Peter Knaack- Post 9-11

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Emergency Preparedness in Canada - Post September 11th

Peter Knaack

Marketing Manager

Levitt-Safety Ltd.

  Business as usual today requires an expanded commitment to both emergency

response and business interruption planning

 The ability of less than two-dozen terrorists to destabilize the global economy through a determined terrorist enterprise during the autumn of 2001 has thrust upon Canadians and Americans alike an entirely new domestic security situation. The potential for further attacks and the likelihood that such attacks will have even more dramatic human and economic consequences has led the governments of both countries to enact a series of

measures designed to reduce this continent's overall profile for attacks by terrorists with unconventional means including weapons of mass destruction.

 
In itself, the large volume of trade conducted between Canada and the United States goes far to justify several new joint security measures that have recently been enacted by the governments of both nations in the hopes of reducing this continent's overall vulnerability to terrorist attacks. On average nearly $1.2 billion U.S. in trade crosses between both countries each and every day. The impact of the war on terrorism on Canadian business

does not on the surface appear as apparent as the involvement of our Armed Forces as part of this campaign in places such as Afghanistan or the Persian Gulf. Still with a front line that could potentially be anywhere the ability of this country's corporate and industrial sectors to embrace and implement a number of new legislative measures will go far in reducing this country's overall appeal as a target for international terrorists.

 
The necessity that companies plan for unexpected emergencies has always been underscored by a myriad of legal and moral obligations. Best practice and due diligence concerns alone ensured that most jurisdictions in this country encouraged employers to maintain a written occupational health and safety program on at least an annual basis. Traditionally such programs described\ in detail a series of pre-determined procedures for dealing with the sudden emergence of unexpected situations at a workplace. These might include natural disasters such as earthquakes or floods. For the most part, though,

such emergency plans would center on the steps required to mitigate the potential for harm derived from unexpected chemical spills, fires and other industrial accidents. Until the events of September 2001 unfolded to teach us otherwise, the focus of conventional emergency plans in this country has been primarily on the protection of an organization's people, plant and process from industrial accidents and unexpected natural events.

 
Arguably the potential for significant economic and other negative impacts to Canadian business has never been greater than today. Despite this fact, Canadian businesses have only recently begun to assess the potential for harm to their operations that could be derived from the actions of criminals, terrorists, or unbalanced individuals. The development of a business interruption plan remains the exception rather the rule for the

majority of Canadian businesses. Aside from a number of high profile corporations, Canadian business managers have for the most part largely not seen the necessity to account for unexpected events such as the recent SARS outbreak in Ontario. Events such as these, though, can have an undeniably negative impact on the future viability of an affected organization. For instance during the first wave of the SARS outbreak in Ontario one important Canadian employer, Hewlett-Packard, was forced to shut down an entire

Toronto-area office complex after one of its employees had been diagnosed with the disease. In the process almost 200 people who worked at that facility were forced out of work and into a ten-day voluntary quarantine period.

On the most basic level a business interruption plan will help an organization to minimize the financial, human and other impacts that could result out of an unexpected interruption of normal business activities. The development of a clear, concise business transition plan can go far to anticipate and hence mitigate the potential for harm to an organization, its

staff, customers, finances as well as its future business prospects. In addition a formal business interruption plan can buffer a corporation from any hidden costs that might not be covered under existing insurance arrangements including the loss of customers or business standing. The economic and strategic necessity for some industries to develop a business

interruption plan has not been lost on this country's lawmakers. Although no mandatory requirements presently exist for corporations to develop a business interruption plan some of the latest federal border security and transport of dangerous goods measures go far to define and mandate action steps that come very close to entrenching the need for corporations to maintain both an emergency response as well as a business interruption plan.

Three such new legislative initiatives include the new federal "Partners in Protection" program, changes to the "Canadian Environment Protection Act" as well as the release of a new series of federal "Transportation of Dangerous Goods" regulations. In the end a business interruption plan can be viewed as qualitative augmentation of traditional emergency planning activities including for example the prioritization of workplace hazards and potential emergency situations.

New Joint Canada / U.S. Customs and Border Initiatives

Partners in Protection (PIP)

 One of the key new combined U.S. Canadian border security initiatives to

come out of the aftermath of the September 11th terrorist attacks is the new

"Partners in Protection" (PIP) border security program. Once fully implemented this new program will assist in securing the flow of low-risk goods across the border between Canada and our major trading partner, the United States. In addition to its value as a counter to the designs of terrorist organizations such as al-Qaeda and Hisbollah, this new bilateral border security program will also act to reduce this country' appeal as a

base for the activities of domestic and international smugglers and other organized crime groups.  While the program has been envisioned as voluntary measure, organizations choosing not to participate may find themselves at long-term competitive disadvantage. In addition the program has the promise to further augment an organization's own security processes through the implementation of security enhancements such as employee screening. To become eligible under the new PIP program an organization must investigate and answer a number of detailed questions relating to physical security,

personnel security and service providers and other external business relationships.

Organizations registered under auspices of the PIP initiative will be able to take part in the new joint Canada / U.S. "Free and Secure Trade" (FAST) harmonized border control program. This new joint initiative, a program involving the Canada Customs and Revenue Agency, Citizenship and Immigration Canada, the United States Customs Service, and the United States Immigration and Naturalization Service, will move to streamline the flow of goods between the United States and Canada. Companies, carriers and registered

drivers approved under the program will be pre-cleared to move shipments between either country achieving a reduced cost of compliance coupled with greater certainty and speed. In addition the FAST program aligns the requirements of Canada's PIP program with those of the equivalent U.S. Customs Trade Partnership Against Terrorism (C-TPAT) program. The number of FAST border crossing points is expected to expand from twelve in late 2003 to encompass all remaining major commercial border crossings between Canada and the United States by the end of 2004.

New Hazmat and TDG Initiatives

New Environmental Storage and Reporting Rules

 Environment Canada has recently proposed a new set of environmental emergency regulations. These regulations will become part of section 200(1) of the Canadian Environment Protection Act, 1999. The new environmental storage and reporting rules contained within the act require any industrial facility that stores or uses toxic substances to prove that they are able to respond to a potential environmental emergency situation at their facility in an appropriate and efficient manner. Present estimates by Environment

Canada suggest that roughly 1,500 companies may become directly affected by the new regulatory package.

 
Specifically, employers will be required by law to provide Environment Canada with information on the quantity and location of specific toxic substances. These companies will need to report to the government on the preparation and implementation of an emergency response plan that addresses each substance being used. This detailed plan must identify the types of emergencies that might occur at the facility, the potential for onsite and

offsite impacts from such an emergency, and any actions taken by the facility to prepare, prevent, and respond to such an event. Industry participants will initially have six months to confirm with the minister that an emergency plan has been developed, and one year to notify the minister that the plan has been implemented and tested. Finally the law will

require that employers put measures in place that will ensure that the plan is current, comprehensive and effective.

 
The proposed regulation identifies a list of 174 substances ranging from xylene to acetaldehyde that will require a facility to develop and maintain an emergency response plan on the books. The prescribed substances were selected based on their potential to (i) have an immediate or long-term harmful effect on the environment or biodiversity; (ii) constitute a danger to the environment on which human life depends; or (iii) constitute a danger to human life or health. A complete list of these chemicals containing their

proper names as well as the CAS and UN numbers can be found on the margin of

this page.

 Clear Language Regulations for TDG

 August 2002 saw the release of new "clear language" "Transportation of Dangerous Goods" (TDG) regulations. This amended series of Canadian TDG regulations represents a complete re-write and re-organization of the original set of national TDG rules. The primary change under the new regulations was a stipulation that all organizations involved in the manufacture of dangerous goods or products containing dangerous goods cannot

offer them for transport unless they have been properly classified. By extension the new regulations significantly increased the number of products that necessitate the development and implementation of a corporate "Emergency Response Assistance Plan" (ERAP). While the immediate intent of the ERAP requirements of the new TDG regulations is to provide on-site assistance to local authorities in the event of a conventional spill or

accident involving the dangerous goods, the ERAP is also of significant value in minimizing the potential for harm that could be derived from a criminal or terrorist inspired incident.

 In addition to addition of an expanded ERAP requirement, the new legislation requires all employers to ensure that any employee entrusted with TDG transportation or handling issues have been provided with access to appropriate TDG training. Anyone tasked with responding to TDG calls over the phone must be able to provide technical information to the caller, or be able to find someone who can provide the required information without

directing the caller elsewhere or hanging up. Hence these new regulations apply equally to shipping, receiving, customer-service and even to so-called support functions that may have been tasked responding to TDG queries over the phone.

 
Preparation has always been to hold uncertainty at bay. Emergency time should never be considered to be adequate planning time. Considering the new global and continental threat environment the prudence for Canadian business owners to develop an emergency response plan augmented by an appropriate business interruption plan cannot be stressed enough. The development of these kinds of plans also does not need to be time consuming, onerous or expensive. A number of useful planning aids exist including one issued by the Canadian Standards Association (CSA) entitled "Emergency Planning for

Industry" (CAN/CSA-Z731-95). This CSA standard provides clear step-by-step

direction for those tasked with the development of a corporate emergency

response plan. Regardless of the planning tool selected it is important that planning guide chosen outline in detail the steps an organization should take to map, implement, review and periodically test and update an emergency response and business interruption plan.

 
The financial status and future viability of some of North America's premiere air carriers should be proof enough of the importance of emergency response planning coupled with a workable business interruption plan.

  Regular functional drills that test the validity of the emergency response mechanisms developed, however, are no less relevant to reducing the risks associated with the new post September 11th security environment. Similarly communicating the new plan and providing regular training and re-training sessions to staff and management alike can make the difference between success and failure. Emergency planning has never been an option. In the end, recognizing and eliminating potential gaps in a corporation's emergency

response inventory can go far to counteract the potential for harm that can be derived by anything from a conventional industrial accident to the deliberate acts of criminals or terrorists.