Environmental Compliance in 2016: Five Six Areas of Emerging Risk

Transcription

1 Environmental Compliance in 2016: Five Six Areas of Emerging Risk C B I A E N E R G Y A N D E N V I R O N M E N T C O N F E R E N C E J U N E 1 6, Boston Hartford New York Providence Stamford Albany Los Angeles Miami New London rc.com 2016 Robinson & Cole LLP Presenters Todd Berman Senior Analyst Jason Masi Environmental, Health, and Safety Manager Brian Freeman Senior Associate 2 1

2 Presenters Joel Resig Fossil Environmental Compliance & Program Manager and EMIS Program Manager Wojciech Krach, MS, CHMM, CSP Sr. Environmental Engineer 3 Five Six Areas of Emerging Risk 1. Chemical Regulatory Threshold Management 2. CAA 112(r) (including General Duty Clause) 3. TSCA Next Gen Enforcement 5. Compliance Systems in a Data-heavy Age 6. Refrigerants/ODS 4 2

3 Risk Area #1: Chemical Regulatory Threshold Management Jason Masi Understanding Regulatory Thresholds Emergency Planning and Community Right to Know Act (EPCRA) Section 302 Action: Notification to State Emergency Response Commission and Local Emergency Planning Committee. Timeline: Within 60 days of first exceedance of a threshold. Department of Homeland Security (DHS) Chemicals of Interest (COI) Action: Notification and submission of a Top-Screen to DHS-Review, tier, and Site Security Plan ( Risk Based Performance Standards Timeline: Within 60 days of first exceedance of a threshold. OSHA Process Safety Management of Highly Hazardous Chemicals Standard (PSM) Action: Establishment of a comprehensive management program risk assessment, emergency action plan, and audit per the standard. Timeline: at the time of threshold exceedance in a process and ideally before threshold is reached. EPA Clean Air Act 112(r) Accidental Release Prevention/Risk Management Planning Action: Comply with RMP regulations and submit risk management plan to EPA. Timeline: Comply no later than the date on which you first have more than a threshold quantity of a regulated substance in a process. 3

4 Remember Why Thresholds Are In Place EPCRA and CAA RMP Reduce the risk to the community from the storage/use of certain materials in processes. Hierarchy of Control OSHA PSM Manage the risk to employees of using certain materials in processes DHS Ensure prevention of the theft and diversion of certain materials. Practical Management Applicability Reactive Management (Lagging Indicators) Proactive Management (Leading Indicators) Review regulations determine applicability for your specific processes. Review list and target the chemicals most likely to be present in threshold quantity. Tap into existing inventory management systems and screen chemicals in storage against thresholds. Manage ordering and inventory with a goal of staying below threshold. Have a turn key plan to take actions on exceeded thresholds. Create understanding with key stakeholders Materials Management Warehousing Security (DHS) Process Managers Establish a link to planned usage with enough time to take required actions. Discuss the business need for exceeding a threshold. 4

5 Risk Area #2: CAA 112(r) (including General Duty Clause) Proposed expansion/tightening of 112(r) rules (March 2016) Inherently safer technology/inherently safer design (IST/ISD) for certain top-tier facilities Root cause investigation for reportable incidents and near misses Third-party audits More disclosure and coordination with local emergency responders Public disclosure re: chemical hazards EPA pushing to finalize by end of Risk Area #2: 112(r) (cont d) ALSO: General duty clause for everybody Key points : Applies to facilities with RMP chemicals or any other extremely hazardous substance No threshold quantities Applies facility-wide Requirements: Identify potential hazards from accidental release Design and maintain a safe facility, taking such steps as are necessary to prevent releases Minimize the consequences of accidental releases that do occur Standards of care Common EPA enforcement issues Recent EPA enforcement focus (Region 1 and nationally) -- preemptive enforcement of GDC 10 5

6 Risk Area #3: TSCA 2.0 Congress passed, President expected to sign Existing substances: Greatly increased EPA authority 3-step process: Prioritize, risk evaluation, risk management No consideration of cost or other non-risk factors until last step Deadlines on EPA Testing orders New substances: Impact of changes less clear, already in dispute Preemption but limited 11 Risk Area #4: Next Gen Enforcement EPA s National Enforcement Initiatives (FY ) Air toxics, esp. in environmental justice areas Advanced monitoring tools for agencies and citizens o Remote sensing o Fenceline monitoring requirements More data, more sharing data-centric enforcement o Electronic self-reporting and enforcement o Advanced monitoring, in-depth data analysis o Transparency and public access mandates 12 6

7 Fenceline Standards Meet Rapidly Evolving Technologies Advanced monitoring tools for agencies and citizens o Remote sensing o Fence line monitoring requirements 13 Fenceline Standards Meet Rapidly Evolving Technologies Advanced monitoring tools for agencies and citizens o Remote sensing o Fence line monitoring requirements Allenco Energy Judgment June 3 rd 2016 $1.25 M fine Install fence line air monitoring for Methane and other compounds Environmental Justice Element 14 7

8 Evolving Tools of Regulators and Citizens New Hampshire HB 602 Critical Infrastructure Exceptions IV. No person shall: (a) Operate a drone or use a drone to photograph or electronically record critical infrastructure within a horizontal distance of 1,000 feet or a vertical distance of 400 feet from such critical infrastructure without the written consent of the owner of the critical infrastructure 15 Parallel Recording Systems (Potentially Discoverable) 16 8

9 Once incorrect data is in the system Who is responsible for auditing your on-line data presence? You are! 17 RISK AREA #5: COMPLIANCE SYSTEMS IN A DATA-HEAVY AGE A Strategic Approach to Compliance Systems Implementation Joel R. Resig, PSEG Environmental Compliance Programs Manager joel.resig@pseg.com 2014 IHS / ALL RIGHTS RESERVED 9

10 opsinfo: Environmental Management Information Systems (EMIS) Generation: >12,000 Megawatts -NG/Oil/Coal/Nuclear -Solar/Pumped Storage >350 Operating Scenarios 42 CEMS DAHS Power Generation: Env. Data Management Compliance Action Tracking (all Permits) Deconstructed into Actionable Tasks Compliance Directly tied to Compensation Strategic Data Management Systems & Data Security (Modeled Hierarchy) (NERC, FERC, NRC, etc.) Data Input (ETL/Automated Imports/DataEntry) Operations Data Acquisition (CEMS/PEMS/DAHS) QA/QC Data Warehousing Data Output UX: Interface & Dashboards Reporting (Reg. Fed/State/Local & Global Indexes) Future (SaaS / PaaS) 2014 IHS 19 EMIS Environmental Management Information Systems (EMIS): Suite of Enterprise Applications & Interconnected Databases Supports Regulatory Reporting & Environmental Compliance Automated Data Acquisition/Validation/Processing/Reporting Graphic Representation of Modeled Compliance Structures Consistent Calculation Methodologies with Robust QA/QC EMIS >65,000 Compliance Tasks / 38,000 Reports EMIS >52 Million Transactional Record Sets EMIS >50 Gigabytes of Environmental Compliance data 2014 IHS 20 10

11 EMIS Air Data Sources 2014 IHS 21 EMIS Reporting: Water Reporting Rules - Calculations Exp (opssum (opsdfe (IF (TYPE( {DLMeasure}) = 16, IF ({C_Meas} < {DLDefault}, ln ({DLDefault} * {DLMargin}/100), ln ({C_Meas}) ), IF ({C_Meas} < {DLMeasure}, ln ({DLMeasure} * {DLMargin}/100), ln ({C_Meas}) ) ), {C_Meas}), REPORT) / opscount ({C_Meas}, REPORT)) opsavg( opsavg (opsdfe ({F_Meas} * IF (TYPE ({DLMeasure}) = 16, IF ({C_Meas} < {DLDefault}, {DLDefault} * {DLMargin}/100, {C_Meas}), IF ({C_Meas} < {DLMeasure}, {DLMeasure} * {DLMargin}/100, {C_Meas})), {C_Meas}), DAY), REPORT) * IF (TYPE ({QFactor}) = 16, 1, {QFactor}) Discharge Monitoring Reports Flexible periodicity: monthly/quarterly Concentrations & Loadings Consistent Calculation Methodologies Geometric Averages for Biological parameters Arithmetic Averages: 4-day & 7-day rolling Continuous monitoring Parameters Referential inclusion Hourly data: aggregate to the day, then month How to report a value: Precision Rounding Parameter Specific Reporting 2014 IHS 22 11

12 opsinfo Reporting: Water Reporting Model Structure opsinfo structure to support the CT DMR To produce the 3 pg. DMR for outfall 001A with 10 reporting Parameters: Model with 27 objects of 18 different classes For a whole Generating Station 9 outfalls with >150 reporting objects 28 pg DMR > 20,000 parameter values Full Station Model w/ >1,000 objects opsinfo I/O & Reporting elements 4 Web Data Imports, 15 Data Entry Forms 2 Export Rovers, 13 Views, 24 Stored Procs 6 QAQC Reports, Rover 108 columns wide Crystal with +50 formulas & custom fields 2014 IHS 23 EMIS: ODS InfoPath Forms Custom Implementation of ODS equipment management tools using Microsoft InfoPath forms directly coupled with the EMIS SQL database 2014 IHS 24 12

13 Risk Area #6: Refrigerants Compliance Ozone-depleting substances 40 CFR Part 82 Protection of Stratospheric Ozone June CFR Part 82 Ozone-depleting substances Primary Focus: Is My Program Sufficient? Key Requirements Refrigerant Management Plan Training & Certifications Leak Detection and Recordkeeping Maintenance of >50 lbs units Ozone Depleting Substances Phase Out 26 13

14 40 CFR Part 82 Ozone-depleting substances Is My Program Sufficient? Understanding > 50 lbs. vs. "prohibition on venting" Leak detection and recordkeeping Can you show that leaks above leak rate thresholds on > 50 lb. appliances have been fixed within 30 days? Can you show that ODS and their substitutes are not being vented regardless of equipment charge? * Records of purchase * Records of use * Records of pre-disposal evacuation * Records of recovery or destruction or ODS Can you produce records of services to demonstrate leak repair and prohibition on venting compliance for the last 3 years? CFR Part 82 Ozone-depleting substances Leak Detection and Recordkeeping: Keep records of maintenance and of any repairs involving transfer of refrigerants especially for >50 lbs units Document the reasons for transfer of refrigerants Document where refrigerant came from and where it went If >50 lbs unit calculate leak rate and make repairs if over the applicable threshold Conduct leak test following repairs to document that the repair was successful 28 14

15 40 CFR Part 82 Ozone-depleting substances Maintenance or >50 lbs units: Keep information on the amount of refrigerant present in each system/cooling loop Classify the units based on comfort cooling and industrial process related cooling Keep record of leak rate calculations for each unit Keep records of all Maintenance events Repair units if leak rate threshold is exceeded within 30 days do the follow up leak test Retire/replace units that leak chronically CFR Part 82 Ozone-depleting substances Records: Purchased Database Excel 30 15

16 40 CFR Part 82 Ozone-depleting substances Ozone Depleting Substance Phase Out: Montreal Protocol Restricts Consumption of ODS not use United States R22 production for new equipment ends Limited production for service and stockpiling for service ends. HCFC stockpiles for future use, or recovered and reclaimed from retired or converted equipment may be used indefinitely. Practical approach to understanding potential business impact Discussion with facilities to make them aware Discussion with service providers to understand specific impact to your site Capital planning or no action required? 31 Questions 32 16