{"operation":"document","citation":"PHMSA Guidance, SISP National Policy Memo (PDF)","title":"SISP National Policy Memo (PDF)","source_type":"guidance","agency":"Pipeline and Hazardous Materials Safety Administration","status":"guidance","official":true,"published_on":"2008-02-29","effective_on":"2008-02-29","summary":"SISP National Policy Memo (PDF) Document SISP_Policy_Memo_Final.pdf (37.63 KB) The Pipeline and Hazardous Materials Safety Administration’s (PHMSA) Office of Hazardous Materials Enforcement (OHME) (herein PHMSA) is implementing a riskbased enforcement program to focus our resources in a manner that will allow us to prioritize whom we inspect/investigate, what avenues we explore with the regulated entity to bring abou","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-guidance-sisp-national-policy-memo-pdf-7e7b661e.json","markdown":"https://regulus.evalyn.ai/document/phmsa-guidance-sisp-national-policy-memo-pdf-7e7b661e.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-guidance-sisp-national-policy-memo-pdf-7e7b661e","source_url":"https://www.phmsa.dot.gov/field-operations/programs-and-inspection-teams/sisp-national-policy-memo-pdf","body":"SISP National Policy Memo (PDF)\n\nDocument\n\n SISP_Policy_Memo_Final.pdf (37.63 KB)\n\n        The Pipeline and Hazardous Materials Safety Administration’s (PHMSA) Office of\n\nHazardous Materials Enforcement (OHME) (herein PHMSA) is implementing a riskbased enforcement program to focus our resources in a manner that will allow us to prioritize whom we inspect/investigate, what avenues we explore with the regulated entity to bring about compliance, and how we review our business data. The primary goal of this strategy is to focus our resources on those companies posing the greatest risk to transportation safety and security.\n\nAs part of this strategy, PHMSA implements this innovative enterprise inspection/investigation program called Systems Integrity Safety Program (SISP). SISP serves as a new avenue to ensure full compliance. Rather than engaging in an adversarial process, PHMSA will provide in-depth analyses, observations, and cooperative follow-up investigations to identify the root causes of the entity’s safety problems. Through the agreement, SISP will encourage continuous improvement and quality assurance programs to ensure sustained compliance and improved safety performance. SISP is designed to achieve PHMSA’s goal of enhancing the safe transportation of hazardous materials while collaborating with our stakeholders to achieve compliance.\n\n          Issued Date: Friday, February 29, 2008\n\n<<<PAGE 1>>>\n\nMemorandum\nU.S. Department\nof Transportation\nPipeline and Hazardous\nMaterials Safety Administration\nPOLICY MEMORANDUM\nFrom: R. Ryan Posten,\nDirector, Office of Hazardous Materials Enforcement\nTo: PHH-40, Office of the Director\nPHH-41, Special Investigations\nPHH-42, Eastern Region\nPHH-43, Central Region\nPHH-44, Western Region\nPHH-45, Southwest Region\nPHH-46, Southern Region\nDate: February 29, 2008\nSubject: Systems Integrity Safety Program Introduction, Guidelines and\nEligibility Criteria\nPROGRAM STATEMENT\nThe Systems Integrity Safety Program (SISP) is a PHMSA Office of Hazardous Materials\nEnforcement (OHME) operation to enhance and improve safety and security outcomes\nthru stakeholder collaborations.\nSUMMARY\nThe Pipeline and Hazardous Materials Safety Administration’s (PHMSA) Office of\nHazardous Materials Enforcement (OHME) (herein PHMSA) is implementing a risk-\nbased enforcement program to focus our resources in a manner that will allow us to\nprioritize whom we inspect/investigate, what avenues we explore with the regulated\nentity to bring about compliance, and how we review our business data. The primary\ngoal of this strategy is to focus our resources on those companies posing the greatest risk\nto transportation safety and security.\nAs part of this strategy, PHMSA implements this innovative enterprise\ninspection/investigation program called Systems Integrity Safety Program (SISP). SISP\n\n<<<PAGE 2>>>\n\nserves as a new avenue to ensure full compliance. Rather than engaging in an adversarial\nprocess, PHMSA will provide in-depth analyses, observations, and cooperative follow-up\ninvestigations to identify the root causes of the entity’s safety problems. Through the\nagreement, SISP will encourage continuous improvement and quality assurance programs\nto ensure sustained compliance and improved safety performance. SISP is designed to\nachieve PHMSA’s goal of enhancing the safe transportation of hazardous materials while\ncollaborating with our stakeholders to achieve compliance.\nDEFINITIONS\n(A) Regulated Entity – A person who—(i) transports hazardous material in commerce;\n(ii) causes hazardous material to be transported in commerce; (iii) designs,\nmanufactures, fabricates, inspects, marks, maintains, reconditions, repairs, or tests a\npackage, container, or packaging component that is represented, marked, certified, or\nsold as qualified for use in transporting hazardous material in commerce; (iv)\nprepares or accepts hazardous material for transportation in commerce; (v) is\nresponsible for the safety of transporting hazardous material in commerce; (vi)\ncertifies compliance with any requirement under chapter 51 of Title 49 of the United\nStates Code; or (vii) misrepresents whether such person is engaged in any activity\nunder clause (i) through (vi) (49 U.S.C. § 5103(b)(A)(i-vii)).\n(B) Systems Integrity Safety Program (SISP) – A new risk-based approach that serves as\nan alternative to the standard enforcement review, prosecution, and sanction program\ncurrently in existence. The primary focus of this program will be broader in-depth\nanalyses, observations, and cooperative follow-up investigations through the use of an\nagreement concept.\n(C) SISP Agreement – The signed agreement between PHMSA and the regulated entity\nentering into the SISP. The agreement spells out the legal operating terms under the\nprogram that both parties must adhere to during the term of the agreement.\n(D) Probable Violations – Any issues identified that appear to fail to comply with the\nHazardous Materials Regulations (HMR) (49 C.F.R. Parts 171-180 or the Hazardous\nMaterials Statutes (49 U.S.C. Subtitle III, Chapter 51).\n(E) Corrective Action – Actions taken to eliminate any probable violations, to ensure\ncompliance and to eliminate harm resulting from the probable violations.\n(F) Imminent Hazard – The existence of a condition relating to hazardous material that\npresents a substantial likelihood of death, serious illness, severe personal injury, or a\nsubstantial endangerment to health, property, or the environment.\n(G) Serious Incident – Any event resulting in death, serious illness, severe personal injury\nor resulting in a substantial endangerment to health, property or the environment. (For the\nfull definition see http://hazmat.dot.gov/pubs/inc/serious_incident_new_def.pdf.)\n2\n\n<<<PAGE 3>>>\n\n(H) Person – An individual, corporation, company, association, firm, partnership, society,\njoint stock company; or a government or tribe offering a hazardous material for\ntransportation in commerce or transporting a hazardous material to support a commercial\nenterprise. This term does not include the United States Postal Service or, for purposes\nof 49 U.S.C. § 5123 and 5124, a Department, agency, or instrumentality of the\ngovernment (49 C.F.R. § 171.8).\nPROGRAM DESCRIPTION\nPHMSA is implementing a risk-based enforcement system to focus our resources by\nprioritizing whom we inspect and investigate, what avenues we explore with the\nregulated entity to bring about compliance, and how we review our business data. The\nprimary goal of this strategy is to focus our resources on those companies posing the\ngreatest risk to transportation safety and security.\nThe first part of this risk-based enforcement system involves targeting our current\nenforcement activities covered in 49 CFR Part 107. PHMSA reviews our business data\nto determine what entities pose the highest risk, performs inspections and brings civil\npenalty actions to encourage compliance. This practice will continue to be PHMSA’s\nprimary means of ensuring compliance. However, PHMSA is now implementing a new\nprogram called Systems Integrity Safety Program (SISP) to provide an alternative\nmechanism to bring about compliance.\nUsing criteria similar to those used to select companies for inspection, PHMSA will\nidentify entities as candidates for SISP based on a history of non-compliance and other\nindications of risk. These high-risk entities likely would be selected for a traditional\nenforcement inspection under Part 107 but will be offered the unique opportunity to\nparticipate in SISP in an effort to ensure better compliance through the implementation of\nsafety processes. Participation in SISP is entirely voluntary. The decision of any party\nnot to participate in SISP is NOT a selection factor for enforcement inspections; however,\na decision not to participate will return that party to the traditional enforcement\ninspection pool.\nThe SISP program will be implemented through a SISP Agreement. Each Agreement\nwill be comprised of three phases. During the first phase, the participant will provide\ncomprehensive systems information and PHMSA will provide data analysis. The goal of\nthe first phase is to identify probable causes of the participant’s safety problems. The\nsecond phase will involve site visits, interviews and implementation of corrective action.\nThe third phase is designed to provide long-term solutions to ensure continued\ncompliance and safety.\nPHMSA may use the information, data and analyses gathered or developed during the\nSISP process to identify other regulated entities who present a high level of risk but have\nnot been identified using the data currently available. PHMSA will not take enforcement\naction against third parties based on observations or probable violations discovered solely\n3\n\n<<<PAGE 4>>>\n\nduring SISP activities; however, PHMSA may conduct a separate investigation of the\nthird-party.\nPHMSA and the SISP participant will provide cooperative education and will apply best\npractices to promote the integrity of hazardous materials transportation systems. Not\nonly will the program allow PHMSA to disseminate best practices to SISP participants\nand to other regulated entities, the program also will allow PHMSA to gain insight into\nthe business processes of the regulated community. PHMSA will apply this knowledge\nin its development and implementation of future regulatory activities.\nA company successfully completing the SISP program as specified in the SISP\nAgreement will not be subject to PHMSA enforcement actions for probable violations\ndiscovered during the term of the Agreement. PHMSA will exercise this enforcement\ndiscretion only if the participant comes into full compliance. The participant may also\ndevelop and implement a suitable quality control plan to avoid the recurrence of similar\nproblems.\nHowever, PHMSA will pursue its enforcement options for probable violations that\npresent an imminent hazard or that demonstrate a criminal (willful) intent. Any breach of\nthe SISP agreement will constitute a condition for termination of the agreement, and all\nbenefits of program participation may be forfeited. Any probable violation discovered\nafter the SISP agreement has expired may be submitted to the Office of Chief Counsel for\nprosecution or appropriate action.\nI. SISP Eligibility\nPHMSA will analyze its business data on an approximately semi-annual basis to\ndetermine eligibility for the program and to determine which entities are selected as SISP\ncandidates. Participation by regulated entities in SISP is limited by specific eligibility\ncriteria. The criteria are designed to maximize the efficient use of agency resources by\nsharing our expertise with high risk stakeholders. PHMSA will incorporate and review\nnew data as it is received.\nWhile PHMSA reserves the right to use its discretion in the allocation of its resources\nwhen selecting and engaging an eligible candidate for a SISP participant, the following\ncriteria are a basic requirement.\nA person (49 C.F.R. § 171.8) must meet at least one of the following criteria within the\nprior three (3) year period:\n(1) More than 50 hazardous materials incidents of a Section 172.504 Table 2 material\nin non-bulk packaging;\n(2) More than 3 hazardous materials incidents of a Section 172.504 Table 2 material\nin an intermediate bulk or portable tank packaging;\n(3) More than 1 hazardous materials incidents of a Section 172.504 Table 1 material\nin a packaging other than a cargo tank motor vehicle or railroad tank car;\n4\n\n<<<PAGE 5>>>\n\n(4) More than 1 “serious incident” as defined by Section 171.8 or any hazardous\nmaterial in a packaging other than a cargo tank motor vehicle or railroad tank car;\nor\n(5) Has been ordered or recommended by PHMSA to perform a safety recall of a\nDOT specification, UN Standard, or DOT Special Permit packaging.\nA person meets these criteria irrespective of whether it was directly or indirectly\ninvolved. For example, the carrier, the freight forwarder and the original shipper could\nall be identified with a hazardous material incident. In addition, a person is eligible if it\n(6) Is identified through adverse trends based on data analysis of accidents and/or\ninvestigations, or\n(7) Has more than three (3) separate closed PHMSA civil enforcement case actions or\nfive (5) separate closed PHMSA enforcement actions and/or Warning Letters\nwithin the prior five (5) year period.\nPHMSA will use the following criteria to prioritize the entities meeting the eligibility\ncriteria:\n(1) Regulated entity meets the requirements of more than one eligibility criteria;\n(2) Regulated entity’s operations include multiple facilities;\n(3) Documented OHME investigations identifying safety related trends;\n(4) Regulated entity is engaged in high risk/high consequence functions relating\nto the transportation of hazardous materials;\n(5) Regulated entity is registered as a shipper of TIH, radioactive, and/or\nexplosive materials; and\n(6) Resource availability.\nII. The Agreement\nOnce a person is selected as a candidate for the program, PHMSA will contact the entity\nto solicit participation in SISP. If the entity chooses to participate, then PHMSA and the\nentity (the participant) will enter into a SISP agreement that conveys the operational and\nlegal terms and limitations of the program. Throughout the agreement, PHMSA will\nprovide guidance for the purpose of enhancing safety and compliance. The SISP\nAgreement will explain the SISP process and legal limitations, including, but not limited\nto, the requirement for full disclosure and production of data, processes, systems and\noperations by the SISP participant in order to facilitate a complete and accurate\nassessment.\nNOTE: The SISP program or SISP agreement does not authorize non-compliance activity\nor allow transportation in violation of the Hazardous Materials Regulations.\nThe SISP Agreement describes the basic framework for participation in the program, but\nis designed to give both parties flexibility as the agreement progresses. Accordingly, a\nminimum of three (3) addenda to the SISP Agreement are contemplated which will detail\n5\n\n<<<PAGE 6>>>\n\nthe requirements and responsibilities of each party. These addenda will be negotiated\nbetween PHMSA and the participant. An addendum will be created at the beginning of\neach of three Phases.\nPhase 1 – PHMSA will discuss the basis for the participant’s selection to participate in\nthe program. Based on that information, PHMSA and the participant will identify the\ndocuments and information PHMSA investigators need to conduct an initial analysis of\nthe participant’s systems (e.g., operations, quality assurance). The Phase 1 Addendum\nwill detail the information participant will provide to PHMSA and will set timetables for\nthe production and the analysis of that information.\nPhase 2 – PHMSA and the participant will cooperatively determine sites (facilities,\nlocations) for inspection based on the probable causes of the participant’s transportation\nsafety problems identified in Phase 1. The sites for inspection will be identified in the\nPhase 2 Addendum. Phase 2 may be an iterative process and may require the adoption of\nmultiple addenda.\nSite visits will provide the opportunity for the participant and PHMSA to observe jointly\nthe current operations and any improvements resulting from prior site visits. PHMSA\nwill conduct an exit briefing following each site visit and will identify any probable\nviolations. PHMSA will also provide feedback to the participant regarding quality\nassurance items and best business practices.\nPhase 3 – PHMSA will prepare a recommendation report summarizing its findings\nthroughout the Agreement. In addition, PHMSA will suggest actions the participant\ncould take to ensure continued compliance with the Hazardous Materials Regulations.\nPHMSA may also suggest actions the participant could take that would promote safety\nbeyond the minimum regulatory requirements; however, the participant is under no\nobligation to implement the latter actions.\nV. APPLICABILITY/LEGAL STATEMENT\n(1) This Policy sets forth factors for consideration that will guide the Agency in the\nexercise of its enforcement discretion. It states the Agency’s views as to the proper\nallocation of its enforcement resources. The Policy is not final agency action and is\nintended as guidance. This Policy is not intended, nor can it be relied upon, to create any\nrights enforceable by any party in litigation with the United States. PHMSA may decide\nto follow guidance provided in this document or to act at variance with it based on its\nanalysis of the specific facts presented. This Policy may be revised without notice to\nreflect changes in PHMSA’s approach to providing incentives under the SISP program,\nor to clarify and update text.\n6\n\n<<<PAGE 7>>>\n\n(2) Entities considering whether to take advantage of this SISP Policy should review\nthis Policy and seek relevant legal advice from private counsel. No attorney for PHMSA,\nthe Department of Transportation, or the United States will render legal advice on\nwhether or not any company should take advantage of this Policy.\nVI. PUBLIC AVAILABILITY\nUpon mutual agreement of the parties, certain details regarding participation in the SISP\nagreement may be publicized. PHMSA retains the right to release information regarding\noutcome of the SISP agreement.\n#\nAttachments:\nTemplate SISP Agreement\nTemplate Exit Briefing\nTemplate Recommendation Report\n7","truncated":false,"body_characters":17412}