As I mentioned in the introduction, I have had the opportunity to work with and learn from some intelligent and creative people. Some of the ideas and concepts I have co-opted do not fit into any other categories, so I came up with this “Key Ideas” chapter of random items.
14.1 Know Your Site and Operations
14.1.1 Chemicals
As discussed in Chapter 3, some regulations are predicated on the chemicals manufactured, processed, stored, or otherwise used, so you should have a list of the chemicals, which should include oils and fuels, at your facility. The Occupational Safety and Health Administration’s (OSHA) Hazard Communication standard actual requires you to have a list of hazardous chemicals at your site (i.e., any material that requires a safety data sheet)[1]. Even though Occupational Safety and Health Administration’s (OSHA) Hazard Communication standard exempts some items, such as drugs, food, hazardous wastes, etc.[2], I would include them on your list because they may be subject to other EHS regulations.
In addition to just a list of chemicals on-site, you may want to have list of ingredients and associated concentrations: this makes it easier to calculate the quantities on-site for comparison to various regulatory thresholds. If you are compiling this list, I would include the chemical’s Chemical Abstract Service (CAS) number, if available, because some chemicals have multiple names and synonyms so it is easier to look up the Chemical Abstract Service (CAS) number, which is a unique identifier.
14.1.2 North American Industrial Classification System (NAICS) and Standard Industrial Classification (SIC) Codes
A state environmental inspector was conducting inspections in the area by one of our sites. He came by and introduced himself. He did not see any issues except one: He said that our facility was required to have an industrial stormwater permit. I informed him that our site did not fall into one of the industrial classifications that required an industrial stormwater permit. He told me I was incorrect and stated that the only two options were to have a permit or not have any industrial operations exposed to stormwater (i.e., a “no exposure certification”). I followed up with a letter to his supervisor explaining my logic: industrial stormwater permits are required for sites where certain industrial activities are occurring and we were not conducting any of these activities. I never heard back from the state environmental agency, and we never applied for an industrial stormwater permit.
This incident illustrates why it is important to know what industrial classification codes apply to your facilities. One of the systems that the United States used to classify various businesses is the four-digit numerical Standard Industrial Classification (SIC) code system developed by the Interdepartmental Committee on Industrial Statistics, established by the Central Statistical Board of the United States, and published in 1938[3]. The Occupational Safety and Health Administration’s (OSHA) website lists Standard Industrial Classification (SIC) codes and corresponding descriptions[4]. The Standard Industrial Classification (SIC) codes are divided into ten divisions shown below[5]:
| Division | Codes | Industry Title |
| A | 01-09 | Agriculture, Forestry, And Fishing |
| B | 10-14 | Mining |
| C | 15-17 | Construction |
| D | 20-39 | Manufacturing |
| E | 40-49 | Transportation, Communications, Electric, Gas, And Sanitary Services |
| F | 50-51 | Wholesale Trade |
| G | 52-59 | Retail Trade |
| H | 60-67 | Finance, Insurance, And Real Estate |
| I | 70-89 | Services |
| J | 90-99 | Public Administration |
These codes are the first two digits of the Standard Industrial Classification (SIC) code. For example, a Standard Industrial Classification (SIC) code of 1021 is for Copper Ore and Nickel Ore Mining (i.e., the description that accompanies the Standard Industrial Classification (SIC) code), which is in Division B – Mining since it starts with “10”.
Although the Standard Industrial Classification (SIC) code system is still in use, it was replaced by the North American Industrial Classification System (NAICS) code system, which was developed by Canada, Mexico, and the United States, in 1998[6]. You can look up six-digit and ten-digit numeric North American Industrial Classification System (NAICS) codes and corresponding descriptions from the Census Bureau’s website[7]. The North American Industrial Classification System (NAICS) codes are divided into 20 sectors as shown below[8].
| Sector | Definition |
| 11 | Agriculture, Forestry, Fishing and Hunting |
| 21 | Mining, Quarrying, and Oil and Gas Extraction |
| 22 | Utilities |
| 23 | Construction |
| 31-33 | Manufacturing |
| 42 | Wholesale Trade |
| 44-45 | Retail Trade |
| 48-49 | Transportation and Warehousing |
| 51 | Information |
| 52 | Finance and Insurance |
| 53 | Real Estate and Rental and Leasing |
| 54 | Professional, Scientific, and Technical Services |
| 55 | Management of Companies and Enterprises |
| 56 | Administrative and Support and Waste Management and Remediation Services |
| 61 | Educational Services |
| 62 | Health Care and Social Assistance |
| 71 | Arts, Entertainment, and Recreation |
| 72 | Accommodation and Food Services |
| 81 | Other Services (except Public Administration) |
| 92 | Public Administration |
North American Industrial Classification System (NAICS) codes are like Standard Industrial Classification (SIC) codes and use the sector for the first two numbers. The manufacturing sector is divided into ten-digit codes while the remaining sectors only have six-digit codes.
As the earlier incident shows, a facility may be subject to certain environmental regulations depending upon the primary Standard Industrial Classification (SIC) and North American Industrial Classification System (NAICS) codes (e.g., Industrial Storm Water Permits and Toxic Release Inventory). Other reasons for knowing your Standard Industrial Classification (SIC) and North American Industrial Classification System (NAICS) code are to determine the average incident rates for your business by comparing your Total Recordable Incident Rate (TRIR) and Days Away, Recordable and Transferred (DART) to the Bureau of Labor Statistics data for similar industries. You can also look up violations by Standard Industrial Classification (SIC) code on the Occupational Safety and Health Administration (OSHA) website, which will help you identify commonly-cited safety regulations that apply to similar facilities.
When identifying applicable North American Industrial Classification System (NAICS) and Standard Industrial Classification (SIC) North American Industrial Classification System (NAICS) codes, it may be important, depending upon the applicable regulations, to read the details of the industry descriptions including the Standard Industrial Classification (SIC) code sectors and North American Industrial Classification System (NAICS) code divisions. For example, you might conduct North American Industrial Classification System (NAICS) keyword search for your product. As an example, say your company deals with widgets. You might find several North American Industrial Classification System (NAICS) codes that have widgets in the description:
- 31xxxxx
- 42xxxxx
- 44xxxxx
- 48xxxxx
Depending upon what you do with the widgets, a different code could apply as shown in the table below. That is why you need to read the details of the sectors. Sometimes it is obvious, but not as often as I would think.
| Sector | Definition | Example |
| 31-33 | Manufacturing | 31xxxx if you manufacture or produce widgets |
| 42 | Wholesale Trade | 42xxxx if you buy and sell bulk quantities of widgets |
| 44-45 | Retail Trade | 44xxxx or 45xxxx if you sell widgets at retail establishments |
| 48-49 | Transportation and Warehousing | 48xxxx or 49xxxx if you transport or warehouse widgets |
It is also important to note changes to the categories that occurred (i.e., the North American Industrial Classification System (NAICS) codes are updated every 5 years). I have assigned a 2017 North American Industrial Classification System (NAICS) code that several years later was no longer the same number in the 2022 North American Industrial Classification System (NAICS) code.
I would coordinate or at least check with my company’s other departments (e.g., tax, finance, legal) to determine if they have already assigned a Standard Industrial Classification (SIC) or North American Industrial Classification System (NAICS) code. This could save you the effort and prevent inconsistent application of the codes. If you have separate environmental and safety departments, you might need to check with that department as well.
You may have multiple North American Industrial Classification System (NAICS) and Standard Industrial Classification (SIC) codes that could apply, so you may need to calculate (e.g., based on production volume or profits) which is your primary code to determine if a particular regulation applies (e.g., the Environmental Protection Agency’s (EPA) Toxic Release Inventory (TRI) regulation). The North American Industrial Classification System (NAICS) Manual discusses how to determine an establishment’s industrial classification:
“An establishment is classified in an industry when its primary activity meets the definition for that industry. Because establishments may perform more than one activity, it is necessary to determine procedures for identifying the primary activity of the establishment. In most cases, if an establishment is engaged in more than one activity, the industry code is assigned based on the establishment’s principal product or group of products produced or distributed, or services rendered. Ideally, the principal good or service should be determined by its relative share of current production costs and capital investment at the establishment. In practice, however, it is often necessary to use other variables such as revenue, shipments, or employment as proxies for measuring significance.”[9]
Because your production and profits change from year to year, you may need to calculate your code each year.
You might run across similar-looking numbering systems depending upon the scope of your job such as Schedule B Classification System and the North American Product Classification System (NAPCS). The Schedule B Classification System is used by companies to classify their products they are exporting from the United States [10]. The North American Product Classification System (NAPCS) is like the North American Industrial Classification System (NAICS) 10-digit code system, but instead of basing it on the industry, it is based on the product[11]. The descriptions can be similar, but the numbers are different.
14.1.3 Property Ownership and Contracts
I took over an environmental management position at an organization recently divested from a Fortune 500 company. I found a list of sites, several which had question marks related to the ownership. I spent years tracking down ownership working with our legal and tax departments and interviewing long-term employees who might have information that could help.
Knowing the scope and extent of properties that you own, or lease can be important to understand your environmental liabilities. It is no wonder most of the environmental lawyers I have worked with are real estate attorneys. In the United States, environmental liability can lie with anyone who owned or used the property[12], so you may want environmental liability insurance for your divested properties.
Additionally, some contracts and/or leases may have EHS requirements you should be aware of including:
- Close-out assessments (e.g., Phase 1 Environmental Site Assessments)
- Periodic EHS audits
- Reporting of injuries, releases and spills to the site owner, lessor, or other entity.
14.2 Documents
14.2.1 Document Revision Control
One common management system requirement is to include revision numbers or dates on documents, which helps you determine if you have the most recent revision. It’s a simple concept that can be very helpful.
You may also implement document control procedures. You may have run across this concept when you get a document that has a clause in the header or footer noting that it is an uncontrolled document when printed. A good example of this is for emergency action plans or contingency plans that contain emergency contact phone numbers. Because these contacts and phone numbers can change frequently, companies with take care to control these documents so they can verify that they have updated all the printed copies.
14.2.2 Make Updates Easier
One of my first jobs out of college was as a consultant to the Environmental Protection Agency (EPA). One of my responsibilities was conducting Spill Prevention Control and Countermeasures (SPCC) inspections and even included helping develop guidance documents and training of regulators and industry. Years later when I was consulting for private-industry I had the opportunity to write my first Spill Prevention Control and Countermeasures (SPCC) plan. With my extensive experience, I naively thought I had written the perfect Spill Prevention Control and Countermeasures (SPCC) plan on my first try. It met all the regulatory requirements, but the first time the client wanted me to update that so-called perfect Spill Prevention Control and Countermeasures (SPCC) plan to reflect the addition of a new tank, I realized the error of my ways: To add the additional tank information, I had to rewrite most of and reprint all the document, which took time and cost my client money.
If information may be periodically updated (e.g., contact information), I try to put it in an appendix and simply refer to that appendix in the body of the document. The appendices are easier to swap out pages without having to reformat the document. For the Spill Prevention Control and Countermeasures (SPCC) plan, I eventually move to having a one-page summary of all the tank information (e.g., size, material of construction, fail-safe engineering, secondary containment, lighting, testing, etc.) that I would keep in an appendix. However, since the Spill Prevention Control and Countermeasures (SPCC) regulation requires you to follow the order of the regulation or include a cross reference, I would simply follow the order of the regulation in the body of the document, but in each section, I would provide a brief discussion and refer to the tank information in the appendix. This would make it easier to add a new tank since we only had to fill out the one page and have the Spill Prevention Control and Countermeasures (SPCC) recertified. I think it also made Spill Prevention Control and Countermeasures (SPCC) plan reviews easier since you could go to the tank and use that one page to check all the applicable information.
Another way to make updates easier is it have a page break after each section and number each section individually (e.g., Page 14-1 would be the first page of section 14). This way, changes only require reprinting and replacing an individual section (i.e., you are not causing the pages to be renumbered throughout the document).
Avoid duplicating information in multiple locations unless it is required. Instead, simply reference the location of the information. This prevents having to update the information multiple times and potentially miss an update.
Also, where allowed, I like to use titles and not names since personnel change, but their positions do not.
I prefer to use diagrams and illustrations instead of text where feasible. For example, I like flowcharts for emergency procedures since I feel they are simpler to follow. However, I have seen regulations that specifically require a narrative, so you may not be able to use a diagram or illustration in that situation.
Depending upon your risk tolerance, you may want to include negative declarations in your documents. For example, in an air permit application, I would specially address some regulations that do not apply but might apply to similar operations or facilities. I would do this to avoid potential delays due to confusion or applicable requirements and potential compliance issues. Of course, this makes the document longer and can dilute the message, so some clients did not want it. Another example of where I would use this is in Spill Prevention Control and Countermeasures (SPCC) Plans where I would specifically address equipment and materials that are not subject to the Spill Prevention Control and Countermeasures (SPCC) regulation (e.g., a 50-gallon hydraulic oil reservoir that is exempt since it is under 55 gallons). If inspected, this provides clarity for the inspector to know that the hydraulic oil reservoir is less than 55 gallons in capacity, which is helpful since it is not always apparent.
14.2.3 Content Guides
I had a client who liked one of the Environmental Protection Agency’s (EPA) sample documents because it included the section of the applicable regulation and/or additional guidance above each section as illustrated below (i.e., the italicized text).
7.1 Floodplain Procedures
40 Code of Federal Regulations (CFR) 270.14(b)(11)(iv) Demonstration that Facility is Designed, Constructed, Operated and Maintained to Prevent Washout, or Detailed Description of Procedures to be Followed to Remove Hazardous Waste to Safety before Facility is Flooded.
The TSDF is not located in a flood zone. Appendix J contains the Flood Insurance Rate Map (FIRM) for the area around the facility.
This regulatory language (i.e., italicized text above) serves as a checklist and guide when writing and updating the document. It also serves as a great training guide for new employees who may not be experienced with the document regulation or requirement. I thought this was a great idea, so I added it to his document and started doing that with other documents.
A drawback to adding this information is it makes the documents longer and more complicated. However, I discovered that in Microsoft® Word, you can change the regulatory text style to ‘hidden’. You can still view and print the document with the hidden text showing, but you have the option of hiding it for both printing and viewing on a computer.
14.3 Keep It Simple and Focus on Key Items
14.3.1 Requirements Documents
If you have ever read an air construction or operating permit, it can be full of information that may seem superfluous. I found it frustrating that some air permits had requirements that would state that you are required to comply with the Environmental Protection Agency’s Chemical Accident Prevention Program (CAPP) and Ozone Depleting Chemicals (ODC) regulations if they apply. You are required to comply with those regulations if they apply anyway, so I do not know why the regulatory agency added that to the air permit. The air quality regulations spell out what must be included in an air permit so the state regulatory agency may not have any latitude[13]. As an EHS professional I was used to reading and interpretating the air permits, but I am reluctant to hand that off to a plant manager or other non-EHS person. I do not want to dilute the message: the air permit contains key information that they need to know, but they may have difficulty discerning the important aspects. That is why I started creating what I referred to as ‘requirements documents”. I would boil down the contents of an air permit, or other EHS requirement, into just the key items that they are responsible. The key items would vary depending upon the intended audience’s responsibility, but the general topics I would include are:
- Inspections: Checks on operations, equipment, control devices, etc.
- Exercises: Table-top or actual scenarios where you walk through what you would do in an emergency
- Operations: What are the operating limits or requirements such as running a control device or not exceeding a permit-limited throughput
- Recordkeeping: Documentation required to be made and for how long you must keep it (i.e., record retention timeframe)
14.3.2 Executive Correspondence
“Perfection is achieved, not when there is nothing more to add, but when there is nothing left to take away.”
Antoine de Saint-Exupery
As an engineer, I typically want to provide extensive and detailed information in my communications. It took me a while to learn that this is not always the best method to communicate information especially when dealing with leaders and executives. These groups often do not have a lot of time to read a long and possibly technical e-mail, letter, or memorandum. I also figured out that providing exhaustive communication where you are backing up all your conclusions can come across as unsecure: You are not certain if they will believe you or take your word about the issue. I started keeping my communications as simple as possible and left room for them to ask questions and found this more effective. If they had questions, this allowed me the opportunity to fill in additional information.
I also find it works best if you leave out EHS argot and acronyms and, if possible, use context and language that they understand. For example, instead of talking about pollutant emissions, discuss production levels associated with those emissions. I also like to discuss monetary impacts where feasible since that language is universal in the business world.
14.3.3 Training
Chapter 20 contains additional information on training, but I wanted to briefly discuss the importance of keeping training simple and focusing on key topics. I have done a lot of EHS training and as I became more knowledgeable on a subject, I would be tempted to provide more and more details. It felt good to show off all this knowledge, but that may not always be what is in the best interest of the attendees. You can boil down some EHS training into some simple and crucial concepts. I have taught confined space training innumerable times and can provide detailed case studies and rant on and on, but at the end of the day, I need to get across a few key concepts:
- You need to be able to identify a confined space
- You need to know that entering a confined space without proper precautions can kill you
Although both concepts have significant details that the students need to understand, if they leave without knowing these two key concepts, it could cost them their life. Therefore, I feel it is important to identify and make sure your training hits the key concepts and does not dilute the message with details.
14.4 References
[1] 29 Code of Federal Regulations (CFR) 1910.1200(e)(1)(i)
[2] 29 Code of Federal Regulations (CFR) 1910.1200(b)(6)
[3] “Standard Industrial Classification (SIC) Codes” Library of Congress Research Guides website accessed February 12, 2022 (https://guides.loc.gov/industry-research/classification-sic)
[4] “Standard Industrial Classification Code (SIC) Manual”, Occupational Safety and Health Administration (OSHA) website (https://www.osha.gov/data/sic-manual) accessed February 16, 2022
[5] Ibid
[6] “Current Employment Statistics – CES (National) Industry Classification Overview” U.S. Bureau of Labor Statistics website accessed February 12, 2022 (https://www.bls.gov/ces/naics/home.htm#1)
[7] “North American Industrial Classification System” U.S. Census Bureau website (https://www.census.gov/naics/) accessed February 16, 2022
[8] Ibid
[9] “North American Industry Classification System” United States Executive Office Of The President, Office Of Management And Budget, 2022 page 19
[10] “Schedule B Codes, North American Industrial Classification System (NAICS) and NAPCS: The Similarities and Differences” U.S. Census Bureau website September 19 2018 (https://www.census.gov/newsroom/blogs/global-reach/2018/09/schedule_b_codesna.html)
[11] Ibid
[12] “Environmental Liability” Corporate Finance Institute website accessed February 12, 2022 (https://corporatefinanceinstitute.com/resources/knowledge/other/environmental-liability/#:~:text=Environmental%20liability%20refers%20to%20the%20potential%20environmental%20costs,and%20all%20liabilities%20associated%20with%20the%20asset%20post-acquisition.)
[13] 40 Code of Federal Regulations (CFR) 70.6 Permit Content
I am always open to your thoughts and suggestions, but I cannot promise I will respond to all comments. You can contact me using the button below.