Vital Signs

Throughout the gamut of Industry in the U.S., it is frightening how many people charged with their company’s regulatory compliance are operating under the grand illusion that their insurance company is satisfying their company’s EPA/OSHA compliance. Such regulatory mandates consist of over 60 environmental, health and safety (EHS) laws imposed upon Industry by the U.S. Environmental Protection Agency (EPA), the Occupational Health & Safety Administration (OSHA, housed within the U.S. Dept. of Labor), and the U.S. Dept. of Transportation (DOT), along with regulatory offshoots at the state, county and local agencies having jurisdiction over their facility.

Why is this case? I really doubt that insurance salesmen are telling their clients that “All of your EPA/OSHA compliance is being covered in comprehensive fashion under your insurance policy.” If so, this would be unethical. But it is altogether probable that insurance salesmen, in their ignorance of all the EHS laws being imposed upon Industry, might think and even say their client’s policy is covering more than it really is. However, the responsibility for this communications disconnect lands squarely on the client, and particularly on the individual assigned to their company’s EHS compliance responsibilities for what his insurance policy actually covers, and especially that policy’s limitations.

It has been said, “If you think Education is expensive, try Ignorance.” In other words, lacking an awareness of all the compliance laws imposed upon Industry can leave anyone with a false sense of security that he has no compliance mandates outside the coverage of his insurance company’s efforts.

Frankly, thinking that one’s insurance company is covering his regulatory compliance is silly. This would be akin to thinking that renewing his company’s fire vehicle fleet insurance somehow takes care of his company’s IRS responsibilities.

Every company insured by insurance has a written document…his insurance contract specifying a policy’s coverage. Now why would anyone continue to operate under the myth of thinking his EPA/OSHA/DOT compliance is being covered by his insurance company, knowing the repercussions for being wrong will someday have devastating consequences on his company’s welfare. To not research this personal misunderstanding renders his company to massive enforcement penalties, crippling lawsuits which last 1-3 years, expensive attorneys fees court costs about 30%-50% beyond the civil fine, and the lost opportunity costs of putting one’s attention on fighting a lawsuit rather than the productivity of the company’s core business priorities.

Generally speaking, the conversation with someone gravitating to this myth goes like this:

ANSWER: Oh! You're referring to your workers compensation insurance company. Your workers compensation company is an insurance company that deals in workplace risk and monitors your safety issues from time to time so as to know how much to charge you in annual premium costs. They will, indeed, do a few safety audits because that benefits them by holding down your workplace accidents and injuries. But do you really think they’re doing anything other than providing visually-oriented walk-through’s to minimize claims that could force financial losses on them? Of course, you should take advantage of any free services as a part of your insurance company’s benefits. But, please don’t form a false sense of security in thinking your compliance among the 60 EPA, OSHA, DOT laws is covered on top of insuring your workforce against workplace injuries and fatalities. The best way to understand just what is being provided by your workers compensation company, above and beyond insurance coverage, is to ask them to write you a letter on everything covered and IMPLEMENTED on the 60 laws relative to EPA, OSHA, DOT compliance. And then, for that which they say is covered, ask them to show you where they’ve provided you with site-specific documentation to the specs of each law, all to be maintained on your site. Now, if you’re so naïve to take their word for it (and not get it in writing), you probably will come to a moment in your business life when, like all of us do from time to time, you don’t feel as smart as you thought you were. Seriously, would a workers comp company provide EHS compliance services for no extra fees beyond the premiums they’re charging for the INSURANCE they’re providing? Here’s a simple test if you’re not yet quite convinced. Just pick up the phone and ask your agent, “Could you tell me what my storm water coefficient is for my TRI issues?” Now time the silence with the second hand on your watch.

A major thrust to help reduce the growth of greenhouse gas (GHG) generation is underway. This ground-breaking increase in regulatory activity has been initiated by the Supreme Court’s ruling that GHGs like carbon dioxide should be considered and, in fact, are pollutants. This allows GHGs to be regulated under the Clean Air Act. EPA leadership under the Bush administration has purported that GHGs could not be regulated since they weren’t listed as pollutants. The Supreme Court ordered the EPA to take regulatory action citing that the only way the EPA could avoid regulating GHGs was to prove that these gases don’t cause global warming. Considering the wave of national and international studies and support that GHGs are linked to global warming, the EPA will not take an opposing stand against this monumental task.

The earth’s weather and climate is driven by the radiant action of the sun. The sun heats the earth’s surface and, in turn, the earth radiates energy back into space. The atmosphere traps some of this heat energy similar to the glass panels in a greenhouse. This natural “greenhouse effect” causes the global temperatures to be what they are now, providing a hospitable atmosphere that would be much colder and very likely uninhabitable without the effect. However, when GHG concentration levels increase, problems may very well arise.

GHGs primarily include carbon dioxide (CO₂), methane, and nitrous oxide. These gases have a characteristic property of trapping heat near the earth’s surface. Uncertainty exists concerning exactly how the earth’s climate responds to these gases, but global temperatures are undeniably on the rise. Global mean surface temperatures have increased from over one-half to one and one-quarter degrees Fahrenheit since the later part of the 19^th century. The 20^th century’s 10 warmest years have all occurred within the past 15 years. The global sea level, an indicator of ice concentration and melt, has risen 4 - 10 inches over the past century.

Statistics indicate that since the beginning of the industrial revolution, atmospheric concentrations of the primary GHGs have increased significantly. CO₂ has increased by 30%, nitrous oxide by approximately 15%, and methane by an alarming 200%. Scientists are generally in agreement that the combustion of fossil fuels caused by humans’ ever increasing energy demands is one of the primary culprits for the increased concentration of CO₂. The energy demand, fueled by the operation of automobiles and trucks, home and business heating, electric power generation is responsible for approximately 80% of societies CO₂ emissions, 25% of the US methane emissions, and 20% of global nitrous oxide emissions. In 1994, the United States emitted approximately one-fifth of the total global GHG emissions.

Several governmental and private support organizations have been a part of the push to reduce GHG emissions. Included in this growing consortium is the Center for Climate Change and Environmental Forecasting (under the direction of the U.S. Department of Transportation) and the U.S. Climate Action Partnership (USCAP), a concerned business organization comprised of many of the largest Fortune 500 companies. This steadily growing list includes powerful organizations such as the American International Group, Alcan, Boston Scientific, ConocoPhillips, Dow Chemical Co., Johnson & Johnson, Shell, General Motors, PepsiCo and Siemens. Additional not-for-profit members include the Environmental Defense, the Natural Resources Defense Council, and the Nature Conservancy.

The USCAP supports that a US policy framework needs to be developed and must include:

Mandatory approaches to reduce GHG emissions from major emitting sectors.
Flexible approaches to establish carbon price signals that vary by economic sector.
Other approaches that create incentives and encourage multi-national GHG emission reduction strategies.

It is believed that implementation of this type framework would achieve the goal of limiting global atmospheric GHG concentrations to a level that would minimize large-scale adverse climate change and promote the growth of technological research and development for zero-emission and sustaining technologies.

Some of the upcoming state and federal regulatory actions that can be expected include:

Limiting or freezing of GHG emission levels.
Rolling back CO₂ emissions levels to those released in previous years.
Mandating emission controls and associated devices.
Increased tracking and monitor of CO₂ emissions.
Participation in GHG emission cap-and-trade programs.
Mandatory disclosure of CO₂emissions levels.
Limiting use of fossil fuels (including diesel, oil and coal).

The global economy, especially the U.S., will definitely be impacted by regulatory activity to control and minimize GHG emissions generation. Mandatory reduction in GHG emissions from the burning of fossil fuels will significantly add to the cost of business. Nonetheless, business must be ready for these changes and make plans today with innovation and progressive thinking for the development and implementation of sustaining technologies and intelligent resource utilization.

As a result of Homeland Security Presidential Directive-8 (December, 2003), the Department of Homeland Security (DHS) has released the finalized version of the National Preparedness Guidelines (Guidelines). The goal of the Guidelines is to strengthen the preparedness of the United States to prevent, respond to, and recover from threatened or actual terrorist attacks, major disasters, and other emergencies within the U.S.

Developed through an extensive process that involved more than 1,500 federal, state and local officials, and more than 120 national associations, the Guidelines replace the Interim National Preparedness Goal issued on March 31, 2005. They also integrate lessons learned following Hurricane Katrina and a 2006 review of states’ and major cities’ emergency operations and evacuation plans.

The Guidelines hope to:

Organize and synchronize national (including Federal, State, local, tribal and territorial) efforts to strengthen national preparedness;
Guide national investments in national preparedness;
Incorporate lessons learned from past disasters into national preparedness priorities;
Facilitate a capability-based and risk-based investment planning process; and
Establish readiness metrics to measure progress and a system for assessing the Nation’s overall preparedness capability to respond to major events, especially those involving acts of terrorism.

Included within the Guidelines are a vision, capabilities, and priorities for national preparedness. The Guidelines are an all-hazards approach to preparedness, as is the previously-released National Incident Management System (NIMS). The Guidelines are risk-based, i.e. a function of three variables; Threat, Vulnerability and Consequence. The Guidelines provide a set of National Planning Scenarios that represent a range of threats that warrant national attention. Analysis of these scenarios is necessary for defining capabilities in terms of both capacity (how many people are needed) and proficiency (how well must they be able to perform).

Preparedness is the responsibility of every level of government, every department, and every agency consistent with its authorities. It is also the responsibility of private and non-profit organizations as well. No one department or organization is expected to provide all levels of preparedness, but all are expected to share their capabilities in mitigation, response and recovery efforts in the event of a major disaster or event.

The entire document can be found and downloaded at the following web address:

www.dhs.gov/xnews/releases/pr_1189720458491.shtm and following the link on the right side entitled National Preparedness Guidelines (PDF, 51 pages-560 kb).

CONTACT US
Email: vitalsigns@vanguardenvl.com
(918) 641-5588 (Worldwide)
Fax: (918) 641-0663

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