Fall Occupational Safety & Health Committee s/eeiFall2013/Monday.pdf · Institution of...

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

QUESTIONS?

FOR INFORMATION CONTACT:

TOM CECICH: TOM@TFC-ASSOC.COM

919-601-5224

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