2010 Legislative Session Adjourns

2010 Georgia Legislative Session is over

The longest legislative session in history finally adjourned on April 29.  Overall, there was not much help or harm to the chemical industry.  As for individual Georgians, there were some issues that will have an impact, such as new ban on cell phone use while driving for 16 and 17 year-olds and a ban on texting on everyone while driving.  After nearly  three years of almost adopting a comprehensive transportation legislation, it was finally accomplish this year.  Under this proposal, the state will be divided into regions based on county lines.  The regions will develop a transportation plan and hold a referendum on a 1% sales tax to pay for the proposed plan.  GCC worked to make sure that any new transportation taxes will allow the present sales tax exemptions.  Further, the legislation will also include a new exemption for energy used in manufacturing.  Hopefully, this will set a precedence to getting the full exemption for energy in the future.  Additionally, there will be numerous increased fees.  The most generally applied new fee will be a 1.5% hospital bed fee.  The new fees along with some deep budget cuts were used to balance the FY 2011 budget.  Most agencies received about a 8% reduction in budgets.  GA EPD was targeted for cuts in the range of about 18%, and GCC engaged to help restore a lot of necessary funding for some of the essential programs.  We further engaged to help restore funding for the Department of Community Affairs Construction Codes and Industrialized Buildings Programs, which set energy building codes.  GCC also helped defeat an attempt to allow agencies to adjust fees across the board without legislative approval.  The only GCC specifically sponsored bill was SB 78, which makes some technical changes to the Voluntary Remediation Program.  It was adopted on the final day of the session.

HB 1405 Update

As we have reported extensively, the main concern from the 2010 session for GCC is HB 1405.  This measure creates an independent council to review tax incentives and exemptions and make recommendation to the legislature for changes.  We are very concerned about this study and the potential impact on manufacturing of the recommendations since the recommendations would go directly to the House and Senate for up or down votes.  GCC has joined seven other groups to form the Coalition for a Competitive Georgia (CCG).  Members include Georgia Agribusiness Council, Georgia Chemistry Council, Georgia Farm Bureau, Georgia Forestry Association, Georgia Mining Association, Georgia Paper and Forest Products Association, Georgia Poultry Federation and Georgia Traditional Manufacturers Association.  CCG is going to contract with the former chairman of the House Way and Means Committee Chairman, Richard Royal, to assist with the interaction of the study committee.  Last week on a conference call, GCC voted to access each member a $500 fee to cover our share of the consultant contract.  Invoices for the assessment will be emailed to the key GCC contacts early next week.  We will send out additional information about the study committee and CCG, but please start thinking about how your company could be further engaged.  CCG is going to need a technical committee to advise the coalition regarding tax issues.  If you have someone that could participate on this committee, please let me know as soon as possible. CCG’s first face to face meeting with the technical committee will be June 29 at the Georgia Forestry Association’s office in Forsyth.

EPA Proposes Boiler MACT and CISWI Regulations

On April 29, 2010, EPA announced a set of regulatory proposals under the Clean Air Act that addresses air emissions from boilers and process heaters, commercial/industrial solid waste incinerators (CISWI) and defines which non-hazardous secondary materials would be considered solid waste and which would be considered fuel. This distinction would determine whether a material can be burned in a boiler or whether it must be burned in a solid waste incinerator.

EPA’s action consists of four separate but related rulemaking.
1. Emissions Standards for Area Source Industrial, Commercial, and Institutional Boilers
2. Emissions Standards for Major Source Industrial, Commercial, and Institutional Boilers
3. Emissions Standards for Commercial/Industrial Solid Waste Incinerators
4. Definition of Non-Hazardous Solid Waste

More information about the four proposed rules can be found at: http://www.epa.gov/airquality/combustion/actions.html.

EPA will take comment on the proposed rules for 45 days after they are published in the Federal Register. EPA will hold a public hearing on the rules soon after they are published in the Federal Register.