ARTICLE
1 November 2006

Legislation Requires New Security Rules For Chemical Plants

FL
Foley & Lardner
Contributor
Foley & Lardner LLP looks beyond the law to focus on the constantly evolving demands facing our clients and their industries. With over 1,100 lawyers in 24 offices across the United States, Mexico, Europe and Asia, Foley approaches client service by first understanding our clients’ priorities, objectives and challenges. We work hard to understand our clients’ issues and forge long-term relationships with them to help achieve successful outcomes and solve their legal issues through practical business advice and cutting-edge legal insight. Our clients view us as trusted business advisors because we understand that great legal service is only valuable if it is relevant, practical and beneficial to their businesses.
Legislation signed by President Bush on October 4, 2006 requires the Department of Homeland Security (DHS) to publish interim-final rules on chemical plant security in the next six months.
United States Energy and Natural Resources
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Legislation signed by President Bush on October 4, 2006 requires the Department of Homeland Security ("DHS") to publish interim-final rules on chemical plant security in the next six months. Previous analyses by DHS found that 272 chemical plants in the United States are at risk of an attack or accident that could affect at least 50,000 people and there are an additional 3,400 plants for which more than 1,000 people would be at risk of harm from an attack. (See Debate Over Security for Chemical Plants Focuses on How Strict to Make Rules, by Eric Lipton, New York Times, sec. A, Column 1, Sept. 21, 2006, Late Edition-Final.) The legislation aims to reduce these risks.

Title V of the 2007 Department of Homeland Security Appropriation Act requires the Secretary of Homeland Security to establish "risk-based performance standards" for chemical facilities. The regulations will also require facilities that "present high levels of security risk" to develop and implement site-specific security plans.

The Secretary of Homeland Security is required to disapprove any site-specific security plans that do not meet the "risk-based performance standards," and is also required to audit and inspect chemical facilities. The legislation grants DHS the authority to assess civil penalties, compliance orders, and – ultimately – shut down any facilities in that are not in compliance.

Public drinking water systems regulated by the Safe Drinking Water Act and wastewater treatment facilities regulated under the Clean Water Act are exempt from the legislation.

This short, one page piece of legislation leaves many important gaps to be filled by DHS in its regulations, including: the list of covered chemicals, a definition for "high level of security risk," and the required contents for acceptable security plans. Alternate legislation introduced in Congress this year would have filled in many of these gaps, including the definition of a covered chemical, which was based the list of hazardous air pollutants set forth by section 112 of the Clean Air Act (see Chemical Facility Anti-Terrorism Act of 2006, H.R. 5695). Instead, Congress decided to leave these gaps to be filled by the DHS rulemaking process. DHS will need to move quickly to meet the six month deadline for interim final regulations, but the legislation does not exempt DHS from Administrative Procedure Act requirements, so interested parties will have advance notice of the proposed rules and an opportunity to provide comments to the agency.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

ARTICLE
1 November 2006

Legislation Requires New Security Rules For Chemical Plants

United States Energy and Natural Resources
Contributor
Foley & Lardner LLP looks beyond the law to focus on the constantly evolving demands facing our clients and their industries. With over 1,100 lawyers in 24 offices across the United States, Mexico, Europe and Asia, Foley approaches client service by first understanding our clients’ priorities, objectives and challenges. We work hard to understand our clients’ issues and forge long-term relationships with them to help achieve successful outcomes and solve their legal issues through practical business advice and cutting-edge legal insight. Our clients view us as trusted business advisors because we understand that great legal service is only valuable if it is relevant, practical and beneficial to their businesses.
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