What’s New in 2014 · Risk Management Professionals Risk Management Professionals RMMMP Regulatory History •Bhopal Tragedy (December 2, 1984) –Methyl isocyanate released, killing

Risk Management Professionals


RMMMP


RMMMP

What’s New in 2014:

Overview of Proposed Changes to OSHA’s Process

Safety Management (PSM) and the California

Accidental Release Prevention (CalARP) Program

Regulations

Risk Management Professionals 877/532-0806

www.RMPCorp.com



RMMMP


RMMMP

General Information on the Presentation

• This presentation is intended to inform the audience on

proposed changes regulations, and how the audience can

comment on these proposed changes.

• These proposed changes have not been finalized. All

proposed changes are subject to be changed or removed

upon the closure of the comment periods.



RMMMP


RMMMP

Key Topics

• Executive Order 13650 – Background

– Important Information on the EO

• Process Safety Management (PSM) Program

– What is it?

– What are the proposed changes?

– What do these changes mean for facilities?

• CSB Investigation

• California Accidental Release Prevention Program – What are the changes?

– What do these changes mean for facilities?

• Important Dates and Questions



RMMMP


RMMMP

Executive Order 13650

• Executive Order 13650 – Issued August 1, 2013

– Response to the West, Texas explosion.

– Established a Working Group involving: • Department of Labor, specifically OSHA

• Environmental Protection Agency (EPA)

• Department of Homeland Security (DHS)

• Department of Transportation (DoT)

– Goal: • Improve coordination with state, local, and tribal groups.

• Enhance coordination with various federal regulators.

• Modernization of policies, regulations, and standards.



RMMMP


RMMMP

Important Information on EO 13650

• Information from Stakeholders Input Meeting (Los Angeles, CA on January 9, 2014) – Possible EPA RMP RFI upcoming

• Pilot Program of new ideas in EPA Region 2 (New York/New Jersey)

– EPA and OSHA are trying to synchronize requirements. • EPA and OSHA would like to prioritize inspections and effectively

file programs.

– Concerns at LPG facilities • Some have not been designed with full accordance to prevailing

NFPA and API industry standards.

– EPA and OSHA would like to identify trends by release data.

– What are the merits of the safety case? • Currently being evaluated by the Chemical Safety Board (CSB) in

regards to the Chevron Richmond Refinery Fire Investigation.



RMMMP


RMMMP


Overview of the Proposed Changes to OSHA’s

Process Safety Management (PSM)


www.RMPCorp.com



RMMMP


RMMMP

Regulatory History

Bhopal (1984)

Clean Air Act (1990)

OSHA PSM (1992) EPA RMP (1996)

CalARP (1999)



RMMMP


RMMMP

Regulatory History

• Bhopal Tragedy (December 2, 1984)

– Methyl isocyanate released, killing 3000+ people.

– Multiple safety (management) systems were

compromised.

• Flare tower, several vent gas scrubbers, refrigeration system,

incorrect building materials, preventative maintenance and

operations procedures.

– A sister Union Carbide Sevin pesticide plant was

located in Institute, WV.

• Clean Air Act (1990) established federal authority

for federal programs regarding air pollution

control and mandated some industry safety

initiatives.



RMMMP


RMMMP

PSM Overview

• Set of 14 inter-related elements to reduce the frequency/severity of incidents related to hazardous materials.

• OSHA PSM and EPA RMP are similar, but PSM focuses on worker safety, where RMP focuses on the public and the environment.



RMMMP


RMMMP

Overview of the Proposed Changes to

the OSHA-PSM Program

• Request for Information (RFI) can be found at: – https://www.osha.gov/chemicalexecutiveorder/OSHA_

PSM_RFI.pdf

• RFI contains 17 proposed changes.

• Many of these changes are designed to close exemptions or absorb efforts that were originally separate.

• Comments are due by March 10, 2014.



RMMMP


RMMMP

RFI Topic 1

• Clarifying the PSM exemption for atmospheric storage tanks – Revise paragraph (a)(1)(ii)(B) of §1910.119 to include

flammable liquids in atmospheric storage tanks within or connected to a PSM-covered process.

• “Flammable liquids with a flashpoint below 100 °F stored in atmospheric tanks or transferred which are kept below their normal boiling point without benefit of chilling or refrigeration.”

– Secretary of Labor v. Meer Corporation (1997) ruled that, by an exemption in (a)(1)(ii)(B), PSM coverage does not extend to flammables in atmospheric tanks.

• Contrary to OSHA’s previous interpretation that “the standard covered all stored flammables when connected to, or in close proximity to, a process.”



RMMMP


RMMMP

RFI Topic 2

• Inclusion of Oil- and Gas-Well Drilling and Servicing – This change will include Oil- and Gas-Well Drilling and

Servicing in the scope of OSHA PSM Program Regulations.

– Paragraph (a)(2)(ii) of §1910.119 exempts drilling and servicing operations from PSM coverage.

• “This section does not apply to… Oil or gas well drilling or servicing operations”

– OSHA had originally began making separate rules for these operations (48 FR 57202), but this was never finalized.



RMMMP


RMMMP

RFI Topic 3

• Inclusion of Oil- and Gas-Production Facilities – Exemption §1910.119(a)(2)(ii) was never meant to apply

to the associated production facilities. • “This section does not apply to… Oil or gas well drilling or

servicing operations”

• Explicitly states that it involves well drilling or servicing operations, not production facilities.

– Economic analysis was never completed by OSHA, so OSHA had suspended enforcement until the economic analysis was completed.



RMMMP


RMMMP

RFI Topic 4

• Expanding PSM Coverage and Requirements for Reactivity Hazards – Proposes to use a similar format to the New Jersey

Toxic Catastrophe Prevention Act (TCPA). • Includes Individual Reactive Hazardous Substances and

Reactive Hazard Substances Mixture Function Groups

• Rule was proposed in 2000 (ANRPM RIN 1218-AB63), but was

not implemented.

Heat of Reaction Threshold Quantity

Lower Limit Heat of Reaction Higher Limit TQ in Pounds

100 -ΔHR 200 13,100

200 -ΔHR 300 8,700

300 -ΔHR 400 6,500

400 -ΔHR 500 5,200

500 -ΔHR 600 4,400

600 -ΔHR 700 3,700

700 -ΔHR 800 3,300

800 -ΔHR 900 2,900

900 -ΔHR 1000 2,600

-ΔHR ≥ 1000 2,400



RMMMP


RMMMP

RFI Topic 5

• Updating the List of Highly Hazardous Chemicals in Appendix A of the PSM Standard – RFI Topic 17 involves changing the way the Highly

Hazardous Chemical threshold quantities are calculated.

– Appendix A has not changed since 1992; OSHA would like to receive comments on if any materials should be added to the list and on criteria and methods for periodically updating Appendix A.



RMMMP


RMMMP

RFI Topic 6

• Revising the PSM Standard to Require Additional Management-System Elements, such as: – Risk Based Process Safety (RBPS) Program

• Center for Chemical Process Safety (CCPS) initiative, consists of 20 elements, including three stated in the RFI:

– Measurements and Metrics

– Management Review and Continuous Improvement

– Process Safety Competency

– Bureau of Safety and Environmental Enforcement (BSEE) Safety and Environmental Management Systems (SEMS) Revisions

• SEMS II Fact Sheet (April, 2013)

– Also the source for RFI Topic 12.



RMMMP


RMMMP

RFI Topic 6 – Measurements and Metrics

• Measurements and Metrics – a system for

establishing indicators to track the effectiveness of

the safety management system. – Uses metrics to track leading and lagging safety

indicators to identify opportunity for improvement. • Leading metrics – a forward-looking set of metrics which

indicate the performance of the key work processes.

• Lagging metrics – a retrospective set of metrics that are based

on incidents that meet the threshold of severity that should be

reported as part of the industry-wide safety metric. Near miss

and other internal lagging metrics.

– Uses formulas to assign points/percentages to metrics. • Ex, percentage of properly executed MOCs =

# 𝒐𝒇 𝒑𝒓𝒐𝒑𝒆𝒓𝒍𝒚 𝒆𝒙𝒆𝒄𝒖𝒕𝒆𝒅 𝑴𝑶𝑪𝒔

𝒕𝒐𝒕𝒂𝒍 # 𝒐𝒇 𝑴𝑶𝑪𝒔× 𝟏𝟎𝟎%



RMMMP


RMMMP

RFI Topic 6 – Management Review and

Continuous Improvement

• Management Review and Continuous Improvement – “ongoing ‘due diligence’ review by management that fills the gap between day-to-day work activities and periodic formal audits”. – All levels of management review should periodically be

conducted in a manner similar to a compliance audit. • Frequency governed by safety record, performance, age of

process, etc. Increase frequency if problems are persistent.

• Team presents documentation and records, direct observations of conditions and activities, and answers questions about program activities.

• Use the same recommendation tracking system/format as management would for PHA/Compliance Audit/Incident Investigation recommendations (including an assigned person and target completion date).



RMMMP


RMMMP

RFI Topic 6 – Process Safety

Competency

• Process Safety Competency – encompasses continuously improving knowledge and competency, ensuring appropriate information is available to the people who need it, and consistently applying what is learned. – Consists of all personnel coming together to discuss

experiences and insights to be captured and documented to improve the process.

• Includes operations/maintenance experiences, technical papers, and industry committee findings.

– Easily incorporated into training efforts.

– Employee participation at all levels is inherent to the success of any Process Safety Competency efforts.



RMMMP


RMMMP

RFI Topic 6 – BSEE SEMS Revisions

• BSEE SEMS Revisions – SEMS II Fact Sheet (April, 2013)

• http://www.bsee.gov/Regulations-and-Guidance/Safety-and-Environmental-Management-Systems---SEMS/Fact-Sheet/

• Develop and implement a stop work authority that creates procedures and authorizes any and all [offshore industry] personnel who witness an imminent risk or dangerous activity to stop work.

• Develop and implement an ultimate work authority that requires offshore industry operators to clearly define who has the ultimate work authority on a facility for operational safety and decision-making at any given time.

• Requiring an employee participation plan that provides an environment that promotes participation by [offshore industry] employees as well as their management to eliminate or mitigate safety hazards.



RMMMP


RMMMP

RFI Topic 7

• Amending Paragraph (d) of the PSM Standard to Require Evaluation of Updates Applicable to RAGAGEP – §1910.119(d)(3) requires employers to document that

covered equipment complies with Recognized and Generally Accepted Good Engineering Practices (RAGAGEP).

– Currently does not require PSM Program updates to reflect changes to industry RAGAGEP.

• Updates to RAGAGEP routinely occur through experiences in industry.



RMMMP


RMMMP

RFI Topic 8

• Clarifying the PSM Standard by Adding a Definition for RAGAGEP – “Recognized And Generally Accepted Good

Engineering Practices” – are the basis for engineering, operation, or maintenance activities and are themselves based on established codes, standards, published technical reports or recommended practices (RP) or similar documents. RAGAGEPs detail generally approved ways to perform specific engineering, inspection or mechanical integrity activities, such as fabricating a vessel, inspecting a storage tank, or servicing a relief valve” – Center for Chemical Process Safety



RMMMP


RMMMP

RFI Topic 9

• Expanding the Scope of Paragraph (j) of the PSM Standard to Cover the Mechanical Integrity of Any Safety-Critical Equipment – Safety equipment explicitly listed in Paragraph (j)(1)

• Pressure vessels and storage tanks, piping systems, relief and vent systems, emergency shutdowns, controls, and pumps.

– Equipment not listed was intended to be covered by PSM, and mentioned in the Preamble, but since it was not previously listed, OSHA uses OSH Act Section 29 USC 654 Section 5(a)(1) to cite hazards with unlisted equipment.

• Each employer “shall furnish to each of his employees employment and place of employment which are free from recognized hazards that are causing or are likely to cause death or serious physical harm to his employees”.



RMMMP


RMMMP

RFI Topic 10

• Clarifying Paragraph (l) of the PSM Standard with an Explicit Requirement that Employers Manage Organizational Changes – Safety can be impacted by organizational changes, as

well as process/equipment changes. • CSB cited lack of organizational MOC procedures as a partial

cause of the 2005 BP Texas City Refinery incident.

– Management of Change (MOC) does not currently explicitly require that employers follow MOC procedures for changes in management structure, budget cuts, or personnel changes.

• Memorandum for Regional Administrators from Richard Fairfax (March 31, 2009) states that it is OSHA’s position to cover these changes.



RMMMP


RMMMP

RFI Topic 11

• Revising Paragraph (n) of the PSM Standard to Require Coordination of Emergency Planning with Local Emergency-Response Authorities – Safety of employees and responders can incur

additional risk if coordination does not occur. • The April 17, 2013 ammonium nitrate explosion in West,

Texas did not have coordinated activities, and many of the 15 people killed were responders without adequate information/coordination about the hazards involved with ammonium nitrate.

– Lockbox may be a simple implementation tool.

– Currently, PSM does not require coordination with outside parties in coordinating emergency planning.

• Permit-Required Confined Spaces and “first responder” facilities are currently required to coordinate activities.



RMMMP


RMMMP

RFI Topic 12

• Revising Paragraph (o) of the PSM Standard to Require Third-Party Compliance Audits – According to CCPS, “third party auditors (typically,

consulting companies who can provide experienced auditors) potentially provide the highest degree of objectivity”.

• BSEE’s Safety and Environmental Management Systems (SEMS) requires audits to be done by a third party without conflicts of interest.

– OSHA also would like comments involving increasing the required frequency of compliance audits and specific timeframes on responses to deficiencies.



RMMMP


RMMMP

RFI Topic 13

• Expanding the Requirements of §1910.109 to Cover Dismantling and Disposal of Explosives, Blasting Agents, and Pyrotechnics – Currently, dismantling and disposal of these materials

are not covered under the current PSM Standard. • On April 8, 2011, 5 workers in Waikele, HI were killed

dismantling seized fireworks. According to the CSB, gaps in federal regulations contributed to this incident.

– OSHA also would like comments on if current ATF regulations would make the proposed changes to the PSM Standard duplicative.

• 27 CFR 555 and the Articles Pyrotechnic are current regulations for explosives used by the ATF



RMMMP


RMMMP

RFI Topic 14

• Updating § §1910.106 and 1910.107 Based on the Latest Applicable Consensus Standards – OSHA notes that its Flammable Liquids standard and

Spray Finishing standard are out of date (established in 1974 on NFPA consensus from the 1960s).



RMMMP


RMMMP

RFI Topic 15

• Updating the Regulations Addressing the Storage, Handling, and Management of Ammonium Nitrate – OSHA, EPA, and ATF are in the process of updating a

chemical advisory on safe ammonium nitrate practices.

• West, Texas (April 17, 2013) – 15 killed, 160 injured.

• Texas City, Texas (April 16, 1947) – 581 killed, thousands injured when a ship exploded, sparking a chain reaction on other ships and oil-storage facilities. This was the deadliest industrial accident in US history.

– Standard was developed by a 1970 NFPA consensus.



RMMMP


RMMMP

RFI Topic 16

• Changing Enforcement Policy of the PSM Exemption for Retail Facilities [by Clarifying the Definition of a Retail Facility] – Retail exemption established at CFR 1910.119(a)(2)(i)

• “Retail facility” is not defined in Standard, but in the Preamble it says chemicals in retail facilities are generally in small packages, containers, and allotments (e.g., gas station).

– OSHA has been inconsistent in its rulings on retail facilities.

• OSHA has issued letters stating that anhydrous ammonia sales directly to farmers could qualify for the exemption, even though this fits more closely with a wholesale operation.

• Considers the farmers to be the “end users”.



RMMMP


RMMMP

RFI Topic 17

• Changing Enforcement Policy for the Highly Hazardous Chemicals Listed in Appendix A of the PSM Standard Without Specific Concentrations – 9 chemicals (11 names) identify specific concentrations.

• Ammonia solutions (>44%), cellulose nitrate (> 12.6%), diacetyl peroxide (> 70%), ethyl methyl ketone peroxide (> 60%), hydrogen peroxide (> 52%), nitric acid (> 94.5%), oleum (65-80%), peracetic acid (> 60% acetic acid), perchloric acid (> 60%).

– OSHA notes that these chemicals still pose risks at lower concentrations, and seeks comments on adopting EPA RMP’s approach to threshold quantities.

• Use the concentration to determine total weight of the regulated substance for program eligibility.



RMMMP


RMMMP

OSHA’s Comment Interests

• OSHA is particularly interested in knowing: – The effects of possible regulatory and policy changes,

especially economic cost vs. safety benefits.

– The impacts on small entities and ways to minimize burdens on small entities.

• Additional information requested by OSHA when commenting: – General information about your industry and facility.

• NAICS Code, number of employees, types/volumes of chemicals handled, and is it covered by PSM.

– OSHA has also compiled lists of questions it would like detailed answers about in the comment being submitted.



RMMMP


RMMMP

Conclusion

• What could these changes mean for facilities currently covered by the OSHA PSM Program? – Increased clarity on what is required of currently covered

facilities.

– Many additional systems/facilities will be covered by PSM, requiring significant effort by owners/operators.

– More robust programs with the possible addition of the safety management-system elements proposed in Topic 6.

– Proposed increased frequency of independent, third party Compliance Audits with established timelines for the completion of deficiency corrections.

– Additional efforts in coordinating emergency planning with emergency responders.

– Potential for significant effort due to the requirement for organizational MOCs.



RMMMP


RMMMP

How to Comment on the RFI

• Comments are due March 10, 2014.

• How to submit comments and supplementals. – Electronically: Use the Federal eRulemaking Portal at

http://www.regulations.gov • Also, this website will make submitted comments reviewable for

interested parties.

– Mail: Mail to the OSHA Docket Office, Docket No. OSHA-2013-0020 or RIN 1218-AC82, Technical Data Center, Room N-2625, OSHA, U.S. Department of Labor, 200 Constitution Ave., Washington DC 20210.

• Be sure to include sender name, date, subject and docket number (OSHA-2013-0020).

– Facsimile: Documents (with attachments) must be less than 10 pages. Send to the OSHA Docket Office at (202) 693-1648.

http://www.regulations.gov/



RMMMP


RMMMP

CSB’s Richmond Refinery Fire

Investigation and Findings

• Chevron Richmond Refinery

• CSB Investigation Interim Report – 20 Recommendations:

• 2013-03-I-CA-11 – Establish a multi-agency process safety regulatory program for all California oil refineries.

• 2012-03-I-CA-9 – Perform damage mechanism hazard review.

• 2012-03-I-CA-10 – California oil refineries identify and require the reporting of leading and lagging safety indicators (RFI Topic 6).

• 2012-03-I-CA-6 – “use established qualitative, quantitative, and/or semi-quantitative methods such as Layers of Protection Analysis (LOPA)” during Process Hazard Analyses.

– Approval of the Interim Report is awaiting approval (~April) while it addresses if the implementation of the safety case is feasible in Contra Costa County and/or California.



RMMMP


RMMMP


Overview of the Proposed Changes to the California

Accidental Release Prevention (CalARP) Program

Regulations


www.RMPCorp.com



RMMMP


RMMMP

Definitions Changed

• Definitions (Section 2735.3)

– New stationary source: • “stationary source that now has a covered process that is not

currently in the CalARP program”

– Revalidation: • “critical review of a hazard review or a process hazard

analysis (PHA) with qualified team members of the most recent hazard review or PHA studies to verify that past studies remain valid and that changes made to the covered process are properly assessed. This critical review is to ensure that hazards are well understood, and existing safeguards are properly identified, past recommendations have been addressed, the overall risk ranking of each scenario is accurate, and relevant incidents and near misses at the stationary source and industry are evaluated”



RMMMP


RMMMP

Miscellaneous Changes

• Timelines established for CalARP activities

– “In a timely manner” (previous wording) has been

changed to “The owner or operator shall enter into

an agreement with the AA on a timetable for

resolution of these problems. Otherwise these

resolutions shall be completed within five years”.

• Initial public notice has been eliminated, and is

only required for the formal public review

• Addition of public receptor for response activities



RMMMP


RMMMP

Changes to the Hazard Assessment

• Alternative Release Scenario Analysis (Section 2750.4)

– Scenarios to consider now includes reaching a public receptor.

– Accidents/incidents or events in related industries.

• Offsite Consequence Analysis Review and Update (Section 2750.7)

– Requires documentation of the review/update.



RMMMP


RMMMP

Changes to the Hazard Review

• Hazard Review (Section 2755.2)

– Hazard review team specified. • Team shall be familiar with process operations.

• One employee must have experience and knowledge specific to the process.

– Timeline established for recommendation resolution.

– Hazard review revalidation can only occur once between full hazard reviews.

– Owner shall retain hazard reviews, updates/revalidations, and recommendation documentation for the life of the process.



RMMMP


RMMMP

Changes to Operating Procedures and

Training

• Operating Procedures (Section 2755.3)

– Ensure operating procedures are developed and/or update to reflect current practices. Previously, this was required “whenever a major change occurs”.

• Training (Section 2755.4)

– Owners/operators are now required to document initial and refresher training for each employee.

– “major change” eliminated, and now includes a requirement for training of all employees needing to use the procedures.



RMMMP


RMMMP

Changes to Maintenance and

Compliance Audits

• Maintenance (Section 2755.5)

– Addition of “written” procedures for maintaining the mechanical integrity of process equipment.

– Owners/operators are now responsible for ensuring that employees/contractors are trained to perform the maintenance/operational procedures.

• Compliance Audits (Section 2755.6)

– Removal of the 5 year rule.



RMMMP


RMMMP

Changes to Incident Investigation

• Incident Investigation (Section 2755.7)

– Requires all information from Section 2750.9(b) • Date, time and approximate duration of the release

• Regulated substance(s) and estimated quantity released

• Five or six digit NAICS code

• Type of release event and its source

• Weather conditions

• On-site and known offsite impacts

• Initiating event and contributing factors

• Were offsite responders notified?

• Operational and process changes that resulted from the investigation of the release

– Timeline for closure of recommendations established.



RMMMP


RMMMP

Program 3 – PSI, PHA, MI

• Process Safety Information (Section 2760.1)

– Chemical compatibility data during handling, use, and application at the stationary source required with reactivity data.

• Process Hazard Analysis (Section 2760.2)

– Removal of the priority order for choosing PHAs.

– Timeline established for recommendation closure.

• Mechanical Integrity (Section 2760.5)

– Addition of compressors and their drivers to process equipment list.



RMMMP


RMMMP

Program 3 – Management of Change and

Pre-Startup Safety Review

• Management of Change (Section 2760.6)

– Expanded definitions of should be considered during an MOC:

• Development of new operating procedures

• Modifications/development of maintenance procedures

• Pre-Startup Safety Review (Section 2760.7)

– Independence from the MOC process. • Used as a verification check prior to introducing the

regulated substance



RMMMP


RMMMP

Program 3 – Compliance Audits

• Compliance Audits (Section 2760.8)

– Increased requirements for the audit report. • Scope

• Methods used

• Results

– Report, with its results, shall be available for AA review.

– Timeline established for recommendation closure.



RMMMP


RMMMP

Emergency Response Applicability

• Emergency Response Applicability (Section 2765.1)

– Increased clarification on what may be in place to wave the requirement for Emergency Response Program (ERP) development for non-first respondent facilities.

– Documentation is now required that response actions have been coordinated with the fire department and hazardous materials response agencies, as well as written procedures for notifying emergency responders.



RMMMP


RMMMP

Petition Process

• Petition Process (Section 2770.3(a))

– “Anyone may petition the Director of Cal OES to modify, by addition, deletion, or by amendment of the threshold value, the list of regulated substances identified in section 2770.5, Table 3.”

• The burden of proof is on the petitioner, and a submission fee will be assessed to any petition submitted.

• Cal OES will notify the public and AA’s of the receipt of a petition

• Within 18 months, the Director shall publish in the Cal OES website denying or granting the petition.



RMMMP


RMMMP

Petition Process (cont’d)

• Petition Process (Section 2770.3(b))

– “Any person wishing to effect a change in the list of regulated substances identified in section 277.5, Tables 1 or 2, may petition the Administrator of USEPA, pursuant to section 68.120 of Title 40, Code of Federal Regulations”

• If granted, a notice of this grant will be published in the Federal Register. Within 12 months of the amended listing in 40 CFR 68.130, Cal OES shall commence rulemaking to conform section 2770.5, Tables 1 or 2 with 40 CFR 68.130.



RMMMP


RMMMP

Conclusion

• What do these changes to the CalARP Program mean for facilities?

– Increased clarity on what is required of facilities.

– Increased accountability for the owner/operator of the facility.

– Increased CUPA involvement and oversight.

– Increased interfacing between owner/operator, the public, and CUPA’s.



RMMMP


RMMMP

Jordan Schultz: [email protected]

Risk Management Professionals – 877/532-0806

www.RMPCorp.com

Questions?

mailto:[email protected]