There are lessons for other sectors of the economy in the Wall Street chaos. For example, commonsense regulations reduce risk and protect the public. But the chemical industry today resembles nothing more than Lehman Bros. circa 1999.

Since Sept. 11, 2001, industry titans such as Dow and DuPont have lobbied against requirements that they use safer chemicals at 7,000 high-risk chemical plants identified by the Department of Homeland Security. These facilities use and store highly toxic, chemicals such as chlorine gas. A terrorist attack or accident at one of them could form a toxic cloud that could endanger people up to 25 miles away. The EPA has identified 100 plants that each put one million or more people at risk.

Based on Homeland Security risk models, a disaster at one chemical facility could also inflict as much as $100 billion in economic damages, crippling the company and the local economy for years.

These risks are, however, avoidable - through simple, inexpensive regulations requiring companies to replace dangerous chemicals with relatively harmless agents that serve the same functions, such as liquid bleach, ozone and ultraviolet light.

Chemical facilities have demonstrated how quickly and cheaply they can make the transition to these alternatives. On 9/11, the manager of Washington's water-treatment plant spent a sleepless night worrying about seven 90-ton rail cars full of chlorine gas stored near the
Pentagon. Within 90 days, the plant converted to bleach.

Since 2001, more than 220 chemical facilities have voluntarily converted to safer processes. More than 85 percent reported doing so for less than $1 million per plant. A third expect to save money.

At this rate, though, it will take more than 70 years for voluntary conversions of the more than 3,000 plants that threaten a large population.

But instead of fast-tracking such improvements, Congress, in 2006, caved in to pressure from chemical-industry lobbyists, passing an "interim" law that actually prohibits the government from requiring safer chemicals or processes. The law expires on October 4, 2009 and the chemical lobby is pushing Congress to make it permanent.

The balance of power on the issue may be changing, though. The Association of American Railroads, representing the companies required to transport these volatile chemicals, recently broke with the chemical industry, calling on it to "stop manufacturing dangerous chemicals when safer substitutes are available." They added that if the companies didn't act, Congress should pass a tougher law.

Although the railroads are legally required to accept hazardous cargo, they're also financially liable in the event of a catastrophic release. Partly due to the railroads' clout, Congress is slowly starting to address the threat. In March, the House Homeland Security Committee adopted legislation (H.R. 5577) to correct flaws in the "interim" statute.

But the new bill has languished since then with no action in the Senate. Opponents, including Senator McCain (R-AZ), in the Senate say the House standards would result in excessive "paperwork." Those are the same words the chemical lobby used in their testimony before Congress.

It's still not too late for Congress to redeem itself if they return to Washington after the election. If they wait until next year they will only have nine months to send a truly protective law to the White House.