Changes in the PSM/RMP Regulatory Framework – California ...9 II.C.4 Management of Organizational...

Risk Management Professionals

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




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?




Current Safety Management System (SMS) Program Elements

& Overlap




Evolution of SMS Guidelines & Regulations to Performance (Goal) – Based Standards

Onshore Process Safety (USA)

Offshore Safety Management Systems (USA)

Offshore Safety Management Systems (UK)




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




Overlap of Key Current CA SMS Programs

PSM CalARP/RMP

EP

HA

PSIPHA

OP

TRN

MI

MOC

PSSRII

EPR

HWPCON

Minimal

GD(RMP)




Overview of SMS Program Expansion/Modernization

Initiatives




EPA

CSB

OSHA

Key Modernization Activities

www.RMPCorp.com/SMS_Regulatory_Updates/

IRTF

OES

Cal/OSHA5189.1 & 5189



Risk Management ProfessionalsRMMMP Risk Management Professionals



SMS Regulatory Activities

EPA & OSHA

Chemical Safety Board & Whitehouse

California Agencies & Initiatives




Key Elements of Regulatory Expansion/Modernization Efforts




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




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




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)





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





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





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)





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”




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




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




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




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)




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.




Potential Impact on Your Programs and Tips for Managing

Your Efforts




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




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




Overlap of Key 1992 CA SMS Programs

PSM RMPP

EP

OCA

PSIPHA

OP

TRN

MI

MOC

PSSRII

EPR

HWPCON

Minimal

Quantitative Assessments




Overlap of Key Current CA SMS Programs

PSM CalARP/RMP

EP

HA

PSIPHA

OP

TRN

MI

MOC

PSSRII

EPR

HWPCON

Minimal

GD

CA




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




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




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.




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




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))




Jordan M. Schultz

[email protected]

Risk Management Professionals – 877-532-0806 ♦ www.RMPCorp.com

Questions?

Changes in the PSM/RMP Regulatory Framework – California ...9 II.C.4 Management of Organizational...

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