AAPFCO Security Sub-Committeeaapfco.org/presentations/2016/2016_MY_security_briefing_potash.pdf · AAPFCO Security Sub-Committee Deborah L. Allen, CPP . ... (SFFMA) CSB releases report

Security Briefing

AAPFCO Winter Annual 2016

February 23, 2016

Albequeque, NM

,

AAPFCO Security Sub-Committee

Deborah L. Allen, CPP

Ammonium Nitrate Issues

• Among the topics discussed were the 10th Chemical Sector Security Summit (July 19-21) and the first international chemical sector security summit which is being held in Poland (April 19-21).

• ResponsibleAg, and its important role promoting safety and security in the agricultural retail sector, will be featured on panels at both summits this year.

• DHS is revisiting the Ammonium Nitrate Security Program (ANSP).

• DHS also discussed the ANSP, and shared with the CSCC its desire to work with Congress and stakeholders to revisit the ANSP, citing its interest in having an independent agency to conduct a study of the issue.

• January 12, 2016

ResponsibleAg, Ammonium Nitrate Rule Discussed at Chemical Sector Coordinating Council Meeting

• Link for CSB Report:

• https://app.box.com/s/nnu4d0tn0yojh9vpx8zbh4kj4gy88o98

CSB releases report on the West, TX Incident

https://app.box.com/s/nnu4d0tn0yojh9vpx8zbh4kj4gy88o98

• 2013-02-I-TX R1 Develop a guidance document on Emergency Planning and Community Right-to-Know Act (EPCRA) requirements that is issued annually to State Emergency Response Commissions (SERCs) and Local Emergency Planning Committees (LEPCs) and ensure that the guidance focuses on the following:

• a. Explains which chemicals are exempt and which must be reported.

• b. Describes how emergency responders should use Tier I and Tier II inventory reports and Safety Data Sheets, such as in safety training, practice drills, and for emergency planning.

• c. Includes comprehensive LEPC planning requirements, with an emphasis on annual training exercises and drills for local emergency response agencies.

• 2013-02-I-TX R2

• Develop a general guidance document on the agricultural exemption under EPCRA Section 311(e)(5) and its associated regulation, 40 CFR 370.13(c)(3), to clarify that fertilizer facilities that store or blend fertilizer are covered under EPCRA. Communicate to the fertilizer industry publication of this guidance document as well as the intention of Section 311(e)(5). 2013-02-I-TX R3

• Revise the Risk Management Program rule to include fertilizer grade ammonium nitrate (FGAN) at an appropriate threshold quantity on the List of Regulated Substances.

• a. Ensure that the calculation for the offsite consequence analysis considers the unique explosive characteristics of FGAN explosions to determine the endpoint for explosive effects and overpressure levels. Examples of such analyses include that adopted by the 2014 Fire Protection Research Foundation report, “Separation Distances in NFPA Codes and Standards,” Great Britain’s Health and Safety Executive, and other technical guidance.

• b. Develop Risk Management Program rule guidance document(s) for regulated FGAN facilities.

• CSB Recommendations -U.S. Environmental Protection Agency (EPA)


• 2013-02-I-TX R4 Develop and issue a Regional Emphasis Program for Section (i) of the Explosives and Blasting Agent standard, 29 CFR 1910.109(i), in appropriate regions (such as Regions IV, VI, and VII) where fertilizer grade ammonium nitrate (FGAN) facilities similar to the West Fertilizer Company facility are prevalent. Establish a minimum number of emphasis program inspections per region for each fiscal year. Work with regional offices to communicate information about the emphasis program to potential inspection recipients.

• 2013-02-I-TX R5

• Implement one of the following two regulatory changes, either option (a) or (b) below, to address FGAN hazards: a. Add FGAN to the OSHA Process Safety Management (PSM) standard List of Highly Hazardous Chemicals, Toxics and Reactives in 29 CFR 1910.119, Appendix A, and establish an appropriate threshold quantity. Identify National Fire Protection Association (NFPA) 400 as a source of Recognized and Generally Accepted Good Engineering Practices (RAGAGEP) for PSM-covered FGAN equipment and processes. b. Revise the OSHA Explosives and Blasting Agents standard, 29 CFR 1910.109, to ensure that the title, scope, or both make(s) clear that the standard applies to facilities that store bulk quantities of FGAN.

• Revise 1910.109(i), “Storage of Ammonium Nitrate,” to include requirements similar to those in NFPA 400, Hazardous Materials Code (2016 Edition), Chapter 11. Ensure the following elements are considered:

i. For new construction, prohibit combustible materials of construction for FGAN facilities and FGAN bins. For existing facilities, establish a phase-in requirement for the replacement of wooden bins with bins made of noncombustible materials of construction within a reasonable time period (e.g., 3 to 5 years from the date standard revisions are enacted), based on feedback from the fertilizer industry. ii. Require automatic fire sprinkler systems and fire detection systems for indoor FGAN storage areas

• . iii. Define adequate ventilation for FGAN for indoor storage areas.

• iv. Require all FGAN storage areas to be isolated from the storage of combustible, flammable, and other contaminating materials.

• v. Establish separation distances between FGAN storage areas and other hazardous chemicals, processes, and facility boundaries.

• CSB Recommendations -U.S. Occupational Safety and Health Administration (OSHA)


• 2013-02-I-TX R7 Through a new or existing program and in conjunction with training partners, create and implement a competitive funding mechanism to provide training to regional, state, and local career and volunteer fire departments on how to respond to fire and explosion incidents at facilities that store fertilizer grade ammonium nitrate (FGAN). Continue to use available funding to ensure training effectiveness.

• 2013-02-I-TX R8 During the proposal review process for the program, ensure that the FGAN training includes multiple delivery methods to enable a broad reach. Training should allow for instructor-led, web-based, and train-the-trainer courses; initial orientation; and refresher training. Training also should accommodate both resident and mobile capabilities to facilitate flexible delivery. Objectives of the selected training course should address the following:

• a. Previous FGAN fire and explosion incidents, incorporating lessons learned

• b. Hazards posed by other materials and chemicals stored near FGAN, including FGAN incompatibility with those materials and chemicals

• c. Pre-incident planning for fires involving FGAN

• d. On-scene emergency response and decision-making requirements for FGAN fires, including risk assessment, scene size-up, and situational awareness

e. National Incident Management System and Incident Command System.

• CSB Recommendations -Department of Homeland Security, Federal Emergency Management Agency (FEMA)


• 2013-02-I-TX R9 Assist training partners to develop and provide continual oversight for an FGAN training program. In addition, evaluate the training curriculum to confirm that it adequately meets course objectives as well as the details of recommendation 2013-02-I-TX R8.

2013-02-I-TX R10 Develop an outreach program that notifies regional, state, and local fire departments about available FGAN training opportunities. The program should include the following:

• a. Guidance for fire departments on how to identify FGAN hazards within their communities by engaging State Emergency Response Commissions and Local Emergency Planning Committees

• b. Details on how to obtain FGAN training by submitting a proposal in response to the funding opportunity

• c. Information on training partners and programs that provide FGAN training.

• CSB Recommendations -Department of Homeland Security, Federal Emergency Management Agency (FEMA)


• 2013-02-I-TX R11 Develop minimum standards for course curricula to include hazard awareness of fertilizer grade ammonium nitrate (FGAN) for those fire departments that either have FGAN facilities in their jurisdictions or respond as mutual aid to other jurisdictions with FGAN facilities. In addition, develop a training program specific to FGAN. Objectives of the program’s training course should address the following:

• a. Previous FGAN fire and explosion incidents, incorporating lessons learned

• b. Hazards posed by other materials and chemicals stored near FGAN, including FGAN incompatibility with those materials and chemicals

• c. Pre-incident planning for fires involving FGAN

• d. On-scene emergency response and decision-making requirements for FGAN fires, including risk assessment, scene size-up, and situational awareness

• e. National Incident Management System and Incident Command System.

• 2013-02-I-TX R12 Implement outreach to regional, state, and local fire departments that either have FGAN facilities in their jurisdictions or respond as mutual aid to jurisdictions with FGAN facilities, informing them about the new FGAN training certification requirements and opportunities to receive training. Include the following in the outreach:


• b. Encouragement for fire departments in jurisdictions with FGAN facilities to become certified in FGAN training.

• CSB Recommendations -Texas Commission on Fire Protection (TCFP)


• 2013-02-I-TX R13 Develop a fertilizer grade ammonium nitrate (FGAN) training certification program for fire departments that either have FGAN facilities in their jurisdictions or respond as mutual aid to other jurisdictions with FGAN facilities. The certification program should include multiple delivery methods to enable a broad reach. The certification program should allow for instructor-led, web-based, and train-the-trainer courses; initial orientation; and refresher training. The training also should accommodate both resident and mobile capabilities to facilitate flexibility in delivery. The criteria for the certification program should address the following: • a. Previous FGAN fire and explosion incidents, incorporating lessons learned • b. Hazards posed by other materials and chemicals stored near FGAN, including FGAN incompatibility with those materials and

chemicals • c. Pre-incident planning for fires involving FGAN • d. On-scene emergency response and decision-making requirements for FGAN fires, including risk assessment, scene size-up, and

situational awareness • e. National Incident Management System and Incident Command System.

• 2013-02-I-TX R14 Develop an outreach component for the training certification program that notifies regional, state, and local fire departments with FGAN facilities in their jurisdictions about the training certification opportunities available for FGAN. Ensure that the following items are included in the development of this program:


• b. Encouragement for members in jurisdictions with FGAN facilities to become certified in FGAN training

• c. Information on training partners and programs that provide FGAN training.

• CSB Recommendations -State Firefighters’ and Fire Marshals’ Association of Texas (SFFMA)


• 2013-02-I-TX R15 Develop and administer a hazardous materials training module for career and volunteer fire departments that addresses fertilizer grade ammonium nitrate (FGAN) and other hazardous materials or chemicals that could pose new specialized hazards. Ensure that the training includes multiple delivery methods to enable a broad reach. The training should allow for instructor-led, web-based, and train-the-trainer courses; initial orientation; and refresher training. The training also should accommodate both resident and mobile capabilities to facilitate flexibility in delivery. Objectives of the training course should address the following: • a. How to respond to industrial fires involving FGAN and other hazardous materials or chemicals that could pose new specialized

hazards to responding firefighters • b. Previous FGAN fire and explosion incidents, incorporating lessons learned c. Hazards posed by other materials and chemicals stored

near the FGAN, including FGAN incompatibility with those materials and chemicals • d. Pre-incident planning for fires involving FGAN and other hazardous materials or chemicals that could pose new specialized hazards to

responding firefighters • e. On-scene emergency response and decision-making requirements for FGAN fires, including risk assessment, scene size-up, and

situational awareness • f. National Incident Management System and Incident Command System.

• 2013-02-I-TX R16 Develop an outreach program that notifies state, regional, and local fire departments about available FGAN training opportunities. The program should include the following elements:

• a. Guidance for fire departments on how to identify FGAN and other recognized hazards associated with other hazardous materials or chemicals within their communities by engaging with State Emergency Response Commissions and Local Emergency Planning Committees

• b. Promotion of use of the hazardous materials training module with TEEX training partners.

• CSB Recommendations -Texas A&M Engineering Extension Services (TEEX)


• 2013-02-I-TX R17 For companies that provide insurance to agricultural facilities storing bulk fertilizer grade ammonium nitrate (FGAN) in Texas, including surplus lines insurers and Texas-registered risk retention groups, develop and issue guidance to assist in underwriting risk and conducting annual loss control surveys. Guidance should include the following:

• a. Combustible materials of construction for facilities and bins storing FGAN

• b. Storage of combustible materials near FGAN piles

• c. Adequate ventilation for indoor FGAN storage areas

• d. Automatic sprinklers and smoke detection systems for indoor FGAN storage areas

• e. Separation distances between FGAN and other hazardous materials onsite

• f. Potential for offsite consequences from a fire or explosion, including the proximity of FGAN facilities to nearby residences, schools, hospitals, and other community structures.

•Provide references in the guidance document to existing materials from the following sources or to other equivalent guidance:

• a. National Fire Protection Association (NFPA), NFPA 400, Hazardous Materials Code, 2016 Edition, Chapter 11, “Ammonium Nitrate”

• b. FM Global, “Property Loss Prevention Data Sheet 7-89”

• c. U.S. Environmental Protection Agency, Occupational Safety and Health Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives; “Chemical Advisory: Safe Storage, Handling, and Management of Solid Ammonium Nitrate Prills”

• d. TFI, “Best Practices for the Storage of Ammonium Nitrate”

• e. National Fire Protection Research Foundation, “Separation Distances and NFPA Codes and Standards.”

•

• CSB Recommendations -Texas Department of Insurance (TDI)


• 2013-02-I-TX R18 Develop standard operating procedures for pre-incident planning for facilities that store or handle hazardous materials such as fertilizer grade ammonium nitrate (FGAN).

• CSB Recommendations -West Volunteer Fire Department (WVFD)


Key CSB Findings that impact AG Retailers

Executive Order Improving Chemical Facility Safety and Security -August 1, 2013

• During the January Chemical Sector Coordinating Council meeting, Department of Homeland Security (DHS) staff indicated the agency's intention to publish a Notice of Proposed Rulemaking this summer addressing the Chemical Facility Anti-Terrorism Standards (CFATS) program including an update to Appendix A which is the list of Chemicals of Interest.

• DHS noted that there are 3,290 facilities covered by CFATS. DHS is working through compliance inspections, having completed 469 thus far, including 75 in December.

• TFI participated in a roundtable discussion hosted by the Department of Homeland Security in late October addressing the list of chemicals regulated by the Chemical Facility Anti-terrorism Standards (CFATS) program. The list, otherwise referred to as Appendix A, has not been modified since it was originally finalized in 2007. TFI took the opportunity to raise some specific concerns with how fertilizer chemicals are addressed. DHS plans to circulate a summary of the roundtable discussion in advance of proposing changes to the CFATS program, which are not expected until 2016.

• DHS proposed revision of CFATS

Update on Implementation of Executive Order 13650

• Risk Management Program (RMP)

• Last fall, EPA initiated a small business consultation process addressing potential changes to the EPA RMP.

• The objective of this endeavor was to hear directly from small businesses regarding the potential changes EPA is contemplating that could impact their businesses.

• There were a number of ARA agricultural retailer members (those that qualify as small businesses) that participated in this effort, which is slated to conclude shortly.

• EPA will then process the feedback and make any necessary changes to a proposed rule they are planning to release later this year on the RMP for public comment.

• EPA


• On July 22, the Occupational Health and Safety Administration (OSHA) issued a revised policy for retail facility exemption under the Process Safety Management (PSM) Standard.

• Under OSHA’s old policy, “retail facilities were exempt from PSM coverage if it derived more than 50% of its income from direct sales of highly hazardous chemicals to the end user.”

• The new policy states: “Only facilities, or the portions of the facilities, engaged in retail trade as defined by the current and any future updates to sectors 44 and 45 of the NAICS Manual may be afforded the retail exemption under 1910.119(a)(2)(i).”

• The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy

• 29 CFR 1910.119

OSHA Exemption for Retail Facilities under PSM

• OSHA Extends PSM Enforcement Period for Retailers

• In October, OSHA posted the memo extending the period when OSHA will exercise discretion and not enforce the PSM requirements at agricultural retail facilities. As indicated, the agency plans to extend the period of enforcement discretion by six months to July 22, 2016.

• OSHA refers to the change as "interim." TFI and ARA continue to press for additional time beyond July 22, 2016.

• As of December 8, 2015 there has been no change in the Agency's requirement that retailers with PSM covered processes must now comply with the rule. Look for a forthcoming announcement regarding a new suite of education and compliance tools from ResponsibleAg.

• 29 CFR 1910.119


• Interim Enforcement Policy - December 23, 2015

• OSHA’s Process Safety Management (PSM) Standard states that its requirements do not apply to “retail facilities.” 29 CFR 1910.119(a)(2)(i). On July 22, 2015, OSHA issued a memorandum entitled “Process Safety Management of Highly Hazardous Chemicals and Application of the Retail Exemption (29 CFR 1910.119(a)(2)(i))” (Memorandum).

• In the Memorandum, OSHA interpreted the term “retail,” as used in the PSM standard, to apply to facilities “engaged in retail trade as defined by the current and any future updates to sectors 44 and 45” of the North American Industry Classification System Manual. This reflected a change from OSHA’s prior interpretation of “retail” to apply to facilities that obtain more than half of their income from direct sales to end users.

• 29 CFR 1910.119


• Interim Enforcement Policy - December 23, 2015

• The July 22 Memorandum has, from its issuance, been subject to interim enforcement policies delaying active enforcement of the interpretation stated therein through July 22, 2016. This new policy rescinds all prior interim enforcement policies, including the PSM Retail Exemption Interim Enforcement Policy dated October 20, 2015, and replaces it with the following:

• Through September 30, 2016, OSHA will not cite employers for violations of the PSM standard at facilities that it would not have cited applying the interpretation of the term “retail” that was in place prior to July 22, 2015.

• 29 CFR 1910.119


• In December, the House and Senate voted to approve the FY2016 Omnibus Appropriations bill, which provides funding for the federal government through Sept. 30, 2016.

• In addition to providing funding for the federal government, the bill includes a number of "policy riders" that address some of the industry's concerns with regulatory overreach.

• The Omnibus Appropriations bill contains language in the accompanying document known as the "Joint Explanatory Statement (JES)", which would preclude OSHA from enforcing the PSM standard through September 30, 2016 until

• 1) the Census Bureau develops a new North American Industry Classification System (NAICS) code for "farm supply retailers," and

• 2) OSHA conducts a formal notice and comment rule making to address the retail exclusion from the PSM standard.

• FY2016 Omnibus Appropriations Bill

Congress Passes Omnibus Bill containing "Explanatory Statement" on Process Safety Management

• Because the language in the JES does not technically hold the force of law, it is not yet clear how OSHA will interpret this language and whether the agency will treat it as law or simply an explanation of law.

• TFI and ARA counsel have reached out to OSHA's counsel to determine how the agency plans to interpret the language.

• The range of potential responses could be that OSHA chooses to ignore the language and proceeds ahead with PSM implementation, to OSHA withdrawing the July 22, 2015 memo and initiating a formal rulemaking.

• FY2016 Omnibus Appropriations Bill

Congress Passes Omnibus Bill containing "Explanatory Statement" on Process Safety Management

• Process Safety Management Program

• Pursuant to language in the joint explanatory statement associated with the Omnibus Appropriations bill passed by Congress in December 2015, OSHA extended the period of enforcement discretion of the PSM standard at agricultural retailers through September 30, 2016.

• OSHA, like EPA, plans to consult with small businesses on potential changes to the existing PSM program through a formal process to begin in the next few months

• Additional details on OSHA’s next steps, including what PSM program elements the agency is planning to reconsider, may be found here: https://www.osha.gov/dsg/psm/index.html .

• A proposal from OSHA is not expected in 2016.

• OSHA


https://www.osha.gov/dsg/psm/index.html

• The DC Circuit court issued an order outlining a schedule for the development of briefs in the PSM litigation.

• In so doing, the court decided to bypass the motion to expedite consideration of the OSHA motion to dismiss the TFI and ARA legal challenge.

• The initial briefs are due to the court on January 22, 2016, with final briefs anticipated in late March 2016.

• December 15, 2015

PSM Litigation

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Documents

AAPFCO Security Sub-Committeeaapfco.org/presentations/2016/2016_MY_security_briefing_potash.pdf · AAPFCO Security Sub-Committee Deborah L. Allen, CPP . ... (SFFMA) CSB releases report