Making Ohio’s Chemistry Industry More Competitive

The members of the Ohio Chemistry Technology Council have pledged to work with Ohio leaders to make the state a more competitive global center of technology.  To do that, it is essential that Ohio's elected officials in Columbus and in our Nation's capital embrace policies that will allow Ohio's chemsitry industry to become more competitive in a very challenging global business environment.

In 2011, our highest priorities are:

• Reversing U.S. EPA’s aggressive initiatives that directly threaten Ohio’s chemistry industry:  The U.S. Environmental Protection Agency continues to increase the regulatory burden on the states, and no state is more affected than Ohio.  Recent U.S. EPA regulatory actions directly threaten Ohio’s sources and cost of energy—through unprecedented tightening of air quality standards, through regulations on so-called green house gas emissions (GHGs), through the so-called boiler MACT that will bring thousands of small boilers into a costly permitting program, and through many other policies and regulatory interpretations.  OCTC and our members believe that it should be the role of the U.S. Congress to determine the environmental policies of the United States through constructive engagement with the White House and the states.

• Regulatory Reform:  The chemistry industry supports regulations necessary for promoting public health and safety and combating fraud in markets.  We also recognize that environmental regulations such as the Clean Air Act and the Clean Water Act have been highly effective in improving the quality of our air and water in Ohio.  But over the past few decades, the number and complexity of regulations has increased—and often without any reasonable assessment of the benefits gained versus the costs to our economy.  OCTC strongly supports a complete review of all existing regulations—with repeal or revision of those that are outdated or that cannot be shown to provide a measurable benefit to Ohioans.

• A Fair Civil Justice Environment:  Ohio’s civil justice system has improved dramatically in the past five years—following enactment of some fairly modest reforms aimed at curbing lawsuit abuse.  OCTC supports retention of existing protections against lawsuit abuse, and further reforms to protect our member companies and others from unwarranted civil actions.

• Tax Structure on Our Industry:  Ohio’s enactment of the Commercial Activity Tax (CAT) in 2005 reformed a dysfunctional business tax system in Ohio that punished companies—such as our members—who invested in production and other facilities in Ohio.  OCTC strongly supports the continuation of the CAT without exemptions for any particular sector of the economy—and we also urge consideration of its proceeds being directed into the General Revenue Fund.

• Energy cost and availability:  Ohio’s chemistry industry is energy intensive.  The cost of purchased electricity is often second only to raw materials costs for our members.  Thus, reliable and competitively-priced electricity is critical to long-term viability of most of our member companies.  In addition, many of our member companies use intermediates produced from natural gas as raw materials in their production of high-value added chemistries.  The more diversion of natural gas for use as a bulk fuel in utility electric generation, the more our members must pay for raw materials AND electricity.  OCTC supports public policies in Ohio that assure our members will have access to affordable electricity, and that they have the flexibility to sell excess power generated in their production facilities through combined heat and power contracts.

 

• Rail freight competition:  Moving bulk chemicals by rail is second only to barge transport in terms of low costs of shipping.  However, Ohio’s chemistry industry faces monopoly pricing and unpredictable service when dealing with the railroads today.  This dysfunctional system ultimately must be resolved in the Congress.  OCTC works with a major national coalition to pursue competitively-priced and high-quality rail freight service.

 

• Security in all phases of chemicals production, sales, distribution, and use:  OCTC and our members work closely with Federal, state, and local law enforcement, public safety, and elected officials to assure that security programs are in place to prevent terrorist or criminal actions aimed at attacking production facilities or diverting the products of chemistry for use as weapons or illegal activities.  OCTC members all have security programs in place, as required by an industry program.  In addition, all OCTC members are covered by the U.S. Department of Homeland Security’s chemical security regulatory program.

 

• Promoting the use of high-technology products from our member companies:  Many OCTC members produce products that are designed to improve energy efficiency, reduce costs, and provide better results for the customer.  OCTC supports public policies that encourage chemistry innovation.

 

• Constructive engagement with Ohio’s leaders on issues critical to the chemistry industry:  OCTC is committed to working with Federal, state, and local leaders, community groups, environmental organizations, and others to address issues and concerns associated with the business of chemistry.  Our members and professional staff are constantly in contact with Ohio leaders in the Executive and Legislative branches of government.  Anyone wishing to engage OCTC and our members is encouraged to contact OCTC at anytime.