Audit, Compliance and Risk Blog

California Revises Wastewater Treatment Plant Operator Certification Rules

The latest State Water Resources Control Board (SWRCB) regulatory tweaks broaden coverage but also give wastewater treatment plant owners some welcome wiggle room. Effective April 1, 2013, the SWRCB has revised its regulations regarding wastewater treatment plant classification, operator certification, and contractor registration. The rules have been expanded to cover privately owned wastewater treatment plants. However, they also establish a provisional operator certification. This means owners of Class I wastewater treatment plants who are finding it hard to recruit certified operators may employ provisional operators while conducting their search. In addition, the definition of wastewater treatment plant has been revised to clearly state that water recycling treatment plants are included within the definition. Numerous other key changes affecting California CCR compliance have been made to these regulations.

On May 22, 2013, the Financial Accounting Foundation (FAF) issued a post-implementation review (PIR) report on the accounting rule that the Financial Accounting Standards Board (FASB) prescribes for business combination accounting—specifically, FASB Statement No. 141 (Revised 2007), Business Combinations, now codified into FASB Codification Topic 805. In general, the report found that Statement 141(R) improved rules for the purchase method of accounting for business combinations but that problems remain, particularly in relation to fair value measurements. The PIR report also acknowledges unexpected compliance costs for companies that have applied the requirements in Statement 141(R).

As you look around your office, are there any summer interns working away?  And if so, are they being paid for their efforts, are they receiving academic credits, or are they working to build their resumes, portfolios and connections?

EPA Superfund Activity

In a rulemaking published in the May 24, 2013 Federal Register, EPA added nine new Superfund Sites to their National Priorities Lists (NPL), bringing to 1,320 the total number of uncontrolled hazardous waste sites now listed on the NPL. Superfund, the more common name for CERCLA, was promulgated in 1980s to identify and clean up hazardous wastes sites and to identify the parties responsible for causing the contamination with the intent that they bear the expense of remediation. The NPL started with 400 sites, and over four decades later, while 365 NPL sites have been delisted and 75 partial deletions have occurred at 58 additional sites, EPA continues to identify sites requiring remediation to eliminate the risks to human health and the environment and Superfund is still being funded at over $1.1 billion annually. 

Traditionally, industrial facilities have used fossil fuels such as coal, oil, and natural gas as their main source of energy. Over the years, however, facilities have sought to replace some or all of their fossil fuel with less expensive and more efficient alternative fuels from secondary materials. The Environmental Protection Agency (EPA) has regulated the combustion of such wastes under the Resource Conservation and Recovery Act (RCRA). Under RCRA, some of these secondary materials are classified as ''hazardous wastes,'' while others are referred to as ''non-hazardous secondary materials.'' Facilities that combust ''solid waste'' as defined by EPA under RCRA must be regulated by emission standards issued by EPA under section 129 of the Clean Air Act (CAA).

Persons over 40 years old form a protected class under the Age Discrimination in Employment Act (ADEA) of 1967. Although separate from Title VII of the Civil Rights Act of 1964, ADEA provides protections similar to those preventing discrimination based on sex, race and religion. It applies to each employer “engaged in commerce who has twenty or more employees for each working day in each of twenty or more calendar weeks in the current or preceding calendar year.” It is administered by the Equal Employment Opportunity Commission (EEOC), which promulgates regulations and guidelines similar to those for Title VII and the Americans with Disabilities Act.

PSD Rules Rescinded In Part

Recent court decisions rescind portions of EPA Clean Air Act rules governing Prevention of Serious Deterioration (PSD) and renewable fuels. For example, in October 2010, EPA adopted rules allowing for significant impact levels (SILs) and significant monitoring concentrations (SMCs) for sources of PM-2.5. However, in January of this year the D.C. Circuit upheld most elements of the 2012 standards, but vacated and remanded provisions establishing and applying projections of cellulosic biofuel use. American Petroleum Institute v. EPA, ___ F.3d ___ (D.C. Cir. 2013).

Organizations with a well-established ISO 14001 Environmental Management System (EMS) are discovering a new advantage as the issue of “social responsibility” becomes more widespread throughout business communities. EMS managers are finding that techniques and methodology from their EMS can be used to identify and prioritize social responsibility issues and efficiently integrate them into their organization. Furthermore, managers building an EMS system are able to develop it in concert with social responsibility initiatives.

On May 28 Walmart bundled guilty pleas in a number of pending federal cases alleging environmental compliance violations at some of the company’s 4600+ stores in the U.S.  These arose because Walmart had not implemented a corporate hazardous waste management program until January 2006, leaving locations to manage—or mismanage—such wastes.

As mentioned in my September 2012 blog article, “Possible New Lease Accounting Rule—An Update,” a new proposal for lease accounting was likely to “hit the streets” sometime in 2013. Sure enough, a new proposal was issued on May 16, 2013. This proposal was issued jointly by the U.S. accounting standard-setter, the Financial Accounting Standards Board (FASB), and the International Accounting Standards Board (IASB), which issues accounting standards that are used by many companies in countries outside the United States. The two boards are striving to conform their accounting principles and this lease project is one example of that effort.