Regulatory Pressures Affecting Manufacturing in Contra Costa County Peter McGaw A R C H E R N O R R I S on behalf of The Contra Costa Council Presented to The Contra Costa County Board of Supervisors October 28, 2003

The Contra Costa Council A collaboration of business, labor, government, education and non-profit organizations Nearly 400 members provide approximately one quarter of the employment in Contra Costa County Dedicated to improving the quality of life in Contra Costa County and in the Bay Area

Changes in the Regulatory Climate Water Quality Air Quality Environmental Justice Precautionary Principle

New Water Quality Regulation New rules California Toxics Rule TMDLs New interpretations of existing rules Narrative Toxicity Criteria Virtually every permit adopted in the Bay Area in the last three years has been appealed

New Air Quality Regulation Title V Ozone and NOx Attainment Plans Refinery Flaring Rule

Message Received Placing regulatory burdens on those who have done the most already Point sources (Water) Stationary sources (Air) Least benefit for the cost incurred

Environmental Justice The Contra Costa Council actively supports the fair treatment of all, regardless of race,culture, or economic status, with respect to the development, adoption, implementation and enforcement of environmental laws Need clear criteria before declaring an issue to be EJ

Precautionary Principle No activity is entirely risk free Precaution is appropriate where risk of harm cannot be precisely characterized Our current regulatory system has considerable precaution already built in: conservative assumptions safety factors low acceptable risk levels

Precautionary Principle Where an activity raises a threat to human health or the environment, precautionary measures should be taken even if some cause and effect relationships are not fully established scientifically. Recommendations of Advisory Committee to Cal- EPA Interagency Working Group on Environmental Justice The Precautionary Principle advocates an extreme form of precaution:

Precautionary Principle Replaces science with unquantifiablethreats No standards, no procedural criteria Easily subject to misapplication and abuse The Precautionary Principle advocates the abandonment of sound scientific investigation as a basis for environmental decision-making

Precautionary Principle l Allows regulation based on unsubstantiated allegations l Requires the impossible: prove a negative

Precautionary Principle l Adds to cost of products to consumers l Drains regulatory resources chasing imaginary or negligible risks l Allows no consideration of potential benefits Stifles innovation

Precautionary Principle Products that would not have passed the test Aspirin and other medications Airplanes Automobiles

Precautionary Principle Environmental advocates: stop chlorine disinfection due to potential byproducts Peru: 1.3 million people contracted cholera Over 11,000 people died One of Latin Americas biggest cholera epidemics All to avoid a handful of purely speculative cancer cases Chlorine disinfection of drinking water

Precautionary Principle Electricity High yield crops Radar CT and MRI Scans

Environmental Regulation Science, not speculation

Conclusion Manufacturing is important, to California and to Contra Costa County Good, high-paying jobs Best job multiplier Manufacturing is imperiled in this County and across the state

Conclusion Decisions at the County level can make Contra Costa business-adverse or business-friendly Advocacy at the Regional and State level can help preserve Contra Costa Countys important manufacturing base

California Manufacturers & Technology Association