New EPA Regulations Risk Management Program (RMP) & Chemical - PowerPoint PPT Presentation

New EPA Regulations – Risk Management Program (RMP) & Chemical Spill Prevention Rules Michigan Chemistry Council Annual Meeting MAY 17, 2016 CHEMICAL EMERGENCY PREPAREDNESS & PREVENTION SECTION EPA, REGION 5

Risk Management Program (RMP) Proposed Rule • Proposed rule published March 14, 2016 at https://www.gpo.gov/fdsys/pkg/FR-2016-03-14/pdf/2016- 05191.pdf • Comments were due before May 13, 2016. at http://www.regulations.gov/#!docketDetail;D=EPA-HQ-OEM- 2015-0725 • Proposed Changes to RMP Rule Q&As https://www.epa.gov/rmp/frequent-questions-proposed- changes-risk-managment-program-rmp-rule CHEMICAL EMERGENCY PREPAREDNESS & PREVENTION SECTION 2 EPA, REGION 5

Background On August 1, 2013, President Obama issued Executive Order (EO) 13650: Improving Chemical Facility Safety and Security following several catastrophic chemical facility incidents in the United States. ◦ Focus is to reduce risks associated with hazardous chemicals to owners and operators, workers, and communities by enhancing the safety and security of chemical facilities. The keys areas of emphasis under the EO are: ◦ Strengthening community planning and preparedness, ◦ Enhancing federal operational coordination, ◦ Improving data management, and ◦ Modernizing policies and regulations. ◦ EPA issued a request for information (RFI) on July 31, 2014, and ◦ Convened a Small Business Advocacy Review panel on November 4, 2015. CHEMICAL EMERGENCY PREPAREDNESS & PREVENTION SECTION 3 EPA, REGION 5

Risk Management Program rule ◦ Promulgated in 1996 under Section 112(r) of the Clean Air Act Amendments ◦ Applies to all stationary sources with processes that contain more than a threshold quantity of 140 regulated substances (approx. 12,500 sources) ◦ Includes a wide variety of industry sectors including: refining, chemical manufacturing, energy production, ammonia refrigeration, water treatment, bulk storage, chemical distribution, agricultural retail, and chemical warehouses ◦ Regulated substances listed based on toxicity, volatility, and flammability criteria ◦ Requires the source to develop a Risk Management Plan (RMP) ◦ Addresses elements aimed at preventing accidental releases and reducing the severity of releases that occur ◦ Prepare and submit an RMP to EPA at least every 5 years ◦ Covered processes fall within one of three prevention program levels based on: ◦ The potential for offsite consequences from a worst-case accidental release; ◦ Accident history; and ◦ Regulation under OSHA Process Safety Management Standard (PSM) CHEMICAL EMERGENCY PREPAREDNESS & PREVENTION SECTION 4 EPA, REGION 5

OSHA Process Safety Management Standard (PSM) ◦ Process safety management program for highly hazardous chemicals aimed at preventing and minimizing occupational/onsite exposure ◦ Authorized by Clean Air Act Amendments of 1990 ◦ OSHA PSM standard found at 29 CFR part 1910.119 ◦ Focuses on protecting workers from chemical accidents ◦ Promulgated in 1992 ◦ OSHA PSM & EPA RMP form the U.S. regulatory framework for prevention of catastrophic chemical accidents at fixed facilities o OSHA also considering revisions of the PSM standard and has initiated a Small Business Advocacy Review Panel. For more info, see: https://www.osha.gov/dsg/psm/index.html CHEMICAL EMERGENCY PREPAREDNESS & PREVENTION SECTION 5 EPA, REGION 5

RMP Program level comparison PROGRAM 1 PROGRAM 2 PROGRAM 3 • • • Worst case analysis Worst case analysis Worst case analysis • • • 5-year accident history 5-year accident history 5-year accident history • • • Document management system Document management system Document management system Prevention Program • • Certify no additional prevention steps Safety information Process safety information • • needed Hazard review Process hazard analysis (PHA) • • Operating procedures Operating procedures • • Training Training • • Maintenance Maintenance • • Incident investigation Incident investigation • • Compliance audit Compliance audit • Management of change • Pre-startup review • Contractors • Employee participation • Hot work permits Emergency Response Program Coordinate with local responders Develop plan/program and coordinate with Develop plan/program and coordinate with local responders local responders CHEMICAL EMERGENCY PREPAREDNESS & PREVENTION SECTION 6 EPA, REGION 5

RMP Program level applicability PROGRAM 1 PROGRAM 3 PROGRAM 2 10,628 Facilities* 642 Facilities 1,272 Facilities* Processes subject to Processes that would Processes not eligible OSHA’s PSM or in one of not affect the public in for Program 1, not 10 specified NAICS the event of a worst- subject to Program 3 codes case release & no ◦ Mainly water & ◦ Larger facilities or those accidents with offsite wastewater treatment in with complex processes Federal OSHA states consequences in the last ◦ Examples include: refining, five years ◦ Additional hazard chemical manufacturing, energy production, water assessment, accident ◦ Small quantities of treatment prevention, management, flammables, less volatile and emergency response ◦ Covered by OSHA’s PSM toxics requirements accident prevention ◦ Limited accident program and include prevention including additional hazard hazard assessment and assessment, emergency response management, and requirements emergency response requirements *Analysis reflects OSHA change to PSM retail exemption issued July 2015. See OSHA PSM Retail Exemption Policy at: https://www.osha.gov/pls/oshaweb/owadisp.show_document?p_table=INTERPRETATIONS&p_id=29528 CHEMICAL EMERGENCY PREPAREDNESS & PREVENTION SECTION 7 EPA, REGION 5

Overview of RMP Proposed Revisions P1 P2 P3 Third-party audits (applies to the next scheduled audit after an √ √ accident) [Estimated 150 accidents/year] Incident Root Cause Analysis (only for facilities with √ √ accidents/near misses) [Estimated 300 incidents/year] Safer Alternatives Analysis (applies to a subset of P3 in certain √ NAICS codes*) [Estimated 1,692 Facilities/4,308 Processes] Coordinating Emergency Response Program Requirements √ √ with Local Responders Emergency Response Exercises √ √ Information Sharing √ √ √ *Applies to paper manufacturing, petroleum and coal products manufacturing, and chemical manufacturing facilities CHEMICAL EMERGENCY PREPAREDNESS & PREVENTION SECTION 8 EPA, REGION 5

Third-party compliance audits Current Requirements: Facility owners/operators must perform compliance audits every three years. Proposed revisions require all P2 and P3 facilities to conduct a third-party audit in lieu of a compliance audit following an RMP reportable accident.* ◦ Must be completed within 12 months of an RMP reportable accident or within 3 years of completion of the previous compliance audit, whichever is sooner. ◦ Note that this audit and its schedule are independent of the incident investigation requirement and its schedule. ◦ Same scope as the current compliance audit provisions (i.e., audit prevention program implementation for all covered processes). ◦ EPA is proposing criteria for auditor independence, impartiality, and competence. * RMP reportable accident means an accidental release meeting the criteria in §68.42(a) from a covered process at a stationary source (i.e., includes accident with deaths, injuries, evacuations, sheltering in place, property damage, or environmental damage). CHEMICAL EMERGENCY PREPAREDNESS & PREVENTION SECTION 9 EPA, REGION 5

Incident investigations and root cause analysis Current Requirements: Facility owners/operators must conduct incident investigations following an incident that resulted in or could have resulted in a catastrophic release. Proposed revisions (Applies to P2 and P3): ◦ Clarify/emphasize current investigation requirements for incidents that could reasonably have resulted in a catastrophic release. Add the term “near miss” to regulations with examples in preamble. ◦ Clarify the definition of catastrophic release to be consistent with reportable accidental release (i.e., an accident with deaths, injuries, evacuations, sheltering in place, property damage, or environmental damage) ◦ Require a root cause investigation and define root cause to mean a fundamental, underlying, system-related reason why an incident occurred that identifies correctable failure(s) in management systems ◦ Require a report be completed within 12 months (unless extension approved, in writing, by implementing agency) CHEMICAL EMERGENCY PREPAREDNESS & PREVENTION SECTION 10 EPA, REGION 5