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Risk Management Program 40 CFR Part 68

Final Rule Revisions

Eddie Al-Rayes ♦ March 8, 2017

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˃ Overview of Risk Management Program

˃ Overview of 2017 Final Changes

˃ Impacts of White House & Congressional Actions

EPA RMP – Agenda

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Overview of RMP

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˃ Prevent or minimize consequences of catastrophic releases of Toxic, Reactive, Flammable, or Explosive chemicals

˃ Implements CAA 112(r)

˃ Requires subject facilities to develop a Risk

Management Program

EPA RMP - Purpose

Oct 2011 Magnablend Chemical Plant (baylorlariat.com)

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EPA RMP – Who is Covered?

Source: USEPA Chemical Accident Prevention Inspection and Enforcement Processes (www.wcsawma.org/wp-content/uploads/2016/07/Kathryn-Lawrence-EPA-WCS-Annual-2016.pdf)

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EPA RMP – Arizona Facilities

Source: USEPA Chemical Accident Prevention Inspection and Enforcement Processes (www.wcsawma.org/wp-content/uploads/2016/07/Kathryn-Lawrence-EPA-WCS-Annual-2016.pdf)

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˃ Have more than a threshold quantity (TQ) of a regulated substance Toxic compounds:

♦ 77 substances ♦ TQs are 500 to 20,000 lbs in a process

Flammable compounds: ♦ 63 substances plus mixtures with a NFPA 4 rating ♦ TQs are 10,000 lbs in a process

˃ Lots of nuances of “in a process” and “mixtures” – review

definitions and EPA memos

EPA RMP – Applicability

8 Does the process store or

handle a regulated substance in more than

the threshold quantity?

Has the process

had any significant accidental release in

past 5 years?

Is the process in one of the ten NAICS

codes?

Not regulated by risk management program

Does the impact zone of

a worst case release cover any public

receptors?

Is the process subject to

the OSHA 1910.119 Standard?

No

No No

No No

Yes

Yes

Yes

Yes

Yes

Program Level 1 (No Impact Program)

Program Level 2 (Streamlined RMP)

Program Level 3 (Full program)

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EPA RMP – Typical Content Program Level 1 Program Level 2 Program Level 3

Hazard Assessment

Worst-Case Scenario Worst-Case Scenario Worst-Case Scenario Alternate-Case Scenario Alternate-Case Scenario

5-yr Accident History 5-yr Accident History 5-yr Accident History

Prevention Program

Certify no additional steps needed

Safety Information Process Safety Info Hazard Review

Operating Procedures Process Hazard Analysis

Operating Procedures Training Training

Maintenance Mechanical Integrity Incident Investigation Incident Investigation

Compliance Audits Compliance Audits

Management of Change Pre-Startup Review

Contractors Employee Participation

Hot Work Permits Emergency Response Coordinate with LEPC Develop Plan & Program Develop Plan & Program

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Need for Revisions

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April 2013 - West Fertilizer Company

Ammonium nitrate explosion (15 fatalities/160 injuries)

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Executive Order 13650

(Aug 1, 2013)

EPA’s RMP RFI Jul 31, 2014 79 FR 44604

RMP Proposed Rules Mar 14, 2016 81 FR 13637

RMP Final Rules Jan 13, 2017 82 FR 4594

Delayed Mar 21, 2017

Effective Mar 14, 2017

West Texas Explosion

(April 2013)

RFI = Request for Information (pre-rule publication with various approaches being considered)

RMP Rule Revisions - History

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Overview of 2017 Final Changes

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RMP Rule Revisions - Overview ˃ Definitions (68.3) ˃ Applicability (68.10) ˃ General Requirements (68.12) ˃ 5-year Accident History

(68.42) ˃ Safety Information / PSI

(68.48 / 68.65) ˃ Hazard Review / PHA

(68.50 / 68.67) ˃ Training (68.54 / 68.71) ˃ Compliance Audits

(68.58 / 68.79) ˃ Third Party Audits

(68.59 / 68.80)

˃ Incident Investigations (68.60 / 68.81)

˃ Emergency Response (ER) (68.90 / 68.95)

˃ ER Coordination (68.93) ˃ ER Exercises (68.96) ˃ RMPlan Requirements

(68.160 – 68.195) ˃ Recordkeeping (68.200) ˃ Availability of Information

LEPC (68.205) Public (68.210)

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Compliance Dates – Final Rule

Rule Section Significant Changes Citations Definitions Root cause, ISTD & STAA categories,

practicability, third-party audit 68.3

Applicability All compliance deadlines; ER program elements; Table corrections; DOD/CBI

68.10; 68.90; 68.95, 68.130; 68.210(f) & (g) - public info

General Requirements

Adds ER coordination, program, and exercises to Level 2 & 3 responsibilities

68.12; Detailed requirements have later compliance dates

Safety Info / PSI SDS instead of MSDS 68.48 / 68.65 Hazard Review / PHA

Review incident investigation findings 68.50 (a)(2) / 68.67 (c)(2)

Training (Initial and Refresher – SOPs)

Include supervisors with covered process operational responsibilities

68.54 / 68.71

Incident Investigation

Include near miss & destroyed process; schedule to address recommendations

68.60(a),(c),(d)(1)-(6),(8) &(g) 68.81(a),(d)(1)-(6),(8)

Compliance Audits Audit EACH covered process every 3 yrs 68.58 (a) / 68.79 (a)

All items listed below have a March 21, 2017 compliance date

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Compliance Dates – Final Rule

Rule Provision Compliance Date Affected Provision Citations

ER Coordination Activities March 14, 2018 68.93

Third-Party Audit March 15, 2021 68.58 (f)-(h), 68.59, 68.79(f)-(h) & 68.80

Root Cause Analysis March 15, 2021 68.60(d)(7) & 68.81(d)(7)

Information Sharing – Public March 15, 2021 68.210(b)-(e)

STAA - Level 3, NAICS 322, 324, 325 March 15, 2021 68.67(c)(8)

ER Notification, Field & Tabletop Exercises

March 15, 2021 68.96

New RMPlan Data Requirements March 14, 2022 68.160-68.190

Unless listed below, compliance date is March 21, 2017*

* Other compliance dates are hard-coded in FR and not based on the effective date

17 New RMP “Reportable” Release Example

Rule Provision

Details of Compliance Deadline Assuming Incident on July 5, 2021

(Effective Date is March 15, 2021)

Public Meeting Within 90 days after accident October 3, 2021

Incident Investigations

Initiate within 48 hours, complete report & root cause analysis within 12 months

Complete report by July 5, 2022

Third-party audit

Within 12 months of accident Complete audit by July 5, 2022; Complete findings response report within 90 days of audit completion

Field exercise May use the response as a field exercise if all exercise and report requirements are met

Evaluation report within 90 days of incident (October 3, 2021)

Update RMPlan

Correct RMPlan within 6 months (existing requirement-root cause was not added)

January 5, 2022

RMP “Reportable” Release is per 5-yr accident definition in 40 CFR 68.42

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˃ Process Safety Info (PSI) [68.48 / 68.65] - March 21, 2017 Reference Safety Data Sheets (SDS) not MSDS

Level 3 – PSI kept “up-to-date” (no timeframe), not just updated

before a Process Hazard Analysis (PHA)

Level 2 – already requires Safety Information be “up-to-date”

NO guidance in preamble for timeframe for “up-to-date”

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Training Requirements

˃ March 21, 2017

˃ Broadens training requirements Level 2 - Replaces “employee operating” with “employee presently

involved in operating” (68.54)

Level 3 – Already included this language (68.71)

“Employee” also includes ♦ Level 2 – “supervisors responsible for directing operations” (68.54) ♦ Level 3 – “supervisors with process operational responsibilities”

(68.71)

Impacts initial and refresher training

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Incident Investigation & Team

˃ March 21, 2017

˃ Investigate each incident that Resulted in catastrophic release including when affected process is

decommissioned or destroyed following, or as a result of, the incident (Update RMPlan accident history before you de-register the site)

Could have reasonably resulted in a catastrophic release (near miss)

˃ If incident meets 5-year accident criteria, must have public

meeting within 90 days (68.210(e))

˃ Complete report within 12 months of event, unless extension granted by agency

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˃ March 21, 2017

˃ Still required at least every 3 years

˃ Criteria is updated to specify site must evaluate compliance of Prevention Program for each covered process

Compliance Auditing

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Emergency Response Coordination

˃ New section 68.93 – All Level 2 & 3 programs - March 14, 2018

˃ Coordinate with local responders at least annually, to Ensure local responders are aware of your regulated substances, their

quantities & risks, and your response resources & capabilities Address changes at the source & in source emergency plan Address changes in local community response plan Provide copy of source emergency plan and emergency contact info

˃ Document coordination activities

˃ Responding sites must coordinate Emergency Exercises

schedule

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Inherent (must determine the practicability of these)

Passive & Active

Procedural

Safer Technology and Alternatives Analysis (STAA) ˃ Applicable to PHA for NAICS codes - March 15, 2021

322 (paper manufacturing) 324 (petroleum and coal products manufacturing) 325 (chemical manufacturing)

Source: NIOSH website: http://www.cdc.gov/niosh/topics/hierarchy/

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Information Availability - Public ˃ March 15, 2021

˃ Edited 68.210 – Provide within 45 days of request by public

˃ Regulated chemical hazard information summaries

(provide sanitized version if CBI)

˃ Rules for DOD classified information still apply

˃ Public meeting 90 days after RMP reportable incident

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Third-Party Auditing ˃ March 15, 2021

˃ Requirement for third-party audit if

Accidental release meeting 68.42(a) criteria (5-year Accident / RMP Reportable Incident)

Implementing agency requires it based on ♦ Conditions that “could lead to an accidental release” ♦ Determination that third-party audit failed to meet competency or

independence criteria (68.59 / 68.80)

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What isn’t addressed . . . yet ˃ No changes to the list of regulated substances

(68.130, Tables 1-4)

˃ Preamble discusses other RMP RFI topics Location of stationary sources Emergency shutdown systems

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White House & Congressional Actions

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White House & Congressional Actions ˃ January 20, 2017 - White House memo delays effective date until

March 21, 2017

˃ January 25, 2017 - Industry group request to Congressional Leaders to use the Congressional Review Act (CRA), to disapprove RMP Final Rule amendments

˃ February 2, 2017 – U.S. Rep. Mullin introduces bill to disallow RMP Final Rule amendments via CRA

˃ As of today - Look out for updates on RMP final rulemaking

˃ If finalized RMP rules are disallowed under CRA, the August 2013 EO 13650 still stands – expect future rulemaking

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Questions & Discussion

˃ Trinity Consultants 1661 E. Camelback Rd., Suite 290 Phoenix, Arizona 85016

Tel: 602-274-2900

Eddie Al-Rayes – ealrayes@trinityconsultants.com