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Risk Management
What’s Going?
What’s Staying? Andrew D. Shroads, QEP
614.887.7227 • ashroads@scainc.com
PO Box 1276
Westerville, OH 43086
While every effort has been made to ensure the accuracy of this information, SC&A is not
responsible for any errors or omissions. This information is not a substitute for professional
environmental consulting services. If legal services are required, consult with legal counsel.
What is the Risk Management Program?
Chemical Accident Prevention Provisions – 40 CFR, Part 68
A risk management plan (RMP) is required for sites that store more
than a threshold quantity of a regulated substance
• Toxic materials – §68.130, Table 1
• Flammable materials – §68.130, Table 3
Three program levels of RMP requirements. Each RMP contains:
• Hazards Assessment
• Offsite Consequence Analysis
• 5-year Accident History
• Emergency Response & Accidental Release Prevention Policies
• Operating, Training, and Maintenance Procedures
• Incident Investigation
2
What changes were made?
January 13, 2017: RMP Amendments – Final Rule
• Clarify catastrophic release definition
• Expand incident investigations to include root cause
analysis
• Expand process hazard analysis (PHA) to include ALL
incident investigations (i.e. from similar processes)
• Require incident investigation completion within 12 months
• Require safer technology / alternatives feasibility analysis
• Require third-party compliance audits submitted to U.S.
Environmental Protection Agency
• Annual coordination with local emergency responders
• Require emergency response exercises and reports
• Publicly available information and meetings
3
Ignore theAmendments
• After the change in administration, the Environmental
Protection Agency (EPA) extended the compliance date of
the January 13, 2017 amendments until February 19, 2019
◦ Delay allowed EPA to hold reconsideration hearings on
January 13, 2017 amendments, as rule is not effective
• EPA prepared a proposed rule modifying some of the
January 13, 2017 amendments
◦ Proposed rule issued May 30, 2018
4
Reconsideration – What’s Going
May 30, 2018: RMP Reconsideration – Proposed Rule
Removed:
• Catastrophic release definition
• Incident Investigations:
◦ Root cause analysis
◦ Investigative team composition
◦ Completion within 12 months
• Process hazard analysis (PHA) to include ALL incident
investigations (i.e. from similar processes)
• Safer technology / alternatives feasibility analysis
• Supervisor training requirements
• Third Party Audits
• Publicly available information
5
Reconsideration – What’s Staying
May 30, 2018: RMP Reconsideration – Proposed Rule
Retained:
• Classified and confidential business information definitions
• Coordination with local emergency responders
◦ Annual testing of emergency response notifications
◦ Field exercises with local emergency responders
◦ Tabletop exercises with local emergency responders
• Public meeting following accidents
• Disclosure to EPA of emergency response exercises and
public meetings
6
Going Forward
• This action by EPA maintains a divergence between the
Occupational Safety and Health Administration (OSHA)
Process Safety Management (PSM) program and the
EPA RMP program
◦ EPA will now have different, additional requirements
than the OSHA PSM program
◦ EPA & OSHA will coordinate to incorporate rescinded
amendments into both the PSM & RMP programs
• California and Washington State are incorporating the
more stringent amendments into state PSM programs
7
Comments on Proposed Rule
Since the reconsideration is only a proposed rule, you can
submit comments to EPA:
• https://www.gpo.gov/fdsys/pkg/FR-2018-05-
30/pdf/2018-11059.pdf
• 83 FR 24850, Wednesday, May 30, 2018
• Docket: EPA–HQ–OEM–2015–0725
8
Difference between must and should
• Although EPA is removing RMP requirements, does that
mean that you should not include them in your RMP?
◦ Should process supervisors be trained?
◦ Should incidents at similar operations be used when
reviewing process hazards analysis?
◦ Should incident investigations include a root cause
analysis?
• RMPs are developed using codes and standards, using
generally accepted good engineering practices
◦ Cite various codes and standards to support practices
included in RMP
◦ Is your RMP a document that satisfies the regulations,
or does it document your public protection program?
9

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Risk Management Plan Changes

  • 1. Risk Management What’s Going? What’s Staying? Andrew D. Shroads, QEP 614.887.7227 • ashroads@scainc.com PO Box 1276 Westerville, OH 43086 While every effort has been made to ensure the accuracy of this information, SC&A is not responsible for any errors or omissions. This information is not a substitute for professional environmental consulting services. If legal services are required, consult with legal counsel.
  • 2. What is the Risk Management Program? Chemical Accident Prevention Provisions – 40 CFR, Part 68 A risk management plan (RMP) is required for sites that store more than a threshold quantity of a regulated substance • Toxic materials – §68.130, Table 1 • Flammable materials – §68.130, Table 3 Three program levels of RMP requirements. Each RMP contains: • Hazards Assessment • Offsite Consequence Analysis • 5-year Accident History • Emergency Response & Accidental Release Prevention Policies • Operating, Training, and Maintenance Procedures • Incident Investigation 2
  • 3. What changes were made? January 13, 2017: RMP Amendments – Final Rule • Clarify catastrophic release definition • Expand incident investigations to include root cause analysis • Expand process hazard analysis (PHA) to include ALL incident investigations (i.e. from similar processes) • Require incident investigation completion within 12 months • Require safer technology / alternatives feasibility analysis • Require third-party compliance audits submitted to U.S. Environmental Protection Agency • Annual coordination with local emergency responders • Require emergency response exercises and reports • Publicly available information and meetings 3
  • 4. Ignore theAmendments • After the change in administration, the Environmental Protection Agency (EPA) extended the compliance date of the January 13, 2017 amendments until February 19, 2019 ◦ Delay allowed EPA to hold reconsideration hearings on January 13, 2017 amendments, as rule is not effective • EPA prepared a proposed rule modifying some of the January 13, 2017 amendments ◦ Proposed rule issued May 30, 2018 4
  • 5. Reconsideration – What’s Going May 30, 2018: RMP Reconsideration – Proposed Rule Removed: • Catastrophic release definition • Incident Investigations: ◦ Root cause analysis ◦ Investigative team composition ◦ Completion within 12 months • Process hazard analysis (PHA) to include ALL incident investigations (i.e. from similar processes) • Safer technology / alternatives feasibility analysis • Supervisor training requirements • Third Party Audits • Publicly available information 5
  • 6. Reconsideration – What’s Staying May 30, 2018: RMP Reconsideration – Proposed Rule Retained: • Classified and confidential business information definitions • Coordination with local emergency responders ◦ Annual testing of emergency response notifications ◦ Field exercises with local emergency responders ◦ Tabletop exercises with local emergency responders • Public meeting following accidents • Disclosure to EPA of emergency response exercises and public meetings 6
  • 7. Going Forward • This action by EPA maintains a divergence between the Occupational Safety and Health Administration (OSHA) Process Safety Management (PSM) program and the EPA RMP program ◦ EPA will now have different, additional requirements than the OSHA PSM program ◦ EPA & OSHA will coordinate to incorporate rescinded amendments into both the PSM & RMP programs • California and Washington State are incorporating the more stringent amendments into state PSM programs 7
  • 8. Comments on Proposed Rule Since the reconsideration is only a proposed rule, you can submit comments to EPA: • https://www.gpo.gov/fdsys/pkg/FR-2018-05- 30/pdf/2018-11059.pdf • 83 FR 24850, Wednesday, May 30, 2018 • Docket: EPA–HQ–OEM–2015–0725 8
  • 9. Difference between must and should • Although EPA is removing RMP requirements, does that mean that you should not include them in your RMP? ◦ Should process supervisors be trained? ◦ Should incidents at similar operations be used when reviewing process hazards analysis? ◦ Should incident investigations include a root cause analysis? • RMPs are developed using codes and standards, using generally accepted good engineering practices ◦ Cite various codes and standards to support practices included in RMP ◦ Is your RMP a document that satisfies the regulations, or does it document your public protection program? 9