Check the /etc/envd.conf file to make sure it looks fine (mine is shown below). envd logs to syslog (/var/adm/syslog/syslog.log), so check there to see if you can find the root of the problem. Hope that helps!
-Hazem
/etc/envd.conf:
# more /etc/envd.conf
# @(#)B.11.11_LR
# envd reads its configuration information when the envd daemon
# starts, and when it receives a SIGHUP signal to restart itself.
#
# This configuration file contains comment lines, event lines,
# and action lines. Lines beginning with the # character in
# the first column are comment lines, and all characters
# up to the subsequent new-line character are ignored.
# The syntax of event lines and action lines are:
#
# event:message_indicator
# action
#
# The event line is composed of two fields: event and message_indicator;
# single colon separated, without any blanks interspersed. Recognized
# events include OVERTEMP_CRIT, OVERTEMP_EMERG, FANFAIL_CRIT, and
# FANFAIL_EMERG. The message indicator field takes only a binary value,
# and may be specified as either 'y' or 'n', indicating to log event messages,
# or not, upon the occurrence of an event. All event lines must start from
# the first column of the line. Invalid event lines will be taken
# as action lines.
#
# The action lines for an event may span across several lines,
# but the syntax of every line must be understood by /usr/bin/sh.
# No parsing or syntax checking is performed on the action lines.
#
# The example below configures envd to log the warning message at
# OVERTEMP_CRIT or FANFAIL_CRIT, and to log emergency messages and perform
# system shutdown immediately at OVERTEMP_EMERG or FANFAIL_EMERG, in order
# to preserve data integrity.
OVERTEMP_CRIT:y
OVERTEMP_EMERG:y
/usr/sbin/reboot -qh
FANFAIL_CRIT:y
FANFAIL_EMERG:y
/usr/sbin/reboot -qh
