On April 9, 2007, the U.S. Department of Homeland Security (DHS) issued new security regulations (6 CFR 27) that are likely to affect many chemical processing, manufacturing, and storage facilities. The rules require facilities to:

• identify any possession of hazardous "Chemicals of Interest";
• prepare "Security Vulnerability Assessments" (SVAs), which identify facility security vulnerabilities; and 
• develop and implement "Site Security Plans" (SSPs), which include measures that satisfy the identified risk-based performance standards.

As of June 8, 2007, facilities must determine if they possess actionable quantities of certain hazardous chemicals. If so, they will need to complete a preliminary screening assessment ("Top Screen") that determines the level of risk associated with the facility. Based on the Top Screen information, the DHS will classify a regulated facility into one of four risk tiers.

In approximately six months, if a chemical facility preliminarily qualifies as "high risk," its owner will receive a notice from DHS and be required to prepare and submit an SVA and SSP within 120 days. The DHS will validate these submissions through audits and site inspection.

Owners of facilities may not wish to wait for DHS notification, but might rather take proactive measures now.

There are several benefits to acting in advance of DHS notification. A company engaging early on this issue can establish a strategy that enables it to more expertly discuss the implications of this regulation with management and then make informed decisions about the regulation and the compliance impacts on operations. A plan can then be developed that allows the company to meet the objectives of the regulation in a manner that is balanced with its operational, financial, and business objectives.

Marsh is ready to assist those firms interested in initiating the development of an SVA or SSP for their facilities or desiring an independent evaluation of their existing assessment and plans.

We combine the technical resources of our Risk Consulting Practice with our deep knowledge of the chemicals sector and Kroll's Security Practice expertise to provide an integrated solution to assist clients through the DHS compliance process.