Risk Management Program And Process Safety Management

At a Midwestern water supplier, there was a release of more than 1,000 pounds of chlorine. This cost the supplier more than a half a million dollars in lost equipment and hospitalization of several individuals.

At Morton Specialty Chemicals, Patterson NJ, an explosion on April 8, 1998, injured nine employees and released chemicals into the surrounding community. A nearby business is suing the company for property damage resulting from the incident. In October 1998, the company was fined $7,000 by OSHA for violation of its General Duty Clause, since the company was not covered under PSM, but was operating a hazardous process. The company was not aware that a runaway reaction hazard existed in the process.

On December 17, 2001, a 10,000-pound ammonia release from a citrus processing plant in Florida seriously injured six employees plus two state agriculture department employees and a federal agriculture worker. Original OSHA fines totaled $45,500 (later reduced by 10%) for 41 violations ranging from omissions in training to failure to make shut-off valves easily accessible in an emergency.

In February 2003 a dust explosion completely destroyed a North Carolina pharmaceuticals plant, killing six people and injuring 24. Plant management and employees were unaware of the dust explosion hazard at the facility, and dust is not specifically covered in either PSM or RMP. However, regulators are considering whether to initiate enforcement action based on the General Duty Clause.

In the wake of September 11, 2001, a federal grant in excess of $900,000 was granted to a large gasoline storage terminal on the Savannah River to improve site security. Similar assistance was provided to many US facilities that were determined to be potential terrorism targets by the Office of Homeland Security.

Regulation of industrial facilities has increased extensively starting in 1984 following the Union Carbide release of toluene di-isocyanate in Bhopal, India, and more recently following the September 11, 2001, World Trade Center attack. More important than specific regulation is the broader expectation that industrial facilities have a "general duty" to be familiar with their process hazards and to take action to minimize the risk to employees and the community. Facilities can no longer claim ignorance to the hazards, because regulatory agencies are no longer taking the time to determine if a violation was "willful" or unintentional. Facilities are expected to conduct detailed hazard analyses and vulnerability assessments of all hazardous processes, regardless of regulatory coverage, and to provide information to employees, response agencies and the community regarding prevention and mitigation of any potential incidents.

PROCESS SAFETY MANAGEMENT

The CAA Amendments of 1990 directed the Occupational Safety and Health Administration (OSHA) to develop the Process Safety Management (PSM) rule to require chemical accident prevention in the workplace and protect employees. PSM builds upon existing safety and emergency response regulations. OSHA’s PSM rule, which contains 14 risk evaluation and reduction steps, requires facilities to integrate technologies, procedures, and management practices for handling highly hazardous chemicals. OSHA’s PSM regulations were promulgated in February 1992 and full compliance was required as of May 26, 1997. Regulated facilities are required to develop and implement a Process Safety Management (PSM) program that addresses the following elements:

• Process Safety Information
• Employee Participation
• Process Hazard Analysis
• Operating Procedures
• Employee and Management Training
• Contractor Safety
• Pre-startup Safety Reviews
• Mechanical Integrity
• Hot Work Permits
• Management of Change
• Incident Investigation
• Emergency Planning and Response
• Compliance Audits
• Trade Secrets

RISK MANAGEMENT PROGRAM

To prevent or minimize the potential for serious chemical accidents that could potentially impact the public or the environment, The Clean Air Act Amendments (CAA) of 1990 also mandated that the United States Environmental Protection Agency (USEPA) establish a chemical accident response regulation. Accordingly, the USEPA developed its Risk Management Program (RMP) rule. Compliance with this rule requires facilities that store regulated chemicals in excess of threshold quantities to develop a risk management program similar to the program required by PSM. A risk management plan that describes the risk management program must also be submitted to the USEPA. The risk management plan, including worst-case release scenarios, must also be disclosed to response agencies and must be available to community members upon request. In this way the RMP extends beyond the scope of the PSM regulation by communicating accidental release prevention and response programs to the public and local emergency planning agencies.

FACILITIES REGULATED UNDER USEPA RMP and OSHA PSM

Facilities having greater than the respective PSM and RMP threshold quantities of a regulated chemical in a process are subject to both the USEPA and OSHA rules. However, the legislation behind both the PSM and RMP regulations contains General Duty clauses that may bring a facility under regulation despite reducing a facility’s hazardous chemical inventory below the mandatory thresholds. The lists of chemicals and specific mandatory threshold quantities are published in 40 CFR Part 68 and 29 CFR 1910.119. The lists are very similar; however, the RMP list has additional chemicals, and in some cases has different threshold quantities and concentration limits. The OSHA list has some exemptions that are not recognized by USEPA. Both regulations have unique definitions of what constitutes a single process and also how to classify solutions and mixtures of chemicals. XL Environmental can provide the chemical lists and assistance with the calculations, if needed, or they can be found in the Regulations and Standards section of www.epa.gov or www.osha.gov.

KNOW YOUR PROCESS

Even minor accidents are costly. However, by properly implementing chemical accident prevention and response programs, vulnerability is decreased and facility operations and reliability will improve. A good first step, once you have determined whether you are potentially subject to OSHA PSM or USEPA RMP, is to know your process. An essential first step is to conduct detailed hazard analysis and vulnerability assessments. Follow-up of recommendations resulting from these studies is paramount. Verify and validate materials of construction, relief system sizing, and safety interlock setpoints. Implement a rigorous mechanical integrity program and ensure all operations personnel are fully instructed and trained to perform both routine and non-routine tasks.

XL Environmental has an experienced staff of consultants who can assist you in developing, implementing, and auditing your RMP and PSM programs. We can help you to better understand the unique characteristics of your processes and can recommend steps you can take to reduce the likelihood that incidents will occur and to minimize the consequences of those that do. Our services include:

Emergency Response Program And Planning

The RMP and PSM rules mainly rely on previous requirements for emergency action plans and training. However, USEPA also encourages the use of the new USEPA Integrated Contingency Planning approach. XL Environmental can assist you in developing integrated emergency response protocols which meet the USEPA and OSHA requirements a well as state and local requirements.

Hazard Analysis

Our staff is trained to perform hazard reviews using any of the typical methodologies available. These include What-if Analysis, Hazard and Operability (HAZOP) studies, Failure Modes and Effects Analysis (FMEA), and, for more rigorous analysis, fault tree and event tree construction. Our staff will also learn client-proprietary methodologies.
Our Industrial Risk consultants believe that human factors contribute significantly to the overall risk associated with an industrial process. They have gained extensive experience working with operations and maintenance personnel who are directly responsible for the safe operation of the process. XL Environmental strongly recommends that these hands-on knowledgeable personnel be included in process hazard reviews to provide their unique perspective. Our personnel are comfortable working with all levels of personnel within an organization to ensure that all types of hazards are identified and addressed.

Operating Procedures

Our understanding of the interrelationship between the design of an industrial process and the potential for safe operation of that process uniquely qualifies us to provide accurate and concise operating procedures for the specific process. XL Environmental will work with operations, maintenance and supervisory personnel to develop procedures that ensure the safe and cost-effective operation of the process. Procedures will also comply with the requirements of applicable regulations, codes and standards.

Mechanical Integrity

Our mechanical engineers, drawing on their years of experience, can recommend industry accepted inspection and testing frequencies and develop a preventive maintenance schedule. We develop written programs intended to maintain the ongoing integrity of process equipment.

XL Environmental also has experience developing and presenting training programs for maintenance personnel who perform maintenance on a covered process. The training programs describe training requirements for maintenance personnel, contents of the training courses, and procedures for documenting the training.

Incident Investigation

Incident investigation is required under several regulations and many of our clients agree that it is a useful tool for future accident prevention and cost minimization. Properly conducted incident investigations will identify and address the root cause and contributing causes of an incident. Proper documentation and follow-up will ensure that future incidents are prevented, thus minimizing future costs. XL Environmental can develop client-specific incident investigation procedures that meet the requirements of applicable regulations while effectively utilizing the client's existing resources. We also have experience in the conduct of objective, yet people-sensitive incident investigations. We can also provide expert testimony and litigation support within our areas of expertise.

Training

Initial, refresher and supplementary training for all employees involved in working with the applicable processes must be thorough and include process and safety procedures. Employers are responsible for documenting that each employee has been properly trained. XL Environmental can help you develop training programs and can provide qualified trainers to assist with program implementation.

Management Of Change

Management of change is one of the most difficult procedures to implement at a facility because it is multidisciplinary and must include participation from many departments. To be most effective the management of change program should specify integrated responsibilities for the various departments such as operations, maintenance, engineering, purchasing, storeroom, and laboratory.

XL Environmental has experience developing site-specific Management of Change programs that most effectively utilize existing personnel resources. We can assist with all aspects of the program from initial development through implementation and personnel training. We can also conduct audits of the program and make suggestions for more effective use. As described previously, we have extensive experience in the conduct of the hazard analysis and pre-startup safety review that is required when a change is proposed.

Compliance Audits

In-house compliance audits must be performed at least once every three years to verify that the program elements under PSM and RMP are in place and that they have been implemented. XL Environmental has a staff of trained environmental and health and safety auditors that can help your facility maintain consistency with these programs.

XL Environmental • Risk Control Division • 520 Eagleview Boulevard, PO Box 636, Exton, PA 19341 • Phone: 800-327-1414 • Fax: 610-458-7285 • xlenvironmental.com

XL Environmental is a division of XL Specialty Insurance Company.