ITAA's Year 2000 Outlook March 19, 1999 Volume 4, No. 11 Published by the Information Technology Association of America, Arlington, VA Bob Cohen, Editor bcohen@itaa.org Read in over 80 countries around the world ITAA's Year 2000 Outlook is published every Friday to help all organizations deal more effectively with the Year 2000 software conversion. To create a subscription to this free publication, please visit ITAA on the web at https://www.itaa.org/transact/2ko utlooksub.htm. To cancel an existing subscription, visit https://www.itaa.org/transact/2kremove.htm. ITAA's Year 2000 Outlook is sponsored in part by CACI International Inc. and Y2Kplus. In this issue: · Study Finds Ingredients Lacking in Chemical Industry Y2K Response · Georgia Bill Seeks Answers from Regulated Entities · Court Conference Votes No on Y2K Liability Bills · European Central Bank to Take New Year's Eve Break · FAA Circling on International Flights · Business to Business · ITAA Y2K Information Center · Sponsor Advertising Study Finds Ingredients Lacking in Chemical Industry Y2K Response The chemistry of the situation is eye-catching: A new government report says that 85 million Americans live, work and play within a 5-mile radius of 66,000 facilities handling hazardous chemicals. The same report, issued by the U.S. Chemical Safety and Hazard Investigation Board (CSB), calls Y2K a "significant problem in the chemical manufacturing and handling sector." Some of the problems cited by the board echo the vulnerabilities of other industries. While large enterprises are unlikely to experience "catastrophic failures and business continuity problems," the situation for small and mid-sized operators is unclear. The board says the efforts of these firms appear to be "less than appropriate…" The report finds no emphasis or special mentions of Y2K technology hazards in the regulations of either the Environmental Protection Agency (EPA) or the Occupational Safety and Health Administration (OSHA). While federal agencies are working the Y2K tech nology and chemical safety issues, the CSB says gaps exist and specific plans to address them do not. Moreover, the report notes that the time for rulemaking, standards development, and creating reporting procedures has evaporated. Government inaction may offer a back-handed incentive. CSB notes that the EPA's Office of Enforcement is encouraging Y2K testing by stating its intent to waive civil penalties and recommend against criminal prosecution for environmental violations caused by such tests. Also missing is a clear picture of what multiple failures might mean. CSB notes that it has been unable to find a single Y2K-related failure, but "Surveillance of the industrial sector that handles high hazard chemicals is insufficient to draw detailed c onclusions." Other problems that could spill over for chemical manufacturers include the software and embedded microchips in process plants, poorly documented control systems, out of business vendors, and external events, such as power outages. CSB recommendations include creation of appropriate clearinghouse information and checklists. The emergency response capability at federal, state and local levels should receive special attention from the President's Council on the Year 2000 and be coord inated with the Federal Emergency Management Agency. A survey by the Emergency Response Research Institute late last year found less than one third of the emergency response organizations polled had begun Y2K contingency plans and less than one quarter looking at how external organizations-those which may require emergency services--are responding to the situation. The CSB suggests that batch processors consider delaying batches involving hazardous materials in process as clocks rollover either at 2000 or at other significant dates, or where Y2K test results are missing or inconclusive. Plans and staff should be re ady to take manual control of facilities, the report recommends, and the staffing and training implications of this requirement should be identified ahead of time. Shutdowns should be coordinated with local utilities and agencies. The CSB report synthesizes the viewpoints of many industry participants who attended a December 1998 workshop. One attendee, Charles Isdale, a consultant and senior lecturer on chemical engineering at Texas A&M University, agrees with the report's conten tion that small and mid-sized enterprises are something of a question mark: "The larger firms in the chemical industry as well as the hardware and software vendors in process control have been very active for some time. We couldn't get a good handle on the SMEs," Isdale said. Isdale says he anticipates isolated disruptions to chemical manufacturing as opposed to catastrophic accidents and adds that those segments of the industry that are subject to government regulation are farther along the remediation curve. Do problems for the industry lie offshore? In terms of the availa bility of raw materials from overseas, Isdale says the country's biggest exposure is petroleum. After that, he says, the U.S. chemical manufacturing industry is fairly self-sufficient. Self-sufficient or not, at least one workshop attendee indicated that the industry's Y2K efforts could go farther. Joe Anderson, an official with the Oil, Chemical and Atomic Workers Union, says more attention should be paid to preparing workers for emer gency response situations as well as to process start up and shut down operations. Because of the volatility of chemical reactions, he said process start up and shut down times are very dangerous. Anderson says his union has sent a letter to its local c hapters asking them to be proactive on the Y2K issue. A statement released with the report by the Senate Special Committee on the Year 2000 Technology Problem notes that the chemical industry experienced 19 accidents a day between 1988 and 1992, many resulting in death, major economic losses or evacuations. Georgia Bill Seeks Answers from Regulated Entities The Georgia Legislature is nearing passage of a bill which would put a wide array of organizations on the hook to provide Y2K status information, with $1000 a day fines for info offenders. SB 230 has been passed by the State Senate and a vote is expected in the House before adjournment next week. The measure would apply to entities regulated by the Georgia Public Service Commission, the Environmental Protection Division and the Department of Human Resources. Such entities include electric utilities and telephone companies, water and wastewater tr eatment providers, hazardous waste recyclers, health maintenance organizations, nursing homes and hospices. The bill would empower state regulators to examine the affairs of these entities, to collect Y2K status information, and to require each to submit a Y2K contingency plan. The measure would allow the state to survey these service providers as to their rea diness and to impose fines for those late in responding. Each agency is also given authority to audit these entities and to impose $1000 per day fines for failure to produce requested information. Failure of an entity to provide an essential service by not "reasonably and appropriately" planning for the Year 2000 could also result in a $10,000 fine. If enacted, the legislation could also let the sun shine in on Y2K programs good, bad and indifferent. A member of the Governor's Y2K Citizens Task Force says he believes that the information collected is going to be made publicly available. How user fr iendly such access is likely to be is an open issue, but he said it's conceivable that Georgians anywhere in the state could plug zip codes into a web based form and learn the Y2K status of their local utilities and government services. The task force me mber says that the state has surveys and follow-up call centers ready to go, pending passage of the bill. Court Conference Votes No on Y2K Liability Bills The Judicial Conference, presided over by Chief Justice William Rehnquist, has come out in opposition to provisions of Y2K liability bills that would federalize class action suits. As first reported by BNA, the Conference has criticized S. 96, S. 461 and HR 755 for the potential of these measures to flood federal courts and undermine their limited jurisdiction status. The conference also warned of substantial costs and delays. European Central Bank to Take New Year's Eve Break European Central Bank President Wim Duisenberg announced plans to close the European System of Central Banks on December 31, 1999 as a Y2K problem prevention measure. In a letter to the European Union council of finance ministers, Duisenberg said it woul d be "more efficient" if all member states declared the same bank holiday. The ESCB is composed of the European Central Bank and central banks in 11 member countries. FAA Circling on International Flights Federal Aviation Administration officials warned Congress this week that decisions will be needed soon on whether or not U.S. carriers and code-share flights will be allowed to fly to Y2K non-compliant countries. FAA Administrator Jane Garvey testified t his week that the International Civil Aviation Organization is gathering the necessary data and "very hard decisions" will be required after June 30. Speaking of June 30, Garvey said FAA systems will be fixed by that date. A General Accounting Office off icial questioned whether the agency could meet the date and perform an adequate level of testing. Business to Business Symantec Corporation, Cupertino, CA, has announced the availability of Norton 2000 as a Year 2000 solution for small businesses. MigraTEC, Inc., Dallas, TX, has signed an agreement licensing MigraTEC's Year 2000 software to Computer Horizons Corp. ITAA Y2K Information Center Solution Providers Directory http://www.itaa.org/script/2000vend.cfm ITAA*2000 Certification Program http://www.itaa.org/2000cert.htm Outlook Archive http://www.itaa.org/script/get2klet.cfm Legislative and Litigation Table http://www.itaa.org/year2000/legis.htm Calendar http://www.itaa.org/y2kcal.htm Vendor/User Status Questionnaires http://www.itaa.org/questmain1.htm Alternate Dispute Resolution (ADR) http://www.itaa.org/year2000/adr.htm Statement of Intention to Use ADR http://www.itaa.org/year2000/soi.htm, Y2K Mediators Seminar http://www.technologymediation.com/Y2K_seminar.htm Copyright ITAA 1999. All rights reserved. The Information Technology Association of America, 1616 N. Fort Myer Drive, Suite 1300, Arlington, VA 22209. Internet: http:\\www.itaa.org