfund Tax on chemicals will also impede the goals of the Bipartisan Infrastructure Framework by making the components of infrastructure more expensive-including clean energy building blocks such as renewable energy, advanced coatings, energy efficiency solutions and electric vehicle (EV) infrastructure. The Superfund Tax on chemicals will also make U.S. manufacturers less competitive. NACD advocated for full repeal of the Superfund Tax in 2022, as well as partial repeal/exclusion of certain specific chemicals not manufactured in the US. While we awaited more information from the IRS, Congress passed the Inflation Reduction Act of 2022, which reinstated the Hazardous Substance Superfund Financing Tax Rate on Crude Oil and Petroleum Products. The tax will go into effect on January 1, 2023, and will be applied upon importation of the petroleum products. This additional component of the Superfund Tax will have an impact on NACD members, in addition to the initial resurrection of Part 1 of the Superfund Tax. NACD engaged in congressional advocacy to eliminate or limit the scope of the Superfund tax, including working with representatives and senators to send letters to Treasury/IRS, and educating offices on key committees about our compliance challenges. NAC advocated for and secured two letters to Treasury Secretary Janet Yellen from Rep. John Moolenaar (R-MI) and Sen. Shelley Moore Capito (R-WV) requesting detailed guidance for the Superfund Tax, along with penalty relief until improved clarity is achieved. NACD advocated against legislation that would impose blanket bans of Per- and polyfluoroalkyl substances (PFAS) class of chemicals.

Contacted: SENATE; HOUSE OF REPRESENTATIVES

Bills named: H.R. 1633 (118th), H.R. 1674 (118th), S. 576 (118th)

Transportation TRA

NACD advocated for legislation to be introduced that provides long-term reauthorization of the Department of Homeland Security's Chemical Facility Anti-Terrorism Standards (CFATS) program, administered by the Cybersecurity and Infrastructure Security Agency, before the program sunsets on July 27, 2023. This advocacy was intended educate Congress on the CFATS program and to bring awareness to the impending expiration of the program in July 2023. NACD worked to educate members of key congressional committees in the new Congress about the importance of the program and is seeking several avenues to ensure the swift and timely reauthorization of CFATS. NACD advocated in support of S. 576, the Railway Safety Act of 2023, introduced by Sens. Sherrod Brown (D-OH), J.D. Vance (R-OH), Bob Casey (D-PA), and John Fetterman (D-PA), Marco Rubio (R-FL), and Josh Hawley (R-MO) on March 1, 2023, following the train derailment in East Palestine, OH. NACD also supported and advocated in favor of the House of Representatives companion bill, H.R. 1674, introduced by Reps. Chris Deluzio (D-PA) and Nick LaLota (R-NY) on March 21, 2023. This bill addresses safety requirements for rail carriers and trains transporting hazardous materials. Specifically, the Department of Transportation (DOT) must issue safety regulations for trains carrying hazardous materials to require that rail carriers or shippers (1) provide state emergency response commissioners with advanced notice and information about the hazardous materials; (2) reduce blocked rail crossings; and (3) comply with certain requirements regarding train length and weight specifications, track standards, speed restrictions, and response plans. DOT must also establish requirements for wayside defect detectors. These are used by railway systems alongside the tracks to detect defects and failures (e.g., wheel bearing failures). Current federal regulations do not require their use, but federal guidance does address their placement and use. Under the bill, DOT must issue regulations establishing requirements for the installation, repair, testing, maintenance, and operation of wayside defect detectors for each rail carrier operating a train carrying hazardous materials. The bill also 1)increases the maximum fines DOT may impose on rail carriers for violating safety regulations, 2) requires DOT to update rail car inspection regulations and audit the federal inspection program, 3) requires a minimum two-person crew for certain freight trains, 4) phases out certain railroad tank cars by May 1, 2025 (four years sooner than required under current law), 5) expands training for local first responders, 6) imposes a new fee on certain rail carriers, and 7) provides funding for research and development to improve railway safety. NACD highlighted the numerous ongoing rail safety issues and initiatives to help bolster the bill text. NACD advocated for minor changes to the bill text to ensure provisions help to resolve the actual safety issues the railroads need to address to bolster rail safety. - NACD's concern with this legislation was providing legislative text that ensures the required advanced notices and information about the presence of hazardous materials onboard the rail is kept strictly between those with a need-to-know (i.e. first responders, state emergency response commissioners, state/local authorities), and not the general public. Additionally, the onus of sharing this information be on the rail carrier, and not the shippers, because shippers do not have that information to share. Rail Reform - NACD advocated for a full Surface Transportation Board to review and resolve issues related to rail. NACD advocated for rail reform as it relates to competitive switching and demurrage fees.

Contacted: SENATE; HOUSE OF REPRESENTATIVES

Bills named: S. 576 (118th), H.R. 1674 (118th)

Trade (domestic/foreign) TRD

The Generalized System of Preferences (GSP), a tariff relief program, expired on December 31, 2020. The GSP, established by the Trade Act of 1974, provides duty relief on products from participating developing countries to promote economic development. NACD supports either a short-term renewal with a clean extension of the program while negotiations continue or a long-term retroactive renewal of GSP. Miscellaneous Tariff Bill (MTB) - The Miscellaneous Tariff Bill, also a tariff relief program, expired on December 31, 2020. The MTB is a trade program facilitated by the U.S. International Trade Commission that provides duty relief on imports that cannot be domestically produced. NACD supported the retroactive renewal of the MTB. China Section 301 tariffs - USTR has implemented three China import tariff lists. List 1 and 2 remain in effect, and List 3 has been projected to go from 10% to 25%. NACD supports legislation to remove these import tariffs. Superfund Excise Tax Full or Partial Repeal - Infrastructure Investment and Jobs Act reinstatement of the Superfund excise tax led to NACD advocating for full or partial repeal of the Superfund excise tax. Additionally, NACD advocated for Congress to put pressure on the Internal Revenue Service (IRS) and Department of Treasury to issue additional guidance on the excise tax due to unclear initial guidance that left taxpayers guessing as to what should be taxed. The Superfund Tax on chemicals was sold as a fee on chemicals, but it is really a new tax on consumers. The 42 chemicals identified for taxation are the building blocks for a limitless number of goods, including steel, plastics, wood products, copper, cement, glass, pesticides, fungicides, pharmaceuticals, rubber, paint and coatings, batteries, solar panels, soap and detergents, ceramics, textiles, semiconductors, water treatment, light bulbs, refrigerants, dental fillings, fireworks and consumer electronics. The Superfund Tax on chemicals will also impede the goals of the Bipartisan Infrastructure Framework by making the components of infrastructure more expensive-including clean energy building blocks such as renewable energy, advanced coatings, energy efficiency solutions and electric vehicle (EV) infrastructure. The Superfund Tax on chemicals will also make U.S. manufacturers less competitive. NACD advocated for full repeal of the Superfund Tax in 2022, as well as partial repeal/exclusion of certain specific chemicals not manufactured in the US. While we awaited more information from the IRS, Congress passed the Inflation Reduction Act of 2022, which reinstated the Hazardous Substance Superfund Financing Tax Rate on Crude Oil and Petroleum Products. The tax will go into effect on January 1, 2023, and will be applied upon importation of the petroleum products. This additional component of the Superfund Tax will have an impact on NACD members, in addition to the initial resurrection of Part 1 of the Superfund Tax. NACD engaged in congressional advocacy to eliminate or limit the scope of the Superfund tax, including working with representatives and senators to send letters to Treasury/IRS, and educating offices on key committees about our compliance challenges. NAC advocated for and secured two letters to Treasury Secretary Janet Yellen from Rep. John Moolenaar (R-MI) and Sen. Shelley Moore Capito (R-WV) requesting detailed guidance for the Superfund Tax, along with penalty relief until improved clarity is achieved.

Contacted: HOUSE OF REPRESENTATIVES; SENATE

Tariff (miscellaneous tariff bills) TAR

The Generalized System of Preferences (GSP), a tariff relief program, expired on December 31, 2020. The GSP, established by the Trade Act of 1974, provides duty relief on products from participating developing countries to promote economic development. NACD supports either a short-term renewal with a clean extension of the program while negotiations continue or a long-term retroactive renewal of GSP. Miscellaneous Tariff Bill (MTB) - The Miscellaneous Tariff Bill, also a tariff relief program, expired on December 31, 2020. The MTB is a trade program facilitated by the U.S. International Trade Commission that provides duty relief on imports that cannot be domestically produced. NACD supported the retroactive renewal of the MTB. China Section 301 tariffs - USTR has implemented three China import tariff lists. List 1 and 2 remain in effect, and List 3 has been projected to go from 10% to 25%. NACD supports legislation to remove these import tariffs. Superfund Excise Tax Full or Partial Repeal - Infrastructure Investment and Jobs Act reinstatement of the Superfund excise tax led to NACD advocating for full or partial repeal of the Superfund excise tax. Additionally, NACD advocated for Congress to put pressure on the Internal Revenue Service (IRS) and Department of Treasury to issue additional guidance on the excise tax due to unclear initial guidance that left taxpayers guessing as to what should be taxed. The Superfund Tax on chemicals was sold as a fee on chemicals, but it is really a new tax on consumers. The 42 chemicals identified for taxation are the building blocks for a limitless number of goods, including steel, plastics, wood products, copper, cement, glass, pesticides, fungicides, pharmaceuticals, rubber, paint and coatings, batteries, solar panels, soap and detergents, ceramics, textiles, semiconductors, water treatment, light bulbs, refrigerants, dental fillings, fireworks and consumer electronics. The Superfund Tax on chemicals will also impede the goals of the Bipartisan Infrastructure Framework by making the components of infrastructure more expensive-including clean energy building blocks such as renewable energy, advanced coatings, energy efficiency solutions and electric vehicle (EV) infrastructure. The Superfund Tax on chemicals will also make U.S. manufacturers less competitive. NACD advocated for full repeal of the Superfund Tax in 2022, as well as partial repeal/exclusion of certain specific chemicals not manufactured in the US. While we awaited more information from the IRS, Congress passed the Inflation Reduction Act of 2022, which reinstated the Hazardous Substance Superfund Financing Tax Rate on Crude Oil and Petroleum Products. The tax will go into effect on January 1, 2023, and will be applied upon importation of the petroleum products. This additional component of the Superfund Tax will have an impact on NACD members, in addition to the initial resurrection of Part 1 of the Superfund Tax. NACD engaged in congressional advocacy to eliminate or limit the scope of the Superfund tax, including working with representatives and senators to send letters to Treasury/IRS, and educating offices on key committees about our compliance challenges. NAC advocated for and secured two letters to Treasury Secretary Janet Yellen from Rep. John Moolenaar (R-MI) and Sen. Shelley Moore Capito (R-WV) requesting detailed guidance for the Superfund Tax, along with penalty relief until improved clarity is achieved.

Contacted: HOUSE OF REPRESENTATIVES; SENATE

Homeland Security HOM

NACD advocated for legislation to be introduced that provides long-term reauthorization of the Department of Homeland Security's Chemical Facility Anti-Terrorism Standards (CFATS) program, administered by the Cybersecurity and Infrastructure Security Agency, before the program sunsets on July 27, 2023. This advocacy was intended educate Congress on the CFATS program and to bring awareness to the impending expiration of the program in July 2023. NACD worked to educate members of key congressional committees in the new Congress about the importance of the program and is seeking several avenues to ensure the swift and timely reauthorization of CFATS. NACD advocated for the strengthening of cybersecurity for critical infrastructure through a public-private partnership that has liability protections for the private sector. NACD advocated for the inclusion of chemical distribution facilities in the definition of covered critical infrastructure as it relates to drone policy.

Contacted: HOUSE OF REPRESENTATIVES; SENATE

Labor Issues/Antitrust/Workplace LBR

NACD advocates in opposition to the companion legislation H.R.20/S.567, the Richard L. Trumka Protecting the Right to Organize Act of 2023. H.R.20 was introduced on February 28, 2023, by Rep. Bobby Scott (D-VA-03), and S.567 was introduced on February 28, 2023, by Sen. Bernie Sanders (I-VT). This bill expands various labor protections related to employees' rights to organize and collectively bargain in the workplace. Specifically, it revises the definitions of employee, supervisor, and employer to broaden the scope of individuals covered by the fair labor standards; permits labor organizations to encourage the participation of union members in strikes initiated by employees represented by a different labor organization (i.e., secondary strikes); and prohibits employers from bringing claims against unions that conduct such secondary strikes. The bill also allows collective bargaining agreements to require all employees represented by the bargaining unit to contribute fees to the labor organization for the cost of such representation, notwithstanding a state law to the contrary, and it expands unfair labor practices to include prohibitions against replacement of, or discrimination against, workers who participate in strikes. The bill makes it an unfair labor practice to require or coerce employees to attend employer meetings designed to discourage union membership and prohibits employers from entering into agreements with employees under which employees waive the right to pursue or join collective or class-action litigation. Finally, the bill addresses the procedures for union representation elections, modifies the protections against unfair labor practices that result in serious economic harm, and establishes penalties and permits injunctive relief against entities that fail to comply with National Labor Relations Board orders. - The PRO Act has not yet passed out of committee in the House or Senate. Provisions in the PRO Act would force employers to provide their employees' personal information to labor groups without employee consent, infringe upon a worker's right to a secret ballot in union elections, and take away a worker's ability to work independently, especially in those working in the gig economy. - NACD advocated against the inclusion of elements of the PRO Act in several pieces of legislation. NACD advocated in support of including additional paid sick days in any legislated rail labor legislation moving forward.

Contacted: SENATE; HOUSE OF REPRESENTATIVES

Bills named: S. 567 (118th), H.R. 20 (118th)

Roads/Highway ROD

NACD advocated in support of S. 576, the Railway Safety Act of 2023, introduced by Sens. Sherrod Brown (D-OH), J.D. Vance (R-OH), Bob Casey (D-PA), and John Fetterman (D-PA), Marco Rubio (R-FL), and Josh Hawley (R-MO) on March 1, 2023, following the train derailment in East Palestine, OH. NACD also supported and advocated in favor of the House of Representatives companion bill, H.R. 1674, introduced by Reps. Chris Deluzio (D-PA) and Nick LaLota (R-NY) on March 21, 2023. This bill addresses safety requirements for rail carriers and trains transporting hazardous materials. Specifically, the Department of Transportation (DOT) must issue safety regulations for trains carrying hazardous materials to require that rail carriers or shippers (1) provide state emergency response commissioners with advanced notice and information about the hazardous materials; (2) reduce blocked rail crossings; and (3) comply with certain requirements regarding train length and weight specifications, track standards, speed restrictions, and response plans. DOT must also establish requirements for wayside defect detectors. These are used by railway systems alongside the tracks to detect defects and failures (e.g., wheel bearing failures). Current federal regulations do not require their use, but federal guidance does address their placement and use. Under the bill, DOT must issue regulations establishing requirements for the installation, repair, testing, maintenance, and operation of wayside defect detectors for each rail carrier operating a train carrying hazardous materials. The bill also 1)increases the maximum fines DOT may impose on rail carriers for violating safety regulations, 2) requires DOT to update rail car inspection regulations and audit the federal inspection program, 3) requires a minimum two-person crew for certain freight trains, 4) phases out certain railroad tank cars by May 1, 2025 (four years sooner than required under current law), 5) expands training for local first responders, 6) imposes a new fee on certain rail carriers, and 7) provides funding for research and development to improve railway safety. NACD highlighted the numerous ongoing rail safety issues and initiatives to help bolster the bill text. NACD advocated for minor changes to the bill text to ensure provisions help to resolve the actual safety issues the railroads need to address to bolster rail safety. - NACD's concern with this legislation was providing legislative text that ensures the required advanced notices and information about the presence of hazardous materials onboard the rail is kept strictly between those with a need-to-know (i.e. first responders, state emergency response commissioners, state/local authorities), and not the general public. Additionally, the onus of sharing this information be on the rail carrier, and not the shippers, because shippers do not have that information to share. NACD advocated in support of H.R. 1633, the Reducing Accidents in Locomotives (RAIL) Act, introduced by Reps. Bill Johnson (R-OH) and Emilia Strong Sykes (D-OH) in the House of Representatives. This legislation is a bipartisan product that aims to enhance safety requirements for trains transporting hazardous materials. The RAIL Act would improve railway safety and operations by 1) directing the Federal Rail Administration (FRA), in conjunction with the findings of the National Transportation Safety Board (NTSB) investigation, to recommend changes to how our nations rail system operates - from train length, weight to speed, and track standards, 2) increasing funding for Hazardous Materials Training for first responders, 3) increasing maximum penalties for violations of rail safety regulations, 4) increasing inspections on all trains, including those carrying hazardous materials, 5) auditing federal rail inspection programs.

Contacted: SENATE; HOUSE OF REPRESENTATIVES

Bills named: H.R. 1633 (118th), H.R. 1674 (118th), S. 576 (118th)

Trucking/Shipping TRU

NACD advocated in support of S. 576, the Railway Safety Act of 2023, introduced by Sens. Sherrod Brown (D-OH), J.D. Vance (R-OH), Bob Casey (D-PA), and John Fetterman (D-PA), Marco Rubio (R-FL), and Josh Hawley (R-MO) on March 1, 2023, following the train derailment in East Palestine, OH. NACD also supported and advocated in favor of the House of Representatives companion bill, H.R. 1674, introduced by Reps. Chris Deluzio (D-PA) and Nick LaLota (R-NY) on March 21, 2023. This bill addresses safety requirements for rail carriers and trains transporting hazardous materials. Specifically, the Department of Transportation (DOT) must issue safety regulations for trains carrying hazardous materials to require that rail carriers or shippers (1) provide state emergency response commissioners with advanced notice and information about the hazardous materials; (2) reduce blocked rail crossings; and (3) comply with certain requirements regarding train length and weight specifications, track standards, speed restrictions, and response plans. DOT must also establish requirements for wayside defect detectors. These are used by railway systems alongside the tracks to detect defects and failures (e.g., wheel bearing failures). Current federal regulations do not require their use, but federal guidance does address their placement and use. Under the bill, DOT must issue regulations establishing requirements for the installation, repair, testing, maintenance, and operation of wayside defect detectors for each rail carrier operating a train carrying hazardous materials. The bill also 1)increases the maximum fines DOT may impose on rail carriers for violating safety regulations, 2) requires DOT to update rail car inspection regulations and audit the federal inspection program, 3) requires a minimum two-person crew for certain freight trains, 4) phases out certain railroad tank cars by May 1, 2025 (four years sooner than required under current law), 5) expands training for local first responders, 6) imposes a new fee on certain rail carriers, and 7) provides funding for research and development to improve railway safety. NACD highlighted the numerous ongoing rail safety issues and initiatives to help bolster the bill text. NACD advocated for minor changes to the bill text to ensure provisions help to resolve the actual safety issues the railroads need to address to bolster rail safety. - NACD's concern with this legislation was providing legislative text that ensures the required advanced notices and information about the presence of hazardous materials onboard the rail is kept strictly between those with a need-to-know (i.e. first responders, state emergency response commissioners, state/local authorities), and not the general public. Additionally, the onus of sharing this information be on the rail carrier, and not the shippers, because shippers do not have that information to share. NACD advocated in support of H.R. 1633, the Reducing Accidents in Locomotives (RAIL) Act, introduced by Reps. Bill Johnson (R-OH) and Emilia Strong Sykes (D-OH) in the House of Representatives. This legislation is a bipartisan product that aims to enhance safety requirements for trains transporting hazardous materials. The RAIL Act would improve railway safety and operations by 1) directing the Federal Rail Administration (FRA), in conjunction with the findings of the National Transportation Safety Board (NTSB) investigation, to recommend changes to how our nations rail system operates - from train length, weight to speed, and track standards, 2) increasing funding for Hazardous Materials Training for first responders, 3) increasing maximum penalties for violations of rail safety regulations, 4) increasing inspections on all trains, including those carrying hazardous materials, 5) auditing federal rail inspection programs.

Contacted: SENATE; HOUSE OF REPRESENTATIVES

Bills named: H.R. 1633 (118th), S. 576 (118th), H.R. 1674 (118th)

Taxation/Internal Revenue Code TAX

Superfund Excise Tax Full or Partial Repeal - Infrastructure Investment and Jobs Act reinstatement of the Superfund excise tax led to NACD advocating for full or partial repeal of the Superfund excise tax. Additionally, NACD advocated for Congress to put pressure on the Internal Revenue Service (IRS) and Department of Treasury to issue additional guidance on the excise tax due to unclear initial guidance that left taxpayers guessing as to what should be taxed. The Superfund Tax on chemicals was sold as a fee on chemicals, but it is really a new tax on consumers. The 42 chemicals identified for taxation are the building blocks for a limitless number of goods, including steel, plastics, wood products, copper, cement, glass, pesticides, fungicides, pharmaceuticals, rubber, paint and coatings, batteries, solar panels, soap and detergents, ceramics, textiles, semiconductors, water treatment, light bulbs, refrigerants, dental fillings, fireworks and consumer electronics. The Superfund Tax on chemicals will also impede the goals of the Bipartisan Infrastructure Framework by making the components of infrastructure more expensive-including clean energy building blocks such as renewable energy, advanced coatings, energy efficiency solutions and electric vehicle (EV) infrastructure. The Superfund Tax on chemicals will also make U.S. manufacturers less competitive. NACD advocated for full repeal of the Superfund Tax in 2022, as well as partial repeal/exclusion of certain specific chemicals not manufactured in the US. While we awaited more information from the IRS, Congress passed the Inflation Reduction Act of 2022, which reinstated the Hazardous Substance Superfund Financing Tax Rate on Crude Oil and Petroleum Products. The tax will go into effect on January 1, 2023, and will be applied upon importation of the petroleum products. This additional component of the Superfund Tax will have an impact on NACD members, in addition to the initial resurrection of Part 1 of the Superfund Tax. NACD engaged in congressional advocacy to eliminate or limit the scope of the Superfund tax, including working with representatives and senators to send letters to Treasury/IRS, and educating offices on key committees about our compliance challenges. NAC advocated for and secured two letters to Treasury Secretary Janet Yellen from Rep. John Moolenaar (R-MI) and Sen. Shelley Moore Capito (R-WV) requesting detailed guidance for the Superfund Tax, along with penalty relief until improved clarity is achieved. The Generalized System of Preferences (GSP), a tariff relief program, expired on December 31, 2020. The GSP, established by the Trade Act of 1974, provides duty relief on products from participating developing countries to promote economic development. NACD supports either a short-term renewal with a clean extension of the program while negotiations continue or a long-term retroactive renewal of GSP. Miscellaneous Tariff Bill (MTB) - The Miscellaneous Tariff Bill, also a tariff relief program, expired on December 31, 2020. The MTB is a trade program facilitated by the U.S. International Trade Commission that provides duty relief on imports that cannot be domestically produced. NACD supported the retroactive renewal of the MTB. China Section 301 tariffs - USTR has implemented three China import tariff lists. List 1 and 2 remain in effect, and List 3 has been projected to go from 10% to 25%. NACD supports legislation to remove these import tariffs.

Contacted: HOUSE OF REPRESENTATIVES; SENATE