UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
   OFFICE OF ENFORCEMENT AND COMPLIANCE ASSURANCE
OFFICE OF CRIMINAL ENFORCEMENT, FORENSICS AND TRAINING
                     EPA-330/9-97-002R

              Compliance-Focused Environmental
                    Management System -
               Enforcement Agreement Guidance
                       August 1997
                    Revised January 2000
                   Revised December 2001
                    Revised August 2002
                     Revised June 2005
                       Steven W. Sisk
     NATIONAL ENFORCEMENT INVESTIGATIONS CENTER
                   Diana A. Love, Director
                     Denver, Colorado
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                    Compliance-Focused Environmental Management System
                   	Enforcement Agreement Guidance	
                                    CONTENTS

 INTRODUCTION	
       SYNOPSIS	3
       BACKGROUND	3
       COMPLIANCE-FOCUSED ENVIRONMENTAL MANAGEMENT SYSTEM
         ELEMENTS	5

             Environmental Policy	5
             Organization, Personnel, and Oversight of Ems 	5
             Accountability and Responsibility	6
             Environmental Requirements	6
             Assessment, Prevention, and Control  	6
             Environmental Incident and Non-compliance Investigations  	7
             Environmental Training, Awareness, and Competence	7
             Environmental Planning and Organization Decision-Making	7
             Maintenance of Records and Documentation 	8
             Pollution Prevention  	8
             Continuing Program Evaluation and Improvement	8
             Public Involvement/Community Outreach  	8
APPENDICES

A     Model Settlement Agreement Language for Ems Improvements (7 Pages)
B     Supplementary Requirements for Iso 14001-2004 (second edition) (3 pages)
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                                     INTRODUCTION

 SYNOPSIS
         Since the late 1980s, civil multimedia compliance investigations conducted by the EPA
 National Enforcement Investigations Center (NEIC) have increasingly involved identifying causes
 of observed noncompliance.  In many cases, the causes  arise from inadequate environmental
 management systems (EMSs).1  NEIC,  in response, developed key elements for a compliance-
 focused EMS (CFEMS) model, which have been used as the basis for EMS requirements in many
 enforcement settlement agreements. The purpose of this guidance is to present those key elements
 and to show, through the "Model Settlement Agreement Language" [Appendix A], how the elements
 are typically incorporated into such agreements.

 BACKGROUND

         EPA has determined that properly designed and implemented EMSs can help promote
 positive environmental outcomes.  The  EPA Office of Enforcement and Compliance Assurance
 (OECA) supports the Agency's EMS policy,  as expressed in the USEPA EMS Position Statement,
 to  encourage  the widespread use of EMSs  across a range of organizations and settings, with
 particular emphasis on adopting EMSs to achieve improved environmental performance, including
 compliance, pollution  prevention,  and continual  improvement in all  areas, regulated  and
 unregulated.2

         OECA  strongly encourages  all organizations interested in focusing their EMSs  on
 compliance to reference the CFEMS model as a potentially useful tool for supplementing existing
 EMS standards.  However, OECA does not  advocate that EMSs associated with voluntary EPA
 programs [e.g., National Environmental  Performance Track (NEPT) and  the  Public Entity
 Environmental Management System Resource (PEER) Center/Local Government Program3], need
 to incorporate the CFEMS 12 elements. The CFEMS model has been developed for application in
       The International Organization for Standardization (ISO) defines an EMS as "that part of the overall
       management system which includes organizational structure, planning activities, responsibilities, practices,
       procedures, processes and resources for developing, implementing, achieving, reviewing, and maintaining [the
       organization '$] environmental policy." The EMS provides the structure by which specific activities related
       to environmental protection and compliance can be effectively and efficiently carried out.
       The USEPA Position  Statement  on  EMSs (EMS Position Statement; May 15, '02)  is available at
       .
       The PEER Center is supported by a cooperative agreement between EPA's Office of Water and the Global
       Environment and Technology Foundation.  OECA has supported and provided funding for this program. The
       PEER Center has developed a national clearinghouse of EMS information with a focus on municipalities. In
       July 2002, EPA also designated eight Local Resource Centers around the country to provide assistance to local
       governments interested  in  adopting EMSs.    The  PEER  Center  website   may  be  accessed  at
       .

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                     	Enforcement Agreement Guidance	
 enforcement actions as injunctive relief for defendants with violations caused by management
 failures. Increasingly, however, we are learning that organizations, domestic and international, are
 consulting the CFEMS Guidance in enhancing their EMSs or voluntary EMS guidelines to better
 address internal and external compliance concerns. OECA encourages this as beneficial to both the
 implementing organizations and external stakeholders.

        EPA's approach to EMSs in enforcement actions (as opposed to when EPA is promoting
 EMSs through voluntary programs, compliance assistance, or other non-enforcement means) is to
 focus on seeking the appropriate injunctive relief to return violators to compliance and minimize or
 eliminate the potential  for repeat violations.

        To achieve maximum benefit from the CFEMS elements, the overall EMS, in which they
 are incorporated, should embody the "plan, do, check, and act" model for continual improvement
 and address both regulated and unregulated aspects and impacts.  Consequently,  the CFEMS
 Guidance is intended to supplement, not replace, EMS standards such as ISO 14001 developed by
 voluntary consensus standards bodies.  The CFEMS 12 elements support the broad, multimedia,
 beyond-compliance approaches that are the hallmarks of an effective, functioning EMS.  They
 supplement existing EMS voluntary consensus standards by filling potential compliance-related
 gaps.

        Settlement  agreements that require  EMS  improvements typically require  that  the
 organization conduct an initial review of its current environmental management practices, followed
 by development of a comprehensive CFEMS that must be documented in a manual. The EMS
 manual must contain overarching policies, procedures, and programs that compose the facility-wide
 (or organization-wide) EMS framework, and describe respective management systems, subsystems,
 and tasks for the 12 key elements. After the organization has had sufficient time to implement and
 refine the EMS (usually 1 to 3 years), the agreement should require at least one EMS audit by an
 independent third-party auditor to verify implementation,  with results reported  to both  the
 organization and EPA. However, additional audits, including compliance audits, are often required,
 as individual circumstances dictate. The audits also serve to promote further EMS improvement and
 more effective implementation.

       The intended result of this  approach is twofold:  first, to have the organization develop an
 EMS that will both improve its compliance with applicable environmental requirements and, second,
 to improve its environmental performance through setting  and achieving the  organization's
 environmental targets and objectives.


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         The 12 key elements of a CFEMS addressed in this guide were compiled from a number of

 sources, as mentioned in previous revisions,  and notably include:  EMS assessment protocols

 developed by Deloitte and Touche LLP of San Francisco for the Global Environmental Management

 Initiative (1992) and an industrial client (1994); and ISO  14001 "Environmental management

 systems - Specification with guidance for use" (1996 and 2004).


         The current revision involved expanding the Introduction to better describe the relationship

 of the CFEMS Guidance to EPA's  overall EMS policy and its consistency with that policy, as well

 as revising the elements and the model settlement agreement language in Attachments A and B

 (new).4


 COMPLIANCE-FOCUSED ENVIRONMENTAL MANAGEMENT SYSTEM ELEMENTS


 1.      Environmental Policy

         a.    This policy, upon which the EMS is based, must clearly communicate management
              commitment  to  achieving compliance with applicable federal,  state, and local
              environmental statutes, regulations, enforceable agreements, and permits (hereafter,
              "environmental requirements"), minimizing risks to the environment from unplanned
              or unauthorized releases of hazardous or harmful contaminants,  and continual
              improvement in environmental performance.   The  policy should  also state
              management's intent to provide adequate personnel and other resources for the EMS.

 2.      Organization, Personnel, and Oversight of EMS

        a.    Identifies  and defines specific duties, roles, responsibilities, and authorities of key
              environmental staff in implementing and sustaining the EMS (e.g.,  could include
              position descriptions and/or performance standards for all environmental department
              personnel, and  excerpts  from others having  specific  environmental duties, and
              regulatory compliance responsibilities).

        b.    Includes  organization charts  that  identify units, line  management,  and   other
              individuals having environmental duties and regulatory compliance responsibilities.

        c.     Includes ongoing means of communicating environmental issues and information
              among the various levels and functions of the organization, to include all persons
              working for or on behalf of the organization  (e.g., on-site service  providers and
              contractors who function as de facto employees), and for receiving and addressing
              their concerns.
       The 12 elements are closely inter-related components of an EMS for which subsystems and procedures must
       be developed and fully integrated if the entire program  is to be effective. They are usually included in
       settlement agreements as a complete group; however, individual elements may need to be modified to reflect
       site-specific conditions and circumstances.


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3.      Accountability and Responsibility

        a.     Specifies  accountability  and environmental  responsibilities  of organization's
              managers, and managers of other organizations acting on its behalf for environmental
              protection and risk reduction measures, assuring compliance, required reporting to
              regulatory agencies,  and  corrective actions  implemented in their  area(s) of
              responsibility.

        b.     Describes incentive programs for managers and employees to perform in accordance
              with compliance policies, standards, and procedures.

        c.     Describes potential consequences for departure from specified operating procedures,
              including  liability for civil/administrative penalties  imposed  as  a result of
              noncompliance.

4.      Environmental Requirements

        a.     Describes process for identifying potentially applicable environmental requirements;
              interpreting their applicability to specific operations, emissions, and waste streams;
              and effectively  communicating those applicable  environmental requirements to
              affected persons working for or on behalf of the organization.

        b.     Describes a process for developing, implementing and maintaining ongoing internal
              compliance monitoring to ensure that  facility activities conform to  applicable
              environmental requirements. Compliance monitoring shall include inspections and
              measurements, as appropriate.

        c.     Describes procedures for prospectively identifying and obtaining information about
              changes and proposed changes in environmental requirements, and incorporating
              those changes into the EMS (i.e., regulatory "change management").

        d.     Describes a  procedure for communicating with  regulatory agencies regarding
              environmental requirements and regulatory compliance.

5.      Assessment, Prevention, and Control

        a.     Identifies an ongoing process for assessing operations, for the purposes of preventing,
              controlling, or minimizing reasonably foreseeable releases, environmental process
              hazards, and risks of noncompliance with environmental requirements. This process
              shall include identifying operations and waste streams where equipment malfunctions
              and deterioration, and/or operator errors  or deliberate malfeasance, are causing, or
              have the potential to cause: (1) unplanned or unauthorized releases of hazardous or
              harmful contaminants  to the environment, (2) a  threat to human health or the
              environment, or (3) noncompliance with environmental requirements.

        b.     Describes  process  for identifying operations  and activities where documented
              operating criteria, such as standard operating procedures (SOPs), are needed to
              prevent noncompliance or unplanned/unauthorized releases of hazardous or harmful
              contaminants, and defines  a  uniform  process for developing, approving  and
              implementing the documented operating criteria.

        c.     Describes  a  system for conducting and  documenting routine,  objective,  self-
              inspections by department supervisors and trained  staff, especially at locations
              identified  by  the  process  described in (a) above, to  check  for malfunctions,
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              deterioration,  worker adherence to operating criteria, unusual situations,  and
              unauthorized or unplanned releases.

        d.    Describes  a "management  of change"  process  to  ensure identification  and
              consideration of environmental requirements, the environmental aspects/impacts, and
              potential operator errors or deliberate malfeasance during planning, design, and
              operation of ongoing, new, and/or changing buildings, processes,  equipment,
              maintenance activities, and products.

 6.      Environmental Incident and Non-compliance Investigations

        a.    Describes standard procedures and requirements for internal and external reporting
              of environmental incidents and noncompliance with environmental requirements.

        b.    Establishes procedures for investigation, and prompt and appropriate correction of
              noncompliance. The investigation process includes root-cause analysis of identified
              problems to aid in developing the corrective actions.

        c.    Describes a system for development, tracking, and effectiveness verification of
              corrective and preventative actions.

 7.      Environmental Training, Awareness, and Competence

        a.    Identifies specific education and training required for organization personnel or those
              acting on its behalf, as well as process for documenting training provided

        b.    Describes program to ensure that organization employees or those acting on its behalf
              are aware of its environmental policies and procedures, environmental requirements,
              and their roles and responsibilities within the environmental management system.

        c.    Describes program  for  ensuring  that personnel  responsible for meeting  and
              maintaining compliance with environmental requirements are competent on the basis
              of appropriate education, training, and/or experience.

        d.    Identifies training on how to recognize operations  and waste streams where
              equipment malfunctions and deterioration, and/or operator errors or deliberate
              malfeasance, are causing, or have  the potential  to  cause:  (1)  unplanned or
              unauthorized releases of hazardous or harmful contaminants to the environment, (2)
              a threat  to human health or  the  environment, or  (3)  noncompliance  with
              environmental requirements.

 8.      Environmental Planning and Organizational Decision-Making

        a.     Describes  how environmental  planning  will be  integrated  into organizational
              decision-making, including plans and decisions on capital improvements, product
              and process design, training programs, and maintenance activities.

        b.     Requires establishing, on an annual basis, written targets, objectives, and action plans
              for improving environmental performance, by at least each operating organizational
              subunit with environmental responsibilities, as appropriate, including those for
              contractor operations conducted at the facility, and how specified actions will be
              tracked and progress reported.  Targets and objectives must include actions that
              reduce the risk of noncompliance with environmental requirements and minimize the
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              potential for unplanned or  unauthorized releases  of hazardous  or harmful
              contaminants.

 9.      Maintenance of Records and Documentation

        a.    Identifies the types of records developed in support of the EMS (including audits and
              reviews), who maintains them and, where appropriate, security measures to prevent
              their unauthorized disclosure, and protocols for responding to inquiries and requests
              for release of information.

        b.    Specifies  the  data  management  systems for  any internal  waste  tracking,
              environmental data, and hazardous waste determinations.

        c.    Specifies document control procedures.

 10.     Pollution Prevention

        a.    Describes an internal process or procedure for preventing, reducing, recycling,
              reusing, and minimizing waste and emissions, including incentives to encourage
              material substitutions. Also includes mechanisms for identifying candidate materials
              to be addressed by the pollution prevention program and tracking progress.

 11.     Continuing Program Evaluation and Improvement

        a.    Describes program for periodic (at least annually) evaluation of the EMS, which
              specifies a process for translating assessment results into EMS improvements. The
              program  shall  include  communicating findings  and action plans to affected
              organization employees or those acting on its behalf.

        b.    Describes a program for periodic audits (at least annually) of facility compliance with
              environmental requirements by an independent auditor(s). Audit results are reported
              to upper management and instances of noncompliance are  addressed through the
              process described in element 6 above.

 12.     Public Involvement/Community Outreach

        a.    Describes a program for ongoing community education and involvement in the
              environmental aspects of the organization's operations and general environmental
              awareness.
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                       APPENDIX A

MODEL SETTLEMENT AGREEMENT LANGUAGE FOR EMS IMPROVEMENTS
                        (7 pages)

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                                       Appendix A
   MODEL SETTLEMENT AGREEMENT LANGUAGE FOR EMS IMPROVEMENTS

 I.     Definitions [includes only those definitions that are specifically relevant to the EMS
       Improvement provisions]

       (a)    "Action Plan" shall mean a comprehensive plan for bringing the Facility, as defined
              below, into full conformance with the EMS provisions specified in Paragraph 20 of
              this Consent Decree and fully addressing all Audit Findings identified in the Audit
              Report.

       (b)     "Audit Finding" shall mean a written summary of all instances of nonconformance
              with the provisions of Paragraph 20 of this Consent Decree noted during the EMS
              audit, and all areas of concern identified during the  course of the audit that, in the
              EMS Auditor's judgement, merits further review or evaluation for potential EMS,
              environmental, or regulatory impacts.

       (c)    "Audit Report" shall mean a report setting forth the Audit Findings resulting from
              the audit of a Facility by the EMS Auditor, which meets all the requirements set forth
              in Paragraph 18 of this Consent Decree.

       (d)    "EMS Auditor" (change made throughout document) shall mean the independent
              third-party hired by the COMPANY and approved by EPA to conduct an EMS audit
              at the Facility, and who meets the requirements set forth in Paragraph 8 of the
              Consent Decree.

       (e)    "Contractor" shall mean [contractor one name], any successor to [contractor one
              name] located on facility, [contractor two name], any successor to [contractor two
              name] located at the Facility and contractors providing the following services at the
              facility: [list of specific services such as asbestos removal, demolition, painting,
              waste handling, including vacuum truck operators, and construction].

       (f)     "Corrective Measures" shall mean those measures or actions appropriate to bring a
              Facility into full conformance with the EMS provisions of Paragraph 5 of this
              Consent Decree.

       (g)    "Environmental Requirements" shall mean all applicable federal, state, and local
              environmental statutes and regulations, including permits and enforceable agreements
              between the COMPANY and the respective environmental regulatory agency(ies).

       (h)    "Facility"  as used in the term "the Facility" or in the term  "the COMPANY'S
              Facility" shall mean the [COMPANY name], facility located at [facility address (e.g.,
              600 South Kipling Road in Denver, Colorado)].

       (i)     "EMS Consultant(s)" shall mean individual(s) meeting the requirements of Paragraph
              1. below, who are selected and/or contracted to perform the Initial EMS Review and
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                                 Appendix A (continued)
              Evaluation and/or assist the COMPANY in developing and implementing the EMS
              required by this Decree.

 A.    ENVIRONMENTAL MANAGEMENT SYSTEM

       Initial Review

       1.      Within ten (10) days following entry of this Decree, the COMPANY shall provide
              to EPA, in writing, a notification with information concerning the person(s) or
              organization(s) identified by the COMPANY [the "Proposed EMS Consultant(s)"]
              to perform an evaluation (commonly called a "gap analysis") of any environmental
              management practices existing at the Facility (the "Initial Review and Evaluation").
              The notification shall include:  (a) the name, affiliation, and address of the Proposed
              EMS  Consultant(s); (b)  information demonstrating how each Proposed  EMS
              Consultant(s) satisfies the EMS auditor qualification requirements of Table 1 in ISO
              19011  (First  edition,  2004-10-01)  and  has  experience in  developing and
              implementing an EMS; (c) information demonstrating that the team conducting the
              Initial EMS Review and Evaluation, in composite, has a working process knowledge
              of Facility or similar operations, and has a working knowledge of federal and state
              environmental requirements which apply to the Facility; and (d) evidence that the
              Proposed EMS Consultant(s) have at least a bachelor's degree from an accredited
              institution. The written notification submitted by the Company pursuant to this
              identify the schedule, including milestones, for conducting the Initial EMS Review
              and Evaluation.

       2.      EPA  shall notify the COMPANY  whether the Proposed  EMS Consultants are
              qualified to perform the Initial Review and Evaluation relative to the standards set
              forth in the previous Paragraph. If EPA disapproves of the COMPANY'S selection
              of any Proposed EMS Consultant, then the COMPANY  shall submit to EPA the
              identity of different Proposed EMS Consultant(s) within thirty (30) days  of the
              COMPANY'S receipt of EPA's  determination.  Both the  COMPANY'S  initial
              proposal and EPA's review of any different Proposed EMS Consultants shall be
              governed by Paragraphs 1 and 2 of this Decree until  such time as EPA notifies the
              COMPANY that these initial EMS Consultants are qualified to conduct the Initial
              Review and Evaluation.

       3.      The COMPANY shall direct the qualified initial EMS  Consultant(s) identified
              pursuant to paragraph 2 above to conduct and complete an Initial EMS Review and
              Evaluation for both COMPANY [and any on-site Contractor operations].  The
              designated EMS Consultant(s) shall review and evaluate the current environmental
              management practices and documents, using the elements set forth in paragraph 5.
              below. The purpose is to identify where systems or subsystems have not been
              adequately developed or implemented, or need to be enhanced, or new management
              systems or subsystems developed, to adequately address the twelve elements set forth
              in Paragraph 5, below. The COMPANY shall require the EMS Consultants to prepare
              a report of the results of the Initial Review and Evaluation and provide such report
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                                Appendix A (continued)
             to the COMPANY within 90 days of the date that EPA notified the COMPANY that
             the initial EMS  Consultants are  qualified to conduct the Initial  Review and
             Evaluation.  This report shall also be provided to EPA, upon request.

       Comprehensive EMS Development and Implementation

       4.     Based on the Initial EMS Review and Evaluation results and other information, the
             COMPANY, assisted by the EMS Consultant(s), shall develop, implement, and
             maintain a Comprehensive EMS for the Facility addressing, at a minimum, the 12
             key elements presented in Paragraph 5, below.  The purpose of developing the
             Comprehensive EMS is to assist the COMPANY in  its efforts to  comply with
             federal, state and local environmental requirements,  as well as to improve
             environmental performance.

       5.     EMS Manual. Within nine (9) months of the date that EPA notified the COMPANY
             that the EMS Consultant(s) is qualified to assist in development of a Comprehensive
             EMS,  the COMPANY shall   submit to EPA for  review  and  approval, an
             "Environmental Management System Manual" which describes and documents the
             Comprehensive EMS and contains an EMS implementation schedule for each of the
             described  systems  and  subsystems not  already fully  implemented.    The
             Environmental Management System Manual shall describe or contain, as appropriate,
             overarching policies, procedures, and programs that compose the facility-wide EMS
             framework, and respective management systems, subsystems, and  tasks for the
             following elements:

NOTES:     (a) The 12 key elements of the compliance-focused EMS are inserted here or
             referenced as an Appendix.

             (b) If the COMPANY chooses ISO 14001:2004 (second edition)  as the EMS
             model, then this language will need be modified to reference that model AND
             the supplementary provisions included in Appendix B need to be incorporated
             into the settlement agreement.

       6.     EPA shall approve  the  EMS Manual if it satisfactorily addresses  the CFEMS
             elements. Subsequent to EPA's initial approval of the EMS Manual, the COMPANY
             may revise and/or update the EMS Manual for the Facility. Substantial revisions or
             updates to the EMS Manual made by the COMPANY before the EMS Audit required
             by Paragraph 16 below, shall be submitted to EPA for review and approval.  Upon
             approval by EPA, the changes shall be incorporated into the EMS Manual. The EMS
             Manual as approved pursuant to this Paragraph shall be used during the EMS Audit
             as further described in Paragraphs 8 to 19, below.

       7.     Upon  the COMPANY'S receipt of EPA's  approval of the EMS Manual, The
             COMPANY shall commence implementation of the EMS in accordance with the
             schedule  contained in  the  EMS  Manual.   The  COMPANY shall submit
             implementation status reports to EPA on  a quarterly basis (i.e., reports due in
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                                 Appendix A (continued)
              January, April, July, and October), beginning not earlier than sixty (60) days from
              receipt of EPA's approval of the manual. The status reports shall be due on the 15th
              day of the reporting month and every quarter thereafter until  implementation is
              complete. [Status report details may be added here.]

        EMS Audit

        8.     Within 1 year of EPA's approval of the EMS Manual, the COMPANY shall propose
              to EPA for approval, the selection of an independent EMS Auditor who (a) was not
              involved  in the Initial EMS Review  and Evaluation, (b) meets the qualification
              requirements of ISO 19011  (First edition, 2002-10-01);  (c)  has  expertise and
              competence in the regulatory programs under federal and state environmental laws;
              and (d) has at least a bachelor's degree from an accredited institution. In addition,
              the Proposed EMS Auditor must be capable of exercising independent judgment and
              discipline in performing an EMS Audit at the Facility, as described in Paragraph 16,
              below. The EMS Auditor must have no direct financial stake in  the outcome of the
              EMS Audit conducted pursuant to this Consent Decree.  If the COMPANY has or
              has  had any other contractual or financial relationship with the Proposed EMS
              Auditor, the COMPANY shall disclose to EPA such past or existing contractual or
              financial relationships when the Proposed EMS Auditor(s) is identified.

       9.     EPA shall notify the COMPANY whether the Proposed EMS Auditor meets the
              qualifications set forth in the previous Paragraph.  If EPA determines that the
              Proposed  EMS Auditor does not meet the qualifications set forth in the previous
              paragraph, or that past or existing relationships with the Proposed  EMS Auditor
              would affect the EMS Auditor's ability to exercise the independent  judgment and
              discipline required to conduct the EMS Audit, such Proposed EMS Auditor shall be
              disqualified and another EMS Auditor shall be proposed by the COMPANY within
              thirty (30) days of the COMPANY'S receipt of EPA's determination.

       10.    Both the COMPANY'S initial proposal and EPA's review of any  different Proposed
              EMS Auditor shall be governed by Paragraphs 8 and 9 of this Decree until such
              time as EPA notifies the COMPANY that the EMS Auditor(s) is qualified.

       11.    Within ten (10) business days of the date that EPA notifies the COMPANY of the
              approval of the  Proposed EMS Auditor, the COMPANY shall retain the Proposed
              EMS Auditor, thereafter designated the "EMS Auditor," to perform an EMS Audit
              of the Facility as further described in Paragraph 16 below.

       12.     THE  COMPANY shall identify  any and all site-specific  safety and training
              requirements for the EMS Auditor(s), and shall ensure that the requirements are met
              prior to conducting the audit.

       13.     THE COMPANY shall require the EMS Auditor to prepare a draft EMS Audit Plan
              and provide it to THE COMPANY and EPA for review and comment.  The audit
              criteria shall include the provisions set forth  in Paragraph 5,  the  EMS Manual
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                                Appendix A (continued)
              approved pursuant to Paragraph 6 of this Decree, above, and any other EMS
              standards or criteria deemed appropriate by the COMPANY. The EMS Audit Plan
              shall provide for an evaluation of the adequacy of EMS implementation relative to
              the audit criteria, from top management down, throughout each major organizational
              unit at the Facility, and to identify areas of concern. The draft EMS Audit Plan shall
              be submitted within two (2) months after the EPA's approval of the EMS Auditor.

       14.    Within 3 0 days of receipt of EPA's comments the COMPANY shall direct the EMS
              Auditor to develop a final audit plan that incorporates EPA's comments which shall
              be followed during conduct of the EMS Audit performed pursuant to this Consent
              Decree. The COMPANY shall direct the EMS Auditor to concurrently submit the
              final EMS Audit Plan to EPA and the COMPANY upon completion. The audit shall
              be completed within 60 days of submission of the final EMS audit plan.

       15.    EPA shall approve the EMS Audit Plan if it satisfactorily addresses the elements of
              Paragraph 13.

       16.    Within sixty (60) days after the COMPANY'S receipt of EPA's approval of the EMS
              The EMS Audit shall be conducted in accordance with ISO 19011 (First edition,
              2002-10-01). The EMS Auditor shall assess conformance with the criteria specified
              in Paragraph 13 above, and shall determine the following:

              a.     Whether there is a defined system, subsystem, program, or planned task for
                    the respective  EMS element
              b.     To  what  extent the system, subsystem, program,  or task has been
                    implemented,  and is being maintained
              c.     The adequacy of each operation's internal self-assessment procedures for
                    programs and  tasks composing the EMS
              d.     Whether the  COMPANY is effectively communicating environmental
                    requirements to affected parts of the organization, or those working on behalf
                    of the organization
              e.     Whether further improvements should be made to the EMS to better conform
                    to the audit criteria
              f.      Whether there are  observed deviations  from the COMPANY'S written
                    requirements or procedures
              g.    Whether continual improvement is occurring

       17     Designated representatives  from  EPA, the COMPANY, and other environmental
             regulatory agencies may participate in the EMS audit as observers, but  may not
              interfere with the independent judgement of the EMS Auditor. The COMPANY
              shall notify EPA at least ten (10) days  before the commencement of the on-site
             portion  of the  EMS  Audit to  designated regulatory  contacts  regarding  audit
             scheduling in order to make arrangements for observers to be present.

       18.     EMS Audit Report - The COMPANY shall direct the EMS Auditor to develop and
             concurrently submit an EMS Audit Report to the COMPANY and EPA for the EMS
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                                 Appendix A (continued)
              Audit as required by this Consent Decree, within sixty (60) days following the
              completion of the on-site portion of the audit. The EMS Audit Report shall present
              the Audit Findings and shall contain the following information:

                     a.     Audit scope, including the period of time covered by the audit
                     b.     The date(s) the on-site portion of the audit was conducted
                     c.     Identification of audit team members
                     d.     Identification of the COMPANY representatives  and regulatory
                           agency personnel observing the audit
                     e.     The distribution for the EMS Audit Report
                     f.     A summary of the audit process, including any obstacles encountered
                     g.     Detailed Audit Findings, including the basis for each finding and each
                           Area of Concern identified
                     h.     Identification of any Audit Findings corrected  or Areas of Concern
                           addressed during  the  audit, and  a description of the corrective
                           measures and when they were implemented
                     i.     Certification by the EMS Auditor that the EMS Audit was conducted
                           in accordance with the provisions of this Decree.

       19.    If the EMS Auditor believes that additional time is needed  to analyze available
              information or to gather additional information, the COMPANY may request that
              EPA grant the EMS Auditor such additional time as needed to prepare and submit
              the Audit Report. EPA's decision whether to grant additional time shall be final and
              unreviewable.

       Follow-Up Corrective Measures

       20.    Audit Response and Action Plan. Upon receiving the Audit Report, the COMPANY
              shall review and evaluate the Audit Findings and any need for conducting a root
              cause analysis of the identified Audit Findings, and shall investigate all Areas of
              Concern. Within sixty (60) days of receiving the Audit Report for each Facility, the
              COMPANY shall develop and submit to EPA for review and comment a response
              to the EMS Audit Report, (the "Audit Response  and Action Plan").  The Audit
              Response and Action Plan shall  provide  a response to the findings and areas of
              concern identified in the EMS  Audit Report and provide an action plan for
              expeditiously bringing the Facility into full conformance with the EMS provisions
              in Paragraph 5 of this Decree and the EMS Manual, and fully addressing all Areas
              of Concern. The Audit Response and Action Plan shall include the result of any root
              cause  analysis,  specific  deliverables,  responsibility  assignments,  and  an
              implementation schedule for the identified actions and measures, including those that
              may have already been completed.

       21.     Final Audit Response and Action Plan - EPA will provide comments on the Audit
              Response and Action Plan and the COMPANY shall, within thirty (30) days of
              receipt of EPA's comments on the Audit Response and Action Plan, submit to EPA
              a Final Audit Response and Action Plan.
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                                 Appendix A (continued)
       22.    After making any necessary modifications to the Audit Response and Action Plan
              based on EPA  comments, if any, the COMPANY shall implement the Audit
              Response and Action Plan in accordance with the schedules set forth therein.

       23.    Certification of EMS Implementation

              a.     Within 10 days after completion of an EMS Audit in which no instances of
                    nonconformance with the EMS Standard were found at the respective audited
                    Facility,  the COMPANY shall submit a Request for Certification of EMS
                    Implementation to the EMS Auditor. Within ten (10) days after the receiving
                    the certification request, the EMS Auditor shall issue to The COMPANY a
                    Certification of EMS Implementation for the respective Facility, indicating
                    that the EMS is fully implemented and conforms to the EMS Standard.

              b.     Alternately, within 10 days after completion of actions or measures identified
                    in the Final Audit Response and Action Plan, The COMPANY shall submit
                    to the EMS Auditor a Request for Certification of EMS Implementation.

              c.     As soon as practicable, but in no event later than 30 days after it has received
                    the certification request pursuant to Subparagraph b. of this Paragraph, the
                    EMS Auditor shall, as  necessary, reinspect the respective Facility (i.e.,
                    conduct a "Certification Review") and submit to the COMPANY a written
                    statement identifying those Audit Findings which have been addressed and
                    any which have not, including an explanation describing the failure to address
                    or correct, as appropriate, any Audit Findings. The COMPANY shall use its
                    best efforts to address in a timely manner any outstanding Audit Findings
                    identified during the Certification Review.

              d.     When the EMS Auditor concludes that  all Audit  Findings have been
                    addressed at the respective Facility, the EMS Auditor shall issue to the
                    COMPANY  a  Certification of EMS Implementation for the respective
                    Facility, indicating that the EMS is fully implemented and conforms to the
                    EMS Standard.

              e.     Within ten (10) days of receipt, the COMPANY shall submit a copy of each
                    Certification of EMS Implementation to EPA.
Project No. SP0050                          Page A-7 of 7                                CFEMS

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                        APPENDIX B

SUPPLEMENTARY REQUIREMENTS FOR ISO 14001-2004 (second edition)
                          (3 pages)

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                                       Appendix B
               SUPPLEMENTARY REQUIREMENTS FOR ISO 14001-2004
                                  (SECOND EDITION)

 4.3.1   Environmental Aspects

 Add new second paragraph after "b" as follows:

 Consistent with 4.5.3, the aspects/impacts assessment carried out pursuant to this section 4.3.1 shall
 specifically include, but not be limited to, identifying activities, products,  or services where
 equipment malfunctions and deterioration, operator errors or deliberate malfeasance are causing, or
 have the potential to cause: (1) unplanned or unauthorized releases of hazardous contaminants to
 the environment, (2) a threat to human health or the environment, or (3) noncompliance with legal
 requirements.

 4.3.2   Legal and Other Requirements

 Add new subsections as follows:

        (c)    To communicate those requirements to affected organization personnel or those
              acting on its behalf (i.e, those who function as de facto employees). Information
              about applicable legal requirements shall be used to plan, develop, and implement
              ongoing routine evaluation of compliance, consistent with 4.5.2, to ensure that the
              organization's activities conform to those requirements

        (d)    For prospectively identifying and obtaining information about changes and proposed
              changes in legal requirements, and incorporating those changes into the EMS (i.e.,
              regulatory "change management")

        (e)     For communicating with regulatory agencies regarding legal requirements and
              regulatory compliance.

 4.3.3  Objectives, Targets, and Programme(s)

 To end of second paragraph add:

 Targets and  objectives shall include,  where appropriate,  actions which reduce the risk of
 noncompliance with legal requirements and minimize the potential for unplanned or unauthorized
 releases.

 4.4.1  Resources, Roles, Responsibility and Authority

 Add to end of first paragraph as follows:

Management shall integrate environmental planning into organizational decision-making, including
plans and decisions on capital improvements, product and process design, training programs and
maintenance activities.


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                                 Appendix B (continued)
 4.4.2   Competence, Training, Awareness

 Add to end of first paragraph

 This requirement shall also extend to any person within the organization or acting on its behalf
 whose activity has the potential to cause environmental regulatory noncompliance.

 4.4.3 Communication

 Replace opening paragraph and subsection as follows:

 With regard to its environmental  aspects, compliance with legal requirements and environmental
 management system, the organization shall establish and maintain procedures for:

       (a)    An ongoing means of internal communication regarding environmental issues and
              information among the various levels and functions of the organization, to include
              all organization personnel and those working on its behalf, and a means for receiving,
              documenting, and responding relevant communication from those individuals

 Add new subsection as follows:

       (c)    As  appropriate, implementing and  maintaining security measures  to prevent
              unauthorized disclosure of environmental management system information (including
              audits and reviews) and documentation, which shall include protocols for responding
              to inquiries and requests for release of information.

 4.4.6  Operational Control

 Add new subsections as follows:

       (d)    Conducting and documenting routine, objective, self-inspections by supervisors and
              trained staff to check for malfunctions, deterioration, worker noncompliance with
              operating criteria, unusual situations and unplanned or unauthorized  releases.

       (e)     Developing, implementing and maintaining a "management of change" procedure
              to  incorporate  identification  and  consideration  of legal requirements  and
              environmental aspects during the planning and design  of new and/or changes to
              buildings, operations, processes, equipment, maintenance activities, and products.

4.4.7  Emergency Response and Preparedness

Add to end of first paragraph

The  procedures shall  address  internal and external reporting of environmental  incidents  and
noncompliance with legal requirements.
Project SP 0050                            Page B-2 of 3                                 CFEMS

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                                  Appendix B (continued)
 4.5.2.1 Evaluation of Compliance

 Add new paragraphs following the first paragraph as follows:

 The compliance evaluations shall include:

       (a)    A compliance audit conducted at least annually, by an auditor(s) independent of the
              facility being audited.  Evaluation results are reported to senior management and
              nonconformities (i.e., instances ofnoncompliance) are addressed through the process
              developed pursuant to element 4.5.3, below. The organization's annual compliance
              audit workplan, including any schedule,  shall be based on the legal requirements
              applicable to the evaluated facility, and the results of previous audits.

       (b)    Conducting and documenting routine, objective, self-inspections by supervisors and
              trained staff.
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