Monday, December 8, 2008

SIC and NAICS Systems – Use in Stormwater Permit Rules

Industrial stormwater discharge permit requirements are largely driven by the Standard Industrial Classification (SIC) code assigned to the site. The stormwater regulation is one of the few environmental regulatory programs that use SIC codes. In 1997, the use of the North American Industry Classification System (NAICS) adopted by the US to replace the SIC code system. Both the SIC and NAICS systems were developed to organize and track information the US economy.

The basic difference in approach to the two systems is that the SIC system classifies establishments based on their economic output (i.e, what they produce or provide), and the NAICS classifies establishments according to the processes used to produce goods and services (i.e., what they do).

The basis for stormwater permitting rules remains the SIC code system. The only US EPA environmental regulatory program that had adopted the NAICS system is the Emergency Preparedness and Community Right-to-know Act (EPCRA) Section 313, commonly referred to as Toxic Release Inventory (TRI) reporting. The most significant difference between the two systems from a regulatory perspective is how they address “auxiliary” or “ancillary” facilities. [read more about auxiliary facilities]

For further information contact Caltha LLP at
Caltha LLP Website

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