Securing Critical Chemical Assets: The Responsible Care® Security Code Protection of Hazardous Installations from Intentional Adversary Acts European Commission Budapest 27 April 2005 Dorothy Kellogg American Chemistry Council

Chemicals Are Essential Safety & Security Other Critical Assets Economy The chemical industry is the only thing between us and living in huts. Gregory D. L. Morris Museum of American Financial History

Responsible Care® Security Code Analysis of Threats, Vulnerabilities and Consequences Information/Cyber Security Enhanced Security Measures Training, Drills & Guidance 3 Party Verification Leadership Commitment Documentation & Audits Communication Dialogue & Information Exchange Response to Security Threat & Incidence Change Management Continuous Improvement

RCSC Security Management System Document Act Security Measures Security Plans Training & Exercises Communicate Check Independent 3d party verification RCMS 3d party certification Plan Leadership Commitment Prioritize Assess Improve MOC Continuous Improvement The code can be divided into 4 broad actions: Plan by prioritizing and assessing security vulnerabilities to determine what needs to be done and the order in which it need to be done; Take the necessary actions to correct security gaps and enhance overall security; Check and verify that the actions identified have in fact been taken; and Periodically reassess the situation and take measures to address changes. Let’s take a little closer look at each of these elements. Audit

Prioritize Facilities Four Tiers: Tiers 1-3 – serious potential off-site impact Tier 4 – no expected serious off-site impact Based on: Attractiveness of the Target Consequence Severity Likelihood of Success

Assess Security Vulnerabilities Understand Security-Related Risks Prioritize Risks & Identify Countermeasures 4 Categories of Threat: Uncontrolled releases Theft Product contamination Significant economic disruption “Off-Site Impact” could be from any of the 4

Site Vulnerability Assessments Facility Characterization Assets Consequences Attractiveness Facility Threat Identification Threat intelligence Internal & external adversaries Characteristics/capabilities Vulnerability Analysis Attack scenarios Layers of protection Attractiveness Countermeasures Deter/Detect/Delay Recommendations Documentation

Security Enhancements: Physical Security Physical Security Examples: Perimeter Barriers Access Controls Surveillance Process Control Systems & Equipment Loss Prevention/Materials Control/Accountability Policies & Procedures Crisis Management & Emergency Response Plans Security Enhancements Must be Appropriate to the Conditions at the Site

Site Security Progress Tier 1 Tier 2 Tier 3 Tier 4 Complete Site Vulnerability Assessments Dec 02* June 03* Dec 03* Complete Implementation of Site Security Measures Dec 03 June 04 Dec 04 Verification of Physical Site Security Measures Mar 04* Sept 04* Mar 05* N/A Number of Facilities Reported 112 376 546 1005 2040 Facilities Completed SVAs; $2 Billion Invested since 9/11 * Reported to ACC

Reliance on Government & Other Infrastructure Transportation & Value Chain Cyber Systems Federal Government Information Cross-Sector Strategies Resources Information Protection State & Local Government Protection Response

RCSC & Government Security Programs Recommendations to non-ACC chemical assets US General Accountability Office -- http://www.gao.gov/new.items/d05327.pdf US Coast Guard Maritime Transportation Security Program US Customs-Trade Partnership Against Terrorism (C-TPAT) State Security Programs Proposed Federal Legislation

Resources Responsible Care® Materials http://www.responsiblecaretoolkit.com/security.asp ACC Site Security Guidelines http://www.accnewsmedia.com/docs/100/89.pdf ACC Transportation Security Guidelines http://www.accnewsmedia.com/docs/300/250.doc?DocTypeID=4&TrackID=

Conclusions Chemical Industry - National Strategic Asset Committed to Performance Security is Not Environment or Safety “Plus” Security Important before 11 September; Heightened by 11 September; Remains Critical Today

Dorothy Kellogg 011-703-741-5236 Dorothy_Kellogg@americanchemistry.com