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Fall Occupational Safety & Health Committee
Grand Rapids, MI October 6-9, 2013
Welcome Daniel J. Malone- Senior Vice President of Distribution and
Customer Operations, Consumers Energy Company
Kenneth R. Frazier, Chair, EEI Occupational Safety &Health
Committee, American Electric Power
Safety Beyond PPE
Kina Repp, Safety Done Right
Indifference Procrastination Anger Lack of training
Tired
Lack of Knowledge
Lack of Focus Non-conformist
Complacency Short cuts Not using PPE Attitude
www.kinarepp.com
Break / Exhibits
The Role of Worker Safety and Health in Sustainability: Current Challenges and
Opportunities
Tom Cecich, CSP, CIH,Center for Safety & Health Sustainability
WHY SUSTAINABILITY?
Sustainability
The Brundtland Commission of the United Nations on March 20, 1987: “sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”
Sustainability is generally considered to be the combination of: (1) Economic (2) Environmental (3) Social principles that when balanced lead to a productive future.
Sustainability May Also Be Viewed as the Four “P’s”
Universe of ESG Issues and Opportunities
Source: Hauser Center for Nonprofit Organizations at Harvard University
Source: Hauser Center for Nonprofit Studies, Harvard University
Importance of Sustainability
Importance of Sustainability
To corporations: • 93% of global CEOs surveyed said that they felt
sustainability issues are critical to their companies’ future success.
• 96% believe that sustainability must be fully integrated into a company’s strategy and operations (up from 72% in 2007).
• Over 3,000 corporations participated in sustainability reporting or reporting for similar issues in 2008 (up from 26 corporations in 1992).
• Of the 250 largest global companies, 95 percent now report on their behavior on key societal issues – a 14 percent increase since 2008
Importance of Sustainability
To investors:
• Socially Responsible Investing, or SRI, now accounts for almost $4 trillion of the $25.1 trillion, or 16% of the total invested in the American marketplace.
• Nearly 50 socially responsible investing (SRI) indices exist.
• There is a movement to include corporate social responsibility reporting as part of integrated reporting requirements.
TRENDS IN REPORTING
Existing Sustainability Indexes (from rating organizations)
• The Global Reporting Initiative • Dow Jones Sustainability Index • The Pacific Sustainability Index • FTSE4Good Index • Dozens of Socially Responsible Investment Funds • Financial Analysis and Intelligence Firms
– Bloomberg – Thomson-Reuters
• Sustainability Accounting Standards Board (SASB) • Wal-Mart Supplier Sustainability Assessment
Why Safety and Health as Part of Sustainability?
• 2.3 million people killed by work accidents and disease
• 337 million work accidents
• 6,300 deaths per day (one every 15 seconds)
• 160 million people with occupational disease
• around 4% of world GDP = occupational accidents and diseases
Source: ILO
Why Safety and Health as Part of Sustainability?
NY Times – 9/12/12
AP – 4/25/2013
OHS Sustainability Has Important Business Drivers
High Profile Tragedies Have Highlighted the Importance of Safety and Health in Sustainability
The Big Unknown – Occupational Illnesses -Raleigh News and Observer 4/5/2013
NIOSH Science Blog – June 13, 2011
• Safety Has Not Been Asked to Prom
– “Environmental stewardship and occupational safety share considerable overlap. Both are key sustainability issues, yet the green movement has outstripped workplace safety. What can OSH learn from green?”
The Status of Safety and Health in Sustainability
• No agreement on the key performance indicators to measure sustainable safety and health performance
• Reporting on safety and health performance is not comprehensive
• Most corporations include safety as part of their annual corporate social responsibility or sustainability reports, but the focus tends to be on lagging indicators
• The scope of the questions on many of the widely recognized global indices is limited, terms are undefined, and the focus is on results rather than process
• There is no widely accepted definition of “safety and health sustainability”
The Way forward….
• The Center for Safety and Health Sustainability (CSHS) is a global collaborative effort among the American Society of Safety Engineers (ASSE), the American Industrial Hygiene Association (AIHA), and the Institution of Occupational Safety and Health (IOSH)
– A 501(c)3 not-for-profit organization launched in 2011
– Represents 100,000 workplace safety and health professionals worldwide
CSHS Vision
For all organizations to recognize their responsibility to ensure that the protection of human life and the safety, health, and well-being of workers, customers, and neighboring communities is among the primary considerations in any business practices, operations, or development.
CSHS Goals
• Goals – To provide a strong voice and comprehensive leadership for
safety and health in shaping sustainability policies
– To educate the business community on the importance of safety as part of good corporate governance and corporate social responsibility/sustainability
– To provide new insights into the measurement, management, and impact of safety and health sustainability
– To be a recognized thought leader for sustainability and corporate social responsibility
CSHS Webpage – www.CenterSHS.org
New Research – February 2013
Examines the occupational health and safety practices of the world’s 100 top rated sustainable companies
(as reported by the Corporate Knight’s 2011 Global 100 Most Sustainable Corporations in the World)
Research Methodology
• Selected a recognized rating organization that publishes an annual ranking of the top 100 sustainable organizations – Corporate Knights (CK)
• Examined publicly facing reports of all one hundred organizations for statements about OHS performance
• Specifically evaluated reporting on GRI 3.1 OHS indicators
• Evaluated reporting on proposed CSHS GRI 4.0 OHS indicators
• Assembled conclusions from reporting data
• Not intended to criticize individual companies or CK
Research Findings
• High variability in degree of reporting and terms making comparison across organizations difficult
• Very low (<10%) reporting to GRI indicators • Reporting for I&I rates relatively high (75%) but
formulas widely varying • Reporting very low for contract/temporary
workers • No organization reported on fatal occupational
diseases • High number of fatalities (>10) reported by 5
organizations. One reported 49 fatalities in past year
So, what’s next?
So, what’s next? (and who all is interested in this?)
So, what’s next? (and who all is interested in this?)
aka – What are the external drivers?
So, what’s next? Who are the external drivers?
• Global Reporting Initiative (GRI)
• Integrated Reporting
– SASB: Sustainability Accounting Standards Board
– IIRC: International Integrated Reporting Council
• GISR: Global Initiative for Sustainability Ratings
• Center for Safety and Health Sustainability
Global Reporting Initiative (GRI)
Global Reporting Initiative (GRI)
• A network-based organization, draws participants from global business, civil society, labor, academic and professional institutions with the core goal of mainstreaming the disclosure on environmental, social and governance performance.
• GRI’s Sustainability Reporting Guidelines have gained
widespread adoption as the de facto global standard for CSR reporting
• 80 percent of G250 are aligning to GRI standards
• 45% increase in reporting in North America in past year
The GRI Guidelines
Environmental
• EN 3 - Direct energy consumption by primary energy source
Labor
• LA 7 - Rates of injury, occupational diseases, lost days and absenteeism, and number of work related fatalities by region.
Human Rights
• HR 4 - Total number of incidents of discrimination and actions taken
Product Responsibility
• PR 6 - Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, ad sponsorship.
Economic
• EC 4 – Significant financial assistance received from government.
American GRI reporters
GRI Sector Leaders:
GRI 3.1 Indicators
Integrated Reporting
Combining Audited Financial Reports with Audited Sustainability Reports
Combine Financial and Sustainability Reporting
Integrated Reporting
• SASB: Sustainability Accounting Standards Board
• IIRC: International Integrated Reporting Council
The Sarbanes-Oxley of Sustainability Reporting?
Global Initiative for Sustainability Ratings (GISR)
• Billions of dollars of capital flow are are based on what 100+ raters decide • How sustainability ratings are determined is neither transparent or comparable
DJSI Occupational Safety and Health Ratings
Beverage
Beverage
Oil and Gas
Utility
Consumer Products
CRO Selects Top 100 DJSI Selects Top 10% Newsweek rates 500 Companies
Wide Variation in Sustainability Ratings
CENTER FOR SAFETY AND HEALTH SUSTAINABILITY
CSHS GRI INITIATIVE
Influence the next generation of occupational health and safety
indicators to be meaningful and more accurately reflect an organization’s commitment to responsible OHS
performance
CSHS Proposed Indicators
1. Lost-time injury and illness incidence rate, lost-time injury and illness severity rate, and number of fatalities (all employees – 5 year period)
– Current reporting practices* – employees
• Lost time Injury Frequency Rate
– 57%
• Occupational Injury and Illness Frequency Rate
– 51%
• Fatalities
– 45%
*sampling of 65 companies reporting sustainability performance from the “Best in Social Responsibility,” “Global 100 most sustainable corporations,” “Super 50 from Forbes”
CSHS Proposed Indicators
2. Lost-time injury and illness incidence rate, lost-time injury and illness severity rate, and number of fatalities (all contractors – 5 year period)
– Current reporting practices* – contractors
• Lost time Injury Frequency Rate
– 28%
• Occupational Injury and Illness Frequency Rate
– 26%
• Fatalities
– 29%
*sampling of 65 companies reporting sustainability performance from the “Best in Social Responsibility,” “Global 100 most sustainable corporations,” “Super 50 from Forbes”
CSHS Proposed Indicators
3. % of owned or leased work locations that have implemented an occupational safety health management system that meets recognized standards – Current reporting practices*
• Organization has implemented an OSH program that meets recognized standards – 48%
• OSH program covers all of the organization’s business units, operations, facilities, subsidiaries, contractors, and suppliers – 32%
*sampling of 65 companies reporting sustainability performance from the “Best in Social Responsibility,” “Global 100 most sustainable corporations,” “Super 50 from Forbes”
CSHS Proposed Indicators
4. % of owned or leased work locations that have had their occupational safety health management systems audited by an independent third-party
– Current reporting practices*
• Processes are in place to verify compliance with the OSH program – 45%
*sampling of 65 companies reporting sustainability performance from the “Best in Social Responsibility,” “Global 100 most sustainable corporations,” “Super 50 from Forbes”
CSHS Proposed Indicators
5. % of direct or first tier suppliers’ facilities in developing countries that were audited for compliance with safety and health standards
• Current reporting practices* – Policy/Code (or other relevant documentation)
» 54%
– Communication of policy/code to suppliers or some monitoring of supply chain
» 49%
*sampling of 65 companies reporting sustainability performance from the “Best in Social Responsibility,” “Global 100 most sustainable corporations,” “Super 50 from Forbes”
MOVING FROM OHS INDICATORS TO AN OHS REPORTING
FRAMEWORK
(OR OHS SUSTAINABILITY PERFORMANCE STANDARDS)
Essential Elements of Safety and Health Sustainability
• Values and Beliefs – Safety and Health Commitment – Codes of Business Conduct
• Operational Excellence – Integrated and Effective Safety and Health Management System – Professional Safety and Health Competencies – Worker Engagement in Safety and Health
• Oversight and Transparency – Executive Leadership Oversight of Safety and Health – Transparent Reporting of Key Safety and Health Performance
Indicators
Lunch / Exhibits
What’s New in Equipment? Moderator: Joe O’Connor, Chair, Manufacturers
Subcommittee, In-Tec, Inc.
• Buckingham Manufacturing • Capital Safety • DuPont • MDI Traffic Control Products • Vivid Learning Systems
Washington Update
James G. Gartland, CIH, CSP, CHMM Duke Energy
IH Regulatory Agenda Issues / Silica Proposed Rule Overview
IH Agenda Items of Interest
Final rules
o Confined Spaces in Construction (12/13)
o Hearing Protector Labeling (EPA) (12/13)
o Exposure to Radiofrequency Electromagnetic Fields (Unknown)
o Musculoskeletal Disorder Column - OSHA 300 (Unknown)
IH Agenda Items of Interest
Proposed rules
o Beryllium (10/13)
o Injury/Illness Prevention Program (01/14)
o Lead: Renovation, Repair and Painting Program for Public and Commercial Buildings (07/15)
o Clarification of Employer's Obligation to Make and Maintain Accurate Records of Work-Related Injuries and Illnesses (11/13) (NEW)
IH Agenda Items of Interest
Small Business Review
o Infectious Diseases (10/13)
Request for Information
o Process Safety Management (10/13) (NEW)
o Review/Lookback for OSHA Chemical Standards (10/13)
IH Agenda Items of Interest
Next Action TBD
o Bloodborne Pathogens Regulatory Review (10/13)
o Lead Paint: Bridges and Structures; Training, Accreditation, and Certification Lead MAP (Possible Proposed Rule – Unknown Date)
Crystalline Silica Proposed Rule
Applies to ‘respirable crystalline silica’
Respirable – Small particles that can enter the deep part of lung
Crystalline silica – Applies only to crystalline form.
Similar in design to other substance specific standards (e.g. hexavalent chromium, lead, arsenic)
Permissible Exposure Limit (PEL) 8-hr TWA = 50 ug/m3 All aspects of standard are triggered when exceeded
Action Level (AL) 8-hr TWA = 25 ug/m3 Only additional periodic monitoring is triggered when exceeded
Crystalline Silica Proposed Rule
Perform initial exposure assessment
Re-sampling based on exposure level
Medical surveillance (when PEL exceeded > 30 days per year)
Established of regulated areas where PEL exceeded
Engineering controls (e.g. silica dust ventilation, wetting, etc)
Respirator usage
Training
For certain activities in construction/demolition (e.g. jack hammering, using heavy earth moving equipment )
Established specific controls that can be implemented without going through air monitoring.
EEI Silica Working Group
Regulatory Review Sub-group
James Gartland – Duke Energy (Chair)
Dee Ward – Southern Company
Doug Jenkin – Portland General Electric
Data Analysis Sub-group
Michael Meade – AEP (Chair)
David Friedman – Luminant
Lynn Wipf – Westar Energy
Doug Mills – TVA
Garry Hatcher - AEP
Data Analysis Preliminary Impact
Preliminary review of sampling data from 6 EEI companies shows:
Exceeds PEL in
Coal handling
Cleanup
Dozer operation
Rail car unloading
Coal sampling
Flyash related operations
Hopper repair
Precipitator/baghouse maintenance and operational rounds
Ductwork maintenance
Data Analysis Preliminary Impact
Preliminary review of sampling data from 6 EEI companies shows:
Exceeds PEL in
Concrete disturbance/demolition
Chipping guns, jackhammers
Refractory repairs/removal
Selected rock/soil disturbance operations
Landfill construction
Drilling bedrock
Data Analysis Further Actions
Areas with clear overexposure
Areas exceeding AL
Samples with Detection Limit > AL or PEL
Invalid samples – Determine improvements
Areas with clear exemption based on samples
Must have controls clearly specified
Opportunities for use of objective data provisions
Data gaps - areas needing more sample data
Regulatory Review Preliminary Issues Identified
General industry vs. construction
When each applies
No percent cutoff provided
Clarification needed on
Re-sampling alternative
Appears to allow just-in-time vs. 3 month, 6 month and annual
Access control plan as regulated area alternative
OSHA says it is an alternative, but sounds like a regulated area
When training applies
Everyone or is there a trigger?
What OSHA accepts as ‘objective data’
Regulatory Review Further Actions
Review/answer 87 specific questions OSHA raised
Create cost estimate of regulations
OSHA evaluated costs for bathroom fixture manufacturing, but forgot us again !!!
Identify issues on regulation provisions General industry and Construction - Specific focus on Table 1
Review of Health Effects & Risk Assessment Background document
Any comments to be made on accuracy/relevance
Review of Preliminary Economic Analysis (PEA)
Determine if any of PEA can used for creating cost analysis
Questions
NFPA 70E Update
Michael J. Madrigal, Kansas City Power & Light
Regulatory & Legislative Update
Charles J. Kelly, Edison Electric Institute Stephen C. Yohay,Esq., Ogletree Deakins Melissa A. Bailey, Esq., Ogletree Deakins
We Will Discuss Today . . .
Status of 29 C.F.R. 1910.269 and Part 1926, Subpart V
Cranes and Derricks Standard
● Digger Derrick Amendment ● “Type” and “Capacity” issue
OSHA proposed Silica Standard: need to evaluate its impact
Nevada Energy Settlement: fall protection in live line bare hand work
We Will Discuss Today (Cont’d) . . .
OSHA Enforcement Developments
Review Commission Judges are beginning to curb excesses of OSHA enforcement positions
Maybe time to re-evaluate how to address important citations
Before we get in to the agenda…
We want to take you way back to 1974….
Status of 1910.269 and Part 1926, Subpart V Proposal
OSHA’s draft Final Standard still at the Office Of Management and Budget/OIRA
EEI met with OIRA again on September 25, 2013
EEI represented by Exelon, Southern Company, Consumer’s Energy, American Electric Power
Issues stressed:
MAD and FR clothing should not deviate from NESC
Host employer provisions should be performance-based and limited
EEI and IBEW urge publication of final standards
Status of 1910.269 and Part 1926, Subpart V Proposal
Not clear when OIRA will return standard to OSHA for publication, or whether issues remain between OSHA and OIRA
David Wallis (OSHA) has informed EEI and IBEW that he will retire at the end of 2013
Months ago, Mr. Wallis said: final standard will contain at least one requirement that EEI will not like, and one that IBW will not like
EEI members should remain ready to review standards when they are issued
Proposed Silica Standard
The task now: determine what would this mean for electric utilities
In power plants
In other operations
In construction
OSHA did not make this analysis – you must
Hex chrome was feared when it was issued. Has that standard been a problem?
What incremental burdens would silica add?
Is it a health issue of concern in utilities?
Proposed Silica Standard
At least as proposed, engineering controls must be used – respiratory protection not enough
Very controversial: Will OSHA actually stick to this approach years from now when the standard is issued and enforced?
How would the standard affect contractors in power plants during outages?
Proposed Silica Standard
Proposed standard is very comprehensive; A lot of work for EEI members to do on this proposal
EEI must make decisions on how to respond on behalf of its members
Choices will depend on what members say and what hard information you provide
Other industries are also involved and are raising objections
Proposed Silica Standard
The politics
Likely to be the “legacy standard” of Dr. David Michaels
Very resource-intensive, and may crowd out other standards
I2P2 – may see a proposal, but opposition from business community has been intense
Combustible dust: OSHA is having a tough time convening the SBREFA panel; will NFPA 652 simply become the combustible dust “standard”?
Important Dates to Remember
Link to rulemaking docket on regulations.gov: http://www.regulations.gov/#!docketDetail;D=OSHA-2010-0034
Status of Cranes and Derricks as Standard
OSHA has issued a final rule that broadens the exemption for digger derricks used in the Electric Utility Industry
Digger derricks need not comply with the Cranes and Derricks Standard when used to perform work subject to 29 C.F.R., Part 1926, Subpart V
To qualify for this exclusion, digger derrick use must comply with overall requirements in Subpart V
This represents the final rule that EEI negotiated in settling the challenge to the standard initiated when the rule was issued in 2010
More Cranes Issues: Operator Certification
In 2011, OSHA issued Small Business Guidance and addressed operator certification
QUESTION 4: Does an operator's certification mean that the operator is qualified to operate any type of equipment covered by the standard?
ANSWER 4: No. An operator is qualified to operate a particular piece of equipment if the operator is certified for that type and capacity of equipment or for higher-capacity equipment of that type
Crane Operator Certification
OSHA Small Business Guidance:
Example: An operator certified for a 100-ton hydraulic crane may operate a 50-ton hydraulic crane but not a 200-ton hydraulic crane.
If no accredited testing agency offers certification examinations for a particular type and/or capacity of equipment, an operator is considered to be qualified to operate that equipment if the operator has been certified for the type/capacity that is most similar to that equipment and for which a certification examination is available.
The operator’s certificate must state the type/capacity of equipment for which the operator is certified.
Crane Operator Certification
After the guidance was issued – became a hot topic in the construction industry
The International Union of Operating Engineers (IUOE) petitioned OSHA to amend the “Capacity and Type” language in 1926.1427(b)(1)(ii)(B) and 1926.1427(b)(1).
In response, OSHA held three “stakeholder meetings” in early April 2013
What will happen now?
OSHA has said informally that it will extend compliance deadline until 2017, but there has been nothing official to date
Nevada Energy Settlement
A newly-qualified journeyman lineman suffered fatal fall from high voltage transmission tower during live line bare hand training
The company used A.B. Chance horizontal ladders for linemen to move from tower to conductors – used for years in the industry
Typical lineman’s belt was used for fall protection
Company regarded journeyman linemen as “qualified” to use lineman’s belt rather than full fall protection
Nevada Energy Settlement
Accident occurred on Indian Lands; therefore, Federal OSHA had jurisdiction
Citations criticized lack of full fall protection and use of A.B. Chance ladders
In settling, OSHA withdrew citation aimed at use of ladders; Company agreed to full fall protection for all live line work and training, including requiring contractors to do the same
Area Office approach had been approved by OSHA national office; may indicate an inclination toward full fall protection in forthcoming standards
OSHA Enforcement – Interesting Developments
Under General Duty Clause, OSHA investigated combustible dust issue in tire manufacturing
To gain industry practice evidence for use in citations, OSHA subpoenaed others in the industry for combustible dust control programs
Several companies complied; One company resisted, and OSHA eventually backed-off
There have been several combustible dust investigations among state plans
More Enforcement Developments
The return of the OSH Review Commission as a force for OSHA to reckon with
OSHRC was a key legislative compromise that allowed Act to pass in 1971
Intended as a check on OSHA enforcement
For many years, Review Commission has lacked full complement of three Commissioners
Such is the case now –there are two
Chair: Hon. Thomasina Rogers
Comm’r Cynthia Attwood
More Enforcement Developments
So, what has changed?
Recently, several long-time ALJ’s retired
Several new ALJ’s are looking skeptically at novel enforcement theories advanced by current Solicitor of Labor, Patricia Smith
In several recent, significant cases, OSHA theories have been rejected
More Enforcement Developments
Is “regulation by shaming” working? Not on the litigation side
Twelve cases from late 2012 and thus far in 2013
OSHA: 4 “wins” (2 default judgments; 2 wins for small plaintiffs without counsel and large penalty deductions)
Employers: 8 “wins” where either all citations vacated or citations improperly characterized as “willful”**
** Some decisions have been appealed by OSHA
Recent OSHRC Decisions -Examples
British Petroleum – a huge loss for OSHA on several levels
42 willful, 20 serious and 3 OTS violations
Proposed penalty of over $3 million
Multiple PSM citations based on alleged failure to comply with “recognized and accepted good engineering practices”
Recent OSHRC Decisions -Examples
OSHA’s case based largely on a self-audit BP performed using a third party
Self-audit used as a “road map” to issue citations
Contradicts OSHA’s voluntary self-audit policy
Judge: “Employers should not have to fear that self-auditing will lead to self-incrimination”
This was not the reason multiple citations were vacated, but “troubled” by “ill-advised” use of the report
Recent OSHRC Decisions -Examples
Why is BP decision important for electric utilities?
Failure to follow “recognized and accepted good engineering practices” (PSM term)
PSM standard is performance-based, much like 1910.269
BP’s engineering analysis came to a different conclusion than the API industry standard – not a violation of the PSM standard
Recent OSHRC Decisions -Examples
Judge: Performance standards allow “the employer the flexibility to achieve compliance by use of appropriate internal standards, as well as by adhering to industry codes and standards”
Most citations vacated on this basis
Secretary was basically trying to “enforce consensus standards”
Recent OSHRC Decisions -Examples
Delta Elevator Service
OSHA asks Judge to order “enterprise-wide relief” requiring employer to provide certain PPE at all 2000 of its job sites
Judge: No, OSHA does not have that authority under the OSH Act
OSHA essentially asking Judge to issue an Order applying to multiple workplaces where no violation has been proven
Review Commission ALJ Decisions - What Does It Mean For You?
Usually, the preferred course in dealing with citations is to push for best available settlement
Trials are expensive, time-consuming
Now, however, where a case is really significant, and there is corporate will to endure litigation, threatening credibly to go to trial might yield a better outcome than before.
Questions??
An evening at
the Fred Meijer Art Museum and Gardens Sponsored by:
Buses will begin departing at 5:30 pm