1. Political Action: 4.11.11 The Chemistry Industry’s Congressional Priorities and Grassroots Action Plan

2. Political Landscape

3. Republican Majority in the House 241-193 Republican Majority New Chairs of House Committees Fred Upton (R-MI) TSCA, Security, Clean Air John Shimkus (R-IL) TSCA Dave Camp (R-MI) Tax Reform Peter King (R-NY) Security Primary focus on fiscal discipline

4. Close Quarters in the Senate 53-47 Democratic Majority 23 Democratic Senators up in 2012 Smaller Margins make Committee action difficult Senate EPW Committee margins 10-8 Senate Homeland Security Committee split 9-8 Nothing will move without 60 votes

5. President Obama: Pro Business Deficit Hawk? Regulatory Reform Increased outreach to business leaders State of the Union agenda Innovation Energy policy Tax reform Budget cuts Officially announced his re-election campaign on April 4

6. The New Reality: GHG Regulation Last November, momentum for a 2-year delay Today, a push to strip EPA authority to regulate GHG End game unclear – more to come Success will require bi-partisan support

7. Priority Advocacy Issues

8. Federal Chemicals Management Status TSCA Modernization will move slowly Comprehensive reform unlikely, rifle shot fixes may be possible House Energy and Commerce Intend to hold hearings to build record Senate Environment and Public Works Lautenberg hearing Feb. 3 ACC testimony emphasized need to promote innovation and challenged perception of REACH as solution Lautenberg bill expected soon

9. Federal Chemicals Management Strategy Emphasize ACC’s support of bipartisan modernization through steady outreach Build the business case for reform Narrow scope of issues Seek House action first Maintain Dialogue with NGO’s Continue to lead, build and leverage AAI

10. State Chemicals Management Status NGO activity intensifying 10 state introduce broad chemical regulatory bans 16 states introduce BPA ban bills 5 states introduce anti-chemical TSCA resolutions High Threat: California, Vermont, Maryland and Washington

11. State Chemical Management Strategy Increasing state presence to counter NGO’s Leading a business coalition to reform children’s products law in Maine Introduced model TSCA resolutions in 20 states Building on pro-business election outcomes, fiscally challenged climates

12. Climate Status *subject to change! Legislation Introduced Rockefeller – Capito Two year delay Viewed now by many as a “floor” Upton-Ihofe Repeal EPA’s authority to regulate GHG Mobile source rules maintained through DOT Barasso Even broader appeal of EPA GHG authority Brown Suspends EPA’s permitting regulations for 2 years

13. Climate Strategy Push for CR delay Meets industry’s immediate need Provides time for longer term solution to develop Compel moderate D’s to force action ACC leading Coalition for American Jobs Grasstops, Grassroots, paid media Senator Brown leading moderate D’s

14. OCTC Release

15. Energy Status Cap and trade off the table Comprehensive energy supply bill possible D’s pushing Clean Energy Standard Shortchanges energy efficiency States focused on shale gas; EPA looking at impacts Proposed policies could slow supply growth by adding cost and red tape EPA investigating water contamination

16. Energy Strategy Continue support for “all of the above” Elevate advocacy for industry priorities Energy efficiency Emphasize government-funding-free options, state building codes Showcase chemistry’s contribution Shale Gas Articulate chemistry’s unique interest to policymakers and financial markets Stress benefits to U.S. competitiveness Senator Portman’s Energy Summit

17. Security Status CFATS extended through October 4 House House Homeland Security Committee leadership has introduced 5-year extension of CFATS without IST Senate Senator Collins has reintroduced 3- year CFATS extension without IST Other proposals include some with extensions of as long as 7 years Cyber Security on the agenda

18. Security Strategy Seek longest reauthorization period politically feasible House first action Seek straight reauthorization without IST Recruit D’s on Homeland Security and Energy & Commerce Senate Unanimous vote last year on Collins bill Continue to work with Senator Collins to pass straight reauthorization

19. Tax Status President calls for corporate tax reform in State of the Union Senate Finance and House Ways and Means interested in reform Broader tax base with lower rates Legislation will pick winners and losers Difficult path forward

20. Tax Strategy Engaging Tax committee to develop industry’s point of view on debate Identify unique interests that ACC should promote or defend Craft a package of proposals that would advantage our industry All tax legislation must start in the US House

21. Political Mobilization Status 2011-2012 target list developed Leadership, key committees and swing votes Representatives of facility rich districts and states 17 Senators and 42 House members

22. Political Mobilization Strategy Launch member company engagements back home showcasing importance of the chemical industry Identify facility in-district relationship manager Develop in-district participation and opportunity tracking system Sustain series of contacts throughout the year Plant tours District Meetings In-district fundraisers

23. Senate Targets

24. House Targets

25. Political Mobilization Strategy - Ohio Senator Sherrod Brown Important Dem leader on industry issues Senator Rob Portman An Industry Champion Representative John Boehner (R-8) Speaker of the House Representative Bob Latta (R-5) Member, Subcommittee on Commerce, Industry and Trade

26. Questions?