Multi-Media Environmental Audits

Phoenix has conducted multi-media environmental audits for a leading transportation company since 2005 (Phoenix team members have conducted the audits since the inception of the program in 2003). The audited facilities range in size five to over one thousand acres, each with its own unique set of environmental compliance concerns. Phoenix is tasked with traveling to the facility and conducting an extensive environmental audit based on unique protocols. Prior to arriving at a facility, Phoenix performs a comprehensive regulatory review to determine existing laws and regulations which are applicable to the facility and is operations. Phoenix evaluates facility compliance to the following federal, state and local regulatory programs: Clean Air Act, 42 U.S.C. §§ 7401 et seq.; Clean Water Act, 33 U.S.C. §§1251 et seq.; Safe Drinking Water Act, 42 U.S.C. §§ 300f et seq.; Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq.; Toxic Substances Control Act, 15 U.S.C. §§2601 et seq.; Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §§ 9601 et seq.; Emergency Planning and Community Right-to-Know Act, 42 U.S.C. §§ 11001 et seq.; Hazardous Materials Transportation Act, 49 U.S.C. §§ 1801 et seq.; Federal Insecticide, Fungicide and Rodenticide Act, 7 U.S.C. §136 et seq., State counterpart regulatory programs to the above-listed statutes, and other applicable state and local environmental regulations, and current environmental policies instituted by the parent company.

Phoenix meets with facility representatives to explain how the audit will proceed and to gain an understanding of overall site activities and processes. Phoenix reviews all aspects of a facility based on the above identified topics including, but not limited to, areas of industrial activity, facility processes, material storage practices, waste disposal practices, undeveloped outlying areas and environmental-related documentation. During the onsite inspection, the audit team compares the information gained during the site overview with actual site operations and conditions. Interviews are conducted with selected facility personnel to determine facility employee understanding of environmental requirements and to field verify the functioning of management systems and company environmental policies. During this step, the audit team will record findings, and, with prior approval, photograph appropriate areas.

Phoenix reviews environmental documents (programs, plans, permits, permit conditions) to identify non-compliance issues in these areas. Phoenix reviews records for a period of time equivalent to the retention period required by applicable regulations. The scope of the documentation review includes the following environmental compliance issues and associated regulations and facility documentation:

	Permit requirements, including any site-specific variances in effect (federal, state and local);
	Facility operations regarding environmental permits (e.g., air, RCRA, National Pollutant Discharge Elimination System [NPDES], storm water, industrial wastewater discharge) and review existing permit conditions, limits and any variances or modifications in effect;
	Facility notifications or release reports;
	Facility records such as monitoring reports, storage tank registrations and similar regulatory submittals;
	Files for the presence or absence of a permit, registration, environmental plans (such as Contingency Plan or Spill Prevention, Control and Countermeasures Plan) or required reports;
	Files to determine not only whether the required permits, plans, or reports are present, but whether on the face of the documents the terms of the permits appear to be met, or whether the plans and reports appear to have been prepared in accordance with applicable regulations;
	Agency compliance evaluation inspection reports or other reports regarding compliance with regulations and permit conditions or limits; and
	Emergency Planning and Community Right-to-Know submissions, Hazardous Chemical Inventory Reporting and Toxic Release Inventory Reporting.

A draft report is prepared for the client typically within 15 business days of audit completion. For each environmental compliance finding identified, the reports include a corresponding regulatory citation and synopsis of the regulatory requirements. Photographs (if taken) are also included in the report to assist the facility in identification of the noncompliance issues. In addition, Global Positioning System (GPS) coordinates are provided when possible to ensure the facility can locate an individual finding. The draft reports include recommended corrective actions for each identified noncompliance issue. The recommended corrective actions are very detailed and attempt to provide recommendations suitable to correct the root cause of the noncompliance issue. Phoenix provides a draft final report to the client within 10 business days upon receipt of client comments.

Environmental Crimes Unit Training and Process Management

Phoenix assisted in the creation of an Environmental Crimes Unit for a private sector client. Comprehensive training of the environmental investigators is imperative for the success of the Environmental Crimes Unit. With general police backgrounds, these investigators did not have sufficient environmental knowledge to identify and investigate environmental crimes. As a result, Phoenix was contracted to develop a comprehensive environmental training program for the environmental crimes unit investigators on a recurring basis. The training was conducted by Phoenix as well as other outside parties identified by Phoenix who could add value to the investigator’s training.

The first year of training included an introduction of common environmental rules and regulations, how they apply to the company and its employees and a wide variety of environmental crime case presentations. Investigators learned how to identify an environmental crime and differing methods of conducting environmental crime investigations through various scenarios. Phoenix led in the development and implementation of an environmental crimes evidence and investigative techniques training for investigators which included hands on training at a state law enforcement training center. Phoenix continues to provide training programs for the Special Agents approximately biannually. In addition, Phoenix personnel serve as advisory members and process managers to the Environmental Crimes Unit.

Environmental Management System Documentation Development

Phoenix was tasked to assist in the development of documentation in support of the client’s extensive hybrid Environmental Management System (EMS). An EMS is a continual cycle of planning, implementing, reviewing and improving the processes and actions that an organization undertakes to meet its business and environmental goals. In support of a successful EMS, Phoenix assisted with the creation and review of three types of documents: Program Summaries, Key Process Summaries and Instructions.

Program Summaries were the highest tiered documentation developed encompassing broad categories of environmental management. These high-level documents were developed to introduce high level programs enacted in compliance with applicable environmental regulations. Program Summaries introduced basic program components and identified program responsibility. Program Summaries included identification of the program manager, program objectives, program benefits, program risks, program components, required resources and continuous improvement initiatives.

Phoenix also assisted in the development of Key Process Summaries which further categorize compliance items identified in Program Summaries. Key Process Summaries included the identification of the process manager and support personnel, process flow with individual roles and responsibilities identified, support activities, compliance initiatives, process requirements and process verification activities.

Individual Instructions were also developed by Phoenix. Instructions were third tier documents written to identify individual facility processes and detailed procedures. The Instructions identified step-by-step guidelines to be followed by facility personnel to assist in compliance with the applicable environmental regulations. The objective was to develop an Instruction for every environmentally-related process at the facility.

Audit Program Development

Phoenix has led the development of two audit programs for a leading transportation industry: third party environmental audits and lessee audits. The environmental audit program was designed to provide assistance to the facilities while still objectively evaluating the facility’s compliance with environmental rules and regulations. The goal of the audit team is to work with the facility and other appropriate personnel to develop appropriate responses to audit findings and implementing these strategies in a timely manner. Phoenix identified the following specific objectives of the third party environmental audits:

	Ensure regulatory compliance, minimize potential environmental risks, and evaluate the adequacy of environmental management systems to meet identified goals;
	Reduce or eliminate the occurrence of environmental incidents and accidents;
	Reduce or eliminate the release of pollutants into the environment;
	Increase the overall level of environmental awareness;
	Assist the company in its efforts to protect the environment;
	Identify practices needed to achieve multi-media environmental compliance;
	Evaluate the effectiveness of environmental management systems in place;
	Identify operational concerns;
	Disseminate environmental technologies and innovations throughout the company; and
	Ensure adequate environmental performance and continuous improvement of facilities.

In conjunction with the third party audit program, Phoenix developed an audit manual for use by the client for successful implementation of the program. Audit protocols promote consistency among regulated entities when conducting environmental audits and ensure audits are conducted in a thorough and comprehensive manner. The audit manual was developed to provide written guidance to communicate the objectives and scope of the third party audit program, establish consistency of third party audits, and allow the program to be evaluated periodically against established performance criteria. The manual was designed to provide audit program and process information to auditors, those being audited and management staff who are responsible for ensuring audit findings are responded to appropriately. Conducting recurring facility environmental audits can provide assurances that facilities are responding adequately to constantly changing statutory and regulatory requirements and have a minimum of potential environmental risks. Audits can also identify situations where the client can better manage environmental liabilities by implementing new practices or technologies beyond what is required; making these audits a cost-effective management tool.

Phoenix also assisted in the development of a lessee audit program to be used in conjunction with the third party environmental audits in order to obtain a comprehensive review of all of the client-owned property. Conducting lessee environmental audits is a beneficial tool to determine lessees’ compliance with environmental regulations. Conducting environmental audits of lessees can provide assurances that tenants are responding adequately to constantly changing statutory and regulatory requirements and have a minimum of potential environmental risks. Audits can also identify situations where the client can better manage environmental issues by recognizing potential environmental liabilities of lessees’ operations.

Phoenix assisted in the development of an audit manual for use in conducting lessee environmental audits. The manual was developed to provide written guidance to communicate the objectives and scope of the lessee audit program, establish consistency of the lessee audits, and allow the program to be evaluated periodically against established performance criteria. Leased facilities should be audited based on the operations conducted at the facility which have a potential to impact the environment. The manual was designed to provide audit program information to auditors and management staff who are responsible for ensuring audit findings are responded to appropriately and in a timely manner.