changes in the psm/rmp regulatory framework – california ...9 ii.c.4 management of organizational...
TRANSCRIPT
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Changes in the PSM/RMP Regulatory Framework –California and National
Jordan M. Schultz
Risk Management ProfessionalsU.S. 877-532-0806 ♦ www.RMPCorp.com
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Key Topics
• Current SMS ProgramElements & Overlap
• Expansion/ModernizationInitiatives Overview
• Key Elements of Regulatory Expansion/Modernization Initiatives
• Potential Impact on Your Programsand Tips for ManagingYour Efforts
• Questions?
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Current Safety Management System (SMS) Program Elements
& Overlap
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Evolution of SMS Guidelines & Regulations to Performance (Goal) – Based Standards
Onshore Process Safety (USA)
Offshore Safety Management Systems (USA)
Offshore Safety Management Systems (UK)
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
PSM Elements
PSM
EPPSI
PHA
OP
TRN
CON
PSSRMI
HWP
MOC
II
EP&R
CA
• Employee Participation• Process Safety Information• Process Hazard Analysis• Operating Procedures• Training• Contractors• Pre-Startup Safety Review• Mechanical Integrity• Hot Work Permit• Management of Change• Incident Investigation• Emergency Planning &
Response• Compliance Audits
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Overlap of Key Current CA SMS Programs
PSM CalARP/RMP
EP
HA
PSIPHA
OP
TRN
MI
MOC
PSSRII
EPR
HWPCON
Minimal
GD(RMP)
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Overview of SMS Program Expansion/Modernization
Initiatives
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
EPA
CSB
OSHA
Key Modernization Activities
www.RMPCorp.com/SMS_Regulatory_Updates/
IRTF
OES
Cal/OSHA5189.1 & 5189
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
SMS Regulatory Activities
EPA & OSHA
Chemical Safety Board & Whitehouse
California Agencies & Initiatives
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Key Elements of Regulatory Expansion/Modernization Efforts
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Key Changes for the Oil and Gas Industry
• Regulatory Updates: – OSHA PSM
• Processing Comments (Comment Period ended 31Mar2014)– EPA RMP
• Processing Comments (Comment Period ended 29Oct2014)– Cal/OSHA
• PSM for Refineries (PSM-R, 8 CCR 5189.1)– CalARP
• January 1, 2015 – Minor amendments implemented• Upcoming major changes in response to PSM-R and Interagency Task Force on
Refinery Safety (ITFRS) / CSB Recommendations from the Richmond Refinery
• Oil and Gas Industry Key Changes: – Cal/OSHA PSM-R– OSHA removing the Oil and Gas Production Exemptions– Changes to PHA, MOC, and Incident Investigations
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Cal/OSHA PSM for Refineries (8 CCR 5189.1)
• Released 9Sept2014 and updated 31Oct2014 • Requirements are specific to NAICS 32411 in California• 21 Elements to Cal/OSHA’s 5189.1
– 13 existing elements, with some involving major updates (e.g., root cause analysis required for Incident Investigation)
• Trade Secrets are not listed as an element for 5189.1– 8 new elements:
• Damage Mechanism Review (DMR)• Hierarchy of Hazard Control Analysis (HCA)• Process Safety Culture Assessment (PSCA)• Human Factors• Management of Organizational Change (MOOC)• Safeguard Protection Analysis (SPA)• PSM Management System• Access to Documents and Information
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Current OSHA, EPA, & Cal/OSHA Initiatives(*)
Topic OSHA RFI
EPA RFI
Cal/OSHA
Atm. Storage Tank PSM Exemption Clarification 1 --- N/AInclusion of Oil/Gas-Well Drilling & Servicing 2 --- N/AInclusion of Oil/Gas-Production Facilities 3 --- N/AExpanding Coverage & Requirements for Reactivity Hazards
4 II.C.1.d
N/A
Updating the List of Applicable Chemicals / Threshold Quantities
5 II.C.1 N/A
Require Additional Management System Elements
Risk Based Process Safety (RBPS):- Measurement & Metrics- Management Review & Continuous Improvement- Process Safety Competency
BSEE/SEMS Revisions:- Stop Work Authority- Ultimate Work Authority- Employee Participation Plan
6 II.C.2 5189.1(q)
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Current OSHA, EPA, & Cal/OSHA Initiatives(*)
Topic OSHA RFI
EPA RFI
Cal/OSHA
Evaluation of Updates Applicable to RAGAGEP 7 II.C.3 5189.1(d)Adding a Definition for RAGAGEP 8 II.C.3 5189.1(c)Cover the Mechanical Integrity of Any Safety-Critical Equipment
9 II.C.4
Management of Organizational Changes 10 II.C.5 5189.1(t)Require Coordination of Emergency Planning with Local Emergency-Response Authorities
11 II.D.5 ---
Require Third-Party Compliance Audits 12 II.C.6 ---Expanding the Requirements of §1910.109 to Cover Dismantling and Disposal of Explosives, Blasting Agents, and Pyrotechnics
13 II.C.1.b N/A
Updating §§1910.106 and 1910.107 Based on the Latest Applicable Consensus Standards
14 --- N/A
Regulations Addressing the Storage, Handling, & Management of Ammonium Nitrate
15 II.C.1.b/c, II.D.1
N/A
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Current OSHA, EPA, & Cal/OSHA Initiatives(*)
Topic OSHA RFI
EPA RFI
Cal/OSHA
Enforcement of the PSM/RMP Exemption for Retail Facilities
16 II.C.7 N/A
Enforcement Policy for Highly Hazardous Chemicals Without Specific Concentration Thresholds
17 --- N/A
Safer Technology and Alternatives Analysis --- II.D.1 5189.1(e, l)
Emergency Drills to Test ERP --- II.D.2 ---Automated Detection and Monitoring --- II.D.3 ---Additional Stationary Source Requirements --- II.D.4 N/AIncident Investigation and Accident History Requirements
--- II.D.6 5189.1(o)
WCS Quantity Requirements for Numerous Small Vessels
--- II.D.7 N/A
Public Disclosure of Information to Promote Compliance and Public Understanding
--- II.D.8 N/A
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Current OSHA, EPA, & Cal/OSHA Initiatives(*)
Topic OSHA RFI
EPA RFI
Cal/OSHA
Changes to Threshold Quantities and Endpoints for OCAs
--- II.D.9 N/A
Program 3 NAICS Code Changes due to RMP Accident History Data
--- II.D.10 N/A
“Safety Case” Regulatory Model --- II.D.11 ---Streamlining RMP Requirements --- II.D.12 N/APHA Recommendation Closure Timeline --- --- 5189.1(e)Damage Mechanism Review (DMR) --- --- 5189.1(e,k)Hierarchy of Hazard Control Analysis (HCA) --- --- 5189.1(e,l)Safeguard Protection Analysis (SPA) --- --- 5189.1(e,u)Contractor Safety Research and Documentation --- --- 5189.1(h)Management of Change (Interaction with Other PSM Elements)
--- --- 5189.1(j)
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Current OSHA, EPA, & Cal/OSHA Initiatives(*)
Topic OSHA RFI
EPA RFI
Cal/OSHA
Incident Investigation (Specific Requirement for a RCA and Performance of DMR, PHA, HCA, SPA on Recommended Actions)
--- --- 5189.1(o)
Process Safety Culture Assessment (PSCA) --- --- 5189.1(r)Human Factors Program --- --- 5189.1(s)Compliance Audits (Now Included in 5189) --- --- 5189.1(v)PSM Management System --- --- 5189.1(w)
(*) REFERENCES OSHA 31Mar14 RFI on 17 Topics Associated with “Modernization” of PSM EPA 31Jul14 RFI Cal/OSHA 31Oct14 Proposed “Process Safety Management for Refineries”
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
2015 CalARP Amendments
• General Requirements: – Changes to the Public Notice Process
• Removed initial public notice requirement• Formal public review can be published on AA’s website
• Hazard Assessment: – Alternative Release Scenario should reach a public receptor– Scenarios can be taken from industry experience– Document the review of the Hazard Assessment
• Program 1: – Eligibility requires no public receptor exposure– LEPC/emergency preparation includes site visit – Submit an executive summary
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Hazard Review / Process Hazard Analysis Amendments
• Hazard Review (HR) – Program 2: – HR revalidation can only occur once between full HRs
• Process Hazard Analysis (PHA) – Program 3: – No mention of a similar ruling as the HR with regards to
revalidation • PHA / HR Joint Requirements:
– Recommendation closure timing:• Coordinate a timetable with the AA• Two and a half years after performing the HR/PHA • Next planned turnaround – for items that require a turnaround
– Retain all PHA / Recommendation resolution documentation for the life of the process
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Amendments• Process Safety Information (PSI) – Program 3:
– Ensure PSI is maintained and kept up-to-date– In addition to reactivity data, document chemical compatibility data
during handling, use, and application• Operating Procedures – Program 3:
– Ensure SOPs reflect current practices, and update whenever inadequate/inaccurate
• Maintenance – Program 2:– Clarification that the maintenance program must be written– Owner must ensure that contractors are trained on task
• Mechanical Integrity (MI) – Program 3:– Added compressors and their drivers to equipment that must be
covered by the MI Program – Clarification that ancillary components (e.g., valves) are required to
be in the MI Program
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Program 3 Specific Amendments
• Contractors Updates: – Must document the evaluation of contractors
• Management of Change (MOC) Updates: – Clarified consideration is given for developing new
operating/maintenance procedures• Mechanical Integrity Procedure changes must be developed prior to start-up
• Pre-Startup Safety Review (PSSR) Updates:– Clarified that the PSSR is to be used as a verification check
(independent of the MOC)
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Emergency Response Applicability Amendments
• Toxic Chemical Facility Updates: – Ensure that the stationary source is included in the city or county
Hazardous Materials Area plans and/or is included in the business plan program
– Document that response actions have been coordinated with the local fire/HazMat departments
• Flammable Chemical Facility Updates: – Document that response actions have been coordinated with the
local fire/HazMat departments • Written procedures are in place to notify emergency
responders.
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Potential Impact on Your Programs and Tips for Managing
Your Efforts
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Status and What to Expect• CSB
– 28Jan15, 18:00-21:00 PST – Public Meeting (Richmond City Hall, California)
– Information: http://www.ci.richmond.ca.us/, https://www.federalregister.gov/articles/2015/01/16/2015-00765/sunshine-act-meeting#h-5
• IWG– Agency Meetings Continue– Additional Reports Not Planned
• U.S. EPA– RFI Comments to be Processed– Draft Regulations to be Generated
• Federal OSHA– RFI Comments to be Processed– Draft Regulations to be Generated
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Status and What to Expect
• Cal/OSHA PSM– Comments from 31Oct14 Draft 5189.1 to be Processed– Final Regulation Promulgation – Guess 1/2Q16– Initially 2 PSM Regulations– No Current Synchronization w/Federal Requirements or CalARP
• CalARP– 01Jan15 – Promulgation of Minor Update to CalARP– Additional Update Needed to Address New Regulatory Initiatives and
“Technically Synchronize” with 5189.1– Draft of Additional Update to be Issued After Comments from Draft 5189.1
Processed or by Spring 2015– Final Regulation Promulgation Likely After 5189.1– Planning 1 CalARP Regulation with Additional
Requirements for “High Hazard Facilities”– No Current Synchronization w/Federal Requirements
or Cal/OSHA PSM
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Overlap of Key 1992 CA SMS Programs
PSM RMPP
EP
OCA
PSIPHA
OP
TRN
MI
MOC
PSSRII
EPR
HWPCON
Minimal
Quantitative Assessments
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Overlap of Key Current CA SMS Programs
PSM CalARP/RMP
EP
HA
PSIPHA
OP
TRN
MI
MOC
PSSRII
EPR
HWPCON
Minimal
GD
CA
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Overlap of Key Near-term CA SMS Programs
CalARP/RMP 5189.1
EP
PSIPHA
OP
TRN
MI
MOC
PSSRII
EPR
HWPCONHA
GD
CA DMR
HCA
RCA
PSCA
HF
MOrgCSPA
PSM-MS
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Overlap of Key Medium-term CA SMS Programs
RMP 5189.1
EP
PSI PHA
OP
TRN
MI
MOC
PSSR
II
EPR
HWP
CON
HAGD
CA
DMRHCA
RCA
Undefined
HFMOrgC
SPA
PSM-MS
CalARP
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
What Should I be Doing Now?
• Closely Monitor Regulatory Changes• All California CalARP-Covered Facilities
– Adherence to New 01Jan15 CalARP Requirements– Awareness of CalPSM-R for Best Practices for “High Hazard
Facilities”• California CalARP-Covered and CalPSM-Covered Petroleum
Processing Facilities– Adherence to New 01Jan15 CalARP Requirements– Recommendation from a Key Regulator – Begin Applying “High-
Value/Priority” Elements of CalPSM-R Now – Once promulgated, “schedule will be tight,” and if substantial progress has been made, selective-”grandfathering” may be allowed. Tight schedules could result in a resource shortage.
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
What Should I be Doing Now?
• U.S. PSM/RMP-Covered Petroleum Processing Facilities– Awareness of CalPSM-R for Best Practices for “High Hazard
Facilities”– General Duty Clause
• Federal timeline for implementation is in years, not months; the same cannot be said regarding California
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Handling Evolving PHA Guidelines
• See HAZOP/LOPA Facilitation Series, Module 10 (www.RMPCorp.com/Webinars) for effective approaches to handling select CSB recommendations and suggested changes to PSM and CalARP requirements. Damage Mechanism Hazard Review (i.e., p/o Damage
Mechanism Review (DMR), 5189.1(k)) Effectiveness of Safeguards (i.e., p/o Safeguard Protection
Analysis (SPA), 5189.1(u)) PHA Action Item Completion Status PHA Revalidation Inherently Safer Design Assessment (i.e., p/o Hierarchy of
Hazard Control Analysis (HCA), 5189(l))
Risk Management Professionals
Risk Management ProfessionalsRMMMP
Risk Management ProfessionalsRMMMP
Jordan M. Schultz
Risk Management Professionals – 877-532-0806 ♦ www.RMPCorp.com
Questions?