Hot Topics in CAA 112(r) Federal Program Update

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1 Hot Topics in CAA 112(r) Federal Program Update 8 th Annual Georgia Environmental Conference Rob Scogin, PSM/RPM Compliance Director Millard Refrigerated Services, Inc. August 22, 2013

2 Agenda Background Risk Management Program General Duty Clause EPA Enforcement Questions 2

3 Background 3

4 Why Address Risk Management? Congressional response to preventing further major chemical accidents: Bhopal, India (Methyl Isocyanate release, 2,800 deaths, 1984) Institute, West Virginia (100 plus injured, 1985) Pasadena, Texas (plastics plant fire, 23 deaths, 1989) 4

5 Why Address Risk Management? Waco, Texas - ammonia plant explosion, 14 deaths,

6 Risk Management Program Federal Statutory Provisions EPCRA Emergency Planning and Community Right-to- Know Act (SARA Title III), Sections CERCLA Comprehensive Environmental Response, Compensation and Liability Act, Section 103 CAA Clean Air Act Section 112(r)(7), Chemical Accident Prevention Provisions and Risk Management Plans; and Section 112(r)(1) General Duty Clause 6

7 CAA Section 112(r) Regulatory requirement for subject facilities to file a Risk Management Plan (RMP) by June 21, 1999 or before covered chemical is on site Includes General Duty Clause (GDC) requiring facilities to consider hazards and minimize risk posed by chemicals 7

8 EPA s Risk Management Program 8

9 Who is subject to the RMP regulations? Stationary sources that have more than a threshold quantity (TQ) of a listed substance EPA has developed a list of chemicals: 77 toxic 63 flammable If a facility stores one of these chemicals at quantities greater than a TQ.. THE FACILITY MUST HAVE A RISK MANAGEMENT PLAN 9

10 Key Elements of RMP Employee participation plan Process safety information (documentation of the process) Process Hazard Analysis (PHA) Operating procedures Operator training Contractor evaluation and selection Pre-start-up safety reviews 10

11 Key Elements of RMP Cont d Mechanical integrity program Hot work permitting process Management of Change (MOC) Incident investigation Emergency planning and response Compliance audits 11

12 RMP Filing Facilities must resubmit RMPs at 5 year intervals There are additional/on-going responsibilities it is not a static program that ends with filing of RMP Certification of receipt and completion from RMP Reporting Center does not indicate that an RMP is in compliance with regulations 12

13 General Duty Clause 13

14 General Duty Clause CAA 112(r)(1) Statutory requirement, effective as of November 1990 No list of covered substances, no threshold quantities No reporting requirement, information sharing with public not required No exemptions or exclusions 14

15 General Duty Clause CAA 112(r)(1) The owners and operators of stationary sources producing, processing, handling or storing such substances [i.e., a chemical in 40 CFR part 68 or any other extremely hazardous substance] have a general duty [in the same manner and to the same extent as the general duty clause in the Occupational Safety and Health Act (OSHA)] to identify hazards which may result from (such) releases using appropriate hazard assessment techniques, to design and maintain a safe facility taking such steps as are necessary to prevent releases, and to minimize the consequences of accidental releases which do occur. 15

16 Substances Covered Under GDC Extremely hazardous substances Short-term exposures associated with releases to air may cause death, injury, or property damage due to toxicity, reactivity, flammability, volatility, or corrosivity Includes, but not limited to, RMP list of toxic and flammable substances 16

17 Facility Responsibilities Under GDC Identify hazards of chemicals, and assess impact of potential releases Design and maintain safe facilities Follow codes, standards, and other business practices Minimize consequences of accidental releases 17

18 GDC Considerations for Safe Practices What are similar businesses doing to minimize hazard? Codes and standard practices EPA and other Safety Alerts, Case Studies, and Investigation Reports Trade association guidelines What is the accident history of my industrial sector? Lessons learned 18

19 EPA Enforcement 19

20 EPA s Enforcement Initiatives Fiscal Years : Preventing the release of raw sewage and contaminated stormwater Preventing animal waste from contaminating surface and ground waters Cutting toxic air pollution that affects health Reducing air pollution from largest sources Reducing pollution from mineral processing operations Assuring energy extraction sector compliance 20

21 EPA Enforcement Overview Inspection Information request Administrative Compliance Order Penalty action Administrative Judicial Referral Criminal 21

22 EPA RMP and GDC Enforcement Case Date Penalty Injunctive Relief Tyson Foods 4/4/2013 $3.9 million RMP audits at 21 facilities JP Lillis Enterprises, d/b/a Cape Cod Ice Suiza Dairy Corporation C.A.I., Inc. of Danvers, Massachusetts BP Products North America Inc. D.D. Williamson & Co, Inc. 1/9/2013 $225,000 Various corrective actions related to its ammonia program 9/28/2012 $275,000 $3.75 million in facility upgrades 8/15/2011 $100,000 $1.3 million for site clean-up related to a removal action caused by a fire 9/30/2010 $15 million Implement defined compliance program including monthly reports to EPA 10/7/2009 $300,000 Conduct RMP audit and take corrective actions based on that audit 22

23 Questions Rob Scogin Director of Compliance, PSM/RMP Millard Refrigerated Services Inc. 200 King Mill Road McDonough, GA P F M rscogin@millardref.com 23