PROCESS SAFETY MANAGEMENT VS RISK MANAGEMENT

1. PROCESS SAFETY MANAGEMENTVS RISK MANAGEMENT An Overview Tracy Estes, CSP James E. Roughton, MS, CSP, CRSP, CHMM

2. Process Safety Management • Required by the Environmental Protection Agency's (EPA) Clean Air Act Amendments (CAAA), Section 304 • Promulgated - February 24, 1992 • 5 year implementation • Proactive identification, evaluation, and mitigation or prevention of chemical releases that could occur as a result of failures in processes, procedures, or equipment • 130 highly hazardous chemicals (HHC’s)

3. Process Safety Management (continued) • 10,000 lb. or more of flammable materials that are used at or above their boiling points • Pyrotechnics and explosives manufacturers • More than 28,000 facilities affected • Exemptions: • fuels used for workplace consumption • Comfort heating • Gasoline for vehicles

4. Risk Management Plan • Mandated by CAAA, Section 112 (r), 40 CFR Part 68 • Promulgated - May 24, 1996 • Published Federal Register - June 20, 1996 • More than 100,000 facilities affected • Designed to help reduce risk of accidental release of hazardous substances • 3 years to implement

5. Risk Management Plan (continued) • Affects owners of a stationary source with regulated substances above a threshold quantity (TQ): • 77 acutely toxic • 63 flammable • Department of Transportation (DOT) classified explosive substances

6. EPA’s Visions for Accidental Release Prevention • Emphasize community right-to-know • Let information drive action • Focus the program at the local level • EPA support • Coordinate communications at local level

7. Key Features of RMP • Prevention program • 7-elements “mini-PSM” program • 14 elements OSHA-PSM program expanded to address offsite effects • Emergency response program • Risk management plan • Electronic submission to state and LEPC • Available to public • Regulatory audits

8. Key Features (continued) • 3 Program levels • Management system • Offsite consequence analysis • Worst-case scenario • Alternative release scenario • 5-year accident history

9. Key Features (continued) • Summarizes key elements of the RMP program • Tells a story • Hazards at the site • Accident history • Potential offsite consequences • Prevention steps • Response program

10. Exemptions to Threshold Quantity • Articles • Laboratories • Uses: • Structural components • Janitorial maintenance • Foods, drugs, cosmetics, or other personal items • Present in process water or non-contact cooling water • Compressed air or as part of combustion

11. EPA’s Regulatory Approach • Performance-based approach • Similar to OSHA’s PSM • Build on existing programs and standards • Scale the requirements to fit the risk • Coordinate with OSHA and DOT

12. Requirements of 112 (r) • Established a general duty clause to: • Identify hazards that may result from releases • Design and maintain a safe facility • Minimize the consequences or releases

13. Requirements of 112(r) (continued) • Required EPA to promulgate a list of substances and set thresholds • Required EPA to develop a risk management program (RMP) rule • Register with EPA • Conduct a hazard assessment • Develop a prevention program • Develop an emergency response program

14. Requirements of 112 (r) (continued) • Provide a summary (RMP) to • EPA • States • Locals • Public

15. Basic Principles • Build on EPCRA • Emphasize community right-to-know • Focus the program at the local level • Where the risk is found

16. Basic Principles (continued) • Accommodate small business concerns • Provide model RMPs • Ammonia • Warehouses with chemicals • Batch processors • Refineries/gas plants • Provide reference tables for offsite consequences analysis

17. Manufacturing Industries Affected • Chemical manufacturers • Industrial Organics & Inorganics • Paints • Pharmaceuticals • Adhesives, • Sealants • Fibers

18. Manufacturing Industries Affected (continued) • Petrochemical Products • Refineries • Industrial Gases • Plastics and Resins • Synthetic Rubber

19. Non-Manufacturing Affected (continued) • Non-Manufacturing Facilities affected • Utilities • Electric and Gas • Public Sources • Drinking Water and Waste Water Treatment • Agriculture • Fertilizers, Pesticides

20. Other Manufacturing • Electronics • Semiconductors • Paper • Fabricated metals • Industrial machinery • Furniture • Textiles

21. Other Industries • Food and Cold Storage • Propane Retail • Warehousing • Wholesalers • Federal sources • Military and Energy Installations

22. PSM vs. RMP Requirements • PSM’s concern - potential hazard and protection of employees inside a regulated area • RMP’s concern - potential incidents that may cause environmental and health hazards outside facility boundaries • Editorial changes to PSM to make text consistent with the CAAA's language

23. Hazard Assessment • Offsite consequence data • Population estimate • Public receptors • Environmental receptors • Every 5 years • Within 6 months of a change that increases or decreased distance by a factor of 2 or more

24. Overview Worst-Case Scenario (WCS) • Greatest quantity from vessel or piping • May include administrative controls • Toxic gases • Quantity released in 10 minutes • Toxic liquids • Instantaneous spill to ground; volatilization; passive mitigation • Toxic gases liquefied by refrigeration

25. Worst-Case Scenario (continued) • All flammable substances • Quantity for vapor cloud explosion • One worst case for each process • One worse case representing all toxic substances • Additional worst case(s) different public receptors • Other considerations • Smaller quantities at higher temperature or pressure • Source boundary proximity

26. Alternative Release Scenario (ARS) • More likely than a worst case scenario • Much reach endpoint offsite • One scenario representative of all flammables

27. ARS Selection • Accident history events • Process hazard analysis events • Worse case with mitigation • Example scenarios: • Piping or hose failures • Seal failures • Vessel overfilling or venting

28. List of Substances and Thresholds • Focuses on lethal effects resulting from acute exposures • Includes mandated substances

29. Ammonia Anhydrous Ammonia Anhydrous Hydrogen Chloride Anhydrous Sulfur Dioxide Bromine Chlorine Ethylene Oxide Hydrogen Cyanide Hydrogen Fluoride Hydrogen Sulfide Methyl Chloride Methyl Isocyanate Phosgene Sulfur Trioxide Toluene Diisocyanate Vinyl Chloride Mandated Substances

30. Toxic Substances • Extremely hazardous substances under SARA • Gases and highly volatile liquids • Vapor pressure > 10 mmHg • Thresholds ranging from 500-2,000 lbs. • Thresholds based on toxicity and volatility

31. Flammable Substances • NFPA 4 • Most dangerous • Flammable gases and volatile flammable liquids that could create vapor cloud explosions • Thresholds set at 10,000 lbs.

32. Threshold Quantity Determination • Total quantity of a regulated substances contained in a process at any one time • Process included interconnected vessels or separate vessels that could be involved in a release (OSHA PSM definition)

33. Offsite Consequence Analysis • Toxic endpoint • Flammable endpoints • Use appropriate models or guidance • Within circle, identify • Public receptors and population • Environmental receptors

34. Registration and Submittal • Submit a comprehensive RMP to: • EPA • State Emergency Response Commission (SERC) • Local Emergency Planning Committee (LEPC) • The Chemical Safety and Hazard Investigation Board

35. Registration and Submittal (Continued) • Name, mailing address, telephone of stationary source • CAS number of all regulated substances greater than TQ • SIC code • Dun and Bradstreet number • Certification signed by owner or operator

36. Auditing the Program • Conduct audits of the management system

37. Program Eligibility Criteria • Three Programs

38. Program 1 - No impact • Register • Conduct worst-case hazard assessments • Certify no off-site consequences for worst-case scenario • Ensure inclusion in LEPC plan • Submit RMP document above

39. Program 3 - Full RMP • One comprehensive prevention program that: • Protects workers • The public • The environment • Hazard review information • Hazards • Controls • Mitigation • Changes

40. Program 3 (continued) • Register • Conduct worst-case and other hazard assessments • Implement comprehensive prevention steps (OSHA PSM plus...) • Develop emergency response plan • Submit RMP

41. Program 3 (continued) • Process is subject to OSHA's PSM • Processes in specific SIC codes • Pulp Mills (2611) • Chlor-Alkali (2812) • Industrial Inorganic (2819) • Plastics and Resins (2821) • Cyclic Crudes (2865) • Industrial Organics (2869) • Nitrogen Fertilizers (2873) • Agricultural Chemicals (2879) • Petroleum Refineries (2911)

42. Program 2 - Streamlined Prevention Program • The process is not eligible for Program 1 or 3

43. Program 2 (continued) • Statutory requirements • Training • Maintenance • Safety Precautions • Monitoring

44. Program 2 (continued) • Types of sources: • Less complex; fewer changes • Ideal model program and plans • Capture good management practices from PSM but less documentation • Take advantages of other rules and standards • Take advantages of equipment manufacturer or vendor information

45. Program 2 (continued) • Process information (SIC, chemicals) • List rules, standards, design codes • Hazard review information • Hazards • Controls • Mitigation • Changes

46. Program 2 (continued) • Register • Conduct worst-case and other hazard assessments • Implement seven elements of prevention program • Develop emergency response plan • Submit RMP

47. Comparison of Program Requirements Hazard Assessment Program 1 Program 2 Program 3 Worst-case analysis Worst-case analysis Worst-case analysis Alternative releases Alternative releases 5-year accident history 5-year accident history 5-year accident history

48. Comparison (continued) Management Program Document Program 1 Program 2 Program 3 Management System Management System

49. Comparison (continued) Prevention Program Program 1 Program 2 Program 3 Certify no additional Safety Information Process Safety Information steps Required Hazard Review Process Hazard Review Operating Procedures Operating Procedures Training Training Maintenance Mechanical Integrity Incident Investigation Incident Investigation

50. Comparison (continued) Prevention Program (continued) Program 1 Program 2 Program 3 Compliance Audit Compliance Audit Management of Change Pre-Startup Review Contractors Employee Participation Hot Work Permits