The Challenge of Compliance
By Robert Johnson, President, ESS
An Environmental Crisis Unifies Nations
Global environmental concern about ozone depletion caused governments throughout the world to take strong, immediate actions to prevent further damage. The sweeping new laws and regulations produced through this international cooperation is unprecedented in history.
The United States takes Action
In the United States, the Clean Air Act Amendments of 1990, and subsequent EPA regulations force extensive, rapid changes are made to meet compliance requirements. They impact virtually every business, organization, and ultimately, consumer through higher prices on goods and services. Previously safe and abundant refrigerants used in a multitude of everyday applications have in a few short years become federally controlled substances with civil and criminal penalties for violations.
The Impact and Response of Industry
In industries and organization's involved with air conditioning and refrigeration equipment, including those using it in their buildings for cooling and other processes, the most significant impacts can be categorized as:
Finding Substitute Refrigerants
First, enormous investments of human effort and money have been required for research and development to identify, test, and bring to market large volumes substitute refrigerants. Manufacturers of equipment that use refrigerants have had to design new equipment, redesign existing equipment, and retool factories. There has been significant progress made in this area. Substitute refrigerants now appear to be sufficient to meet demand, and equipment manufacturers are producing new equipment based on the substitutes, as well as retrofit packages for existing equipment.
Addressing Existing Equipment Issues
Secondly, significant capital outlays have to be expended by businesses and other organizations to address existing equipment issues. Building owners, managers, and facilities professionals have to make tough decisions and expenditures on contain, convert, or replace options. Many organizations have addressed this issue head on and taken the required actions to assure their facilities will not be impacted by any future CFC refrigerant shortages. Other organization's have made minimal efforts, or have done nothing at all, and are at risk of future business interruptions refrigerant from shortages.
Facing the New Compliance Challenge
Third is the investment of capital and training required within affected organization's to develop and implement an EPA refrigerant regulations compliance program. This issue presents a challenge as significant, if not more so, than the refrigerant replacement and mechanical system issues discussed. This is because it requires changes to individual human and organizational behaviors, work routines, and attitudes to insure compliance with the new regulations. Existing procedures, work practices, and habits developed over many years working with unregulated refrigerants must be modified. New compliance monitoring processes, including internal checks and/or audits need to be implemented.
Non Compliance is Not an Option
The consequences for non compliance are severe. Violations can result in criminal enforcement actions including up to five years imprisonment. In addition, civil enforcement actions are $27,500 per day for violations. In many organizations, the costs related to negative public relations incurred from media sensationalism over environmental violations often dwarf the fines and penalties incurred.
Road Blocks To Successful Compliance
Root Causes of Environmental Non-Compliance
The EPA/CMA Root Cause Analysis Project final report published in May 1999 identified Root Cause and Contributing Factors of environmental regulations non-compliance. The following factors were among the root causes or contributing causes:
- Environmental aspects of facility process and operations not identified by management
- Unclear Procedures
- Contradictory interpretation of state and/or federal regulations
- Unavailability of written procedures
- Facility unaware of the applicability of a regulation
- Compliance monitoring-specifically, a lack of or insufficient checks or audits
2 primary contributing causes of O&M Non-Compliance were identified as:
- Management support or guidance not provided
- Unclear definitions of roles and responsibilities
Refrigerant Compliance Issues
Confusion about new Work Processes
Confusion is common in organization's developing and implementing environmental regulations compliance in a previously unregulated area. Organizations must revise specific work processes to incorporate permanent and ongoing compliance requirements. This can be especially difficult in large organizations with multiple departments and/or contract maintenance involved with refrigerants. Because the regulations are relatively new, existing compliance information is not as abundant compared to traditional environmental issues. Additional research is often required to develop specific policies and procedures. Poorly designed or no defined organizational policies and procedures and result in non-compliance.
Confusion over Responsibility
Another common area of confusion arises with regards to assignment of responsibilities for development and management of the compliance program. Because refrigerant has typically been a facility operations issue, not an environmental issue, there are often responsibility crossover issues, egos, and structural process issues to overcome. Unclear definitions of roles and responsibilities from the management level to the employees handling refrigerants can result in non-compliance. Employee's need to know who is accountable for various issues, what is expected of them, and who to turn to for help.
Inexperience in Regulated Industry
In many cases affected individuals working with refrigerants within organizations have little or no past experience dealing with federally regulated substances. The regulations and subsequent EPA requirements are tough, and the consequences for non compliance are severe. Many do not understand the magnitude of the ramifications they and their organization face for violations. Unavailability of written procedures, guidance, and management support can result in non-compliance.
The Complacency Factor
Another challenge faced by many organizations is an attitude of complacency toward these regulations that may exist among certain individuals within the organization. We have found this circumstance in more than one organization. This is an extremely dangerous situation from a compliance standpoint, since people tend to focus their efforts on what they believe are priorities. This attitude probably has it's roots in one or more of the following. The initial (and in certain forums still ongoing), controversy over ozone depletion itself, the newness of the regulations, unfamiliarity with regulated industry, resentment toward the regulations, a seeming lack of interest or commitment from senior level management, a lack of education or information on specific requirements and penalties associated with non compliance. Whatever the reason, these individuals must give these federal regulations the respect and priority they require, or they will become a roadblock to successful compliance.
Steps to Successful Compliance
Root Cause Analysis Project
The EPA/CMA Root Cause Analysis Project report identified that corporate polices, goals, targets, and guidelines, have a strong influence on environmental performance. Recommendations for successful environmental compliance included: Clearly defined commitment on the part of management, tools developed by the facility and corporate staff. High levels of awareness and commitment, accurate standard operating procedures that employees can understand, and training employees. A comprehensive, well integrated, and clearly articulated would play a play a large role in improving compliance
Develop a Refrigerant Compliance Plan
Producing an organization specific refrigerant management and regulations compliance program is the first step to effective compliance. This should describe how EPA regulations and requirements will be integrated into the organizations existing work processes, using flow charts and work statements for illustration as required. It should define the organization's specific policies and procedures for refrigerant handling, from purchase through final disposal, including establishing uniform record keeping and reporting methods.
Conduct Compliance Training
A "Roll Out" implementation training process should be conducted to insure everyone affected receives a copy of the compliance program and any other information they need to insure success. This is also a good time to express management's commitment to organizational compliance. After the training many organization's have employees sign a statement of understanding that compliance to the program and is a condition of their employment.
Make Compliance Permanent and Ongoing
In order to insure ongoing compliance, regularly scheduled compliance update training, and self audit, or surveys should be conducted. (Minimum of once per year) These can be performed using internal resources, or contracted to professional consultants specializing in this refrigerant regulations compliance management. This will also reinforce the importance of compliance and further demonstrate the organizations "intent to comply". A process needs to be implemented to insure an ongoing stream of any new compliance updates, changes, and information is collected and distributed to affected employees. This is also necessary to modify the program as required, to keep it current and accurate.
Management Commitment is Vital
Senior management's visible commitment will have a significant impact on the success of the refrigerant regulations Compliance Program. Congress recognized this when they designated "senior level management" as responsible in criminal enforcement resulting from violations in the 1990 CAA amendments. This responsibility "cannot" be delegated away. Management's defensible position can be strengthened however, by demonstrating intent to comply.
Ten Basics Steps To Start Compliance
Have you Completed these 10 Basic Steps?
- Form a Refrigerant Compliance Management Team (Corporate and/or Site Level).
- Designate a Corporate Refrigerant Compliance Manager and site Refrigerant Compliance Managers
- Develop a compliance checklist and audit site performance.
- Determine actions required based on audit results.
- Develop written procedures and policies for refrigerants.
- Standardize on an EPA record keeping system.
- Inventory all refrigerant containing equipment.
- Determine equipment total charge. (under 50 pounds, over 5O-Comfort or Process)
- Implement all procedures and train all affected personnel.
- Follow-up with regularly scheduled audits/surveys.
Get Support When and Where you Need It
ESS Compliance Tools
ESS can provide you with examples of the specific policies and procedures discussed above, as well as other essential information as part of our Refrigerant Compliance Management training seminars. Classes are held around the US, contact us if you are interested in attending. We also conduct these onsite for organization's desiring a more personal approach, integrating specific organizational policies and procedures, and/or wanting to jump-start their compliance program.
Test Your Existing Program
Could Your Organization Pass an EPA Title VI Refrigerant Regulations Inspection?
See how your current Refrigerant Compliance Program stacks up to your peers with the "Best Practices" in Refrigerant Compliance Management Checklist.
