Wednesday, July 1st, 2015
The last two weeks have seen big developments on Capitol Hill, particularly for the $380-billion U.S. plastics industry. Below is a quick recap of the legislative shifts and successes that have been on SPI’s radar for the last two weeks:
-TSCA Reform Approved in the House of Representatives
After 40 years (!), the Toxic Substances Control Act (TSCA) is closer now than it’s ever been to getting a much-needed update. In a 398-1 vote, the House approved H.R. 2576, the TSCA Modernization Act of 2015 on June 23. “The world is a different place than it was when the Toxic Substances Control Act was first enacted in 1976,” said SPI President and CEO William R. Carteaux in a statement issued after the vote. “The plastics industry has seen amazing growth and transformation in size and sophistication over the last four decades, but TSCA has remained largely unchanged. By approving H.R. 2576, the House of Representatives has taken a big step in the right direction, toward a regulatory regime that protects consumers without making the plastics industry comply with regulations that are redundant or based on outdated science.” Read the full statement here.
-Trade Promotion Authority Clears its Final Hurdle
A day after TSCA reform was approved in the House, and after one failed vote in the House and some behind-the-scenes legislative wrangling, Congress approved “fast track” or trade promotion authority (TPA), a critical step toward a strong, robust Trans-Pacific Partnership (TPP), among other trade deals that stand to be lucrative for U.S. plastics companies. “TPA will also make it easier for trade negotiators to reach other important free trade agreements (FTAs) that have the potential to further increase exports of U.S. goods. The U.S. only has 20 FTA partners currently, but they purchase a disproportionately high percentage of U.S. goods,” Carteaux said in a statement. “In 2014 these 20 countries received 47 percent of U.S. exports, worth a total of $765 billion according to the U.S. International Trade Administration. Furthermore the plastics sector enjoys a trade surplus of $20.6 billion with America’s existing FTA partner countries. Clearly, FTAs are good for U.S. manufacturing and for the U.S. plastics industry, and TPA will enable the U.S. to expedite more of them in the future.”
-Senate Approves Transportation Bill, SPI Urges Quick Action from the House
Before TSCA and TPA, the Senate approved, by unanimous consent, S. 808, the Surface Transportation Board (STB) Reauthorization Act of 2015. Specifically the bill aims to strengthen the STB by giving it the tools and flexibility to operate more efficiently as the economic watchdog of the nation’s rail shipping system. SPI and a coalition of other organizations applauded the approval. “Today, most shippers lack access to competitive rail service, and as a result railroad shipping rates have surged over the last decade, rising nearly three times as fast as inflation and trucking rates,” Carteaux said. “Accordingly, this has resulted in an increase in the number, cost and complexity of rate disputes. In its current state, the STB is ill-equipped to handle these developments, but the modest reforms in S. 808 go a long way toward fixing this problem by strengthening the STB and eliminating many of the inefficiencies that have hampered its ability to ensure competitive, sensible rail service to the nation’s plastics manufacturers. A stronger STB would help ensure that plastic materials and products can be shipped efficiently to both domestic and international markets.” Read the full statement here.