A Way Around N.J.’s Tough Chemical Security Rules?

By ALEX NUSSBAUM, STAFF WRITER

The chemical industry is still looking to override New Jersey’s strict new security rules, and it appears to have the Bush administration in its corner.

U.S. Homeland Security chief Michael Chertoff endorsed the idea of regulating chemical plants Tuesday, but he also called for one set of nationwide standards a principle that could result in federal rules that supersede state requirements.

"At the end of the day, if we don’t give people in any business some sense that they have consistent rules … then we’re creating a regulatory system that is doomed to failure," Chertoff said in a speech at George Washington University.

Chertoff’s comments came on the day that New Jersey’s rules kicked in, requiring 140 plants to assess their vulnerability to terrorist attacks or major accidents. Critics say the chemical industry’s lobbying arm is trying to get a weaker federal version passed as a way around the state standards.

"I believe that’s the American Chemistry Council’s top priority," said Andy Igrejas of the National Environmental Trust, a Washington, D.C., non-profit that has criticized security at the plants. "I think it’s very much a live issue and people in New Jersey should be very much concerned about it."

The U.S. Senate is considering a bill that would set standards for the nation’s 15,000 privately owned chemical makers. Like the New Jersey rules, it would make manufacturers assess their risks and write emergency plans to deal with a chemical release. Homeland Security could shut down plants that don’t comply.

But the New Jersey measure goes further by requiring 43 plants that use the most corrosive or toxic materials to investigate whether they could reduce or replace those materials completely, using "inherently safer technology." Environmentalists call that common sense, but industry groups see it as government micromanagement.

Last December, days after New Jersey announced its security measures, a draft of the congressional bill surfaced that would have superseded state regulations. The wording was dropped quickly after Governor-elect Jon Corzine and other officials complained. The bill now explicitly allows states to adopt tougher standards.

On Tuesday, Chertoff said the Bush administration hoped to make "adjustments" in Congress’s proposal, although he wouldn’t be specific about "what should be left to the states and what shouldn’t."

"We should also give some attention to making sure those who are responsible citizens and play by the rules get some measure of protection against inconsistent rules," he said.

To not do so, he said, would sow confusion and leave some companies exposed to "ruinous liability," he warned.

The American Chemistry Council, which represents 2,300 companies, said its ultimate goal is to get preemption back in the federal measure. Chemical plants should be held to one set of national rules, like nuclear plants or airlines, said Marty Durbin, the group’s managing director for federal affairs.

His said businesses want to avoid "a patchwork of rules at the state or local level that would actually lead to lowering national security."

In Trenton, a Corzine spokesman said the governor opposed "any federal changes that could undermine strong state protections.

"Unguarded chemical plants are a clear and present danger that must be addressed," Anthony Coley said.

The Senate still hasn’t held a hearing on the bill, sponsored by Susan Collins, R-Maine, and Joseph Lieberman, D-Conn., but Chertoff and other observers said they were optimistic that Congress will pass legislation this year.

In New Jersey, the new state rules required 140 plants to complete vulnerability reviews by Tuesday and to comply with industry guidelines on issues such as employee background checks and transporting materials.

Elvin Montero, a spokesman for the Chemistry Council of New Jersey, said he assumed all of his members had either done the assessments or were working on them. He knew of no plants that had to change practices due to the new rules, although those that did wouldn’t necessarily publicize their decisions, he said. In any event, he said, chemical companies in the state have already invested millions of dollars in improving safety.

"By and large, most of our members have already done what is necessary to reach compliance with this order," he said.

***

(SIDEBAR)

What it means

* Governor Corzine balked Tuesday at a suggestion that federal rules on chemical security should override new state standards.

* The federal plan would set security guidelines for 15,000 chemical plants and order each company to assess its risk of terror attacks and accidents.

* New Jersey’s rules go further, requiring some companies to look for ways to reduce or replace the most dangerous chemicals.

***

E-mail: nussbaum@northjersey.com