PSM/RMP C HSE

Transcription

1 Forget About the Feds, States are Moving on Expanded PSM/RMP Rulemaking - California Dreamin or a Glimpse into the Future? C HSE Conference, San Antonio, TX

2 Today s Agenda Tale of the Tape California Refinery PSM/ARP Legislation History Other States California Refinery PSM/ARP Regulation v. Federal - Scope - Employee Representative - Major Change - Management of Organizational Change - Human Factors - Process Safety Culture Assessment What Actions Companies Should Take Closing and Q&A 2

3 Tale of the Tape Universe of RMP Facilities Approximately 12,500 RMP Facilities EPA RMP Amendments Regulatory Impact Analysis, 12/16/16 3

4 Tale of the Tape RMP 10 Year Accident History EPA RMP Amendments Regulatory Impact Analysis, 12/16/16 4

5 Tale of the Tape RMP Accidents by Industry Sector EPA RMP Amendments Regulatory Impact Analysis, 12/16/16 5

6 Tale of the Tape - California Total in U.S. 1,328 RMPs have an accident history 24 RMPs have had fatal accidents $1.3 Billion in Property Damage 127,039 people have been evacuated 16,598 Injuries or Sought Medical Attention California Top Ten - #1 with 15,098 RMP related injuries - #1 with 75,526 RMP related evacuations - #3 with 75 RMP 5-year accident history The data were obtained from the U.S. EPA's Risk Management System database 6

7 Tale of the Tape State OSHA Plans State Approved OSHA Plans Alaska Maryland Puerto Rico Arizona Michigan South Carolina California Minnesota Tennessee Connecticut Nevada Utah Hawaii New Jersey Vermont Illinois New Mexico Virgin Islands Indiana New York Virginia Iowa North Carolina Washington Kentucky Oregon Wyoming Maine 2016 Presidential Election 7

8 Other States Section 18 of the OSHA Act states may administer their own State Plans, if they meet minimum federal requirements Currently 22 states and jurisdictions administer State Plans Majority of state plans adopt Federal OSHA regulations and standards verbatim States Plans that differ significantly from Federal OSHA - California - Michigan - Oregon - Washington January, 2018 Washington Department of Labor and Industries Division of Occupational Safety and Health releases draft safety rule increasing existing PSM requirements for refineries Washington draft rule mirrors new California regulations 8

9 California Refinery PSM/ARP Regulatory History Aug. 2012: Fire at Chevron s Richmond Refinery Fall 2012: Interagency Working Group, with CalEPA and CalOSHA to improve public and worker safety through enhanced oversight of refineries Feb. 2014: Interagency Working Group report on four key areas: - Oversight and coordination - Emergency Response and Preparedness - Safety and Prevention of Hazardous Events - Improved communication and interaction with the public and surrounding environment July 2016: Proposed Refinery PSM Standard May 2017: Refinery PSM Standard approved by CA Occupational Safety and Health Standards Board Oct. 2017: Refinery PSM Standard for refineries goes into effect - CalARP simultaneously issues complimentary RMP regulation for refineries 9

10 California PSM Regulation Scope California Petroleum refinery activities involving a highly hazardous material Utilities and process equipment included if they could potentially contribute to a major incident Process Equipment is broadly defined Process includes interconnected vessels and vessels that could affect another vessel Excludes office buildings, labs, warehouses, maintenance shops and change rooms Federal Specific chemicals and threshold quantities Category 1 flammable gases > 10,000 lb. Flammable liquids with a flashpoint < 100 F and > 10,000 lb. Exceptions (e.g. atmospheric tanks) 10

11 California PSM Regulation Employee Representative California Union facility union representative Non-union facility employee designated representative Term is to be construed broadly May include local union or international union May include a designated contract employee Federal Not defined Consult with employees and their representative on development of PSM Consult with employees and their representative on the conduct and development of PHA s Provide employees and their representative access to PHA s and all other information 11

12 California PSM Regulation Major Change California Introduction of a new process Introduction of new process equipment Introduction of new highly hazardous material Any operational change outside of established safe operating limits Any alteration that introduces a new process safety hazard or worsens an existing process safety hazard Must complete a Damage Mechanism Review (DMR) and Hierarchy of Controls Analysis (HCA) Must include a written analysis of Human Factors Federal No distinction between a Major Change and Change Inform and train employees, update procedures and PSI, conduct PSSR 12

13 California PSM Regulation Hierarchy of Controls Analysis California For all PHA recommendations with a potential for a Major incident For all Incident Investigation recommendations from a Major Incident As part of a Major Change review During the design and review of new processes HCA team must develop written recommendations in priority order: - Eliminate hazards using first order inherent safety measures; - Reduce any remaining hazards using second order inherent safety measures; - Effectively reduce remaining risks using passive safeguards; - Effectively reduce remaining risks using active safeguards; and, - Effectively reduce remaining risks using procedural safeguards. Federal No requirement for HCA Proposed in RMP Amendments in PHA s for Chemical/Refineries/Paper 13

14 California PSM Regulation Implementation California Employer may reject a team recommendation if: - It contains material factual error - The recommendation is not relevant to process safety, - The recommendation is infeasible (not based solely on cost) Employer may change a team recommendation if that an alternative measure would provide an equivalent or higher order of inherent safety Employer may change a team recommendation for a safeguard if an alternative safeguard provides an equally or more effective level of protection Federal Promptly address and resolve the incident report findings and recommendations Document resolutions and corrective actions 14

15 California PSM Regulation Management of Organizational Change California Conduct MOOC prior to - Reducing staffing levels -Reducing classification levels of employees - Changing shift duration -Increasing employee responsibilities at or above 15%. Provide for employee participation Applies to contractors in permanent positions Federal MOC is required for equipment, technology, procedures, materials and processing conditions if not replaced in kind, but not for organizational changes 15

16 California PSM Regulation Human Factors California Analysis of Human Factors in - Major Changes - Incident Investigations - PHA s - MOOC s Standalone analysis of operating and maintenance procedures every 5 years Federal PHA s shall address Human Factors 16

17 California PSM Regulation Process Safety Culture Assessment California PSCA required every 5 years Shall include an individual with expertise in assessing process safety culture in petroleum refining Provide for employee representative Evaluate the effectiveness of: Federal - Hazard reporting program - The employer s response to reports of hazards - Incentive program - Emergency procedures General duty to provide a place of employment free from recognized OSHA s new anti-retaliation rule 17

18 What Actions Should Companies Take? Assess existing PSM/RMP programs against new requirements Optimize programs to be in the best compliance position Understand new requirements and possible interpretations to defend potential citations Consider implementing new requirements to improve process and potentially grandfather in existing programs Consider required skill sets (e.g. human factors, damage mechanism reviews) in hiring and succession planning 18

19 In Closing New California PSM/ARP regulations contain vague language and present challenges in implementation and compliance Washington State DOSH has issued draft regulations that mirror California Other states may follow New rules can affect agency interpretation of existing PSM/RMP rules Companies should review and optimize their existing programs to be in compliance and defend against citations Questions? 19

20 Dan Grucza Dan s clients turn to him for advice on matters related to process safety management (PSM), occupational safety and environmental issues in chemical and industrial manufacturing and mining. As a chemical engineer, and former chemical plant Environmental, Health & Safety (EHS) manager and in-house counsel, he provides a unique perspective to strategic operational efficiencies and corporate compliance. Contact dgrucza@hunton.com Atlanta direct Counsel Education JD, Faulkner University, 2002, cum laude MS, Industrial Engineering, Auburn University, 1994 BS, Chemical Engineering, Auburn University, 1982 Bar Admissions Alabama Georgia Dan brings unique and deep experience in the complex chemical manufacturing, foundry, mining and coking industries. He was Senior Counsel and Vice President of a major energy company and provided legal support for mines, gas operations, foundries, manufacturing facilities and distribution centers in the United States, Canada, and Wales. Dan also served as Corporate Compliance Officer, responsible for compliance programs, conducting training, due diligence, and hotline complaint responses. Dan has a strong chemical and technical background that complements his legal training and experience. He was an EHS Manager for over 10 years for one of the world s largest companies, where he had responsibility for EHS compliance, Process Safety Management, Risk Management, Security, Wastewater Treatment Operations, auditing, and training. Selected Relevant Experience Advised energy company on scene of employee and contractor fatalities and subsequent agency investigations, enforcement and private actions. Managed release of toxic gas from plastics plant, including crisis management, interface with regulators, and corrective actions. Lead Counsel in response to refinery fire resulting in significant media attention and agency response. Advised large mining company during significant slurry spill into navigable waters, including reporting, citations, abatement actions and successful resolution of dispute with insurance company. Handled multiple other spills and releases at manufacturing operations. 20

21 Presentation at 4C SHE Conference San Antonio, TX