CONFLICT MINERALS REPORTING – SECOND ROUND OF Q&A’s RELEASED Reply

On May 31, companies who report to the Securities and Exchange Commission (SEC) and manufacture products containing conflict minerals will need to submit their disclosures for 2013 to the SEC. With the deadline looming and this being the first reporting year, the SEC issued a second set of conflict minerals Q&A’s last week.

The link to the Q&A’s is located here.

http://www.sec.gov/divisions/corpfin/guidance/conflictminerals-faq.htm

There are 21 Q&A’s in the new document. The newly issued Q&A’s provide:

• further clarification on applicability of the reporting
• the extent to which organizations must investigate and disclose information
• clarification of terms and definitions
• further information on the necessary content of the reporting, audit
qualifications, and requirements and
• clarification of “due diligence”

In August 2012, the SEC issued a final rule on Section 1502 of the 2010 U.S. Dodd-Frank Wall Street Reform Act stating that publically-traded companies in the United States must evaluate and disclose their usage of conflict minerals (tin, tantalum, gold, and tungsten) throughout their manufacturing supply chain, track quantities purchased, and report on the origin of these products.

Companies who are not publically-traded are also affected as they need to address these requirements in order to maintain market-share with their customers who are publically traded. They must also be prepared to respond to customer requests regarding conflict minerals usage.

Some companies have been delaying action, anticipating successful attempts by a group of Original Equipment Manufacturers (OEMs) to repeal all or a portion of the law. Although some progress is being made, nonetheless, most companies still face customer supply chain inquiries and also need to be prepared to respond to meet initial regulatory deadlines.

Many companies are either using or considering using the International Electrotechnical Commission Quality Assessment System for Electronic Components (IEQC) QC 080000:2012 “Hazardous Substance Process Management System” (HSPM) standard to facilitate incorporating conflict minerals management into existing environmental and quality management systems.

For those companies affected by the Conflict Minerals regulations, the deadline to file a form SD with the SEC is just weeks away. If you require help with your reporting or need further assistance with developing and implementing systems to management conflict minerals and other product related reporting requirements, please contact Julie Muszalski at 508.970.0033 ext.124 or jmuszalski@capaccio.com.

Higher Hazardous Substances Important Update Reply

Until 2011, all chromium compounds, both hexavalent and non-hexavalent, were reported under the same category under the Toxics Use Reduction Act (TURA). However, because hexavalent chromium compounds pose much greater health risks to humans and are both chronically and acutely toxic, the Massachusetts Department of Environmental Protection (MassDEP) designated them as Higher Hazardous Substances (HHS) and their threshold was decreased to 1,000 pounds per year for otherwise used, processed, or manufactured as a by-product. Non-hexavalent compounds continue to be counted towards the 10,000 pounds otherwise used, and 25,000 pounds processed or manufactured thresholds.

Companies that exceeded the 1,000-pound threshold for hexavalent chromium compounds for reporting year 2012 were required to file a Form S to the MassDEP for the first time by July 1, 2013. If they also exceed the 1,000-pound threshold in reporting year 2013, they are required to file a Form S and develop a TUR plan for hexavalent chromium compounds by July 1, 2014.

The Toxics Use Reduction Institute (TURI) developed a fact sheet that explains the differences between hexavalent and non-hexavalent chromium compounds, hazards associated with hexavalent chromium compounds, examples of compounds that contain hexavalent chromium, uses of hexavalent chromium compounds, and alternatives that should be considered. Hexavalent chromium is often listed as “CrVI” on safety data sheets (SDS). Non-hexavalent chromium used in industry is predominantly, although not exclusively, trivalent chromium, which is often listed on an SDS as “CrIII.”

You can find the fact sheet on the TURI’s web-site. http://www.turi.org/TURI_Publications/TURI_Chemical_Fact_Sheets/Hexavalent_Chromium_Fact_Sheet

Click here for further explanation regarding higher and lower hazard substances. http://www.turi.org/Our_Work/Chemicals_Policy/Chemical_Lists/Higher_and_Lower_Hazard_Substances

The MassDEP developed a fact sheet that provided guidance on how to calculate threshold determinations for various uses of hexavalent chromium compounds. You can find the fact sheet on the Executive Office of Energy and Environmental Affairs’ website. http://www.mass.gov/eea/docs/dep/toxics/laws/crviguid.pdf

Formaldehyde

The MassDEP also designated formaldehyde as a HHS in 2012 because of its links to cancer and potential adverse reproductive outcomes. Companies that exceeded the 1,000-pound threshold for formaldehyde for reporting year 2012 were required to file a Form S to the MassDEP for the first time by July 1, 2013. If they also exceed the 1,000-pound threshold in reporting year 2013, they are required to file a Form S and develop a TUR plan for formaldehyde by July 1, 2014.

The Toxics Use Reduction Institute (TURI) developed a fact sheet that includes hazards associated with formaldehyde, common uses of formaldehyde, and alternatives that should be considered. http://www.turi.org/TURI_Publications/TURI_Chemical_Fact_Sheets/Formaldehyde_Fact_Sheet/Formaldehyde_Fact_Sheet

The MassDEP developed a fact sheet that provided guidance on how to calculate threshold determinations for various uses of formaldehyde. You can find the fact sheet on the Executive Office of Energy and Environmental Affairs’ website. http://www.mass.gov/eea/docs/dep/toxics/laws/frmlguid.pdf

Methylene Chloride

The MassDEP designated methylene chloride as a HHS in 2013. This means that companies need to start tracking usage, processing and manufacturing of methylene chloride in 2014. If the 1,000-pound threshold is exceeded in 2014, companies will have to file a Form S to the MassDEP by July 1, 2015.

The Toxics Use Reduction Institute (TURI) developed a fact sheet that includes, hazards associated with formaldehyde, common uses of formaldehyde, and alternatives that should be considered. http://www.turi.org/TURI_Publications/TURI_Chemical_Fact_Sheets/Methylene_Chloride_Fact_Sheet

If you have any questions regarding the above noted Higher Hazardous Substances designations and the required reporting and planning, please contact Travis Wheeler at 508.970.0033 ext. 115 or twheeler@capaccio.com.

Tier II Manager System Not Ready for RY 2013 Reply

Due to minor system issues, MEMA announced it will not be using the web-based Tier II Manager System for RY 2013. MEMA apologizes for any inconvenience this may cause.

Filers should use the EPA’s Tier II Submit software to submit RY 2013 Tier II reports to the SERC.

This software may be downloaded from the EPAs website here: http://www2.epa.gov/epcra-tier-i-and-tier-ii-reporting/tier2-submit-software

If you have any questions, please contact Travis Wheeler at 508.970.0033 ext. 115 or twheeler@capaccio.com.

Massachusetts Hoisting Machinery Regulation Revision Becomes Final Reply

On November 8, 2013, the Massachusetts Department of Public Safety (DPS) published the hoisting machinery regulation, 520 CMR 6.00. The changes to the regulation reflect 2010 changes to the hoisting law, Massachusetts General Laws (MGL) Chapter 146, Section 53, and comment from the July 8, 2013 public hearing.

520 CMR 6.00 requires that all operators of hoisting machinery complete an application and pass a test to obtain a license from the DPS. 520 CMR 6.00 is applicable to all hoisting machinery, including forklifts used on private or public property where the height of the lift exceeds 10 feet or the weight of the load exceeds 500 pounds.

The regulation includes an exemption of the Massachusetts hoisting license requirement for all operators if the company has a training program approved by the DPS and complies with the following requirements:

• A supervisory employee(s) who holds a hoisting license for the equipment being used must be on-site at all times during operation

• The company training program must be approved by the DPS biennially

• Authorized operators must be issued a company license that includes a picture of the employee, a list of hoisting machinery the employee is qualified to operate, and the name and signature of the supervisor who holds a license to operate that equipment. Employees can only be trained and certified to operate the specific equipment for which the supervisory employee holds a license issued by the DPS.

The application form for approval of an in-service training program can be found here:

http://www.mass.gov/eopss/docs/dps/engineering/appl-eng/form-approval-in-service-training-program-.pdf

The regulation incorporates two new license classifications; Class 1D – general industrial warehouse forklift equipment and Class 2D – Compact Hoisting Machinery. Any hoisting machinery licensee who holds a license with a Class 1 grade greater than 1D may also operate general industrial warehouse forklift equipment.

A link to the final regulation can be found here:

http://www.mass.gov/eopss/consumer-prot-and-bus-lic/license-type/hoisting/hoisting.html

For more information on how we can help with your hoisting program, please contact Colleen Walsh at 508.970.0033 ext. 129 or cwalsh@capaccio.com.

For a complete listing of CAPACCIO’s environmental, health and safety services, please visit: http://www.capaccio.com/Handouts/ServiceInfo/Capaccio_Services_Health_Safety_IH.pdf.