Audit, Compliance and Risk Blog

Last August, President Obama issued an Executive Order (EO 13650) to agencies with responsibilities for chemical facility safety (I blogged about it here). The EO provides for a Chemical Facility Safety and Security Working Group, co-chaired by the Department of Homeland Security (DHS, which administers the Chemical Facility Anti-Terrorism Standards (CFATS) program), Environmental Protection Agency (EPA, which administers the Accidental Release Prevention (ARP) program under Clean Air Act) and Department of Labor’s Occupational Safety and Health Administration (OSHA, which administers Chemical Process Safety Management (PSM) Standard), and also including the Departments of Transportation, Justice (DOJ) and Agriculture. It directs them to work together to improve their operational coordination, and to consult with other security and environmental agencies at all levels of government, as well as the White House.

Many organizations have mailrooms that receive posted mail, and packages shipped using parcel and express services. In some of these organizations, mailrooms also serve as the entry point for deliveries of goods and products by other venders. If your organization has a mailroom, it offers entry into your workplace for potentially dangerous materials, including those sent without harmful intent but also without appropriate packaging, and those sent in order to harm individuals or the organization.

Boards of directors are responsible for governing their corporations. Many boards divide their work among committees that are assigned specific tasks. Standard committees include an “audit committee,” with responsibilities that may include:

On June 2, the U.S. Environmental Protection Agency (EPA) proposed a new Clean Power Plan, in which the agency will apply its authority under the Clean Air Act (CAA) to dramatically reduce greenhouse gas (GHG) emissions from fossil fuel-fired electric generating units (EGUs). EPA calculates that these power plants account for roughly one-third of all domestic GHG emissions in the US. Advocates on opposite sides of this controversial proposal claim this Plan would either become the most important US initiative to address climate change, and/or would crash economies through much of the US heartland by strangling coal-fired electricity production. Let’s hope we end up closer to the optimistic scenario!

It's nearly time to start worrying that outdoor work in the summer sun will lead to heat illness. The federal Occupational Safety and Health Administration (OSHA) provides some guidance to employers and their workers, while the Sun Belt California's Division of Occupational Safety and Health (Cal/OSHA) administers detailed regulatory requirements promulgated under state law. If you have outdoor workers in California you must comply with the following requirements, while if you're anywhere else you should at least consider them.

Corporate directors and chief executive officers (CEOs) benefit from variety of legal rights, set forth in state corporation codes, company articles of incorporation and bylaws, and in their individual employment contracts. In addition, they may be able to access additional “equitable rights” to fair dealing, based on common law principals. But as a dethroned CEO just learned from the Delaware Supreme Court, these equitable rights can be limited by the equitable rights of other parties.

On April 29 the US Supreme Court reversed a lower court decision, reinstating US Environmental Protection Agency (EPA) rules requiring states to control emissions of air pollutants that contaminate downwind states (EPA v. EME Homer City Generation, LP). The Cross-State Air Pollution Rule (CASPR, or the “Transport Rule”) implements “Good Neighbor” provisions in the Clean Air Act (CAA) designed to ensure that upwind states’ emissions don’t prevent a downwind state from meeting air quality standards. This ruling frees EPA to implement rules requiring tighter emission controls on pollutant sources in upwind states.

On April 15, the European Parliament adopted a proposal to expand public company requirements to report accounting information, adding social responsibility and diversity reporting for companies that meet specified employee and revenue thresholds. The new directive provides targeted companies with flexibility to meet these rules by meeting national or voluntary standards that require at least equivalent reporting. To become law, the Commission's proposal must also be adopted by the European Union (EU) Member States in the Council (which votes by qualified majority); this is anticipated within the coming weeks.

On April 11, the D.C. Circuit Court of Appeals denied a petition by SeaWorld, which was seeking to overturn a citation and penalty issued by the Occupational Safety and Health Administration (OSHA) after a killer whale mauled and drowned one of the park’s trainers during a show (Seaworld of Florida, LLC v. Perez). OSHA had cited SeaWorld for violating the OSH Act’s Employer’s General Duty Clause, by failing to provide a workplace free of “free from recognized hazards that are causing or are likely to cause death or serious physical harm.” This decision reminds us that this often-neglected element of OSH compliance serves important worker safety goals.